June 25, 2012

A Short Break

Posted in Articles · 142 comments ·

There will be no article for the next two weeks, as we embark on our annual family drive across Europe with our dog Sasha.

Hope to be in Passau or Regensburg Germany Sunday night for the final. Fingers crossed the locals are still in the competition.

Any recommendation where to watch the game there – has to be dog friendly.

  1. joe hack

    Don’t bring the Dog!

    • stiofanc02

      Yeah thats what Kennels are for! Is this the same dog that fell asleep on Lenihans foot?
      Love dogs, but they belong outside in their dog house and not allowed to roam into others gardens.
      And most definitely not on vacations.
      But none of my business really so have a great vacation. Im envious, even with the bloody dog!

  2. Adam Byrne

    Have a great holiday David.

  3. John Q. Public

    It’s a pity you don’t use a muzzle David, for some of the people on this site!

  4. Dorothy Jones

    Might be worth keeping an eye on this one, even if on hols: With all of the talk about bondholders, the decision on this ongoing case might be pretty interesting:

    German firm sues IBRC over bond values


    Good time to bury bad news and all of that…

  5. Joxer89

    There’s a nice pub with beer garden just at the opposite end of the stone bridge from the old town in Regensburg.

    I think this is it:

    While looking, I found this:
    -also looks good and they’re showing the football in the beer garden.

    Otherwise look out for anywhere that has Neumarkter Lammsbräu.

    Both those places are on the Stadtamhof side of the river, so you would need, if approaching by autobahn, the exit Regensburg-Pfaffenstein. If coming from the town centre side, you’d need to either go back on the autobahn or drive across the Wöhrdbrücke (downstream fron the stone bridge). or walk across the stone bridge (which is closed to motor traffic).

  6. Julia

    Regensburg is a lovely town but sorry, I can’t remember the names of the pubs. I spent a very hot summer in that area a long time ago working on a dig. It was the same year there was an earthquake off the east coast of Ireland and my dad’s turf rick collapsed in the back garden.
    After the match go south to Altotting, where you’ll find a little church which contains a Black Madonna. The church and statue date from the middle ages and is a place of pilgrimage for Bavarians. What I love about it is the paintings on the walls, inside and out, showing before and after stories. Carried in on a stretcher and then – look – walking. Crutches- no crutches. Miracles from the middle ages, amazing and wonderful.
    As I remember it, the roadworkers drank beer all day and claimed it prevented them from getting sunstroke!

    Anyway, have a great holiday and leave the Blackberry at home.

    • coldblow

      Would that have been 86 or 87?

      I think I saw paintings like that in a church in Kitzbuehel in Austria, depicting miracle cures. I thought it was from the 1700s or so but I could be wrong.

      Have fun, David. Hope it’s not a boring match.

      • Joxer89

        Many of the churches in Bavaria and Austria were done to death in the Baroque period, which got going some time after about 1600 and continued through the 1700s.

        But a few older churches escaped this treatment and so there are scattered examples that are still in their original medieval form.

        I was in Trento once and having looked into a few churches there, I decided that the town must have functioned as a kind of church decorator’s fair during the Council. One has squirly pillars, another has little golden angels, etc.; my theory is that clerics from all over shopped around and said I’ll have one of them and a couple of dozen of those, and so the Baroque was born.

        Further back up in the hills in South Tirol there are a few almost untouched medieval survivals — possibly the area was just too poor and too remote to redecorate them.

      • Julia

        I think it was ’84.
        That same summer there was the mother and father of all hail storms in Munich. Hailstones the size of grapefruit fell on houses, cars and people. Skulls were broken, windscreens, cars were dented, there was massive damage to houses and businesses. The insurance companies refused to pay out for damage caused by “an act of God”. People kept some of the hailstones in their freezers to prove to others how huge they were. It was like something out of a Hollywood disaster film.

        Ah, student summers. They were great.

        • Joxer89

          I was in Munich in, I think, July of 84. It was just after the big hailstorm. Some of the cars looked like they’d been made out of a special kind of corrugated steel, with little golfball-sized bumps all over them.

        • AmsKen

          Indeed, spent that summer in Bad Aibling, near Rosenheim making Cheese :-) and remember the hail and the damage …
          Still remember the effect of drinking 2 litres of beer at the company outing

  7. cooldude

    Have a great holiday David. Not too sure about the dog. You could turn into the Roy Keane of economics with Pasha taking over from Trigger. What will be the Saipan event?

  8. Have a good one. Well earned.
    If it all goes off in the meantime, you’ll just be right again.
    But leave the puter at home and we’re all looking forward to the new book down these parts btw.
    Slán from Béal Átha.

  9. Thanks for all the comments. The dog has proved to be the centre of our family, basking in overzealous attention from all sides, as Dad drives through Europe and the rest of the family doze off. I know which side of that trade I’d prefere to be on!



    • Just make sure he earns his keep

      • All hands to the pump when backs are against the wall old chap

        Cammy and uncle Miltie would have no truck with such dossers and neither would Fritz. Slap some discipline into the bugger or let him perish I say. Uncle Miltie would love it. Not

        Joking of course. Glasgow humour duh.

        I thought you’d be holidaying in Ireland. Wearing the green jersey and showing solidarity with people who are taking their hols in a place called hameilldamey

    • bonbon

      At least no PKW Maut, Peage in Germany (yet…) . Might have to pay for a greenie exhaust, nano-dust (Feinstaub) sticker, and inner cities are now inventing parking and Eco stickers!
      No private towing gangsters, at least not yet.
      Watch the 30-zone right-before-left rule with the yellow diamonds.

      And it seems major roadworks everywhere, right in the middle of many Länder holidays!

      France is expensive unless one takes the country roads. Wonderful road surface – the lorries avoid it.

      The boat (from Rosslare or Dover?) is a killer.

      Austria and Switzerland demand the Vignette , minimum 10 days.

      And not far near Landshut, a beautiful new nuclear complex idling. Wind towers sprouting like asparagus
      desecrating the landscape.

  10. No article for two weeks?


    Enjoy your hold.

  11. bonbon

    Banksters take no holidays now- they are directly confronting Germany, and this weekend is it!

    ( 26, June 2012, LPAC ) Capitol Hill sources have confirmed that Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke are demanding that Congress prepare emergency legislation for yet another hyperinflationary bailout of the hopelessly bankrupt trans-Atlantic financial system. For the past week, the two men have been meeting secretly with leading Congressional Democrats and Republicans, demanding that they draft new legislation to bailout the banks on an even larger scale than after the 2008 collapse.

    George Soros has jumped into the FT and gives orders – pool Merkel. A Constitution crisis is now on in Germany.

    DMcW picked a fine time to go offline…

    • bonbon

      poor Merkel…

      Pity no edit but for some reason the website is switching letters – now -> not for example…

  12. Reality Check

    David, this places looks like it could fit the bill.
    Outside beergarden, (nice for a dog I’m sure) by the banks of the Danube.
    Surely they will have the match on -
    After all Germany should be playing!
    Enjoy that area – it looks very majestic.


    • Joxer89

      If we’re getting into pubs in Munich now, I’d recommend the Haidhauser Ausgustiner
      In the same street, there’s the wonderful all-round cafe-pub Café Voilà (excellent breakfast):
      and in town, a block in from the river from the European Patent Office, the Fraunhofer:

      • Reality Check

        Oh Joxer mention Augustiner & you are really spoiling me…

        • Joxer89

          Great stuff, but on the whole I didn’t fare very well on the Munich beer diet. I can’t digest the Weißbier, it tied my insides in knots. I switched to the normal Augustiner Dunkel, which is very nice, and as a species doesn’t exist down here in Austria (Austrian dark beer is sickly sweet; Hirter Morchl is the only one that comes close to the Augustiner). And even almost 20 years later, I still tend to veer away from the oul alcohol when the weather gets hot. So yeah, I didn’t really make the grade.

          My booze consumption now amounts to sharing one bottle of beer with the missus of an evening, or a small glass of wine. Which of course makes it all the more important that it should taste of something. The shop around the corner has Pilsner Urquell, Murauer is pretty good and the pubs tend to have beer from the Brau Union group, which includes Puntigamer, Reininghaus and Gösser, which are all fairly middling, and the somewhat better Starobrno. I did have some very very nice beer in Brno at Pegas a couple of years ago: http://www.hotelpegas.cz/hotel-pegas-brno-welcome-page/

  13. Reality Check

    Make that for tomorrow nights Match!

    From Google translate;

    “We broadcast the semifinals Germany – Italy from 20:00 clock on our big screen in the malting floor of the brewery cellar”.

    Watching Good Football, drinking georgeous Beer in a brewery – sounds like heaven!


  14. bonbon

    The Euro Was Intended To Destroy the Nations of Europe

    June 27, 2012 (LPAC)–”The idea that the euro has ‘failed’ is dangerously naive. The euro is doing exactly what its progenitor — and the wealthy 1%-ers who adopted it — predicted and planned for it to do.”

