Finland Preparing For Eurozone Breakup

Erkki Tuomioja, Finland's Foreign Minister, has stated that Finland is preparing for the breakup of the Eurozone. He is quoted in the Telegraph:

"Our officials, like everybody else and like every general staff, have some sort of operational plan for any eventuality."

He wisely and honestly notes that the end of the Eurozone does not mean the end of the EU. Other politicians in the Eurozone would have us believe that the end of the Euro will sound the death knell for the EU, this is of course scaremongering nonsense.

Kudos to Mr Tuomioja for speaking the truth and for shooting the fox of the lying Europhiles!

Read More

Don't Believe The ECB Hype

The markets and some commentators are trying to delude themselves that the ECB will finally do something tangible to "save" the Euro.

ECB President, Mario Draghi, has managed to con some people who should know better into believing that the ECB will conduct a major bond purchasing campaign. In theory the bond buying campaign will reduce the interest rates of Spain and Italy (note Greece is not included, because it has been thrown to the wolves) and thus save the Euro.

However, people are ignoring the two very large elephants in the room:

1 Any such decision and action to buy bonds will not occur until after 12 September, when Germany’s top court rules on the ratification of the ESM. This being over a month away means that Spain and Italy, because of crippling interest rates, will most likely have imploded by them.

2 Germany’s top court may well not ratify the ESM. Even if it does, all 17 eurozone members would need to agree to it as well. Fat chance!

Therefore, don't believe the ECB hype.

The Euro, in its present form, is finished!

Read More

Greece Spiralling Downwards

Costas Mitropoulos, the chief executive of Greece's privatisation agency, resigned on July 19.

 

In an open letter to Finance Minister Yannis Stournaras he notes that the new government has not given him/the agency the support needed:

"In order to accelerate privatization and to carry out the projected result, the government must provide full support for the administration of the Hellenic Republic Asset Development Fund (HRADF), facilitate all actions, and promote privatization as planned. This will give a message of reliability, professionalism and commitment to those looking to invest in Greece. The newly elected government has not given the support needed... 

Instead, they have indirectly yet systematically reduced the prestige and credibility in the eyes of potential investors. 

Furthermore, no set date has been given to the Chairman of the Board to resume meetings and indeed accelerate the privatization program. 

In these conditions I can no longer work professionally and effectively in my role as CEO entrusted by the state in July 2011."

Given that privatisation is key rebuilding the Greek economy and to ensuring that it honours its bailout commitments, the lack of progress indicates that Greece will not meet its commitments and that the economy will continue to spiral downwards.

Read More

The Oncoming Storm - Eurogeddon

Europe is poised to bailout Spain and Italy to the tune of £600BN, and the Telegraph reports that a  Bank of England policy maker has told traders to prepare for a devastating market seizure similar to the collapse of Lehman Brothers.

Batten down the hatches!

Read More

Euro0.5Trillion EU Exposure To Greece

€ Billion	Total Exposure to Greece
Eurozone:	Austria	15.5
	Belgium	17.7
	Cyprus	1.1
	Estonia	0.7
	Finland	8.5
	France	138.9
	Germany	139.4
	Greece	7.7
	Ireland	7.8
	Italy	84.9
	Luxembourg	1.3
	Malta	0.6
	Netherlands	30.7
	Portugal	19.8
	Slovakia	2.7
	Slovenia	2.3
	Spain	55.7
Non-Eurozone:	Bulgaria	0.2
	Czech Republic	0.3
	Denmark	0.5
	Latvia	0.0
	Lithuania	0.1
	Hungary	0.3
	Poland	0.4
	Romania	0.3
	Sweden	0.9
	United Kingdom	13.5
Total		551.8

Source Zerohedge

Read More

Roadmap To Banking Union - Secret EU Summit Document

Courtesy of the Telegraph the "limite" text is secret, restricted for the "eyes only" of diplomats and officials preparing for the 28 and 29 June European Council in Brussels.

Read More

Cyprus To Ask For Bailout?

It appears that Cyprus is to ask the EU for a bailout.

The EU has stated that Cyprus hasn't asked for a bailout, but that is what the EU said about Spain last Friday.

Read More

EU Admits There Is No Plan

Finally the EU has admitted to what we have known all along, namely that it has no plan.

Specifically, in the case of Spain, there has been no request from the Spanish authorities for a bank rescue and that there is no EU rescue plan for Spanish banks.

I assume that this statement is meant to somehow reassure the markets?

Just remember, and repeat, as I have said many times before:

- There was no plan
- There is no plan
- There never will be a plan

Read More

The Vacuum At The Heart Of European Economic Policy

Nature abhors a vacuum.

The "leaders" of the Eurozone and ECB may care to ponder the above statement, in relation to their inaction and non existent "plans" for resolving the Euro crisis.

For why?

A political vacuum, caused by inactive, ineffectual politicians and hare brained economic policies, will be filled by scum such as the individual in the above video.

This is a portent of the future of Europe; if the "leaders" of the Eurozone et al do not get their acts together, Europe will descend into chaos to the benefit of the scum of the extreme right and left.

Read More

The EU "Master Plan"

The EU has decided to try to stop the ongoing meltdown of the Eurozone, by publishing new crisis management measures to avoid future bank bail-outs. The aim is to ensure losses are borne by bank shareholders and creditors, and minimise costs for taxpayers.

