Merkel & Tsipras latest: good for gold and bad for the euro. Or the other way round. Or something.

FUNERAL IN BERLIN?

This morning, gold is leaping up and down like a seismograph on the San Andreas fault, as everyone waits to see what sort of smoke appears at 5 pm CET from Berlin. And don’t forget we must allow an extra hour for Tsipras to be beaten up before the press conference. The general tenor of feedback so far is that it’s not going terribly well between Geli and the Greek, but she who walks on water is hinting that there may be a way through. “Greece is not obliged to carry out all Troika reforms if they have better ones,” she said last night. Not sure that’s how the IMF sees it, but there you go.

What you believe on this one really depends on what media you normally consume. If you’re American, then Merkel will stand no nonsense and Greece will be Grexited by Thursday. If you’re Irish, then compromise is in the air. If you’re Spanish and have your editorials written by Rajoy, then Greece is letting the side down and should be punished. If you’re a Bild Zeitung fan, German troops are massed on on the Greek border. And if you’re British, Girl, 12, tries to kill mother with bleach for taking away her iPhone.

The problem is, we don’t know what colour of smoke we’re looking for. But if it’s pink and emerging from Merkel’s ears, I think we should fear the worst. Or hope for the best, depending on one’s viewpoint.

Anyway, 5 pm is the scheduled press conference: that’s 11 am EST at the moment. So one thing to keep a very close eye on will be the euro’s value during the US afternoon. If the news from the Reich is anything from woffle to bad, I think I might bring some euros over tomorrow morning. But what I suspect we’re seeing in gold’s mini-recovery is (for once) genuine market sentiment. It’s not just Greece, or the eurozone or even the EU: it’s how the dominoes will start to wobble once people grasp that everything is connected – just not in a positive Buddhist way. The best laid plans of Goldman & Sachs gang aft awry.

Although I continue to feel that Yanis Varoufakis has not acquitted himself very well of late, it is worth going back to his 2010-2012 utterances: they are many and varied, but if nothing else they prove a mind-concentrating point: if by some quirk of fate he’d been the all-powerful EU Finance Minister five years ago, the eurozone would be out of the woods by now. As it is, with every day the euro looks more and more like dead wood.

I’d feel happier if I thought that either Berlin or the ECB’s Prince of Darkness gave a monkey’s about the fate of the euro any more. But I see no sign of it: unless of course they’re both stupid and insane, which I think highly unlikely.

More clarity later. Allegedly.

Yesterday at The Slog: An ageing Tory Party and growing splinter groups spell change

20 thoughts on “Merkel & Tsipras latest: good for gold and bad for the euro. Or the other way round. Or something.

  1. ‘Berlin or the ECB’s Prince of Darkness gave a monkey’s about the fate of the euro any more.’
    That I don’t understand. If that were that case they would be making plans to return to individual currencies, not lying and deceiving and continuing with the Smoke and Mirror charade to keep the Euro at all cost.
    The consensus for the Euro might be losing ground amongst sovereign nations but, there is no way out for anybody without risking the wrath of Wall St and the Fed, and from what I read and see there is no way anybody is going to incur that wrath.
    As has been said before, ‘A vista too awful to contemplate’.
    In the DT today there is a article from ‘Open Europe’ (the ‘influential’ think tank) foretelling of deformed children being born and puppies and kittens being stillborn, Bubonic plague and TB wrecking havoc on the population, rats bigger than cats infesting our inner and outer cities if the UK leaves the EU.
    We MUST stay in at all costs apparently.
    Personally I am beginning to find the thought of the US starting a nuclear war a tad more attractive than continually being fed this bollox by all and sundry whose only agenda is keep their snouts in the trough at the citizens expense. My demise would be a small price to pay for removal these bottom feeders.

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  2. Yes, I watched the whole movie a while ago, very depressing but in fairness nuclear weapons have come a long way since that was made. There will be no survivors next time around.

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  3. OSCAR HOMOLKA SAYS

    Oi ….don t usurp the name of the film in which I starred with Michael Caine. ( I was the real star but came below Caine in the pecking order as I am a foreigner and my name begins with an H which surprisingly enough comes after C…)

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  4. kfc, the game as I understand it is for the Euro to collapse to parity with the dollar, then there can be a roll out of a common currency across the North American and European trade blocs, based on gold backed Special Drawing Rights allocated by the IMF. By replacing the dollar AND the Euro it becomes widely accepted outside the Atlantic trade zone and allows the bankers to put off the moment of truth of fiat money long enough to collapse a SinoRussian counterbloc. The endgame is a single global currency which leaves no room, or point, for national sovereignty. At which point the unicorns will come out of hiding and Coudenhouve-Kalergi will be reanimated to preside over the happy mocha halal hordes.

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  5. So we are going to have a combined Euro/Dollar currency possibly called the Eurollar or perhaps the even the Duro.

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  6. “Everything is connected – just not in a positive Buddhist way.” LOL. I always look forward to coming to this site for great insight and a good laugh in these otherwise glum times.

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  7. “you cannot win a nuclear war” You certainly can THINK you can win a nuclear war if your holy book proclaims your future victory and coming world domination.

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  8. Pingback: John Ward – Merkel & Tsipras Latest: Good For Gold And Bad For The Euro. Or The Other Way Round. Or Something – 23 March 2015 | Lucas 2012 Infos

  9. Pingback: John Ward – Sketch : Fear, Loathing & Media Ignorance In Berlin – 24 March 2015 | Lucas 2012 Infos

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