Tag Archives: IMF

Greece’s Tsipras tries another head-fake, EU finmins say .. nope

Alexander TsiprasThe last few hours of financial news coverage has been a frenzied love fest over Greek Prime Minister’s supposed capitulation to all EU bailout requirements – except, he didn’t.

Yesterday, Greece defaulted on 1.6billion euros in debt payments owed to the International Monetary Fund (IMF) and has been stubbornly refusing the demands of European Central Bankers and European Union ministers to structurally reform its economy.

It’s being reported that Tsipras sent a letter to EU ministers giving in to all their demands with just a few “minor” amendments.

Prime Minister Alexis Tsipras wrote to European leaders and the International Monetary Fund late Tuesday, accepting most of the conditions they had attached to releasing more cash, a European official told CNNMoney.

Accepting “most of the conditions” isn’t the same as being “prepared to accept all bailout conditions” as the Telegraph  and Financial Times used in headlines this morning.

Tsipras faces considerable difficulty in his own country as the games of kick-the-can down  the road, truth or dare, poker and “Let’s Make a Deal” but without numbers on the doors all fail to convince European and IMF leaders that Greece is serious.

Every move Tsipras has made has been to delay and reduce any re-payments to the IMF and ECB. Not because he doesn’t want to pay them back, but because Greece has no functioning economy and, without structural reforms, will never be able to pay the loans back.

The changes Greece requested are hundreds of millions of Euros apart from the requirements the creditors placed upon them. German Financial Minister Wolfgang Schäuble expressed disdain saying that Greece’s changes “aren’t basis for serious measures”.

This week, Tsipras announced a referendum to allow each and every Greek citizen to vote on whether to accept the bailout conditions from the EU/IMF.

A “no” vote basically ends all discussions with the EU, ECB and IMF and Greece is on its own. Grexit, or the exit of Greece from the EU, is a foregone conclusion.

A “yes” vote means Tsipras gives in to 100% of the conditions of the bailout, implements the required austerity measures and gets billions to fund his broken financial system. It also signals a lack of confidence in his strategy, tactics and ability to lead the government.

A referendum is the purest form of democracy – the people directly voting on policy. But, pure democracy has a problem: mob rule. Mob-rule means that emotions and hysteria take the place of sound leadership. It is the reason that America was founded as a representative Republic, not a democracy. Tsipras may be about to discover that failing at his own hand.

Polls are increasingly turning against the anti-austerity government. As Greeks get a taste of Tsipras brand of economic justice, they are finding out that it doesn’t sound anything like he promised. Empty ATMs, pensioners not getting paid, goods becoming unavailable, vendors only accepting cash and soon – economic collapse.

Greek’s prime minister is simply trying to instill enough faith in his government to survive the referendum he demanded. He needs a “no” to claim victory – although for only a short time.

In a comment to parliament this morning, Tsipras tried to convince the nation that he’s not capitulating. “It is true that we are seeking an honest compromise with our lenders but don’t expect an unconditional agreement from us.”

European leaders have already notified Greece’s prime minister that if he wants to restart the conversation, he needs to cancel this Sunday’s referendum. Otherwise, they’ll have to wait for the result to see where the purely democratic vote takes the small nation.

Shock! IMF cuts global economic forecast.. for third time this year

chart-imf-620xaTuesday, the IMF updated it’s World Economic Outlook downgrading three-out-of-four of the world’s most powerful economies.

While the Eurozone was given an outlook putting them more into reverse, the U.S. and China are now expected to grow even more slowly than the previous projections. Only Japan was given an improved outlook.

News reports have spun the three consecutive downgrades as showing the global economy “in nuetral”, but declining expectations and now U.S. small business sentiment dropping in June paints a much more bleak picture – the recovery that has been heralded seems not to be materializing.

There are approximately 9 million fewer jobs in the U.S. economy than when the recession started. With only 47% of adults holding full-time jobs, things are not likely to improve soon as government programs pull more money out of the economy through fees and taxation and leave less capital for growth and investment.

The latest Bureau of Labor statistics report echoes the IMF’s report. The report showed that job growth was mainly in part-time jobs and that a large portion of the American workforce remains unemployed which gives no reason to doubt the recent IMF downgrade.

