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July 23, 2016

The Warmth Of Other Suns

Filed under: European Union — baseball91 @ 6:30 PM
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As Chancellor Angela Merkel sought to reassure Germans that the state will keep them safe, she pledged all resources to get to the bottom of the rampage in Munich.

The chancellor spoke after police ruled out any terrorist motive. After the million refugees arrived last year, with the uncounted new ones still coming.

After being briefed. The chancellor spoke. But who briefed whom? Over the narrative?


“We will find what exactly was behind this act,” Merkel told reporters … in the Chancellery in Berlin.

Did this sound a lot like Turkey, last week …or Cologne in the first few days of 2016? Or had Angela Merkel just borrowed a line from Donald Trump’s acceptance speech?

Brexit! Who wanted to be a part of this kind of political correctness? The media could not hide this public crime in Munich like what went unreported for 20 hours in my city this week. LINK:

Is there censorship all over the Western world because of the political sensitivity, of the influx of refugees? Because of the political sensitivity, of the matter of creed, comparable to the political sensitivity, on matters of race especially north of the Mason-Dixon line in the United State? As the victors keep re-writing history, on issues like the Confederate flag as if the Old South never existed? So the victors could ignore matters of race, like Angela Merkel would ignore matters of creed, in a nation with their invisible old goal to wipe out Judaism?

Belonging. Study the theology associated with The European Union, with European fear of outside Spirit. Brexit. Forced out. Like religion mostly has been in Europe for the past forty years. Brexit. The Leaving of this Europe without borders, with their rules to have sovereignty over you, from this desire for free movement, unconnected to any Spirit. On the Continent anyway. And you must accept your share of refugees.

In this conflict of public life with private lives, hear The Promise. “The state will keep you safe.” This is the Old German Promise, though how many sons and daughters of Turks had never yet been given citizenship in Germany? Would the next generation ever believe The Promise.

The Old German Promise would never happen again … here. And with so many newspapers bankrupt, if not just shut down, where could the young go to know? When the local paper did not have enough reporters to cover a story. And did this sound like what happened to religion in Europe over time? If the young even READ the paper, when this generation just like to hear?

In the mix of Identity – a sacrificed identity connected to this LAND – who really knows and believe …. the police? With our history changing? Like in Istanbul this morning? With this German history, how would Germans or the world ever be assured that the state will keep them safe … since the police are always connected to the politician in charge? And in a Europe without borders could you really believe either these day?

The Warmth of Other Suns is this open door policy toward immigrants combined with the then public accommodation, of criminals … given sanctuary. Outside the cathedral, in Cologne. So much like the Cuban boats in the 1990s? Or was it the 1980s? Who were leaving Cuba? And so few politicians seemed to know, as an investigator of sex crimes does, that most rapes are committed by serial rapists. Yes, the Mariel boatlift followed The Cuban Adjustment Act.

Refuge. Asylum is a selective enforcement of the law. That you might be like I am. With shelter. More and more, select groups are above the law, given sanctuary. The undocumented, on issues of shelter, homes and homeland. So who is above the law, like so many of the elected leaders live their lives. Concerning the question “Who is an American?” Or Who is a Berliner? When a foreign policy created so many problems. Or domestic policy had, when it came to Slavery.

Private. Secret. Hidden. Like a leader’s blood pressure. Over the police operations of the current decade all over the world. And the protest. Like Black Lives Matter. Staged fights, like in Turkey so a Erdogan could claim more powers … in an emergency, like happened in my own nation following September 11, 2001, though that event was NOT a staged fight. But your children grew up in the new atmosphere for more than the next 15 years, without ever wondering what would be the affect on candidates much less elections. Or the institutions.

Take-overs. The inter-state highway. You could not hide it from the press too long.  Like at what had first been announced at 3 am by Ansbach policein Bavaria as a”gas explosion” on July 24th, as a 27-year-old male Syrian national, identified by federal prosecutors as Mohammad D – in line with German privacy laws – set off a backpack laden with explosives outside a wine bar near the Ansbach Open Air Festival that injured fifteen, four seriously, authorities later said. Ah, the conflict of privacy and publicity, protecting the human rights of the dead. In the fourth attack to shake Germany — three carried out by recent migrants.  In seven days of mayhem in Bavaria, a team of 30 investigators was examining evidence collected from his home, as well as interviewing acquaintances of the 27-year-old Ansbach bomber who died in the attack. Mohammad D had been told on July 13 that he would be deported to Bulgaria where he had first submitted an asylum request. Investigators told reporters that a first expulsion notice had been issued to him on December 22, 2014, but with no indication for the reason he was still there. Mayor Carda Seidel said that Mohammad D had been turned away for lack of a ticket to the Ansbach open air festival. If he had a history of crime, the failure to name the bomber – Mohammad Delel – only protects a government from hearing from other ‘victims’ of his potential crimes.

Take-overs. Like at the two thousand three hundred forty institutions that Erdogan took over this week, with Parliament’s approval.

In the category of secret and hidden, using methods to secure data off license plates, over phone lines and computers, in the United States under the authority of secret courts, there are the cameras. The government’s cameras. The governments satellites. Until now, thank goodness, everyone had a camera to watch those in power using their cameras to keep themselves in power while eroding liberty. But police first had to ask the elected representatives about what Truth could be released? Like in 2016, in Germany.

Per the history of the last thirty years, after all the mergers and acquisitions with accountants left in charge, the technology revolution had mostly place inhumane people in charge … of corporations and churches and government, and, in the name of oversight, these not announced cameras. The hero to the next generation is Edward Snowden. As technology displaced humans from their jobs.

Called a traitor, there was the moment in 2013, under this Administration. A courageous young man, Edward Snowden, called a traitor by President Obama. With his secret oversight of the wired and now the wireless world. Under the watch of President Obama. With the real threat that a guy like Donald Trump would inherit such invisible powers.

Belonging? On what side of the divide? Is it your age, your power, your perspective to declare someone a heretic if you believed in nationalism as your religion – maybe because your age of innocence was spent in Indonesia? What have you helped maintain? Is your perspective formed out of this great separation when your mother’s family was Christian and your father’s Muslim? And you wanted to be a community-builder, because of living with such great hostility, domestically, overseas?

The branding of the next generation as a traitor, as your children grew up in the new atmosphere over the next 15 years, wondering what would be the affect on a candidate much less elections, over the concept of National identity by the high priests of Nationalism – now Obama, Trump, Clinton -determining who were traitors.

Sensitive. Insensitive selective enforcement of the law. Rebellions occur when inequality threatens stability. Repeatedly in Minnesota, the laws involving permits to protest have not been enforced under the current governor, at a cost in one week to the city of St Paul, in one week of an extra million dollars. Behold the publicity of the permitted and the not permitted. This weekend the same highway – Interstate 94 – is legally shutdown, after the weekend before when I-94 illegally was shutdown by Black Lives Matter. The LINK:

‘Take-overs,’ of the inter-state cyber-highway. You could not hide it. Like the Congressman from Florida serving as the head of the Democratic National Committee. Among 19,000 internal Democratic Party emails released on July 22 by WikiLeaks, were some emails discussing how to discredit Vermont Senator Bernie Sanders. Rather than look inward, about the status quo and now ousted chair of the national committee of the Democratic Party Debbie Wasserman Schultz – a congressman from Florida obligated under party rules to remain neutral in the presidential primaries – Clinton’s campaign manager Robby Mook was blaming the Russian government for the WikiLeaks leaks.

