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Posts tagged ‘FRANKFURT’

As usual, the real big boys in Germany are well hidden and will not be brought to justice. “The angel of debt” should concentrate in cleaning up her own nest of worms in Berlin and in Frankfurt (Deutsche Bank).Corruption at the centre of the EU surpasses anything we can imagine.A lot more rotten apples have to be taken out of this toxic barrel!

The Slog.

But Merkel’s security arrangements overshadow everything as she prepares to visit Athens

Long-suspected of having massively enriched himself at the Greek Ministry of Defence, Vlassis Kambouroglou has found dead in hotel room in Jakarta. Local medical authorities suggest that Kambouroglou committed suicide.

Kambouroglou was alleged to have been aware of – indeed an active participant in – the corrupt Defence Ministry under the PASOK government between 1997 and 2001. At the time, the Ministry was purchasing large consignments of German munitions, aeroplanes and

In addition, Vlassis Kambouroglou had in the best been in the spotlight concerning Russian arms deals under Boris Yeltsin, as well as earning huge profits in cooperation with Arab weapons merchandisers.

Principally, however, Kambouroglou was accused of being party to the bribery and money laundering network involving former Defence Minister Akis Tsochatzopoulos.  He was the managing director of Drumilan International, which was involved in the sale of…

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The death of the euro is more likely than its survival

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)

By Dan O’Brien

ECONOMICS: It was once unthinkable that post-1945 Germany would ever turn its back on Europe

AT THE beginning of each year, this newspaper publishes a preview of the coming 12 months. In the 2011 preview, I put the probability of the euro breaking up at 15 per cent. One year later, in the 2012 preview, it seemed close to – but still below – 50 per cent.

Now, more than halfway through 2012, I find it impossible to avoid the conclusion that the probability of break-up has gone above the 50 per cent threshold. In other words, the single currency project is more likely to collapse than to survive in its current form. Financial, economic and political problems appear too great to be overcome by a group of 17 countries that have proved unable to end the crisis.

Most developments so far this year have been negative. Spain and Cyprus have joined the bailout club and Slovenia is about to bring to six the number of euro zone countries that cannot sustain themselves unaided.

A €1 trillion liquidity injection into the financial system by the ECB failed to bring lasting calm. Banks across the continent are now more fragile than ever and the system’s impairment is a major contributing factor to renewed recession in the euro zone. Yet again yesterday, Frankfurt under-delivered, having over-promised in the days leading up to its monthly meeting.

The bifurcation of the euro zone sovereign bond market has reached new extremes, with some countries able to borrow almost for free, while a growing number are unable to borrow at all.

The potentially very important agreement among euro zone leaders on June 29th to move towards a banking union has yet to live up to any of its potential. Big questions remain about how fast and how comprehensive

full article at source: http://www.irishtimes.com/business/opinionandanalysis/dan-obrien


Yesterday’s non event press conference by the liars, running the ECB has yet again been exposed. With Mario Draghi’s president of the European Central Bank  words still ringing in our ears “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” “And believe me, it will be enough.” has turned out to be worthless and a waste of everybody’s time. This toothless and clueless politician/banker has yet again been exposed to be a puppet in the hands of the real masters of our universe the Deutsche Bundesbank. His personal credibility is now shattered. The real bosses have again made it clear its Germanys way or no way .

This can only mean one thing and that is Germany is now working quietly on a breakup of the euro zone currency, and it is preparing for the possibility of the reintroduction of the Deutsche Mark! Germany has now convinced itself that if it is to continue with the Euro It will be left with the debts of the rest of Europe .Having already pumped up to 3.75 Trillion of its citizens savings into this half-baked currency it is now time for the big moneymen to yet again to cash in on their bets and win, win, win again!

They have been bailed out in the bank bust ups and now they have had enough time to place their bets the other way round and a breakup of this currency will be a mega lottery will for the well established hedge funds and bondholders who have only benefited from this financial meltdown. These hidden moneymen only need to engineer volatility into the markets to make money.

Eurozone finance ministers are due to approve the bailout package for Greece ( The real story)


Greece-1178 (Photo credit: archer10 (Dennis) Busy)

Tonight, the Eurozone finance ministers are due to approve the bailout package for Greece. The MSM widely expects them to do so. As the earlier Slogpost today argued clearly, if they do, it will be because they can only keep their third-rate currency zone and anti-democratic Union going by dealing with crooked people as addicted to the gravy train as they are. Those supposedly representing their citizens in the Athens Government have, in turn, acquiesced in every increasingly bonkers Troika demand for austerity and repayment, because not to do so would take away their seedy access to the People’s money. My God, I’m sounding like a 1970s agitprot Trot. That’s how unpleasant this crew are.

