Frau Merkel Continues Her "I'm Unpopular With All Humans" European Tour..

After Starting Riots In Greece, Merkel Booed In Germany Next.  If Merkel had a heart (or soul, for that matter..), she might be upset.  No worries there, though!  Zero Hedge.  Excerpts:


What does an iron chancellor have to do to be loved these days? After scrambling 7,000 members of the Greek police force out of an early prepaid retirement for her brief, still inexplicable 6 hour visit to Athens last Tuesday, which caused the now usual Syntagma square rioting, Merkel next took the stage in a rainy Stuttgart, in a show of support for the local mayor candidate Sebastian Turner, which promptly devolved into 14 minutes of continuous booing.  (Video at the link.  It's awesome if you like your videos full of boos.  Boo!  Boo!  Chant!  Priceless..  )
And:
The truth is that a vast majority of Europe's people now want the grand experiment, which merely enriches a small subset of participants while impoverishing everyone else, over and done with: it is this endless pursuit of power and money at all costs that starts wars - not whether Germany and France share a fake currency, that is the cause of the endless bloodshed in Europe. The only reason why wars not only in Europe, but in the world, were avoided for the past several decades, is due to the incursion of globalization which merely allowed the encumbrance of every global assets with layers upon layers of additional debt, creating money in the process and keeping the oligarchy happy. But it is this oligarchic 'subset' that calls the shots, and the same subset is now realizing the ability to create debt out of thin air in Europe has now ended. And it will gladly take Europe to the edge of war if it means, well, "avoiding war", at least in the Nobel committee's naive version of the world, in the future.


Frau Frau needs a diversion:  Where the hell is Techno Viking when you need him?

Europe's Largest Insurer Allianz Not Amused That Central Banks Are Involved In Liborgate

According to Zero Hedge, Allianz might be mad because people found out, not the rigging itself..  Blerg..

What a difference a revisionist market rally makes. Remember when everyone was involved in Libor manipulation? No? Curious what a few hundred DJIA points will do especially when the corporate revenues and supporting them simply are not there, and one goes all in on multiple expansion. One entity which, however, has not forgotten about Lieborgate is Pimco parent and Europe's largest insurance firm, Allianz. And they are not happy: "Europe's biggest insurer, Allianz, is worried about the role central banks may have played in an interest rate rigging scandal that has enveloped some leading international lenders, the insurer's chief financial officer said on Friday. "We do not find it funny, what has happened, in particular the arising implication that it is not just the banks but central banks being involved in this," Oliver Baete told a conference call with analysts. "That really gives us cause for concern," Baete added." Of course, neither the ECB nor the FED could care much, considering that Allianz would be immediately insolvent if the same central banks who manipulated Libor stopped manipulating interest rates... which is implicitly what Allianz is unhappy about.


Bitches!  How dare you get caught!  You said muppets and auditors were stupid!

The Hedge Fund Trail In Liborgate Gets Hotter: Mega Fund Brevan Howard Next?

Oh my..  Lieborgate's turning out to be a real super inclusive club/scandal.  Zero Hedge.


Two days ago we made the "missing link" connection between traders in Libor manipulating banks (all of which curiously had a hub in Singapore: something else for the media that has been about 4 years too late on this topic to focus on) and hedge funds (most of which curiously centering on the otherwise sleepy bastion of banking: Geneva, Switzerland). The immediate aftermath was the loss of trading privileges of one Michael Zrihen. We are fairly certain this is just the beginning of the hedge fund bust: when all is said and done, many more funds will have terminated traders they hired for reasons (and kickbacks) unknown over the past 2 years as Lie-bor manipulators sought to put a clean firewalled break between their old employer and current one. Because apparently sometimes the regulators are that stupid and can be confused by a simple job change. And while many have assumed (and even calculated based on completely groundless assumptions) that only BBA member banks have benefited from Libor manipulation, the reality is that hedge funds were just as complicit and benefited just as much if not more. What is worse, they took advantage of their whale client status with manipulating banks, and courtesy of Total Return Swap and other leveraged gimmicks, made far more money when they co-opted two or more banks to do their bidding. Impossible you say: hedge funds would never be so stupid. Oh very possible: we present exhibit A - Brevan Howard, a "fund, with assets of $20.8 billion as of Dec. 31, has never had a losing year and returned 14.4 percent annualized from its April 2003 inception through the end of 2008" as Bloomberg said in a made to order profile of the funds recently. Perhaps there is a very simple reason for this trading perfection: "Brevan Howard telephoned on 20 Aug 2007 to ask the defendant to change the Libor rate," according to a paper filed with the Singapore High Court cited by Bloomberg."



Here is The Telegraph with a smoking gun that was promptly buried in the avalanche of sudden media coverage in the aftermath of the Barclays Liborgate settlement.

Tan Chi Min, a former RBS trader who claims he was wrongfully dismissed by the bank after it fired him for allegedly trying to manipulate Libor - the average rate at which banks lend to each other - said he had received the request in 2007 from Brevan Howard.
"Brevan Howard telephoned on 20 Aug 2007 to ask the defendant to change the Libor rate," according to a paper filed with the Singapore High Court cited by Bloomberg.