The European Union, with move-in and move-out rules, to brand who is in charge here. From the beginning, ‘you’ clearly are not. The EU, like my condominium Association, invisibly is. With the issue of the power of the community, on matters of ordering, there still is Communism, Fascism, and The Old Guard, led by German Chancellor Angela Merkel and all the old political hacks of artificial elitist projects and European bureaucracy, in Europe without borders.

Brexit. Determining who were traitors. Legally. As government becomes the rule of men and women – with celebrated media fame – rather than the Rule of Law. The fear belonging to a police officer is over a selective enforcement of the law, under the watch of leaders like the Minnesota governor, the St. Paul mayor, the mayor of Cologne, and these world leaders?

The great seduction. Europeans without borders. The constitutional history stolen. The mix of Identity. The refugees. The Patriot Act. The fear of outside Spirit.  Given clearance. Over secrets. Soldiers fighting for a union, like the local police, protecting and defending. Property. And borders.

Listen to the apologists, with all the apologies directed at the outside world, with the European Parliament and the European Union’s invisible goal to wipe out nationality, since the natives were not replicating enough to grow an economy. And did you pay attention to what the head of the police union said, with concern over anarchy, about Black Lives Matter.

The trade winds. In the Age of Climate Change, how had these systems become so weighted in favor of money? The euro. The currency. Visible and invisible. On land, there are the storms associated with the ocean. The strength that the economy of Germany added to the European Union.

The seen and the unseen. With fear and anger, there are the economic storms. Sustained trade winds?  Where could the victims, born into this, go to find the next leader? The homeless. The refugee. With all of the fear of living without a home, and without a homeland. The shared fear of living in the mix, without any defined borders.

About your own homeland, determining who are traitors . . . legally? This president who grew up as an ex-pat, preaching to the world this ‘Transparency.’ About markets. About free trade. In the world of nationalism, what is the equivalent of “Spiritual, not religious?” What had the constitutional law professor ever learned in Indonesia about the Constitution? In the world of nationalism, what is the equivalent practice of religion, for the “Spiritual, not religious” ex-pats? Had they ever heard of “Conscientious objectors?’ Or just the vapid living with the blasphemy of self-importance.

The Warmth of Other Suns.  .  . after being forced out, like religion mostly has been, what is moving in with the refugees except this little understood Spirit? The elephant in the room, given sanctuary, among a people with so little understanding of either.  Trust and balance are delicate things to maintain, if the human goal is about Reaching Acceptance. Over time. Building community at home, without borders, beware what your believe!  Beware who you believe.  And beware when you believe those that say that the state will keep you safe, since this is a promise of a coming war.
Corley's This_Side_of_Paradise

About your own homeland. The human goal is about Reaching Acceptance. Over time.
Beware what you believe! Beware when you believe those that say that the state will keep you safe, since this is a promise of a coming war.


January 10, 2016

On the Coverup of How Many Rapes in Germany?

Filed under: European Union,Homeland Security,Media,Minnesota,St. Paul — baseball91 @ 1:12 AM
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Stefan Wagstyl writes from Cologne on behalf of the Financial Times about the government response to the “ mass sexual assault.” In Cologne. On New Year’s Eve.

Weren’t these rapes? Outright organized rape!  The interior ministry has 32 people suspects for the 379 New Year’s Eve “sexual assaults,” 22 of whom are allegedly asylum seekers, including “Moroccans, Algerians and Syrians.” From what are the Moroccans seeking asylum?

With the second rape by not just the politicians trying to gain support over an outrageous event, but by the media like the Financial Times. Did you see the spin in the headline by the male journalist covering the story? “Merkel backs plans to tighten the law on refugees who commit crimes.”

Crimes! The missing word is rape [noting that a journalist does not write the headline].  And then the coverup of the rapes.  To call rape “sexual assault” is to soften the appreciation of the crime which is much more than a temporal offense. ‘Chancellor Angela Merkel said on 09 January 2016 that she wants stricter asylum laws, after a series of “sexual assaults” in the city of Cologne.’ To a nation that should be shocked by the response to rapes.

Three days after a piece by Marc Champion of Bloomberg in Newsday, Stefan Wagstyl is unaware that the story now is of THE COVERUP, as the number of criminal complaints rose to 379 from 170.  Women filing criminal complaints should be outraged at the lack of coverage on the coverup, as well as the phony story pursued about a government response to the “ mass sexual assault.”

The Financial Times does not see the story if it bit them in the proverbial ass.  These rapes are going to bring down not just PERSON OF THE YEAR, German Chancellor Angela Merkel’s  government but will affect what happens to the United Kingdom’s future in the European Union, when the Brexit vote comes.

Private.  Secret.  Hidden.  The police operations of the current decade all over the world are in the category of secret and hidden using methods to secure data off license plates, over phone lines and computers, in the United States under the authority of secret courts. So how could this news of a public crime outside Cologne’s Cathedral occurring on New Year’s Eve be hidden for several days?  Were  all of these people still on a long holiday weekend?  Is there censorship in Germany because of the political sensitivity, of the influx of refugees? And the outrage was in the January 1st press release issued by the Cologne police that it had been a peaceful New Year’s Eve in Cologne. And journalists like Stefan Wagstyl in Cologne go with the press releases, unable to identify Cologne as a sanctuary city.

So there was this coverup …. In Germany, for a number of days after all these rapes in one night in Cologne. This was the danger of this open door policy toward immigrants combined with the then public accommodation, of rapists … given sanctuary.  Outside the cathedral.  And so few politicians seemed to know that most rapes are committed by serial rapists who are never caught. So the coverup is because of the concern about racism of German people, as exhibited in the 1930s, by the authorities? Speaking of one horror following the next.

In the United States, there is selective enforcement of the law.  Rebellions occur when inequality threatens stability.  Repeatedly in Minnesota, the laws involving permits to protest have not been enforced against Black Lives Matter since at least January 2015, when Black Lives Matter walked down the interstate highway with impunity. Today Black Lives Matter invaded retail stores in St. Paul with immunity, as the group had done during Christmas week, at the Minneapolis-St Paul airport.  More and more, select groups are above the law, given sanctuary.  Above the law, like so many of the elected leaders live their lives.

We do live in a police state where it is impossible to be a member of a police force, having to report to leaders like the Minnesota governor, the St. Paul mayor, or in the case of Cologne, the mayor in the city which is welcoming refugees who allegedly believe in Sharia law for everyone.  With immunity for rape.  As law and order breaks down. As government becomes the rule of men and women rather than the Rule of Law.

And sometime after January 2nd, according to Cologne Mayor Henriette’s interview with der Spiegel, she found out 19 claimed criminal complaints were registered with the FEDERAL police inside the train station, besides the 3 emergency calls made to local police. And the Mayor during the summer had had an office located right across the street from the cathedral,in order to follow events there. Before her election.

