he euro zone’s debt crisis is just the center of an “adjustment” which is affecting all advanced economies, former European Central Bank (ECB) President Jean-Claude Trichet told CNBC.
“The Europeans have a special responsibility because we are the epicenter of the worst crisis since World War II. And that, of course, calls for highly responsible decisions,” he said.
All the advanced economies are undergoing their first major adjustment since the Second World [...]
“Europe is going to be in a very difficult position during the next six to 12 months” Sweden FinMin Anders Borg
STOCKHOLM: The eurozone crisis will get worse before it gets better and Greece could exit the single currency bloc within a year, Swedish Finance MinisterAnders Borg said in an interview on Saturday.
“I don’t think we’ve seen the worst yet in countries like Spain and Greece. They have such serious problems that Europe is going to be [...]
ECB head Jean-Claude Trichet: July 27, 2011:
“Speculating on Greece defaulting is a certain way of losing out. Such a speculation would be a sure-fire way of losing money given the decisions taken last Thursday”
And what happened next to Greek bond yields (and inversely, Greek bond prices):
-> Those who ‘speculated on Greece defaulting made a non-losing 70%+ return’. Whatever happened to never bet against central banks?
ECB head Mario Draghi, July 26, 2012:
“Within our mandate, the ECB is [...]
Corporate and $Billionaire “Propaganda” that Social Programs are in crisis and must be slashed.
– James Galbraith, an economist at the University of Texas.
THE BANKSTER LlARS ARE EVERYWHERE:
“It is an error to think that fiscal austerity is a threat to growth and job creation.”
– European Central Bank President Jean-Claude Trichet July 2010
“We’re going to cut spending to get the debt down, help create jobs and prosperity, and reform government programs.”
– Rep. [...]
Cyprus requests 5 billion euro loan from Moscow – Russia’s finance minister
One week. Literally. After last Friday morning, speculation that Germany had yielded to Mario Monti and would allow an unconditional and IMF-free rescue of Spain and Italy while the seniority of the ESM was eliminated, sending the Spanish 10 Year yield to under 6.2%, the same security is now back over 7%, as Finland and Holland (or half of [...]
… (December 11, 2009) – Greece’s prime minister, George Papandreou, told reporters in Brussels on Friday that European Central Bank President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Juncker see “no possibility” of a Greek default, Bloomberg News reported. Papandreou also said that there was no possibility of Greece leaving the euro area, according to the report.
… (January 29, 2010) – There is no bailout and no “plan B” for [...]
No one should think that “because of the forthcomingness (of central banks), there is no crisis,” Jean Claude Trichet told a conference in Washington on Saturday. That should be a “collective, collegial message from the central banks.”
“No one would have expected that such a long time after Lehman we would still have the scale of expansion in our balance sheets.”
However, the French banker who stepped down after eight years at [...]
Two Federal Reserve district bank presidents said the strengthening U.S. economy is reducing the need for additional monetary easing.
“As the U.S. economy continues to rebound and repair,” additional steps “may create an overcommitment to ultra-easy monetary policy,” St. Louis Fed President James Bullard said in a speech yesterday in Hong Kong. Atlanta Fed President Dennis Lockhart said in Washington that “we should hold the balance sheet where it is for [...]
by John Mauldin
… (December 11, 2009) – Greece’s prime minister, George Papandreou, told reporters in Brussels on Friday thatEuropean Central Bank President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Juncker see “no possibility” of a Greek default, Bloomberg News reported. Papandreou also said that there was no possibility of Greece leaving the euro area, according to the report.
… (January 29, 2010) – There is no bailout and no “plan B” for the Greek economy because there [...]
Greece’s use of collective action clauses forcing investors to take losses under its debt restructuring triggers payouts on $3 billion of default insurance, the International Swaps & Derivatives Association said.
A total 4,323 credit-default swap contracts may now be settled after ISDA’s determinations committee ruled the use of CACs is a restructuring credit event, according to a statement distributed today by Business Wire. Before the ruling, Greek swaps rose to a record $7.68 [...]
Default insurance on Greek debt won’t be paid out, the International Swaps & Derivatives Association said after it was asked to rule whether part of the nation’s $170 billion bailout was a credit event.
The group said the European Central Bank’s exchange of Greek bonds for new securities exempt from losses being imposed on private investors hasn’t triggered $3.25 billion of outstanding credit-default swaps. ISDA’s determinations committee, including JPMorgan Chase [...]