Emerging markets took a hit as well. Brazil had it’s growth prediction dropped from 3% to 2.5%.

Europe Won’t Work in America

Spain’s economy is under such duress that the country is prepared to request a 40 billion Euro cash injection from the Euro zone this weekend. The request comes after Fitch Ratings reduced Spain’s credit by three notches on Thursday. This move will make Spain the fourth country to need a bailout since the European debt crisis began. The Spanish banking sector’s weakness and contagion from Greece’s debt crisis have put Spain’s economy in such a precarious position that the International Monetary Fund reported a need for 90 billion Euros to entirely cleanse Spain’s banking sector.

Much has been said about the problems of Greece and how those problems will impact the Eurozone. However, the size of Spain’s economy is over four times that of Greece’s. Spain’s 11.5% share of the Euro zone’s GDP has a far greater impact on European finances than does Greece’s 2.5%.

What the world is witnessing is the collapse of the European socialist economic model; the failure of government dependency. As more people become dependent on government, fewer people are left to pay the cost.

But it goes beyond simply spending other people’s money. The socialist entitlement mentality makes people less productive. As more and more people become less and less productive, an ever-smaller minority of productive people become responsible for shouldering the burdens of a completely lopsided, unfair system. When a tiny number of productive people are required to deprive themselves of the fruits of their own labor in order to finance the lives of the remaining population, where is the incentive for them to produce?

If that is not enough, reliance on a big government nanny state makes people less responsible for themselves, less self-reliant. That is the antithesis of the American way of life.

When European settlers colonized the New World, they left the security of Europe behind in favor of North America’s unknown wilderness. They left homes, family, friends and country behind in exchange for an opportunity to build better lives for themselves. They were freed from the constraints of Europe’s restrictive class system. They openly rejected the European way by leaving.

When the British Monarchy deemed to re-impose that system on Britain’s thirteen North American Colonies, that attempt was adamantly and thoroughly rejected. Hence the Declaration of Independence, the American Revolution and the founding of the United States of America.

When America’s pioneers ventured west to traverse the Great Plains and cross the Rocky Mountains they were completely self reliant. They took care of themselves. They didn’t have, want, or need a big nanny state government to take care of them from cradle to grave.

This is the stuff of which America is made.

Because it gives them control over “the masses”, “progressives” have long sought to fashion America after the European socialist model, to make Americans more government dependent. There was FDR with the New Deal and Social Security. LBJ gave America the Great Society, Welfare Programs and Medicare. Now obama forces upon an unwilling America the crown jewel of European style socialism; government controlled medicine.

Every time obama holds a press conference he sounds exactly the way he has always sounded: he inherited the worst economic crisis since the Great Depression. his policies are working, but need more time. Congress needs to quit stalling and enact more of his policies. The private sector is doing fine but to grow the economy government needs to spend more money to create more government jobs at the state and local level.

Coming as it does on the heels of the Wisconsin recall election, where such policies were rejected, this shows precisely how out of touch obama is with the private sector, how the economy works, American history and the nature of America’s people…and with reality.

Europe won’t work in America. Neither will an out of touch narcissist who insists on imposing a long rejected European system upon America.

obama, you are fired.

http://mjfellright.wordpress.com/2012/06/08/europe-wont-work-in-america/

CEO of German Deutsche Bank Targeted with Package Bomb

 

Merkel and Sarkozy, Plotting the protectionism of Germany and France while the rest of Europe is bankrupt

A package addressed to Deutsche Bank CEO Josef Ackermann  was intercepted in Frankfurt, Germany on Wednesday that contained explosives and shrapnel, with a return address of the European Central banks headquarters, which is located just a few blocks away from Deutsche banks HQ.   Fox News  is reporting that the NYPD is warning local banks to bolster mailroom security and that the NYPD’s deputy commissioner, Paul Browne had stated that several police officers were being sent around to Deutsche bank locations throughout the city to exercise “an abundance of caution.”

