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overtheedge
Member since May 2012
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>Endless Supply of Rabbits? Greece to Make April 9 IMF Repayment; Bond Market Unimpressed; Tsipras Heads to Russia - Mish - Global Economic Analysis
"Who gives a sh. about Merkel ? And or the suffering of her her her party ?"

The problem is counter-party exposure within the EU in the immediate circle and globally in the final analysis.
Merkel and company are barely holding on against those within Germany that are eager to leave the EU.
As German is the heavyweight in the EU group, their exit would trigger a vast cascade failure amongst all the EU member banks.
Consider the potential loss of Germany's Target2 account and its effect.
First thing to recognize is the EU is a banking union. The rest is just window dressing.
Because of the vast web of derivatives and inter-bank loans, an EU failure would initiate an almost instant global bank holiday.

Margaret Thatcher stated to the effect, "Socialism works until you run out of other people's money."
Then those dependent upon socialism turn real anti-social once the social distribution spigot gets turned off.
Imagine the after-effects of global rioting.
There is no money to re-build, replace or restore the infrastructure that will be destroyed.
Without confidence in the monetary system, there can be no global "Marshall Plan".



Do I care about Merkel and co.?
Not at all. Politicians come and politicians go.
The bureaucracy goes on forever until the monetary system fails.
It is that failure I dread.

Keep in mind that Luxemburg's economy includes an appreciable finance sector.
Then there is that proximity to France issue.
Otherwise Luxemburg could weather out a pretty serious financial storm.

Russia is a survivor.
This latest round of sanctions will only give Russia more reason to turn inward and secure their future without developing a dependence upon the international community.
But even that might not be completely necessary due to BRICs bank and AIIB participation.
Putin seems to be the glue holding the country together, but don't underestimate the work being done by Elvira Nabiullina (sp?).

Greetings to you as well from Alaska, formerly Russian America.
Is there a solid connection between the USA acquiring Russian America and the Crimean War?
Many connections between Alaska and Russia still persist.
There is the Bering Coastal native connection as well as a substantial former USSR ex-patriot base.
And no, I can't see Russia from my kitchen window. (Gratuitous dig on Palin).

Everything is connected to everything.
Everything has to go somewhere.
There ain't no such thing as a free lunch.

Yah, I'm obviously a bit paranoid about the future.
Commerce is the key.
Production and trade will be our only hope for a brighter future after the coming stormy transition.
Start locally and expand.
Develop trading partnerships.
Trade for the sake of trading.
But never forget security.


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Beginning of the headline :Greece to Make April 9 IMF Repayment April 9th was one of the critical dates by which Greece was said to be out of cash. By now most expect these kinds of deadlines to come and go in belief the eurozone hat has an endless supply of rabbits. Sure enough, Reuters reports Greece Says Ready to Make IMF Payment on April 9 Greece will repay a loan tranche to the IMF on time on April 9, its deputy finance minister said on Friday, seeking to quell fears of default after a flurry of contradictory stat... Read More
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