I think a minority of the people in Brussels and Frankfurt know exactly what they’ve unleashed by letting Athens apply CACs to last week’s debt swap. One or two in Greece do, but they couldn’t care a fig anyway. Most of the Troughing Circus in Europe’s capitals have no idea what’s coming from out of Pandora’s derivatives box at all. This is because they are either ignorant or stupid, and in some cases both. But even in the near term, if any in their ranks are smiling at the thought of having nipped the regional crisis in the bud, they should take a look at what’s been happening down here on Earth since they let Venizelos and his mob go ahead to coerce investors.

With variations taken into account, you can buy four Greek euro bonds at the moment for the price of one. That there is a market at all has nothing to do with Greek recovery hopes, and everything to do with an innate madness in modern finance: for as a form of barter, everything now has to have a value. In banks and fund management rooms throughout the Globe, high-IQ idiots are already looking at new ways to variegate, slice and repackage junk and proffer it as a thing of value…..when in reality its value is nil.

full article at source : http://hat4uk.wordpress.com/2012/03/12/think-not-what-you-can-do-for-the-european-union/

Comment :

I came across this blog the other day and can only say I am delighted to have found this well informed source .Not only does he have an excellent understanding of the facts but he is not afraid to spill the beans so to speak on the gangsters in Greece and in Brussels .Now if only we had someone in Ireland ready to give us an inside track on the daily corruption occurring there, we might get the ordinary people to realize that they are been well and truly screwed .Just as you have dodgy politicians on the take in Greece we have the same gutless politicians in government on the make in Ireland .This is a wonderful source of the real news apart from  the crap we get from the established state run media .well done !

Germany’s gold: It’s time for an accurate accounting

One of the most important assets of the German people is the gold that has been accumulated over the years through their hard work and savings. Individuals hold some of this gold, but much of it is kept with the Bundesbank as an essential rainy-day reserve, held just in case monetary turmoil requires its use to re-establish a stable currency.

This gold has been entrusted to the Bundesbank and provides peace of mind knowing that it is there. But where is it really? And just as important, how much is there? Unfortunately, we do not know the answer to these questions.

The Bundesbank’s latest Annual Report states: “As of 31 December 2009, the Bundesbank’s holdings of fine gold (ozf) amounted to 3,406,789 kg or 110 million ounces. The gold was valued at market prices at the end of the year (1 kg = €24,638.63 or 1 ozf = €766.347).” The total value therefore reported by the Bundesbank on its balance sheet is €83,939 million. There have been, however, repeated claims suggesting that the Bundesbank’s gold vault is empty. The reporting by the Bundesbank in its Annual Report does nothing to disprove these claims.

The Annual Report states that the Bundesbank owns €83,939 million of “Gold and Gold Receivables”. Surprisingly, it does not distinguish between these two fundamentally different assets, nor does it report how much of each it owns.

Clearly, gold stored safely and securely in the Bundesbank’s vault in Frankfurt has a different level of risk than gold that has been loaned out. Physical gold is a tangible asset, and therefore does not have counterparty risk. But a loan – regardless whether you are lending euros, dollars or gold – is only as good as the creditworthiness of the borrower. This lesson was learned the hard way, for example, by the central bank of Portugal. It had loaned gold to Drexel Burnham Lambert, and that gold receivable was still outstanding when this bank failed two decades ago.

By not reporting “gold in the vault” and “gold receivables” separately as two different assets, the Bundesbank is saying in effect that cash and accounts receivables are the same thing. Of course they are not, and their fundamental difference is made clear by Generally Accepted Accounting Principles, which highlights a deficiency in the Bundesbank’s Annual Report.

Section 26(2) of the Bundesbank Act states: “The accounting system of the Deutsche Bundesbank shall comply with generally accepted accounting principles.” By reporting “gold in the vault” and “gold out on loan” as one item, the Bundesbank is not reporting its two different gold assets according to generally accepted accounting principles.

There have been reports that the Bundesbank believes the way it accounts for gold is required by International Monetary Fund rules, which they contend supersede Section 26(2) of the Bundesbank Act. But if so, one can reasonably ask, who controls the Bundesbank? The German people or the IMF? Until these questions are answered, the public may never learn how much gold the Bundesbank has stored safely and securely in Frankfurt, and how much it has loaned, thereby perpetuating the rumour that the Bundesbank’s gold vault is empty.

Given the ongoing monetary turmoil and the growing worries about the inflationary impact of rising commodity prices, those rainy-day gold reserves may soon be needed. So when will the Bundesbank provide an accurate accounting of Germany’s gold reserves?


