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Posts by "catnip"
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Posts by Anonymous "catnip":
Greece could indeed then start the printing press and monetize itself out of default but the difference
between ECB fund rate and a possible Greek Drachma rate (0) is already too small. So European
Eurozone banks would be sitting on EUR 178 billion of worthless Greece debts.
The only way of solving the crisis is to outsource labor to Greece Portugal at first in order to raise the GDP and make debt payoff feasible. But they cannot because of political targets.
So the EU got trapped in their own trap and that is STUPIDITY and INCOMPETENCE.
One frequently cited example is Portugal's attempt to set up a LNG spot market for Europe. A good idea
Portugal would import LNG set up a spot market like Henry Hub and sell natural gas to all of western
Europe. Guess who turned that down? Germany. What happened? german chancellor turned up in Paris
in the company of Putin and his best mates, some Oligarchs, and Medvedev, then CEO of Gazprom.
And wow France said sorry Portugal France doesn't want a gas pipeline from Portugal/Spain to the north. End of story. Hitler went east with war tanks and his successors also complete idiots go east with what they think is politics and clever diplomacy.
so to speak qe it will be forced openly quantitative easing one way or the other. The Greece problem as a legal/constitutional problem is much deeper. ECB opted to accept Gr bonds as securities because its about EUR 178 billion Gr bonds at european banks which ECB accepted as securites thus that banks can lend from ECB. That is already qe. But legally ECB cannot accept BBB as security so either it must bailout Greece if it defaults or the banks. Should FED hike that would cause a big leverage on EUR/USD.
However the question remains whether FED governors' musing on fund rate is just that musing to keep
USDx in good shape and to sell another USD trillions UST this year.
EU/IMF confrence in Athens on April 19th ( next Monday). I think however it won't last long as no action will follow. The fundamentals are, UK elections aside, positive for GBP and negative for EUR and this won't change unless EU really acts and quits talking. Will most likely enter EUR/USD long ( was short until today) .
April 15 (Bloomberg) -- Greek Prime Minister George Papandreou moved a step closer to triggering a $61 billion rescue package, asking the European Commission and the International Monetary Fund for a meeting in Athens next week.
The governments request came after the yield on 10-year government bonds surged to 7.319 percent earlier today, higher than the level before the European Union said April 11 it was prepared to join with the IMF to fund a rescue. The IMF, EU and the European Central Bank begin meeting their Greek counterparts on April 19.
Greece needs to raise 11.6 billion euros ($15.7 billion) by the end of May, and Papandreou has called current interest rates unsustainable. The bid to resolve the Greek crisis came as ECB Executive Board member Juergen Stark said the global economy may be entering a new sovereign debt crisis.
I guess those EU eggheads will eventually get it they cannot fool and cannot play hide and seek so one can go long on EUR but only as long as Greece doesn't ask hey can you spare a dime. Then an incredibly extended bureaucracy machine will start and the first 101 days it will be busy with itself.
Greece defaults and no one in Eu takes notice. Too busy...
But I wonder ... what manufacturing is up? Construction is down, Engineering services is down, energy equipment fueled with subsidies ... what is up? Purple pills pharma? Admittedly I have little knowledge of what manufacturing is comprised but my guess is it has something to do with production of some goods of trade that someone else is eager to buy. Is Windows 7 manufactured?
When they claim the debt crisis is only the fault of speculators... what level is that? Below the bottom?
are just clowns...
ROFL
April 15 (Bloomberg) -- Greece bonds show the nation may have to tap a 45 billion-euro ($61 billion) international bailout to convince investors it can avoid a default.
The governments two-year notes fell for a second day yesterday and the cost of insuring against default approached the record high of April 8, three days before euro-region finance ministers announced the aid package. The parliaments of Germany, France and Ireland will have to vote on whether to contribute their share of the loans, government spokesmen said yesterday. Dutch lawmakers will discuss Greek aid today.
There are concerns that the money will not be available, said Toby Nangle, who helps oversee 46 billion euros as director of asset-allocation research at Baring Investment Services Ltd. in London. There are people who are willing to place their own money at risk in anticipation of this thing not going through.