EU agrees on a Euro defense package

[conraddobler]

http://finance.yahoo.com/news/EU-mi...tml?x=0&sec=topStories&pos=main&asset=&ccode=

This is straight out of Ben Bernanke's playbook.

I've seen numbers where the US stands to back about 17% of this total package because we're such a large part of the IMF's funding.

So congrats folks, more funny money is being printed with your name on it's back to save Europe.

The insanity continues.

It's only after these kinds of games reach the end of their roads that the true nature of the global financial fraud will emerge.

Everyone just keeps playing up the ante, and all the while power is consolidated, IMO the real story here is that Europe is now one entity financially and under control of a very few people for the first time since Napoleon.

I don't know where this entire frauds Waterloo is but it's out there.

 

[jefftheshark]

http://finance.yahoo.com/news/EU-mi...tml?x=0&sec=topStories&pos=main&asset=&ccode=

This is straight out of Ben Bernanke's playbook.

I've seen numbers where the US stands to back about 17% of this total package because we're such a large part of the IMF's funding.

So congrats folks, more funny money is being printed with your name on it's back to save Europe.

The insanity continues.

It's only after these kinds of games reach the end of their roads that the true nature of the global financial fraud will emerge.

Everyone just keeps playing up the ante, and all the while power is consolidated, IMO the real story here is that Europe is now one entity financially and under control of a very few people for the first time since Napoleon.

I don't know where this entire frauds Waterloo is but it's out there.

I sold all my short positions on Friday when the market was just slightly down, because I was fairly certain that something like would happen over the weekend (and then spent the rest of the day kicking myself in the butt for leaving so much on the table). I fully expect the market to be up tomorrow, however, and I'm going to probably be buying it back at a cheaper price.

At least that's the plan.

I know in the long run we're all dead anyway, but I guess if you can kick the can down the road long enough, then it's good to delay the inevitable as long as possible.

At some point this could/should lead to hyper-inflation, so PM's are looking better and better (especially if you're following the whole JPM/silver thing).

Good luck!

JTS

disclaimer: long ammo, silver & bulk food items

 

[conraddobler]

I sold all my short positions on Friday when the market was just slightly down, because I was fairly certain that something like would happen over the weekend (and then spent the rest of the day kicking myself in the butt for leaving so much on the table). I fully expect the market to be up tomorrow, however, and I'm going to probably be buying it back at a cheaper price.

At least that's the plan.

I know in the long run we're all dead anyway, but I guess if you can kick the can down the road long enough, then it's good to delay the inevitable as long as possible.

At some point this could/should lead to hyper-inflation, so PM's are looking better and better (especially if you're following the whole JPM/silver thing).

Good luck!

JTS

disclaimer: long ammo, silver & bulk food items

If you think about it, it's not enough money.

Which is why I'm taking part on this sale, my shorts are on sale, buy the dips... woooo whoooo...

BTW I don't know why anyone would buy gold here, silver it is.

Silver is also on sale, and has been.

 

[RugbyMuffin]

Everyone just keeps playing up the ante, and all the while power is consolidated, IMO the real story here is that Europe is now one entity financially and under control of a very few people for the first time since Napoleon.

Amazing huh ?

Without a shot being fired.

 

[82CardsGrad]

Wonder what this does to respective EU countries' Debt to GDP levels?? My gut tells me that the impact to individual countries might not be all too catastrophic since the package is spread over the entirety of the EU, as well as the IMF...

Still, as you say Conrad - the funny money continues to get printed... Incredible... And yet, here and abroab, small business and individuals continue to take it up the arse. Wow...

 

[jefftheshark]

If you think about it, it's not enough money.

Which is why I'm taking part on this sale, my shorts are on sale, buy the dips... woooo whoooo...

BTW I don't know why anyone would buy gold here, silver it is.

Silver is also on sale, and has been.

You must be registered for see images attach

Today is a short covering rally, but as we all found out last week, the market is a total scam right now. Trade at your own risk.

Bruce Krasting has a good article on ZH titled "It's One Of Three Doors" that falls fairly close to my thinking. Link

The 3 options are:

-The first is that the Euro bailout package has some legs and the results will last more than a few days. Should that be the case, the US 10 year will go toward 4% and the 30-year will move to 5%. This will not be without domestic consequences.


-The second is that that the market will see through the charade of debt that is again unfolding and by week’s end we will have retraced most of this morning’s moves. That is a scary outcome. There is no round two on this bailout. This is it. The global economy has made an “all in” bet.

-The markets all go “Goldilocks”. Stocks are steady to higher. Strong sovereign bonds are stable, weak sovereign bonds rally, CDS spreads for all forms of credit collapse, commodities stabilize and resume a modest advance and gold goes back to $1,050.

The scary thing is that the Euro is already appearing to be rolling over, which would mean that Option #2 is in play. Personally, however, I think Option #1 is more likely, with the markets churning around in a channel for awhile, and then a combo of rising mortgage rates and the actions of bond vigilantes starts the 2nd phase of the double dip in earnest.