The main resolution tools are the following:

• The sale of business tool whereby the authorities would sell all or part of the failing bank to another bank;
• The bridge institution tool which consists of identifying the good assets or essential functions of the bank and separating them into a new bank (bridge bank) which would be sold to another entity. The old bank with the bad or non-essential functions would then be liquidated under normal insolvency proceedings;
• The asset separation tool whereby the bad assets of the bank are put into an asset management vehicle. This tool cleans the balance sheet of a bank. In order to prevent this tool from being used solely as a state aid measure, the framework prescribes that it may be used only in conjunction with another tool (bridge bank, sale of business or write-down). This ensures that while the bank receives support, it also undergoes restructuring;
• The bail-in tool whereby the bank would be recapitalised with shareholders wiped out or diluted, and creditors would have their claims reduced or converted to shares. An institution for which a private acquirer could not be found, or which could be complicated to split up, could thus continue to provide essential services without the need for bail-out by public funds, and authorities would have time to reorganise it or wind down parts of its business in an orderly manner. To this end, banks would be required to have a minimum percentage of their total liabilities in the shape of instruments eligible for bail-in. If triggered, they would be written down in a pre-defined order in terms of seniority of claims in order for the institution to regain viability.

Sadly, as with all EU "plans", there is a caveat. Even if these "plans" were to be enacted and to be effective, they will not come into force until 2014 at the very earliest.

These "plans" are therefore of no help or hope to the millions of people in Europe who are now unemployed, and to the millions of people who have seen their taxes squandered by EU politicians and Eurocrats who are frozen with fear and indecision like rabbits in the headlights of the oncoming financial juggernaut.

Read More

Spain Effectively Insolvent

ZeroHedge has quoted Charles Diebel (Lloyds Head of Market Strategy) as saying that Spain is "effectively insolvent".

Read More

The EU Oversteps The Mark

The EU has said today that the Eurozone should consider setting up a banking union and allow a rescue fund to directly boost the capital of banks to further stop expensive bailouts from pulling down governments’ own finances.

That's all very nice, in theory. However, the EU is not the ECB; it is up to the ECB and central banks to determine the capitalisation levels of European banks.

Read More

The End Game For Greece

Markets are falling and Greek debt yields are rising as a result of the failure of Greece to form a government. and the increasingly hostile attitude to Greece continuing to remain in the Euro from other Eurozone nations.

To add fuel to the fire Greek government spokesman, Pantelis Kapsis, has told the media that no decision has yet been made on repaying May 15 bond. This implied threat of default is Greece's attempt to raise the stakes in their game of poker with the Eurozone.

Finance ministers from the 17 Eurozone countries will meet this afternoon at 4pm GMT for talks that, one senior EU official told the Wall Street Journal, would be "very political".

It is clear that Greece will leave the Euro, it is not clear when this will happen. However, as and when Greece leaves, it will timed to "surprise" the markets and the population of Greece so that the necessary controls (eg prevention of mass capital flight) are in place.

Read More

Greece To Get Money If It Leaves Eurozone

Spiegel Online notes that as Greece will still be a member of the EU, even if it leaves the Eurozone it will still receive aid from the EU.

I wonder if the article has been written with the intention of tempting the Greeks to leave the Eurozone?

Read More

The Solution To All of Europe's Problems - Baroness Ashton

Baroness Ashton, the High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the Commission, is quoted today ("Europe Day"):

“The coming year will be crucial for Europe's recovery – and for Europe's future. Not only the steps we take internally in the European Union on the economy and with Croatia joining in July but also how we engage globally.

Everywhere I go, I hear that others from outside Europe want to work with a Europe that is active and committed, so that is what I intend to do next”.

Problems solved!

Read More

Advice To The EU

You can always renegotiate anything, defaulting is a form of "renegotiation"!

Read More

It's All Greek

Those of you who expect that the Greek elections this Sunday will resolve the uncertainty over Greece keeping to the bailout conditions and remaining in the Euro will be severely disappointed.

It is widely expected that the results will bring chaos, and that more elections will be necessary later this year.

Whatever the results of the elections, Fitch are of the view that out of the alternative scenarios a Greek exit is the most likely.

Read More

EC Fiddles Whilst Europe Burns

Eurozone unemployment has hit a record high of 10.9% (17.3M people are now looking for work), with Greece clocking in at 21.7% and Spain at 24.1%.

The EC claims that it is taking the problem seriously, and will (by the end of May) publish "country specific recommendations".

Given that the rate of unemployment rose by 169K in the last month, this means that even if the recommendations were of any use (which of course they won't be) another 169K people will be out of work by then.

The EC's only real objective is to ensure that it obtains a budget increase of 6.8%, it is fiddling whilst Europe burns!

The EC is not fit for purpose, as the people of Europe are finding out to their cost.

Read More

Spanish Youth Unemployment Soars

As our EU overlords seek to impose further austerity measures on their subjects, whilst at the same time seeking an increase in their own budget for 2013 of 6.8%, it is worthwhile remembering that the EU financial straitjacket is having real consequences for real people.

Spanish unemployment figures have hit a record level of 5,639,500 at the end of March (24.4%), with youth unemployment at a shocking level of 52%.

The EU may care to pause and reflect on those figures for a moment, before it continues with its self destructive quest to fill its bloated coffers with a 6.8% increase in budget.

Read More

Useless Gobshites - The EC

Here are threes sets of figures:

- Total cuts in public spending in Greece: -20% (as share of GDP)
- Total cuts in government spending in Latvia: -22%
- Proposed increase in the EC’s 2013 budget: 6.8%

Notice something odd?

Yes, that's right, the body that is imposing austerity packages on EU countries is asking for an increase in the budget of the European Commission of 6.8%!

The EC has lost touch with reality, and is quite clearly a threat to stability and well being of Europe itself.

Read More