The “Shock Doctrine” is clearly at work again. Look at Italy’s new leader’s credentials, probably Mario Montihttp://en.wikipedia.org/wiki/Mario_Monti
Monti is the first chairman of Bruegel, a European think tank founded in 2005, and he is European Chairman of the Trilateral Commission, a think tank founded in 1973 by David Rockefeller. He is also a leading member of the Bilderberg Group. Monti is an international adviser to Goldman Sachs and The Coca-Cola Company.
In Greece [...]
ECB President Mario Draghi cuts the euro’s last lifeline … Anyone thinking that the arrival of Mario Draghi as president of the European Central Bank might herald a change in approach to the eurozone debt crisis would have been sadly disappointed by his first public appearance in the new role on Thursday. True enough, he did cut interest rates, but this was already part of a pre-written script and can [...]
European negotiators have asked Greek debt holders to accept a 60 per cent cut in the face value of their bonds, a hardline stance that far exceeds losses agreed in a deal between private investors and eurozone authorities three months ago.
The stance, delivered to a consortium of international banks at the weekend by Vittorio Grilli, Italian treasury chief and lead eurozone negotiator, is a victory for German-led northern creditor [...]
From the ECB:
Tomorrow and the day after tomorrow: a vision for Europe
Speech by Jean-Claude Trichet, President of the ECB, at the Humboldt University, Berlin, 24 October 2011
It is a great pleasure to be invited to speak here at the Humboldt University this evening. One can only be honoured to be in the university of Hegel, Heinrich Heine and the Nobel prize-winning physicists Albert Einstein and Max Planck – not to mention [...]
For over a year, our premise #1 in interpreting the newsflow out of Europe has been that in the absence of actual practical ideas, and the continent’s glaring inability to do simple math, the only option left to bEURaucrats has been to literally baffle people with so much endless bullshit that the general audience would be simply stunned by the possibility of an alternative that the union’s leaders were all [...]
By News Wires (text)
REUTERS – Plans to tackle the euro zone debt crisis have stalled with Paris and Berlin at odds over how to increase the firepower of the region’s bailout fund, French President Nicolas Sarkozy said on Wednesday.
Sarkozy told French lawmakers the dispute was holding up negotiations and flew to Frankfurt to talk with German Chancellor Angela Merkel in an attempt to break the deadlock ahead of a make-or-break European [...]
A French-German split over Europe’s rescue strategy emerged as finance ministers prepare to meet in Brussels tomorrow under pressure to craft a solution to the region’s debt crisis.
With a summit scheduled two days later, a disagreement over theEuropean Central Bank’s role threatens to stymie progress on the banking and economic questions needed to deliver the comprehensive strategy demanded by global policy makers. Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group [...]
If anyone is surprised that things in Europe will get massively surreal before this is all over, we suggest finding another thread. In the meantime, for the latest example of the utter chaos and “make it up as we go along” we go to the ECB which has just, in very polite terms, warned Belgium that its bailout-cum-nationalization plan may not be quite feasible. [...]
The European Central Bank has called on national governments to now do their part to ease the debt burden. Jean-Claude Trichet spoke ahead of a key meeting of world finance ministers, who are gathering in Paris to hammer out solutions to the crisis. The Fitch agency has also downgraded Spain’s rating, as well as the creditworthness of several UK and Swiss banks. And Portugal [...]
According to insider sources, it looks as though Germany is going to flee the horrible, financial state of the Euro zone.
Phillippa Malmgren, the President and founder of Principalis Asset Management, “speculates” on her website that in the next few weeks, Greece will default while Germany will abandon the euro all together.
Malmgren was Special Assistant to the President for Economic Policy on the National Economic Council for President [...]
WASHINGTON (Dow Jones)–Sovereign debt woes rocking world financial markets are a global phenomenon and not just a European one, even though tensions are the most acute in the euro area now, European Central Bank President Jean-Claude Trichet said Friday.
“What we are seeing now is the illustration of a global phenomenon, the global crisis of sovereign risk,” Trichet told a conference in Washington on the sidelines of the annual meetings of [...]
“You need … to work together to do what is essential” … Timothy Geithner, US Treasury Secretary. Photo: AFP
DIPLOMATIC tensions between Europe and the US have heightened after the US Treasury Secretary, Timothy Geithner, attended a meeting of euro zone finance ministers at the weekend, having urged them to act ”quickly and decisively” and increase the size of a €440 billion ($586 billion) rescue package.