Oops.
That one statement should be enough to send shivers into the heart of whoever may be General Counsel of Brevan Howard (and many other mega funds right now whose names will make front page appearances in the coming weeks), as it provides the banks with something that so far has been missing. Motive. Because while it may be difficult to prove that Barclays or RBS benefited from Libor manipulation, pandering to a mega client is very, very easy to prove - there is always a trace. It also makes it very easy for the prosecution to include hedge funds, which are just as hated by the general populace as big banks if not more, into what is shaping up as one perfect litigation storm (and distraction from the real culprit here: the global central bank cartel).


Telegraph goes on:

The court filing alleges RBS "received this request without objection". Brevan Howard is not a party to the lawsuit and is not being investigated or sued for any alleged wrongdoing. RBS and Brevan Howard both declined to comment.


Mr Tan claimed in his filing that Scott Nygaard, head of short-term markets finance at RBS, knew about the call from Brevan Howard. However, the filing contained no further details to support his allegations. However, he is reported to have said he would provide further evidence at a later stage.
The legal case follows Mr Tan's firing in December over allegations he had attempted to improperly influence RBS's Libor-setting staff between 2007 and 2011. Mr Tan, who worked for RBS in Singapore as head of delta trading, claims he was wrongfully dismissed by the bank.

Ah yes our old friends: the ubiquitous Delta Traders who somehow have a finger in everything from ETF trading, to gamma, to convexity trades, and now- serving as the nexus between Libor manipulation demanding clients and in house Libor fixers.



The plot just gets thicker and thicker.

Mr Tan is claiming $1.5m (£943,000) in bonuses and 3.3m RBS shares that he says the bank owes him in pay. He claims in his lawsuit that asking for changes in Libor was "common practice" among RBS traders and that the bank "took requests from clients" to alter the rate.

And there it is: "Took requests from clients" not just manipulated rates for its own interest. And this is where the universe of guilty parties explodes exponentially, and reaches not only Geneva Switzerland, but virtually every single hedge fund that had even a modest fixed income trading link over the past decade.



Watch this space closely: it will get very hot soon.

Yes.  Yes it will get hot, very hot, very soon!

IMF Says Japan And Spain Are Done, "Debt Ratio Will Never Stabilize"

Needless to say, this is not good news..  Zero Hedge:  (Emphasis theirs..)

The IMF believes that advanced economy deficits will decline by about 0.75 percentage points of GDP this year which 'strikes a compromise between restoring fiscal sustainability and supporting growth". However, continued focus on nominal deficit targets runs the risk of compelling excessive fiscal tightening if growth weakens. In addition, there is a risk in the United States of political gridlock that puts fiscal policy on autopilot and results in a sharp and sudden decline in deficits—the “fiscal cliff.” What is more troubling is the significant upward revision to all of the peripheral European nations (with Greece now at 171% Debt/GDP in 2013 versus 160.9% forecast only 3 months ago). While the average debt-to-GDP ratio among advanced economies is projected to continue to rise over the next two years, surpassing 110 percent of GDP on average in 2013, debt ratios will by then have peaked in several advanced economies - though rather explosively they do not see debt ratios for Spain and Japan stabilizing.

Blood, debt and fears: crowds rise up as Spain agrees new €65bn cuts

This time, it's Spain that's heating up.  The Independent.  Excerpts:

The Spanish Prime Minister, Mariano Rajoy, unveiled a fresh round of spending cuts totalling €65bn over two years at a noisy session of parliament yesterday. The measures represent the country's latest bid to convince financial markets that its public finances are in order and prevent a debt crisis spreading to the rest of the eurozone.



At the same time, hundreds of striking miners led a rally which stretched for miles along Madrid's main road in protest over cuts in subsidies they say will destroy Spain's coal industry.


The protesters tossed fireworks and clashed with riot police, who fired rubber bullets, as the unions vowed widespread action for the week beginning on 21 July. The demonstrations spread to the capital's parliamentary building and the headquarters of the governing conservative People's Party (PP).


At least one volley of rubber bullets was fired directly at miners, relatives and sympathisers as they gathered outside the Industry Ministry after marching up Madrid's main north-to-south street, the Castellana.

Expect Spain's tensions and resistance to rise right up to July 21, and then..  It's anybody's guess. 

Society's fabric unravels, unabated, breathtaking in its absolute..  Thoroughness. 

Everything truly is all happening now.

LI(E)BOR-Gate Crosses Ocean, Blows Up Real Big..

US Attorneys General Jump On The Lieborgate Bandwagon; 900,000+ Lawsuits To Follow, And What Happens Next?  What does happen next, Zero Hedge?

The second Barclays announced its $450 million Libor settlement, it was all over - the lawyers smelled not only blood, but what may be the biggest plaintiff feeding frenzy of all time. Which is why it was only a matter of time: "State attorneys general are jumping into the widening scandal over whether banks tried to manipulate benchmark international lending rates, a move that could open a new front against the top global banks. A handful of state attorneys general said they are looking into whether they have jurisdiction over the banks, and are starting preliminary discussions to determine what kind of impact the conduct involving the Libor rate may have had in their states."


From Reuters:

"Our office is aware of the allegations around the manipulation of the Libor, and we are working with other state agencies to determine whether Massachusetts has suffered any losses as a result," a spokesman for Massachusetts Attorney General Martha Coakley said. A spokesman for Florida Attorney General Pam Bondi said his office is aware of the recent settlement reached by British bank Barclays with U.S. and UK authorities and "will look at the case to the extent that our office might have any jurisdiction in the matter."


