JUN 26 SIT EC y POL
ZERO HEDGE
Greece
Invokes Nuclear Option: Tsipras Calls For Referendum. S-by Tyler
Durden on 06/26/2015
Greek PM Tsipras just delivered the biggest Friday night
bomb in recent European history: he stunned the Troika and his peers in Europe
with the biggest shocker of all - a referendum announcement, aka the Greek
"nuclear option", something which cost his predecessor George
Papandreou his job. At this point there is no turning back, and the Greeks
- of which 80% want to stay in the Euro even as 80% want an end to austerity -
will get to choose their own fate. Whatever choice they make, they will now
only have only themselves to blame.
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The
Importance Of RMB Internationalization. Submitted by Tyler
Durden on 06/26/2015
The Fed's QE policies of recent years have, for all intents
and purposes told the world that “the dollar is our currency and your
problem.” And, in recent years, the dollar has been a genuine problem
for a number of emerging countries. Following this traumatic event, and the
change in the perception of US stability, China went around the world and
invited the likes of Brazil, Indonesia, South Africa, Turkey and Korea to shift
some of their China trade away from the dollar and into renminbi. China
started doing this in 2011 and, as we see it, the renminbi’s attempt to become
a trading currency is potentially one of the most important financial
developments. Yet no-one seems to care.
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What
Would Happen In Case Of Grexit? . by Pieter Cleppe, of the independent think
tank Open
Europe in Brussels. Submitted
by Tyler Durden on 06/26/2015 [Here only extracts ]
An extensive look at what would happen if Greece were to
leave the Eurozone, through a legal fudge.
1. Default
If Greece wouldn’t have already defaulted before it would
introduce a new currency, Grexit would make it virtually certain that the
country would default. It’s not wise to take out a considerable loan in a
foreign currency, but that’s what Greece has done since 2001, when it entered
the Eurozone. If Greece would introduce a new currency, which then likely
would lose value against the euro, it would still need to pay back its debt in
euro, which woud appreciate in value as compared to the new Drachma, making
this task even harder.
2. The Greek banking system would be
cut off from the ECB’s cheap money canal, with real austerity to follow
A default would only relieve Greece from its excessive
external public debt burden, not from the exposure it has to its banking
system. Almost half
the “capital” in the four largest Greek banks really consists of “deferred
tax assets” or discounts
on future tax bills. When banks make no profit, they won’t enjoy such
discounts.
3. Depreciation of the new Greek
currency
As explained, the main problem of Greece’s Eurozone
membership wasn’t so much the fact that it had an overvalued currency, but
rather that the euro served as a massive debt machine for the country. Still,
the country did lose a lot of competitiveness, contributing to the inability to
serve its debt obligations, after it entered the euro. One must give Greece
credit for having partially restored competitiveness, through labour market
reform, rising 48 places in the World Bank’s Doing Business report between 2010
and 2015. Given that the currency would lose value, economic sectors like
tourism may benefit, but this effect has already been partially achieved by the
efforts to achieve an “internal devaluation”.
4. (Long term) Contagion
A more likely risk is long term contagion. Grexit would
set a precedent. After Grexit, once another Eurozone state would get in
trouble, much more money may be needed to assure that the country would stay
in, for example Portugal. This may make it less likely that Eurozone countries
would bail out Portugal, in turn raising attention to Italy and Spain,
increasing the chance of a complete Eurozone break-up.
Conclusion:
Regardless of whether one thinks the Eurozone should be
broken up or not: if it can only survive through continuous transfers, states
mingling into each other’s national policy choices, which strains
once-beneficial relations between European countries, it may not be such a
great idea to continue with it. Those who believe that if only we do a few
more transfers, everything may turn quiet, have been trying for five years.
There will be no calm in a transfer union which lacks sufficient political
unity. But perhaps the euro can survive, without transfers. Those who
believe so, and I doubt that they're right, may now try Grexit to prove their
point.
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Guest
Post: America's Obamacare Nightmare Is Just Beginning. S- by Tyler
Durden on 06/26/2015
"A judicial victory doesn’t automatically translate
into a political victory, let alone a policy success."
In a free society, debate is over only when the people
decide it’s over.
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America
Is A Dangerous Flailing Beast. Submitted by Tyler
Durden on 06/26/2015
"When I think of America’s place in the world
today, the image that comes to mind is of a very large animal, perhaps a
huge bull elephant or even prehistoric mammoth, which long roamed as the
unchallenged king of its domain but has become trapped by its own missteps, as
caught in a tar pit or some quicksand, and it is violently flailing about,
making a terrifying noises in its effort to free itself and re-establish its
authority. Any observer immediately knows the animal ultimately cannot
succeed but certainly is frightened by the noise and crashing that it can
sustain for a considerable time."
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Collapse,
Part 5: Things Fall Apart. by
Charles Hugh-Smith of OfTwoMinds blog.
S-by Tyler Durden on 06/26/2015
It is impossible to wean an economy that relies on
debt and leverage for its "growth" of excessive debt and
leverage.
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Of
Bureaucrazies & Demoncracy: The People Must Be Overthrown. S- by Tyler
Durden on 06/26/2015
Greece is the proverbial early harbinger of everything
that’s wrong with the world, and of everything that could be done about it.
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Submitted by Tyler
Durden on 06/26/2015 - 07:33
- Chinese Stock Plunge Leaves State Media Speechless (BBG)
- China’s Market Selloff Accelerates (WSJ)
- Any Deal on New Greek Bailout Funds Put Off Until Weekend (WSJ)
- ECB keeps ELA funding limit for Greece unchanged for third day in a row (Reuters)
- Impoverished Greek City Stands With Alexis Tsipras (WSJ)
- Why It Won’t Be a Default If Greece Misses IMF Payment Next Week (BBG)
- Valeant Makes Takeover Approach to Zoetis (WSJ) - or how Ackman assures himself another good T+3 quarter
- Obamacare ruling puts Supreme Court on hot seat in U.S. presidential race (Reuters)
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INFORMATION CLEARING
HOUSE
US To Begin
Invasion of Syria. By Tony Cartalucci
US policymakers sign and date paper calling for the
division, destruction, and US occupation of Syria.
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Neocons
Urge Embrace of Al Qaeda. By Daniel Lazare
Neocons pushing for an explicit alliance with Al Nusra are
thus attempting to plunge the U.S. ever more deeply into a growing sectarian
war.
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“If that coup, meaning violent overthrow of an elected
government, had not happened, we would not be in this situation and the
Ukrainians would have been spared this,” US US Congressman from California Dana
Rohrabacher stated.
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Latin
American Revolutions Under Attack. By Andre Vltchek
The Empire is once again on the offensive. It is shaking
with fury. It is ready to invade, to smash, burn to ashes all the hopes, all
that which had been achieved.
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Greece –
The Way Out. By Peter
Koenig
What the troika is doing to Greece these days is the
pinnacle of financial terrorism. It is economic waterboarding.
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Greece is
Being Blackmailed. Exiting the Eurozone is its Way Out. By Costas
Lapavitsas
They are keen to inflict a political defeat on a leftwing
government that has dared to challenge the European status quo.
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NOTICIAS EN ESPAÑOL
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"El peor atentado terrorista que sufrió la
Argentina fue el bombardeo a Plaza de Mayo el 16 de junio de 1955". Mario Hernandez
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