So-called [and unnamed] U.S. officials are now coming out of the woodwork with several possible explanations of just who could be behind this bomb plot. This comes on the heels of announcing that there are no strong leads in the case, so any theories are mainly conjecture at this point. First they are pointing at Al Qaeda in the Arabian peninsula, mainly because they were behind last years cargo printer bombs.  While the method of operation was similar there, the attempted Deutsche bank bombing appears to be directly pointed at one single person- CEO Josef Ackermann. So far it is an isolated incident whereas the cargo printer bomb plot involved multiple targets.

Another scenario being tossed around by officials is the recent Iran threat against U. S. troops stationed around Germany. Whoever came up with this theory appears to lack common sense and any hint of “intelligence,” as is shown by the fact that the bomb targeted the CEO of Deutsche bank, not a military base, or any place U. S. troops in Germany would frequent, such as a nightclub.

One only has to look into the European debt crisis, riot- protests, and the toppling of several leaders of EU countries recently to see that this bomb plot probably was meant to send a strong warning message against certain elements in the EU plutocracy that have been manipulating the bailouts/ non-bailouts of the smaller EU countries and their part in creating the major debt-crisis. Right smack dab in the middle of all of this EU, IMF, and European Central bank financial maneuvering has been Angela Merkel and Deutsche bank. From the Fox news article linked above, we see the following very interesting tidbit :

Ackermann, along with other Deutsche Bank executives, are being investigated over alleged false testimony they gave during a major civil lawsuit in Germany, which raises additional questions about the origins of the package. Reuters reported that Ackermann is one of the few executives in Germany always surrounded by bodyguards.

ECB

And then we have the “Occupy Frankfurt” movement pitching their tents across the street from the ECB, which by the way, who’s return address was on the mail bomb package.  The MO here could fit some of the Occupy patterns, as in the fact that officials are saying the bomb was not sophisticated, and the devious idea of putting the return address of the ECB on the bomb package certainly would fit the same pattern of Occupy slogans and some of the  cutesy rhetoric we have seen on the Occupiers signs recently.  There is also a heavy presence of Anarchists at these Occupy camps, and they have a history of bombings and attempted mayhem very similar to this attempt.

In summary, this appears to be a domestic (as in EU) issue, as opposed to a foreign terrorist plot. One thing we can be sure on, is that whoever is behind this plot will be dismissed as a raving lunatic in order to cover up any of  the EU plutocracy’s transgressions that this person/group is trying to take action against. The EU is drowning in debt and several countries are bankrupt. Meanwhile Angela Merkel’s Germany sits right in the middle of the Eu and currently enjoys relatively low unemployment and prosperity while the rest of the EU is forced to undertake severe austerity measures which have people rioting. Germany’s  Deutsche bank CEO was just made the target of a bomb plot.  This could be a single isolated incident to send a stiff message to the elitist bankers and plutocrats of the EU, or it could be the start of real chaos in Europe. You can bet another big player in all of this is under heavy protection today also, as in Mr Nicholas Sarkozy the current President of France.  Merkel and Sarkozy, as pictured above are really bombarding the press with supposed plans to deal with the very EU debt-crisis that they themselves  have created,   as seen here.

Only time will tell as to whether these theories that are expressed here, compiled by looking at the complete picture of just what is happening in Europe today are true.  One thing we can be darn sure of, is that this bombing attempt is not the work of foreign terrorists, simply because all they have to do is sit back and watch the EU implode all on it’s own, thanks to the likes of Merkel, Sarkozy and the globalists behind them.

CNN Update 7 am- The Bomb was real.

 

 

 

 

Fed's Bernanke Props Up EU With Loan-sharking Scheme

U.S. Federal Reserve Chairman Ben Bernanke has reached out to Europe in what is being mischaracterized across America as just another European bailout. Bernanke realizes the U.S. Congress would never allow the Federal Reserve to put the U.S. Economy at further risk by directly bailing out the European Socialists, in which we are already exposed to the tune of owning 20% of the IMF debt-fund, which is basically bankrupt. The EU announced that they would be increasing the cash flow to prevent several countries from going insolvent a short while back, in hinting that China and Japan would agree to buy up more European debt. The only problem there,  is that China refused to buy into that scheme without seeing solid austerity measures put into place, which the EU refused, or was incapable of doing.  Simply put,  Europe was a very bad credit risk, and China turned them down which was very embarrassing to the EU grand banking manipulators, who had already announced more cash was on the way.  

