...this was an action preliminary to (1) Angela Merkel's December 2 speech to the German parliament, which is preliminary to (2) the next Eurozone summit, scheduled for the weekend of December 9, which is preliminary to (3) a coordinated violation of the two treaties that created the European Union, which is hoped will (4) pressure the European Central Bank to buy newly created Eurobonds issued illegally by the EU, in order to (5) raise enough euros fast enough to buy Italian government bonds before (6) the Italian government misses interest payments, which may (7) bankrupt the largest French banks, which could (8) trigger a worldwide financial panic.
In short, Bernanke and his peers are in a pre-panic panic.
Friday, December 2, 2011
The Best Explanation on Why Central Banks Announced Coordinated Swap Programs
Comes from Gary North:
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Could this be the opportunity China has been waiting for to allow their currency to appreciate? If the euro collapses, or severely loses credibility and value and, with the USD not far behind, it may behoove the Chinese to allow their currency to appreciate. Very quickly they shift from being a producer society to a consumer society. They "save" Europe by buying up a large portion of their assets with their newly strengthened currency (especially versus newly weakened euro/whatever currency the euro-zone members are in at that point). They could do the same in the US, purchasing not only assets but also US and European debt.
ReplyDeleteAnyone think this is feasible/desirable for the CCP? Maybe the US anticipated something like this, thus the reason for the 2,500 marines in Australia...hmmm...lol cheers.
They want to inflate the debts away in the euro borg collective....This buys them time.
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