Swiss Franc Decoupled Euro; Screams Ensue

By ending the practice of pegging the Swiss franc to the Euro, the Swiss National Bank have enraged our financial elites. The New York Sun published a nice succinct editorial on Friday about the Swiss National Bank’s decision to de-peg their currency from the Euro. An excerpt: All other virtues of this drama aside, what a paroxysm of panic it has produced at the Financial Times, which has declared that “Thursday’s action in the Swiss franc defies the reach of hyperbole.” We haven’t Read more […]

EU Bank Stress Test Was Unrealistically Easy

While more European financial institutions failed the bank stress test, the test only imposed unrealistically easy “stress.” According to ZeroHedge, the so-called “stress test” for European banks was missing real stress that might occur. Just when you thought the humor out of the central bank that just released a stress test whose adverse scenario did not even assume the most likely Eurozone outcome, i.e., deflation, couldn’t get any better, moments ago we learned that the test, Read more […]

Bank Failure Spreading but We Keep Pretending

Let’s see, the trajectory of impending bank failure here: 2011 – eight banks failed the “test,” with a shortfall of 2.5-billion Euros. 2014 – twenty-five banks failed the “test.” with a shortfall of 24.6-billion Euros. From “25 EU banks fail ‘stress test’, exposing $31bn shortfall.” Nearly one in five leading European banks have failed the stress test conducted by the European Central Bank, which revealed a $31.2 billion (€24.6 billion) capital gap in 25 banks showing Read more […]

Our Economic Masters Are Afraid of Low Prices!

Our elites profit as long as we are kept from enjoying low prices! The economic house of cards continues to wobble. A collapse is inevitable. Evan Ambrose-Pritchard writes in the Telegraph: “Dam breaks in Europe as deflation fears wash over ECB rhetoric.” A key gauge of deflation risk in Europe is flashing red, dropping to record lows on fears of fresh recession and lack of decisive action by the European Central Bank. The sudden lurch downwards came as Bank of America warned that Read more […]

No, Reuters, Markets Didn’t “Brush Off” Anti-Euro Votes; Markets Applauded Them

According to Reuters: “Bonds, stocks brush off Eurosceptic election gains.”  Italian assets surged and German shares hit all-time highs on Monday as solid election showings by pro-European forces in both countries provided an antidote to Eurosceptic gains in France, the UK and Greece. Though nationalists scored stunning victories in a number of weekend votes, Italy’s pro-European Prime Minister Matteo Renzi’s centre-left Democratic Party was on course for a resounding win over the anti-establishment Read more […]

Cracks in the EU Dominance Start to Widen: What Next?

Whither Europe, and wither the Euro! From Zero Hedge’s “Tyler Durden”: Just as we had warned in the run-up to the European elections – and England’s UKIP victory in local elections had suggested; Anti-European-Union parties are showing strongly in this weekend’s elections. Anxiety is spreading among the status quo as Greece’s anti-austerity party SYRIZA wins and perhaps even more worryingly in supposed core of the union France’s Nationalist party is leading in a “political earthquake” Read more […]

Euro Goes Pagan

In Greek mythology Europa was a beautiful Phoenician woman of noble birth. Depending upon which part of mythology you look at Europa was either a daughter of Oceanus and Tethys or the daughter of Tityas and Euphemus.  According to most ancient legends the god Zeus took the form of a white bull and abducted and seduced Europa. Europa is about to make a return to the continent named after her starting next year. Currently a number of euro banknotes have pictures of windows and doors as both Read more […]