WILLS COMMENTS :
So the day after the data officially released Bloomberg breaks it dow and what happened 2 years ago : Fed Emergency Borrowers Ranged From GE to McDonald’s – Bloomberg. The FED went ballistic and printed 3 trillion paper cash for insiders to fix their supposed liquidity difficulties, how handy.\
A term to describe Capitalism gone beserk, a capitalism where international capital and hot money flows seem to be hold sway over all else. Is this the *markets* the media talk so much about. If so how can this be a good thing. To-day will involve my attempts to square off on what the markets really are and how they fix into the narrative play in relation to ireland and the pressure they are exerting down on PIIGS putting cause to EU and ECB and Germany banks to keep ahead of its wrath. Link here good place to start : ‘Disaster Capitalism’ Comes to Ireland | CommonDreams.org
News of the day :
So its official the FED bailed out European and UK and so Irish banks in secret and yesterday released the data. Slew of links to it on the web, will post a few. The changes the narrative gameplay. ECB acquired its bailout flush fund substantially form the FED. The FEd a privately owned private bank, not owned by the USA gov. A little backstory on this news below :
FT ‘s Wolfgang Munchau breaks it down for Ireland :
I would advise the following course of action.
First, Ireland should revoke the full guarantee of the banking system, and convert senior and subordinate bondholders into equity holders.
I am aware that this would create second-level problems, in pension funds, in other banks, but it would be less costly, and more equitable, to deal with those specific problems on a case by case basis, than to dump the entire cost on the taxpayer.
The Government should then assess its own solvency position on the basis of an estimate of nominal growth of no more than 1 per cent per year for the rest of the decade. That may well be too pessimistic an assumption, but at this juncture it would be more prudent to err on the side of caution than optimism. Given the scale of the financial crisis, and its direct impact on growth, and everything we know from the history of financial crises, the case for a cautious forecast is overwhelming.
Without the load of the banking sector, such an analysis may well conclude that the Irish State is solvent. The result would depend to a very large extent on the success and extent of any bail-in programme, and the ability to contain any fall-out from such action.
If the analysis concludes that Ireland is insolvent, the Government should waste no time, and restructure the debt. Massive pressure from the EU will be brought on Ireland not to do so. But the right answer to insolvency is default – not liquidity support. Let the German government pay for the German banks, and for the recapitalisation of the European Central Bank, which may need to be refinanced under such a scenario as well.
EU / ECB making a leap forward here in centralizing more power thru the issuance of money : Europe bailout fund to issue bonds – The Irish Times – Thu, Dec 02, 2010 and here : Trichet Set to Outline ECB Crisis Response – WSJ.com
Isnt it rather an odd coincidence the day ECB come clean on its heavy heavy printing of money on an industrial scale to offset banking contagion which in of itself was massive property POnzi pyramid schemes across europe and a flooding of the PIIGS countries by cheap credit to buy germany product to turn Germany into the outsider horse superpower grand national winner, the day after the FEDS admission on its own printing of money on an industrial scale. Go figure!
Time to consider the euro a busted flush by the risen superpower that is Germany. Germany stood by and permitted its banks to flood Ireland and PIIGS with cheap money which German interests knew would be used to buy German. This then would fuel a German boom of industry and propel Germany into a new future of success rising far up high over the servile PIIGS who took the credit. Germany has a choice to bust the euro and start its own currency. The Economist is on the case here : The future of the euro: Don’t do it | The Economist