Greek Contagion Spreads As Several Italian Bank Stocks Failed To Open

This is how fragile the entire EU system is. If Greece sneezes, Italy coughs. The EU at best might be able to handle a Grexit, although that doesn’t look likely as stated here many times before. Look for the markets to go through a lot of turmoil but Greece is here to stay, whether its within the EU or a newly formed United States of Europe currently underway. Almost all experts agree it’s too strategically important to lose to the Sino-Soviet axis.

 

While things have normalized since the open thanks entirely to the SNB’s aggressive EUR-buying, CHF-selling intervention (good to see that central banks have read the BIS’ report and have learned from their prior intervention mistakes), earlier this morning we got a snapshot of what happens if and when the SNB, and then the ECB itself, finally lose control when as a result of the Greek crisis the contagion promptly spread a few hundred kilometers west to Italy where as the WSJ reported, “several Italian banks failed to start trading on Monday as fears over a Greek debt default induced many investors to shed peripheral stocks, including Italian, with banks suffering the most.Continue reading

The next few days will transform Greece and Europe

As it turns out, the Greek crisis ends not with a bang, but with a referendum.

It has been easy to ignore the doings in Greece for the past few years, with the perpetual series of summits in Brussels that never seem to resolve anything. But it’s time to pay attention. These next few days are shaping up to become a transformational moment in the 60-year project of building a unified Europe. We just don’t yet know what sort of transformation it will be.

Whatever the exact phrasing of the question (and assuming the referendum goes forward as planned), it really boils down to this simple choice: Continue reading

The Vatican’s Hidden Jerusalem Agenda

From 2009 with huge relevancy to today’s times:

 

This magazine has been watching Joseph Ratzinger for a long time. As we have watched, we have followed his course from chief confidante of the late Pope John Paul ii, to his enthronement as pope, and then on throughout the past four years of his controversial papacy.

As we have watched this leading religious figure, we have monitored his involvement in a clandestine project of the Vatican that was documented in Bible prophecy almost 2,000 years ago and which remained a mystery until fully exposed within the last two decades. Now, in light of Benedict xvi’s visit to Israel in May, his first since being elected pope, it is crucial that the Vatican agenda for the city of Jerusalem be publicized.

Hushed About History

Back in the mid-1990s, a statement made by Pope John Paul ii during an interview in his native Poland, broadcast in Italian over a Polish radio station, was noted by one of our Italian associates. She sent us a transcript of the interview, which included one particularly startling reference by the pope regarding the Vatican’s ultimate goal of transferring its headquarters from Rome to Jerusalem.

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Forget Grexit, “Madame Frexit” Says France Is Next: French Presidential Frontrunner Wants Out Of “Failed” Euro

There has been some confusion why Germany and the Eurozone are so strict in negotiating with France and unwilling to concede even to the smallest of what they deem as outlandish Greek demands. The reason is not so much whether Spain or even Italy, both countries with soaring unemployment, a lost generation and a sweeping movement against “austerity”, follow with comparable demands should Europe concede to Tsipras, but France, where the frontrunner for the next president, the National Front’s Marine Le Pen, has just warned that not only is a Grexit inevitable, but that France would follow shortly.

Here it is worth reminding that one of the biggest European concerns with Greece is not so much its resolute attitude toward Greek demands which Europe can easily squash and force a regime change by cutting off ELA to Greek banks forcing a prompt and violent coup d’etat, but dealing with political parties who promise anything and everything just to be elected, in the process pushing aside Europe’s preferred technocrats who will do the bidding of Brussels without the smallest objection. Continue reading

Goldman’s “Conspiracy Theory” Stunner: A Greek Default Is Precisely What The ECB Wants

They all come close, but never precisely to the true endgame: The ECB is run by the Troika, which is run by Germany.

Almost every time you hear something about the Greek crisis, you’re going to hear either about the Troika (ECB/IMF/European Commission) and its components or Germany having its say in the situation. As with Cyprus, they want to create a vassal state out of Greece. We were told Cyprus was all about getting rid of corrupt Russian money laundering, etc. when it really wasn’t. What they had in mind was natural resources such as oil and gas within the area, plus a strategic military launching pad for the Middle East and Mediterranean region. Given that the Greek leadership doesn’t want to give up power, they will cave in and hand over more sovereign rights as well as the deposits of taxpayers.

