[kitchencabinetforum] PIGS RISK A PUBLIC BACKLASH

Monti declares Italy risks a public backlash that could lead to an antieuro government. Monti fights to lower the bond yields. Monti says: If the spread in Italy remains at this level for some time, then you're going to see a non-EU oriented, non-euro oriented, non-fiscal discipline oriented government in Italy.

Italian fanfaron Draghi said ECB will do whatever is takes to save the euro, but he did nor really mean it! Fourth Reich's economic catastrophe is unfolding so slowly that it has come to seem like business as usual.

Weidmann indicates his opposition to aggressive action by the ECB, declaring ECB shouldn't exceed its inflation-fighting mandate. 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

ECB money creation is effectively a tax. Every euro created out of thin air dilutes the value of the euros in your pocket and your savings in the bank. But the truth is that we
are only beginning to see the results of ECB's dramatic increase in the
money supply. Most of the euro deposits created by ECB via successive
rounds of quantitative easing remain on the balance sheet of ECB and the European central banks of eurozone. Because of very rational economic fears, banks are not lending, businesses are not expanding, and individuals are shedding debt. So, the trillions of euros
created by ECB remained largely undeployed. When those euros
eventually make their way into the world economy, prices across all sectors of
the economy are likely to rise dramatically.

With Italian elections due by April, public anger over the fallout from the debt crisis is eroding support for the euro. The Five-Star movement of Beppe Grillo get 20 percent of the vote in the polls.
Grillo declares the euro can't be a taboo, and it has become an ever-tightening noose around Italy. All PIGS now risk a public backlash that could lead to an antieuro government.

Obama called Monti and reiterated his support for decisive action to resolve the depression of PIGS. 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!

PIGS do many stupid things. The freakish government of Greece is so stupid that it hoodwinked all media that I conspired to trigger a war between Greece and Turkey and blame Mariliza Xenogiannakopoulou, Alternate Minister of Foreign Affairs of Greece, for it! Accusing dissident bloggers of treason, Graecokleptocrats have manufactured a blood libel in cyberspace, which in turn incites hatred and violence. The barbaric government of Greece gave my head on plate to Erdogan. Brutal Graecokleptocrats have destroyed my life. My life is stolen. Now I demand my life back! For those who are kind enough to contribute to my legal defense, please click the Donate button on the right column of venitism blogspot. http://venitism.blogspot.com

Monti says Italy won't need a bailout, but it needs ESM and ECB to buy its bonds in a bid to narrow spreads. 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. 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!

Monti has found common cause on stepping up efforts to resolve the crisis with Rajoy and Hollande. 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

Merkel and her Cabinet ministers ruled out any move to grant the ESM a banking license, a proposal that would allow the fund to wield unlimited firepower. 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.

Germans abhor the Nazi dream for Europe - ein Volk, ein Reich, ein Fuehrer. The European project has lost significance among Germany's policy elite as the central driver of foreign economic policy. No clear grand strategy has replaced this Einbindungspolitik, German foreign policy tenet of engagement. Given the heavily-fragmented nature of checks and balances in German politics, the political elite seems to be buffeted by a cycling of priorities from regional elections to Chancellory infighting. The end result has been a series of policy reversals and costly delay.

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

Merkel declares Fourth Reich lives through its toughest hour since the Second World War. Merkel dislikes putting her foot down to solve government disputes. She associates that form of exercising authority with ill-tempered men who use arrogance to make up for their lack of competence. Merkel thinks people who keep banging their fist on the table end up getting ignored in the long run. Merkel's wings have been clipped, and now she faces even bigger problems ahead. There are rumblings within the FDP and the CSU that could distance the two parties even more from Merkel.