A spokeswoman for the Massachusetts transportation authority, MassDOT, said the agency "is actively investigating its portfolio for the purpose of determining if it was underpaid on its bonds due to the brewing Libor situation," as are many other issuers of debt whose rate is governed by Libor.

Lawyers for several states have had early discussions about whether they might pool investigative resources and launch a broader, multi-state effort, but no formal consortium has been established yet, people familiar with the discussions said. New York might be expected to lead such an effort, since most of the banks' U.S. operations are based there. A spokesman for the New York attorney general declined comment on whether the issue is being looked at.
Some municipalities, including the city of Baltimore, and funds including the Frankfurt-based Metzler Investment GmbH, which manages 47 billion euros ($59 billion) in assets, have already sued more than a dozen banks, arguing they were bilked of potentially billions of dollars.

How many potential lawsuits are we talking about here? Quite a bit in fact as the FT explains:

There are at least 900,000 outstanding US home loans indexed to Libor that were originated from 2005 to 2009, the period the key lending gauge may have been rigged, investigators have said. Those mortgages carry an unpaid principal balance of $275bn, according to the Office of the Comptroller of the Currency, a bank regulator.

Also, as explained here before, not only is this a legal bonanza, but it will be a political feast for the Congressional circus to earn numerous C-SPAN brownie points.

“I think the US government should be just as aggressive in getting to the bottom of this scandal as the United Kingdom has been,” said Senator Sherrod Brown, chair of the bank regulatory subcommittee on the Senate banking committee.



“This was not isolated to London, but affected tens of millions of investors, borrowers and taxpayers in our country as well,” Mr Brown added.

What does the above mean?
1) Starting today and going forward, there will be numerous essays, "analyses" and white papers, all of which will try to estimate (some on a paid basis) the damages and impact of the Libor manipulation that took place at least in the period under discussion 2005-2009. All of these will be absolutely wrong, as nobody has any clear idea of how the cumulative impact of the Libor rate, which may have been pushed below either lower or higher depending on how it suited a given BBA-member bank, over a period of years will have impacted hundreds of trillions in partially offsetting notional securities. Therefore, while one day it may have led to impairments, another day it would benefit the end-holder of a given interest-rate sensitive product. But they will try. And the bigger the number, the better, which leads us to...


2) The lawyers will crawl out of the woodwork like worms after a torrential downpour, and will all be willing to work on contingency, telling potential clients they are owed thousands, nay, millions based on such and such analysis. All they need is to have held a mortgage, or a credit card, or any variable interest liability in the 4 years in question. And to sign the dotted line.


3) The resulting lawsuits, most of which in class action format, will be of gargantuan proportions, simply to encourage settlement, as ongoing litigation will easily destroy the financial system. The litigation reserves at the TBTF banks will explode and will cause years of EPS writedowns. But at least they will be one-time charges, so the stocks don't get crushed too much. That said, forget any growth out of the banking sector, and certainly the 16 BBA member banks, all of whom are about to be sued to smithereens in civil suits as more and more banks step up and settle to avoid criminal prosecution.


4) The biggest irony is that the torrent of upcoming suits will be in effect targeting none other than the Fed. Because while banks which all were massively levered to even a one basis point move in Libor were very sensitive to the smallest variations in 3 month USD libor, end-clients who did not have this leverage were far less impaired. But that doesn't matter: after all the same clients were impaired through gross borderline criminal negligence which is all that matters in a court of law (assuming the honorable judge John Roberts is not presiding pro hac vice). Thus the entity that will be sued by proxy is the Federal Reserve, whose Federal Funds rate is really the setter for the baseline Libor rate. Note the chart below which shows that over the past decade, the 3M USD Libor and the Fed Funds rate were virtually interchangeable: (Chart available at the link..)
 
Yet while it was the Fed's decisions at the bottom of it all, unless someone implicates the Fed or the BOE further, both will get away scott free: after all what they do is public policy, for the public good and to defend their various appointed mandates. And neither pushed banks to manipulate their rates (even if both were well aware there was gambling going on here), or so they claim, even when presented with evidence to the contrary.



What will really happen, is that the private banks, having been bailed out by the central banks at the taxpayers' dime, will now serve as a buffer to protect these same institutions from rising popular anger, not just at Lieborgate, but Robosigning, Robosettlement, CDOs, rehypothecation, High Frequency Trading, toxic assets marked-to-unicorns, the end of Mark-to-Market, ZIRP, NIRP, expert networks, insider trading, MF Global, and countless other examples of what happens when financial fraud is let loose with no fear of consequence in a Bernanke Put world.


As a result, the status quo will literally buy itself a few more years as it delays the tipping point by any means necessary, in the process kicking back a little to politicians, lawyers, and the general public in exchange for a few years of subpar earnings for bank shareholders that should have been wiped out back in 2008 anyway. And everyone will be happy.


That's how Lieborgate will play out.

I'm down with the article's overall cynicism, but I don't quite agree:  The above post is a little too rosy a prediction regarding the status quo.  This numbers, players, and their connections will ultimately be too big to be ignored or downplayed(No matter how many people become complicit), especially when paired with economic black hole that is derivatives.  How do you visualize/quantify 600 plus trillion dollars?  This is the preliminary level of the upcoming financial conflagration..

