SHORING UP THE SHANGHAI & GANGING UP ON GREECE: A WORLD FULL OF GOOD MEN DOING NOTHING

Tell me: is there a decent hero on the planet?

Market control in a supposedly neoliberal world, fortunate glitches in a nervous Stock market, and bullying hypocrisy from the squandered marbles army. There is little or nothing worth saving in any of it.

The Shanghai index’s collapse was ‘stemmed’ during Asian trading earlier today. Much relief all round, but there are two reasons not to be joyful about it: first, the market is still around 55% higher than it was a year ago, when the property market collapse pulled novices into stocks…so logic would suggest it has further to fall; and second, it is not market sentiment that has stopped the rot, but more draconian Beijing regulation. 50% of all China stocks are now suspended, and yesterday the government ordered a blanket ban on anyone with more than 5% of a company’s stocks from selling for the next six months.

So this is not a rally, it’s a dam. In the US yesterday, a glitch came to the rescue of NYSE traders already nervous and gloomy. Nobody I spoke to believed the hiccup was either accidental or satisfactorily explained.

“There’s definitely an issue if we see a further correction in the Chinese stock market,” said Russ Koesterich, BlackRock’s chief investment strategist, but then he added a tell-tale bit right at the end about the EU (my italics): “Greece is going to be a negative in the short term. If you don’t see a deal on Sunday, you’re going to see a negative knee-jerk reaction on Monday. I don’t think a ‘Grexit’ is priced in,” he said. However, he did not see Greece as a major problem for the market longer term, “since Europe is backstopped by the European Central Bank.”

In recent days, more and more people with their brain functions intact are starting to gen up on the real Greek debt canvas that’s been gradually painted over since 2009 by ham-fisted cover-up artists called Draghi, Schäuble, Dijesslbleom, Schulz, Samaras et al. I’d refer those who missed it to the Daniel Hannan demolition job The Slog performed on June 17th this year   in relation to his woeful ‘analysis’ of Greek debt and surplus, because Point 4 therein is an important reality that the daubing history-changers would prefer you didn’t perceive. This is that the ECB could this afternoon write off two-thirds of the entire Greek debt without any harm or cost to anyone anywhere at any future time.

A central bank configured like the ECB can put a zillion quadrillion Swiss francs of debt into its ‘negative assets’ column and forget about it, because the ECB cannot go bust. The surreal accounting system behind the euro ensures that the Central Bank can be blown up by a direct nuclear hit, but its viability as a financial institution will remain intact. The markets and the first Troika were perfectly well aware of this, as are the hypocrites working forTroika2.

The Greek debt is not being forgiven for a number of reasons – lending market dislike of written-off debt, fears about default contagion, a German determination to contain all resistance contagion, and a continuing belief that the euro’s cadaver is not dead, it is simply resting. That’s it: there is no fiscal or economic logic to any of it. Club Med is being destroyed by austerity to show the markets that European debt will be repaid come what may – even if the entire region has to starve and degenerate into Civil War in order to achieve that goal….a goal that is mathematically unachievable anyway. The situation really is that surreal, and its practitioners that profoundly deranged.

Degrading and depriving millions of EU citizens for the sake of a fiat currency with no Sovereignty to guarantee it, and no way to opt out of it – because it was designed by hubris-fuelled idiots keen to offset any and all responsibility for unsound fiscal governance.

That’s what we are looking at here: a policy that is blatantly unconstitutional under the Rome and Lisbon treaties, and one that demands the bill be paid by the waiters, not the troughing borrowers. In exactly the same wicked and lawless manner, the Berlin FinMin is now lobbying for any failed Greek banks to be the subject of bailins whereby entirely innocent citizens will lose such savings as they have left…precisely as Cypriot citizens and foreign retirees lost theirs. For Mr Dijesslbleom has his template, and that template must be used.

Meanwhile, the odiously irresponsible Troika1 lenders got away with their margins largely intact from the early stages of this ripoff – because they either sold on their investments to vultures, or the vultures themselves paid 10cents on the Dollar and received only a 40% haircut. Goldman Sachs (which conspired with the original right wing Greek government to deceive Brussels about the scale of the debt they were busy selling to the fat cats) in turn has never been brought to book for that heinous crime.

So to sum up, the German position as of last night was a flat refusal to accept any devaluation of a debt that can never be repaid, but which could be largely vapourised by one push of an electronic button. Some call this intransigence; I call it insanity…the insanity of fanatics who refuse to accept defeat. The same mentality, if you will, as those SS officers who – with the Russians two streets away from the Reichschancellery in 1945 – walked around calmly shooting any citizen unwilling to resist the Soviet advance.