Was there a police presence that night, outside the cathedral?  Have you noticed the wrong methods of selected enforcement by so many police, by those with power above and so little understanding of what it is to have a Closeness, outside a cathedral, that is supposed to accompany power. There are many people who do not know who are given power. Worse than the people who do not know are those who do not feel. Those who no longer search, passing on the missing – the no THERE. Like in this piece in the Financial Times. No longer grasping the Truth or even trying to grasp something of the Truth into the new year. A reporter, passing on the missing news– could you feel the no THERE there in his story, like trying to pass on nothing, in the 2016 election year, with the missing feel for the game that surrounds Donald Trump, Hillory Clinton and so many of the news people who cover them. People who cover up rape. Or with a selected enforcement of the rule of law.


Post Script 2017:

Meanwhile, back in Europe, still in Vienna only on July 31, 2017, in the culture of the European Union, law enforcement ‘officials’ already ruled out a terrorist motive of a 34-year-old who came to Germany from Iraq as a child, for shooting up a disco. The ‘suspect’ was not named in keeping with German privacy laws, in the culture of the European Union, with the right to be forgotten.

VIENNA — A disagreement in a German discotheque turned deadly Sunday after the disco operator’s son-in-law left the club, returned with an assault rifle and started shooting, law enforcement officials said.

A security guard was killed and four other people were wounded, three of them seriously, during the rampage that started at the Grey Club Discotheque in the southwestern town of Konstanz. The suspect was fatally shot by a police officer.

Officials investigating the early-morning shooting identified the suspect as a 34-year-old who came to Germany from Iraq in 1991 as a child. They said they had no details of the dispute, but ruled out a terrorist motive.

Or in The Culture which knows everything, if not just too much, perhaps the issue is the culture of European Media. Reporting what the Media does not know and is too lazy to find out on their own, relying on the police. Behold the Omnipotence of Media! Could you feel the threat of the Masters of the Universe, as if the Media had created all the Universe.

March 27, 2013

The Book of Numbers: Why Pope Benedict Abdicated

Filed under: European Union,Pope Benedict XVI,Roman Catholic — baseball91 @ 5:24 PM

The New Irish Prayer for all of Europe through the end of February had been: “May the road rise up to meet you, since your congregation won’t. May the wind at your back always be your own, so long as the bishop hasn’t closed the church.”

The numbers reflect the effectiveness of the papacies of Pope John Paul II and Pope Benedict. Those numbers throughout Europe have shown the new Exodus, a generation later. In January 2013, German Cardinal Rainer Maria Woelki announced plans to Katholische Nachrichten Agentur to cut the 105 churches in the Archdiocese of Berlin to 30 parishes by 2020. This seventy percent reduction — over 70 percent — will also affect Catholic schools, as well as hospitals, elderly homes and nurseries. Those later mentioned institutions will soon be facing their own reductions to reflect a “diaspora experience.”

It was in 2007 that Cardinal Woelki’s predecessor –Cardinal Georg Sterzinsky – had cut in half the number of parishes due to the archdiocese debt of $140 million.

Also in German-speaking Austria, Austrian Cardinal Christoph Schönborn reduced the number of parishes from 660 to 150 in September 2012. That was a reduction of 510 churches in his Vienna archdiocese if you did the map. The number of German-speaking people were following behind the long-held tenets of Joseph Cardinal Ratzinger that the Roman Catholic Church needed to be pruned back, theorized before he was elected pope. And he along with all of the cardinals appointed under John Paul II were leading the pruning, with loyalty oaths of the right guard of the church.

The language changes in a new interpretation of the English Mass came not with collaboration by the English speaking world but a stilted high German-like understanding of the world. Perhaps it was viewing what was happening in the Hapsburg Empire next door, Otto von Bismarck felt a scarcity of moral courage among Germans – Bismarck thought this characteristic among Germans with the complete lack of it among those who put on vestments and/or uniforms – made Germany unsuitable for democratic government.

Caught up on the cause of religious freedom as a basic human right, the old pope was oppressing a certain wing of his own church with his pruner. Blind to the difference between choosing and being chosen, with then all of the vanity about being right.

Forgotten was the reason why the Mass in the first place had once been in Latin, to appeal to the masses in the Roman Empire. And the change in these deep-rooted words was more than just in a translation but in the underlying use of power and might.

Week after week for the past year, less than half of the people verbally respond to the new wording in the prayer before communion: “Lord I am not worthy.” In the elimination tournament over language, less than half the congregation liked the archbishop here, who supports every change. When leadership since John Paul II was based on loyalty oaths, where the elimination mostly included belief. Never until John Paul II did priests have to take loyalty oaths to archbishops.

After so many Germans, Irish, and Americans might have realized that the new question was who was excommunicating who? Who had the real power of excommunication, to prune back, when the vicars of Rome were forced to close so many churches?

Yes, Spring is here. And the high and the mighty have been displaced. There is room again for real growth in the universal church, so this church can once again try to engage all of humanity. A church does not withdraw, does not retreat backwards. A church is not a tribe for like-minded people, not an exclusive society. A church does not retreat from the world. A church with its people is held accountable, legally in a society and so much more.

A church transfigured by this new pope, not using stilted language. One of us. There is cause for celebration that a church which brings people together might go back to its original purpose. To come down from the mountain top, Transfigured.

To be elevated was all like a dream. As the people could believe in the leader.

March 22, 2013

The Green Line in Cyprus

Filed under: euro,European Union — baseball91 @ 2:30 AM

There was need in so many countries for low-interest loans that are essential to keeping its banks afloat. And thus the monetary policy of the Federal Reserve bank. Like for Cyprus where there is need for €5.8 billion euros for a bailout from the IMF and the European Central Bank and the European Commission (the troika).

The air over Cyprus with exasperation, anger and anxiety, while waiting. For the future. Standing in line for the future, hoping for money. Would new loans only swell Cyprus’ already badly managed debt?

When there was no there THERE. At the banks. In the soul of the leaders of Europe. Living in a fantasy world. The order has come from govenment to Cypriot banks to keep automated bank machines filled with cash as long as bank doors remain shut.

Standing at the autotmatic cash machine, Irena Margilou, 32, was hoping for automatic cash. “We don’t know what the future holds.” With what was perceived to be an embittered voice, per a New York Times reporter, the unlucky thirteenth person in an eighteen-person line wondered: “What is happening to European solidarity?”

Outlook negative: There was this legal difference between insolvency and bankruptcy versus liquidity, when those government bonds were the air which a nation breathed, before you dried up.

Barren. Lost fertility. Wealth destruction during this one week bank holiday, separating the good from the bad. Bloomberg News is reporting that finance ministers from the EMU currency bloc are pressuring Cyprus to shrink its banking system by, judging the good from the bad. How? The finance ministers for the 17 euro countries have proposed closing the two biggest banks – Cyprus Popular Bank and the Bank of Cyprus – while freezing assets of uninsured depositors; the good deposits would go into a good bank, while uninsured deposits would go into a bad bank and be frozen until assets could be sold. Losses to unsecured creditors, including uninsured depositors at the two biggest banks, would reach 40 percent under the proposal which the International Monetary Fund and the European Central Bank support. Did this sound like the unorthodox buzzcut for government bond-holders of Greece in 2012?