When they’re finished with Greece they’ll move on to Italy, Spain and France who are facing a situation ten-fold worse. They will not stop until the entire European continent or whatever they can grab is under their control.

 

Last week, we showed a curious thesis by Goldman, which asked if there is a new and “ominous” development in European currency swings, namely the emergence of what may be a “under the table” fight between the ECB and the Bundesbank on which bonds to monetize.

This is what Goldman said then:

the average maturity of ECB bond buying is around 8.0 years, in line with what Executive Board member Coeure said in his May 18 speech. However, while Italy and Spain see purchases that have an average maturity above that of the outstanding debt stock, Bundesbank buying has fallen short from the very beginning…. This kind of signal – from the key hawk in the Eurosystem – has the potential to undercut the credibility of ECB QE, since it weakens the portfolio balance channel.

After all, it was supposed to be low yields in core Europe into risk assets. If those yields now rise and become more volatile, such portfolio effects will be lessened.

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Greek PM Alexis Tsipras pictured at G8 demonstration in 2001

Have you ever wondered why Tsipras is so close to Russia?

 

https://i2.wp.com/i.telegraph.co.uk/multimedia/archive/03350/tsipras-2_3350261b.jpg

 

Images of Greek prime minister Alexis Tsipras taking part in a demonstration at the G8 summit in Italy in 2001 have emerged.

Mr Tsipras was reportedly among a group of 1,000 Greek radicals who travelled to Italy with the aim of disrupting the G8 meeting in Genoa in 2001.

ISIS terrorists ‘sneak into Europe disguised as migrants’ – sparking fears of bomb attacks

HORDES of Islamic State members have reportedly sneaked into Europe along with desperate migrants – sparking fears of terror attacks on the continent.

ISIS fanatics have taken advantage of porous borders by travelling from North Africa to Italy on boats packed with refugees, according to terrorism experts.

Now it is feared that the notorious group, which controls much of Iraq and Syria, could target Europe within months.

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The Euro Does Not Have A Problem… It Is The Problem

Everyone says Germany is the main benefactor in all of this, but they continue to miss the bigger picture: All roads lead to Berlin as the Euro was designed to fail. It is devouring the continent and won’t stop at Greece. In no particular order, after Greece comes Italy, Spain and France. The German-dominated EU might be able to withstand a Greek collapse, but will not any one of the three mentioned or all combined.

 

Europe’s leaders must face the truth that the single currency now poses fundamental threat to global financial stability

There will be a temptation to gloat over the Greek crisis over the next week and a queue of people waiting to say “I told you so”. Both would be unwise.

In the six years from 2004, Greek output increased in nominal terms by 40 per cent, while government spending rose by 87 per cent and tax revenues rose by a mere 31 per cent.

The European authorities charged with overseeing the single currency should have acted then. Their failure to do so has been partly to blame for today’s crisis. Continue reading

Eurozone May Survive Grexit, But Italy, Spain Exposed to Increased Risk

The periphery scenario keeps coming back. On another note, this isn’t the first time warning trumpets have been sounded over Spain or Italy. You can find more information on them HERE and HERE. And while we’re at it, lets not forget about our friends in France, either.

Lastly, never forget the bigger picture: It was known the Euro would fail in the greatest heist of all time.

 

WASHINGTON (Sputnik) — The European Union and the international financial system can survive a Greek exit from the Eurozone, or Grexit, but a greater danger is that it could set off a domino’s effect forcing Spain and Italy to pull out as well, experts told Sputnik.

“As long as it’s just Greece, then I think the consequences for the United States will be very limited, and that’s because the US market already have factored in, that they’ve priced in a high probability of Greek exit,” Institute for Economic Affairs Deputy Editorial Director Richard Wellings in London said on Thursday.

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Goldman Asks, Is The Bundesbank “Ominously” Trying To Sabotage The ECB’s QE?

