Busting The Myth Of A ‘Green Europe’

https://oilprice.com/images/tinymce/ada3002-min.jpg

 

For much of the world, Europe seems like the poster child for responsible renewable energy policies. Unlike the U.S., which is embracing shale oil and natural gas, Europe has made little progress in developing alternative fossil fuel supplies. Part of that is due to geography, but part of it is surely due to the high level of concern for the environment as well.

While China and India continue to suffer from substantial pollution issues, Europe is for the most part a green-continent and one that is constantly pushing the envelope with environmental policies like its emissions trading system. At least that is the perception. Continue reading

Cuba Hoping To Kickstart Offshore Oil & Gas Industry

The Cuban oil company Cubapetroleo, or Cupet, is close to a deal with Angola’s state-run Sonangol to get Cuba’s deepwater energy exploration program up and running three years after work was suspended because of failure to find any oil or gas.

A Cupet official told the British energy news service Argus Media that the two companies expect to begin operations next year on two of four areas of the Gulf of Mexico off the Cuban coast based on an agreement between Cupet and Sonangol signed in 2010. Cuba’s program of deepwater exploration was suspended after several foreign companies’ drilling efforts proved fruitless. Continue reading

Europe Is Partying Like It’s 1939

The world is preparing for war, but not in Europe, where Daft Punk’s beat goes on.

Europe is different from when I first lived there in the late 1980s and early 1990s. It was not as superficially wealthy then, although this time I rarely wandered far from where the tourists congregate. On the outside, at least, you would hardly see the rot of debt and welfare-state mismanagement even in Italy and Spain. The people were well dressed. The cafés were expensive but still packed. The cars are fairly new and have shockingly little body damage, when you consider the insanity that overtakes Europeans when they slide behind a steering wheel.

But that’s on the surface. Once you get behind the walls and into interior of the homes, the old cramped shabbiness is still there. All their money goes to clothes, food, and drink, because there’s no room in European apartments for the stuff Americans pack into theirs.

Spending Their Money on Frivolity

Like a cheesy disaster movie foreshadowing the apocalypse during Act I, the TVs in the bars where the locals drink wine and gobble pricey tapas cover the looming Greek default 24/7. The coming collapse is background noise to a cacophony of people chattering into iPhones. The revolution is being televised, and no one’s watching.

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Was Greece Set Up To Fail?

Not only was Greece set up to burn and have an example made of it by Wolfgang Schäuble, according to former U.S. Treasury Secretary Timothy Geithner, the entire Euro was designed to fail. All roads are leading to Berlin and it’s Fourth Reich dominating the continent.

 

My ‘job’ here is by no means done, anyway. Because of the general strike today, another Solidarity Clinic that I wanted to donate some of your AE for Athens Fund money to, is closed (update on the Fund tomorrow). Parliament is debating the latest Troika strangle plan as we speak, and who knows what tomorrow will bring? An entire economy is being deliberately suffocated, and all in all it’s just total madness. Quiet madness, though (update: and then the riots broke out..).Two things I’ve been repeatedly asked to convey to you are that:

1) you can’t trust any Greek poll or media, because the media are so skewed to one side of the political spectrum, and that side is not SYRIZA (can you imagine any other country where almost all the media are against the government, tell outright lies, use any trick in and outside the book, and the government still gets massive public support?!),

and:

2) Athens is the safest city on the planet. I can fully attest to that. Not one single moment of even a hint of a threat, and that in a city that feels very much under siege (don’t underestimate that). And people should come here, and thereby support the country’s economy. Don’t go to Spain or France this year, go to Greece. Europe is trying to blow this country up; don’t allow them to. Continue reading

Proof That Merkel Is Europe’s Economic Bully

This is precisely why it’s oft said here that all roads in Europe lead to Berlin.

Germany is back with a Fourth Reich and has subjugated the entire European continent. If you’re looking for Nazis in Panzers, you’re roughly 70 years too late, as economic and political means were used. The leaders in Europe will continually push for integration and more integration until the United States of Europe dream is realized, even by economic and political force if necessary. Some nations will eventually leave while some, such as Greece, will stick around because they believe in the fantasy. There will be roughly ten in the end.

 

She’s the most dominant leader in the euro zone with virtual veto power over decisions

“The lesson of this crisis is more Europe, not less Europe,” Angela Merkel said in 2012 as the integrity of the region’s monetary union was threatened by financial instability, touched off by Greek debt, that was spreading through the euro zone’s weaker economies. By “more Europe,” the German chancellor meant a deepening of the continent’s noble mission—peaceful integration to ensure prosperity and democracy—of which the common currency, the euro, is the ultimate symbol.

In the intervening three years, Greeks have come to understand “more Europe” as something different: “more Germany.” That was one of the few clear messages sent in a referendum on July 5 that had everything to do with Greek voters’ views on how Merkel had imposed her vision of Europe on the zone and if their troubled nation would be better served as part of its grand project, or not.

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Germany refuses to let Greece off hook

The crisis in the eurozone was set to escalate on Monday night after the Germans said they could not write off Greek debts without offering financial assistance to Ireland, Spain and Portugal.

George Osborne, the Chancellor, on Monday urged Angela Merkel, the German chancellor, to consider backing down to ensure there was not a “disorderly exit” from the eurozone.

He said “the situation risks going from bad to worse” and warned that “Britain will be affected the longer the Greek crisis lasts and the worse it gets”.

He suggested Britain could fly planeloads of euro notes to Greece to assist stranded tourists.

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Greece ‘48 Hours Away From Unrest’

Please see the source link for the video.

 

Greek Prime Minister Alexis Tsipras probably has 48 hours to resolve a standoff with creditors before civil unrest breaks out and ATMs run out of cash, hedge fund Balyasny Asset Management said.

Fund managers are questioning how the International Monetary Fund and Europe’s leaders can seal a deal with Athens following the “no” vote in a Greek referendum on Sunday. Sixty-one percent of voters rejected austerity, increasing the likelihood of an exit from the euro area.

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Greek crisis: Who is the troika bailing out Greece?

What organisations are included?

The European Commission is an executive arm of the EU. It does the day-to-day work of implementing EU policies and spending EU funds. But it must still answer to the member states of the EU.

Germany is the EU’s largest economy and is perceived to have the final say on the Greek bailout.

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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

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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Greece Capitulates: Tsipras Crosses “Red Line”, Will Accept Bailout Extension

We’ve long said that negotiations between Greece and its creditors are more a matter of politics than they are a matter of economics or finance.

From the troika’s perspective, breaking Greece and forcing PM Alexis Tsipras to concede to pension cuts and a VAT hike is paramount, and not necessarily because anyone believes these measures will put the perpetually indebted periphery country on a sustainable fiscal path, but because of the message such concessions would send to Syriza sympathizers in Spain and Portugal. In short, the troika cannot set a precedent of allowing debtor nations to obtain austerity concessions by threatening to expose the euro as dissoluble. Continue reading

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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