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Posts tagged ‘Germany’

Greece Willing To Do “Whatever It Can” To Reach Deal After Greek Liquidity Situation Deteriorates Rapidly

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Three days ago we observed that after surging in January, Greek deposits had slowed to a trickle in February, with just €1 billion in outflows, following the €12 billion redeemed in January. At least that was the case according to Reuters which cited a “senior banker who declined to be named.” The news appeared a little too good to be true, and as we suspected was merely an attempt at boosting “Greek leverage” ahead of the Euromeeting which ended in a spectacular, chaotic fashion, and no decision being made. Remember: the greater the bank outflows, the weaker the Greek negotiating stance when debating the Eurozone (whose leverage in turn is calculated by the level of the Eurostoxx 50).

Overnight Greek Kathimerini came out with a different report, one which appears to capture the reality of the situation better, especially following Wednesday’s disappointing Eurogroup meeting and yesterday’s news that the ECB has boosted the Greek ELA availability from €59.5 to €65, suggesting the bank run had accelerated and bank funding was on the verge of evaporating again.

Senior bank officials have told Kathimerini that almost all the liquidity available to Greece (59.5 billion euros) has been absorbed and that banks’ total dependence on the Eurosystem amounts to 90 billion. The rapid deterioration in liquidity conditions has been attributed to the uncertainty that arose when the snap general elections were called as well as the new government’s inability to reach a swift agreement with the country’s creditors. Following the 4-billion-euro outflow in December and 12 billion in January, bank deposits have already shrunk by another 3 billion this month.

So the €1 billion deposit outflow now becomes €3 billion in just 48 hours? What a difference “anonymous sources” make.

As for the logic behind the ECB’s decision to first yank Greek collateral and then to trickle it to Greece on an ad hoc basis, it is quite simple: keep Greece on a short leash and remind it that should it try to pull away, all the funding will disappear.

Frankfurt’s decision shows its intention to place stricter controls on the supply of cash to Greek banks in the wake of Wednesday’s inconclusive Eurogroup meeting. “The more time that passes without an agreement with the eurozone, the more the ECB will restrict the limits by supplying liquidity that only covers a few days’ needs, and as the February 28 deadline approaches [when the bailout extension expires], the risk of an ‘accident’ will grow,” a bank official noted.

And of course, while “The ECB council is to convene again on Wednesday to examine another increase to the Greek limit” everything depends on the outcome of Monday’s Eurogroup meeting.

Which brings us back precisely to the negotiation at the heart of the Greek drama, where as we reported yesterday, it was first reported that Germany is caving in its strict demands toward Greece.

Greece and Germany are pursuing a deal on the conditions required to continue the Greek bailout as each side signals a willingness to compromise, according to government officials taking part in the talks.

 

Germany won’t insist that all elements of Greece’s current aid program continue, said two officials in Berlin. As long as the program is prolonged, they said, Germany would be open to talking about the size of Greece’s budget surplus requirement and conditions to sell off government assets.

full article at source: http://www.zerohedge.com/news/2015-02-13/greece-willing-do-whatever-it-can-reach-deal-after-greek-liquidity-situation-deterio

BUNDESBANK v ECB: Round 13

The latest article  on the German and ECB  antics !an excelent article from the Slog Blog !

By John Ward

Here we are again, back at the Target 2 system that allows peripheral eurozone States to get a stealth bailout by having huge outstanding liquidity (loans really) from the ECB, while Germany has equally huge liquidity (deposits really) at the central bank. Target 2 was originally designed purely as a monetarist transmission system. But national ClubMed central banks have perverted this by simply drawing on it, up to but not including putting anything back.

