Wednesday, 10 August 2011
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13 comments:
Hi DP
would you please tell me your thoughts on the eurobonds and the action in Paris today?
My uneducated "feeling" is that it's rather good for FG as the ECB can
go on buying the piigs bonds. Diluted euros are not bad for FG I think.
On the other hand eurobonds might have exercised some pressure on the
treasuries if the Chinese bought them.
FOFOA's com part is quite a fight club now, isn't it?
Is... is that Fauvi? :-)
What juicy stories of Franco-Deutsche intrigue do you have for us buddy? You get all the best scoops, I've missed them lately! I haven't as yet come across the results of the Paris meeting, but I have seen that the ECB bought a boatload of bonds ahead of the meeting, and I saw an article saying Merkel will take pain at home if she agrees to Eurobonds. I also read somewhere recently that we shouldn't expect any serious talks on eurobonds at this meeting -- so really for now I don't have much to work on, unfortunately. Sorry! :-(
FOFOA's com part is quite a fight club now, isn't it?
I really don't know what you mean... :) LOL
No chance to hide, eh? :)
Well, I am quite intrigued what's going to happen in short term re the liquidity. Soros wants eurobonds, all parties except FDP are for the eurobonds, many politicians from all parties are against, people who care are against them too.
What next? Is the euro high a) because the european banks buy it b) because the fin markets trust the ecb c) because there is a mysterious buyer (Soros said) - China ?
So now what? French banks going tits up? I don't believe.
Italian ones? Won't happen either I think.
Would have been better for FG to have the eurobonds taking the burden from ecb away?
Yes, of course the eurobonds can't be brought in overnight, the need to change the European treaties for that.
Then why the whole theatre about them, just a meme?
For whom? Just in order to incite the population in Germany?
I can't understand a single idea in this cacophony. And I don't understan the enthusiasm at FOFOA's either for the higher gold price. I thought it is not important yet. As long as it can still be controlled by BBs (and the quantitystreched) I don't care too much. It's even bad to have now higher prices when many still want to buy as my mother for example. older than gold this year she decided to make the step and now I am her jamesturk!
There are so many questions I have to the NOW_events and see no answers.
Bye
Fauvi
Great to see you again my friend! ;)
Did you happen to already see this Spiegel article? I just read it this morning.
Eurobonds are just going to happen, aren't they? I think the theatre is just ensuring everyone knows well in advance that they WILL happen, so when they happen it has already been priced in and there is no major disruption.
I think, personally, that the EFSF doesn't need too much cash, because I think they will back-to-back the sovereign bonds they buy with Eurobonds they issue to China/whoever, skimming the spread between the rate they charge the sovereigns, and the rate they pay to Eurobond investors. €440bn seems like quite a lot of cash, if you are only going to tie-up chunks of it temporarily before bringing in more cash from someone else in exchange for a nice, safe Eurobond with a very low interest rate demanded. €440bn could swell pretty quickly like that, and as long as everyone can afford the repayments, no defaults and everyone's happy. Eurobonds: the new alternative to UST's. Simples.
I don't understan the enthusiasm at FOFOA's either for the higher gold price. I thought it is not important yet. As long as it can still be controlled by BBs (and the quantitystreched) I don't care too much. It's even bad to have now higher prices when many still want to buy as my mother for example. older than gold this year she decided to make the step and now I am her jamesturk!
Buddy, I'm sure you're better looking than Turkey, and perhaps more clued-in too. ;)
Why does your dear old mum decide now she wants to buy gold? Why does anyone? (Except perhaps a small handful people who understand Freegold-RPG already and have great confidence it is coming, so are happy to just wait it out, whatever happens along the way...)
Is it because the price keeps dropping? Or is it maybe that gold — among a sea of other options going flat to down — shows the "promise of more euros later", much the same as UST's being a "promise for more dollars later"? ;-)
We're all speculators now!
Fight club is the perfect analogy. My view is FOFOA isn't like ZH — ZH is just an ongoing bar brawl as far as I can see (I don't often look, but that is always what I saw when I have). At FOFOA I think it's much more good-natured, encouragement to up your game and get with the program. Some people just will never up their game and get with the program, so hopefully they get bored quickly and leave, or at least go and lurk in the shadows for a while to lick their navel and contemplate their wounds. But some people achieve greatness and stick around, some even later send their thanks for giving them a good kicking to teach them a lesson about themselves. :-)
Hi DP
yes, we are being warned that the eurobonds are on their way.
They first create some mental accommodation then they implement them.
Thanks for the link. Nice reading, not sure how much of it is true. The architects of this new European monetary policy are definitely not Merkozy and the finmins.
Today the word is European "Wirtschaftsregierung" and that is a big question how the Europeans will accept it and for how long due to the big historical animosities. I don't even speak
about "democracy" because there is no such word or it is just only a word.
Next in line is Switzerland. Juncker once said that "that white spot" in Europe is intolerable. If they really peg the franc to the euro - and they will even if they have to vote to change their constitution! - there is no more white spot and all fx investments are soon dust. Not bad for us of course.
BTW DP why is oil now cheaper than some months ago?
Recession? More imput from where? Speculation?
Anyway not inflationary and helping Obanana and the rest of them.
And did you notice?
It has been so pleasant without those ash odours around at FOFOA….although quite thick sometimes the air but now again it’s stinking! Pestilential! Pfui, as we say here.
Yes, I forgot to ask you why do you think Soros is given so much attention when he asks for eurobonds?
Why is he interested in seeing Europe in this deal? Wasn't the Tobin tax his proposal?
You know of course he now has a family office and has no longer to declare his investments to the SEC. Did he take delivery when he sold his GLD shares?
I also wonder if there is a connection between the NoW scandal and Soros. Of course my personal conspiracies but I feel as there were a fight between some oligarchs at the time being and I'd love to understand what happens. There is no coincidence when such things take place.
Did he sell his shares, or redeem his baskets? I don't know.
I think he's given attention whenever he says something politicians and the media want to see said, just like anyone else - but of course even more so given his inflated credibility.
Wirtschaftsregierung, for those not familiar with what this word translates as in plain English.
There is always a chance that Ash can be persuaded of something new. Let's see where he's going.
My dear old father-in-law likes to say to me:
Democracy? What we need is a benevolent dictatorship.
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