Tag Archives: Euro

  • Insider
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    Rise a Pauper

    Wealth confiscation is the next stage of the game
    by Chris Martenson

    Tuesday, April 2, 2013, 12:46 AM


    Because of exceptionally poor decision making on the part of Cyprus leadership both before and during the recent crisis, Cyprus is now consigned to a very dark future of economic depression and failure.

    Whatever the jabbering from the Troika, a precedent has now been set.

    The one genie that cannot be placed back into its bottle is the notion that bank depositor accounts are now fair game.  The larger lesson here is that a wealth tax is now one of the solutions on the table for various government authorities across the EU, US, and other developed nations.

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  • Daily Digest
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    Daily Digest 3/26 – Eurozone Faces Tough Bank Regime, China’s Toxic Water

    by DailyDigest

    Tuesday, March 26, 2013, 3:47 AM

    • After Cyprus, eurozone faces tough bank regime – Eurogroup head
    • What all investors can learn from Cyprus
    • Russian Oligarchs to (Involuntarily) Fund Cyprus Bailout
    • The Broken Euro
    • Creating Renewable Energy Farms that Double as Wildlife Reserves
    • Why such a fuss about extinction?
    • China's Toxic Water

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  • Daily Digest
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    Daily Digest 3/20 – Workers Saving Too Little to Retire, Lawmakers Back PMs As Currency

    by saxplayer00o1

    Wednesday, March 20, 2013, 2:39 PM

    • Workers Saving Too Little to Retire
    • Bad debts at Italian banks top 126 bln euros in January
    • Spanish Lenders’ Bad-Loan Ratio Resumed Increase in January
    • Darling: Cyprus savings raid could trigger bank runs across Europe
    • France, Belgium told to count Dexia bailout in deficits
    • Lawmakers back gold, silver as currency
    • National student loan debt triples, Miami average fifth highest in Ohio
    • As crop prices surge, investment firms, farmers vie for land
    • Speed on green cameras paying off
    • Cyprus parliament rejects deposit levy: reports
    • PIMCO reduces exposure to euro in wake of ‘botched’ Cyprus bailout: report
    • National debt jumps $300 billion ytd

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  • Insider
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    Cyprus Bank Heist: A True Game-Changer

    Near-term risks include domino-like bank runs & capital cont
    by Chris Martenson

    Monday, March 18, 2013, 4:29 AM


    This weekend on 3/16/13, under pressure from IMF bankers and a push from German politicians, a Cyprus bailout deal was approved that would take the bulk of the bailout fund from the private bank accounts of Cyprus bank depositors.  Yes, you read that right; savers were determined to be the logical target to bail out the profligate.

    The reaction from depositors, predictably, was intensely negative.  They are furious and shocked.

    This is a complete game-changer.  It means that even money in the bank is not safe.  It implies that money in pension and money market accounts is not safe, either.  It means that rule of laws and contracts really don't matter.  Of course, MF Global taught us that.  It finally means that trust is no longer a part of the equation… 

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  • Daily Digest
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    Daily Digest 3/8 – Thailand Passes Canada’s Car Production, Europe’s Recession Deepens

    by DailyDigest

    Friday, March 8, 2013, 3:45 PM

    • The Chinese are so desperate about the new property taxes they are divorcing in droves to avoid them
    • CP Rail may cut as many as 6,000 jobs: Harrison
    • Silvio Berlusconi convicted, sentenced to year in prison over illegal wiretaps
    • Thailand passes Canada in car production
    • Madrid's Renaissance of Occupied Spaces
    • Europe's Recession Deepens
    • "The Entire West Is In The Yo-Yo Years"
    • Poverty rate is highest in 15 years, says professor
    • The Deluge
    • Beemster's Dancing Cows Greet Spring Greens With Unrestrained Joy
    • How to green the desert and reverse climate change
    • Antarctica: Engine of ocean life

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  • Blog
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    Europe Is Now Sinking Fast

    The good are being dragged down by the bad
    by Alasdair Macleod

    Tuesday, November 20, 2012, 7:09 AM


    With the Eurozone having being displaced from the financial headlines by the American presidential election, you might have briefly thought that its problems had gone away. They haven’t.

    It’s just that the public is expected to absorb one major story at a time. And now that the presidential election is done and dusted, Europe is rapidly returning to the headlines. This is not desired by the powers-that-be, who desperately need us to believe things will get better with a little patience.

