US= CYPRUS test…
Greece’s troubles started in 2009, when its national debt topped 113% of its gross domestic product (GDP). With U.S. GDP expected to be $15.0 trillion this year, and with our national debt at $17.0 trillion, the U.S.’s national debt will hit—you guessed it—113% of GDP in 2013.
under 100% is considered minimum healthy!
no bank runs,no burning buildings, Cyprus test is a HUGE success!
BANKERS WIN! US is Next! Buy Gold and Junk Silver coins. Protect your Bank deposits, yourself.
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news is starting to hit the major wires.
Chicago Sun Times , just a blurb though.
yep that’s the plan. keep censoring this cypress story, so that one monday morning, Americans will wake up, with 40% of their savings gone.
40% is the number, originally discussed at Brussels. i’ll go with that one
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2 trillion, they US govt, have to come up with 2 trillion to balance the debt to gdp ratio.
i guess when that is balanced, it’ll be off to solve the next problem
the fed has practically admitted, that they are out of tools. that’s why they used the nuclear option, 85 bil a month
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New Zealand’s Finance Minister says markets should not be surprised if more issues “pop up” from the euro zone.
“They’ve [the euro zone] got large, long running problems related to debt levels, which are still rising and they’re not going to be resolved quickly,” “I think over the next five to seven years, you’re going to see these occasional outbreaks of anxiety in quite unexpected ways.”
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Steve Forbes: Here’s Why Cyprus Could Be A Disaster For All Of Us!
It’s not inconceivable that President Obama or somebody with a similar ideology could propose seizing and integrating people’s 401K plans into Social Security. And in a panic, Congress would go along.
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The Great Cyprus Bank Robbery Shows That No Bank Account, No Retirement Fund And No Stock Portfolio Is Safe
(Reuters) – A shirt-sleeved Obama opened the morning session, promising to seek ways to restore healthy growth and jobs and address concerns in Europe.
“All of us are absolutely committed to making sure that both growth and stability, and fiscal consolidation, are part of an overall package in order to achieve the kind of prosperity for our citizens we all are looking for,” Obama said.
Obama, whose re-election chances in November depend heavily on the U.S. economy continuing to shake off recession, said there was now “an emerging consensus” that Europe ought to invest in job-creating infrastructure and other programs at the same time as it tackles its deficits and debt.
2012-05-19_1924The entire world wide MLB franchise organization seems to be pulling out all the stops for this critical game. Major league FED/ECB easing via currency swap lines, combined with jumbotron EURO bank cash infusions & sturdy back stops should keep the ball in play. Obama will throw the first pitch over the plate for game 7, and a QE3 stadium wave will be unleashed to rally the cheering fans. Home plate Umpire Big Benny B will signal the all clear, Tiny Tim will direct the wave from the public announcement booth.
The European baseball commissioner served up moneyball comments on the crucial game:
World leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing their economies, which are increasingly threatened by Europe’s debt crisis.
European leaders seemed keen to stress on Friday that they would stand firm in protecting their banks, after news of escalating bad loans raised the specter that rescuing Spain’s banks would crash the euro zone’s fourth largest economy.
“We will do whatever is needed to guarantee the financial stability of the euro zone,” European Union President Herman Van Rompuy said.
Marc Chandler, currency strategist at Brown Brothers Harriman, said: “It is significant that a group as weighty as the G8 backs Greece and reinforces the idea that Europe needs a strong union. It strengthens its hand.”
Astonishingly, our Cricket paddle playing friends across the pond, are also showing interest in the deciding game:
British Prime Minister David Cameron, after an early morning treadmill workout with Obama at the Camp David gym, said he detected a “growing sense of urgency that action needs to be taken” on the euro zone crisis.
London relies heavily on international finance and banking instability would strike a fresh blow to an economy already in recession.
“Contingency plans need to be put in place and the strengthening of banks, governance, firewalls – all of those things need to take place very fast,” he told reporters.
