China down 8.5% FOR THE DAY. Europe down broadly, 3-4% on huge volume. And on Bloomberg everyone is asking, why?
Why? Because China (just China?) is in deep trouble. Because the Chinese central bank has intervened big time and has failed. The market has overwhelmed a large central bank and that is new.
I’m guessing that there were more than a few meetings at the Federal Reserve over the weekend.
August is supposed to be quiet.
This is a pretty extreme law, particularly for Spain. Did Franco rise from the dead or something?
Napoleon tried to do it. Hitler tried to do it. Both failed. Europe in the post medieval era has never been fully conquered. Europe has remained multiple states. Given that it is a continent defined by mountain ranges, peninsulas, and islands this makes sense. It is a landmass of cul-de-sacs. It is not a vast plain which is easily overrun. But now the eurocrats (many unelected) are trying to take over Europe via administrative means.
The goal is a “United States of Europe,” but don’t be fooled. This USE is not a democratic endeavor, as the recent subjugation of Greece shows. It is about domination and coercion.
As Nigel Farage head of the United Kingdom Independence Party said recently a USE would be more like the USSR than the USA.*
Farage addresses Greek Prime Minister Alexis Tsipras personally on the floor of the European Parliament and encourages the leader, and it appears that Tsipras is a leader, to exit the Eurozone “with (his) head held high.”
Indeed there are many “friends of Greece” around the world. More friends than Goldman Sachs, that’s for sure. Though Goldman’s friends tend to be more powerful.
Greece, pull an Iceland.
See, now that we know what the problems are, getting the whole Greek economic crisis thing under control should be pretty easy.
Mohamed El-Erian says the Greek “no” vote is like this scene from the classic movie Network.
Armageddon? Probably not. End of the euro? Probably not. End of the United States of Europe? Probably not. A moment of reality for world markets which have existed for too long in a fairy land? Very possible.
If nothing else this vote is refreshing. (Easy for us to use such terms.)
How does the Fed get dollars to European banks when said banks run out of dollars in which to do dollar denominated business? Print some new ones, then have the euro banks swap euros for the new dollars. A little of this. A little of that. And presto, mini euro-bailout. (Or maybe not so mini depending on the circumstances.)
So the people will decide. That’s good I suppose. Is the EU about to retreat from its frontiers? Will the Greek people capitulate? What will equity and debt markets do? Which country is next? If you have the answer to any of these questions please feel free to contact me in short order.
Culture is probably a factor here. But this map does not indicate good things. When was the initial crash? 2008? 7 years ago now?
Consider also that in Spain unemployment for those under 30 is running at over 50%.
Oh Liberland, what a great little experiment you are.
Indeed don’t. That would not be wise.
This is interesting. Taxes are optional. No army. Only the voluntary exchange of goods and services. A pretty cool flag. Liberland expects 100,000 applications for citizenship by next week.
One can view the new country’s official website HERE.
Vit Jedlicka, a member of the conservative Party of Free Citizens in the Czech Republic, is the self-appointed president of Liberland, which he says sits on unclaimedterra nullius territory wedged between Serbia and Croatia. The 3 sq. mi. “country,” where taxes are optional and a military is nonexistent, does not “interfere with the territory” of the two states, according to Liberland’s website.
“The objective of the founders of the new state is to build a country where honest people can prosper without being oppressed by governments making their lives unpleasant through the burden of unnecessary restrictions and taxes,” reads a statement announcing the creation of the new country this week. The country’s motto is: “To live and let live.”
Click here for the article.
This comes from a good friend of ACC Natasha Srdoc. I encourage everyone to take a look at the attached report as it gives a very interesting perspective on what is really going on in that vital part of global real estate where Europe, The Middle East, and Asia converge.
Natasha is the a Co-Founder of The Adriatic Institute. Her Twitter handle is @NatashaSrdoc.
There is no doubt that this is a soft spot for the Russian leader. Putin is a crony of the highest order and he is surrounded by a constellation of lesser cronies. Russia is pretty much a cronocracy and has been for a long time.
It should be noted that no one is clean here. It’s not like Britain isn’t full of all sorts of financial nastiness. One need only look at the LIBOR scandal to see this. But the Russian oligarchs are a particularly brazen breed. For a Russian public which is now suffering through yet another currency crisis the oligarchs’s ostentatious style may be off putting and could provide a propaganda win for the West. On the other hand many Russians blame the West for their economic woes, not Putin.
But remember Denmark is the happiest place in the world. (sic)