Things That Make You Go Hmmm - Such As The Transition From Conspiracy Theory To Conspiracy Fact

Here comes the LIBOR scandal!  And it's BIG.  And probably The Tipping Point for all Financials.  BIG.  From Grant Williams, author of Things That Make You Go Hmmm, via Zero Hedge:



Attempts to manipulate free markets invariably end badly - after all, they are, supposedly, by their very nature, free.


Over the past few weeks, the exposure of the Libor-rigging scandal has monopolized the headlines of the financial press and inveigled its way onto the front pages of every major news publication in the world through the sheer size and scale of the story.


Something as big as this just CAN’T be hidden from the public.


Only... it can.


It has been. It no doubt still is to a certain extent. I’m not going to go through all of the events of the past few weeks as you are no doubt familiar with them, but [simply understanding how LIBOR works makes for a simple conclusion].


I’m afraid it’s rather obvious. Given that almost half the reported inputs that help establish the Libor rate are discarded immediately, Barclays simply CANNOT have manipulated the Libor rate alone. Period.

What’s more, to effectively ensure the rate is set at the price required, you’d need to not only establish the highest and lowest 25% of prices, but then ensure the remaining 50% average out to the required rate and, based on the fact that there are 16 banks that submit rates, that would mean about 13 of the 16 involved would need to be complicit.



As a very good friend of mine put it earlier this week; at best this is a cartel, at worst it’s outright fraud on a scale that is completely unprecedented.


So for five years there have been attempts to fix the Libor rate and, take it from me, during that time, many inside the financial industry were familiar with the rumors of such manipulation but it was another huge scandal with such high powered connected interests that it would no doubt be brushed squarely under the carpet. Forget ‘too big to fail’. This was ‘too deep to prove’.


Libor is so important to so many people in the financial industry that the question of why it was manipulated really ought to be framed differently:

Assuming you COULD manipulate something as important and potentially beneficial as the Libor rate with such ease for years, why wouldn’t you?

The answer to this question would ordinarily be:

"Because it’s illegal and government regulators would throw the book at us"

So, working from the ground up; we have a set of traders looking to produce the best profits they can for personal gain, the major bank they work for and who should be supervising them with a need to disguise the level of its own funding costs and above them all, a government seeking to keep borrowing costs down in the middle of a gigantic financial storm. From such alignments of interest are the greatest of conspiracies born.



In my humble opinion, the Libor scandal (which has a LONG way to go before it has played out and which will claim a LOT more scalps) will mark a fundamental change in the treatment of financial conspiracy theories in the media. The sheer amount of coverage it will undoubtedly receive will signal a shift in attitude towards the exposing of such scandals rather than the blind-eyes that have been regularly turned in recent years.
But perhaps, most-of-all, watching how quickly those in high places begin to throw each other under the bus, it will hasten the end of many other possible government conspiracies as exposing such events becomes an exercise in self-preservation. Prime amongst conspiracy theories that may soon be finally proven to be either valid or the figments of overactive imaginations, are those alleged in the gold and silver markets.


The allegations concerning precious metal price manipulation predate those surrounding Libor by decades but until now day they have remained similarly acknowledged within financial circles and ignored without. That may well be about to change.

Unencumbered by liability, the rising price of gold has always been a barometer of governmental failure to protect the purchasing power of fiat currency and the best indication of the damage that inflation does.Forget inexorably rising gold prices. Forget the corrections that shake loose hands from the wheel at every turn. In the broader context they carry far less relevance than the intrinsic values that gold provides a consistent yardstick to.
A look at the value of assets measured in ounces of gold remains the most consistent way to get a sense of their real value and the charts below demonstrate all too clearly the true performance of the Dow Jones Industrial Average and average US house prices over the long term when measured in gold ounces.
 

If the long-stated claims about government-sanctioned, bank-led manipulation of precious metals markets put forward so eloquently by the likes of Ted Butler, Bill Murphy & Chris Powell at GATA as well as Messrs. Sprott, Sinclair, Davies et al are eventually proven to have any validity whatsoever, the fallout from the Libor scandal will prove to be (to use the words of Jamie Dimon) just another “tempest in a tea pot” as the precious metals are the very underpinnings of the entire global financial system. Conspiracy or no, it would be a blessed relief to get closure no matter what the truth turns out to be.




Oh Snap. Are we really here? If 13 of 16 banks are complicit, how much further statistically is 16 of 16? The answer?  Not far at all.  How crazy will the public response be when this finally goes mainstream? Financial Pandora's Box blowing open in 3.. 2..

Lastly;  Lest anyone forget, people have been talking about the derivatives collapse for quite some time now.  Also:  While this might not be the first time Barclays got caught shit handed, it might be the last.. 