In June 2012, Cyprus became the fifth country in the eurozone to request an international bailout after lenders got caught up in the debt restructuring of Greece’s banks. To prevent a panic if not a revolution over the EU, insured deposits below the 100,000 euros ceiling of these European Union policy wonks would go into the so-called good banks, not sustaining any losses.

When governments took your money another way, other than through tax policy. When you lost your nest egg from government actions, in currency wars. When your sovereignty as a people was at stake.

This EuroGroup (the troika) meeting is over for the night. The the troika says it is important that Cyprus guarantees deposits under €100,000, and expects the country to quickly submit a new rescue plan. Frozen in late March, thousands of international companies who do banking in Cyprus cannot transfer money in and out of accounts to conduct business, with the banks all closed. As old rules of thumb from the right to eminent domain of nothing, if you lent €5.8 billion euros to bankrupt banks backed by an insolvent state, you no longer were a creditor but the owner of the bank – even when there is no THERE there.

As Standards and Poor’s cut their rating of Cyprus to junk bonds from CCC+ toCCC. When tens of billions of euros in bank deposits likely leave the country additionally, though not exactly overnight. Maybe when the banks open.

Why would you keep your money there? When there is no THERE there? And in a place where there was not much bond in this so called European Monetary Union. This was a rewritten script from 1998, when Russia quit paying on their $40 billion in debt. And Cyprus was was the number-one destination for Russian money being sent abroad. The German fear without transparency concerning this haven for Russian dirty money. So why would Germany bailout Russian dirty money? German intelligence reports, per Der Spiegel magazine, estimates the size of Russia’s deposits in Cyprus from €8 billion to €35 billion. And the number-one direct investor in Russia, with more than $13 billion in investments, is Cyprus according to the Russian Central Bank.

Russia and Cyprus are so intertwined from an economic perspective, when your sovereignty as a people was at stake, Cyprus could almost be another region of the Russian Federation. And history was not on the side of the people.

Religion Blogs

January 15, 2013

Greek Mythology

Filed under: euro,European Union,New York Times — baseball91 @ 3:31 AM
Tags: , ,

On Monday, all of Greece’s opposition parties – Syriza, Independent Greeks, Golden Dawn and the Communist Party – condemned the shooting which occurred in central Athens before dawn, adding to a wave of politically motivated violence in recent days as Greece struggles with its continuing EU economic crisis based upon currency. “Gunmen” allegedly sprayed bullets into the headquarters of Greece’s governing New Democracy party, though no journalist sighted the gender of the folks pulling the trigger. “Urban political violence has tended to flare in Greece at moments of political chaos and economic deterioration,” Liz Alderman of the NYTimes writes. There was no mention if she speaks Greek, or has studied Greek history.

“Democracy will not be terrorized,” the president said on Monday. According to the New York Times, the latest wave of violence followed the arrest of 101 “suspected anarchists” last week, with “firebombs” confiscated in an operation of riot police in central Athens at a building called Villa Amalia, “a longtime gathering point” for students and far-left groups. This protest in downtown Athens by the so-called “anarchists” ended when police fired tear gas into the crowd. Not to let details get in the way, but Liz Alderman failed to report that what had been confiscated were some 1,500 empty bottles, a canister with flammable substance, helmets and gas masks, along with other material which raised police suspicion. No description has been given how the bottles got there — if plastic water bottles bought by squatters in the building? What does seem apparent is sloppy reporting. What exactly would “long-time” mean in a place like Athens? The YouTube video would suggest that this was a simple demonstration by opposition and dissenters. And some of the confiscated material would be what a prudent protester might bring along.

Publication of a list of more than 2,000 Greeks with bank accounts in Switzerland, which the government was given but did little to investigate, had touched off “a scandal and galvanized public opinion in recent weeks, according to the NYTimes. This news item sounded like the Occupy Wall Street Movement, since it was Goldman Sachs which helped the Greek government hide from public view a transaction treated as a currency trade rather than a loan, as Greece quietly borrowed billions over a decade. With help from the wizards of Wall Street, the Greece government engaged in an effort over a decade to skirt European debt limits. So no wonder the lingering anger by the populace. (Not all that dissimilar to what had happened to those items in the budgets approved by the U. S. Congress that had kept the cost of war in Iraq off the books.)

This attack on Monday morning at the office of the New Democracy party followed attacks on “other symbols of the Greek establishment which are believed to have been carried out by far-left militant groups,” the New York Times reports, without mentioning who it is that believes that ‘far-left militant’ groups were involved. Those attacks over the last week involved home-made gas canister bombs at the homes of five Greek journalists on Friday as well as canister bombs detonated at several government office and banks last week. A Google search to find where exactly the places of “the spate of attacks on other symbols of the Greek establishments” occurred, clarified to be “several government offices and banks”, fails to find any specific mention anywhere else by news media. I wonder if Liz Alderman of the NYTimes would one day cite a specific place in a follow up story.

Claiming unbalanced coverage of the Greek financial crisis to be sympathetic to the imposed austerity programs of foreign lenders and imposed by the Greek government, Lovers of Lawlessness claimed responsibility for Friday’s attacks. In a statement posted on the internet, this group said the news media are the “main managers of the oppressing state designs, manipulating society accordingly.”

After the fall of the country’s military junta in 1974, Greek police in 2002 crushed the November 17 group after decades of attacks “against politicians and businesses. Other groups however have since sprung up, throwing firebombs during anti-austerity demonstrations, attacking police.” In writing about this “mounted” terrorism by “anarchist groups,” Liz Alderman of the NYTimes earlier misstated that Military Minority-Lovers of Lawlessness claimed responsibility for Friday’s homemade gas canister bombs attacks. A correction stated that a group called “Militant Minority-Lovers of Lawlessness, not Military Minority-Lovers of Lawlessness” claimed responsibility. Hmmmmmmmmmmm. Greek is a very tough language to master.

According to the New York Times, a government spokesman warned on Monday of a “dangerous escalation of spreading terror.” The New York Times writer did not seemed concerned how a government might try to use more police powers to capture more political power. Have you ever covered the Republican National Convention in the United States, with mention of what a police state looks like with helicopters flying overhead to protect the delegates and maybe the media? In September 2008 there were more than 800 arrests made during the political convention in Minnesota, with one conviction which in hindsight calls the question of the use of police power; there were homes raided and the same kind of alleged evidence reported by the news media.

What is clear is that at least since World War II, it has never been more dangerous to be a journalist in Europe. “These attacks,” Reporters Without Borders said in a statement, “are the most visible expression of an increasingly dangerous climate for all journalists, who are being turned into the scapegoats of a crisis they are just analyzing.”

Perhaps the people in Greece expect journalistic standards to be elevated to reflect a society based upon civility, when journalism rises above the market tensions of those who were forced to sell ads. The same forces of lobbyists trying to affect legislation are at work each day in the world of television news. And this was more and more a generation which got its news from radio and television. There should be a concern, not just between all Greeks, about the fairness and understanding of the talking heads taking in money, paying for all the commercials on radio and television, and somehow capturing the Truth. Referring to dissenters as “anarchists” at a time when everything was being devalued — and you were so personally touched when everything here was devalued — was playing into the hands of those already in power. When some of those in power had along the way just quit doing their job(s).

