Armed Chinese Troops in the Middle of Texas?
pretty slick and well done
bank herpes, spreads like wildfire
These freaks make me want to punch holes in walls. They – Mynors and that dumb lady – are supposed to be speaking as experts yet they are clearly bankrupt of ideas and use sophistry to give an appearance that they understand. Alex Jones suggested this week that demanding bankers heads or issuing a maximum wage was somehow communist – really! These tossers justify the notion that re-education is is not such a bad idea, and perhaps going further too. The Yank is just as bad in terms of selling out his grandmother, the fact that only his head and shoulders are displayed on a plasma – suggesting a post beheaded status – excuses him … slightly. Grrrr.
Check this out, Bulgarian prime minister just suggested Bulgarian wage level for all EU-countries:
Bulgarian wage level is about 200-300 EUR/month, now we are talking about A-U-S-T-E-R-I-T-Y !
Run run run while you can!
I mean, if they are right I need to get some more canned food.
Shock and Awe-sterity.
@aaah: yeah that!
A declaration of war. If the contract system is not supported, we will be forced to do without it. Meaning other matters will decide transition of ownership and availability of supply.
‘credible way’ != throwing more money on the fire
So really how bad and broken is Europe?
The eurozone has a GDP of about €11 trillion. Its debt to GDP ratio is about 85%. This leaves a debt pile of €9.35 trillion. This includes all eurozone debts even Greece,Portugal,Spain, us everyone. Also when banks say they are re-capitalised all this means they have increased the capital retained to be held in reserve should any of its loans run into trouble. The big problem is the ratio of loans/capital that exists today is not nearly enough to supply the market with the demand for loans. This is why many business’s are stagnating. They have no access to their capital requirements.
Some countries like Greece, Italy, Spain and of course Ireland find this level of debt unsustainable. The question we have to ask is how much would be needed to achieve a debt level that is sustainable for those countries that are feeling the pressure.
Europe needs to send a clear and bold message to the markets, and a meaningful cut in the above ratio would be a clear signal. The question is by how much and by what methods we can achieve this. The Eurocratic’s solution would be to cut as little as possible and hope for the best. This is no longer good enough. The markets will see it as just another exercise at kicking the can down the road again. A good idea is to fix it to something tangible, something that has been previously agreed by everyone. Something like the levels agreed by the Mastrict treaty. The countries that signed up to this treaty agreed that the maximum level of debt to GDP should be no more than 60%. A quick calculation using this as a guide would give a new eurozone debt of €6.6 trillion. When subtracted from the current amount it leaves a difference of €2.75 trillion. This is the amount of debt that needs to be addressed. This is the real elephant in the room. Rember this figure €2.75 trillion.
Now the question arises how to ‘de leverage’ to 60%. The first problem is of course that in some countries its more than 60% and in some less than 60% so to get agreement of everyone will be nearly imposable. Tax payers in wealthier countries are understandably reluctant to provide more capital to what they see as indisciplined countries.
Clearly the only way that can achieve the most agreement is for the ECB to engage in quantitative easing. There is two ways to do this. The first is by physically printing the cash. The second, which would In my humble opinion be best, and which I have been posting to various message boards for the last 3 months, is that the ECB do this by directly injecting capital into European banks, or into European central banks, and they can distribute the funds to their own banks. There is no printing necessary as it all can be done electrically.
When this task is completed we will have a debt to GDP ratio of 60%. We also will have banks recapitalised by €2.75 trillion. This should easily save any banks with liquidity problems. It also will lead to the emerging of banks who now have the required funds to resume lending, and act like a bank should. True we will have an extra €2.75 trillion created and the Germans & Fins etc could freak out over risks of Inflation. But the advantage of this course of action is that the only way this money will enter the system and into consumers pockets is by the issuing of new loans and mortgages etc. The way the market for new loans has dried up not just in Ireland makes it imposable for businesses to be created and expanded, imposable for people to buy a home, and is one of the reasons why throughout Europe unemployment is so high. These revitalised banks will be capable of lending to business so they can create and increase employment .It would also provide funding for new and existing mortgages, which could restart the property market and create jobs which this labour intensive industry does very well.
I think it is a chance well worth taking. There are many more upsides than downsides in taking this path. Even if there is an increase in inflation the rise would be modest, and may I say welcome as it will help to inflate away the high level of remaining debt.
But most of all it would send a powerful message to the rest of the world that Europe has grown up and is more than capable of dealing with its own problems.
‘recapitalize banks’ == socialize even more debt
Exactly. Buy more dry goods because this will be the big one.
Recapitalize the Banks! How? Only way I know they can pull it off is by Inflation.
“political will to agree” not yet there? That means politicians will not agree across the EU because it would mean their heads would all be on pikes back home. So it means default and EU collapse will happen, and politicians heads will be on pikes anyway. So it is petrification and everybody looking over their shoulder, or at most yelling at each other and pointing fingers.
Is there a pool on when the EU collapses and takes the USA with it?
Race to the Bottom and the MSM reports it with a straight face.
this headline is almost funny: ‘we’ll have a global financial meltdown in 2 -3 weeks’
No – we’ve had one, fully blown, for 2-3 weeks, suppurating away for the last 2-3 months, stinking to high heaven for the past 2-3 years and it has been happening for 2-3 decades.
The politicians once again do what they do best – support the hot air balloon ride industry.
At the 11th hour and the 59th minute the political and financial fascists need a plan!!
Hey Serge you got a plan?
No Hubert I no ave a plan.
What about you Myron you got a plan? I thought the current plan was going extremely well.