BoE's Tucker Preparing To Self-Immolate... And Take Others Down

Oh shit!  I think the dominoes already started falling!  We could be watching a HUGE scandal accompanying total global financial collapse.  But really, when you think of it, why wouldn't there be a HUGE scandal accompanying said global financial collapse?  Zero Hedge:

Paul Tucker, the Bank of England executive at the center of the Barclays/Diamond trigger-conversation, has issued a statement requesting a Treasury hearing to show his "keenness to clarify the position with regard to the events" of that hanging chad of a phone-call. What is most troublesome (for every major banker and politician) is his apparent willingness to take more down with him. As the M.A.D. escalates, MNI reports that minutes from 2007 show Tucker (who was/is in line as we noted yesterday for the top-job once King leaves next year) was fully aware from the early days of the financial crisis that market participants believed Libor was rigged. The Group’s November 2007 minutes, from a Tucker-chaired meeting, state “Several group members thought that Libor fixings had been lower than actual traded interbank rates through the period of stress.” The minutes show that not only was the issue raised back in November 2007 but that the BOE went to great lengths as the crisis deepened the following year to keep its finger on the money markets’ pulse. It seems that instead of mounting the 'plead-da-fif' defense Tucker is coming all-guns-blazing and is willing to drag more names into this miasma as a suicide-bomb of a hearing where the truth is realized could well bring every high ranking banking official to admit the continued unreality of Libor rates.



If this scandal blows up this week, financial news network viewers will see some epic freakouts:  Some meltdowns will be from guests, others will be from on-air personalities.   Maybe not, though.  This might not be the actual chaos trigger.  That might happen a few weeks or months still down the road.  But whenever it does, when LIBOR and Derivatives actually collapse, you will know.  You won't help but know!

Forget the PIIGS, the EU as a Whole is Insolvent

Impending Systemic Collapse has an ominous ring to it.  Zero Hedge has the bad news..  Excerpts:

Europe is heading into a full-scale disaster.
You see, the debt problems in Europe are not simply related to Greece. They are SYSTEMIC. The below chart shows the official Debt to GDP ratios for the major players in Europe.


As you can see, even the more “solvent” countries like Germany and France are sporting Debt to GDP ratios of 75% and 84% respectively.



These numbers, while bad, don’t account for unfunded liabilities. And Europe is nothing if not steeped in unfunded liabilities.


Let’s consider Germany. According to Axel Weber, the head of Germany’s Central Bank, Germany is in fact sitting on a REAL Debt to GDP ratio of over 200%. This is Germany… with unfunded liabilities equal to over TWO times its current GDP.
To put the insanity of this into perspective, Weber’s claim is akin to Ben Bernanke going on national TV and saying that the US actually owes more than $30 trillion and that the debt ceiling is in fact a joke.
What’s truly frightening about this is that Weber is most likely being conservative here. Jagadeesh Gokhale of the Cato Institute published a paper for EuroStat in 2009 claiming Germany’s unfunded liabilities are in fact closer to 418%.

And of course, Germany has yet to recapitalize its banks.


Indeed, by the German Institute for Economic Research’s OWN admission, German banks need 147 billion Euros’ worth of new capital.

To put this number into perspective TOTAL EQUITY at the top three banks in Germany is less than 100 billion Euros.

And this is GERMANY we’re talking about: the supposed rock-solid balance sheet of Europe. How bad do you think the other, less fiscally conservative EU members are?
Think BAD. As in systemic collapse bad.

Tickticktick..

Greece Has A Government Now, So Everything's All Right, Right?

Starving Greeks queue for food in their thousands as debt-wracked country finally forms a coalition government... but how long will it last?  Samaras will be hurtling into a massive political shitstorm, no matter what he tries or ultimately does.  No action will please a majority of Greeks.  And there already quite a few who are super pissed off and riot-y.  There will be no honeymoon period.    Congratulations again, Mr. Prime Minister, on your "victory."  Daily Mail.  Excerpts:

Starving Greeks queued around the block for free food handouts yesterday as the country's politicians managed to end a crippling stalemate to form a coalition government.

Young children as well as the elderly waited in line in Athens to collect the parcels of fruit and vegetables donated by farmers from Crete to help ease the devastating austerity faced by many Greeks.
But as hungry people collected food, a few miles away a new conservative-led alliance was formed, vowing to renegotiate the country's strict European bailout in a bid to breath economic life back into the debt-stricken country. 

Don't forget, Merkel has already stated she Will Not Re-Negotiate any terms of Greece's bailout.  It's all theater on Samaras' part;  Greece's harsh realization in three..  Two..

Conservative Antonis Samaras was sworn in as prime minister and head of a three-party coalition that will uphold the country's international bailout commitments.

In the hot seat: New Prime Minister Antonis Samaras vowed to rescue Greece's economy as he spoke for the first time after being sworn in to office at the presidential palace


The move ends a protracted political crisis that had cast grave doubt over the country's future in Europe's joint currency and threatened to plunge Europe deeper into a financial crisis with global repercussions.
Samaras, an American-educated 61-year-old economist, was sworn in three days after his party won the second national elections in six weeks but without enough votes to form a government on its own.


His New Democracy party will join forces with the socialist PASOK party, which came in third place, and the smaller Democratic Left led by Fotis Kouvelis.
Discussions on the lineup of ministers were expected to be completed by Wednesday night.
‘I will ask the new government that will be formed tomorrow to work hard so that we can offer tangible hope to our people,’ Samaras told reporters as he left the presidential mansion.
Greek stocks rose marginally in response to the news, with Athens shares closing up 0.5 percent, limiting earlier gains.
The new prime minister was to meet with outgoing Finance Minister Giorgos Zanias, PASOK head Evangelos Venizelos and Kouvelis on Wednesday evening.
All three parties broadly back Greece's pledges to bailout creditors for further austerity and reforms, although they have pledged to renegotiate some of the terms for the rescue loans.