    So wrote Greg Palast in yesterday’s London Guardian, noting that the progenitor, Robert Mundell, saw the euro as “a weapon that would blow away government rules and labor regulations.” “I knew him [Mundell] through his connection to my [U. of] Chicago professor, Milton Friedman,” Palast added.

    Palast described Mundell’s view thusly: “The euro would really do its work when crises hit, Mundell explained. Removing a government’s control over currency would prevent nasty little elected officials from using Keynesian monetary and fiscal juice to pull a nation out of recession. ‘It puts monetary policy out of the reach of politicians,’ he said. ‘[And] without fiscal policy, the only way nations can keep jobs is by the competitive reduction of rules on business.’ He cited labor laws, environmental regulations and, of course, taxes. All would be flushed away by the euro. Democracy would not be allowed to interfere with the marketplace — or the plumbing.

    Palast continued: “Mundell explained to me that, in fact, the euro is of a piece with Reaganomics: ‘Monetary discipline forces fiscal discipline on the politicians as well.’ And when crises arise, economically disarmed nations have little to do but wipe away government regulations wholesale, privatize state industries en masse, slash taxes and send the European welfare state down the drain.”

    The term “structural reforms” is “a euphemism for worker-crushing schemes,” Palast wrote, adding that the “currency union is class war by other means.” “Far from failing, the euro, which was Mundell’s baby, has succeeded probably beyond its progenitor’s wildest dreams.”

    • Philip

      Well, if you buy Ryan Air flights, shop in Lidl, buy in Dunnes Stores and so on, you are implicitly agreeing with all said there. BUT that not REAL democracy in action? the democracy of the marketplace, the self optimisation of the race to the bottom and removal of road blockers and progress inhibitors and pinko liberal do gooders who are afraid to get out there an be winners and hold everyone up with their “regulations”

      European welfare? A mechanism for ripping off people’s hard earned cash to line the pockets of administrators with the same end result for the unfortunate…except we now have reports as to why we should wring out hands.

      The Workers? TMaybe they deserve crushing if they refuse to be flexible and be customer focused. Are we to tolerate sullen service delivery for fear of trampling on workers rights?

      So Maybeeeee this is doing a good job…a major pipe clean by the looks of it.

      So far all I see is every rock is being turned over to bring light on waste. We see it everywhere. And people aee getting irritable and less tolerant of nonsense. Forsey in Jail…Quinn getting comeuppance…

      Good news so far.

      Elected Officials – an oxymoron about the democracy proclaimed here if ever there was one. These guys are just another interest group who would walk on you as easily as your friendly local banker :).

    • bonbon

      We had this tried before in Chile – the Chicago Boys put Pinochet in, the darling of Maggie.

      Pinochet carried out this “democratic” agenda.

      We face this now on an EU scale this very weekend.

      Anyway we have now from the horses mouth what the Euro is all about.

  15. Philip

    Have a great holiday David.

  16. bonbon

    As DMcW holidays, here is what the locals are thinking.

    Poll Finds 41% of Germans in Favor of Return to the Deutschemark

    June 28, 2012 (EIRNS)–An opinion poll carried out in Germany by YouGov on EU and euro policies, found 41% of those polled, in favor of a return to the d-mark, against 43% who want to stay with the euro. Some 67% said they see the euro crisis as the biggest challenge and threat to Germany. If a national referendum were held now on the EU as such, 51% of Germans would vote to stay, whereas 28% would vote against.

  17. Growth

    The only growth I can see now is my toenail .Many economists proclaim that new technology , inventions and research will bring growth .Currently , I believe they are wrong .It may bring ‘green shoots’ but that is all .I have a reason.

    At the time of the beginning of the Industrial Revolution in England initially there was growth .It was in the beginning a retarded growth because there was fear that the then monach would then distribute ‘rights’ to profits to his close entourage and the inventors and entrepreneurs were dubious what directions their new found wealth might take .

    To aleviate their fears the parliament introduced ‘The Statutes of Monopolies in 1623′ in an effort to curb the rights of the monach and protect the inventors by means of ‘ PATENTS’ . This was the moment of the beginning of seperate Royality and Rights for the commoners who register their new founded wealth of inventions.

    Today there is a parallel in this country where all rights favour vested interests and the consequences are that indiginous growth is negligible .

    Without proper amended laws to protect the indiginous interests in our own country then all economic green shoots just dissapear and the rise of Slim Economics prevails as in Mexico .

    • bonbon

      There has been spectacular growth in bailouts! From 145 billion only 2 years ago to 2000 billion now. And growth is expected to continue unabated.

      It is enabled by all kinds of patently dazzling “instruments” or financial technologies. The inventiveness is awesome. Now taxpayer (commoner) money is to be channeled directly from Germany/Austria/Netherlands to foreign banks, the engines of wealth generation.

    • bonbon

      And for “green shoots” not to worry. Look at Desertec, green power funded by Allianz (commoners pay for the cabling from Morroco), Helios Greek green power (again commoners fund cabling), all to keep the lights on in the EU as Merkel removes nuclear power. Asparagus wind-turbines no matter where DMcW looks now.

  18. Thanks for all the advice on places to watch the game. Good to see we have so many experienced boozers on the site!

    Chat soon,


    • Colin

      Next time you’re in London, let me know, some great pubs in the square mile where I work, the drinks are on me, following your advice has saved me from hardship and worry.

      Enjoy your well deserved holidays.

  19. Deco

    Well, it looks as if Merkel has been backed into a corner and she has given in.

    It will be interesting to see how this is digested by the German taxpayer. The option being chosen is Bernanke’s print-baby-print option. Aggressive monetarism, I would term it, after two decades of monetarism that resulted in the FIRE sector of the economy expanding, and engulfing the rest of the economy.

    To paraphrase Richard Millhouse Nixon, “We are all monetarists” now.

    And when monetarist policies first were released via Ronald Reagan, the CIA chief who was to become his VP, George Bush the First, called it “Voodoo economics”.

    David is in German – which will be an interesting location to see how this is all being absorbed.

    In particular, how will Germany’s SPD absorb “Voodoo Economics” and Milton Friedman’s monetarist policies, which drive up the cost of living, and drive down the real value of debt.

    Of course, Merkel could be playing a game here. There is an election in The Netherlands in September, and it will prove interesting in the context of the German taxpayer, because the Dutch taxpayer is an even bigger contributor to the various forms of Largesse than any other country, excepting the irrelevant Luxembourg.

    Will Brussels or the ECB provide the level of transparency required by the Dutch voters to keep them on side ? Given what we have seen in the past five years, the answer is probably No.

    The current fix might therefore not last particularly long.

  20. joe hack

    The euro is dead long live the Euro

    Love it or like it that is the way it will be, that is what was written a long time ago.

    It will be democracy which will have to fight for, democracy which is far from perfect. The tool of money/ fear is the winner.

    It still a long way to go before full integrating into the USE maybe 10- 20+ years
    I think you called wrong David, the euro will last and grow you did not take enough account of politics, history and the realisation by politicians on the consequences of the future with no EU/Euro.

    I think on economics alone it may have been the right conclusion but I am not an economist.

    For those who want the euro a 49% no vote on the ESM would have been better for Ireland and your support was for a no was well merited I think the election in Greece proved this when Syriza just got a few % less than New Democracy it was a very powerful message.
    Full integration still concerns me and I don’t want it I don’t want to live in the New Orleans of the EU.

    We should still have a plan B and we still need a debate on our future euro/eu now more urgent than before.

    It’s safe for David to take Euros on the Hols at least for now, but he should be spending them here, or will that mater now or in the future.

    • Joe

      I think you are right. I really didn’t think the Germans would buckle so easily because of a knowledge of history. Yes. I got this wone wrong, however, lets just see what is eventually agreed. My sense is Germany will not take kindly to the actions of its leader.


      • Adam Byrne

        So the Euro will survive David?

      • bonbon

        I think you missed the pressure applied by Geithner, Bernanke and Obama calling all through the summit. Teh FED is directly involved in the mega bailout.

        On top of that Soros, FT, a host of Wall Street operatives plus Blair. Add in Hollande supporting Spain and Monti.

        “Easily” is not the word.

        • Euro Bang Merkel

          The Merkels Political emotions cracked on the week to the Full Moon next tuesday …..need I say more .

          Next question is : Which comes first : ‘ the chicken or the egg ‘ ?

      • joe hack

        It is important to remember and remind ourselves of the past and to mention the war to all, not just the Germans, even if it hurts, it would denial to say “don’t mention the war” and denial can cause history to repeat.
        There a long way to go but when people are taken to the abyss and look down into its belly their minds are easily swayed, experienced politicians and their government and other think tanks are well aware of this.

