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Posts tagged ‘Finland’

Eurozone crisis live: General strike underway in Greece against austerity programme

Countries using the Euro de jure Countries and...

Countries using the Euro de jure Countries and territories using the Euro de facto Countries in the EU not using the Euro (Photo credit: Wikipedia)

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There are signs of serious jitters in the City today. As feared, the yield on Spain’s 10-year bonds has now risen about 6% (6.03% at pixel time). The stock markets are all still lower,, with Spain’s IBEX down 2.66%.

There are several triggers for this sudden chill wind. The protests in Spain last night are certainly a factor – with analysts trying to assess whether the Spanish people have been pushed to the limit. Portugal’s u-turn on its latest tax rises (which threatened a political crisis in Lisbon) has also served as a reminder that politicians are still answerable to the people.

Another factor is that the eurozone’s commitment to recapitalise its banks through the European Stability Mechanism appears to be fraying. A statement last night from the finance ministers of Finland, Germany and the Netherlands appeared to reject some of the decisions made at last June’s summit (great analysis here on FT Alphaville).

If legacy banking assets aren’t going to included, how on earth with Spain and Ireland scrub their financial sectors clean?

The fear that Germany, the Netherlands and Finland have reneged on the deal has also hit Irish sovereign debt, pushing up the yield on its 10-year bonds to 5.213%.

As Peter Spiegel wrote in the FT today:

The need for Ireland and Spain to pump billions into their banking sector to keep them afloat forced otherwise fiscally prudent governments into eurozone bailout programmes with painful austerity measures that have exacerbated recessions.

Under the June deal, such bailouts would no longer be the responsibility of national governments but would shift to the eurozone rescue fund, the European Stability Mechanism, which was given the authority to inject capital directly into struggling banks. As part of the deal, Ireland was given a promise of equal treatment with Spain……………………………….

full article at source:http://www.guardian.co.uk/business/2012/sep/26/eurozone-crisis-general-strike-greece-spain

Euro zone lacks engine for growth

By Dr.Constantin Gurdgiev

In my previous postings here, I have suggested that by mid-year, Greece will be back in the market’s crosshairs. Now, time to look beyond that which consumes the media space once again.

The latest data on first-quarter GDP growth shows that the euro area economy has now trifurcated into a slow-growth core (Germany and Finland, plus Estonia and Slovakia), a Titanic-like periphery (Italy, Spain, Greece, Cyprus, Portugal and the Netherlands) and a no-growth pool containing all the other member states. The only uncertainties remaining at this stage are the smaller countries yet to report their figures for the quarter: Ireland (in an official recession since the fourth quarter of 2011); Luxembourg (which was still expanding at the end of 2011), Malta (which registered quarter-over-quarter contraction in the last three months of 2011); and Slovenia (which had a third consecutive quarterly contraction in GDP

full article at source: http://www.theglobeandmail.com/report-on-business/international-news/global-exchange/international-experts/euro-zone-lacks-engine-for-growth/article2433566/

Finland To Support Portugal Bail Out In Exchange For Collateralization, Asset Sales

Submitted by Tyler Durden

on 05/12/2011 07:35 -0400

And so the stealthy campaign by Europe to asset strip its debtor prison nation continues. After on Saturday it was made clear that Europe will force Greece to issue an effective DIP loan ahead of its own bankruptcy, collateralizing post-petition creditors, and pushing existing sub noteholders lower in the cap structure, so the same scheme will now be used by Europe to grant Portugal rescue funding in exchange for Finland’s “agreement” to help save the country. Per Bloomberg: “Finland will back a bailout for Portugal provided the third euro member to require aid in 12 months agrees to conditions including state asset sales. In addition, Finland wants a guarantee that bailout donors will get their loans repaid before private investors, he said.” Which simply said, means that as PIIGS, already held hostage by a monetary union which threatens with world extinction should it be unwound, and by bankers who promise to never lend money should they be forced to take even once cent in senior debt impairments, will next be forced to literally sell themselves off at n blue light special auctions, where the liquidation sale biggest bidders will be none other than the very same financial institutions who have put these countries in their terminal predicament. Incidentally, all this is coming to municipalities and local governments in the US very, very soon..

full article at source:http://www.zerohedge.com/article/finland-support-portugal-bail-out-exchange-collateralization-asset-sales#comments

Comment:

 

Here in Ireland our new government who got into government by promising a change in policy. But as soon as they got in, we found out they there was to be no change.