Silver, on the other hand has been artificially manipulated by JP Morgan, who just had civil and criminal charges filed against them for this very thing. It should be selling for around $40 - $50 instead of the $18 and change it is today. But avoid paper silver like SLV, as they more than likely do not have the physical reserves to cover a "run".

JMO

JTS

 

[conraddobler]

You must be registered for see images attach

Today is a short covering rally, but as we all found out last week, the market is a total scam right now. Trade at your own risk.

Bruce Krasting has a good article on ZH titled "It's One Of Three Doors" that falls fairly close to my thinking. Link

The 3 options are:

-The first is that the Euro bailout package has some legs and the results will last more than a few days. Should that be the case, the US 10 year will go toward 4% and the 30-year will move to 5%. This will not be without domestic consequences.


-The second is that that the market will see through the charade of debt that is again unfolding and by week’s end we will have retraced most of this morning’s moves. That is a scary outcome. There is no round two on this bailout. This is it. The global economy has made an “all in” bet.

-The markets all go “Goldilocks”. Stocks are steady to higher. Strong sovereign bonds are stable, weak sovereign bonds rally, CDS spreads for all forms of credit collapse, commodities stabilize and resume a modest advance and gold goes back to $1,050.

The scary thing is that the Euro is already appearing to be rolling over, which would mean that Option #2 is in play. Personally, however, I think Option #1 is more likely, with the markets churning around in a channel for awhile, and then a combo of rising mortgage rates and the actions of bond vigilantes starts the 2nd phase of the double dip in earnest.

Silver, on the other hand has been artificially manipulated by JP Morgan, who just had civil and criminal charges filed against them for this very thing. It should be selling for around $40 - $50 instead of the $18 and change it is today. But avoid paper silver like SLV, as they more than likely do not have the physical reserves to cover a "run".

JMO

JTS

I have silver coins, a lot of them, the trashy without coin value type, few bags of them.

Last time silver was near 8 bucks I got like 10 bags of them, it's a lot of silver and it's hard to store.

I have a set of bars too.

But IMO if you want to do the running across a burning bridge thing, buy silver calls and don't chase the last dollar.

 

[conraddobler]

Wonder what this does to respective EU countries' Debt to GDP levels?? My gut tells me that the impact to individual countries might not be all too catastrophic since the package is spread over the entirety of the EU, as well as the IMF...

Still, as you say Conrad - the funny money continues to get printed... Incredible... And yet, here and abroab, small business and individuals continue to take it up the arse. Wow...

They only print enough to fill the holes so in effect it's not wild printing of money, it's meant to balance out the debt destruction, but IMO it ends up going to the least worthy amoung us.

It's a mess.

But big picture as of now they are not printing enough at all, it's not enough, this saves Europe from default but countries don't default anyhow, but it does nothing to save them from the austerity comming from a shrinking economy because they're in too much debt.

I think shortly this whole things catches back on fire, and there's nothing they can do when the fear comes back.

 

[82CardsGrad]

They only print enough to fill the holes so in effect it's not wild printing of money, it's meant to balance out the debt destruction, but IMO it ends up going to the least worthy amoung us.

It's a mess.

But big picture as of now they are not printing enough at all, it's not enough, this saves Europe from default but countries don't default anyhow, but it does nothing to save them from the austerity comming from a shrinking economy because they're in too much debt.

I think shortly this whole things catches back on fire, and there's nothing they can do when the fear comes back.

It's the austerity measures that will be the telling blows IMO... Just what will countries do? And how will people react??
Same applies here at home. Our Debt to GDP ratio is tracking at a pace equivalent to that of Greece. And really, if you take it to the state and local level, it's worse than Greece. So what will America, our states and local municipalities do in the way of "austerity" measures?? Well, we already know that increase taxation is on the way. But actual expense reduction?? We've seen it locally with cops, teachers and city workers being let go and/or pay reduced... but what about at a Federal level?? Not a chance...

 

[conraddobler]

It's the austerity measures that will be the telling blows IMO... Just what will countries do? And how will people react??
Same applies here at home. Our Debt to GDP ratio is tracking at a pace equivalent to that of Greece. And really, if you take it to the state and local level, it's worse than Greece. So what will America, our states and local municipalities do in the way of "austerity" measures?? Well, we already know that increase taxation is on the way. But actual expense reduction?? We've seen it locally with cops, teachers and city workers being let go and/or pay reduced... but what about at a Federal level?? Not a chance...

The plan IMO is to simply consolidate power under more and more centralization.

"The best laid plans of mice and men",

great quote.

I think it all officially blows up this fall when the people tell them to stick it up their ass.

"You can fool some of the people all of the time, and all of the people some of the time but you can't fool all the people all the time"

.

Another good quote.

I got news for people, they will never stop until stopped, until the people realize how they're the loser in this, all the time, every time, nothing will change.