        That is sometimes how they can get people behind them at least to a certain degree.
        Euro crisis opportunism appeared to be at play not only now by Markel and others but by past and present EU/Euro Politian’s / Think tanks.

        I suspect the Italians and Spanish with the stronger backing of electoral in France via Hollande laid down the law maybe with undiplomatic language Germany may even threatened the other big 3, Germany as you point needed the euro too, Merkel who I read some was once called “My Pet” by Kohl, Markel seems to be very much for the EU, not just publically in this regard a protégés of kohl maybe as Holland maybe Mitterrand this may be a new EU coalition which may last years????

        Merkel problems might have been, how do get the Germans and its parliament to back the Euro, it was dangerous and insane to asked for future integration first, Markel may have used the euro crisis as opportunity to get her point across perversely Sarkozy may been the worst friend she even had.

        The sad part is of course how unimportant the smaller nations are and it seriously shows how flawed democracy is.

        This crisis was and is real for real people who have lost friends and family through suicide, the larger four in the euro showed a lot of contempt for Greece, Ireland and Portugal whatever their faults, and they are not without faults too Germany included, it was only when it came to Spain and when Germany showed signs faltering that the crisis quickly changed tack a change may have been on its way but it may have been much slower pace but Sarkozy was probably a bigger obstacle than any other individual leader.

        Austerity which the German people may have some merit in insisting on was not been opposed as Mitterrand might have, Hollande may not have been a gift to Merkel we may have to thank the French and Greek people Via Hollande and the Syriza for the change with but also a fear of disturbing extreme right banging at the door of Greece, France, Finland and others.

        Do mention the war and do remember history.

        Bizarrely at least today Markel may be the happiest politician in Europe

        But where does this new possible further integration within the euro leave Ireland and its sovereignty including a further lose of democracy.

        • bonbon

          What a bizarre twisting and writhing indeed. The German people never got a single chance to vote for any of the EU treaties. Eire did. Amazing memory loss evident there.
          To say that the murderous austerity comes from the German people is inane. It is utterly Tiger-talk to say Merkel is “happy”.

          Tigers of the lost epoch are still prowling I see.

          Now does the murderous austerity of FG come even from those who voted them in?
          Of course those who voted for the ESM will blame some others for its effects.

          • joe hack

            Where did I say the German people got to vote on treaties?
            The German people vote for their parliament Markel and her party the CDU want to be re-elected again and her party they take sounding from the people
            The bundestag passed the ESM a day or so ago with a big smiling face on Markel on that day she is the most relived politician in Europe at present
            There is a constitutional challenge at present in Germany on the ESM it may fail also At some point The German people may have to amend their constitution

            I am not clairvoyant and I don’t know anyone who is, who knows if the Euro will fall or the dollar for that matter.
            Murder is defined as a intent to kill
            Do your own research please I am not a tutor, this is a blog based on a opinion by David McWilliams and my responses relate to the subjects he write about there is a context in my words above .

          • bonbon

            “Austerity which the German people may have some merit in insisting on” – silly.

            Banksters in Brussels some German speakers are ruining Europe. Monti of Italy is Goldman-Sachs as is Draghi of the ECB.
            I do not knw where you get the information, but look at this

            This putsch does not come from citizens, rather a criminal bankster band. Merkel did not use the term “no Eurobonds as long as I live” lightly, but was overrun.
            It is a putsch.

          • bonbon

            That report is a minute-by-minute log of the putsch. Mixed with football as DMcW does often. Popular at the moment to mix sport with a putsch-in-progress, what?

          • joe hack

            you need to learn how politics works, broad statements by powerful elected politicians are not always literal there are sometimes a reassurance to their own supporters to give them confidence that their view are being fought for in the back rooms.
            I give my opinion BonBon do you have an opinion or do continually give some one else’s or it the last opinion that you heard that fits your mantra that you continually regurgitate.
            What is it that is upsetting you is it is it because the euro may be here for a while longer and you want to moan at me about it the euro is not my invention.
            you good try to broaden your reading material that your locked in to, if you think posting a link to justify your view gives more weight you are sadly mistaken it has the opposite effect, it appears show a lack of understating of the real world, Anyone can post links for are against
            The logical conclusion of link posting to prove a point, is; the for or against win on the basis of the number of linked posted for and against, by the way I rarely click on any links I find here. My opinion is mine it not based on the latest I have read and heard it’s based on a lifetime’s interest in the world around.
            If you wish to argue the merits of my opinions I will gladly engage when time allows but when you say that have said something that I have not and I then point you to that fact, you then try to augment your original falsehood by asking where I get my information from that is churlish childish and irrelevant to the original point you made it has no substance “silly”

          • bonbon

            Putsch it is, and that’s politics. And the quoted statement is silly in extreme. When a putsch is used to push the “Euro” you know it is doomed. It cannot be made to work without as Attac ans Die Linke say is Hitlers Ermächtigungsgesetz, or Enabling Laws. Face it this is exactly what is happening. If you are not upset by that and adapt to it, by contorted arguments, well let it be seen.
            The blueshirt affinity for this is well known.

    • Tony Brogan

      The so called solution is an illusion. The debt is growing. It is unpayable. There will be massive printing of new currency. the euro will self distruct.
      Ireland’s plan B must be to have it’s own currency and monetary policy. Then run a silver currency in parallel to the paper fiat and let the people decide what they prefer. Survival or ruin.

      Jim Rogers view point is here


      • bonbon

        A UK Greenback as posted below would get that economy back from the brink.

        We need an Irish Greenback. Lincoln did this because the banks tried to cut off credit just as the war moved. FDR used this method with the RFC – Reconstruction Finance Corporation, as Wall Street tried to cut off credit as the Depression hit in full force. JFK used this for NASA and intended for NAWAPA.

      • joe hack


        I not too sure if anyone in power called it a solution on its own, (Kenny might have called Historic or more he might say he saved Europe from war) I don’t see it that way but at this point it looks like the heads of government are attempting to head in the same direction that is towards a fiscal/baking integration and maybe on to a USE. For this reason the euro will survive that is the governments want it to survive.

        The rise in stocks may be short lived but the fact that the euro leaders seem to be finding a path forward may give the markets stability confidence in the euro.

        Austerity will continue Markel and others have insisted on that, the pace of it may change the separating of sovereign and baking debt will help allow money to move, it was the case that Merkel wanted the fiscal union first that was insane and would have took years and may have faltered along the way now it appear it will be parallel move forward that was my main issue with Markel sincerity.

        It is that the euro zone countries are all supporting the euro this was the outcome more that anything else— but Greece?????

        The debts have not gone a way you know, the mortgage has been extended and the relevance of inter-euro debt has changed.

        I don’t see the Irish voting for exiting the euro but that does not mean I would vote yes to the euro

        That a little of my assessment; my 2p worth or should that be my 2c worth.

        • bonbon

          So if no one called it a solution, it is not solved. On to summit 22,23… each time with a bigger debt, and more insoluble.

          I am simply amazed at the “practical” efforts to adapt to this by elites and comments alike.

          Anything to go with the flow – as the toilet is flushed?

        • Tony Brogan

          Hi joe
          Nobody called it a solution but everyone pretends that it is a solution.
          There is no debt reduction, no change to the economies only an increase in debt and now paid for pro rata by all euro citizens. how it can be said that the extra money is not added to the taxpayer I would like someone to explain to me. Does not add to the sovereign debt of an individual country but to “all countries ” as I read it.
          There is only one way out of this and that is to step aside. be a sovereign nation, and repudiate the bank debts and issue a national currency. Why go down with the ship when you have a lifeboat.
          An individual personal floatation device PFD will in economic terms include land, silver and gold

          IMO your “2bits” worth is inestimable as it add to the discussion and understanding. (2 bits is 25 cents and so representative of the inflationary purchasing power of 2 cents of old.)(The original spanish pieces of eight coin was basically adopted as the US dollar. Eight pieces became eight bits as a dollar and thus 2 bits as 25 cents.)

  21. bonbon

    Amazing the “informed prognoses” here. This was the TWENTIETH SUMMIT in only TWO years, and nothing has been “solved”.

    How is it that number 21 is supposed to work? I believe I see that the Tiger belief in occult mutterings from banksters has not subsided.

    The utter failure to note the Bernanke/Geithner hysterical activity this week, is remarkable.

    Lads, tell Geithner and Bubbles Bernie, its solved!

  22. bonbon

    no more than a few weeks ago thestory of the London Whale broke – JPMC’s london arm has yet again like Lehman’s caused sheer panic.

    Bad Day for Big Banks and Big Derivatives

    Two of the world’s biggest banks were shown to be menaces to the financial system yesterday, sending all financial stocks plunging and markets generally falling.

