Archive for the ‘Belgian’ Category
If the IMF is asked for funds from the EU, it won’t have enough resources for the rest of the worlds emerging markets if there is a contagion.
The fiscal situation in the EU’s GIIPS countries is not good, but it’s not like they were jewels to begin with, they’ve battled these problems for decades, even centuries.
The ECB must resolve this. Today, there exists a real possibility that the EZ might just break apart and countries would return to multiple currencies.
The ECB must stop the meltdown by buying GIIPS bonds as needed.
One, politics in Europe are local, not “European.”
Two, monetary, fiscal, and labor policy are at the core of the problems in the GIIPS.
Third, The EU had better identify itself and make its presence known- finally.
It is her “fight or flight” moment. The Entire EU hangs in the balance, and coupled with that the US economy. Sovereign debt and negative growth are actually spreading.
Mr. Monti and Mr. Papademos must play a role in tightening the fiscal policies and make the structural reforms needed. These technocrats, should provide a positive step in increasing pro investor policy.
At this point it really doesn’t matter which way the crisis in Greece goes. The worlds confidence has fallen as bond markets have shown more alarm and the GIIPS have been forced a bailout. Government debt situations and the banking industry and heavily linked GLOBALLY, and more is likely to come (MF GLOBAL).
The fall in confidence has led to a convincing bailout but weaknesses in the Eurozone will still remain. Money is already fleeing the Eurozone, the dollar only an alternative. The Swiss Franc and the Yen are no-longer safe-havens because their central banks have intervened to artificially weaken those currencies.
Today the U.S. dollar is the only really liquid place for cash to go. Greece can get a bailout but she will weaken tomorrow.
The EU has no choice but to leave Greece bankrupt and in chaos. Modern Greece has not been much of a democracy in the last 60 years. Confidence is down. When they re-print the Drachma to pay bills, hyper inflation will be terrible, “contagion” is worse.
“This is a question of whether we remain in the euro zone. This is very clear. It’s clear to everyone” – PapandreouIn Belgian, Capital Shortfall, Cataclysm, Culture, default, Economic Institutions, Environment, European Union, Financing Reconstruction, FX, Global Economics, latin america, macroeconomic factors, MF Global, Multibillion, Nuclear, philanthropy, price volatility in energy, Regulatory demands, selective default, spillover effect, Turbulent Markets on November 3, 2011 at 3:44 am
Ok, here is the itinerary: The ECB is meeting on November 3rd. The G20 is meeting on November 3-4, The Papandreou is attending on the 2nd day. A Eurogroup meeting will follow on November 7th, followed by an EU Ecofin meeting on November 8.
The Troika was meant to disburse the sixth tranche of the first program in the first or second week of November, as Papandreou returns from G20 weaker we may not see this funding pass.
EU banks have received a short period of relief from the unpleasant sovereign debt crisis of the GIIPS. As bank shares recovered from political efforts to provide a comprehensive program for resolving the crisis. The recent 29% writedown on Greek debt held by the private sector and a plan to help support bank racapitalisation by 106 billion euros by the end of June. Days following this deal and many assurences that investors would be 100% capable of raising equity, the MF Global bankruptcy this monday proves different.
This after Bernanke reassured congress in July that US banks exposure to troubled EU nations was “quite small.”
These writedowns and restructures are not enough, the EU does not have “months” to vote on approval. Markets are down accross the board. A decision must be made immediately. It looks as though Greece will be ejected from the Euro using the bail out fund to partially compensate the banks holding Greek debt within EU.
“A survival of primitive barbarism, and dates from a time when the appeal of this nice bright metal to human vanity made it in universal demand for the adornment of the chief… his wife, the temples of the gods and so on”
– Hartley Withers @ UK think-tank Chatham House in 1934.
Debt levels in a number of economies of the European Union (GIIPS) continue to alarm the global markets—requiring European Union intervention to avert default.
As concerns about fiscal sustainability and the oncoming financial turbulence approach, the Republic of Cyprus has announced that it has broken ground on its natural gas reserves. Large tracts of liquefied natural gas dicovered under the seabed between Greek Cyprus and Israel prompted the governments to file an “agreement on the delimitations of the exclusive economic zone” between the two countries. Setting the maritime borders and the respective rights to explore natural resources within them by a median line. The two countries and their main corporate partners, Noble Energy (Houston, TX) and Israel’s Delek Group, are in well-advanced consultations to jointly access energy reserves.
Today, september 21st 2011, The Cyprus “Aphrodite” gas field with estimated 10 trillion cubic feet (tcf) of gas reserves, is being explored, and a regasification terminal is already being constructed.
The European Commission will lead negotiations on behalf of a EU proposed pipeline, which is part of a planned effort with Azerbaijan and Turkmenistan to bring natural gas from the world’s fourth-largest reserves across the Caspian Sea to Europe. The deal is designed to reduce EU dependence on Russian gas imports.
When people are disatisfied with a reality they try to change what is within their hands.