The Austrian Central Bank will join Germany’s Bundesbank in rejecting as collateral bank bonds guaranteed by member states receiving aid from the European Union and the International Monetary Fund.
“We will do that as well,” Christian Gutlederer, a spokesman for the Vienna-based institution, said by phone today.“We are talking about minimal amounts. It will have very little impact on overall collateral.”
The Bundesbank was the first of the region’s central banks to make use of a change in European Central Bank collateral rules announced on March 23. The ECB no longer obliges members to accept bank bonds guaranteed by governments “whose credit assessment does not comply with the benchmark for establishing its minimum requirement for high credit standards.”
But we were told that Germany was not suspending acceptance…… I guess that was a lie eh?
Looks like it.
Prime Minister Mariano Rajoy said Spain’s situation is one of “extreme difficulty”and signaled that his budget cuts are less painful than a bailout would be, as demand for the nation’s debt slumped at an auction.
Wait….. Greece was contained we were told.
That’s a lie too?
Of course it is. You knew it was. And it still is.
The biggest lie of all is that The United States can continue to spend its way to prosperity with borrowed money, that The Fed can continue to provide the “free money” that the federal government then consumes with its handouts and economic distortions, and this will continue on forever and Unicorns will crap out pretty colored candies.
The truth is that eventually bankers, including central bankers, get tired of being people’s patsies and getting paid back with devalued money. They then say “no mas” and that’s the end of the game.
The Feral Government in the United States has had more than four years to do something about the outrageous excesses of the “ought nots” and in fact did nothing other than giving the pigs at the trough more and more promises to pay that could not be, and will not be, repaid.
This was done to continue to pretend that pensions were solvent, that retirements were secure, that Medicare and Medicaid could continue to be provided and that the economy would “eventually” expand once again and make all of this outrageous deficit spending “money good.”
The entire thing was a scam from 2008 onward.
I warned McCain’s campaign in early 2008. In the middle of 2008 I similarly warned Obama’s campaign as well. Obama made noises early on like he understood, but then turned around and blew Jamie Dimon and Lloyd Blankfein under their respective desks, refused to enforce the rule of law, refused to act to force the leverage out of the system and in fact sat back and chuckled while Kanjorski essentially extorted FASB to make legal bank accounting fraud.
We don’t even have a third party, such as the Libertarians, that will stand up and in a loud, united voice demand a cessation of the frauds. In fact, their presumptive nominee has said in a debate, on video, that “nobody committed any crimes” and yet we not only have state chapters endorsing him the Florida Chair has done so as well.
Not even the so-called “Party of Principle” will take a stand for what’s right and refuse to endorse candidates and support them unless they stop performing obscene acts on the banksters who are robbing everyone in America whether it be from hinky derivative deals, perjury, bogus MBS transactions stuffed full of lies or God-knows-what-else. Jefferson County Alabama anyone?
Maybe I was wrong to get involved with the Libertarians. Maybe I’m just wasting my time while they play circle-jerk and patty-cake with the very same banksters (and perhaps that is because they’d like some hinky loans too!) Maybe this is nothing other than a time and money sink for me when I could be doing something useful, like (for instance) jacking off. At least I’d get some satisfaction doing that.
The problem is this: You can’t make a bad debt good by claiming it’s good.
You can shift money around so nobody sees exactly who stole what from whom, but the loss is still there and if you keep funding this sort of jackassery then the distortions grow larger by the literal day right up until someone raises a flag and says “uh, that’s bullshit.”
Then it all comes crashing down on your head.
If you remember one of my predictions for this year was that “it” would start in Europe. Not here, Europe. But it will come here. It must, because we refused to do the smart thing and force those who could have taken down their leverage to do so. Yes, it would have bankrupted some of them.
Yes, politically this would have been “inexpedient” in that they couldn’t have made massive campaign contributions any more. Yes, it would have (temporarily) led to more unemployment.
But it would also now be over and we would now be really recovering economically.
Instead, we’re still on the edge of the cliff and one by one our fingers are losing their nails, while my level of disgust reaches new highs by the day.