What about you Maurice?
You know the plan where we stop making Billions from those maggots with their dumb placards down below . Look at those, cops, wonderful job they are doing.
Maynard: Busting heads is fun to watch, ha ha….look at that hippy bitch getting the peepper spray in her face, what a jolly wheeze. Yes, Cameroon would be proud.
Hmm, and to think those dumb cops on the payroll, dont know we have emptied their 30 year pension entitlements.
Oh Myron, shut the fuck up, my G &T is getting low and pass me another olive and tell Charles to fire up the jet, if the worst comes to the worst, we can join WW Bush in Paraguay. My ranch there is only half a million hectares, but I guess one will have to slum it.
Jasper throw a bundle of $50s out of the window to the plebs, let them play with confetti and load up the bullion on the Hercules.
How come nobody tells the cops that their pensions have been systematically looted by the entrusted banks? How about other municipal, county, and state pension funds being looted over the last thirty years? MSM needs to open their eyes and make known the act of deliberate pension looting what it is , a FELONY!
The ows need to make that info available on a broader scale too!
2 or 3 more weeks of crap before the banks start crying and begging for more bailouts.
Why not just give each of them their own damn printing press? Then the executives can give themselves another bonus for solving the latest problems (they created).
Two words that have changed the course of History:-
“Uncertainty” & “Certainty”
Scientifically these words have a small caveat, their real meaning is “unknown probability” and “known probabilty”. with the latter we can insure the ‘risk’.
At a predetermined level of ‘uncertainty’ it is the sworn duty of the military to intervene. with extreme prejudice only if that is absolutely required! A gentleman never uses bad languare except deliberately. and then only to warn!
I’m sure there is a plan in the drawer as we speak.
The meltdown is the cure.
@Harry and @Nak
All we need to do is to ask ourselves: Why is it necessary to recapitalise banks in the first place? Why are these jokers peddling this same idea over and over? I guess the answer is these jokers are trying to protect their own fat arses, and since this is apparently the only idea being peddled in the mainstream media it means these are the people (representing those other people) who “own” the media.
I just watched the latest Keiser report with Steve Keen, and Steve had a simple and effective point: Write off the massive debts and let the financial institutions bear the brunt of it, not the taxpayer! Capitalism is supposed to be an evolutionary system where the weak businesses or business models die and the strong ones survive by adapting to ever changing environment. Large banks are weak largely due to their own actions and they should be put down like rabid dogs. In the long run the only result of propping them up is like commiting finacial incest – their bad business practices are perpetuated resulting in ever more sick and deformed effects on the real economy and the rest of us.
This is not about recapitalizing banks. It is about destroying the middle class. About destroying the physical economies. And consequently about exterminating billions of people who will not have jobs, or money. People will not have shelter, or be able to obtain medical care, food, or water. Billions of people are going to die. The banks are just one visible weapon that is being used against the people.
Keep the focus. DESTROY THE INSANE OLIGARCHS!
Ever read the books “The Trap” and “The Response” by late Sir James Goldsmith? He may have been a bit of a shady character, yet he presented his case very well in those two books.
He described exactly what you wrote about during the mid 1990-ies and it is really too bad he died of cancer soon after, he may have had a few more things to say. I got hold of those books a few years ago and it was eerie reading that stuff and comparing it to the events post 2001 and onward – the movement of jobs from west to east, the disappearance of productive economy in the west, the financialisation of everything everywhere and as a consequence the subsequent movement of global financial markets in lockstep, and quite a few other things. But this whole shift of economic power from west to east was not some big plan. It was simply greed, fear, short sightedness, stupidity, lack of long term strategic thinking and complete separation from reality on the part of corporate managements. The corporations made all those moves for two reasons: first to make more money and later to stay competitive because everyone else moved. In the process they moved production facilities and later the know-how followed. So what have we got now for the masses? For vast majority of people it’s service economy. Pickin’ cotton in masa’s fields and flippin’ burgers in masa’s fast food shops.
My point is this: jobs and prosperity for the masses in the west were gone even before 2008 financial crisis, while the masses in the east toiled at slave wages to produce crap that western masses bought (and soon after discarded) by getting in debt.
And where are the bankers in all this? They happily financed the debt. Why? Because they wanted to make more money and to stay competitive because everyone else in their sector was making money. Greed, fear, stupidity, lack of strategic planning… the story repeats itself with one additional twist: complete corruption. They are in fact running the world by controlling the supply of credit money to the real economy and the rest of us.
So now what? Jacques Fresco said “This shit has got to go!” He also said they (the insane oligarchs) will not let it go willingly. They will use every tool at their disposal to stay in control. I believe he is right. Noone in the position of power wants to let go, it is human nature. And even if we, the people, bring out the guillotines and start chopping their heads, it will only be a temporary solution because in the end some other assholes will eventually become the oligarchs and the whole cycle will repeat itself. As an example, look at what hapened after the French revolution.
I believe that Jacques is right about human society and the system we live in at the moment. It is the system itself that is the enemy and it has to go. Until that time, I advocate just one thing: self sufficiency. Get things done by yourself and don’t wait for some obscure government to “create jobs”. They don’t know how to do that anyway. Get off the grid if you can, produce your own food if you can, filter your own water if you can, generate as much energy by yourself if you can, and for whatever-diety-you-believe-in’s sake, get to know your neighbours! If you live in the city I bet you don’t know most of them, if any! You can’t make it alone so it is essential to build a local community, build the trust and share/trade/barter the surplus with your fellow man. In the long run I think folks will start leaving the cities and return to the countryside.