ECB is delighted by the splendid prospect of deflation

The great mystery is why the voting public of debtor states continue to put up with an arrangement that ensures years of mass unemployment

If Europe’s elites seem nonchalant about the deflation threat staring them in the face, it is because they do not share the Anglo-Saxon and Japanese orthodoxy that letting it happen is an unforgivable policy failure.

The handful of officials calling the shots at the European Central Bank and Germany’s finance ministry — with applause from Italy’s hard-money “Bocconi Boys” and Spain’s “Austrian School” ultras — do not think deflation would be traumatic even if it were to happen. Some rather like the idea.

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World’s biggest investor BlackRock says US rally nearing exhaustion

BlackRock has advised clients to be ready to pull out of global stock markets at any sign of serious trouble

BlackRock, the world’s biggest investor, has warned that central banks are poised to tighten monetary policy in the Anglo-Saxon countries and China, advising clients to be ready to pull out of global stock markets at any sign of serious trouble.

“2014 is the year to squeeze more juice out of risk assets. But investors should be ready to discard the fruit when it starts running dry,” said Ewen Cameron Watt, chief strategist for the BlackRock Investment Institute. Continue reading

Germany’s Rise … and Rise to Power!

Both the German public and the general public have been victim of a masterful public relations campaign, aided and abetted by an Anglo-Saxon mass media terribly ignorant of true history, which has convinced the world at large of two great lies—that Germany is now a model, peaceful democratic nation, and that it is simply not capable of raising a powerful military force to be a threat, yet again, to world peace.

Yet German power can no longer be hidden. Even certain German politicians are beginning to express concerns at the scope of the nation’s weapons industry. Continue reading

Merkel Backs Two-Speed Europe With Core Euro in Poke at Cameron

As has been discussed in previous posts, Europe is looking like it’s heading to a two tier system economically and politically. Top tier nations will be seperated into a collective of 10 or so while the remaining will reside within a periphery system, most likely for providing cheap labor. What’s also seems will happen is the creation of a two tier currency system to go along with the two tier economy. For example we could see a Euro A class and a Euro B class form of currency. Another future possibility is the return of the Deutschmark with the core nations formally adopting it while the periphery nations holding on to the Euro. It would likely be the best option with the least damage should Europe continue pushing for further integration. Meanwhile, resistance from Great Britain indicates not all are willing to subjugate themselves to Brussels/Germany. In fact, British Prime Minister Cameron suggests this is an opportunity for the unwilling to go back to the way they were before the EU formed: Sovereign nations.

German Chancellor Angela Merkel said that she supports a two-speed European Union, with a core group in the euro pressing ahead with deeper integration and the U.K. among the others relegated to Europe’s margins. Merkel’s comments, made as she prepares to host British Prime Minister David Cameron in Berlin today, underscore her differences with the U.K. leader, who is pressing for more aggressive action by euro countries to counter the financial crisis roiling the 17-nation currency zone. “Those in a monetary union will have to move closer together,” Merkel said in an interview with ARD television broadcast today. “We have to be open. We always have to make it possible for everyone” to join. “But we must not stop because one or the other don’t want to come along just yet.” … “We need more Europe, we need not only a monetary union, but we also need a so-called fiscal union, in other words more joint budget policy,” Merkel said. “And we need most of all a political union, that means we need to gradually give competencies to Europe and give Europe control.” Ceding more control to Brussels is anathema to many lawmakers in Cameron’s Conservative Party, more than a quarter of whom defied the government in October and voted in favor of a referendum on continuing British membership of the EU. Cameron said the following month that the euro crisis offered an opportunity for powers to “ebb back” from Europe to nation states. “We should look skeptically at grand plans and utopian visions,” Cameron said then. “We’ve a right to ask what the European Union should and shouldn’t do.” Merkel, in her television interview, said that EU leaders at a summit later this month will discuss a plan to transform the EU into a political union. Still, a breakthrough can’t be achieved at just one summit, she said. “The economic and political division between the Anglo- Saxon world and the ‘Germano-sphere’ is increasing,” Fredrik Erixon, head of the European Centre for International Political Economy in Brussels, said in a telephone interview.

Full article: Merkel Backs Two-Speed Europe With Core Euro in Poke at Cameron (Bloomberg)