    Despite many denials from other media during the day, the New York Times report that JPMorgan may be losing $9 billion from its huge London derivatives bet, stands up. The Times’ sources appear to include some inside JPMorgan Chase itself, who discussed what the bank’s running internal reports on the mega-loss are showing. They show that the London derivatives loss is now “internally” estimated at $6-9 billion, with only half of the $100-150 billion bet “unwound.” Morgan’s stock value had previously dropped by $23 billion since the first announcement of the loss, and it fell more than 2% more yesterday.

    JPMorgan Chase’s profit in the first quarter was $5.4 billion, so it could report a second-quarter loss on July 13 if it takes the London loss all at once — highly unlikely, as CEO Jamie Dimon has insisted to all who would listen that the bank would be profitable this quarter.

    The Times reported, “As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report. With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion.”

    This news broke on the same day that the British Barclay’s bank had just admitted “pervasive rigging” and manipulation of the all-but-sacred LIBOR bank lending rate (London Interbank Offered Rate), determined in London, on which values of more than $20 trillion worth of interest-bearing assets are based. The Barclay banksters will start by paying a $450 million fine for fixing the LIBOR, but will likely soon face criminal charges from both the United States and the UK. The investigation which led to the unmasking of the banksters was started by the U.S. Commodity Futures Trading Commission.

  23. bonbon

    Day of Shame: Bundestag Ratifies ESM and Fiscal Pact

    The German parliament, the Bundestag, ratified the Fiscal Pact and the ESM this evening after a two-and a-half-hour debate, which also featured passionate appeals by the opponents from all parties not to vote for the two laws. The ESM was passed 493-106 votes, with 5 abstentions; the Pact was passed 491-111, with 6 abstentions.

    Peter Danckert (Social Democrat), Peter Gauweiler (Christian Social Union), and Sahra Wagenknecht (Linke) announced legal complaints against the two laws, to be filed at the constitutional court tonight. Gauweiler — who had called for a referendum to be held on the two laws, because they interfere with the constitutionality of Germany — also made known that the Green Party group in the Bavarian state parliament (Landtag) will go to court against the Pact and ESM as well.

    The Bundesrat, the chamber of the 16 German states, was to debate and pass the two laws tonight as well, with an expected two-thirds majority.


    Four German Anti-Euro Professors Take ESM To Constitutional Court

    Earlier, the four prominent oppponents to Maastricht, the euro and the bailouts, Wilhelm Hankel, Wilhelm Noelling, Karl Albrecht Schachtschneider and Joachim Starbatty, joined by publisher Bruno Bandulet, had announced they will go against the ESM at the German Constitutional Court. They do so on grounds that the permanent bailout fund is entirely anti-democratic and economically disastrous, as it leads Europe into a “fiscal, liability and debt union” and destroys the European economies.

    Their case is joined by the Free Voters party, and will be presented at a Berlin press conference on July 2. Beside Schachtschneider, Free Voters party chairman Hubert Aiwanger will be present, as well as Stephan Werhahn, a grandson of Germany’s postwar Chancellor Konrad Adenauer.

  24. bonbon

    EU Summit Produces `Effect’ Announcement

    June 29, 2012 (EIRNS)–The EU summit produced an announcement of measures to directly bail out banks and to purchase state bonds without “Troika” regimes. According to media reports, Italy and Spain threatened a veto in order to achieve that. In particular, they refused to sign the “growth” program which the German government needs in order to get SPD approval to the ESM/Fiscal pact treaties.

    The measures are outrageous in themselves, but they will become effective at year’s end. For the moment, they are an announcement intended to have an “effect” on the markets. Der Spiegel sees this as a defeat of Merkel.

    The result was achieved this morning at 4 AM, after a 13-hour marathon summit. EU Council President Van Rompuy announced a “breakthrough” in a press conference, and a statement was issued. The summit is not yet over, though.

    It has been decided that a NEW MECHANISM will be created in order to directly finance banks. The new mechanism will not supersede the ESM but, working with or under the ECB, will have the power to order the ESM to directly finance banks. “When [the mechanism] is ready, the ESM will have the possibility to recapitalize banks,” Van Rompuy said.

    At the same time, it has been decided that countries abiding by EU fiscal discipline will receive “help” to keep market refinancing rates low. This means that the EFSF and the ESM will purchase their bonds without such countries having to implement additional austerity measures.

    Yet the EU agreement represents adoption, even if postponed to 2013, of the entirety of the British/Obama/Geithner-demanded bailout plan.
    The Fed is implicitly already in this bailout.
    1) The ESM bailout loans will go directly to banks, so that Germany/Austria/Netherlands credit will directly bail out banks in other countries;
    2) EFSF/ESM seniority is removed, the bailout funds’ loans no longer subordinate other lenders, so that
    3) the ESM will be combined (details to be worked out, they say) with the ECB in a new structure, e.g. collateralized debt obligations will be created with the ECB (and the Fed) holding the senior tranches and ESM (Germany-Austria-Netherlands) in the first-loss tranches. ECB and Fed could loan trillions; and/or EU countries central banks, BRIC and other banks can take “mezzanine” tranches. This was what Gordon Brown demanded in NYT and Geithner demanded last Summer.

    With the agreement to do this in 2013, “the markets” will very soon place excruciating pressure on, to do it immediately as Spanish, Italian, etc. debt collapse again.

  25. Where Charity Begins

    I was walking down Patrick Street , Limerick near Easons this morning at 8.45am and there was not a sinner to be seen on the roads ….except Charity Collectors .

    Outside Debenhams a new group of mothers and teenagers from County Limerick had just arrived and were gathered discussing where their ‘collection patch ‘ was to be …their charity was a rural event ….just next door ( Pennys) was a seperate charity agency with a single seasoned concerned middle aged man who was on his mobile discussing his strategy with another third charity agency single seasoned charity worker who was in viewing distance ( Arthurs Quay ) and the faces on these two men were eye catching to encounter while they both contemplated their political outcome for the rest of the day as a result of these new rural unknowns eroding their traditional patches .

    For a moment it seemed there was no other business going to take place on this would be busy street ….I was tempted to ask myself ..where does charity begin and end ?

    I ran to the nearest coffee shop to embrace my reliable double expresso and taste its aroma ….and lift myself to another plateau.

    • Colin

      Glad to see someone is still getting ‘high’ in Limerick these days.

      • Its called ‘granule economics’….it means the smallest particle that awakens the night before and brings the day forward on a full trottle.

        • Unfortunately , St. Patrick never brought coffee beans to Ireland unlike his counterparts in the Sinai ( Egypt) .Had he done so the industrial revolution would have been a blip and the Google technology Internet would have already morphed to the next nano species and we would not be living in housing estates any more .

          Families would be raised in common network cubicles as in a honey comb and all connected to the local Intel unit in your area . Our social norm would be similar to the behaviour of ants and joyce and yates would be confined to an age gone by.

          Banks would be gone and in their places would be a utility pit stop to blip to for a top up with units of various colours .

          Enjoy your morning coffee today and think about it …before you eat the croissant.

  26. Adam Byrne

    Worth 22 minutes of your life especially when he wraps it up at the end:


  27. joe hack

    Extracts from below from Wikipedia there is a conspiracy thriller here with sex scandal already in place.

    Merkel as one of Kohl’s protégées and his youngest cabinet minister, she was referred to by Kohl as “mein Mädchen” (“my girl”).

    Hollande was a Special Adviser to the newly elected President Mitterrand.

    Hollande initially trailed the front-runner, former Finance Minister and IMF Managing Director Dominique Strauss-Kahn.

    Strauss-Kahn had been widely expected to seek the Socialist nomination for President of France in 2012, and was considered an early favorite.

  28. bonbon

    UK Column: Glass Steagall or Collapse — Go to a “Greenback Pound”

    June 28, 2012 (LPAC)–The June issue of the UK Column, published periodically in the UK, leads with a report from co-editor Mike Robinson (a long-time EIR reader) titled: “Financial System Continues Collapse – Opportunity for Optimism.” After describing the hopelessness of the bailout process in Europe, and ridiculing the propsal of Bank of England head Mervyn King, and Chancellor of the Exchequer George Osborne’s insane call for “bolder action” in bailouts, Robinson says that the collapse of the real economy since the time of Maggie Thatcher can only be reversed with Glass-Steagall and “massive reinvestment in basic economic infrastructure.” He adds: “This should be seen as an opportunity rather than a disaster,” by putting “several million” people to work in productive jobs.”

    As to the complaint that “there is no money,” Robinson references the American system of credit generation, calling for a “system of national credit, a Greenback pound.”

    Another article in the June issue attacks PM Cameron for his reported “joke” to fellow Tories: “Where shall I invade next? I’ve done Libya,” calling him a psychopath waging useless wars, and destroying the UK economy and military in the process. Other articles expose the intentional lies used in the BBC campaign to start a war on Syria, using false pictures and stories on a daily basis, and describe how the same method was used in the Balkans wars of the 1990s.