Controversial (but very smart) German economist Hans-Werner Sinn continues to argue that “It is as though the ECB were acting as a purchasing agent of German savings, which it then services and distributes to the crisis countries at whatever conditions it deems appropriate”. Sinn represents Bankfurter concerns, and for years he has been rubbished by CDU spokespeople/Berlin bureaucrats who did the “Yes I know it looks like a turd Tsunami heading our way, but it’s really only accountancy of no significance”. Clearly Sinn was and is on the ball: and in the New Germany that has risen from the Bundesrepublik elections, he is now in fashion rather than out on the wacky moons of Saturn…..

full article at source: http://hat4uk.wordpress.com/2013/11/14/euroblown-join-up-the-dots-and-germanys-banking-union-game-plan-becomes-clearer/

U.S. Blasts Germany’s Economic Policies

 

Employing unusually sharp language, the U.S. on Wednesday openly criticized Germany’s economic policies and blamed the euro-zone powerhouse for dragging down its neighbors and the rest of the global economy.

In its semiannual currency report, the Treasury Department identified Germany’s export-led growth model as a major factor responsible for the 17-nation currency bloc’s weak recovery. The U.S. identified Germany ahead of its traditional target, China, and the most-recent perceived problem country, Japan, in the “key findings” section of the report.

The U.S. is itself dealing with persistently weak growth and has faced complaints from some countries about its attempts at reviving a sluggish economy, including the Federal Reserve’s easy money policies. Finance leaders have also taken aim at the U.S. over the global economic impact of fiscal wrangling between the White House and Congress, including the government shutdown and debt-ceiling fight………………………..

see full article here:

http://online.wsj.com/news/articles/SB10001424052702304527504579168113091545256?mod=mktw

Exactly As I Warned, “Cyprusization” Goes Mainstream! Ireland On Tap, Next Up For Citizen Fund Confiscation (Again)

By Reggie Middelton

Last year I wrote “The “Believe In Germany Bailing The EU” Trade: Go Long Magic Wand Raw Materials & Harry Potter Paraphernalia” wherein I warned of both the risk in Germany as a save all, and the risks posed to European FIRE sector companies (and insurers in particular) as a result of this believe in magic over math.

Well, now Bloomberg reports that Poland has literally confiscated private pension manager’s bonds with essentially no compensation, ex., they stole them, as per Bloomgerg – Poland to Cancel Bonds From Pension Funds in System Revamp:

Poland will take over and cancel government bonds held by its privately managed pension funds, stopping short of fully “nationalizing” the system as it seeks to curb public debt, Prime Minister Donald Tusk said.

Whaaaat!!!??? Cancel bonds? Outright theft! Listem carefully here. It’s not as if I didn’t tell you so. Now, what happens to those insurers whose pension funds under management were robbed? Again, revisit “The “Believe In Germany Bailing The EU” Trade: Go Long Magic Wand Raw Materials & Harry Potter Paraphernalia“. This plain as day and easy to see coming, and there’s a lot more coming!

Remember my many warnings this year on the Irish and EU banking system:

Transparency In The European Banking? Madness, I say! Sheer, Utter Madness!!!

full article at source: http://boombustblog.com/blog/item/9144-exactly-as-i-warned-cyprusization-goes-mainstream-ireland-on-tap-next-up-for-citizen-fund-confiscation-again

QE Worked For The Weimar Germany For A Little While Too

By: LewRockwell

Michael Snyder writes: There is a reason why every fiat currency in the history of the world has eventually failed.  At some point, those issuing fiat currencies always find themselves giving in to the temptation to wildly print more money.  Sometimes, the motivation for doing this is good.  When an economy is really struggling, those that have been entrusted with the management of that economy can easily fall for the lie that things would be better if people just had “more money”.  Today, the Federal Reserve finds itself faced with a scenario that is very similar to what the Weimar Republic was facing nearly 100 years ago.  Like the Weimar Republic, the U.S. economy is also struggling and like the Weimar Republic, the U.S. government is absolutely drowning in debt.  Unfortunately, the Federal Reserve has decided to adopt the same solution that the Weimar Republic chose.