They have in fact gone one step further than the previous government, they have now proposed to raid the Irish citizen’s private pension’s funds to supposedly fund a half baked jobs initiative.

I believe we are in the first stages of an outright run on the Irish banks as they have been experiencing massive outflows of deposits and I further believe, the citizens of Ireland have every right to fear a direct grab by the government of their deposits in what’s left of the toxic banks As the current exposure of 150,000,000,000 Euros by the ECB is based on the deposits held by these banks and the government are committed to ensuring that they hold on to these deposit levels.

More Nails in EU Coffin?

Monday, April 18, 2011 – by  Staff Report

Massive gains for a massive man – the nationalist True Finns’ shock election result in the 2011 Finnish general election befits the burly figure of their leader, Timo Soini. And there is much brain to go with the brawn, according to journalists who have followed his party’s advance from the margins of politics – from just 4.1% of the vote in 2007 to about 19% four years later. Brain, wit and charisma applied to a Euro-sceptic and nationalistic agenda – a potent mix worrying EU strategists who are mindful that Finland, unlike other eurozone states, has reserved the option of vetoing financial bail-outs. – BBC

Dominant Social Theme: The EU shall overcome. The union is not to be trifled with.

Free-Market Analysis: There is yet a hammering sound surrounding the EU. Some say it comes from those who are busy building a box in which to contain the region’s endless sovereign debt crisis. Others might be persuaded the box is the EU’s coffin. The distinction is important not only to the EU but to the Anglo-American power elite that is running as hard as it can to refine plans for one-world government before the Internet and the rolling worldwide inflationary recession generates a critical mass of opposition to such plans.

Of course there IS no power elite with plans for a New World Order according to mainstream Western media. Never mind that in an interview with the website Infowars over the weekend one of America’s pre-eminent television broadcasters went on record as saying that indeed there was. “Lou Dobbs: Elites Are Setting up a One World Order,” read the Infowars headline. And Dobbs’ perspective is shared at least in part by other prominent US officials, including Congressman Ron Paul (R-Tex) who may once again be a leading candidate for US president in upcoming Republican primaries.

Yes it’s fairly obvious what is going on, given the massive global regulatory infrastructure that’s being put in place. The Internet by now has shredded any pretense of that such plans are not being pursued and the result has been a change in elite tactics from what we can tell. The elites have decided to strike back by substituting intimidation for secrecy.

As we report in today’s other article, such a strategy carries risk. By increasingly attempting to promote its policies through via brute political, economic and military force, the Anglo-American power elites make each individual battle into an entire war. Lose just one contest and the inevitability of global governance begins to drain away. This is why even the smallest battles such as who will be president of the Ivory Coast (see other article today) take on massive resonance and are reported in detail by the mainstream press for day and weeks.

It is a kind of dominant social theme itself: The new world order is a global juggernaut that will mow down all that stands before it; the instrumentalities of global government are here to stay and will only get stronger. This invests every mechanism of global power with a resonance that the elites may not have intended to project. Surely, it adds inordinate significance to each battle; yet in a most difficult financial era there are many such skirmishes going on almost every day.

There is an alternative perspective, one we have advanced many times, which is that the Anglosphere elites seek to enhance and encourage the military, economic and political chaos that has gradually been descending on the world over the past few years. Despite their protests to the contrary, this arguments holds that the elites are actively working at various kinds of destabilization in the hopes of building up a single fiat-currency system that will further cement an global Order.

Just over the weekend, World Bank President Robert Zoellick‘s comments that a global economy is “one shock away” from a crisis in food supplies and prices received wide coverage. The comments, meant as a warning, seemed to us to express an almost hopeful sentiment. Zoellick and others like him seem to yearn for crises, one after another, that allow them to further expand their power and the reach of their international facilities.

But some shocks are more sought-after than others. A crisis that expands elite powers is a preferred one; but these days economic, military and political crises often threaten to undermine the authority and structures of the powers-that-be. Finland is a good example. EU regulatory authorities spent weeks downplaying the idea that Finnish Euroskeptics would win enough votes to have an impact in Finland as regards the larger EU debate over PIGS insolvency. And yet this has proven not to be true.

The “True Finns” party has now surged from just 4.1% of the vote (in 2007) to about 19% four years later. Finland’s parties can veto financial bail-outs, and the head of the True Finn‘s party is already on record as saying there will need to be changes to the Portuguese bailout plan that is in the midst of being negotiated by the IMF. “The package that is there,” True Finns leader Timo Soini is reported as saying, “I do not believe it will remain.”