Joltin Joe Dimagio of Italian decent, and the Gallic bomber’s native country offered up the following winning game plans:
Earlier French President Francois Hollande suggested using European funds to inject capital into Spain’s banks, which would mark a significant acceleration of EU rescue efforts.
“I will outline all growth proposals at this informal meeting on May 23,” Hollande told reporters at the end of a G8 leaders meeting in Camp David. “Within this packet of proposals there will be eurobonds and I will not be alone in proposing them. I had confirmation on this at the G8.”
An Italian newspaper reported that Italian Prime Minister Mario Monti has proposed at the G8 summit creating a Europe-wide system of bank deposit insurance. Officials had no immediate comment.
The only voice missing to shout out proclamations on the decisive game, was the loud stout German blonde anchor women of the cheer leading squad. It seems a large contingent of disgruntled Greek fans from Astoria NY, poured cold Budweiser beer on her head from the stands above, and heaved jumbo sauerkraut hot dogs laced with French’s bright yellow mustard directly at her, splattering her costume with heaps of foul food stains. She was utterly humiliated, forced to head back to the showers to rinse out her hair, and pull out a clean outfit from her austere grey locker. Highly doubt we will be hearing a peep out of her for the rest of the game.
On an interesting side note, this just in from European MLB: The Gyro Spartans are losing their home game against the Frankfurt Nazis 42 to zero, bottom of the ninth. Apparently, their clean up power hitter Alex Tsipras has been ejected from the game for punching pitcher Wolfgang Schaeuble in the face, after having been beaned in the groin by his ferocious Messerschmidt fast ball. Unfortunately this leaves the Greek National team with only 8 ball players left on the roster, however, the EUMLB default rules do not permit them to forfeit the game. The League has ordered them to add their gay bat boy to the line up. At this point, one can only hope that Wolfgang has completely lost control of his Messerschmidt, and hits the next 47 batters in a row. We wish the hapless Gyros better luck next week, as they are scheduled to face the loser of the much anticipated series between the powerful Berlin Krouts & the up and coming French Grey Poupons…………..Go Gyros!
So you see double play Dopes, the big game hangs in the balance, and the top dogs are at bat. They will make sure it’s not rained out, and that the ball bounces right out of Candlestick park.
Play ball, the count is full, swing away……Evil Plan 63.0 will run the score right back up to 1360.
Now that we have been shown the culinary choices on the simple macro menu, let’s explore the technical treats. Very juicy orange wedges on both the S&P and the USD are about to be sliced one way or the other. These clearly defined wedges have been narrowing & compressing for the past 3 weeks, and something is about to give way. Charles Hugh Smith, who’s blog “of two minds” is always a whimsical and interesting read, has posted the following charts which high lite the impending break out of theses “Wedgies”, as he amusingly calls them… Finish Reading-=- CLICK HERE!-=-
It seems the ominous warnings signs, precisely laid out in EPs 47.0 & 51.0, illustrating the potential for a violent pan European eruption, were indeed on the mark. And this time, it’s not just the Greek Gods that are pissed off. The Eurozone volcano is not only spewing gritty ionian volcanic ash clouds, grounding all Airbus a320′s on the continent, but much more terrifying, the real thing, hot molten iberian lava which may well cause a complete melt down of the entire grid.
Spain is deep in the red hot shit, and if you thought Greece was bad, you may want to turn away from the brilliant erupting flames before your eyes fry. Spain’s economy is the fourth-largest in Europe, and it’s twice as large as Ireland, Greece, and Portugal all put together. Spain’s failure would likely spell the end of the Eurozone, the 17 countries that use the euro currency, and would send shock waves through the global financial system. As previously discussed, Spain is clearly circling the drain. The Iberian Peninsula, now has a debt to GDP ratio of nearly 80%, a 20 year high. National unemployment is just shy of 25%, and the out of work youth numbers are a mind blowing 50%. Spain released details of an extreme austerity budget, which includes $36 billion in tax increases and spending cuts, aimed at reducing the deficit from 8.5 percent of gross domestic product to 5.3 percent this year. However, investors in the know claim the austerity measures, harsh as they are, fail to meet the government’s previous deficit targets. In addition, many analysts are skeptical that the local governments, which enjoy a degree of autonomy from the central government, will follow through on all the cuts. Can you say, burning Andalusia! Also most alarming, is the sate of the Spanish housing market, which has been often described as “the mother of all bubbles”. The lasting effects of Spain’s housing crash continue to weigh down banks, the construction industry, and the investment-services sector. The Spanish stock market is “teetering on the edge of an outright meltdown,” says Vincent Cignarella at The Wall Street Journal.
