Europe In A Nutshell
For you grown-ups out there, this is like watching your kids get a free credit card from their grandparents; not a pretty sight. But not to worry, because everything is now fine in Spain because the smartest-guys-in-the-room have just thrown a check their way to the tune of a “1” with “11” zeroes behind it. Where this money comes from nobody has a clue.
But we are all smart enough to know by now that politicians solve a problem, not by actually solving anything, but by talking about it. Because you see, talking about it to them means it’s on their radar now, and not to worry, we are on it. Uh huh.
The Germans, natch, are expected to lend their AAA credit rating to this
hair-brained scheme, but in all things like making sausage and
passing out 100 billion Euros, the details are gonna get a bit sloppy. For one,
nobody in Germany,
except the Pols, are for this. Second, it ain’t gonna matter because on June 17th,
the Greeks say adios to the Euro. And third, as if we need another reason,
every other deadbeat sovereign member of the PIIGS gang now wants the same
deal as Spain.
“Hey, where’s our hundred billion with no strings attached?”
I swear, it’s enough to make you think the Pols are really in the biz of herding cats. A tough gig no?
Politicians Take Note
Of course, with record spec short positions via the
CME in EURUSD, it’s not really a surprise that we gapped up 100 big ones on the
opening in Asia last night. Did you hear the
big – WHEEEEW !! – whoosh out of Europe last
night? But sadly, with all Ponzi schemes the half-life on this “solution”
hasn’t even lasted 12 hours.
And gold? Firmly in control of the Central Planners and weakening as I write.
“But QE3 and QE4; c’mon man, money printing, ya know?”
Yea, I will make sure and tell that to the prop desk over at JPM that is selling with both hands.”
And so, we find ourselves on countdown to next Tuesday, when we know for sure the Greeks are deadbeats, and the newly emboldened leftists tell Europe to go pound sand with their debt.
Anybody want to make book on this?
Have a good day everyone.