The Federal Reserve is recklessly printing money out of thin air, and in the short-term some positive things have come out of it.  But quantitative easing worked for the Weimar Republic for a little while too.  At first, more money caused economic activity to increase and unemployment was low.  But all of that money printing destroyed faith in German currency and in the German financial system and ultimately Germany experienced an economic meltdown that the world is still talking about today.  This is the path that the Federal Reserve is taking America down, but most Americans have absolutely no idea what is happening.

It is really easy to start printing money, but it is incredibly hard to stop.  Like any addict, the Fed is promising that they can quit at any time, but this month they refused to even start tapering their money printing a little bit.  The behavior of the Fed is so shameful that even CNBC is comparing it to a drug addict at this point…

full article at source: http://www.marketoracle.co.uk/Article42405.html

Facebook and Apple escape censure over ‘sending data to US’

DATA Protection Commissioner Billy Hawkes will take no action against the Irish-based subsidiaries of Facebook and Apple – who stand accused of handing over personal data of hundreds of millions of Europeans to national security organisations in the US via their parent companies.

The decision is set to cause ructions with other European countries, notably Germany, which has been infuriated over revelations that the US accesses the data of EU citizens.

Mr Hawkes (below) responded to complaints filed against the two multinationals by the Vienna-based organisation Europe v Facebook.

He said he cannot act on the basis of the precedent set by the European Commission‘s own ‘Safe Harbour’ decision brought in 13 years ago.

Under the Safe Harbour directive, American companies in Europe can only give data such as a person’s emails or phone call records to US authorities if the US fulfils a number of criteria such as protecting the information, and doesn’t pass it on to a third party.

Whistleblower

Last month, however, the whistleblower Edward Snowden revealed how US firms pass on user data to the American government as a matter of course. Those disclosures have raised doubts about whether the US fills those criteria.

Many of the companies that have passed data on to the US, such as Apple and Facebook, have their European headquarters in Ireland, so are regulated by Mr Hawkes and the DPC………………..

full article at source: http://www.independent.ie/irish-news/facebook-and-apple-escape-censure-over-sending-data-to-us-29449947.html

Comment:

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By Thomás Aengus O Cléirigh

This is total bullshit! Here we have american multi nationals who are paying next to no tax on their enormous profits here in Ireland  and are using questionable accountancy tactics that enable them to side step paying taxes in their own countries using their substantial mussel forcing the puppet Irish Goverement  to comply with their wishes .Personal information of citizens of this country is been sent to the USA  and this twit says he cannot do anything about it ??? what a cop-out! Multi Nationals are running rings around Irish Law

‘I’ll never pay taxes in Ireland again’

The 55% rate for self-employed contractors with few benefits has led many of my engineering friends to emigrate, and knowing it is all going to pay for the banks’ mistakes means I won’t be back, writes Jack B

There has been a lot of talk in the last few weeks, in Ireland and abroad, regarding the “Anglo Tapes” which have become infamous around Europe. Currently I am gainfully employed in Germany, and I’ve seen the mounting animosity towards Ireland recently first-hand in my new country of residence.

People who are aware I’m Irish have been questioning “how much did I know was going on?” It’s becoming increasingly difficult to put the palms out and admit I was aware were being carried out in a haphazard way. All it does is engender to my fellow Europeans how much of a bunch of blackguards the Irish truly are……………….

full article at source: http://www.irishtimes.com/blogs/generationemigration/2013/07/15/ill-never-pay-taxes-in-ireland-again/

 

Comment:

By Thomás O Cléirigh

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I was self-employed and I am now registered as unemployed for the past 5 years. I have not received any assistance from the state , No Dole and no financial assistance whatsoever : I paid all my taxes over the years and at one stage had over 6 full time employees working for me .I was in the hotel and catering business not the building industry  and I am discussed with the revelations of Anglo and also with the payment our self-serving political lackeys who infest in the Dial. The self-employed of this country are an easy scape goat and an easy touch I agree with the body of the above article and the gombeens in the Dail will learn soon enough that you cannot suck the people dry and expect them to continue to lie-down and take it forever, push the people so far and you will end up with open revolt! Roll on the Irish revolution !

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