Again, Merkel and the rest of Germany will not budge.  The Greeks will only bring back bad news.  How long will this coalition last? 

Europe’s train-wreck and the inevitable collapse of the global economy

Dark, yes;  But Doomy?  Yes, well; That too..  The Economic Collapse, via The Extinction Protocol.  First and last paragraphs:

June 20, 2012 – ECONOMY – Yes, it is officially time to start freaking out about the global economy. The European financial system is falling apart and it is going to go down hard. If Europe was going to be saved, it would have happened by now. The big money insiders have already pulled their funds from vulnerable positions and they are ready to ride the coming chaos out. Over the next few months, the slow motion train-wrecks currently unfolding in Europe will continue to play out and things will likely really start really heating up in the fall, once summer vacations are over.
And:  Restated for effect.. 
 German Chancellor Angela Merkel has declared that Germany will not budge at all on the terms of the Greek bailout. If you are looking for some kind of a global financial miracle; you can stop watching. If European leaders had a master plan to save Europe, they would have shown it by now. The entire house of cards is starting to come down and things are going to get really messy.  A lot of people both in the United States and in Europe are going to lose their jobs and their homes over the next few years. It is likely that the next recession will be even more painful than the last one was.

Our global financial inter-connected-ness will come as a big shock to many people.  Also shocking will be the lack of preventative monetary firewalls that could have averted this looming crisis.

Hey!  You live; You learn!; You know?

Election Day! All Eyes On Greece, Please..

Greece's economic fate hangs in the balance, and will be decided shortly.  A sampling of the calm before the potential beginning of the Global Financial Super Storm..  Selections from Der Spiegel(via The Extinction Protocol) and Zero Hedge.  Excerpts: 


Greeks empty bank accounts ahead of historic election (Der Spiegel)



Many Greeks are emptying their bank accounts out of fear that the country may return to the drachma. But most of the money is not going abroad. Instead, individuals are storing cash in safe deposit boxes or at home — leading to an increase in burglaries. Joanna Stavropoulos is not proud of what she has done. “I had a guilty conscience when I withdrew my money from Greece,” says the 43-year-old. Of course she knew what would happen if everybody does the same: Greece’s banks would be threatened with collapse. But she says she had to think of her two-month-old daughter, Josephina, who is currently asleep on Joanna’s shoulder. Increasing numbers of Greeks are following Joanna Stavropoulos’ example and emptying their accounts. They are afraid that Greece may leave the euro zone and return to the drachma. Stavropoulos is one of the few people who know very well what this scenario would look like in concrete terms. As a journalist and NGO worker, she has traveled all over the world, most recently in Haiti and Iraq. “I have been to countries where banks closed,” she says. She was in Argentina, for example, when the government declared a national default. She has also lived in Zimbabwe, where three-digit inflation destroyed the currency. Joanna is sure that Greece could face the same thing if it returns to the drachma. “My country is going downhill,” she says. There is still little sign of panic in Greece, and there has not been a stampede to the banks. Nevertheless, people are withdrawing hundreds of millions of euros from the banks every day. In May alone, outflows totaled €5 billion. According to official figures, €80 billion has been withdrawn since the start of the crisis. Rich Greeks have long been moving billions to countries such as Italy or Switzerland, or buying luxury properties in London. But overall, according to estimates by the Greek central bank, only about one-fifth of the total money withdrawn has gone abroad. Many customers have left their money in the bank itself, Christiana says — but in a safe deposit box rather than in their accounts.
 
As Greek Banks Run Out Of Safe Deposit Boxes, An Eerie Calm Takes Over The Country 24 Hours Before D-Day (Zero Hedge.)
 
Oddly enough, despite the all too real dangers of a complete lock out by and of the local banks, Greeks refuse to believe that the worst case scenario could realistically happen:

There is still little sign of panic in Greece, and there has not been a stampede to the banks. Nevertheless, people are withdrawing hundreds of millions of euros from the banks every day. In May alone, outflows totaled €5 billion. According to official figures, €80 billion has been withdrawn since the start of the crisis.  

Which however is not to say that most people have not already commenced preparations:

Christiana (not her real name) can see the capital flight every day with her own eyes. The 46-year-old, who wishes to remain anonymous, works as an asset manager at a large Greek bank. "It's not just that it is increasing," she says of the withdrawals. It's not only major customers who have been taking out money in recent months, she explains, but all kinds of clients, from account holders with a few hundred euros to the bank's most important private customers. "Naturally, the wealthy ask particularly often what they should do with their money," she says.

Yet the most ironic moment in the Greek denouement will come when fractional reserve lending collapses onto itself:

Stavropoulos and her friends have a new strategy to deal with their daily expenses. "We charge everything to our credit cards," she says. If the Greek banks fail, they won't be able to collect the outstanding debts, she argues. "If they want to mess me around, I will do the same to them."

In other words, Greece is now America, where the vast majority of people also live on credit alone, and have taken up the following motto when dealing with banks: "you pretend to be solvent, we pretend to have money."