Debt Burden Falls Heavily on Germany and France


FRANKFURT — French and German banks have lent nearly $1 trillion to the most troubled European countries and are more exposed to the debt crisis than the banks of any other countries, according to a new report that is likely to add pressure on institutions to detail their holdings.

Enlarge This Image

Ronald Zak/Associated Press

Jean-Claude Trichet, left, president of the European Central Bank, with Josef Ackermann of Deutsche Bank.

French banks had lent $493 billion to Spain, Greece, Portugal and Ireland by the end of 2009 while German banks had lent $465 billion, according to the report by the Bank for International Settlements, an institution based in Basel, Switzerland, that acts as a clearing house for the world’s central banks.

The report sheds light on where the risks from Spain and other troubled euro-zone countries are concentrated, but left open the question of which individual banks would be most endangered by declines in the prices of sovereign bonds or a surge in bad loans made to companies and individuals. The B.I.S. did not identify individual institutions, in line with its confidentiality rules.

Voluntary disclosure by banks has been uneven. Hypo Real Estate Holding, a real estate and public-sector lender based near Munich, has put its exposure to government debt from the four countries plus Italy at more than €80 billion, or $97 billion. Deutsche Bank, in Frankfurt, says it holds €500 million in Greek government bonds and no Spanish or Portuguese sovereign debt.

But there has been little disclosure from the hundreds of smaller mortgage lenders, state-owned banks and savings banks that dominate banking in countries like Germany and Spain.

“More information and disclosure on bank and financial institutions’ holdings of periphery paper would be beneficial,” Jacques Cailloux, an economist at Royal Bank of Scotland, said Sunday. Mr. Cailloux had not seen the report — which was released to news organizations on the condition that they not publish the findings until late Sunday — but he was one of the authors of a Royal Bank of Scotland study in May that anticipated many of the B.I.S. findings.

All told, Spain, Ireland, Portugal and Greece owe nearly $1.6 trillion to banks in the 16-country euro zone, either in the form of government debt or credit to companies and individuals in the four countries, the report said. Credit from French and German banks accounted for 61 percent of that total.

Uncertainty about which banks may be at risk from Greece and the other countries has fed mistrust among financial institutions, causing interbank lending to wither and leading European Union leaders to take extraordinary steps to prevent a financial collapse.

The European Central Bank has been pressuring E.U. regulators to release data on which banks may be most at risk, to separate the healthy banks from those that may be in trouble.

“We are encouraging them to do whatever is necessary to improve the sentiment of the market because that is the real issue today,” the E.C.B. president, Jean-Claude Trichet, said at a news conference last week.

Mr. Cailloux said that releasing the results of so-called stress tests, which examine banks’ ability to withstand market shocks, would be useful if the tests were based on realistic possibilities and there were measures in place to bolster the banks that prove vulnerable.

The lack of information about which banks could suffer most from Europe’s debt crisis led to the near-seizure of money markets in early May. That, along with plunging prices for sovereign bonds from the weakest countries, prompted the European Union and the International Monetary Fund to pledge nearly $1 trillion in debt guarantees for euro-zone governments.

The European Central Bank also took the unprecedented step of buying European government bonds in the open markets, where trading had nearly come to a halt.

“There is mounting evidence that the blind don’t want to lend to the blind,” Ed Yardeni, president of Yardeni Research, wrote in a research note last week.

The B.I.S. figures confirm estimates of the level of risk by analysts at Royal Bank of Scotland and others, which had been extrapolated from B.I.S. data and other sources. But the B.I.S. report provides more detail on country-by-country exposure, and the organization’s imprimatur means it will be difficult for critics to dismiss the information as exaggerated.

Most of the claims held by the French and German banks were from companies, individuals or other banks, and Spain was the biggest debtor country. But much of the holdings were government debt — $106 billion for French banks and $68 billion for German banks. The figures, which the B.I.S. presented in dollars, may offer a clue why the French government, in particular, has been keen to provide aid to Greece and the other troubled countries.

Private-sector debt from Spain, Greece, Portugal and Ireland has also become a concern, because government austerity programs and economic downturns in those countries may also take a toll on the ability of companies and individuals to repay loans, and lead to a surge in defaults.

The risk from the so-called peripheral countries is by no means limited to France and Germany. British banks have lent $230 billion to Ireland, while Spain — besides being one of the countries with a debt problem — has lent $110 billion to residents of Portugal.

The B.I.S. put total exposure by U.S. institutions to Spain, Greece, Portugal and Ireland at less than $200 billion.

source http://www.nytimes.com/2010/06/14/business/global/14eurobank.html?ref=jack_ewing

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