German ‘bail-in’ plan for government bonds risks blowing up the euro

Quick reminder: “Bail-out” means the government bails the banks out, whereas “bail-in” means the citizens pick up the tab. Germany’s Fourth Reich is once again forcing its will upon the EU.

 

‘If I were a politician in Italy, I’d want my own currency as fast as possible: that is the only way to avoid going bankrupt,’ said German ‘Wise Man’

A new German plan to impose “haircuts” on holders of eurozone sovereign debt risks igniting an unstoppable European bond crisis and could force Italy and Spain to restore their own currencies, a top adviser to the German government has warned.

“It is the fastest way to break up the eurozone,” said Professor Peter Bofinger, one of the five “Wise Men” on the German Council of Economic Advisers.

Greek Deposits Become Eligible For Bail-In On January 1, 2016

The last few nails in the coffin are being driven in by the German-led Troika and soon Greece will be in 100% vassal state mode.

 

 

Earlier today, tucked away from the public’s eyes, there was another round of drama involving Greek securities this time focused on Greek senior bank bonds which promptly tumbled back to post-referendum/pre-bailout #3 levels.

The catalyst was Friday’s pronouncement by Jeroen Dijsselbloem who said depositors will be shielded from any losses resulting from the restructuring of the nation’s financial system, but that senior bondholders would certainly be impaired and probably wiped out. In other words, once again the super priority of various classes has been flipped on its head with general unsecured liabilities ending up senior to, well, senior bank claims.

ECB & Troika Retaliate Against Greek People

Some readers sent in comments that my use of the phrase “World War III by economic means using the pen” was harsh, so let me state this very clearly. Brussels and the Troika will NEVER back down. To them, the euro is irreversible and they refuse to see that their policies are dead wrong. Proof that this is the conquest of Europe with the pretense of good intentions to eliminate war: you cannot carry out such a noble goal by sheer force. Both Napoleon and Hitler could have said the same thing. Their conquest of Europe was to end war by creating once again the Roman Empire. As they say, the road to hell is paved with good intentions.

IMF Numbers Warn the Troika Has Destroyed the Greek Economy

The IMF on Thursday issued its own analysis on the Greek economy. The new debt forecast numbers have been raised in recent months and while the IMF analysis is never on point (way too optimistic), this tends to make the new number even more shocking. The entire idea of lending more and more money and raising taxes only reduces the economy, increases bad loans, and perpetuates inflation. All these policies ever do is promote bondholders at the expense of the population. This is why our Solution is so critical.

Monday’s EU Summit & Trioka’s Misguided View of Greece

The European Union is indeed on the ropes and their arrogance as lawyers cannot see the reality of economics. They view the world only through the power of their pen to write a law and DEMAND under threat of penalty we do as they command. This group of super–heroes lack the comprehension that people will not follow laws that make no sense or go against human nature.

These super–heroes command that everyone shall abide by austerity can only lead to the Grexit and the beginning of a period of unprecedented levels-destruction in Europe along with rising civil unrest across the continent. Anyone who has EVER worked on a foreign exchange desk knows far more about the market flows than they will ever think about with all their law degrees. Based upon the botched job they have mastered so far, the EU will descend into the final destruction phase. The idea that one government would end European wars is producing rising civil unrest and the very finger-pointing that creates war.

The ultimate consequences of this wrong policy from the outset to create a single currency without consolidating the debts of member states, has led to this crisis in the monetary system for the entire world. The consequences will certainly still be felt for many decades to come if not 112 years impacting generations of Europeans. However, the destruction unleashed in Europe will contribute to taking down the United States from its lofty perch and shift the entire new economic age to those nations who were once in the firm grip of Marxism.

They’re Coming to Take Away Your Cash

The stories are all over the Internet. Governments are forcing us into a cashless society. Supposedly the pretext is terrorism, and the real reason is to take more control. No doubt more power appeals to politicians, and banning cash seems like the next step after mandatory reporting of cash transactions. However, I think there is a more serious driver than simple power lust.

A more compelling case is that cash banning is the logical follow up to bail-ins. Most people think a bail-in is when banks steal your deposit. So it seems to make sense that governments want to force people to keep their cash in the bank. Then they are easy meat for the next bail-in.