3960 days ago
With the European Central Bank (ECB) the comedy never stops. You and I know that a material number of European banks and financial institutions are bust. Even a total Euro loon like Michael Heseltine does not, I suspect, stash any of his millions with Greek, Spanish, or Italian banks these days. But the ECB wants us all to think differently and with its 2014 stress tests is going to prove it. Oh yes.
Let me first take you back to October 23rd of last year when the ECB tried to reassure those of us who have our doubts about some of the banks in the PIIGS nations by saying that it in 2014 it would use “stricter” rules than before when testing the balance sheets of the Eurozone banks. There was a firm pledge to insist that all banks could show a capital ratio of 8%. How very prudent Mr Draghi.
Now wind forward to this week and the ECB is now saying (according to Bloomberg) that the Capital Requirement when it runs the balance sheets through a recession stress test will be 6%, i.e. the same as in 2013. Stricter? Er... perhaps not after all. But it means that the ECB will be able to show that nearly every bank is solvent even in a recession scenario and so we can all sleep safely in our beds. Stop worrying little people everything is okay.
And it gets better.
4239 days ago
In Greece youth unemployment is c60%. Ditto Spain. In Eire 30%. But these figures dramatically understate, yes I repeat understate, what is going on and it is the Euro that is to blame. An entire generation across much of Europe is being pulverized, systematically smashed and it is the Euro worshipping leaders of the same countries who are to blame. This is almost a crime against humanity.
Why the understatement?
4268 days ago
Cyprus has become the fifth Eurozone nation to get a bailout but this one is different. At the insistence of the Germans one condition of the bailout is that private citizen’s pay and they will do so via a tax of up to 10% levied on all bank deposits in the Mediterranean island. This is pure socialism in action – the idea that the legitimate savings made by an individual as a result of fully taxed income can just be seized by the State. It is a horrific precedent.
For having established that the State can effectively seize whatever it wants whenever it wants you rather accept that you have no private property or savings. You can work your socks off, pay taxes to support those who do not work, save prudently so that you will not be a burden on the State or your family in the future and then one day the State just seizes your money. Heck why stop at 10% of bank deposits? Why not seize land, houses, etc.? The precedent is now there and this is an EU precedent.
David Cameron wishes to remain part of an organisation which thinks that State sponsored theft of private wealth is acceptable. I do not and nor, I suspect, do most British people. If the Conservative party and for that matter the Lib Dems and Labour support State sponsored theft that is fine they should be honest about it and we can all vote UKIP. But will the established parties stand up to the political elite in the Evil Empire and say
4556 days ago
Gold raced ahead on Friday by almost $100 to $1625 oz. I have long predicted $2,000 gold for 2012 – I actually think we are heading rather higher. For weeks gold has been slipping (to a low of $1525). This has not been the fault of gold but of the morons who run (I use the word loosely) the EU. As the Euro has tanked there has been a flight to the US dollar and gold has slipped in dollar terms as a result. But now there are worries about the US.