Investors run scared of Spain’s battered banks – Reuters:
Spain’s banks are fast joining the ranks of the most unloved in Europe just as many need to raise capital urgently, deserted by investors who believe the country is on the brink of a recession that many lenders will not survive.
The government has ruled out more state aid for a sector that comprises a motley mix of international lenders and heavily indebted local savings banks. That leaves two options: raising private capital or turning to the EU for bailout funds.
Prospects for a private sector solution are poor. Nothing on the horizon looks likely to persuade foreign fund managers to invest, such is the fear of the banks’ growing bad loans, their holdings of shaky sovereign debt and the worsening economy.
Already battered by a property market crash that began four years ago and continues unabated, few Spanish banks are able to borrow funds on wholesale credit markets and the majority are instead relying on the European Central Bank.
Analysts at Citigroup suggest Spanish house prices could fall a further 20-25 percent before hitting a floor. This will eat further into the value of the 300-plus billion euros’ worth of property assets on banks’ balance sheets – 176 billion euros of which is already classed as “troubled” by the Bank of Spain.
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BDI
I am pleased to announce that my favorite market condition has finally materialized. It’s not often that Macros, Fundamentals, & Technicals all line up impeccably, each pointing in precisely the same ominous direction. The dry bull dung is now perfectly arranged in neat stacks of cow patty piles, just in time for the ferocious shit storm bearing down on us. Heads up, get out of the way! The aging raging bull is about to take another massive dump.
Bull Crap #1……..Macro Picture:
The Europanic attack is back in full force. Spain & Greece are leading the charge, while France & Italy are heading up the cavalry, as Portugal & Ireland bring up the rear guard, and the U.K. artillery is stuck in the mud. This time, Spain is in deep trouble, and if you thought Greece was bad, you may want to shut your eyes right here. Spain’s economy is the fourth-largest in Europe, and it’s twice as large as Greece, Ireland, and Portugal put together. Spain’s failure would likely spell the end of the eurozone, the 17 countries that use the euro currency, and would send shock waves through the global financial system.
As previously discussed, Spain is clearly circling the drain. The Iberian Peninsula, now has a debt to GDP ratio of nearly 80%, a 20 year high. National unemployment is just shy of 25%, and the out of work youth numbers are a mind blowing 50%. Spain released details of an extreme austerity budget last week, which includes $36 billion in tax increases and spending cuts, aimed at reducing the deficit from 8.5 percent of gross domestic product to 5.3 percent this year. However, investors in the know claim the austerity measures, harsh as they are, fail to meet the government’s previous deficit targets. In addition, many analysts are skeptical that the local governments, which enjoy a degree of autonomy from the central government, will follow through on all the cuts. Can you say, Andalusia! Also most alarming, is the sate of the Spanish housing market, which has been often described as “the mother of all bubbles”. The lasting effects of the housing market crash continue to weigh down banks, the construction industry, and the investment-services sector. This quote from the magazine The Week sums up the entire festering problem in Spain, and more generally in most of Europe: “More than 800,000 Spaniards took to the streets to protest the austerity measures, fearing that cuts would lead to layoffs. Many economists agree. That notion has become the central paradox of the European debt crisis: Brutal cost-cutting inevitably bumps up the jobless rate and slows down economic growth, and that virtually ensures the government won’t be able to raise enough revenue by taxing businesses and workers.” The Spanish stock market is “teetering on the edge of an outright meltdown,” says Vincent Cignarella at The Wall Street Journal. Finish Reading-=- CLICK HERE!-=-