Yes, stories of terrorism increase viewership/readership in the short-term, before the long-term affects set in on a civilization. Just like the affect of economic unification with continued political independence of nation-states which had fueled this identity crisis for the European Union. Those same factors had fueled a lot of divorces in my neighborhood with affects which lasted a lifetime, among individuals who had lost power in some kind of relationship, in most cases without adding to a “wave of politically motivated” violence.

August 5, 2012

Persons of Interest: The Reason for the Fiscal Mess Of Western Governments As Well As Japan

Filed under: European Union,Japan — baseball91 @ 1:48 AM

 Dependent on sales to other EMU nations, Germany’s economy is weakening. In Germany, the nation’s highest court is expected to rule on September 12th whether the European Stability Mechanism —the main financial rescue fund for countries in the European Monetary Union — is permitted under Germany’s constitution, which is a matter of concern in both the euro zone and to the world.

 Spain’s borrowing costs for a ten-year bond closed this week at 6.672 percent, while Italy’s 10-year bond rose above 6 percent. “Bond vigilantes” who trade as rational players in the bond market have been accused of undermining Europe’s recovery and its welfare state. It has always been the bond market which imposes budget discipline on pie-in-the-sky politicians. The collective day-to-day judgments of “bond vigilantes” can now topple governments and hold the key to the survival of a currency. And it would happen this fall, unless Germany decides to leave the European Monetary Union.

 The cause of the crisis would be poor leadership in Europe, if there was any leadership at all. If politicians expected the bond market to speak with one voice, traders commonly complained, it would help if politicians did too. The deceit has been revealed by the markets.

 When a nation-state owes too much money, bond investors raise the borrowing cost of that nation with the risk of default. Italy needs to raise 100 billion euros in bond offerings before 2012 concludes. And Spain with their already existing debt, does require 35 billion euros before 2012 concludes, though another bond offering is not due until October. This was on top of the indebtedness of Spain’s banks and regions, in a shrinking economy. When it had been bond investors who were forced to take buzzcuts on the Greek government bonds held — had it been 50 cents on the dollar? (Read about the reaction of those who ran the Norwegian national pension fund about what they thought of the EU’s forced buzzcuts.)

 Monetary wars. The exchange rate stood at 123 yen to the dollar just before the first tremors of the American housing crisis appeared in 2007, as the Bank of Japan kept interest rates low to stimulate growth, and money flowed out of Japan in search of higher returns. In February 2012, the yen hit a postwar high of 76 yen to the dollar, remaining around 78 to the dollar on Wednesday of this week. The worldwide macroeconomic trends currently favor a strong value of Japan’s currency, to the harm of its competitive stance in global markets.

 Poor leadership in Japan, as the Japanese can trace the start of the yen’s latest rise to the worldwide economic panic that — according to the official spin told over and over until most people believed it — began in the United States and spread to Europe. ‘The crisis’ began raising doubts about the soundness of American and European banks and the ability of governments to stand behind them. The tide of money did reverse. Japan with its huge number of domestic savers soon became a haven for investors, driving the currency value of yen up. Have you followed the comments of the US Treasury Secretary on US policy over the past four years concerning the yen? In the top story in November 2009, Timothy Geithner insisted that the US Treasury has a strong dollar policy. In November 2009, he said the Obama administration was committed to a strong dollar and to actions aimed at bolstering its value, giving reassurances to Asian nations in November 2009. Coming from the world of central banks where expressions in bankspeak are neither normal nor clear, it never has been clear if the strategy between the Fed and the European Central Bank is coordinated or not, or to what extent. In November 2009, lectures were given to President Obama and Timothy Geithner by top Chinese officials about the risks posed to the global economy by America’s ultra-low interest rates and soaring government deficit. So three years later, the pegged level of the yen to the dollar this past Wednesday was around 78. This strong dollar policy has resulted in a drop from around 90 yen to the dollar since Timothy Geithner’s remark about the “strong” dollar. Maybe Japanese leaders actually believed Mr. Geithner.

 Poor leadership in the United States, under both the Bush and Obama Administrations. In these monetary wars used to fund the wars in Iraq and Afghanistan without tax increases. Everyone who held US currency in reserves would fund the War on Terror. In Japan, a high yen benefits Japan’s rapidly expanding elderly population, even if it hurts the younger Japanese. One reason, analysts say, of the vicious cycle of a strong yen and deflation, is generally left unsaid: politics which is pitting one generation against the other. By speeding the flood of cheaper imported products into Japan, the strong yen is contributing to deflation. Doing almost nothing to rein in the yen lets young people suffer, increasing the purchasing power of those with money. Despite alarm that the record-high currency is dealing crippling blows to the country’s once all-important export machine – partly within the government’s power to control – retirees from the baby boom, who make up more than a quarter of the population, tend to vote in high numbers. Even though the long-awaited plan released this week identifies the heart of the problem as Japan’s aging population and declining export ability in a competitive Asai, analysts said the government’s modest approach fails to take on the entrenched interests in monetary wars, including the elderly who have long stood in the way of fundamental change.

 It was another election year, with nominated candidates with such poor leadership skills to manage this Promise Land — but such nice hair. In the televised world, there was that shrinking universe without good leadership which has resulted in a shrinking universe of safe assets. In the way of homeland security, Norway was one nation which looked to be safe. The upward-demand pressures to place assets in a place of safety is now my personal crisis, wth negative implications when there was no financial stability anywhere. With such a projected scenario of the collapse of the euro, how soon would vigilantes follow the bond vigilantes.

November 30, 2011

Dancing In The Dark

Filed under: China,European Union — baseball91 @ 3:53 PM
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The Federal Reserve moved Wednesday with other major central banks in a co-ordinated dance affecting world monetary policy. In the co-ordinated move with the Chinese Central Bank, the Bank of Japan, the European Central Bank, and the central banks of Britain, Canada and Switzerland, the United States Federal Reserve shared in a new version of QE2, easing the liquidity requirements to to the Euroepan Central Bank for European banks as a whole. Apparently to avoid, in times of dependency, world-wide runs on all banks. Just as European banks are dumping European government debt.

The Chinese government on Wednesday evening unexpectedly reversed its year-long move toward tighter monetary policy which had been aimed at curbing inflation which still persists. Weakening economic growth has now replaced inflation as the top worry in China, with the dramatic fall in exports to Europe announced within the past thirty days. The Chinese announcement to buttress the financial system, a particular surprise because the central bank usually announces moves on Friday evenings, came after the Shanghai stock market had slumped 3.3 percent on worries that the government might not act. The reduction in the so-called reserve requirement ratio – an important step to encourage banks to resume lending – came after the central bank had in 2011 increased interest rates three times, and raised the reserve requirement ratio six times.

In a speech in San Francisco Fed’s vice chair, Janet Yellen, on Tuesday underscored “the urgency of strengthened international policy cooperation”. She said that “the global economy is facing critical challenges.” The Federal Reserve then acted Wednesday morning with other major central banks to increase the availability of dollars outside the United States, reflecting a growing concern about the fallout of the European debt crisis. Banks outside the euro zone have been cutting their lines of credit to those inside the zone, as the United States was about to embark on a new stress test of its lenders which includes contingency planning against further disruptions in Europe. It would not be be surprising if the planned new stress testing would provoke American banks to cut their exposure to their euro counterparts, further exacerbating European funding problems.