  29. bonbon

    The Bundestag ESM vote is for a Versailles II, thoroughly denounced by Bueso in Germany. Yet again the Greens proved willing to help the banksters (as they are obsessed with supranational ways to push their agenda, as well a being anti nation-state) and Trittin’s speech is evidence enough.

    Eire threw the Greens out along with FF.

    Now London’s “Weimaristas” are threatening chaos by Thursday (next ECB policy meeting in Frankfurt) to open the money spigot immediately, not waiting for 2013, for a mega-bailout.

    For those with collective sporadic amnesia, Versaille I was the impossible debt loaded on Germany after WWI, which led to 1923 Weimar hyperinflation. This time around it means transatlantic hyperinflation.

  30. Adam Byrne

    Tony Robinson asks if bankers are human


    • bonbon

      Barclay’s LIBOR manipulation and JPMC’s London Whale sparked this.

      We can determine their species after separating the commercial, investment and insurance units, with press interviews, tv etc. They might even recover their humanity, once their toys are taken away. Anyway those Barclay banksters might get time to reflect in the jug.

  31. joe hack

    A think for u to tunk;

    Is it possible that the UK will join the Euro in the coming years?

    • bonbon

      They are already up to their ears in it and trying desperately to “distance” themselves. Blair’s hysterical intervention during the summit betrays their ownership of the deal.

      Check out the Inter-Alpha group of banks,

  32. bonbon

    A voice of sanity from the U.K. Liam Halligan, excerpted below :


    “Britain’s banks are, quite clearly, out of control. The Government hasn’t even got the guts to implement the extremely weak “Vickers reform” – which supposedly set up a firewall between investment and commercial banking.
    Well, history shows that firewalls don’t work, which is why we desperately need a proper “Glass-Steagall” split. Unless we get one, then the on-going use of ordinary deposits to finance investment bankers’ bets will result in yet more UK bank bail-outs. Given the rescues we’ve seen so far, and the gargantuan size of our bloated banking sector, this is something the UK simply can’t afford”.

  33. Philip

    When I read the comments above, it seems to me that progress seems to be predicated on breaking or separating interest groups or insiders. Other terms refer to separation of duties

    Glass- Steagall: Investor/Retail
    Police/ Army
    Accounts Paayable/ Accounts Receivable
    Law/ Government
    Mutually Assured Destruction/ Embarrassment/ Disgrace etc
    The notion of Patents / Monopolies (see John Allen’s excellent comment above)

    The very basis of an equal, fair and progressive society demands well documented and visible protocols of engagement between all interest groups.

    The effect of trying to make the Euro work seems to be forcing these questions on duty separation into the open. The more they try to wash away the embarassing effects on interest groups by bailouts, delay tactics etc, the more the questions of duty separation forces itself into the open.

    This is what this nonsense is all about.

    • bonbon

      A harmony of interests, yes and a separation of powers to avoid the historic imperial history. Aggregation of power by the financial 1% is generating cacophony.

      Let me tell you about banking, as FDR at his fireside chats on radio said.

      Obama’s NDAA expropriated congressional powers for himself – the power to declare war.

      Any as Mundell clearly states in his expose of the Euro, it is functioning exactly as planned – using panic to simply throw any harmony out. Harmony of worker and firm, farmer and industry, education and production, research and the general welfare.

      Most of all the pursuit of happiness replaced with property, my coins.

  34. Deco

    Meanwhile…back at the ranch….


    I suppose we can be certain that none of the PIGIS will want to prevent the ESM bailout, otherwise their polticial and business establishments will get, eventually overthrown in a revolution.

    You can be certain, that Merkel will end up worrying over this.

    And the signs are that the British are getting a bargepole into action and gradually pushing themselves away from the Belgian divorce, and newly renewly Socialist France….

    This is going to last a few more days, and then we will be back to square one.

    The Finns are about to get absolutely castigated in the international businss media. Nobody suggests that there should be bank defaults, and gets away with it. Nobody.

    …don’t forget to beleive the news that is prepared for you and which is pleasing to our advertising sponsors….

  35. joe hack


    “Still no sign of a policy shift to save Europe’s currency”

    • Tony Brogan

      The Paul Krugmans of the world still write as if they believe that this is all a terrible mistake.
      i am firmly of the opinion that we are subject to a calculated plan to destroy the western industrial democracies. this is the plan to create chaos and fear by the banking family elites. those who wish to control the world. Those who financed every war in the last two hundred plus years including the revolutions in France, and Russia and the American civil war.
      After the mayhem comes the solution for more centralised control and governance. First the league of nations, then the UN.Then the European bloc.
      The Bank of International settlements BIS mentioned by Krugman is the central bankers central bank and responsible to no one but themselves. They are the carer of the central bank system not of the people.
      Glass Steagall will not save us. we need to rid ourselves of the central banking system. Currency and monetary affairs need to be returned to treasury.
      The private banking system is a private business and needs to be allowed to fail. The bailouts are breaking us. The moral hazard grows exponentially. Soon only the foolish will trust paper money or its dirivatives.

      The governments can have a national banking sustem run through the post office where people can operate away from the commercial banking system. The only guarantees offered should be the deposits of the people in the post office bank. All other institutions should stand or fall on their reputation. As far as the public is concernerned it should be as in all other businesses , Caviat Emptor.

      The Kruggmans of this world have yet to acknowledge the corruption and manipulation rampant in the banking and other business ventures.

      All currencies including the Euro are doomed to decay on the road to worthless paper not fit to use for the toilet or papering the cracks in the wall. This is the age of competitive devaluations of paper money. Each is only compared to the other and not to anything of substance or proper valuation.

      gold is the standard and the yardstick against which all currencies are and will continued to be measured. all currencies are and have been falling against gold for several years now.

      since the “deal” gold and silver have made a turn around from the recent retrenchment and look as if they recognise the invalid claims. gold is up 5% and silver 8% since the announcement. we will see if this trend continues. The year end will tell us if gold is up for 12 years in a row. It is by far the best protection of the last decade and will, from what I have studied and read, be again this decade.

      • bonbon

        Mundell as I quote above lets the cat out of the bag. The Euro is intended to destroy democracies. Meanwhile Obama/Geithner/Bernanke are hell bent on destroying the USA. Some of the elites met at Dulles for the Bilderberg treff recently and this was the theme.

        Mundell is the father of the Euro and tells it all now.

        Now the Austrian school also as Paul says want to dispense with the Nation State and Hamilton banking.

        Strange bedfellows!

      • bonbon

        But the guarantee you mention is almost exactly Glass-Steagall, a national regulation.

        Pity Ron Paul has not yet signed up on current bill going through Congress. He has blogged about it though.

        • Tony Brogan

          “Now the Austrian school also as Paul says want to dispense with the Nation State and Hamilton banking.”

          Can you send me a reference to this, please?

          The guarantee mentioned is only the security of the deposit by the national institution, the post office, and not any separation of commercial banking and derivative operations so I do not see the similarity you do. The banks can operate any way they wish as long as they are not backed by the taxpayer.

  36. Harper66

    Our “return” to “Bond markets” –

    This is potentially (pending results of sale, namely yield, volume and percentage allocation to non-captive banks and funds) a minor positive for Ireland. Minor, because:

    1.Bills are NOT bonds – bills are short-term instruments, traditionally under 12 months maturity (bonds are over 1 year maturity).
    2.Bills issued currently fall to mature within the period of existent EFSF funding programme, so in effect there will always be funds to cover these, short of a catastrophic collapse of the euro during the duration of the bills.
    3.Issuance of bills has nothing to do in terms of signaling the state of public finances health or economic conditions health of the issuer, as both Greece (see here) and Portugal (here) have issued these during their tenure in the rescue programmes.
    4.Portugal issuance (linked above) covered 18-mos bills, which would constitute a stronger positive signal than that of planned Irish sale, if there was any whatsoever informational content to these auctions.
    5.Ireland has issued T-bills back in September 2010, and then it was NOT a signal of any confidence in Ireland’s financial health.

    The media statements that this sale shows that ‘Ireland is back to bond markets’ is fully incorrect. T-bills market is not the same as bond market. And T-bill instruments are distinct from the bonds.


  37. bonbon

    Following the Barclays LIBOR corruption scandal show the “system” itself is a total ball of wax.


    Chancellor of the Exchequer George Osborne today responded to the announcement that Barclay’s CEO Robert Diamond will join chairman Marcus Agius in stepping down, as “the right decision.” But Osborne was quick to add, in response to Labor Party calls for a broader judicial inquiry into wrongdoing at the banks, that finance “is an incredibly important industry. It’s Britain’s largest private-sector employer. What we don’t need is its reputation tarnished, navel-gazing over these scandals. We know what went wrong, now we’ve got to fix it.”

    This echoes Volker’s argument that Glass-Steagall would unfairly “punish” bankers, so let them contiinue looting us.