Spain itself remains a concern. Late last week there were more denials about the severity of the country’s economic condition. According to a recent article posted at Bloomberg, Belgian Finance Minister Didier Reynders believes Spain’s fiscal position has improved and that “Spain [has] a better position than before,” Reynders, in an interview with Bloomberg, said “Spain [is showing] a very good improvement and I am sure that it will be enough.”

Reynders optimism was echoed by European Union Economic and Monetary Affairs Commissioner Olli Rehn who is “quite confident,” according to Bloomberg, that new financial aid to Portugal will finally stem the rolling, year old Sovereign debt crisis. (Tell that to the Finns.) Yet the Wall Street Journal is not sure about Spain’s position and in a fairly detailed article posted over the weekend, Irwin Stelzer summed up the Spanish economic outlook in terms that were decidedly less optimistic:

Spain’s central bank expects the economy to grow a mere 0.8% this year and 1.5% in 2012. Even that is above the economists’ consensus forecasts of 0.6% and 1.2% for those years, and far above Citigroup Global Markets’ forecast of “close to zero.” Stunted growth will make it very difficult for Spain to reduce its deficit from the 2009 peak of 11% and over 9% in 2010 to 6% this year. “That target will not be breached,” promises Ms. Salgado.

Only maybe, since Madrid is finding it somewhere between difficult and impossible to rein in the spending of largely autonomous regional governments. The unemployment rate seems stuck above 20% (40% for younger workers), jobless claims rose to 4.3 million last month, and analysts at Citigroup say that “unemployment has resumed its rising path.” Real disposable income is declining at the fastest rate since records began in 1970. This hardly suggests a recovery in domestic demand is around the corner.

To make matters worse, the ECB’s interest-rate increases will raise the monthly mortgage payments of Spanish home-owners, already hit by rising inflation. Then there are the twin problems: the housing and banking sectors. There are about one million unsold homes on the market, which researchers at financial consultant GaveKal point out is three times the inventory in the U.S. on a per capita basis. Don’t look there for new construction jobs for many years.

But do keep a close eye on the banking sector, which Fathom Consulting estimates has to roll over debt equivalent to 5% of the nation’s GDP this year and 9% in 2012. Spain’s banks have an estimated exposure of €65 billion to Portugal, the largest of any euro-zone country and twice the exposure of Germany and of France. With house prices falling and default rates set to rise, the already under-capitalized banks will need to raise about €20 billion to offset write-downs, says the government; Moody’s says that the cost of filling the balance-sheet hole created by write-downs could be as high as €120 billion.

In deciding whom to believe consider this: The government proudly announced that China’s sovereign wealth fund had agreed to invest €9 billion in Spain’s banks, the fund’s largest single investment. Untrue, says China Investment Corporation. An “error of communication” says an embarrassed Spanish government.

Again, it may be that the powers-that-be seek additional chaos, especially when it comes to the euro. The idea would be that so long as the EU itself remains a regional power, the euro can be swapped out for an international currency based on the IMF’s SDRs and global governance would therefore be much advanced.

Of course this is a very neat scenario and in real-life things are seldom, if ever, so neat. What seems clear is that the elites are not shifting the course nor the urgency with which they are approaching globalization. Because the veil of secrecy has been ripped away, intimidation – immovable rigor – is what’s left.

But this implies a kind of cognitive dissonance, a contradiction in terms. If there can be no turning back and if each elite facility and each military action must sustained without retreat, then how does one create sufficient chaos? At some point, elite mechanisms themselves must be seen to fail or chaos can cannot sufficiently increase. But if the mechanisms fail publicly, then the aura of invincibility that the elite seems to want to cultivate is penetrated and degraded.

Conclusion: We have no answers – only observations. It seems to us that the Internet itself is apparently pushing the power elite into a series of contradictory platforms and strategies. The elites may seek chaos out of which to build more centralized global governance, but they will have to compromise their own structures to do create it. We shall watch with fascination to see how this is accomplished. We wonder if it can be.

source:http://www.thedailybell.com/2105/More-Nails-in-EU-Coffin.html

Comment:

It’s not surprising to see the fins stand up to the EU just look at what is happening to us we are been forced to make good on the gambling debts of German and French banks .Because of the Internet we the ordinary people have a tool the elite want to take away hence the internet kill switch!

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