EurAnalysis

Hey! No that does n't. Unless you think so.

And they're off!

I don't have to pee anymore!

LOL

That is too funny! Hahahahaha

C u guys in the morning.

Good night Swissy... and everyone else who is hitting the sack....

Merkel: We Should Weigh Words, Withhold Judgement On Greece

By Market News International || August 26, 2012 at 21:40 GMT

–Merkel: Have Faith That ECB Will Operate Within Its Mandate

FRANKFURT (MNI) – German Chancellor Angela Merkel on Sunday urged
politicians in her own country to choose their words carefully when it
comes to Greece and withhold judgement until the Troika report on Greece
is released in September.

“We are at the moment in a very decisive phase in battling the
Eurozone debt crisis, and that is why I think we should all be weighing
our words carefully,” Merkel said in an interview with Germany’s ARD
television.

Her comments came after Alexander Dobring, general secretary of the
CSU, the sister-party of Merkel’s CDU, said he expected Greece to leave
the Eurozone in 2013, according to a weekend interview with the weekly
Bild am Sonntag.

Merkel also said she had confidence the ECB would stay within its
price stability mandate and offered cautious backing for ECB Governing
Council member Jens Weidmann.

Weidmann, in an interview with Germany’s Der Spiegel magazine
earlier Sunday, repeated his opposition to the ECB’s plan to consider
buying sovereign bonds of countries that seek aid from the ESM rescue
fund.

Merkel, who has said she supports ECB President Mario Draghi’s
bond-buying plan, said the central bank has “a very clear and narrow
mandate to contribute to price stability, and I continue to trust that
the ECB will make its decisions — and Mario Draghi has also said this
– on the basis of this mandate.”

Merkel said she found it “good that Jens Weidmann every now and
again issues political warnings.” It was “not unusual” for there to be
disagreements within the ECB Governing Council, any more than within the
European Council.

Central bank independence “means that I deal with the political
questions — and here we have our hands full — and of course that I
help strengthen the position of Jens Weidmann … so that his influence
also within the European Central Bank is enhanced,” Merkel said.

Merkel said she had “no indications” that the International
Monetary Fund was considering leaving the Greek aid program, and she
denied that doubts over Greece’s viability as a Eurozone member were
spreading within her own coalition government.

While Greece clearly still has more to do, Merkel highlighted the
effect of German politicians’ comments abroad, and “that is why we must
tread carefully, knowing what kind of changes are necessary in Greece at
the moment.”

Merkel repeated comments she made after a meeting with Greek Prime
Minister Antonis Samaras on Friday, saying Greece has a right to expect
that Germany will “wait for this (Troika) report and then make our
judgement.”

Merkel also denied a report from Spiegel that her government was
pushing for a new European Convention, as early as December, to consider
more drastic changes to the EU’s treaties. Merkel said such discussion
died when Britain declined to go along with the EU’s Fiscal Compact.

“I’m not calling for a convention. I am calling — and have been
for a while — for us not to stop moving forward on the steps we have
taken,” Merkel said, adding that these next steps would be discussed
over the autumn months.

I really have problems to decipher the words from those politicians really mean. They say one thing now and different in another occasions. Maybe I am just too stooped.

What can politician people told about complex things that they don't understand themselves before long...the most part of the european member states are gangsters. Did you know only one good economical analysis which design a solution problem for the european crisis? Have you give your vote pollies who make government debts day by day, year by year?...2 trillions exclusively for Germany...maybe a hard time for approved primary dealer. If an affiliated group would manage like the european community nobody would give them confident. Greece citizens didn't see anything from this money...It's time for redistribution!

You have hit the nail right on the head. Good Trading and Good Wishes.

http://news.goldseek.com/LewRockwell/1345989600.php

Snippet:

Some predictions are easy. Here is mine: "The government of the United States will default on the vast bulk of its debts, which are mainly debts of Medicare, and to a far lesser extent, Social Security and the federal pension system."

This prediction is easy to make when you have Professor Lawrence Kotlikoff of Boston University doing your research for you . . . free of charge.

