‘The EU will COLLAPSE’ Le Pen blasts Germany for using the euro as a ‘POLITICAL WEAPON’

For years already, Global Geopolitics has warned that Europe would swing to the right politically and socially. For years already, Global Geopolitics has warned about Germany’s Fourth Reich and how it dominates the European continent once again. We’re now see this come to fruition.

What’s next? In the short-term, a likely breakup of the EU and consolidation of those who toe the German line into a new power bloc, the United States of Europe.

 

Marine Le Pen has blasted Germany for championing the euro [GETTY]

 

MARINE Le Pen has called the euro a “political weapon” used by Germany – and that the moment France quits the bloc the shared currency will be the point of “collapse”.

The eurosceptic MEP has been outspoken in her criticism of the , claiming the currency has been used by Merkel as a way to manipulate other European nations and bring them to their knees for its own profit.

The Front National leader said: “The euro is a potent tool used by Germany to engage in permanent monetary dumping. Continue reading

IMF fears ‘cascade’ of woes as Fed crunch nears

The United States is poised to raise rates much more sharply than markets expect, risking a potential storm for global asset prices and a dollar shock for much of the developing world, the International Monetary Fund has warned.

The IMF fears a “cascade of disruptive adjustments” as the US Federal Reserve finally pulls the trigger for the first time in eight years, ending an era of cheap and abundant dollar liquidity for the international system.

Continue reading

Central banks fight ‘vultures’ in global currency war

A global war of currency depreciation has begun. Although the weapons are not killing anyone, the slow damage will be no less devastating than nuclear, chemical or biological warfare. In a worst-case scenario, there will be a substantial redistribution of the income and wealth of all nations and an even wider gap between the rich and poor.

The war has now spread to Denmark, Singapore, the EU, Switzerland, Japan and even South Korea and Taiwan. The weapons used include banknotes, central bank control of foreign exchange and interest rates, and vultures (hedge funds) in the financial markets defending and speculating on the currencies. Continue reading

The Swiss Franc Will Collapse

I have worked to keep this piece readable, and as brief as possible. My grave diagnosis demands the evidence and reasoning to support it. One cannot explain the collapse of this currency with the conventional view. “They will print money to infinity,” may be popular but it’s not accurate. The coming destruction has nothing to do with the quantity of money. It is a story of what happens when interest rates fall into a black hole.

Yields Have Fallen Beyond Zero

The Swiss yield curve looks like nothing so much as a sinking ship. All but the 20- and 30-year bonds are now below the water line.

Look at how much it’s submerged in just one week. The top line (yellow) is January 16, and the one below it was taken just a week later on January 23. It’s terrifying how fast the whole interest rate structure sank. Here is a graph of the 10-year bond since September. For comparison, the 10-year Treasury bond would not fit on this chart. The US bond currently pays 1.8%. Continue reading

Citi Warns “Central Banks’ Grip On The World Economy Is Waning”

While central banks’ grip on the economy seems to be waning, notes Citi’s Matt King, additional liquidity still seems as potent as ever when it comes to propping up global markets. The question in our minds revolves around whether central banks remain willing to keep pumping when the economic benefits are so questionable. Equally, though, valuations are already so elevated that we doubt they can afford to stop. One way or another, this feels like a recipe for increased volatility. Continue reading

The Currency Wars’ “Pearl Harbor”

Switzerland had just abandoned its peg of the Swiss Franc to the Euro. The result was mayhem with an immediate 30% drop in the value of the Euro against the Franc, and billions of dollars of trading losses by banks and investors around the world.Several foreign exchange brokers went bankrupt because their customers could not settle their losing trades. The Swiss operated in total secrecy.

Currency wars resemble real wars in the sense that they do not involve continuous fighting all the time. At certain times, there are intense battles, followed by lulls, followed by more intense battles. Continue reading

Switzerland could act on currency again, central banker says

ZURICH — The Swiss central bank is ready to intervene in the currency markets again to weaken the franc if necessary, the bank’s head said, just two days after the removal of a cap on the franc triggered a surge in the currency’s value. Continue reading

Bank Losses From Swiss Currency Surprise Seen Mounting

Among those taking a hit: Everest Capital, who lost its main fund.

 

The $400 million of cumulative losses that Citigroup Inc. (C), Deutsche Bank AG and Barclays Plc (BARC) are said to have suffered from the Swiss central bank’s decision to end the cap on the franc may be followed by others in coming days.

“The losses will be in the billions — they are still being tallied,” said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. “They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system.” Continue reading

France’s triumphant ‘Joan of Arc’ vows to bring back franc and destroy euro

Marine Le Pen is spoiling for a fight. The leader of France’s Front National vows to smash the existing order of Europe and force the break-up of monetary union, if she wins the next election.

It is no longer an implausible prospect. “We cannot be seduced,” she said, brimming with confidence after her party secured 46pc of the vote in a by-election earthquake a week ago. Her candidate trounced the ruling Socialists in their own bastion of Villeneuve-sur-Lot.

The euro ceases to exist the moment that France leaves, and that is our incredible strength. What are they going to do, send in tanks?” she told the Daily Telegraph at the Front National’s headquarters, an unmarked building tucked away in the Paris suburb of Nanterre. Her office is small and workaday, almost austere. Continue reading