Jean-Claude Trichet asserts that the new agreements reached by the premiers must be applied rigorously and quickly in all its dimensions, including the improvement of governance. Decision-makers must strive to be ahead of events, even if the speed of decisions in our democracies is not necessarily that of the markets. Fuehrer Merkozy declares Greece's case is exceptional and unique, due to October-18 Mafia's huge corruption and marilizardism!
Myriad bloggers, netizens, bankers, traders, and investors have joined the global boycott against October-18 Mafia, bankrupt government of Greece, penalizing it for its terror on October 18, 2010. The boycott will stop only when October-18 Mafia would apologize for this disgusting terror.
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
October-18 terror has proven that the Greek government is the #1 enemy of the Greek people! Trichet points out a key challenge for the euro area is to communicate with investors and savers in the rest of the world, who have difficulty in deciphering European decision-making. Provided that their decisions are implemented quickly, the euro area countries have the means to improve the perception that the rest of the world has of Europe. Progress has to be made on all points in a resolute way.
October-18 Mafia is the most disgusting predator of internet on Earth! All investors ans traders were shocked by the brutality and stupidity of the October-18 2010 terror, initiated by the government of Greece. That's why October-18 Mafia is the new name of the bankrupt government of Greece!
Bundesbank has already decided to establish huge reserves to cover possible risks. The failure of Greece, which would lead to the bankruptcy of a few Greek banks, would increase the bill dramatically, because ECB is believed to have purchased Greek government bonds for €60 billion. Besides, ECB had spent about €100 billion on refinancing Greek banks. We criticized many times ECB's program of purchasing government bonds issued by ailing eurozone states. In the event of a bankruptcy or even a deferred payment, ECB would be directly affected.
Quo vadis October-18 Mafia? In respect of governance, in the past, at the ECB, Trichet has found himself preaching in the wilderness, when negligence by governments, markets and by many economists was the rule. Trichet knew a time when markets did not distinguish between the signature of Greece and that of Germany, when a majority of observers felt that the Stability and Growth Pact was a too tight corset which prevented Europe from breathing, and when the whole world believed that IMF loans had become useless. That was still the case in early 2007!
Investors, bankers, and traders hate marilizardism. Governments of many repressed countries, such as bankrupt 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. http://venitism.blogspot.com
ECB accepted asset-backed securities (ABS) as collateral, amounting to one trillion euros. It was precisely such asset-backed securities that once triggered the real estate crisis in the United States. Now they are weighing on the mood and the balance sheet at ECB. ECB cannot jettison these securities without dealing a fatal blow to the eurozone. ECB is in a no-win situation now that it has become an enormous bad bank, a dumping ground for bad loans.
No more hanky-panky from October-18 Mafia! Trichet's successor, Mario Draghi, has indicated the ECB is going to continue its purchases of government bonds. ECB now purchases government bonds in emergencies. Not only has this been prohibited until now, it also contradicts the central bank's overarching goal, keeping the value of money stable. Now this taboo is broken, and the very foundations of eurozone are eroded. ECB's independence' has now been shown to be nothing more than a sham, a chimera, a will-o'-the-wisp. In the end, ECB and euro will be punished for this decision to stand down from what had previously been considered sacred.
This policy effectively makes ECB a bad bank, a bank that buys up toxic assets as a means of helping out other institutions, all protestations of its president to the contrary. The pile of junk bonds on the ECB's balance sheet continues to grow. The fact that the ECB is keeping prices artificially high is downright encouraging banks to unload their risky assets onto the central bank.
The European Central Bank has been buying up Greek bonds by the bucketload, even though Athens is already getting money from an EU rescue fund. There is a French plot behind the massive buy-up, as it gives French banks the perfect opportunity to get rid of their Greek assets. German banks, on the other hand, are not potential sellers, because they have made a voluntary commitment to Finance Minister Wolfgang Schaeuble to hold their Greek bonds until May 2013.
ECB is creating excess supply by buying at overinflated prices. In other words, many creditors are more inclined to sell their risky assets to the central bank under these terms. It's a free lunch. Anyone who doesn't take advantage of this opportunity to get rid of his securities now only has himself to blame.
October-18 Mafia, government of Greece, needs a coup de grace now! Trichet notes the Lisbon treaty requires ECB neither to receive nor to seek instructions from anyone. Trichet did not ask for permission to take exceptional measures on 9 August 2007 to confront the first waves of financial turbulence! Trichet was criticised by Germany and France when ECB refused to lower rates in 2004, and by ten out of 12 countries when ECB increased them in December 2005. All ECB non-standard decisions have been taken in complete independence. That independence is essential.
Bankrupt October-18 Mafia's austerity program is already hopelessly behind schedule, in terms of both the sale of government property and the agreed reforms. It's like dealing with children that constantly have to be told to clean up their rooms. Troika members are very angry. Everyone is irritated over the lack of progress of October-18 Mafia.
Global Tax Revolt promotes an international boycott of October-18 Mafia. Trichet was the captain of a ship passing through a terrible storm. In the storm the direction is clear: the mandate given by Europe's democracies. One has to be permanently alert. The weather has been particularly rough for four years. The crew of the ECB is on deck. The crew does not change. The future president has been on the ship for years. He has shared in all the decisions in a collegial way. He has considerable experience.
Christine Lagarde of IMF has made it absolutely clear she does not trust Graecokleptocrats, because they never apply what they vote in the Grand Brothel on Syntagma Square! Greeks condemn October-18 Mafia for creating hundred state agencies and hiring many thousands of public employees, even though it promised Troika to close down all agencies and fire many public employees. Some executives at state enterprises have annual salaries of 300,000 euros! Greeks wonder why the bank accounts of rich ministers have not been opened and why major tax evaders have not been arrested.