At the end of the day, it is all just one big global monetary circle jerk, only this time in reverse, as the snake of fractional reserve banking has finally started to eat its own tail. With people spending money they don't have, and in debt to their eyeballs to a banking system that itself is just as insolvent, is there any wonder that nobody really panics any more over daily threats the grand reset is finally coming?


But in the end, it probably won't even matter..


Citi's Buiter: Greece will be forced out of the euro regardless of who wins the Sunday elections.  (Zero Hedge)



New Democracy. Syriza. Doesn't matter. According to Citi's senior political analyst Tina Fordham, chief economist Willem Buiter, and global economist Ebrahim Rahbari, "any new Greek government, regardless of its composition, will struggle with implementation challenges related to the imposition of further austerity measures demanded by the Troika in exchange for further assistance," and as a result, they "consider it likely that a new troika deal would ultimately fall apart and lead to Grexit."



Citi notes that there is growing sense among European leaders that "promotion of economic growth can no longer be subordinated completely, even in fiscally unsustainable euro area member states, to the requirements of fiscal austerity," but no one has any idea what that means.


We will find out soon.  Riots will probably be forthcoming.  Cue Riot Dog, stage left..

Could Germany Implode From The Eurozone Crisis?

I'll say it again:  Germany's economy is in a bit more trouble than anyone will publicly admit.  Quite a bit.  German industrial output drops more than expected  US News And World Report.  Excerpts:

Industrial production in Germany dropped by an unexpectedly sharp 2.2 percent in April compared with the previous month, official data showed Wednesday, sending a downbeat signal about the economy's ability to shrug aside the eurozone debt crisis.


The decline was led by a 3.6 decrease in production of capital goods such as factory machinery and a 3.7 percent fall in production of consumer goods, the Economy Ministry said.

The drop followed a 2.2 percent month-on-month gain in March — a figure that was revised sharply downward from the initial reading of 2.8 percent

The Economy Ministry said that industrial production remains "very robust." It said one factor in the decline was the fact that April 30, the day before the May Day holiday, fell on a Monday — meaning that many people took the extra day off.


Carsten Brzeski, an economist at ING in Brussels, took a less rosy view.

"The German economy's immunity against the eurozone sovereign debt crisis is clearly fading away," he said, pointing also to shrinking order books and a recent drop in business confidence.

"Even if it will not fall, the eurozone's last stronghold is faltering," Brzeski added. "For the time being, it is a stabilization at a high level. However, latest data clearly indicate that Germany is not an economic island."

Economic attention will refocus to Spain, Greece, and Italy, but I bet there's been a 1000 percent increase in heated, secret meetings happening all over Corporate and Financial Germany right now..  They know they're in trouble, and I'm sure some of them know just how much trouble that is. 

Spain's calling for money Saturday.  What will Germany ask for in return?  Do they really think they'll see that money again?

Iceland Forgives Mortgage Debt for the Population. Putting Bankers and Politicians on "Bench of Accused"

Short, Spanish language video(subtitled) courtesy Sherrie Questioning All.  At least one coutry in the entire world seems to have pulled its head out of its collective ass.  Power to the Icelandic People!  Boo-Yaa!  Bring it-Bring it!  Boo-Yaa!


Ladies and gentlemen:  Bjork.

Moody's Downgrades Italy, Spain, Portugal And Others; Puts UK, France On Outlook Negative - Full Statement

Uh-oh.  All of Europe's gonna get Greece-d.  Zero Hedge's Tyler Durden has the details.  Excerpts:

As anticipated in November 2011, Moody's Investors Service has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries' own specific challenges.
Moody's actions can be summarised as follows:

- Austria: outlook on Aaa rating changed to negative
- France: outlook on Aaa rating changed to negative
- Italy: downgraded to A3 from A2, negative outlook
- Malta: downgraded to A3 from A2, negative outlook
- Portugal: downgraded to Ba3 from Ba2, negative outlook
- Slovakia: downgraded to A2 from A1, negative outlook
- Slovenia: downgraded to A2 from A1, negative outlook
- Spain: downgraded to A3 from A1, negative outlook
- United Kingdom: outlook on Aaa rating changed to negative
..
The main drivers of today's actions are:



*The uncertainty over (i) the euro area's prospects for institutional reform of its fiscal and economic framework and (ii) the resources that will be made available to deal with the crisis.


*Europe's increasingly weak macroeconomic prospects, which threaten the implementation of domestic austerity programmes and the structural reforms that are needed to promote competitiveness.


*The impact that Moody's believes these factors will continue to have on market confidence, which is likely to remain fragile, with a high potential for further shocks to funding conditions for stressed sovereigns and banks.


To a varying degree, these factors are constraining the creditworthiness of all European sovereigns and exacerbating the susceptibility of a number of sovereigns to particular financial and macroeconomic exposures.


When everything collapses, don't forget to yell "Jenga!!"  And, as always, don't forget to stock up on canned goods and bottled water!  Happy Valentine's Day, yo!

December, 2011 Browser Clean Up

Two from Zero Hedge:

It's Official: US Debt-To-GDP Passes 100%  Excerpts:

With precisely one year left for the world and all of its inhabitants, at least according to the Mayans, not to mention on the day of the Winter Solstice, it is only fitting that US debt, net of all settlements for all already completed bond auctions, is now at precisely $15,182,756,264,288.80. Why is this relevant? Because the latest annualized US GDP, according to the BEA, was $15,180,900,000.00. Which means that, as of today, total US debt to GDP is 100.012%. Congratulations America: you are now in the triple digit "debt to GDP" club!

