Category: Eurozone Debt Crisis
The analysis published under this category are as follows.
Thursday, February 16, 2012
Financial Oligarch Power Raping Greece / Politics / Eurozone Debt Crisis
By: Stephen_Lendman
On February 12, Greece's banker controlled parliament passed sweeping austerity measures on top of multiple previous rounds.
New ones include:
sacking 15,000 public workers in 2012 and 150,000 by 2015;
slashing private sector wages by 20%;
lowering monthly minimum wages from 750 to 600 euros;
cutting fast disappearing monthly unemployment benefits from 460 to 360 euros; and
reducing pensions many Greeks need to survive by 15%.
Thursday, February 16, 2012
Greece From Despair to Resistance: Test Site for Neoliberal Social Engineering / Politics / Eurozone Debt Crisis
By: Global_Research
Panagiotis Sotiris writes: On Sunday 12 February 2012 the people of Greece, in demonstrations and street fights all over the country expressed in a massive, collective and heroic way their anger against the terms of the new loan agreement dictated by the EU-ECB-IMF ‘troika’ (European Union, European Central Bank, International Monetary Fund). Workers, youth, students filled the streets with rage, defying the extreme aggression by police forces, setting another example of struggle and solidarity.
Saturday, February 04, 2012
The Euro Zone and the Crisis of Sovereign Debt / Interest-Rates / Eurozone Debt Crisis
By: Bob_Chapman
The creation of the euro zone may have given participants one currency, but it created other problems as well. One interest rate was supposed to fit all. Those sovereigns on the financial periphery of the 17 nations found low interest rates too good to be true. As a result, the borrowed funds they shouldn’t have borrowed to finance current debt, was thrown off by the economy. During the 1990s we wrote that one interest rate for all would destroy the euro, but as usual no one wanted to listen. The reason was simple, each nation was and is at a different stage of development and a nation paying 2% rates could now borrow at 4%, which is a giant difference. As debt grew the credit crisis occurred and the rules changed externally. As rates rose sovereigns got into more and more trouble.
Thursday, February 02, 2012
German Central Bailing Out Europe / Politics / Eurozone Debt Crisis
By: Mike_Shedlock
Both Angela Merkel andthe Bundesbank are walking an extremely fine line of economic policies and treaty arrangements that appear to be in violation of policy statements made by the German Supreme Court regarding transfer unions. Moreover, the Bundesbank president is now in what amounts to an open Feud with Merkel.Read full article... Read full article...
Thursday, February 02, 2012
In the Wake of Davos: "Strong Economic Medicine" for the European Union / Politics / Eurozone Debt Crisis
By: Bob_Chapman
On Friday from the Bilderberg conclave at Davos, appointed European Central Bank President, Mario Draghi proclaimed that Europe had averted financial disaster and cited the improvement in euro zone markets in recent weeks. He said it was the ECB’s duty to guard against deflation as well as inflation. The fact of the matter is that he and his friends at the Fed arranged a currency swap of $1 trillion of which the ECB dispersed $660 billion to 523 EU banks, at 1% interest for three years. He also cut interest rates twice and extended loans for 1 to 3 years. Mr. Draghi could be expected to take the easy Anglo-American way out. He is fully Illuminati trained and that is where his orders emanate from.
Wednesday, February 01, 2012
Greece Prime Minister Calls "Crisis Meeting" Attacks E.U. / Politics / Eurozone Debt Crisis
By: Mike_Shedlock
Things are going so well in Greece (just one step away from a deal for weeks on end), that Greek officials attack EU and IMF as debt talks stall
Read full article... Read full article...Greek officials launched a vociferous behind the scenes attack on European Union and International Monetary Fund negotiators as talks in Athens over the country's mounting debts appeared to stall.