    The real question is how do they know they will get away with this? They fully reckon that the population at large will go along to get along … to hell.

    • Tony Brogan

      No politician wants to be at the helm when the ediface collapses. So they are supported by the banks and in turn support the banks.
      The people are largely ignorant as the MSM keeps them in the dark being also bought and paid for.

      what is curious is the fact that the regulators have known about the financial fixes for years but have done nothing about it and made excuse after excuse. Whistle blowers have been ridiculed or ignored.

      Why the change now? something big is brewing and the system is about to blow up.

      The London metals exchange has been bought by the Chinese and will be moved to Hong Kong where it will act as a real physical bullion exchange.. A deal has been made behind the scenes and the power is now in the orient.There was no gold left in the LBE as it operated a paper ponzi scheme with reserves of less than 1% bullion for every ounce sold.
      The western banking systems are disintegrating and now those too big to fail bankers will find they are pawns and will be sacrificed and jailed while the PTB continue on. All to save the politicians hide.
      There is no gold left in the western hemisphere, imo, except tungsten plated gold bars.
      German and anyone elses gold in NY and London will be gone or reduced to irredeamable paper promises.

      Most people will be wiped out by the coming paper money collapse and they don’t know it. Even those who see it coming will be able to do little about it. All taxpayers will be indebted by the bankers debts unless there is a rebellion to repudiate those debts.
      TThe wests standard of living is in rapid decline.
      It’s back to the farm me boy. the cow needs milking and the pigs slopping out. Gotta hoe the row and get those weeds out.
      Potatoes and milk gave an adequate diet and will do again!!

      • Adam Byrne

        How long do you think we have Tony? What’s the timescale?

        • Tony Brogan

          Jim sinclair, Mr gold, figures the price of gold will be 3500 within three years and not inside one year.
          his free web site is http://www.jsmineset.com
          He is a treasure of experience, totally ethically honest and well connected.
          gold is the barometer of currencies. the canary in the coal mine. It is hated by central bankers because of this. They demean it, derogate it, malign it and manipulate it. They have failed to hold it below 1540 and it is now over 1600. it is headed to 3500.
          It will be an evolving process culminating in a bank holiday where we wake up with a new currency or basket of currencies backed by gold.

          Read jsmineset.com and gata.org dispatches. get a free trial at lemetropolecafe and review the presenters and the archives if you have time.

          Gata has had it right for 12 years as has midas du metropole.

        • Tony Brogan

          Just picked up these comments by Jim willie.
          It confirms what I just said about the lack of bullion, reported on Midas of http://www.lemetropolecafe.com

          Speaking of scandals, from my friend Jim Willie…

          gold revelation

          the scandalous scandal of all scandals will not be so much the revelation that the USGovt has no gold reserves
          it will be the 20 to 40 thousand ton shortage of gold in bullion bank vaults when the public
          realizes that ALLOCATED accounts have been systematically raided by the Elite scum
          remember the several class action lawsuits in Switzerland
          they proceed, valued at a few $billion, all kept out of the news
          soon they will be in the news
          and the SECONDARY story will be government reserves
          the PRIMARY story will be the global raid on Allocateds
          that is the message today from my excellent gold trader source
          he has been spot on with everything, I mean everything

          the only error he has ever made (as time passed) was the silver 30 call in 2009
          he was a year early
          / jim

        • Tony Brogan

          Here is Jim Sinclair today

          My Dear Extended Family,

          Gold will go to and above $3500. This is the most important message I have sent you since 2001.

          There are very few of us dynamic thinkers that see everything as a trend constantly in motion. Anyone can be a static thinker, quoting recent economic figures or news headline (MSM), and coming up with a usually wrong opinion.

          The change today is that the “Rig Is Up.”

          The Bank of England turning their backs on Barclays, the company who did their bidding, will be the event in time marking the trend change.

          Many of us in our areas of activity will successfully fight the Riggers. The many complaints that so many of you kindly sent in to fight manipulation released the Kraken in me.

          The Kraken is back in its cage where it belongs. The paper trail is there. The worm has turned. Even more importantly is that this fight in the $1540 gold price area was not for regaining the old high in gold. The six attempts to kill gold, supported by some gold writers looking for favors from the riggers was a now failed attempt to keep gold from trading above $3500.

          The battle to stop gold has been lost.

          The start, like all starts towards the old high and well above, should be slow with more unfolding drama. It will build on itself but gold will trade at and above $3500. I am now as certain of this as I was over ten years ago when I told you gold was headed for $1650. I knew that as fact and to me from $248 gold was trading at $1650.

          My job now is to define gold’s full valuation for you when it occurs. The timing is no less than one year from now to a maximum of three years from now. I believe I will be able to do that for you.

          This is the most important message I have written you since early in 2001. I write this with total intellectual and spiritual certainty.


        • Tony Brogan

          here is Bill H posted on Midas du Metropole today. He usually has a good feel for what is going down.

          * Bill H:

          Gold is not manipulated? It’s OK, because everything else is

          To all; do you remember the first time someone told you that the price of Gold was manipulated? You might have have thought anything from “NO WAY” to “I knew something was not right, that explains it” or anything in between. We know for a fact that stock prices are manipulated as the “working group on financial markets” has been around since 1988 and “protected us against plunges” time after time. We also know that oil prices are manipulated as OPEC routinely makes supply statements to “adjust prices” and several U.S. Presidents have either threatened to, or actually released reserves from the SPR to lower prices. We know that interest rates are actually “set” by the Fed, Bank of England, the ECB etc., and now we come to find out that the LIBOR rate has been manipulated by a cabal of Banks.

          Yet, still today there are public figures that scoff, scrunch their faces, jump up and down and howl insults at anyone who suggests that Gold is manipulated. Before I go any further, I do want to point out that for the Dollar and all of the other fiat currencies, Gold is like “sunlight” is to a vampire. There are many “reasons” that the masters of the universe would want to manipulate stocks, bonds, commodities, economic data etc. etc., …but rather than “many”, there is EVERY reason in the world for them to manipulate (read, SUPPRESS) the price of Gold. There is EVERY reason in the world because Gold is THE direct competitor to fiat money as it is THE time tested alternative to fiat. This logic is more simple than 2+2, there is every reason for governments (and their henchmen) to manipulate Gold, there are piles upon piles of anecdotal evidence that Gold itself is manipulated and proof positive that virtually everything else financial is manipulated. So…therefore…the Armstrong’s, Nadler’s, Christian’s, Gartman’s and the rest of the non logical, (or non truthful) goat heads of the world conclude that Gold (and Silver) are THE ONLY assets that (please read this with a pompous ass’ voice) the governments would never ever ever manipulate Gold and anyone believing such tin foil hat conspiracy theory is…( __________ ) you can fill in the blank if you wish.

          That said, it seems like a whole bunch of the dirt and fraud is finally starting to float to the surface where the public can see it. Not only that, we are beginning to hear the rumblings of “pointing fingers”. It is rumored that Barclay’s CEO Bob Diamond has resigned and has threatened to point fingers and air all sorts of dirty laundry if he is personally taken to task for his role in the LIBOR fraud. Ratings agencies were allegedly pressured by Morgan Stanley and others to rate deals as investment grade when they were not. I could go on and on with mortgage-gate, robo signing, and other frauds from A-Z, the point is, it’s ALL a fraud! EVERYTHING financial! EVERYTHING political, EVERYTHING!

          Which leads me back to the topic of “why” Gold is being reintroduced into the system by the BIS. I honestly believe that Gold is being “re monetized” to combat the obvious fraud everywhere. Gold is “honest money” and as such also keeps politicians “honest” because they cannot spend (give away) what they don’t have. Maybe I am wrong, but the BIS is the “central bank’s central bank” and I believe that they absolutely know that the entire system is coming down. If they want to retain “power” over the system in the aftermath, they had better have a “plan” ahead of time for when it does. No plan? Can you say Mad Max world? I believe the “plan” is to bring Gold back into the system, revalue it and then back currencies on some percentage basis. The printing presses will be “slowed” to the accumulation rate of Gold reserves and the politicians will finally be “neutered”. I have good reason to believe that a “deal” or “plan” has already been made, the BIS reintroducing Gold to the banking system is merely preparation for it’s implementation. Like I said, maybe I am wrong but something REALLY REALLY big is brewing behind the scenes, Gold being re monetized into the system can in no possible way be a negative.

