Baltic Dry Index. 951 +36 Brent Crude 57.55
LIR Gold Target in 2019: $30,000. Revised due to QE programs.
"Après moi, le déluge"
Yanis Varoufakis, with apologies.
We are witnessing the death of continental Europe as it existed 1950-2010. It has been replaced by Hitler’s dream of a German continental hegemon. Under strict orders from Berlin, the vassal Greeks voted early this morning for serfdom. Serfdom on the mere promise that Germany might, only might, agree to provide a little more euro’s for Greece’s Visa card. Today the ECB meets to decide to release a little more emergency funding into Greek banks. Whatever the release it will not be enough. Under German pressure the ECB two weeks ago cut off Greece from emergency funding. The Greek economy has been virtually closed for two weeks. The velocity of money in the Greek economy all but stopped. Irreparable damage has been done.
By German edict, 50 billion euros of Greek state assets are to be sold off at fire sale prices. Greece has to sell within five years no matter what. Welcome to the bankster’s paradise of the EUSSR. To bailout brain dead European banksters who bought billions of Greek bonds pretending they were German bonds, Greece has been trashed, smashed and utterly ruined in the cause of the Bilderberger euro that was going to replace Uncle Scam’s hated dollar, and bailing out Europe’s banksters. Greek youth ought to head north now, before the Greek shipping industry sails away. German carpetbaggers fly in next. And so continental Europe starts preparing for the next Greece. Belgium, France, Italy and Spain.
“If weak countries have, individually, little political influence, it will be hard for them to get the ECB to bail them out,” wrote economist Bernard Connolly all the way back in 2008. In today’s EUSSR, all have little political influence against the German hegemon. (http://www.zerohedge.com/news/2015-07-15/shocking-2008-aig-report-laying-out-motives-behind-europes-perpetual-crisis-and-deat)
If we do not succeed, we run the risk of failure.
Tsipras, with apologies to Dan Quayle.
ECB Weighs Emergency Funding After Tsipras Wins Greece Bailout Vote
July 15, 2015 — 11:55 PM BST Updated on July 16, 2015 — 4:06 AM BST
Greek lawmakers passed a bailout agreement that keeps the country in the
euro for now, shifting attention to the European Central Bank as it weighs
whether to pump more money into the country’s hobbled financial system.After more than four hours of debate stretching into the early hours of Thursday, 229 members of the 300-seat parliament in Athens approved new austerity measures that are a precondition of as much as 86 billion euros ($94 billion) in aid. Among those who opposed the bill were 32 members of Prime Minister Alexis Tsipras’s Coalition of the Radical Left, or Syriza, a sign the premier may have lost his majority.
The vote puts the onus on the ECB and other euro-region governments to deploy more emergency funds that would help Greek banks gradually re-open and repair the country’s battered coffers. The ECB’s Governing Council meets in Frankfurt later on Thursday and Germany’s parliament will vote Friday on whether to start bailout negotiations to help Greece cover its debts and pay pensions and salaries.
Accepting the agreement with creditors “was a decision which will be a burden for me for the rest of my life,” Finance Minister Euclid Tsakalotos told lawmakers at the start of the debate. “I don’t know if we did the right thing. But I know we did something to which there was no alternative.”
----Finding a way to open banks and allow normal commerce to resume will be the Greek government’s first priority. In its Thursday meeting, the ECB will discuss whether to increase the level of so-called emergency liquidity assistance it provides to Greek lenders, which have been shut for more than two weeks to stem withdrawals.
Greece also needs to secure bridge financing to cover immediate needs
that include making a 3.5 billion-euro payment to the ECB due on July 20. The
European Union has proposed a facility worth 7 billion euros to tide the
country over until implementation of the full bailout begins. Euro-area finance
ministers are due to hold a conference call on Greece on Thursday morning.
Morehttp://www.bloomberg.com/news/articles/2015-07-15/greek-bailout-approved-in-athens-as-ecb-weighs-emergency-funding
EMU brutality in Greece has destroyed the trust of Europe's Left
'The Left let itself become the enforcer of reactionary policies and mass unemployment because of the euro.' Greece has broken the spell
The EU establishment henceforth faces what it has always feared: a political war on two fronts at once.It is long been fighting an expanding coaltion of free marketeers, parliamentary "souverainistes", anti-immigrant populists on the Right.
Its has now lost its remaining emotional hold on the Left after the scorched-earth treatment of Greece over the past five months - culminating in the vindictive decision to impose yet harsher terms on this crushed nation just days after its cri de coeur in a landslide referendum.
This has been coming for a long time. We Conservatives have watched in disbelief as one Socialist party after another immolates itself on the altar of monetary union, defending a project that favours the elites - a "bankers' ramp", as the old Left used to call it.
We have watched our friends on the Left apologise for 1930s policies. We have seen them defend a regime of pro-cyclical fiscal cuts imposed on the whole eurozone by a handful of "Ordoliberal" reactionaries in the German finance minstry.
To the extent that these gentlemen know what they are doing - and most Nobel economists would dispute that - they have certainly not risen to the challenge of pan-EMU leadership. As ex-official Philippe Legrain writes in Foreign Policy, Germany is proving to be a "calamitous hegemon".
