Tag Archives: euro

The failed EU experiment is coming to an end

Posted on January 14, 2012 by IanPJ

Tyler Durden over at Zero Hedge has posted that S&P’s mass downgrade FAQ may have just hobbled the European Sovereign Debt Market.

All your questions about the historic European downgrade should be answered after reading the following FAQ. Or so S&P believes. Ironically, it does an admirable job, because the following presentation successfully manages to negate years of endless lies and propaganda by Europe’s incompetent and corrupt klepocrarts, and lays out the true terrifying perspective currently splayed out before the eurozone better than most analyses we have seen to date.

Namely that the failed experiment is coming to an end.

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10 years after the creation of the Euro, the pain is set to increase

Posted on January 2, 2012 by IanPJ



On first January 2012 the EU celebrated 10 years of its ‘Common Currency’.



“The euro is the beginning of a stronger European Union. We shall be the best in the world, the best in the world!”

promised Romano Prodi, the former European Commission president on 1st January 2002.

Whilst many predicted its failure, few could have imagined the enormity of Prodi’s promises, the EU has proven in those 10 short years that it is the best in the world, the best at creating a spiralling sovereign debt crisis, a winner at enabling credit downgrades, rising interest rates are going to be one of its future accolades, an absolute hit at creating tens of millions unemployed, forced budget cuts by illegitimate puppet governments and violent protests the like of which Europe has not seen since the end of WWII.

The efforts by European leaders to shoe-horn a range of diverse countries into a rigid financial cage are doomed to fail. But that’s all part of a long-term plan for a global super-currency which can only bring more hardship to ordinary working people, and without a dose of reality miraculously injected into the minds of the Eurocrats, that pain is set to increase.

So far Hungary is the only EU country to say No to this march of ever closer union by its actions, by changing its laws much to the chagrin of the Eurocrats rather than use a pretend veto that carries as much weight or significance as Chamberlains famous piece of paper.

Before Hungary goes the way of Italy and Greece and has its democratically elected government replaced by the polit buro that is the EU Commission and Goldman Sachs, we must join in its defiance, or the multi headed Hydra will keep reinventing itself.

We let Hungary down in 1956, we must not do so again. We must cut off all the heads of the Hydra in 2012, starve it of cash and finally destroy this beast, this bringer of pain and suffering.

This is the year that the EU must finally be destroyed.




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Before I wish you all a Merry Christmas…

Posted on December 24, 2011 by IanPJ

Before I wish you all a Merry Christmas… I would like you all, and I mean all, read a post that will make you go cold. Enjoy your presents and turkey, the wine and port, because come March you may have nothing to eat or drink at all.

Don’t take my word for it, go read the Slog, one of the foremost economic blogs on the internet.

At the current rate, it’ll cost $9trillion to keep the eurobanks afloat until March 31st 2012.


Why we are heading for Grave New World

Now this is serious. You can’t even extrapolate forward and say, “That means the annual running total to bail out eurozone banks is $8trillion”. Looking ahead without being hawkish at all, a private eurobank borrowing need at this accelerating rate would require another $9trillion by the end of Q1 2012.

I calculate that number not as a serious prediction, but to make a simple and obvious point: the world doesn’t have ten trillion bucks right now to throw at 500 European banks. And even if it did, spending that amount on the banking system with the economy dying on its feet wouldn’t even allow the Hank Paulsons of this world to say with any credibility, “There is no alternative”. If this is what it costs just to keep one part of the global financial system from eating itself, then the system is a crock in need of urgent replacement.

Either the banks are allowed to fail. Or the ECB starts printing money. Or the current ClubMed bondholders stop jerking around and face facts: unless something gives here, we’re all dead.

The bottom line is that in order to try and bolster the defences of 500 private banks – hardly any of which are financing capitalist entrepreneurs any more – taxpayers, investors, pension holders and Treasuries around the globe are being turned upside down, and shaken vigorously until empty.

‘Empty’ is almost with us.


Please go read the whole post here. You will wish you hadn’t, but will kick yourself if you don’t.

Now, Merry Christmas to all our readers.




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Talk about kicking the can down the road.. the grand delusional plan

Posted on December 17, 2011 by IanPJ

Well its out, the draft of the agreement that Cameron refused to sign. The not a treaty treaty because its called an International Agreement. 20111216eucodraft

Talk about kicking the can down the road, it is laden with burdensome regulation and unachievable targets all accompanied by, yes you got it, because I guessed it absolutely right, constitutional changes that would grant the EU supremacy. Not just statutes that a future government could back out of or reverse, but constitutional, because they are going for the EU State in this agreement.