          I said yesterday that I believed the “bottom is in” for Gold and thus the “top” for the Dollar. Gold has been unnaturally pressured downward since Feb. 28th when I wrote that a “breakout” looked likely. A breakout in fact was “likely” at the time but the “manipulators” can read charts as well as I can. They now have a VERY big problem, one of their own making. Gold, Silver and the mining shares are incredibly compressed or “coiled” at a time where the “seasonal’s” begin to turn up, the frauds and insolvencies are coming to the surface on a daily basis AND the “central bank’s central bank” is bringing Gold back INTO the system. What I am saying is that contrary to the current sentiment in the precious metals, (as bad as I can ever personally remember) I believe we are set up for the beginning of the 3rd, final, shortest and by far the sharpest leg upward. If I am correct about the motives of the BIS bringing Gold back into the system, we will one day soon see a weekend where your fortunes will be “reset”. We will see, but I feel the wind is now at our backs and the Mickey Mouse paper games are just about over.

          I wish you all a Happy 4th of July, please remember what exactly it is that we are celebrating! Regards, Bill H.

  38. bonbon

    GLASS-STEAGALL IN THE UK: MP Jonathan Edwards, Treasury spokesperson for Plaid Cymru (the National Party of Wales), has condemned Chancellor George Osborne’s announcement that there won’t be a full public inquiry into the Libor scandal: “This is a scandal of conspiracy, theft and fraud at the heart of the financial industries in London… There is a structural and cultural problem with the UK banking industry which requires a complete overhaul.

    Crucially, we need a complete separation of retail and investment banks (Glass-Steagall Act) which goes further than the recommendations of the Vickers Report.

  39. bonbon

    4th of July, and FT comes to its senses, endorses FDR’s far-reaching banking reform.

    The Financial Times Says It Has Rethought Ring-fencing, Wants “Formal Glass-steagall-style” Restructuring

    July 4, 212 (LPAC)–In an editorial today entitled “Restoring trust after Diamond,” the Financial Times says that measures for restoring trust include separating the investment and retail parts of universal banks, and, for the first time to our knowledge, argues {for} a Glass-Steagall-style approach, as opposed to the Vickers ring-fencing approach. What this means for {action} remains to be seen. We quote the relevant sections:

    “The clash between retail and investment banking has always been evident. What is now clear, however, is that the hard-charging, revenue-seeking investment banking culture predominates when they are pushed together. The more herbivorous retail banking ethos — with its emphasis on patient stewardship — is marginalised. This seems to lead ineluctably to the proliferation of socially questionable trading activities and abuses such as the Libor scandal.

    “The government accepted the principle of separation last year when it endorsed the conclusions of the banking commission presided over by Sir John Vickers. This argued for an internal split rather than a total separation on the basis that the diversity of assets within a universal bank could be a source of strength at times of financial stress.

    “While the FT supported those conclusions, we are now ready to go further. For all the diversification benefits, the cultural tensions between investment and retail banking can only be resolved by totally separating the two, on formal Glass-Steagall-style lines.

    “Other changes may also be required. The government must find ways to unblock the supply of credit to the economy. In the world of Basel III and higher capital ratios, plus tighter regulation, this may be difficult. But then other ways will have to be found. Mr Diamond’s forced departure marks a pivotal moment. The politicians must respond responsibly.”

  40. bonbon

    Brokerage CEO Terry Smith and MP Thurso Back Glass Steagall, “We Have To Go Beyond Vickers’ Ringfencing”

    July 4, 2012 (EIRNS)–There have been more calls for Glass-Steagall in Britain, from Terry Smith, CEO of Tullett Prebon and of Fundsmith, and also from British Member of Parliament John Thurso.

    In an op-ed in the July 1 {Guardian}, Smith wrote that only the implementation of Glass-Steagall will stop the bankers’ gambling-like manipulation of the LIBOR rates by Barclays Bank. Smith begins, “The reaction of the British Bankers’ Association to the revelation that Barclays traders had been manipulating the LIBOR interest rates — they say they were ‘shocked’ — is reminiscent of the scene in the movie Casablanca in which the gendarme Captain Renault closes down Rick’s gambling joint and says, ‘I’m shocked, shocked to find that gambling is going on in here!’ while simultaneously pocketing his winnings.”

  41. bonbon

    Another British Voice for Glass-steagall

    July 4, 2012 (LPAC)–In an interview with Jon Snow on Wednesday’s Channel 4 News, Lord Myners called for full Glass-Steagall legislation to deal with the corruption of the banks.

    Paul Myners was appointed Financial Services Secretary in the government of Gordon Brown. He was made a life peer as a result of this job, because he was not a Member of Parliament.

    His comments came during a panel discussion on Channel 4 News, discussing the evidence given on Wednesday by Bob Diamond, erstwhile Chief Executive of Barclays Bank, to the Treasury Select Committee. Towards the end of the discussion, Snow said to Myners: “Well, Paul Myners, there’s been the Vickers Report into banking, and yet Vickers wanted to ring fence the casino activities and the retail activities. But we can’t trust the bankers to respect a ring fence. If you have a ring fence, you climb over it, dig under it, or work your way through it. The banks have to be broken up between retail and casino, agreed?”

    Myners replied: “Yes, I do agree with that. I think the evidence of the last few weeks, and Diamond himself said that many of the problems that emerged in Barclays were within the ringfence as envisaged. Now the government has already diluted the ring fence that was proposed by Vickers, but the ring fence doesn’t go far enough. We need to go to what is known as a Glass Steagall model, which is a complete separation …”

    Myners has had a long financial career. He became Chief Executive of pension fund management company Gartmore Group in 1985, subsequently becoming Chairman in 1987 until 2001. He was a director at NatWest until it was taken over by Royal Bank of Scotland in the spring of 2000. In August 2010, Myners joined the board of RIT Capital Partners PLC, a substantial investment fund chaired and sponsored by Lord Jacob Rothschild, and later that year he became a Trustee of ARK, the charity supported by London’s major hedge fund managers. In 2000 he became chairman of the Guardian Media Group, publisher of The Guardian and The Observer newspapers.

  42. Tony Brogan

    Why is glass-steagall being pushed so hard and what does it do. What effect will it have on the banking corruption and the derivative banking casinos.

    As far as I know glass-Steagall does not ban any activity. It just separates the two parts of the modern banks actiities.

    why are the modern activities a problem for us. The regular banking operations are bad enough as fractional reserve banking is practiced. this is where billions of currency units are peroduced out of thin air and loaned into existence at intertest. This interest that must be paid isnot available unless extracted from the economy or more currency is produced to cover it. all these activities in a regular business be counted as fraud and we would go to jail. does GS stop this practice. Not that i am aware.
    The derivative banking ,betting cvasinos couls still cvarry on via the hedge funds and banking institutions set up for the purpose. will this acivity cease with GS? Not that I am aware of.
    The commonality with these banks are that they have persuaded the politicians that any bank that has a run or looses a bet and subsequently a massive loss that wipes out what reserves they did have should be save and baile dout by the tax payer. does GS stop this practice. Not that I am aware of.
    so what does GS actually do then if it changes nothing except to devives a banking entity into two sections or separate businesses?
    we still have fractional reserve banking, backed by the central banks who also produce money out of thin air at no cost but at interest.
    We still have casino entities that will attenpt to distort markets and place huge bets at margin to make fortunes at someone elses expense.

    so why GS. Well it must be at act as asop to the public to make them think that somethin is being done to solve the problem. It is a red herring, a ruse, a false trail while the PTB consolidate their grip on the financial world and the political process.

    Lets not forget the MSM here who are controlled by the same entities to so easliy propogate and forward the message, as lies, propaganda to the people who are deluded yet again that somethin is being done.

    I copy here a paragraph from the posting above.

    “Myners joined the board of RIT Capital Partners PLC, a substantial investment fund chaired and sponsored by LORD JACOB ROTHSCHILD, and later that year he became a Trustee of ARK, the charity supported by London’s MAJOR HEDGE FUND MANAGERS. In 2000 he became chairman of the Guardian Media Group, publisher of The Guardian and The Observer NEWSPAPERS.”

    Note that the latest champion of Glas-Steagall is the past board of a large investment group chaired by a Rothschild. He became a trustee of a hedge fund group charity and chair of a mediagroup that includes prestigue newspapers. Perfectly placed to agitate the actions and spin the news.

    Glass-Steagall is a false solution in my opinion and a very dangerous one. Lord Myners is an insider. One of the elite.

    • So when do you think it’s all going down Tony?



      • Tony Brogan

        Hi Josey

        I am not sure what you mean by “all”. I think the financial mess is evolving. government actions or inactions will play a part.
        trust is the key. do you and your neighbour trust the banks and the system. most will continue to live their lives unconcerned. They go to work and pay their bills. Others struggle along to fail do the above. all within the context of the current monetary system.
        When the major player start to pull the plug we will see the changes.
        bonds will be avoided and values fall pushing up interest rates. That will affect the longterm financing. Central banks will continue to keep low or lower the interest rates to the banks helping to keep the short term rates down. As the inflation takes hold these central bank rates are effectively negative rates. no point in putting your money there as it is steadily erroded in buying power.
        This is all about erosion of capital and preservation of buying power of savings.
        Internationally this is the move of wealth to the orient and Russia.
        Personally it is about self protection . No government can look after you. It is about society and people helping each other without government ‘help’.
        The is no time line, but a series of happenings. There could be a major move of events at anytime or an evolution over time.
        One just has to be prepared as best as one can and then enjoy as best as one can.
        Give no support to government solutions as they only add to the problems. Self reliance is the key.
        Protect yourself. Land , silver , and gold.

