Eurogroup has just approved an agreement to lend a hundred billion euros to Spain, in order to recapitalize its banks. Pain in Spain and grease in Greece are the main symptoms of the depression of PIGS. The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade the four PIGS again. PIGS have been spending more than they've earned for decades. But the Germans have enjoyed particularly good earnings from the profligacy of PIGS.
The stupid financial transaction tax is a euthanasia pill for financial markets. If Eurozone adopts this stupid tax, all financial transactions of the continent will move to London and New York. The most popular euthanasia substance on the market is Nembutal, and the most disgusting euthanasia of financial markets is the financial transaction tax. I prefer Nembutal to the financial transaction tax! http://venitism.blogspot.com
Fourth Reich's economic catastrophe is unfolding so slowly that it has come to seem like business as usual. Cohesion policy is a socialistic scheme to rob hard-working Northern Europeans to give lazy pigsizens. But Northern Europeans resent supporting the dolce vita of pigsizens. The freakish government of Greece stole my computer and my life!
VAT is killing the goose that laid the golden eggs. VAT is the major culprit of depression, the #1 source of misery. VAT is the cacothanasia of economy! Vatdodging is heroism! If you are a real patriot, you should revolt against VAT, buying products online from companies that evade VAT. Remember, your government is your worst enemy! The freakish government of Greece stole my computer and my life! The largest online retailers offer top quality products at deep discounts without VAT. Only stupid consumers pay VAT! Some fantastic VAT-free offers are on the venitism blogspot. http://venitism.blogspot.com
Socialists would like to see ESM bring out the bazooka, in other words, undertake massive purchases of government bonds to resolve the crisis. An ESM bazooka cannot restore competitiveness to PIGS, but would only encourage profligacy, kleptocracy, and metastasis of the cancer of socialism. European Stability Mechanism (ESM) is a joke. ESM's finances depend on the very same countries that it is supposed to bail out. This isn't stability, but a Ponzi scheme!
Spain must first see the results of in-depth audits of its banking sector, which is riddled with bad property loans. The bank bailout, together with fresh austerity measures and looser fiscal targets agreed with Madrid, are aimed at avoiding a full sovereign bailout.
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.
Hundreds of thousands of Spaniards marched against the government's latest measures on Thursday evening. All pigsizens demand dolce vita, all evade and avoid taxes, all hate government, and many respect omerta. Pigsizens prefer to detach themselves from reality. One can do that for a while, but now the capital markets are suggesting those days are over. Either you face up to
reality or you will be punished.
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. http://venitism.blogspot.com
Northern Fourthreichians have the strong suspicion that some of their hard work
is going down the drain with the hundreds of billions that are currently
disappearing into aid packages and bailout funds for PIGS, lived well at the
expense of others, and that those who were more careful with their money are now
expected to swallow the poison that is making its way northward.
Spain expects 30 billion euros in a first tranche of money that will be available immediately for state-rescued banks that urgently need funds. The banking sector needs up to eighty billion euros in total. Spain's three biggest banks - Banco Santander, BBVA, and Caixabank - would not need extra capital even in a stressed scenario, the independent audit said. Immediate problems are limited to four banks: Bankia, CatalunyaCaixa, NovaGalicia, and Banco de Valencia.
All Spain's banks have to increase their core capital ratios to 9 percent by the end of 2012 and keep them at this level until the end of 2014. However, the government will review by December the requirements for setting aside capital to cover losses on real estate assets. There will be a special focus on savings banks, cajas, which have close links with local governments.
What PIGS are experiencing at the moment is a shock and awe. But it was also
overdue. The freakish government of Greece stole my computer and my life! PIGS are not innocent when it comes to their decline. But providing PIGS with extended maturities and lower interest rates is in no way a true solution. PIGS need restructured debt in order to have a little breathing room.
http://venitism.blogspot.com
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