The Golden Truth: Was A Wrecking Ball Just Taken To The EU Taxpayer Bailout Agreement?

Friday, October 28, 2011

Was A Wrecking Ball Just Taken To The EU Taxpayer Bailout Agreement?

Looks like the German high court has issued an injunction on the German Parlaiment's ability to deploy taxpayer money to fund the new EFSF funding agreement. Sourced from zerohedge quoting Spiegel Online:

Germany's Federal Constitutional Court on Friday expressed doubts about the legality of a new panel of lawmakers set up by the German parliament to reach quick decisions on the release of funds from the euro bailout mechanism, the European Financial Stability Facility (EFSF). The court issued a temporary injunction banning the nine-person committee in the Bundestag from taking any decisions on the deployment by EFSF of German taxpayer money.

Here's the direct LINK

As I commented yesterday, the "rescue agreement" has a lot of holes in it that can ultimately only be funded realistically by printing money and expropriating the Taxpayer wealth from countries that still have middle class wealth to steal and give to the banks under the guise of "saving" Greece. It's good to see a supreme court that is still independent enough from the tentacles of banking wealth that will take a closer look at everything. That would never happen in the United States these days...

But wait, there's more: The Italian banks are looking a gift horse in the mouth and are lifting their leg on any new capital raising requirements. This is absurd. Italy, on the cusp of financial collapse, gets an offer of a free lunch from German taxpayers (and U.S. per the terms of the rescue deal via the IMF), and all they have to do is pay the tip. Here's the article from the Financial Times LINK

This is crazier than last night's World Series game. I wouldn't short this market, but I wouldn't bet that yesterday's EU deal gets implemented the way it was drawn up...but I would get ready for A LOT more money printing by buying as much gold as possible below $2,000/oz and as much silver as possible below $40.

This was the German public's response to the EU rescue agreement:

9 comments:

AnonymousFriday, 28 October, 2011
Worth a listen..

John Doody on Gold Stocks—Undervalued and UnderlovedDoody also discusses Argentina’s new tax legislation

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/10/28/john-doody-phd/gold-stocks-undervalued-and-underloved
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AnonymousFriday, 28 October, 2011
Eric Janszen: We Are Witnessing The Death of the Dollar

What do you get when the producer of the world's reserve currency takes on too much debt? Nothing less than the end of the US Treasury-based monetary system.

http://www.chrismartenson.com/blog/eric-janszen-we-are-witnessing-death-dollar/64317
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SatyaPranavaFriday, 28 October, 2011
not only am i a broncos fan, but i'm a cardinals fan too, for over 30 years now...it's been an exciting 28 hours!
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AnonymousSaturday, 29 October, 2011
Some ride...

all-or-nothing macroeconomic or systemic issues dominate the buy-sell decision on a daily basis.

http://online.barrons.com/article/SB50001424052748704407404576651323877612518.html?mod=BOL_hpp_dc

Ned Davis Research has been among the numerous longtime market
watchers marveling at the unity with which stocks are either rising or
(rare as it's been this past month) falling. Since 1972, the median
correlation of an Standard & Poor's 500 member stock to the S&P index
itself over the prior three months has been 0.46, meaning 46% of
individual stocks moved the same way as the index. It hit 0.86 a week
ago Friday in a rising tape, a level exceeding the day of the 1987
crash and one usually associated with panicky crash-like days.

This all-or-nothing character can also be seen in the frequency of
days in which at least 90% of all stocks in the broad S&P 1500 move in
one direction. Wayne Kaufman, market analyst at John Thomas Financial,
says this happened 14 times in 2006. The next four years' tallies were
23, 39, 44 and, last year, 47. So far this year there have been 58
such days, including 33 of the past 62.

Explanations range from the prevalence of hyperspeed cyber traders to
the ascendance of exchange-traded index funds as preferred vehicles
for the fast money.
But this sort of monochromatic action also tends to accompany markets
in which all-or-nothing macroeconomic or systemic issues dominate the
buy-sell decision on a daily basis.
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AnonymousSaturday, 29 October, 2011
Treaty of Debt - An Eye Opening Video on the ESM Bailout Mechanism

There are no independent reviewers and no existing laws apply. Thus Europe's national budgets will be in the hands of one single, unelected body that is accountable to no one and immune from all legal actions.

Is this the future of the EU or will the German supreme court and other governments put an end to it?

http://globaleconomicanalysis.blogspot.com/2011/10/treaty-of-debt-eye-opening-video-on-esm.html
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AnonymousSunday, 30 October, 2011
Well..if you had any doubts where we're going...

Larry Summers: Debt Got Us Into This Mess and Debt Will Get Us Out
Debt Is Good?

"The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending," Summers writes in a recent op-ed in The Financial Times.

http://finance.yahoo.com/blogs/daily-ticker/larry-summers-debt-got-us-mess-debt-us-143206417.html

Exclusive buttonwood gathering video..

http://video.google.com/videoplay?docid=6827163268088648679
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AnonymousSunday, 30 October, 2011
Fergusson discusses how the hyperinflation affected different groups in German society in different ways – with debtors benefitting and huge numbers of middle-class savers wiped out.
The lbo kings will be rewarded...high junk issuers will reign even more supreme...

James Turk in conversation with Adam Fergusson

Riots, corruption and political extremism were just some of the malignancies encouraged by the hyperinflation. He points out that those who held hard currencies as well as people who held tangible assets like gold and silver were in-large part protected from the worst economic consequences of the hyperinflation. In his words: “gold remained at all times in Germany the measure of what was important to them.”

http://www.goldmoney.com/video/fergusson-turk-interview.html
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AnonymousSunday, 30 October, 2011
Then we are joined by former constitutional and civil rights litigator and contributing writer to Salon, Glenn Greenwald, the author of “With Liberty and Justice for Some; How the Law is Used to Destroy and Protect the Powerful”. We discuss the two-tiered system of justice in this country that protects the powerful and punishes the powerless, and how the uprising by the 99% is the first step in reversing a complete takeover of America by oligarchs.

http://ianmasters.com/

http://ianmasters.com/sites/default/files/mp3/bbriefing_2011_10_30b_Glenn%20Greenwald.mp3
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AnonymousMonday, 31 October, 2011
Clear and Present Danger

This might have been worth the risk if foreign borrowing had been invested for roads, high speed railroads, new
industries, cheap energy, airports, and to fund scientific research. The debt would self-liquidate. Instead, some
of the debt has been used for transfer payments to fuel current consumption or for items like farm subsidies.
It’s as if you mortgaged your house to buy groceries. Eventually you’ll have no house and no food either.
Moreover, a very large chunk of the debt has been monetized through Federal Reserve Bank purchases and used
to fill gaping holes in bank balance sheets. Unrepentant banks resist reform and dilute attempts at regulation
while soaking up ongoing subsidies. All of this is dead-end financing at the expense of citizens that saved their
money and pay taxes.

http://www.tavakolistructuredfinance.com/CPD.pdf
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.