Helping October-18 Mafia is taxpayers' hard-earned money blown out in the wind! Trichet points out in the summit statement there is an increase in the intervention capability of the EFSF, thanks to a leveraging effect. In practice, this means that, in addition to European capital, private capital – and possibly public capital – from around the world could invest jointly with the Stability Fund. They will do it because it will be in their interest of course.
Graecokleptocrats love the Greek debt crisis, because it takes the attention of Greeks away from the myriad scandals of the Greek government, such as the Siemens scandal, the huge kickbacks for purchasing defect military equipment, defect trains who do not fit the rails, churning the retirement funds of poor workers to generate commissions and kickbacks, airplanes that cannot keep balance, submarines that bend, swaps of prime state land with questionable monastery land, and so it goes.
October-18 Mafia, government of Greece, has created a misery archipelago. Trichet notes that in our democracies, criticism is natural and necessary. Some people in Germany and other countries regard his policy as too bold. While other people think of him as being too cautious.
The European Commission must end its silence on the October-18 terror. Greece is a Fourth Reich country, and the Commission is obliged to safeguard the rights of Europeans specified in Lisbon Treaty. Fourth Reich cannot continue to say nothing about such a terror within its own borders, because October-18 terror is a clear violation of Article 2 of the Lisbon Treaty. The impunity of marilizardists and October-18 mafia must end.
ECB keeps the currency for 17 countries, for 332 million fellow citizens, for citizens of all persuasions. ECB has a course to follow, price stability, and its non-standard decisions since 9 August 2007 - the first global decision in the crisis - have been taken to help ECB restore a proper implementation of ECB policy in a crisis without precedent for 65 years.
October-18 Mafia should be hanged in front of the Grand Brothel on Syntagma Square! Trichet points out price stability has been ensured since the creation of the euro, but Europe's economy has weakened, and unemployment has grown. Since 1999, prices have increased by 2,0% per year. ECB has done what was demanded of it by Europe's democracies. Our fellow citizens, the 332 million people in the euro area, are extremely attached to price stability, particularly the most vulnerable among them. Opinion polls show this.
With regard to employment, we have created around 14 million jobs in the euro area since the launch of the single currency, compared with around 7 million in the United States. These job creation efforts must be resolutely pursued. The European countries which have paid most attention to their competitiveness and those most committed to structural reforms are in a better situation than the others.
Global Tax Revolt was the first organization to report the October-18 2010 terror 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, government of Greece, many billions of euros! The only thing October-18 Mafia got out of this terror is toilet paper in the form of worthless Greek treasury bonds! CCU jail needs toilet paper anyhow! http://venitism.blogspot.com
Some of ECB decisions continue to cause discussion, such as the increase in ECB rates in 2008, a few weeks before the collapse of Lehman Brothers. At the time, there was a real threat of inflation expectations becoming destabilised by the increase in oil prices. Of course nobody could foresee that Lehman Brothers would file for bankruptcy in mid-September.
The fact that ECB showed itself to be very firm about price stability, fully in line with our definition – less than 2% but close to 2% over the medium term – helped us in the crisis. Because we avoided not only a materialisation of the inflation risk but also of the deflation risk which, after Lehman bankruptcy, was becoming the main danger. A comparison of inflation expectations shows that we have had one of the best anti-deflation protections of comparable advanced countries.
Banks cannot participate voluntarily in illegal acts, such as fiduciary imprudency. Bank directors are committed to bank's welfare, and not the public interest. If bankers waive outstanding debts at the expense of the bank, this is a breach of trust and punishable by law. All those bankers, that IIF claims plan to participate in rollovers, might go to jail for violating the fiduciary duty of prudency! October-18 Mafia pressures the banks to participate, but it really opens Pandora's box.
Greek economy does not need haircuts, but taxcuts. Trichet is seeing at the moment multiple and complex messages that highlight that the fragility of the global economic and financial system is not acceptable. These messages are important. Indeed, all the efforts of the international community, particularly those of the G20, aim to improve the soundness of the global economy.
These messages are fed by many factors beyond the financial fragility observed since 2007. There is an outcry against the level of some bonuses in the financial sector, which are not accepted by our democracies. The financial sector must change its values. It is also an area of work opened by the G20. There is also another message which is more complex, namely that the changes are too fast.
First of all, science and technology are advancing at an unprecedented rate: it's a great success but it requires constant adaptation. Second, the emerging markets, all of the Third World countries, are growing at a pace which has no historical precedent: it's a great success but leading to swift significant economic transformations. Third, longer life expectancy is also a remarkable success but is raising major funding problems.
Three distinct successes but very difficult to control. To put them fully at the service of our citizens, our societies and economies must make an ongoing effort to adapt much faster than in the past.
Trichet can imagine a development for tomorrow and the day after tomorrow. Tomorrow, it would be necessary that we could impose on a country the essential decisions after several refusals to apply the recommendations formulated by European governance. Thus, one could prevent a particular economy from adversely affecting the financial stability of the rest of the area. This requires a change in the Lisbon Treaty, now being specifically envisaged by governments in the euro area, which Trichet welcomes.
As for the day after tomorrow, Trichet considers a deeper institutional change, with a genuine European executive. Trichet muses that in any case, Europe's historical development depends entirely on the lessons our democracies will draw from the crisis, on the conclusions the people of Europe will draw from the events experienced since 2007.
