[kitchencabinetforum] THE THREE CRAS PREPARE A COUP DE GRACE!

The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade most eurozone countries. 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! But nobody trusts the freakish Greek government which persecutes and robs dissident bloggers. http://venitism.blogspot.com

The three CRAs have told eurozone countries that a comprehensive solution to their debt crisis is beyond reach. PIGS follow the basket case of Greece, ready to go belly up. A comprehensive solution to the euro zone crisis is technically and politically beyond reach. Kangaroo Graecokleptocrats, who persecute and rob dissident bloggers, are a disgrace to ancient Greeks.

Of particular concern is the absence of a credible financial backstop. This requires more active and explicit commitment from ECB to mitigate the risk of self-fulfilling liquidity crises for potentially illiquid but solvent eurozone slave countries.

The three CRAs points out the systemic nature of the eurozone crisis is having a profoundly adverse effect on economic and financial stability across the region. The kangaroo justice government of Greece, the most disgusting persecutor of dissident bloggers, is an embarrassment to Fourth Reich.

The euro suffered its worst weekly performance against the dollar in three months. Damocles' sword of kangaroo justice is hanging over Greeks. The freakish government of Greece is the only one on Earth that buys votes with sinecures and favors, and robs and persecutes dissident bloggers!

The fiscal compact among eurozone countries and aspiring members, published on Friday, shows that countries will be taken to the European Court of Justice if they did not meet agreed budget goals. The Greek Ministry of Foreign Affairs does not have any better thing to do than persecuting dissident bloggers!

Merkel has led a push for automatic sanctions for deficit sinners in eurozone. Merkel says: It's in my character to be consistent, whether I'm speaking with you, with party colleagues, with the Bundesbank or with my European partners. I am not duplicitous. That is my advantage. We need more not less Europe. If euro fails, Europe fails. The solution of depression lies in binding Europe closer together through strict budget discipline.

Excessive belt-tightening in PIGS sends their economies into a negative spiral with no prospect of growing out of crisis, while feeding resentment in the prosperous north. Venitis points out Frankfurt Group is the shadow board of Eurozone. It consists of Merkozy, Barrompuy, Draghi, Lagarde, Juncker, and Rehn.

Frankfurt Group is hiding the fact that Fourth Reich is in depression. Hoodwinking citizens is something Eurokleptocrats have learned from Graecokleptocrats. Europeans see that most of their kith and kin are without job and wonder what's going on. Que Sera Sera!

Venitis notes EFSF is due to expire, and is supposed to be replaced by the European Stability Mechanism (ESM) in mid-2013. But the ESM will have the same problem the EFSF does. Its finances depend on the very same countries that it is supposed to bail out. This isn't stability, but a Ponzi scheme! An ECB bazooka cannot restore competitiveness to PIGS.

Freak! Freak! Freak! The freakish government of Greece steals computers! Robbing dissident bloggers and locking them in jail is a freakish behavior that does not belong to the European Union, not even to this galaxy! No wonder some vain Greeks boast they come from Andromeda galaxy!

Mario Monti asserts Fourth Reich's response should be wrapped in a long-term sustainable approach, not just to feed short-term hunger for rigor in some countries. To help European construction evolve in a way that unites, not divides, we cannot afford that the crisis in the euro zone brings us the risk of conflicts between the virtuous North and the vicious South.

Francois Baroin stupidly declares the economic situation in Britain today is very worrying, and you'd if ratings agencies were even-handed, Britain deserved to be downgraded before France! Nick Clegg declares that recent remarks from members of the French government about the UK economy are simply unacceptable and stupid, and steps should be taken to calm the rhetoric. World Bank President Robert Zoellick says he is deeply troubled by the exchanges. He said politicians needed to be careful because you've got a tinderbox out there in both political and economic terms.

Eurozone slave countries will hold talks next Monday on the draft text of the eurozone fiscal compact and on bilateral loans to IMF. USA and BRIC have refused to offer additional funding. Mario Draghi claims eurozone governments are on track to restore market confidence and the ECB's bond-buying plan was neither eternal nor infinite.

Troika confesses there is no guarantee that talks on the private sector's rollover with haircuts would lead to a voluntary deal. Agreement has been held up by wrangling over interest coupons on the new bonds and the legal guarantees to be offered by Graecokleptocrats. Failure to secure agreement would force a disorderly default that will trigger a wider emergency across eurozone.

Venitis asserts the Greek economy does not need haircuts, but taxcuts, and 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! The kangaroo justice government of Greece pressures the banks to participate, but it really opens Pandora's box.

History's first sovereign default came in the 4th century BC, committed by ten Greek municipalities. There was one creditor: the temple of Delos, Apollo's mythical birthplace. Jesus Nazarene talked many times about forgiving debts, and this has influenced many Christians of our times.

Many pullpeddlers and rabblerousers are pushing for a global Debt Jubilee, in order to pull the world out of the present global depression. But governments cannot force Debt Jubilee, which is a massive haircut of all loans, including mortgage and credit card debt. The notion of a Debt Jubilee dates back to biblical Israel where debts were forgiven every fifty years or so. Debt forgiveness would help borrowers get through the pain of deleveraging sooner rather than later.

Any haircut must confront the issue of moral hazard, the appearance of giving a gift to an unworthy borrower who simply made unwise spending choices. Institutional investors have fiduciary obligations and they can't necessarily agree to haircuts solely because it may be good social policy. A forced haircut would only result in a much higher cost of capital going forward and result in much less credit to more risky investments.

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