Global Research, September 18, 2011
There are those who make excuses for the Federal Reserve and for the European Central Bank as well. Both are controlled by the banking community and are only interested in enriching themselves. These central banks take their orders who own or control these central banks. In the case of the ECNB and other sovereign banks, they are responsible for the terrible state of finances in the [...]
Europe stood defiant in the face of US criticism about its public finances Saturday as finance chiefs wrapped up two days of talks in Wroclaw, Poland. Outside the summit, at least 20,000 European workers protested against austerity measures.
By News Wires (text)
AFP – Europe hit back Saturday at US lecturing on its public finances, insisting the eurozone is better off than global rivals as talks on [...]
Even as the eyes of the world are currently frozen in a spot in time from ten years ago, and Wikileaks is making doubly sure of this by releasing the entire record of Metrocall pager (remember those?) intercepts starting at 9:55 am on 9/11/01, the world itself continues onward, and especially those who determine its global policy of “Prevention of Harm to The Status [...]
The ECB cut its growth forecast for next year to 1.6pc from 1.9pc, and to just 1.3pc in 2013 Photo: PA
German finance minister Wolfgang Schauble said there will be no more money until Grecce “actually does” what it agreed to do. “I understand that there is resistance among the Greek population to austerity measures. But in the end it is up to [...]
No sooner does former top Chicago labor/anti-trust lawyer, now IMF head Christine Lagarde instruct “the US and Europe to abandon fiscal austerity and switch to stimulus measures” than European Central Bank President Jean-Claude Trichet echoes her, saying
…threats to the euro region have worsened and inflation risks have eased, giving officials the option to take further action should the debt crisis worsen…
We paraphrase ourselves because the eggheads at [...]
The lack of strong central coordination of the euro zone’s debt and spending policies is a key reason Europe has been unable to resolve its financial crisis despite more than 18 months of trying.
And that is why, despite all the political obstacles, Europe appears to be inching closer to a more centralized fiscal union that would eventually turn the euro zone into something resembling a [...]
By: Patrick Allen
CNBC EMEA Head of News
Deutsche Bank’s CEO on the outlook for banks.
The DAX [.GDAXI 5255.32 -283.01 (-5.11%) ] led the losers, falling by over 5 percent, while stocks in London and Paris also fell sharply.
The biggest loser in Germany is Deutsche Bank [DB 36.27 -2.33 (-6.04%) ] after CEO Joseph Ackermann told a banking conference that the euro zone debt crisis could [...]
(Reuters) – Economy Minister Giulio Tremonti promised on Sunday to meet Italy’s budget commitments after the European Central Bank stepped up pressure for action by the struggling center-right government.
Tremonti, under mounting pressure to present a credible plan to fulfill a pledge of balancing the budget by 2013 and cutting Italy’s 1.9 trillion euro debt pile, told a business conference in the northern town of [...]
A fresh round of capitalisation for European banks was firmly ruled out by EU officials and bankers when they appeared before an emergency meeting of the European Parliament’s economic committee.
The officials poured cold water on calls from Christine Lagarde, head of the International Monetary Fund for “mandatory” recapitalisation to avoid another financial crisis but acknowledged that the EU economy was continuing to weaken.
Jean-Claude Trichet, [...]
Today’s December Gold futures contract notched another all-time high trading $1684.90 before experiencing an avalanche type sell-off and trading as low as $1642.20 late in the session. The Gold market covered a very choppy, volatile, and almost surreal $42.70 trading range. The market was supported early on by the news that the Bank of Japan intervened in the currency market selling An undisclosed amount of Yen to prevent [...]
They say there’s always a silver lining. Yesterday there wasn’t. Markets around the globe sold off in a chaotic day. The Dow Jones Industrial Average’s hair-raising ride ended the day down 512 points. The discernible theme among the wreckage was a generalized loss of confidence in the policy-making role of governments, here and in Europe.
If we had to single out one story in yesterday’s events [...]
BAYREUTH, Germany — Germany’s 100th Wagner opera festival kicked off here Monday in an edition that will include a taboo-busting performance by an Israeli orchestra.
The annual tribute to the works of the 19th-century composer, a fervent anti-Semite who later inspired Nazi leaders, will include for the first time a concert by musicians from Israel, which maintains an unwritten Wagner ban.
On Monday afternoon, German Chancellor [...]