Did America just blink?

[Mega]

USA V Germany, looks like victory to the 4th Rech
http://www.zerohedge.com/news/uncle-...-us-pardon-imf

Mekel has BALLS!
Mike

[lektrode]

Re: Did America just blink?

....out with a fresh new rumor which cites "IMF sources" according to which the US-headquartered and funded organization would provide a €600 billion loan to Italy at 4-5%.

hey! thats better than we're getting from the US TBTF mob, whats not to luv....

In other words, Uncle Sam, in his role as primary funding agent of the IMF would lose massive amount of money on the "market to fair value" arbitrage, only to bail out the latest European domino. As a reminder, the whole "under market rates" loan from the IMF was implemented in Greece and worked out just swell: at last check the 1 Year Greek bond was trading with a yield of over 300%. Oh, and La Stampa forgot to mention one thing: any changes to the IMF, which currently is massively underfunded and is why the organization was forced to create two new liquidity facilities: a Precautionary and Liquidity Credit line, since it is unable to fund its New Arrangements to Borrow, have to go through US Congress when it comes to expanding funding capacity. Yup, the most dysfunctional, corrupt and criminal thing in the world - the US House of Representatives, where unless everyone is short Italian CDS, this will never pass. In other words: this rumor is dead in the water. More from Dow Jones:


The International Monetary Fund could offer Italy between EUR400 billion and EUR600 billion in financial support to give Italian Prime Minister Mario Monti a window of 12 to 18 months to enact reforms sufficient to restore waning market confidence in Italy's ability to repay its debt, Turin daily La Stampa reported Sunday, citing IMF sources.

heh... at this point, the idea of certain house reps shorting the italian banksters doesnt seem all that far fetched....

and... isnt this the purrfect moment to ignite the rumor-mill-incited 'santa clause rally' ? i mean, gosh, time grows short for GS&co to make up for their 3rd qtr 'loss' and so whatevahs, a trillion here and a trillion there, pretty soon we're talkin REAL money - DAMN THE TORPEDOS, FULL SPEED AHEAD BEN!...

[Mega]

Re: Did America just blink?

Update:-
http://www.telegraph.co.uk/finance/f...-the-euro.html
SDR's?
Mike

[jpetr48]

Re: Did America just blink?

Not a matter of blinking first rather Merkel is politically handcuffed as is the fed. Who is left?
I read in intl herald that Germany is waiting for deflation before they consent to ECB money printing. I can't see that scenario.
Below is good article from American enterprise institute
http://www.american.com/archive/2011...merkels-moment

[astonas]

Re: Did America just blink?

Not a matter of blinking first rather Merkel is politically handcuffed as is the fed. Who is left?
I read in intl herald that Germany is waiting for deflation before they consent to ECB money printing. I can't see that scenario.
Below is good article from American enterprise institute
http://www.american.com/archive/2011...merkels-moment

Thanks for this article, jpetr48; I couldn't agree with it more. Germany MAY eventually go along with fiscal transfers, but is far less likely to ever support ECB monetary intervention. It really is hard-wired into the national psyche.

[c1ue]

Re: Did America just blink?

Germany just needs a nice motto:

No subsidies without control (the Federal version of no taxation without representation)

[jpetr48]

Re: Did America just blink?

Thanks for this article, jpetr48; I couldn't agree with it more. Germany MAY eventually go along with fiscal transfers, but is far less likely to ever support ECB monetary intervention. It really is hard-wired into the national psyche.

You are welcome astonas,my pleasure. There is an interesting video on the fed at this site too w Jim grant, makin, and other economists.