He and long-term financial columnist Scott Burns recently wrote an article on the unfunded liabilities of the United States government. The article is based on the figures produced by the Congressional Budget Office. Here is their assessment. Over the past year, the debt of the United States government increased from $211 trillion to $222 trillion. This is the fiscal gap.

The fiscal gap is the present value difference between projected future spending and revenue. It captures all government liabilities, whether they are official obligations to service Treasury bonds or unofficial commitments, such as paying for food stamps or buying drones.

This led to their policy analysis.

Closing the gap using taxes requires an immediate and permanent 64 percent increase in all federal taxes. Alternatively, the U.S. needs to cut, immediately and permanently, all federal purchases and transfer payments, including Social Security and Medicare benefits, by 40 percent.

This sounds good, but neither one will work. I think they know this.

Solution #1 is politically impossible. Even if it were possible, it would create an economic depression. This would not be a fiscal cliff. It would be a fiscal Grand Canyon. This would cut all federal revenues. In a Keynesian-dominated Congress, the government would run a massive deficit. So, a tax hike on this scale is self-destructive. Solution #2 would create a replaced Congress and White House after the next election. Can you imagine Congressmen having town hall meetings after a 40% cut in Medicare and Social Security? They would face a sea of people brandishing canes and shuffleboard sticks.

The authors began their article with this observation.

++




I'm in the middle of a kitchen remodel with the wife.... this is sooo funny and appropriate.

sorry i read it as the new wife

Good morning everybody.

Here we are on a very slow Monday morning (so far) of what should be the final week of the August doldrums. All focus right now appears to be on the central bankers and the upcoming Jackson Hole Symposium starting this Wednesday. More specifically, focus will be on Bernanke and Draghi who are both scheduled to speak on Friday. So far no definitive news has come out of either of them as they hold their cards very close to their chests. Regardless, it clearly appears to me that both the Fed and the ECB are not as potent as Bernanke and Draghi hope the market believes. Allow me to elaborate once more.

The Fed will not embark on any Large Asset Purchase programs because frankly the US economy is not in a tailspin and therefore Bernanke cannot justify it. There may be some changes or extension to the current operation twist program whereby the Fed buys longer dated debt as their holdings in shorter dated debt mature. Therefore the purchases are completely sterilized. A possible change to how this is done may include setting GDP or Unemployment targets rather than a specific date target. Same may apply to the forward guidance on interest rate hikes.

The ECB's plan is to intervene in the bond market by purchasing shorter dated debt of EZ nations that apply for aid from the EFSF/ESM program. The problem is that neither Italy, nor Spain are about to apply for aid until it is very clear to them what the conditions for any such aid entail. If Italy and Spain do not apply for aid, the ECB cannot and will not engage in any such EZ debt purchases. In chess we call this a stalemate.

So the preliminary result is a major stall in the Euro rally and a major stall and cautious reversal in the USD rout. I was thinking that the stitching would not start unraveling until after Jackson Hole, but it appears I may have been wrong about that. In thin markets such as we have this month (like any typical summer or Christmas holiday season), price tends to have exaggerated moves with no follow through. I believe that is all we have seen so far this month. Just a whole lot of hot air with no meat or potatoes.

Be on the lookout for statements out of EuroZone officials. There will be much verbal diarrhea flying around over the next few days and as such, I suspect we may see some limited volatility in both directions. I believe that is called whipsaw

Technically, we are still in a topping process at a key resistance band between 1.2580 and 1.2620 as outlined in my previous update. We've only managed to make a high of 1.2588 so far, so there is still some room on the top side should we get some hopiumized news.

Best of luck to all of you today and the rest of this week.

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EUR/USD Daily

Morning PT

Enjoying reading your morning analysis with a nice strong double espresso

set small sized buy limit @ 1.2485 with 1.258 tp (maybe will lower it later based on pa) and a sell limit @ 1.261. Let's see what this Monday will do

eu and ej

good morning up we go today, i think

morning,
indeed it went up but didn't wait for my buy limit @1.2485 to trigger, missed again by 4 pips
I think next time I will enter manually