Comments on: Notes From Underground: FROM MERKOZY to MERDE???? (HAT TIP BC)

By: yra harris

yra harris — Mon, 30 Jul 2012 20:28:48 +0000

GOOD CAPTAIN–that is the penultimate question —the Europeans have been angered by the U.S. fiscal situation so at least some leadership on the fiscal cliff—again I urge a reading of Otmar Issing’s piece in the FT.The Europeans understand that this isa U.S. election year and the Obama team is evidently searching for something positive–or maybe the U.S. to acquiesce to a Lagarde effort from the IMF .Yes Congress will balk but a huge IMF package may buy everybody some time.Again,the IMF gold hoard can be used as collateral for a massive EUROBOND/IMF bond bailout.I know it is farfetched but there isan election at stake—think Nixon and the first dollar devaluation.Election politics bring interesting ideas

By: Good Captain

Good Captain — Mon, 30 Jul 2012 20:05:30 +0000

I understand and agree w/ your point that Lil’ Tim best come armed w/ something substantial other than platitudes. Outside of backstopping Germany however, what meaningfully can he bring in your opinion? Even backstopping Germany wouldn’t solve anything although it might suffice as a substantial kicking of the can.

By: asherz

asherz — Mon, 30 Jul 2012 15:58:43 +0000

Little Tim will be whispering into to Draghi and Schaeuble ears the equivalent of Obama’s quiet message to Medvedev that he would have “more flexibility” after November 6. Making sure the boat is not rocked until that time. Unsettled markets in September 2008 sealed the election. Making sure a Spanish bank doesn’t follow the same route as Lehman.

By: yra

yra — Mon, 30 Jul 2012 11:35:00 +0000

I’M not: no you have it.Until the “output gap” disappears –it is zero interest rates as far as the eye can see.Debt crisis is not in the vernacular of those who slayed the business cycle–but let the global balance sheet recession is a real phenomenom

By: i'm not here

i'm not here — Mon, 30 Jul 2012 07:51:37 +0000

Growth rates and actual production outputs are just minor details as throwing money into the system to turn things around, eventually, is the main objective and the US has this wonderful template of zero money costs to and for central banks, where in turn the central banks charge everyone else interest. Of course I over simplify everything…don’t I??

In a perfect world there never seems to be a shortage of debt paying slaves.