    • bonbon

      Exactly, from the inner core of modern banking a major breakthrough. They of all people know the extent of the catastrophe, better than any metals dealer. That’s why we reported it.

      Now see the huge fight breaking out. This is the reality and why “labels” as some like to throw around do not reflect real processes going on.

      Imagine how distraught Britain’s elite is to adopt a quintessential American course of action. After 35 years, multiple assassinations from JFK onward to demoralize and collapse progress.

      • Tony Brogan

        “Exactly, from the inner core of modern banking a major breakthrough. They of all people know the extent of the catastrophe, better than any metals dealer. That’s why we reported it.”

        Put me down as a little thick now and then BUT
        What major breakthrough?
        Which catastrophe?
        What has a metals dealer to do with this?
        What are you refering to as having reported?
        Who are the ‘We’?

        clarification please. Thank you.I have great difficulty following your train of thought which leaves me to guess what you are intending to say.

  43. LDN

    Niall Ferguson makes some interesting points re. Glass-Steagall in his 2nd Reith Lecture on BBC Radio 4


    All 3 (so far) are worth a listen on BBC i Player.

    • bonbon

      Please summarize here so we can discuss.

      • Tony Brogan

        You should be able to listen to and summarize it yourself. On the other hand maybe not as you do not summarize your own statements when you are requested to.

    • Tony Brogan

      Fergusons position is basically that the regulations in effect did not prvent the current crop of financial problems. neither did the regulations in the past including such as Glass-Steagall prevent past financial problems.
      He states that there is no evidence that the existance of G/S would have prevented the current crisis.
      he makes the case that possibly the financial crises are the result of too much regulation and that all regulation is subject to the laws of unintended consequences. He is not against regulation per se as in the enforcement of rules of conduct and law in general. He is against what he calls bad regulation that end with bad results or not the results intended.
      He still seems to favour the use of the central banking system where I and others in the audiance disagreed. Central banking is the central cause of our problems imo.
      I believe small local banks or credit unions can serve the needs of and be sensitive to the local concerns.
      Let the too big to fail banks fail. Let there be consequences to actions and so we will remove the problem of ‘moral hazard’.
      governments should not be concerned with monetary policy but only in providing the environment where the banking system can flourish or die according to its own efficiencies. Any function of government should be the preserve of treasury , an arm of government, and the central banks be closed.

      • StephenKenny

        He’s just being populist, with a stern and serious face.
        Too big to fail can’t be allowed to fail – that’s the problem. They shouldn’t have been allowed to become too big too fail in the first place, and the 1930s financial laws, and enforcement organisations, were a big part of that.
        US banks couldn’t cross state boundaries; Broker/Dealers (Goldman Sachs etc) were not allowed to be banks (take deposits), and also weren’t allowed to be limited liability organisations or have shareholders (who weren’t partners). Glass-Steagall was a key part of the rules that were brought in after the 1929 crash.
        Once it had all got out of hand, and the enforcement had been completely compromised, then no laws or rules could have changed anything.

        The problem is that it has become clear that the entire system is broken, the politicians, banks, regulators, academia, the legal system, and the media. Judging them by their actions, they are all completely compromised. Matt Taibbi is, as ever, entertaining and edifying on the subject: http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620

      • bonbon

        Exactly Ferguson, the Bernanke and Barney Frank lie about G-S. Of course Glass Steagall could not have prevented 1929, after all it was 1933 when it went into effect until 1999. Typical British lie.
        Glass-Steagall lets the roten parts of the banking sector fend for themselves, with no FDIC guarantee. So let Lehman, JPMc etc implode. We do not need them. We do need a functioning commercial banking sector with national public credit along the lines of FDR’s RFC to reconstruct the economy after the effects as if a war had ruined it.

        • Tony Brogan

          What is a typical “British” lie? Is it better concealed or more virulent than other lies? Or is it that all spoken british words are lies? Perfiious Albon?
          Do you imply Bernanke and Frank are British? Are they subversive UK agents.

          G/S is US legislation and not applicable elsewhere. Would it have prevented the excesses of Irish banking? Greek banking?, Spanish banking?.

          does it stop the dumping of private debt on to the sovereign?

          • StephenKenny

            The British have the most to lose from any introduction of effective financial regulations, and so in this world where everyone is now acting like an FX trader – I.e. gaming everyone else – it is in their interests to do everything they can to muddy waters, misdirect, obfuscate, and just plain lie.
            It’s worth bearing in mind that the big explosions may have been mainly with US financial services companies (so far), but they all occurred in the City of London: The contacts written by AIG that caused the disaster that cost the US taxpayer at least $200bn were legal only in the UK; the recent JP Morgan losses occurred in London; Iceland’s banks losses couldn’t have been built up anywhere else, and so on. It’s also why the UK used anti-terror legislation to go after Iceland after the Icesave disaster – think about the process of getting a writ to see how far into the UK system this has got.

            Britain has no good choices, only very bad or terrible.

          • Tony Brogan

            Thanks Stephen
            The london financial center is under great pressure.
            As noted the LBE is sold to China and moving to Hong Kong?
            Ben Davies, Hinde Capital, comments are incisive. Also posted above July 1
            I’m heading out for the weekend as Summer has arrived, finally, here.

      • bonbon

        Bad regulation? Did he mention Dodd-Frank or Volker, Gramm-Leach-Bliley, Rinh Fencing etc? The do have the results intended – emmenthaler cheese full of loopholes to let the intended game go on.

        We need national banking of sovereign states, not the imperial looting machine currently in self destruct.

        As regards the 6 or 7 TBTF, too big to fail, too big to bail and to big to jail, well we break them up and any part worth keeping (if indeed there is some such) is kept. That’s Obama’s job and the effects of this likely willful refusal are seen world wide.

  44. Tony Brogan

    Here are a couple of essays on bank collusion and price setting.
    and the destructive power of the over the counter derivative markets to destroy the banking system. It is one reason why there may be no functioning currency one morning when you arise!


    • Collusion. I love that word Tony

      I was having a quiet evening with some quality food and decent beer (in spite of Austerity) and watched the first four episodes of Our Frinds In The North on YouTube. Hard to believe it was sixteen years ago

      The criminal activities in 60s Soho were fascinating and I am big into crime. That is I am interested in criminology, forensics, true crime and detective stories

      I did some digging and hey what would you know. The dirty squad was all freemasons and when they attempted to clean up the met some of the investigating officers and the scum they were pursuing were in the same lodges

      No. Surely not!

      Yes. All true. Fact is you never know who you are dealing with

      • Our Friends in the North Final Scene. Maybe after seeing this some of our younger readers will be tempted to go back and watch it some evening

        Politics, economics, corruption, sleaze and human nature in all it’s ugliness


        PS. Give me a shout if you liked this post. Thanks.

        • Adam Byrne

          I recommend sipping a Sierra Nevada Pauldiv (not that expensive) and dusting off your copy of ‘The Long Good Friday if you want a Soho gangster fix.

          What decent beer did you get?

  45. bonbon

    Austrian Oppposition: ESM Will Lead to a “Euroshima”

    July 5 (EIRNS)–Yesterday’s session of the Austrian parliament on the ESM and Fiscal Pact lasted from early morning into late afternoon, and was thereby visibly longer than the two-hour rush debate in the German Bundestag on June 29. The Austrian parliament featured harsh attacks against the ESM in particular by Heinz-Christian Strache, chairman of the Freedom Party (FPOE), who denounced the bailout fund as a “coup against the Austrian constitution and state,” a “financial dictatorship,” and a “sado-maso treaty, forcing us Austrians to pay without being allowed to have a say.” The ESM would save neither the euro nor Europe, but cause an unprecedented economic, social, and political catastrophe, a “Euroshima,” Strache said. He was seconded by Josef Bucher, chairman of the Alliance Future party (BZOE), who denounced the ESM as a “devil’s deal” that would soon show its true character.

    Due to the policy pact between the two government parties, Austrian Social Democrats (SPOE) and Austrian People’s Party (OEVP), with the opposition Greens, which crossed the aisle to their camp, the ESM was passed by more than a two-thirds majority, with 128 against 53 votes. A no-confidence motion tabled by the FPOE was turned down. Both FPOE and BZOE want to mobilize for a national referendum now, as well as to take the ESM to the constitutional court of Austria.

  46. Tony Brogan

    Lies are endemic around the globe says Egon Von Greyertz of Matterhorm Management of switzerland. See what he says to do with your savings


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