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That meeting, the ESM and the Crown – why Cameron said NO

Posted on December 12, 2011 by IanPJ

I would like to URGENTLY garner an opinion from you all out there on a theory that I have as to the full measure of the plan for the ESM, and that famous Cameron meeting last Friday.

I know that many of you who visit this site have looked deeply into our constitution, and are already aware that our State, the Crown, is not the Monarchy, but the Corporation of London.

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Company bosses begin impact limitation fearing Euro breakup

Posted on December 10, 2011 by IanPJ


The business world is planning for the end of the Euro. Companies as diverse as Car manufactures, tax & legal publishers, engineering to home improvement retailers right across the EU are all making contingency plans to minimise risks and in many cases already putting them into action.

According to Bloomberg:

Grupo Gowex (GOW), a Spanish provider of Wi-Fi wireless services, is moving funds to Germany because it expects Spain to exit the euro. German machinery maker GEA Group AG is setting maximum amounts held at any one bank.

“I don’t trust Spain will remain in the euro zone,” said Jenaro Garcia, founder and chief executive officer of Madrid- based Grupo Gowex, which provides Wi-Fi access in 15 countries. “We moved our cash and deposits to Germany because Spain will come back to the peseta.”

They go on to say, The Bundesbank, Germany’s central bank, registered capital inflows of 11.3 billion euros ($15 billion) from non-banks in September, according to the breakdown of its current account published Nov. 9. That helped transform a deficit of 47.3 billion euros in Germany’s balance of other capital flows in August to a surplus of 700 million euros in September.

Companies switched gears from preparing for a possible exit by Greece to some sort of currency breakdown after Italian Prime Minister Silvio Berlusconi’s government collapsed and 10-year Italian bond yields rose past 7 percent in November.

“We obviously have plans in place if something happens,” ABB Ltd. (ABBN) CEO Joe Hogan said in Zurich on Dec. 1. “They can never be as robust as you’d want them to be but we certainly are prepared if there is a crisis.”

The Swiss engineering company “updated what we would do” in the past few weeks, Hogan said. “We just keep updating and making our plan more and more detailed.’

Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, has honed its plans developed following the 2009 financial crisis and is prepared to act if markets dive, Chief Financial Officer Friedrich Eichiner said in November.

The Munich-based carmaker’s response would include reducing production by as much as 30 percent and using its banking unit to directly tap central bank reserves. The company also has reduced its leasing portfolio to manage risks in case used car values decline.

Top of the list of concerns among companies is the collapse of one or more financial institutions in Europe. Executives say they’re already moving money around to avert that risk.

Kingfisher Plc (KGF), Europe’s largest home-improvement retailer, has considered plans for the possibility of a collapse of the euro region and will focus on cash generation to account for that possibility, Chief Executive Officer Ian Cheshire said.

Juan Jose Nieto, chairman of Service Point Solutions SA (SPS), a Barcelona-based document-management company, said he would move the company’s headquarters to the U.K. or Scandinavia in the event of a euro breakup.

K+S AG, Europe’s biggest potash supplier, said the company is assessing the counter-party risk of the banks it works with and, should they reach predetermined thresholds, stop the flow of any new funds into that institution.

“We spread our risk by defining maximum amounts that we allocate to individual bank or issuers of commercial paper and spread our funds broadly among many different parties,” said K+S spokesman Michael Wudonig.

Bloomberg notes that European companies spent billions preparing for the euro when it was introduced in 2000 by 11 countries. Contingency planning for an unravelling of the currency involves cutting investment, moving money to Germany, transferring headquarters to northern Europe from southern, and even going out of business, according to interviews with more than 20 executives.

When the contingency planning and capital flight is underway on such a massive scale, it seems that everyone except the unelected mafia in Brussels can see the writing on the wall.

May the French Banks be the first to go…… quickly followed by the quislings Euro pensions….





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Rumours Euro to be replaced

Posted on November 30, 2011 by IanPJ


There are reports today that the Euro is unsustainable in its present form and will have to be replaced.

The new currency will be known as the Fiasco, to be made up of 100 Débâcles.

Well, lets face it.. it can’t be any worse can it.

