Exploring Hydrocarbon Depletion
NEW! Members Only Forums!
Access more articles, news & discussion by becoming a PeakOil.com Member.
DomusAlbion wrote:Revi wrote:Mister market seems to think the crisis is over. The price of everything is up about 5% today. Silver is up about 2 bucks, copper about a buck and even oil is up a couple of bucks already. Happy days are here again, unless you are buying heating oil for the winter...
I don't quite get the ebullience we're seeing in the markets. The fundamentals have not changed or so it seems. The guillotine blade is still on its way down the Euro's neck is in the stocks. I'm confused.
Italy sold €8bn (£7bn) of 10-year bonds at [a record] 6.06pc, a level seen as unsustainable by analysts, in the first major test of market appetite since European leaders agreed steps to tackle the crisis. Italian leader Silvio Berlusconi is seen as critically weakened and there are doubts he will be able to push through the austerity measures demanded by markets. "[Italy] is still the bête noire of the whole eurozone problem," said Monument Securities strategist Marc Oswald.
In comments that appeared unlikely to calm concerns, Mr Berlusconi issued an extraordinary outburst against the single currency, blaming it for the scrutiny on Italy's finances. He described the euro as a "strange currency" that "has convinced nobody" and claimed that after Germany, Italy had the eurozone's strongest economy. The outburst came just hours after Klaus Regling, chief executive of the European Financial Stability Facility (EFSF), arrived in Beijing to try to persuade China to help finance the eurozone's bail-out vehicle. China has said there will be no "charity" and Mr Regling warned it would likely take "several weeks" to hammer out a deal.
... In a further complication for the EFSF, Germany's constitutional court suspended the right of a small committee of politicians to approve the bail-out fund's actions. The nine-person group had been given the green light to sanction EFSF matters but its powers were suspended after two German politicians argued it infringed other Bundestag members' rights. Some sources suggested the suspension would curtail the EFSF's power to buy embattled countries' bonds in the market. ...
Greeks angry at the fate of the euro are comparing the German government with the Nazis who occupied the country in the Second World War. Newspaper cartoons have presented modern-day German officials dressed in Nazi uniform, and a street poster depicts Chancellor Angela Merkel dressed as an officer in Hitler’s regime accompanied with the words: ‘Public nuisance.’ She wears a swastika armband bearing the EU stars logo on the outside.
The backlash has been provoked by Germany’s role in driving through painful measures to stop Greece’s debt crisis from spiralling out of control. Greeks are furious at the deal, even though it means the banks will write off 50 per cent of the country’s debt and Socialist prime minister George Papandreou said Greece had ‘avoided a mortal national danger’.
Opposition parties blasted the landmark agreement, with conservatives warning it condemned the country to ‘nine more years of collapse and poverty’. But it is the fury of ordinary Greeks which is raising eyebrows. Greek government officials who agreed to the belt-tightening moves have been portrayed in cartoons giving the Nazi ‘Sieg Heil’ salute. And German visitors flocking to ancient tourist sites are being met with a hostile welcome from some Greeks.
Berlin’s interference has revived historical enmities and evoked comparisons to the massive destruction of Greece at the hands of Hitler’s Germany more than 65 years ago. Cartoons have sprung up depicting the European Union’s ‘troika’ as ferocious soldiers in Second World War uniforms. ...
(Reuters) - Chancellor Angela Merkel said on Friday it was important to prevent others from seeking debt reductions after European Union leaders struck a deal with private banks to accept a nominal 50 percent cut on their Greek government debt holdings.
"In Europe it must be prevented that others come seeking a haircut," she said. Speaking in the Bavarian town of Deggendorf, Merkel also said that it was important to put restraints of speculative financial elements and show banks with better regulations. Merkel also told a meeting of her conservative party that it will take many years to overcome the sovereign debt crisis, noting that it was affecting not only Europe but also the United States and Japan as well.
BRUSSELS - The ruling euro-sceptic ODS party in the Czech Republic wants to push for a referendum on the country's future eurozone accession, claiming that the rules have changed since 2003 when Czechs said yes to the EU and the euro. The recent agreement on another bail-out for Greece and on boosting the eurozone's bailout fund is fuelling Czech calls for a referendum, said Czech MEP Jan Zahradil, leader of the European Conservatives and Reformists.
