Thursday, January 24, 2013

ECB President States Euro’s Darkest Clouds Have Passed While Spain Unemployment Rate Rises To Record 26%

The ECB president must be smoking something or his head is so far up his ass that it has snapped off and become permanently lost in the nether regions of excrement and asshattery.  The European bond market is not sharing his enthusiasm.  Nor are the countless millions suffering through his insanity.  While we have seen some stabilization in European debt for a few months, mostly because the ECB is using credit cards to pay off other credit cards, the overall European sovereign bond situation has progressively worsened over the last few years.  ie, Even though the current situation is stabilized the market is showing far less confidence in  progressively lower bond market highs in the last five years. 

Financial markets around the world are showing signs of distress and instability under the surface.  The currency risk trade is showing stress and possible signs of a permanent shift against the global financial predators,   the volatility in equity markets has literally collapsed to the lowest levels leading up to the 2008 collapse, volume participation has collapsed and the gold volatility index I have shown on here many times is at the lowest level since 1997.  Low volatility is a sign of either incredible apathy or incredible financial recklessness or both. 

So, let’s consider the collapse in volatility in gold to the lowest levels in the last sixteen years.  If you don’t remember 1997, it was a glorious years for the financial predators that Clinton-Gore and like-minded Republican corporatists unleashed.  We were just about to head into the Asian financial crisis that literally destroyed many economies, (Sixteen years later there are unfinished skyscrapers with vines and vegetation devouring them.)   the 1998 Russian financial crisis that led to the collapse of the ruble and a defaulting on its debts (This event almost literally destroyed the entire Russian banking system.  Think 2008 in the U.S. but worse.)  and the associated implosion of Long Term Capital Management, another in the endless incarnations of Wall Street Ponzi Schemes.    Those events, while not felt in the United States, wreaked permanent havoc on untold tens of millions of people.  All of these crises were caused by the same macro dynamics that exist today.   That is, deregulated private, for-profit capital looting the world and creating crisis in their wake.  And low volatility. 

ECB president’s remarks here

Spain unemployment here.

posted by TimingLogic at 11:10 AM

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