Understanding Bernanke’s Loan-Sharking Scheme

Bernanke then decided to play the role of loan-shark king, in lowering interest rates for dollar swap lines to the ECB (European Central Bank) along with cooperation from four other major central banks (Canada, England, Japan, and Switzerland). Bernanke is attaching the European debt crisis exposure to the banking systems of the other 4 country’s mentioned above in a move to cloud the fact that he is lending more money ( and collecting lower interest rates) to the European Socialists Union, which should actually have been declared bankrupt over a year ago. Does anyone believe for one minute that Canada, Japan, Switzerland, and England are going to put their economies at risk by buying into the debt-disaster of the EU, the IMF, the ECB and the EFSF? Of course not. The EFSF, or the European Financial Stability Fund ( boy is that an oxymoron if ever there was one) has yet to explain just what their role will play in all of this.

Yet globalists paint this scheme in a rosy hue by declaring that the European Central Bank, which has been reluctant to intervene to stop the growing crisis on its own continent, was joined in the decision by the Federal Reserve, the Bank of England and the central banks of Canada, Japan and Switzerland. Central banks will make it cheaper for commercial banks in their countries to borrow dollars, the dominant currency of trade. Just what effects will this have on the value of the U.S. dollar, long-term? But while it should ease borrowing for banks, it does little to solve the underlying problem of mountains of government debt in Europe, leaving markets still waiting for a permanent fix. What is that term Obama and Congress love to toss at the American public so often today? That’s right, they use the “We can’t continue to kick the can down the road” analogy constantly, yet this is exactly what the EU and Bernanke are condoning with this latest move.  Where do Germany and France stand on all of this?

The stock markets rallied upon Bernanke’s announcement of the Fed lowering its dollar-swap interest rate, and China’s easing of it’s monetary policy for the first time in several years by reducing bank reserve requirements by 50 basis points. This may be the first of several Chinese easing moves, and it certainly added to the stock surge. Again, take note that China is not willing to buy into the EU debt-disaster, but instead slightly lowers their bank reserve mandates. Also missing from this equation are the two biggest economic elephants in the middle of the EU, France and Germany. Simply put, after Deutshe Bank of Germany received massive bailout funds from the IMF, EFSF, and the ECB schemes that prevented them from suffering massive losses due to the previous buying of EU debt , and they now refuse to take the risks to provide any funding to bailout Greece, Italy or anyone else in the EU, including the newly exposed and problematic French debt-crisis.

The bottom line here is that this is all just another batch of phony solutions to a rapidly-expanding European debt-crisis that was created by the Euro-Zone Globalists, and which is heavily rooted in anti-capitalistic, utopian Socialism and the ever-present denial of the realities of their irresponsible actions.  Nothing has been solved here, much to the dismay of Ben Bernanke, who actually believes that this latest loan-sharking scheme will fool Congress into somehow thinking that Bernanke waved his magic wand and thus prevented the European insolvency that China now sees as inevitable. ( as is proven in their refusal to further buy into the European Socialists massive debt problem nightmare)  Are we to believe that the ECB can just write a trillion dollar check to further prop up the EU’s fast-growing number of bankrupt countries? On top of that, how can the IMF expect to be allowed to borrow another $800 billion from the ECB to give those same bankrupt countries even more money? The bottom line is that they can’t, simply because the money just isn’t there, especially with Germany and France now refusing to participate in any further bailouts without the creation of a New EU treaty. Merkel and Sarkozy have made Europe into a Communist collective that was built on the Socialistic catch-phrase of  denying protectionism, or the rights of European countries to control their own economies through implementing sound fiscal policies. Now they want out of the communist collectivism that they have created to protect their own countries from falling off of the debt-cliff that Italy, Greece, Spain, and other EU infected countries are now on the edge of.  For the proof of Merkel and Sarkozy’s stealth demand for German and French “protectionism” from the European debt-crisis they helped to create,  check out this article neatly titled,  EU Planning a New Treaty. Oh what a tangled web we weave, when first, we practice to deceive.  Sir Walter Scott, 1771 – 1832.