Tuesday, January 31, 2012
Germany's Role in Europe and the European Debt Crisis / Politics / Eurozone Debt Crisis
By: STRATFOR
The German government proposed last week that a European commissioner be appointed to supplant the Greek government. While phrasing the German proposal this way might seem extreme, it is not unreasonable. Under the German proposal, this commissioner would hold power over the Greek national budget and taxation. Since the European Central Bank already controls the Greek currency, the euro, this would effectively transfer control of the Greek government to the European Union, since whoever controls a country's government expenditures, tax rates and monetary policy effectively controls that country. The German proposal therefore would suspend Greek sovereignty and the democratic process as the price of financial aid to Greece.
Tuesday, January 31, 2012
The European Commission Has Broken The Social Contract / Politics / Eurozone Debt Crisis
By: Christopher_Quigley
The European Commission, in its Support for the ECB, has broken the
"Social Contract" and therefore has lost the moral right to rule.
Jean-Jacques Rousseau
"The Social Contract"
Thursday, January 26, 2012
Merkel Casts Doubt on Saving Greece, ECB insists on Profits on Greek Bonds / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
Amazingly, smack in the midst of deal to save Greece from bankruptcy, the ECB not only insists on taking no losses on Greek bonds its holds, it wants a profit on them because it bought them at what seemed at the time to be a substantial discount. The discount was imaginary. The bonds were trading at 7% at the time.
Wednesday, January 25, 2012
The Demise of State Sovereignty: Pressures on the Euro Amidst Rising Debt Levels / Interest-Rates / Eurozone Debt Crisis
By: Bob_Chapman
We announced our belief a few weeks ago that the Fed loan to the ECB could with fractional banking be $10 trillion. This past week we found that Credit Suisse shares our ideas as well. We believe that what this move by the Fed and the ECB is telling us that this is probably it. We also ask again how can the banks in the LTRP repay the funds in a timely manner? No plan has been presented before or since, there is no plan. Again, just throw money at the problem. The only player really capable of saving Europe is Germany and they would destroy themselves in the process. Everyone should have seen this coming but no one did except a handful of insiders. The resultant use of funds since the ECB distribution is hardly even mentioned in the media. It is a big dark secret.
Wednesday, January 25, 2012
Super Mario Draghi and the ECB Debt Crisis Impact on Gold and Stocks / Stock-Markets / Eurozone Debt Crisis
By: HRA_Advisory
We are extremely comfortable that our prognosticating for 2012 may or may not work out. Which puts us in the same camp as most others. That said, a contrarian turn ahead of possible normalizing of the debt issues still with us that we suggested in December does seem to be gaining ground in the market. With that should come a greater focus on basic technical indicators like metal stockpile changes. We note small copper stocks on page 4, but will point out here these are focused by direction over weeks. Don’t get hung up on day to day changes. Both bull and bear issues in this market are really year to year, which means looking for value and for sustainability.
Wednesday, January 25, 2012
The EU Gives a Lesson in How Not to Restructure Sovereign Debt / Interest-Rates / Eurozone Debt Crisis
By: David_Urban
Debt yields appear to be coming off with the exception of Greece, where the EU is now attempting to strong arm creditors once again with respect to the interest rate on the New Greek debt.
What the EU failed to realize is in that their rush to rescue the banking sector and bail out Greece they have created a bifurcated market in European sovereign debt. The Greek bailout will only apply to private holders of Greek debt, excluding pension funds, the EU and IMF from the bailout.
Tuesday, January 24, 2012
Greek Private Bondholders Reject Greece 'Haircut' Debt Default Deal / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
Reuters reports Euro zone ministers reject private bondholders' Greece offer
Read full article... Read full article...Euro zone finance ministers Monday rejected as insufficient an offer made by private bondholders to help restructure Greece's debts, sending negotiators back to the drawing board and raising the threat of Greek default.
