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A.steve

The Default Message?

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http://uk.reuters.com/article/2011/07/21/uk-eurozone-idUKTRE76J7V120110721

(Reuters) - Germany and France are willing to allow Greece to slip into a temporary default as part of a bond buyback plan aimed at preventing Europe's debt crisis from spreading, and have ruled out a levy on banks.

... and ...

http://uk.reuters.com/article/2011/07/20/us-usa-debt-fed-idUKTRE76J6IT20110720

(Reuters) - The Federal Reserve is actively preparing for the possibility that the United States could default as a deadline for raising the government's $14.3 trillion borrowing limit looms, a top Fed policymaker said on Wednesday.

It leaves me wondering... given central bank policy over the past 20+ years not to 'spook the markets' - that saying that there's a possibility that something will happen (when it isn't a clearly stated political objective) is effectively an admission that it is absolutely inevitable... and imminent... though the news is being broken gently... so, when there's no room to back-track... whoever has to deliver the bad news can do so with an air of 'we all already knew this.'

Is this an insane theory - or is it actually happening?

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RB will be along shortly no doubt.

Haven't seen him for a while now.

If gold falls 50 or 100 dollars in a short time, he'll be back.

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A Greek default consists of Greece, in the main, failing to pay back roughly half of what it owes to the rest of Europe.

since in this case, the rest of Europe is in effect gifting Greece some of what greece owes them in the first place [via extremely preferential debt restucturing], then the default is happening, the creditors (France, Germany) are losing out like bad creditors should, but without the toxic financial shock that would result if not done in a controlled way, this had to happen, and will probably go further. Now look for austerity in France and Germany as they pay for it, gonna be interesting. They can't really refuse as they are fecked either way, just less fecked this way.

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What's also interesting from the Fed perspective is that this isn't dressed up in Fed Speak. They are very clear in what they are doing, ie planning for a US default.

They will already have plans for a US default, in the same way they have plans to invade canada, what to do if chinese soldiers land on the west coast etc etc

What they are doing here is publicly announcing that they are planning to get a reaction from the crowd.

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What's also interesting from the Fed perspective is that this isn't dressed up in Fed Speak. They are very clear in what they are doing, ie planning for a US default.

I wouldnt worry to much...they are planning also for 10% growth.

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What they are doing here is publicly announcing that they are planning to get a reaction from the crowd.

+1

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What's also interesting from the Fed perspective is that this isn't dressed up in Fed Speak. They are very clear in what they are doing, ie planning for a US default.

That's what I found most interesting about the two stories... both on the Reuters front page at the same time.

What they are doing here is publicly announcing that they are planning to get a reaction from the crowd.

Definitely. The interesting question is: "What can be inferred from this?"

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That's what I found most interesting about the two stories... both on the Reuters front page at the same time.

Definitely. The interesting question is: "What can be inferred from this?"

They are going to print and want peopel to hold their paper to maximise profits as they buy real things with the new issue.

They always print, they have never, ever stopped. never faltered, never wavered. They just print.

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They will already have plans for a US default, in the same way they have plans to invade canada, what to do if chinese soldiers land on the west coast etc etc

What they are doing here is publicly announcing that they are planning to get a reaction from the crowd.

Perhaps a little more than that, the US needs to raise the debt ceiling, there is political haggling and no movement, what about another controlled Lehman event to send even more cash to the bankers. Think what would happen if the US failed to pay it's interest. All hell breaks lose and the Fed gets to go into printy printy overdrive to prop up stocks etc....

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Now look for austerity in France and Germany as they pay for it, gonna be interesting. They can't really refuse as their banks are fecked either way, just less fecked this way.

Corrected for you.

Always keep in mind the real objective here is to force french, german and british taxpayers to bail out french, german and british banks via Greece.

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So what's going to happen in a partial default? 37 Billion was going to be sucked up by banks. So does that mean banks will now make 37 billion pounds less, and so that's some pensions in England and France worth a bit less?

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Corrected for you.

Always keep in mind the real objective here is to force french, german and british taxpayers to bail out french, german and british banks via Greece.

well yes, so you conclude the same as I was saying, same difference, it was always implicit that taxpayers would bail Greek bad debts out, how exposed is the UK?

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well yes, so you conclude the same as I was saying, same difference, it was always implicit that taxpayers would bail Greek bad debts out, how exposed is the UK?

What I meant is, it's not Greece being bailed out, it's european banksters getting free money courtesy mostly of the german and french taxpayers. Greece is just the excuse for it.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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