Friday, May 27, 2011

Tip for the weekend & Mme Lagarde on 'Today'

The following quote comes from a rather scary report from the Market Oracle site, linked here, now almost ten days old but still valid:

The closer Greece gets towards defaulting on its debts (restructuring) then the greater will be the pressure Greek and other European Banks are put under as investors flee in the face of another series of investor wipeout bailouts as have occurred during the past 3 years. As ever the risk of banks going bankrupt and taking savers depositors down with them remains which still means that UK savers need to ensure that they do not deposit more than £85k (compensation limit) with any one banking group as I covered at length in a November 2010 article - Protect Savings & Deposits From Banks Going Bankrupt!
Meanwhile panicking eurozone politicians continue with the propaganda of no default under any circumstance for Greece  as illustrated by comments from the French Finance Minister Christine Lagaard -
We are ruling out default in any form, There's no question either of Greece leaving the European Area. I want to reassure investors.
Which translates into that there WILL be another bailout for Greece, and then possibly another one after that, but a Greek default is CERTAIN, why ? because the alternative is that the whole country will be owned by foreigners ! A stealth conquest of Greece by predominantly German and French banks. Which appears to be the consequences of the single European currency, that all assets each Eurozone country owns are slowly gravitating towards being owned by mainly Germany.

The even scarier interview with Europe's candidate as next head of the IMF, Mme Christine Lagarde, on the BBC Radio 4 Today programme, this morning may be listened to from this link. Note the long hesitation and rather absurd first response as to why she is qualified for the post..... because she wants it, hardly seems adequate.

Perhaps Osborne and Cameron have fallen behind her candidacy, both because the EU told them to, of course, BUT also, as once in position, she may make them appear competent? As I posted earlier today, the process being what it is, any appointee may well arrive too late to prevent the IMF from following its own rules and refusing the funds due to be paid to Greece at the end of next month!

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Blogger James Higham said...

We're edging closer to SDRs, which might be the endgame here.

7:12 PM  

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