It’s a wonderful life. As QE2 sails to Europe, on the back of the Federal Reserve Bank. The terms of the revised agreement announced by the Federal Reserve Wednesday reduces to 0.5 percentage points an existing premium of one percentage point, cutting the cost nearly in half. A most recent loan to the Euroepan Central Bank which had carried an interest rate of 1.08 percent, now would cost 0.58 percent.

Xia Bin is a member of the Chinese Central Bank who had said one year ago that U.S. quantitative easing amounted to “uncontrolled” money printing. The academic member of the Chinese central bank, Xia Bin had been quoted this week as saying a crucial part of China’s fine-tuning of monetary policy is to differentiate reserve requirements between banks. He is probably not as well tuned in as Janet Yellin, at least concerning reductions in the reserve requirement ratio.

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October 16, 2011

Newly Engineered European Bailouts

Filed under: euro,European Union — baseball91 @ 6:23 AM

“We are in the middle of a crisis. It is not over. It is to be taken seriously, but it is centrally an American crisis.” – German Finance Ministry spokesman Torsten Albig on September 15, 2008.

Economic physics. Can you spell C R A S H? The Great Depression was all about a crash. Credit markets dried up after The Crash on Wall Street. Secular declines, market trends which head in the opposite direction, follow crashes in long time frames anywhere from five to twenty-five years. With all the earmarks of deflation now setting in, in Europe.


“At this stage, we’re quite confident.” – A spokesman for the French Finance Ministry, who said that French banks and French government debt agency, Agence France-Tresor, are not in danger from the market turmoil in the U.S. on September 15, 2008

The system. European banks have become pretend banks, with no money. Across Europe, according to Autonomous Research, loans to banks exceed their deposits by 6 percent. Among French banks, loans exceed deposits by 19 percent. In Greece, they swamp deposits by 32 percent.


On Saturday, Finance ministers and central bankers from the Group of 20 called on European leaders to deliver a comprehensive plan to address the European continent’s deepening sovereign-debt crisis. On Wednesday, representatives of the European Union had told European banks that they need to raise more capital to protect themselves against losses on sovereign debt, or politicians will do it. The G20 meeting included non-European countries who have pushed Europe to speed up the plan taking shape among euro-zone countries to address the euro crisis, with the scramble to save the euro and prevent Greece’s debt woes from spreading. Ah, I think they have not been reading the papers about the monetary wars.

About the market dynamics which serve as the regulator out of control world of currency. The Post Traumatic Stress Syndrome on currency which came to all currency out of monetary wars. The current euro crisis was such an after-effect. After the dollar has eroded forty percent over the past decade, the recent rise of the dollar over the past sixty days has itself been a cause of worry in the United States? To whom? Do you need further proof that a weak currency is inflationary than a trip to the grocery store?

If you believed the experts – and I do not – the cause of the bubble which began hissing in 2008 was sub-prime loans, as the political spin doctors in Washington were able to point fingers at bankers rather than at this monetary policy set by the Federl Reserve Bank and the Treasury Department in the Monetary wars. In September 2001 one euro bought 0.92 US dollars. On November 19 WTI crude oil bottomed at $16.70, days after China entered the World Trade Organization. Was it Europe, China, the US, or was this just significant cyclical events, as US debt outstanding through 2009 would more than double, the euro would appreciate by 95% against the dollar, and crude oil would appreciate by 780%. And was the EU foolish for getting dragged into the financing of the wars in Iraq and Afghanistan with no tax increases in the US?

It was a world where governments levy taxes not to finance its operations, but to give value to its fiat money as sovereign credit instruments. French Finance Minister Christine Lagarde in June 2010 had said that budget consolidation is “priority No. 1” for most G-20 members, as Timothy Geithner at the conclusion of the June 2010 G20 meeting expressed concern over the confidence in the system.

The current [euros?] crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency. We are now in a period of wealth destruction. The system is broken.” — George Soros

Can you spell C R A S H? That is what wealth destruction is all about. Less concerned about the loss of buying power for their own citizens, a lot of nations pursue a policy of a weak currencies, hoping that will help their exporters. Especially in monetary wars which have funded the American wars in Iraq and Afghanistan, with no rise in taxes leveled on an American public over the past ten years.

As the European debt crisis threatens to halt an anemic global economic recovery, and efforts to deliver a plan to address the crisis dominated discussion at the G20 Paris talks. here is recent discussion over direct exposure of the U.S. financial system to the countries under the most pressure in Europe, with little regard to the indirect exposure. Last week, officials at Morgan Stanley worked overtime trying to calm investors about the bank’s $39 billion in exposure to French banks at the end of last year, not counting hedges and collateral. The total amount of insurance written do not reflect other offsetting trades that bring down these banks’ actual exposure significantly. For investors, the challenges in trying to assess the true exposures are real. At the end of the week, Morgan Stanley appeared to have relieved some investor fears over its exposure to Europe. (Some analysts argue that the amount today is far lower than $39 billion.) Therefore investors have to trust that the institutions are being appropriately rigorous .

“Many of the risks in these institutions are maddeningly hard to plumb, and open to a range of interpretations as banks reduce their exposure to a possible loss by the amount of collateral they have collected from a trading partner. Is the collateral that has been supplied to secure derivatives contracts solid? Is the bank valuing it properly? Can it be located quickly?” asks Gretchen Morgenson. How about in a deflating European economy, when there is no money being loaned?

Monetary war. After the Bank of England announced, in a desperate effort to stave off a new credit crisis and a UK recession, it would pump more money into the economy, the cost of borrowing sterling for three months in the London interbank market fell Friday, its first drop since June 8. Meanwhile, the cost of borrowing dollars and euros for three months in the London interbank market rose last Monday. Ten days ago the Bank of England had announced a fresh round of quantitative easing to stimulate economic growth, meaning it will print an extra GBP75 billion of cash to buy bonds. Data from the British Bankers' Association showed the three-month sterling LIBOR (London Interbank Offered Rate) falling to 0.95875% from 0.96000%. The spread between the three-month dollar LIBOR and the three-month overnight index swap rate–a barometer of banks' willingness to lend–widened to 30.4 basis points from 30.2 basis points Thursday. The euro rate rose to 1.50375% from 1.49563% Thursday, while the three-month dollar rate rose to 0.39111% from 0.38778%.

European banks now have become pretend banks, with no money. Across Europe, according to Autonomous Research, loans to banks exceed their deposits by 6 percent. Among French banks, loans exceed deposits by 19 percent. In Greece, they swamp deposits by 32 percent, writes Gretchen Morgenson.

This is why, writes Gretchen Morgenson, it is becoming such a problem for European banks that so many short-term lenders are declining to renew when loans come due. Money market funds, traditionally big investors in short-term paper issued by European banks, have been reducing exposures. A recent Fitch Ratings report shows that for the two months ended July 31, the 10 largest United States prime money market funds pared their holdings in European banks by 20.4 percent, in dollar terms. In the same period, the funds cut their exposure to Italian and Spanish banks by 97 percent.