Monday, January 23, 2012
Debt End Game, Europe Staring into the Abyss, and Very Negative Unintended Consequences / Economics / Eurozone Debt Crisis
By: John_Mauldin
Europe's leaders are committed to keeping both the euro and the eurozone as it is. But for it to do so, everything must change, as the wonderful quote from the 1958 Italian novel suggests. This is no easy task, as no one wants a change that will impact them negatively; and there is no change that will allow things to stay the same that does not impact all severely, as we will see. In the third part of a continuing series, we look at the actual options that are available on the menu of choices, or as one group called it, the menu of pain. I offer some guideposts that we should watch for along the way, and end by offering a suggestion as to what Europe should do. As has been the case in this series, I do my best to offend everyone at some point. If by some small, unintended oversight I do not, then wait another week, I will get to you. What else are friends for?
Friday, January 20, 2012
Eurozone Debt Crisis, The Reality of the European Downgrades / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
Jack Barnes writes:
It turned out to be a ruinous Friday the 13th for Europe last week.
After the close, Standard & Poor's downgraded nine of the sovereign states in the European Union (EU).
That included dropping Austria and France to AA+ status from their formerly lofty AAA rating.
Read full article... Read full article...
Sunday, January 15, 2012
To Solve Europe's Debt Crisis You Must Solve Three Problems, Else its the End of Europe / Interest-Rates / Eurozone Debt Crisis
By: John_Mauldin
One of the interesting things about being in Hong Kong is that I get to see the weekend edition of the Financial Times 12 hours early. And the headlines were not all that pleasant. As I promised last week, we will cast our eyes to Europe and ponder what is in store for Europe for the year and the next five years. And what do we read on page 2? The "ECB raps revisions to draft a fiscal pact." Seems they feel there are too many loopholes, which will make the document meaningless … somewhat like the treaty they have now. And we further learn that "Greek default threat grows as talks falter." Seems there is a lack of agreement on how much of a haircut the investors ought to take, and the Greeks don't want to guarantee any future debt, just in case they need to default some more in the future. But they do want the €15 billion they need to keep the debt machine running for a few more months.
Saturday, January 14, 2012
Credit Ratings Downgraded France Regrets Abusing Britain as it May Beg for UK Bailout Cash / Interest-Rates / Eurozone Debt Crisis
By: Nadeem_Walayat
Nine Euro-zone countries have been downgraded by U.S. credit ratings agency S&P, most of whom to junk status with the biggest hit to the Eurozone being the downgrade of France from AAA to AA which has resulted in a political storm in France as President Sarkozy's hopes of being re-elected in April 2012 have now gone up in smoke.
Saturday, January 14, 2012
Wall Street’s Ratings Agencies Undermine Europe’s Attempt at Economic Recovery Acting Like Financial Terrorists / Politics / Eurozone Debt Crisis
By: Danny_Schechter
We live in an increasingly degraded country. Our politics are degraded and a laughing stock to the word. Our military is demoralized and degraded with soldiers urinating on dead civilians and awaiting deployment orders for the next illegal intervention.
Our education system has been degraded with standards falling and pervasive defunding. Our transportation system, ditto.
Read full article... Read full article...
Saturday, January 14, 2012
Burning Eurozone, All is Quiet on the Eastern Front? / Politics / Eurozone Debt Crisis
By: Andy_Sutton
2011 had been touted as the year that everything would change. Massive paradigm shifts would rock our world and many a prophecy was made regarding financial crises, currency crises, wars, rumors of wars, and there was even one fellow who said the world itself would end, although he later retracted his predictions, but not before his followers had spent their life savings putting up billboards. Such hysteria is certainly the hallmark of times such as these, but we have to keep in mind that just because some of the predicted events didn’t happen yet, we’re a long, long way from being out of the woods. There is an old saying that if you do what you’ve always done; you’re going to get what you’ve always gotten. If we continue to sow the seeds of false fixes and faulty economics, we’re going to continue to reap financial and economic crisis. It really is that simple.
Friday, January 13, 2012
ECB's Draghi Frames Debt Crisis Issues / Interest-Rates / Eurozone Debt Crisis
By: Axel_Merk
ECB President Mario Draghi continued to impress with his very direct style during the European Central Bank's (ECB) first press conference of the year. While not lowering interest rates or announcing further easing measures, he made it clear that the ECB is "ready to act" should the environment deteriorate. Our takeaways:
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