    Behind the scenes, in order to prevent a systemic crisis, the authorities (through the European Central Bank) have been hard at work keeping a lid on interest rates for Spain and Italy, which act as everyone’s market bellweather. Their strategy focuses on the hope that high bond yields are just a lack of 'animal spirits' – and if only they can be reignited!

    Time is working against all countries in the Eurozone because the good are being dragged down by the bad…

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  • Insider
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    Europe’s Mexican Standoff

    All's fine until someone blinks
    by Alasdair Macleod

    Tuesday, November 20, 2012, 7:08 AM


    Executive Summary

    • Germany is unlikely to break solidarity with the rest of the Eurozone while Merkel remains in charge. But she may not last as long as she'd like.
    • France's economy is deteriorating at an alarming rate.
    • Most of France's "stability" to date is due to inflows of money fleeing Spain and Italy. That will stop soon – and then what?
    • The UK is suffering from many of the same ills as the U.S. However, its banks are too dependent on Eurozone debt for it to take drastic counter-measures, and so it is handcuffed to the future of the Continent.
    • All is well as long as no one defaults or no one leaves the Eurozone. With each player's position deteriorating, how long can the status quo last?

    If you have not yet read Europe Is Now Sinking Fast, available free to all readers, please click here to read it first.

    In previous articles, I have given Peak Prosperity's enrolled members the lowdown on the weak Eurozone governments and looked at the crisis from Germany’s point of view. With respect to Germany, all that can be added is that her political elite is still frozen in inaction and show no signs of snapping out of it. Mrs Merkel, particularly, is still pursuing the out-of-date Euroland ideal. It is as if she has decided that she has no alternative. Come what may, it will have to succeed in the end, and she is not going to be the one who calls “uncle.”

    I don’t know how these things work in Germany, but in the UK there comes a point where “the men in grey suits” metaphorically tap the leader on the shoulder and politely instruct him or her to resign. It happened to Mrs Thatcher, and unless she has a change of heart, it could happen to Mrs Merkel before next November’s German elections. And when that happens, the withdrawal of Germany from the euro can be expected to begin.

    In this article we will update the deteriorating situation in two other key players on Europe's chessboard: France and the United Kingdom. And we'll reveal why the current system is like a Mexican standoff: Everything is stable until someone makes a move. Then all hell breaks loose…

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  • Insider
    The Library of Congress | flickr Creative Commons

    Off the Cuff: Beggar Thy Neighbor

    What happens to world currencies when everyone prints money?
    by Adam Taggart

    Thursday, September 20, 2012, 11:17 PM


    In this week's Off the Cuff with Mish & Chris podcast, Mish and Chris discuss:

    • Asian saber-rattling
      • How serious is it?
    • From here to QE-ternity
      • And wither the dollar from here?
    • Leading indicators lose steam
      • The economy is slowing further.
    • Intervention in oil prices?
      • Recent trades look fishy.

    Where to start this week?


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  • Insider
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    Off the Cuff: The Plot Thickens

    Developments are happening faster now
    by Adam Taggart

    Thursday, September 13, 2012, 5:11 AM


    In this week's Off the Cuff with Mish & Chris podcast, Mish and Chris tackle

    • The German Constitutional Court decision
      • What importance does it have? Any?
    • America is back in recession
      • More hard-to-refute data
    • Whither the Fed?
      • Why markets will be disappointed by Bernanke

    Surprising to those who don't read this site, a number of notable announcements are happening this week besides Apple's unveiling of the iPhone 5…

    Today, the German Constitutional Court made its ruling on the legality of Mario Drahgi's plans to flood European banks with liquidity. The court has the power to block the ECB's profligacy; but it seems that once again, politics trumps justice. Draghi will be allowed to proceed with some tissue-thin restraints. 

    Meanwhile, new data show North America's economies are slowing down. Indeed, more and more analysts are coming to the conclusion that the US has slipped back into recession (even though to many it feels as if America had never left it). Jabbering of 'recovery' and slight declines in the official employment rate – which is a complete farce, as those unable to find work after a time are removed from the lists of those counted as 'unemployed' – are fooling no one at this point.

    Which leads all eyes to the Fed. What will it do (or better asked, what can it do) to combat this dismal data?

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