(sent to me by email)






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Euro has 50-50 chance of survival as Foreign Office prepares for riots across EU

Posted on November 26, 2011 by IanPJ

As many of the ATM networks are out of action again this weekend, one wonders what planning and technical work is going on behind the scenes. No doubt the banking system in the UK is preparing for the worst.

Leading economist, Jacques Attali, Former President of the European Bank for Reconstruction and Development, is this morning quoted as saying that there is no more than a 50/50 chance of the euro surviving until this Christmas.

The immediate concern is again the trigger point of a Greek default, looking increasingly likely and launching a potential avalanche of sovereign collapses in Italy, Spain and France. As the Italian government struggled to borrow and Spain considered seeking an international bail-out, British ministers privately warned that the break-up of the euro, once almost unthinkable, is now increasingly plausible.

Diplomats are preparing to help Britons abroad through a banking collapse and even riots arising from the debt crisis. The Treasury confirmed earlier this month that contingency planning for a collapse is now under way.

Diplomats have also been told to prepare to help tens of thousands of British citizens in eurozone countries with the consequences of a financial collapse that would leave them unable to access bank accounts or even withdraw cash.

History is about the emergence of movements, projects, ideas that have their moment and their achievements and, in the natural order of things, fail when they meet events beyond their capability to survive. We may well be living at such a moment.

Whilst it may mean the end of many large banking houses, oligarch families and political dynasties, I am sure that there will be few ordinary folk who will mourn the passing of either the Eurozone or the EU, because without a doubt, the collapse of the Euro will put the EU into into a death spiral that it will never survive.

It will be tough, it will be hard to get by, but as a nation we shall be free of the eurocrats and have the opportunities to rebuild, to reclaim our country, it’s customs and laws. With less than a month to go, may I wish you all a Christmas that you will never forget this year, the kind of celebration that you will recall to your grandchildren for years to come.

…and to our political class I wish you nothing except oblivion, for the way and manner in which you have treated the British public, for your treason, there is nothing but contempt. When the EU crashes, you will crash with it.

p.s. You can celebrate ‘Treason Day’, 1st December, on the anniversary of the Lisbon treaty coming into force, by burning an EU flag.



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ECB’s Paramo – “Prepare To Give Up Significant Sovereignty”

Posted on November 24, 2011 by IanPJ


Behold the New Anschluss

The only quote worth noting from the just delivered speech by ECB executive board member José Manuel González-Páramo is the following:

"We cannot completely delegate governance to financial markets. The euro area is the world’s second largest monetary area. It cannot depend solely on the opinions of ratings agencies and markets. It needs economic governance arrangements that are preventive and linear. This underscores my central point that a much more comprehensive approach to economic governance is now the priority for the euro area. And this means more economic and financial integration for the euro area, with a significant transfer of sovereignty to the EMU level over fiscal, structural and financial policies."

In other words, in order to protect people from the "stupidity" of rating agencies which after years of lying have finally started telling the truth, and the market which does what it always does, and punishes those who fail, Europe must be prepared to give up "significant sovereignty" (sounds better than Anschluss) to Europe’s "betters" which is another way of saying ‘he who pays the piper calls the tune."

And "he" in this case is, of course, Germany. In other words, courtesy of one failed monetary experiment Germany will succeed, without shedding one drop of blood, where it failed rather historically some 70 years ago.

Read the whole article and speech at ZeroHedge

Unfortunately, 70 years on, I believe they have learnt nothing of the past, it will fail again. Not because of careless planning, not because of the exploitation of a crisis to get the political gain, but because of one very simple fact. They have not convinced or consulted the public.

I have said many times, and will continue to say:
Extreme reform and change that is undertaken without the explicit consent of the people, can only be maintained through force and repression.

The backlash will come. This continent will not escape this crisis without a major war.




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As Eurozone problems persist, Iceland gets a boost

Posted on November 23, 2011 by IanPJ

As the Eurozone contagion deepens after the disastrous German Auction this morning, this from Zero Hedge:

Chatter across European trading desks, since confirmed by the EBA, is that medium- and long-term funding in Europe is now completely frozen. With Rehn still in denial and pointing to the problems in US and China, it seems things just got a little more desperate. Basis swaps at crisis levels, FRA-OIS at crisis levels, European GDP-weighted sovereign risk at all time highs, Belgium and Austria dislocating today, and EURUSD cracking through 1.3350.

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