Mark Faber: "I Am Convinced The Whole Derivatives Market Will Cease To Exist And Will Go To Zero"  Excerpts:

"I am convinced the whole derivatives market will cease to exit. Will become zero. And when it happens I don't know: you can postpone the problems with monetary measures for a long time but you can't solve them... Greece should have defaulted - it would have sent a message that not all derivatives are equal because it depends on the counterparty." And on the long-term future: "I am ultra bearish. I think most people will be lucky if they still have 50% of their money in 5 years time.."

Bárðarbunga: more seismic unrest at another one of Iceland’s large volcanoes  The Extinction Protocol.  Excerpts:

During the night there was an small earthquake swarm in Bárðarbunga volcano. The largest earthquake in this earthquake swarm was ML 3.04 in magnitude. It had the depth of 8.5 km. This might have been a dike intrusion. But it is hard to know that for sure at the moment. This earthquake swarm only lasted for an about 2 to 3 hours before it stopped.

..There are signs that magma is rising at great depth underneath the Bardarbunga volcanic centre.

Historic! HIV Vaccine Approved for Human Clinical Trials  Unicorn Booty.  Excerpts:

The vaccine, developed by researchers at the University of Western Ontario, has been approved by the U.S. Food and Drug Administration to start being tested in humans in January.



It is the first preventive HIV vaccine approved for clinical trials to use a whole HIV-1 virus, which has been both killed and genetically engineered, to activate immunity. In this way, the new vaccine is much like the killed whole virus vaccines that are successful against polio, rabies and influenza.

Gingrich: I’ll ‘ignore’ any Supreme Court ruling I disagree with  What a wonderful "democratic thinker!"  Idiot.  The Raw Story.  Excerpts:

Republican presidential candidate Newt Gingrich is doubling down from Thursday’s Fox News debate on his vow to abolish federal courts if he disagreed with their decision.



According to The Hill, in a conference call with reporters, Gingrich indicated that it was in the president’s power as commander-in-chief to deem any Supreme Court ruling irrelevant if he or she in the White House disagreed.


The former House Speaker used the Supreme Court’s ruling against the Bush administration exceeding its constitutional authority in handling suspected terrorist detainees at Guantanamo Bay in 2008 as a basis for his extreme view.
 
“They just ignored it,” he said. “A commander-in-chief could simply issue instructions to ignore it, and say it’s null and void and I do not accept it because it infringes on my duties as commander-in-chief to protect the country.”
 
I love that Romney and Ron Paul are beating the shit out of this douchebag with negative, but all too true attack ads.  I've been waiting a loooong time to see Herr Gingrich(pronounced "Gin-greck") drown in the political cesspool of his own creation!  Merry Christmas to all!
 
“The FBI Estimates That 80 Percent Of All Mortgage Fraud Involves Collaboration Or Collusion By Industry Insiders”  Washington's Blog.  Excerpts:
 
Fraud By The Big Banks – More Than Anything Done By The Little Guy – Caused The Financial Crisis



The U.S. Treasury’s Office of Thrift Supervision noted last year (page 7):


The FBI estimates that 80 percent of all mortgage fraud involves collaboration
or collusion by industry insiders.


This confirms what one of the country’s top fraud experts has said for years: that it was fraud by the big banks – more than anything done by the little guy – which caused the financial crisis:

Breaking News: Programmer of Fukushima confesses “Fukushima had a cyber attack”  Under-reported, huh?  Fukushima Diary.  Excerpts:

A computer engineer found out operating system of Fukushima plants have been attacked and those attacks were mostly from / via Russia.　This engineer is counted as one of the members of Fukushima 50.
..
Because the system was shut down after black out they could not operate the systems to control the pressure, water injecting, radiation shield etc. and that had to be done by him.



He managed to reboot the system and restart it in manual mode but he encountered series of troubles such as password entry screen did not come out or his password entering was disturbed by compute bug. He sorted it out by formatting the system but it was obvious that someone sent virus to the system.


He tried to send virus backward and it reached to Russia. Someone sent virus from or via Russia.

Every crazy CIA plot you’ve heard of originated with one man  IO9.  Excerpts:

There are stories that have come to light, over the years, that make the Central Intelligence Agency look like a collection of Looney Tunes shorts. The violence, the slapstick, and the over-the-top ridiculousness of the experiments that have been conducted over the years boggle the mind. They came from the (slightly-boggled) mind of one man: Sidney Gottlieb.

Medical Marijuana Laws Shown to Reduce Traffic Fatalities  Popular Science.  I've said it before, and I'll say it again:  Marijuana;  Is there anything it can't do?  Excerpts:

..A new study out of University of Colorado Denver and Montana State University shows that legalizing medical marijuana sales in various states over the past two decades has led to a nearly 10 percent drop in traffic fatalities. What the study really shows--by way of causal chain--is a five percent drop in beer sales, and that has in turn led to fewer fatalities on the road. Put that in your pipe and smoke it (couldn’t resist just one).

Happy holidays, and enjoy this randomly sampled information!