"We should allow non-eurozone members – such as my country the Czech Republic – to decide again whether they wish to enter. We signed up to a monetary union, not a transfer union or a bond union in our accession treaty. This is the major reason why the Czech Prime minister wishes to call the referendum on this matter," Zahradil said in a statement.
The Czech Republic, along with all other eastern European countries that joined the EU in 2004 and 2007, is obliged to adopt the euro once budget deficit and other economic conditions are met. Slovenia, Estonia and neighbouring Slovakia are already members of the 17-strong club. Latvia is also striving to join, while Poland, though still seeing it as goal, says eurozone accession is no longer a priority. But none has so far demanded a referendum, since nine of newest member states, including the Czech Republic, already had a plebiscite on joining the EU.
Last weekend, at an ODS party congress, Prime Minister Petr Necas demanded a referendum on whether the country should join the eurozone. "The conditions under which the Czech citizens decided in a referendum in 2003 on the country's accession to the EU and on its commitment to adopt the single currency, euro, have changed. That is why the ODS will demand that a possible accession to the single currency and the entry into the European stabilisation mechanism be decided on by Czech citizens," the ODS resolution says.
Prime Minister Necas also floated the idea in case Germany gets it way on another treaty change bringing about more economic integration and tougher sanctions for deficit sinners. "In the event that there is a change to fundamental rights that would result in powers being transferred from national organs to European organs, this government is bound to ratify this step with a referendum,” Necas told reporters in Brussels on Sunday evening. ...
dolanbaker wrote:There are rumblings here in Ireland for a share in the haircut!
Lore wrote:I'm going to ask Merkel if she can get my bank to take a haircut.
China has stressed it will not be a "saviour" to Europe as President Hu Jintao embarks on an official visit to the continent that will take in this Thursday's crucial G20 summit in Cannes. "China can neither take up the role as a saviour to the Europeans, nor provide a 'cure' for the European malaise," Xinhua news agency stated. "Obviously, it is up to European countries themselves to tackle their financial problems." Chinese officials also sought to play down hopes of a breakthrough at the G20. Vice Finance Minister Zhu Guangyao said that investment in the bail-out fund was not on the agenda at present.
The duration of the European bailout was 48 hours give or take. And now reality is back in the form of the following headlines:
— Italian 10 Year BTP Yield surges to all time high 6.153%
— Italian-German 10 year yield passes 400 bps
— Italy CDS soar 22 bps to 427 bps
— Italy 5 Year yields bonds join drop, yield rises to over record 5.91%
See a trend? The one thing Europe was trying to avoid, contagion spreading to Italy, has happened.
The OECD has suggested that growth will be just 0.3 per cent (Euro area) - down from a two per cent forecast in the spring - as it comes to a near-halt, hitting Britain's economic prospects.
The UK's GDP figures will be published tomorrow and it is expected that economists' forecasts will be grim.
The OECD also warned that some eurozone countries could see contractions of up to five per cent by the first half of 2013.
MF Global files for Chapter 11 bankruptcy protection
MF Global MF Global could be one of the biggest eurozone debt casualties
US brokerage firm MF Global has filed for Chapter 11 bankruptcy protection after revealing £4bn of eurozone debt exposure.
The US brokerage, which has 2,000 staff worldwide including 600 in London, is said to be planning to sell its assets to rival Interactive Brokers Group.
Shares in MF Global were suspended by the New York authorities on Monday.
Greece will hold a referendum on a new European Union aid package intended to resolve the country's debt crisis, Prime Minister George Papandreou says.
Mr Papandreou said a vote of no-confidence would also be held on the deal - but no dates were set.
The package envisages losses of up to 50% for private holders of Greek debt and a new 100bn euro loan ($140bn).
There have been large-scale protests in Greece against the austerity measures introduced by the government.
Revi wrote: Welcome to our world. I say we reoccupy our economy. Starve the beast. Time banks, alternative ways of living. Then the bankers will be sitting on a pile of fiat currency that nobody wants.
Daniel_Plainview wrote:Greek Contagion Spreads to Italy -- Eurozone Bailout Half-life Down to 48 Hours
European Bailout Fund Could ‘One Day’ Issue Bonds in Yuan
Users browsing this forum: No registered users and 5 guests