 

 

 

EU Plutocracy on Verge of Collapse

Top Judge Puts the Brakes on Merkel’s EU Bailout Scheme/EFSF Expansion

The EU plutocracy started coming apart at the seems back in September of this year, as Germany’s top Judge, Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent. It is quite refreshing to finally see a top judge demand that politicians decease in creating unconstitutional laws without the express approval of the citizenry. The Judge went on to further explain that if Merkel and company in the EU plutocracy want to continue to grant powers over the German people to the EU, they must do so by calling a referendum and change the constitution. This certainly derails the mini New World European Order plans of taking from the citizenry to continue to support the EU plutocracy.

The main problem seems to be the fact that Merkel and company want to constantly transfer funds and manipulate bailouts in secrecy, as Carsten Schneider the finance spokesman for the Social Democrats of Germany demanded that Chancellor Angela Merkel and finance minister Wolfgang Schäuble clarify their “true intentions ” before the (bailout) vote on Thursday. [We have no wonder how Schneider would feel about Nancy Pelosi’s statement of “We have to pass the bill to see what’s in it,” which she made when she was the third highest politician in America, the Speaker of the House of Representatives.]  As we can see from this article from Reuters, the EU debt crisis pain will undoubtedly be felt in America, as well as around the globe. The EU debt crisis has already claimed  the heads of the Greek and Italian governments with more to come in the following weeks, as the truth about the implications of just what the EU plutocracy has done in the past few years comes to light.

 

 

It would also appear as if the Germans are well aware of Barack Obama’s part in all of this, as we see this little snippet, also from Carsten Schneider, of the German Social Democrats: “A new multi-trillion programme is being cooked up in Washington and Brussels, while the wool is being pulled over the eyes of Bundestag and German public. This is unacceptable,” he said. The New World Order that billionaire manipulator, George Soros so fondly speaks about could very well be on it’s way to being blown into oblivion if the EU collapses as many are predicting today. As Mike Shedlock so aptly put it,”the German court has already killed eurobonds. Now, if the top judge’s call stands, leveraged EFSF just bit the dust as well. Clearly the German court has had enough of Chancellor Angela Merkel, her cronies, and all the politicians who want to rob German taxpayers for their own agenda.” It then comes as no mere coincidence that when the EU bailouts started they always coincided with the unscheduled meetings between Merkel and Obama.

Germany and America both have explicit constitutional mandates limiting the power of those elected into government for the sole purpose of protecting the citizenry from being ruled by a tyrannical plutocracy. Barack Obama and Angela Merkel have trampled both of their country’s constitutions at very dangerous levels, while taking advantage of the ever-increasing world financial crisis where we see the widening gap between the middle class citizens and the elitists running the plutocracy become a source of massive civil unrest. Germany’s top Judge took a stand against Merkel and the EU’s unconstitutional usurpation of power from the people’s Democracy of Germany. Does America have such a courageous judge, one that will stand up for our constitutional laws and protect the citizenry from the tyrannical rule of the Liberal Plutocracy Barack Obama and company have been building for three straight years now? If so, what will it take for you to make a stand, civil unrest, chaos and blood in the streets? By then it will simply be too late. The plutocracy will simply declare marshal law, and the citizenry will be left with the choice between fighting for their freedom from a dictatorship or flight from their beloved America.
2012 can’t get here fast enough!

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Political Cartoon - A.F. Branco - Drillin' for Votes

Is the Dollar Drawing Its Last Breath?

Perhaps a little alarmist, it’s probably a hoax video, but some underlying themes rate contemplation [Story Link].  The SDR as a replacement for the dollar, the huge increase in SDR reserves (1000%) [IMF Link].  I think that link is saying that the SDR will go from 21.4 to 204.1 billion between August 28th and September 9th of this year.  It is possible that they are only saying that it is making that increase since 1969, it’s just not that clear.

Anyone clear on of this is an indicator of more countries going to it as a reserve, or is SDE liquidity being increased for some other reason?