But these money funds, with total assets of $658 billion, held $309 billion in debt obligations issued by European banks. That’s equivalent to 47 percent of these funds’ total assets. “We’re seeing a lot of the same things in the markets that we saw in the Lehman era,” Carl B. Weinberg, chief economist at High Frequency Economics in Valhalla, N.Y., told Gretchen Morgenson.

“The economic performance of euro zone countries is diverging at a fast clip,” writes Fred Norris of the New York Times, “when financing became hard to get for many exporters, and customers slashed orders.” The divergence is caused by the battle of deflation with inflation, in the long recognized monetary wars. The trend in countries like Germany is continuing for countries whose economies are in decent shape, though the recovery in trade in other European nations appears to be over. “The issue now is a simple one – the buyers cannot afford what they used to buy, writes Fred Norris. “Imports have returned to pre-crisis levels in Italy and France, as well as much more dramatically in Ireland, Portugal and Spain”— the largest nations forced to seek bailouts.

Pretend banks in a pretend world of union. These European nations have no more unity, never had union, like so many couples living together in sin. And when the going gets tough, a lot more people getting going or just tossed out.

Carl B. Weinberg outlined to Gretchen Morgenson of the New York Times what he sees as the major risks which fall into two categories. “Outside the U.S., we never really resumed credit growth since 2009,” he said. “Another hit now would bring credit down and impose a huge squeeze on small businesses throughout Europe and over here also.” Of the two areas of major risk, explained to Gretchen Morgenson, one is the potential for losses incurred by financial institutions that wrote credit insurance on European government debt and the European banks which own so much of that paper. The other major concern is the likely economic hit as banks in the euro zone curb lending significantly. A crucial mechanism linking financial players in the United States to the problems in Europe involves credit derivatives contracts. Carl B. Weinberg expects credit around the world to become even scarcer.

Accounting rule makers even disagree about the right way to approach the manner in which an institution offsets its winning and losing derivatives trades to come up with a so-called net exposure. Standard setters in the United States allow an institution to survey all the contracts it has with a trading partner and compute exposure as the difference between winning trades and losing ones. The Bank for International Settlement, Gretchen Morgenson point out, has a different standard for European banks.

“Stock investors have a bad habit of dismissing problems in the credit markets until it is too late. Make no mistake: the troubles of Europe and its debt-weakened banks will imperil the United States.” For many, it is no longer a question of whether but WHEN Greece will default on its government debt. “Back in the summer of 2007, the stock market was roaring, despite obvious problems in the mortgage market,” writes Gretchen Morgenson.

When credit is the air that business breathes. All over the world. In China, Cheng Siwei, head of Beijing's International Finance Forum and a former deputy speaker of the People's Congress, said interest rate rises and credit curbs to cool overheating were inflicting real pain on thousands of companies used by local party bosses to fund the construction boom. "The tightening policy is creating a lot of difficulties for local governments trying to repay debt, and is causing defaults," he told a meeting at the World Economic Forum in Dalian. "Our version of subprime in the US is lending to local authorities and the government is taking this very seriously."

If he had been correct about the United States in 2008, when Willem H. Buiter then of the European Institute, Professor of European Political Economy, London School of Economics and Political Science said that there “was little doubt, in my view, that the Federal authorities will choose the inflation and currency depreciation route over the default route,” his theory would seem to apply to the Eurpean Union. “Together will the foreseeable increase in actual government liabilities because of vastly increased future Federal deficits, this implies the need for a future private to public sector resource transfer that is most unlikely to be politically feasible without recourse to inflation. The only alternative is default on the debt.” He now works for Citibank.

And about those credit derivative that got AIG into the bailout. Still they are sold, unregulated, without requirements for companies to post reserves like the state regulated insurance industry. And speculators can really play games in such markets, with so little supervision. When the next bubble pops, the credit derivative folks with their Ponzi scheme will be the only people left with money.

Of course those European regulators did not address their own problems. In the words of Gretchen Morgenson, ""ONE troubling aspect of the euro zone crisis is just how large the European banks’ sovereign debt holdings are. "At many institutions, the positions dwarf what American institutions held in mortgage-related securities, for example, when compared to book values. Why? Regulators encouraged European banks to hold huge amounts of European government debt by letting them account for these investments as if they posed zero risk. — and that meant the banks didn’t need to set aside a single euro in capital against those holdings. Now, according to an analysis by Autonomous Research, 43 large European banks hold debt in troubled sovereigns that is equal to 63 percent of those institutions’ book values. Adding to the peril is that these banks are funded primarily by short-term investors, like buyers of commercial paper, rather than by depositors, as is more often the case with American banks. This was the same problem faced by Bear Stearns and Lehman Brothers, which collapsed after short-term lenders fled in panic."

Economic union was not true union. And in the age of the divorce, in the sign of the times, the custody battle was foreseeable in this failed relationship issue, involving credit cards.

“The average life span of the world’s greatest civilizations has been two hundred years … and once a society becomes successful it becomes arrogant, righteous, overconfident, corrupt, and decadent … overspends … with costly wars. Wealth inequity and social tensions increase. And society enters a secular decline.” –Marc Faber

September 20, 2011

When the World Was Flat

This week in football. Like had happened to all of the intercollegiate conferences over the past fourteen months in the States, off the agenda is any public discussion of the possible break-up of the euro zone , the nations using the euro for their currency. Having lost lost confidence in their European counterparts, banks in the US have started shutting European banks out of inter-bank funding markets. Speaking of globalization, eh Thomas Friedman?

In the 2011 playdowns of World Series Kick the Can, more immediately kicking Greece out was not to be spoken of. Of the European Union. Out loud.

The world was playing as if the eurozone was in some kind of neutral transition, unaware that the game was now in penalty time. In a less sophisticated continent, this would be just another week of “kick the can” from the road from one G7 weekend in Marseille along to the Wroclaw meeting of the ‘‘Eurogroup’’ finance ministers which followed seven days later, with all of the potential “irrational exuberance” by fans that their country would not be affected, and that they hoped to continue as always. If the goalkeeper stood up to expectations.

Speaking of hooliganism, the Finns are demanding “collateral” for any new loans to Greece from the central bail-out fund; the Austrians are against the Finns. Tim Geithner was there cheer-leading, urging EU policy-makers to avoid “loose talk,” in playing their variety of kick the can, with so little body contact for which Eurpean ice hockey used to be famous. Angela Merkel may only win a German vote at the end of September with opposition support, while some of her own coalition MPs in particular are fiercely opposed to taking on such a bottomless commitment to the size of the Eurozone nations. And Slovakia does not vote on the bailout until December. As one on Geithner’s team said at Marseille, “Seventy-five per cent of the dark things happening in the world economy are because of the eurozone.”

Divorce Greek-style. European Commission President José Manuel Barroso said that it was time to look at a mechanism to break apart the euro zone. So with the supposedly increased muscle since July of the European Financial Stability Facility – the central bail-out fund – the action requires parliamentary approval for each member nation’s contribution, which still is by no means a certainty. Almost as taboo as the notion of dismantling the currency itself, LIBOR rates have risen over the past thirty days, as the European Central Banks’ dollar funding scheme to stave off the onset of another credit crunch demonstrates a coming fear in credit markets. And the air around Europe provided by credit markets seemed to be polluted, seizing-up the international banking system, one day soon. Yields on Greek debt, Spanish debt, Portuguese debt, and Italian debt continued to climb. After the discussion of ‘‘euro bonds’’ – central borrowings effectively on the back of the Germans to fund all eurozone member governments – was so far from agreement.

