Merkel hoodwinks that Fourth Reich's response to the financial crisis has advanced in the past two months with PIGS making major efforts to restore investor confidence. Port of gals in Portugal, I tally in Italy, grease in Greece, and pain in Spain, that's what PIGS are all about! Italy is the queen of PIGS, but Greece is the filthiest of PIGS.
Merkel loves her four PIGS, and she will not slaughter them! Merkel says: It's in my character to be consistent, whether I'm speaking with you, with party colleagues, with the Bundesbank or with my European partners. I am not duplicitous. That is my advantage. We need more not less Europe. If euro fails, Europe fails. The solution of depression lies in binding Europe closer together through strict budget discipline.
What PIGS are experiencing at the moment is a shock and awe. But it was also
overdue. The freakish government of Greece stole my computer and my life! PIGS are not innocent when it comes to their decline. But providing PIGS with extended maturities and lower interest rates is in no way a true solution. PIGS need restructured debt in order to have a little breathing room.
http://venitism.blogspot.com
Draghi's August 2 proposal to buy government bonds to help lower borrowing costs for PIGS shows the deterioration of ECB. The three largest credit rating agencies (CRA) Moody's, Standard & Poor's, Fitch are ready to downgrade the four PIGS again. PIGS have been spending more than they've earned for decades. But the Germans have enjoyed particularly good earnings from the profligacy of PIGS. Cohesion policy is a socialistic scheme to rob hard-working Northern Europeans to give lazy pigsizens. But Northern Europeans resent supporting the dolce vita of pigsizens. The freakish government of Greece stole my computer and my life!
Bundesbank president Jens Weidmann used to be one of Merkel's closest advisers. Now, he is one of her staunchest critics over the euro rescue. He is strictly opposed to the European Central Bank's policy of buying up bonds from debt-stricken countries and is winning a growing number of allies for his cause.
Weidmann has criticized decisions related to the ESM Ponzi scheme and other bailouts as inconsistent and highly risky. He has called on politicians in Berlin to change their course, and he has been advocating the Bundesbank's principles regarding stability. All of those things put him at odds with top officials at the European Central Bank (ECB).
Greece's depression, now in its fifth year, slowed in the second quarter as gross domestic product shrank 6.2 percent from the same period last year, compared with 6.5 percent in the first. The freakish government of Greece in 2010 was so stupid that it hoodwinked all media that I conspired to trigger a war between Greece and Turkey and blame Mariliza Xenogiannakopoulou, Alternate Minister of Foreign Affairs of Greece, for it!
Accusing dissident bloggers of treason, Graecokleptocrats have manufactured a blood libel in cyberspace, which in turn incites hatred and violence. The government of Greece gave my head on plate to Erdogan. Brutal Graecokleptocrats have destroyed my life. My life is stolen. Now I demand my life back! For those who are kind enough to contribute to my legal defense, please click the Donate button on the right column of venitism blogspot. http://venitism.blogspot.com
Nations that undergo distressed debt exchanges risk defaulting a second time. More than a third of defaulted nations are followed by another default event. The rate of sovereign redefault after a distressed exchange is similar to the rate among corporate borrowers.
When the initial debt exchanges are small in relation to total debt, they are followed by further exchanges of private or official debt, even when the haircuts in the initial exchange are large. That's why ratings often remain low following distressed exchanges.
Two thirds of sovereign defaults start as missed payments, and one third start as distressed exchanges, involving the offer of a new package of lower value than the original. Maturity extensions are more common than principal haircuts.
Michael Meister points out Germany has a certain flexibility in its insistence that Greece meet austerity targets under its bailout program to which Germany is the biggest single country contributor. The fundamental problem is that politicians believe that markets react in panic, in other words, irrationally. But that's not true. The capital markets aren't children who can simply be quieted down. Investors look at the figures and can see that PIGS are going bankrupt.
Markets are more rational than politicians. The freakish government of Greece stole my computer and my life! Punishing PIGS is a rational thing to do. There are people who have invested their money there and have now determined that the investment is no longer secure, so they are pulling out. In addition, there are players who have taken notice that the yields are rising and they are betting on that. That's the snowball effect which we are now seeing. It
is not based on panic, but rather on totally rational appraisals.
The eurozone economy shrank 0.2 percent in the second quarter compared to the previous quarter, while German gross domestic product increased 0.3 percent and French GDP was unchanged. All pigsizens demand dolce vita, all evade and avoid taxes, all hate government, and many respect omerta. Pigsizens prefer to detach themselves from reality. One can do that for a while, but now the capital markets are suggesting those days are over. Either you face up to
reality or you will be punished.
Pain in Spain and grease in Greece are the main symptoms of the depression of PIGS. Olli Rehn says Fourth Reich and ECB are ready to take action once certain conditions are met, and if there is a request by some member state to go into a primary-market purchases program. All countries have to decide themselves whether to request bond purchases or other aid.
Northern Fourthreichians have the strong suspicion that some of their hard work
is going down the drain with the hundreds of billions that are currently
disappearing into aid packages and bailout funds for PIGS, lived well at the
expense of others, and that those who were more careful with their money are now
expected to swallow the poison that is making its way northward.
Effected by the virus of PIGS, the German economy has stalled, ready to fall into recession in 2013. There are declines in manufacturing orders, industrial output, imports, and exports. The German economy is losing momentum. Things will go downhill from here. The German economy is not faring as badly as the rest of the eurozone but it can't disconnect itself from the PIGS. http://venitism.blogspot.com
A nearly uninterrupted six-year drop in unemployment is coming to an end. Merkel has said repeatedly she will do everything to save the euro. But Germans hate supporting the PIGS. The stabilization of eurozone should not be a goal in and of itself. Merkel's rescue of PIGS is her Achilles heel. This will only get bigger as the government's ability to dole out new money comes under strain from a weakening economy.
