ECB To Keep Greece On Hold Until Wednesday When Balyasny Sees Rioting Begin

As we have repeated since January, and certainly on numerous occasions over the weekend, at this point the only variable is what the ECB will do: will it give insolvent Greek banks more aid, or will it increase its ELA collateral haircut (or even withdraw it altogether), the ramifications of which action would have a dire impact on contagion within the rest of the periphery but most certainly on both the Greek financial system as well as Greek society which is now facing an indefinitely period of capital controls. Continue reading

Failed Dreams & Destroying Europe

The whole idea of a One World Government that began in Europe with the Treasty of Rome was based upon the idea inside Europe that a single government would end war. They never considered that there are two sides to that coin – international war and internal war we call revolution. As Thomas Jefferson said: “I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical.

The ECB’s policy of negative interest rates was supposed to create rising inflation by forcing people to spend. They cannot understand that raising taxes is the offset. You cannot spend what you do not have and you will NOT spend as long as you lack confidence in the future outcome. Draghai’s policy is a fool’s dream and the collapse in bond markets demonstrates those who think they can manipulate society are just out of their minds. Continue reading

“All the Eurozone Is Capable of Is ‘Stealing’ Growth from Others”

There were other signs of traction. The Eurozone trade surplus with the rest of the world has been setting new records, powered by strong exports, particularly from Germany. This trend kicked off before the euro started tanking a year ago.So on Monday, ECB President Mario Draghi took the opportunity to slap himself and his colleagues on the back for their heroic and bold action, as these things are called, and offered an upbeat assessment of the Eurozone economy. He proclaimed “that growth is gaining momentum.” And he totally nailed it with three out of the four reasons he gave for that growth:

This is due to in particular the fall in oil prices, the gradual firming of external demand, easy financing conditions driven by our accommodative monetary policy, and the depreciation of the euro. Continue reading