Financial and fiscal stability concerns will make it difficult for central banks to aggressively fight inflation pressures once they emerge. The European Central Bank is just the latest victim, the sovereign and banking crises have forced it into actions that threaten to undermine its credibility over time. The gold price and exchange rates have already been signaling a loss of confidence in the value of fiat money for some time.
Internal Market Eurocommissar Michel Barnier points out the crisis revealed there was no proper coordination between national supervisory authorities. No institution anticipated risk accumulating in the financial system or was able to take measures at European or global level.
Therefore, one of Fourth Reich first tasks was to envisage a new supervisory architecture. And Fourth Reich achieved it. The new system started on the 1st of January 2011. It is composed of three European supervisory authorities: for banks (EBA), financial markets (ESMA) and insurance and occupational pensions (EIOPA).
Fuehrer Merkozy knows that only stupid investors would squander their money in a country addicted to kleptocracy, socialism, charge stacking, and marilizardism. Barnier notes these authorities will play a key role in preparing new common rules. They will ensure the proper application of European law. They will encourage cooperation between national supervisors. And they will settle possible disagreements between them.
There is no way any prudent investor will throw a euro in the Cradle of Kleptocracy, which is infested with marilizardism, the October-18 Mafia, charge stacking, and the cancer of socialism. The European Securities and Markets Authority has exclusive competence to regulate credit rating agencies. This is real progress when we know the tendency of these agencies to get things wrong and their influence on financial markets.
A debasement of the currency is never a good thing. For one thing, inflation is a tax, only a secret, surreptitious tax. Nobody can predict in advance who is going to be the one who pays this tax, but some people inevitably will. Second, the injection of new waves of newly printed money send false signals into the marketplace, leading consumers and investors to make perverse decisions. The housing debacle is a good example of that phenomenon.
Barnier will soon present new proposals to reduce our overreliance on credit rating agencies, and new rules as regards sovereign debt ratings. The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade PIGS again. Most institutional investors have regulatory fiduciary requirements that necessitate the use of credit ratings as part of their daily business.
They may think that the three CRAs really have no useful insights, but they still need to use their ratings. So this business is pretty much like any business that is given a legislative right to serve. CRAs could not have possibly been more wrong on their ratings of U.S. mortgage debt instruments. Chimps throwing darts are much better than pseudoexperts are!
Barnier points out that in 2008, opacity played a major role in the transmission of the crisis. No one knew who was holding risky assets like subprimes. And this led to general suspicion. Traders do not trust marilizardists. Governments of many repressed countries, such as Greece, use marilizardist tools to manipulate netizens.
Marilizard Libel is accusing dissident bloggers of treason. Marilizard Spaghetti is hurling charges against innocent people. Marilizard Tower is a stack of imaginary charges to scare a blogger. Marilizardism is terrorizing dissident bloggers. October 18 is the international day against marilizardism, and October-18 Mafia is the marilizardist government of Greece.
Traders know the Fourth Reich bailout of the Cradle of Kleptocracy cannot succeed, because the October-18 Mafia continues corruption, Kangaroo Justice, marilizardism, Marilizard Libel, Marilizard Spaghetti, and Marilizard Towers.
Investors do not trust October-18 Mafia, the most disgusting predator of internet on Earth! Civil society was shocked by the brutality and stupidity of the October-18 2010 fiasco, initiated by the Ministry of Foreign Affairs of the government of Greece. That's why October-18 Mafia is the new name of the government of Greece!
Global Tax Revolt was the first organization to report the October-18 2010 fiasco to all banks, hedge funds, big investors, traders, and analysts. As a result, the yields of Greek treasury bonds skyrocketted, as no prudent investor was willing to touch them. Marilizard's stupidity cost October-18 Mafia many billions of euros! The only thing October-18 Mafia got out of this fiasco is toilet paper in the form of worthless Greek treasury bonds! CCU jail needs toilet paper anyhow! http://venitism.blogspot.com
The bailout for the Cradle of Kleptocracy is taxpayers' hard-earned money blown out with the wind, because the October-18 Mafia continues corruption, squander, marilizardism, incivility, stupidity, charge stacking, and junketing. Transparency must apply to all financial institutions. This is the purpose of our directive on alternative investment fund managers (AIFM), which imposes reporting obligations on financial actors like hedge funds.