 

[conraddobler]

Now back to the topic at hand instead of political grumbling.

This entire move seems weirdly false, ie, it's very weird that it gapped up and stopped.

It's almost as if the PPT sent shock and awe into the market and everyone yawned.

Very weird market, no follow through.

However I would hesitate to make too much of that, as it could be any kind of trap, usually you have to wait for the euphoria to wear off, and I've come to my currently bearish thesis simply because of the host of moves made by the FED and the government that timed the removal of all the stimulus at once.

Stimulating Europe dosen't help us much either, in fact it goofs our treasury funding to an extent.

This is nearing the end of the middle innings on this, I'd say we're in the 7th inning now of this long and brutal game.

Next comes some major weirdness IMO.

 

[Russ Smith]

Now back to the topic at hand instead of political grumbling.

This entire move seems weirdly false, ie, it's very weird that it gapped up and stopped.

It's almost as if the PPT sent shock and awe into the market and everyone yawned.

Very weird market, no follow through.

However I would hesitate to make too much of that, as it could be any kind of trap, usually you have to wait for the euphoria to wear off, and I've come to my currently bearish thesis simply because of the host of moves made by the FED and the government that timed the removal of all the stimulus at once.

Stimulating Europe dosen't help us much either, in fact it goofs our treasury funding to an extent.

This is nearing the end of the middle innings on this, I'd say we're in the 7th inning now of this long and brutal game.

Next comes some major weirdness IMO.

Yeah today is nuts it literally opened up like 400, I mean I looked about 6:35 and that was the quote, my individual stocks didn't even have a quote listed yet but the DOW was up 400. It never really moved except down to about 330 where it is now. Gapped up just after the open and then has basically flatlined since then, there is no follow through, or plunge.

 

[jefftheshark]

The plan IMO is to simply consolidate power under more and more centralization.

great quote.

I think it all officially blows up this fall when the people tell them to stick it up their ass.

.

Another good quote.

I got news for people, they will never stop until stopped, until the people realize how they're the loser in this, all the time, every time, nothing will change.

Both Great Britain & Germany's voters have told their respective governments to stick it, and yet this weekend's bailout is announced anyway. Just like the US voters who called their representatives in droves to protest our bailouts also fell upon deaf ears.

The reason behind this is clear: Our elected government is no longer calling the shots.

When Goldman can announce that they made a profit each and every day last quarter (which is statistically impossible unless the game is fixed), then it is quite apparent that they no longer need to even pretend that they are not running the show.

JTS

 

[conraddobler]

Both Great Britain & Germany's voters have told their respective governments to stick it, and yet this weekend's bailout is announced anyway. Just like the US voters who called their representatives in droves to protest our bailouts also fell upon deaf ears.

The reason behind this is clear: Our elected government is no longer calling the shots.

When Goldman can announce that they made a profit each and every day last quarter (which is statistically impossible unless the game is fixed), then it is quite apparent that they no longer need to even pretend that they are not running the show.

JTS

This is going to get political again but I can't help it.

The whole plan is to buy enough of our neighbors off with cushy government jobs that they help keep the rest of us inline.

No one who rely's on the government for their livelyhood is going to bite the hand that feeds them in great numbers.

This is the Mugabe doctrine, pay the army first, and in our case it's pay the army and the civil servants first, to keep the rest of the slaves inline.

The clear implication is that such a system will tend violently towards a totalitarian system because it's inherently unstable as an economic system in itself, ie it's not going to create real growth only fake printing growth.

Thus the destruction of all the middle class and small businesses, which fits with Obama stiffing the chamber of commerce.

You'll also see some token benefits for small business just as a token but long term the plan is IMO to destroy all small businesses and later once it's only big business and the government then the government will turn on big business too.

In the end it means total government, if you don't play by their rules, you don't eat or you are jailed.

That's the plan IMO and only the will of the people stands against this ultimate outcome, that and some murphy's law stuff.

It can't be more clear IMO, the playbook is obvious but again I've heard a good deal of explanations on how this may not work out like they plan.

We'll see I guess.

 

[AzCards21]

Interesting side note to all this, by interesting I mean WTF.

The IMF bails out Greece for 1 trillion of which the US pays 17%. Suddenly the CDS's take off betting against Greece. Who could possibly be so dang stupid to be the guarantor on the default swaps? Well non other than AIG. No that's not some new company in the Sudan desperate to make a name, it's the very same AIG we just bailed out to the tune of billions when they were on the hook for the housing down turn. Now betting that Greece is going to actually make good on their debt.

This kind of stupidity has got to be on purpose.

 

[conraddobler]

The Euro is getting blasted here, it's not only behind the woodshed, it's soon going to be under the woodshed.

Wow!

It somewhat makes sense to devalue, it's the new kind of trade war, ruin your currency so your peasants get the tap on the shoulder to make stuff for the world.

This isn't really bullish for our equities btw.