The European Central Bank has reported an up-tick in deposits from eurozone banks, an indication the banks feel more secure with deposits in central banks than lending to one another. “To stop financial contagion and manage the bankruptcy of the Greek government, you need to support the banking system. It’s the only solution, and it is appropriate to use European Financial Stability Facility funds,” said Jan Bureš, an economist with Československá Obchodní Banka.

Jean-Claude Juncker, the Luxembourg prime minister presiding over the Eurogroup, called at least for “verbal discipline,” if no other economic discipline. With global central bankers’ support and Amerrican cheerleading, Europe started this week trying on the surface to work as a team. “Of course, it’s not easy to speak now about increasing the funds available in that mechanism, and it will take some time.”

Bank bailouts in Europe in 2011. Bailouts for banks which dull motivation for a bank to invest responsibly. A reasonable solution, and maybe the only solution to debt contagion, “another bailout raises the specter of moral hazard, the idea that in the same way bailouts for governments decrease the motivation for responsible state spending, wrote the Prague Post. “What’s more, if governments bail out banks, it could result in sending those governments into debt.”

Mutual distrust in the times of monetary wars. Visible mistrust in the LIBOR rate since the failure of Lehman Brothers.

As a new credit crisis once again infects the economy, in a stair-step process through industries until debt is destroyed and a more sustainable economic foundation takes root. Starting with Greece, spreading to the financials in French banks, engulfing even Germany. When all those European nations were in this together. And eventually all that globalization sung about at the start of the decade, eventually phases through retail, technology companies in the United States, and the creditor in China. As commodities begin to fall, signaling deflation in Europe. I wonder now what the asking price for Durty Nelly’s, the oldest pub in Ireland, in the middle of no where. It had been ten million euros in January 2010.

Back home as another NFL season got underway after a labor dispute, with the NBA still on strike, each political party is still playing kick the can over American debt. And those in the know had worries from belief that European banks are sitting on crippling losses on their government bond holdings. And in this version of sport, it was like watching the NHL All-Star game, with so little close checking by so many participants. And US government officials were heard in Marseille seeking to shift blame for America’s domestic performance onto the influences from Europe.

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August 10, 2011

The Downgrade

German philosopher Arthur Schopenhauer: “All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” About a rolling depression. As James Fallow wrote five years ago, “As it comes to the old parties, the story boils down to this: in the age of television, Democrats can’t win except when everything is handed to them or goes their way, while Republicans can’t govern without breaking the bank.”

Seaworthy vessels do not sink. There are boat inspectors who check out sinkability of those vessels. Likewise, the sole job of credit-rating agencies like Moody’s Investment Service, Fitch Rating and Standard & Poor’s is to gauge creditworthiness. As market concerns about France’s triple-A credit rating increased, shares in French banking stocks plunged Wednesday on renewed market jitters over their exposure to Greek debt. “If the maturity of Greek government bonds is extended to 2024, this could mean further depreciation of the assets of French banks that are exposed to Greek debt,” said the trader, who spoke on condition of anonymity.

Société Générale SA was trading down 17% at €21.61, as spokeswoman for Société Générale said, “”We categorically deny all market rumors.”

Loan demand, wise men and women argue, is so, those low interest rates won’t go higher anytime soon. So the downgrade by Standard and Poor’s of U. S. debt logically means a shift in credit quality. The rules of the game have not changed, only the grading system. “If the AAA is no longer AAA, then everything else has to get downgraded,” Edward Dempsey explained. And I wondered if Dempsey learned this from watching the effect of expansion on major league baseball.

The credit-rating agencies whose sole job is to gauge the creditworthiness of bonds, all reiterated that France has a stable outlook, with an unchanged triple-A credit rating. France’s credit rating was thrust into the spotlight Monday when cost of insuring its debt against default spiked. Amidst concerns France may be the next triple-A-rated sovereign to suffer a credit downgrade, as another leader came unexpectedly back from holiday to call a meeting with key cabinet ministers along with Bank of France governor Christian Noyer, President Nicolas Sarkozy sought to defend France’s credibility, saying France will do whatever it takes to ensure meeting its deficit-reduction targets.

Not long ago, consumers leveraged their homes to maintain a lifestyles in an era of limited wage growth. Subsequently the U.S. government took on debt to bail out the economy. However the U. S. government now collects less tax revenue than in did in 2008, yet its debt is trillions higher. The current scenario witnessed falling income levels and rising debt levels worldwide. Something has to give.

“They know,” Edward Dempsey writes, “which is why they are desperately trying to create inflation… to pay that debt back with cheaper money.”

In France, new concerns were triggered that the government may turn to banks to help reduce its deficit. During the latest round of global sell-off, changes were implemented to the Euro currency bloc’s bailout mechanism, along with a new bailout package for Greece. Before a July 21st summit, France’s minister for European Affairs had said initiatives weighing a tax on banks to resolve the Greek debt crisis would be discussed, though no mention was ever made in the conclusions of that summit.

In China, money meanwhile continues to flow in, as the government reported on Tuesday that consumer prices jumped 6.5% in July, its fastest pace in three years. With all these other export-dependent Asian economies, since Friday’s downgrade by Standard & Poor’s of the credit rating of the United States, foreign investors have been unloading shares in Korea – Asia’s fourth-largest economy attracting so much capital in recent years, heavily dependent on exports, accounting for roughly more than half of the country’s GDP. Those foreign investors hold about one-third of the market’s total capitalization in Korea. How long before China feels the affects of a recession which is in transition toward an European Depression?

On August 3, the Obama administration released its own eight-page national strategy for countering domestic violent extremism.
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2015 POST SCRIPT: That Obama plan for domestic tranquility seems to have shown up, as U. S. Marshalls have taken to the night sky to monitor at night the Somali community. After nightfall, as the innocent are afflicted by those with power and the money to hire these low-flying planes from LCB Leasing of Bristow, Virginia, like last night over the mosque on University Avenue located in the capital city. So this was the ague what followed Kristallnacht? “Canards,” with both senses of the meanings of the word but more like the wing-like projection on a Cessna. Note the suspicion of others who speak a foreign language, with silence about stolen cellphone data by U S Marshalls, in their coverup with planes registered to these independent contractors like RKT Productions of Bristow, Virginia. So similar to living with domestic abuse on all sides of the great divide. Not racial profiling but the profiling of Creed by the United States Marshalls, so much like the 250 armed protestors who showed up yesterday outside a mosque in Arizona. See the attached article about the abnormal distemper called “Morbus.” Ague. Chilling cover-ups since at least 2007 of this program based upon suspicion of others who speak in foreign tongues — or pray differently than I pray– is the 21st Century kind of xenophobia on North American shores, with those with kingly power wondering about the inner goings-on of its subjects. From out of the plague of September 11th had come not only the Patriot Act, but the thinking that it was somehow Patriotic to spy on your fellow Americans. And the described Cessna flying over St Paul, Minnesota had occurred on the night before the Patriot Act was to expire.

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