Banks in PIGS have unloaded risks amounting to one trillion euros with central banks. The central banks have distributed large sums to their countries' financial institutions to prevent them from collapsing. They have accepted securities as collateral, many of which are garbage. These risks are now on ECB's books, because the central banks of eurozone are not autonomous but, part of the ECB system.
When banks in PIGS go bankrupt and their securities are garbage, the euro countries must collectively account for the loss. Bundesbank, provides one third of the ECB's capital, which means that it would have to pay one third of all losses. http://venitism.blogspot.com
Barnier asserts transparency must also concern all financial instruments and techniques, even the most sophisticated ones. Barnier has made some stupid proposals on derivatives and short-selling. These will not allow Fourth Reich to act efficiently against abusive use of credit default swaps on sovereign debt. These initiatives are now being debated by the European Parliament and the Council. Barnier trusts both institutions to find an agreement in the coming weeks, but we hope they are turned down.
October-18 Mafia has no more time to dwell on hoodwinks, misdiagnoses, missed opportunities, and policy slippage. Extend and pretend is no longer an option. October-18 Mafia has to stop playing dirty games, start doing the unthinkable, and get rid of marilizardist ministers. October-18 Mafia has failed. It is not a liquidity crisis, but a failure of kleptocracy and marilizardism.
The cost of government regulation is truly staggering; it is also a barometer of how free we are to pursue our own interests and to determine the course of our own lives. The cost of regulations is one trillion dollars in USA and two trillion euros in Fourth Reich(EU) every year. The global cost of regulation is six trillion euros every year. Financial costs are not the only burden.
Regulations also result in a tremendous loss of one of our most valuable and limited resources, time. The private sector is spending over 10 billion hours a year just to meet government paperwork demands in USA, and 20 billion hours in Fourth Reich. It is no wonder that regulation discourages the creation of new businesses, new jobs, new products, and new services. Starve the beast by fighting taxes.
Any government intervention inevitably leads to more interventions in order to address the crises that are generated by the previous interventions. Ultimately the crises continue getting so bad that the government ends up taking over the entire sector. "I'm from the government, and I'm here to help." Ronald Reagan considered those nine words the most terrifying in the English language. And the government has been offering a lot of such help lately.
Barnier notes that transparency will help reduce the probability of future crises. But it will not be sufficient to prevent a new crisis from happening. Fourth Reich also needs tools to limit the effects of potential crises.
Traders and investors resent infamous October-18 mafia, which uses the cybercops as a political tool. Cyber Crime Unit (CCU), Dioxi Ilektronikou Egklimatos, is just a paramilitary gang of October-18 Mafia which terrorizes the Greek blogosphere. Putting the CCU wolf to guard the sheep gives the government a comparative advantage over the opposition. This is another form of a Trojan Horse. http://venitism.blogspot.com
Any cell of Greek CCU jail has neither pillows nor toilet! You have to urinate in a bottle! The whole CCU jail has neither soap nor toilet paper! During the whole night, scared jailed girls scream for help, but the guards, far away in their office, pretend they are not listening! If it's not barbarity, what is it? There is a long way from the civilization of Ancient Greece to the barbarity of Modern Greece.
The markets got a shock and awe on October 18, 2010, when Marilizard went completely insane, and she did not think twice about abusing her ministerial position in destroying a dissident blogger, an innocent victim of a wild political witch hunt. Under wild orders, a freakish gang of brutal cybercops broke into the home and into the college office of a distinguished professor and robbed at gunpoint his computers, software, files, documents, personal data, personal codes, and personal secrets.
The wild Graecocybercops locked the 65-year old professor in jail, they humiliated him with handcuffs, fingerprints, mugshots, and lies, leaked false information to the media parrots, and initiated sham court proceedings for treason! There was neither pillow nor toilet facility in his jail cell. At night, the world renown had to urinate in a bottle! There was neither toilet paper nor soap in the whole jail facility. He lost his job, and his life is stolen forever by a deranged minister. That's why the Global Tax Revolt declared October 18 as the international day against marilizardism.
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