By a twist of fate, the Left has let itself become the enforcer of an economic structure that has led to levels of unemployment once unthinkable for a post-war social democratic government with its own currency and sovereign instruments. It has somehow found ways to justify a youth jobless rate still running at 42pc in Italy, 49pc in Spain and 50pc in Greece, despite mass
More
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/11742624/EMU-brutality-in-Greece-has-destroyed-the-trust-of-Europes-Left.html
IMF Warns Greece Deal Uncertainty May Undermine German Recovery
July 15, 2015 — 3:00 PM BST
IMF staff warned that uncertainty about a new bailout for Greece may
undermine confidence in Germany and delay a pickup in investment that was
expected to drive the recovery of Europe’s biggest economy.
“The risk of renewed stress in the euro area has increased” since a
bailout for Greece funded by euro-member states expired June 30, according to
an International Monetary Fund statement to the fund’s executive board. The
statement is part of an IMF assessment of Germany’s economy released Wednesday.
European leaders agreed this week to a new bailout of as much as 86
billion euros ($94 billion) for Greece, which is buckling under the strain of a
cash-starved banking system. The plan faces several hurdles, including passage
in the Greek parliament of reforms demanded by European creditors.
“For Germany, the main short-term risk is that turmoil will spread and
undermine confidence in the economic expansion,” the IMF said. “This would
likely weaken private consumption and delay the projected recovery in private
investment.”
Managing the risk depends on “timely deployment” of European Central
Bank policy tools, according to the fund, which said the recent developments in
Greece didn’t alter the thrust of its assessment of the German economy.
The IMF projects Germany will continue to see “moderate growth momentum”
as robust real wages buoy consumption and the depreciated euro bolsters
exports, opening the way for businesses to invest more in machinery and
equipment.
The fund projects Germany’s gross domestic product will grow 1.6 percent
this year and 1.7 percent next year.
When the operations of capitalism come to resemble those of the casino, ill fortune will be the lot of the many.
John Maynard Keynes.
At the Comex silver depositories Wednesday
final figures were: Registered 58.96 Moz, Eligible 120.04 Moz, Total 179.00
Moz.
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
Some people make things happen, some
watch while things happen, and some wonder what happened? What happened?
Tsipras, with apologies.
The I.M.F. Is Telling Europe the Euro Doesn’t Work
By JOSH BARRO July 14, 2015
It reads like a dry,
1,184-word memorandum about fiscal projections. But the International
Monetary Fund’s memo on Greek debt sustainability, explaining why the
I.M.F. cannot participate in a new bailout program unless other European
countries agree to huge debt relief for Greece, has provided the “Emperor Has
No Clothes” moment of the Greek crisis, one that may finally force eurozone
members to either move closer to fiscal union or break up.
The I.M.F. memo amounts
to an admission that the eurozone cannot work in its current form. It lays
out three options for achieving Greek debt sustainability, all of which are
tantamount to a
fiscal union, an arrangement through which wealthier countries would make
payments to support the Greek economy. Not coincidentally, this is the solution
many economists have been telling European officials is the only way to save
the euro — and which northern European countries have been resisting because it
is so costly.
The three options laid out by the I.M.F. would have different
operations, but they share an important feature: They involve other European
countries giving Greece money without expecting to get it back. These transfers
would be additional to the approximately 86 billion euros in new loans
contemplated in Monday’s deal.
“Wait a minute,” you might say. “The I.M.F. isn’t calling for a fiscal
union; it’s calling for debt relief.” But once a debt relief program becomes
big enough, this becomes a distinction without a difference; they’re both about
other eurozone countries giving Greece money.
Indeed,
one of the debt relief options proposed by the I.M.F. is “explicit annual
transfers to the Greek budget,” that is, direct payments from other governments
to Greece, which it could use to make its debt payments. This, obviously, is a
fiscal union.
A second option is extending the grace period, during which Greece would
be relieved of the obligation to make interest or principal payments on its
debt to European countries, through the year 2053. That’s not a typo. Under
this plan, Greece would make no more debt payments until Justin Bieber is 59
years old. This is a fiscal union by another name, since those lengthy and
favorable credit terms would save the Greeks money at the expense of Greece’s
creditors, most of which now are other European governments or the I.M.F.
The third option floated by the I.M.F., a cancellation of a portion of
Greece’s debts, has been fiercely resisted by the German government, even
though this is the option that least obviously constitutes a continuing fiscal
union. Debt cancellation is a one-time fiscal transfer (if I lend you $100 and
then forgive the debt, that’s much like me simply giving you $100), but at
least in theory it would be done only once, with Greece expected to stand on
its own otherwise. The important exception is that Greece would still need to
rely on European governments to lend it money at favorable rates, though not
quite as favorable as under the Old Bieber scenario.
----The
memo makes clear what the real cost to Europe of continued eurozone membership
for Greece is: If European governments want to keep Greece in, they’re going to
have to put up a lot of money in one non-loan form or another, money they will
give Greece that they never get back.
More
Solar & Related Update.
With events
happening fast in the development of solar power, I’ve added this new section.
Updates as they get reported. Is converting sunlight to usable cheap AC energy
mankind’s future from the 21st century onwards? A quantum computer
next?
There is nothing more difficult to take in hand,
more perilous to conduct, or more uncertain in its success, than to take the
lead in the introduction of a new order of things.
Nicolo Machiavelli
No update today.
The monthly Coppock Indicators finished June
DJIA: +98 Down. NASDAQ:
+192 Down. SP500: +127 Down.
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