Goldman previously argued that the weak activity reading rattled a market that had been operating on a core thesis of strong US growth. The resulting uncertainty caused Bund yields and EUR/$ to rise, with the DAX also selling off on the day. Since then, something more ominous has come into play…

One clue has been the communications ping pong from the ECB. On May 18, Executive Board member Coeure said “the rapidity of the reversal in Bund yields is worrisome,” citing it as another example of “extreme volatility in global capital markets.”

ECB President Draghi sent the opposite message on Jun. 3, saying “one lesson is that we should get used to periods of higher volatility,” followed on Jun. 10 by Executive Board member Coeure stating that “the ECB does not intend to counter [Bund] volatility in the short term.”

Goldman took a dim view of all this in our last FX Views, even if a charitable interpretation is that President Draghi basically sent a dovish message on Jun.10 and simply didn’t want to signal “activism” in the face of short-term volatility. Continue reading

Italy threatens EU: ‘Sort out migrant mess you caused or get hurt’

Rome has warned of retaliatory measures unless the EU changes its asylum policies to make them more in “solidarity” with Italy, which continues to struggle with an enormous inflow of mostly North African migrants.

“If the European Council chooses solidarity, then good. If it doesn’t, we have a Plan B ready but that would be a wound inflicted on Europe,” Prime Minister Matteo Renzi said, without elaborating on the details. Continue reading

EU Commission Insists Member States Will Be Forced to Accept New Migrants

The European Commission (EC) will insist that a proposed system of relocating undocumented immigrants be mandatory for all EU member countries, EC spokeswoman for Migration Natasha Bertaud said Monday.

BRUSSELS (Sputnik) – In late May, the EC proposed to relocate some 40,000 asylum seekers from third world countries, who are currently residing in Italy and Greece, to other EU member states as part of its agenda to manage the crisis of undocumented immigration. Continue reading

Bond crash across the world as deflation trade goes horribly wrong

Markets ignored clear warnings in Europe and America that the money supply is catching fire, signalling a surge of inflation later this year

The global deflation trade is unwinding with a vengeance. Yields on 10-year Bunds blew through 1pc today, spearheading a violent repricing of credit across the world.

The scale is starting to match the ‘taper tantrum’ of mid-2013 when the US Federal Reserve issued its first gentle warning that quantitative easing would not last forever, and that the long-feared inflexion point was nearing in the international monetary cycle.

Paper losses over the last three months have reached $1.2 trillion. Yields have jumped by 175 basis points in Indonesia, 160 in South Africa, 150 in Turkey, 130 in Mexico, and 80 in Australia.

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What Europe’s Elections Were Really About

  • Europe’s impoverishment, resulting from its economic underperformance and unrestrained immigration, mostly from Islamic countries, has caused its voters to opt for national identity, nationalism, regionalism, and the chance to express themselves through a referendum on Europe. Austria’s Freedom Party warmed voters of the prospect of becoming “strangers in their own country.”
  • Thanks to this promise — a referendum on Britain’s membership in the European Union — and that Britain never adopted the euro as its currency, Britain’s Prime Minister David Cameron was the only sitting European leader not punished by the voters.
  • Everywhere in Europe, electorates have lost confidence in the bureaucrats of the European Union in Brussels and those of the European Central Bank in Frankfurt. They want once again to be empowered to decide their own political and economic fate.

Europe is in political turmoil. In ever larger numbers, European voters are turning their backs on the established parties and are flocking to populist or nationalist parties on both the right and the left. This shift is happening all over Europe. Last month, one could see it in Britain, Spain, Poland, Italy and Austria. What all the parties have in common is their dissatisfaction with the policies of the European Union, whether because of immigration, the EU’s austerity policies, or its social/ethical agenda. Continue reading

Greek exit would trigger eurozone collapse, says Alexis Tsipras

Greek prime minister warns of the ‘the beginning of the end of the eurozone’, but says a deal between Athens and creditors could be close

Alexis Tsipras warned on Tuesday that the failure to agree a rescue deal for Greece would spell the end of the eurozone as he submitted a revised package of reforms to negotiators in Brussels.

The Greek prime minister said if Greece fails, Europe’s leaders will have a bigger disaster on their hands because “it will be the beginning of the end of the eurozone”. Continue reading