Posts Tagged ‘Spanish bonds’

Notes From Underground: George Soros Gets It Right; Cyprus Follows Britain Down An Ugly Yellow Brick Road

April 10, 2013

Over the last few years of writing Notes From Underground, I have taken his eminence, George Soros (aka the palindrome) to task for advocating that the German polity surrender its sovereign authority to a federal EU entity as he pushed for a harmonization of fiscal authority and then an EU-wide EUROBOND. Previously, Mr. Soros has pushed that the Eurocrats not pursue this Eurobond through a nation-by-nation vote but rather just foist it upon the citizens of Euroland. In a paper released yesterday, Mr. Soros is again pushing a Eurobond backed by a union-wide banking structure and a Euroland harmonized tax system, in which all nations surrender some sovereign authority to a centralized power. There will be no BUNDS, OATS, SPANISH or ITALIAN bonds. It will just be a Eurobond backed by the full credit of the EU fiscal authority. This time around though, Soros does advocate the German government should seek the consent of the electorate.

(more…)

Notes From Underground: Let’s Assume We Have A Can Opener…

April 15, 2012

As regular readers of NOTES are well aware, I have been very critical of market participants like George SorosĀ and their sanguine views of the European DEBT CRISIS. Many analysts like Jim Cramer have spent the last years waving the debt problem away. First, it was Greece was too small to have an impact on Europe. Ireland was too small and besides was ring-fenced by a bad bank structure. Portugal was smaller than Greece, thus nothing to be concerned about. Italy and Spain were possible problems but many were listening to the flirtations of the Chinese, who, time after time, made solicitations about purchasing European Debt. (By the way, we still haven’t seen the Chinese Sovereign Wealth Fund enter the fray.) If all else failed, European financial leaders were too exposed to the EURO to allow the European Monetary Structure to collapse. Germany would not allow the work of Helmut Kohl and others to be just another failed attempt at a unified Europe.

(more…)

Notes From Underground: Spanish Election Provides No Surprise

November 20, 2011

As the polls expected, the Spanish election offered no surprises as the Center Right Popular Party appears to have attained an outright majority and the socialist party has been trounced. The markets appear to want to believe that this outcome is EURO POSITIVE AND SPANISH AND ITALIAN DEBT POSITIVE BUT I WARN THAT IT AIN’T NECESSARILY SO. Did the PP win a historic election so that they can deliver MORE AUSTERITY TO THE SPANISH PEOPLE? HOW MUCH ECONOMIC CONCESSIONS ARE THE SPANISH PEOPLE WILLING TO MAKE? IF THE ANSWER IS VERY LITTLE, THEN WHAT NEXT FOR THE EUROPEAN UNION?

(more…)