Francois Hollande – the Socialist President of France – and his FinMin Muscovici have now fallen in with the eurogroupe Schützstaffel tendency… fully aware of the fact that France played a central lobbying role in designing and then exploiting the irresponsible nature of the euro’s format: since EMU came into being, the French have failed to hit a single deficit target they were set by the Commission. No bat-pummelling for the French, though: bullies, after all, never take on anyone approaching their own size.

There remain for me this morning three other targets for ire. First, Tsipras – for offering to continue with a 3-year bailout. That’s not so much a red line as a red rag to all those tired and tortured bulls who voted for Syriza in January. Second, the European Parliament, whose behaviour towards Tsipras was horribly reminiscent of Mussolini’s fascists shouting down Haile Selassie’s speech to the League in 1936. And finally, a disgraceful British Labour Party too ideologically constipated and europhile to align itself with the People.

‘Forward with the People’ a famous Labour paper used to say. What a truly reticent, flappy-bottomed shower of pampered fluffies they are.

72 thoughts on “SHORING UP THE SHANGHAI & GANGING UP ON GREECE: A WORLD FULL OF GOOD MEN DOING NOTHING

  1. Reblogged this on Ordoliberalism and commented:
    Ordoliberalism is dead in the water and has been ever since the mock-laissez-faire neoliberals, fully into manipulating markets to death, push the world into what will be its next Great Depression – even larger than the subprime mortgage crisis of 2007-2009, that ended just 6 years ago! This is John Ward’s slog at its sharpest.

    Like

  2. Until there is a serious opposition INSIDE Brussels, there is no hope for change from any part of the EU.
    There has to be SOME dissent inside the European Central Bank, the IMF, the Commission, they can’t all be Stepford wives.
    The destruction has to come from within -or at least the door has to be unlocked from the inside.

    This recent idea that we can all say what we want -providing we don’t stray 1mm from the party line- is just bizarre.
    How did that come about, the System couldn’t all just have thought it up one sunny morning.

    Like

  3. China’s economy is much bigger than Greece’s and its impact on the UK will much bigger.
    As Richard Murphy puts it:
    “China has been pouring money into the UK, buying real estate, funding our nuclear power and even HS2. But the Chinese economy is tanking, to put it politely, and the Chinese government is spending a fortune at home to bail out its stock market, most of which money it is unlikely to recover. That’s likely to be money not coming our way soon as a result, because those who have bought property overseas on the crest of their Chinese stock market gains will no longer be doing so and the Chinese government is unlikely to be pouring money into the UK economy any time soon as a result of the current domestic situation.
    So far from saving in the UK, which is what Osborne needs China to do, it is more likely to be pulling money out. Some of those London investment properties are going to be on the market soon as people try to cover their stock market losses at home.

    And that means that the boost China has given, on which George Osborne has relied to make his books look like they will balance, will be disappearing.

    Like

  4. John, congratulations, you’ve just reached another peak!
    A comprehensive, thorough and in-depth analysis.
    One minor correction, if I may:
    “Goldman Sachs (which conspired with the original right wing Greek government to deceive Brussels about the scale of the debt they were busy selling to the fat cats)”
    If my memory serves me right in office, after the national elections of 2000, was the “progressive”, “pro-European”, “modernizing” even “socialist” PASOK government lead by Konstantinos Simitis as PM and Yiannos Papantoniou and, subsequently, Nikos Christodoulakis as Ministers Of National Economy and Economics.

    Like

  5. According to many this particular government made PASOK indistinguishable from Nea Demokratia. Assuming that these two parties were, in fact, different in the first place.

    Like

  6. Reblogged this on Machholz's Blog and commented:
    The whole corrupt financial musical chairs is falling apart and today we say the first steps into a world wide meltdown and no amount of monopoly money is going to save it : The Slog on the ball again : Well done and a great read!

    Like

  7. ‘The market is always right’ is an old adage, meaning, beyond the short term, market forces beat politicians. Thus, Greece will default, however it is dressed up, probably with a debt swap of zero coupon 100 year bonds, and the one size fits all Euro will, by 2020, be the currency of North Europe, only, and not ClubMed. The ECB,as a consequence, will go down in history as being neither ‘central’ nor a ‘bank’, remembered for cutting off liquidity to Greek banks, in their hour of need, unlike the Old Lady, which rescued ‘no more boom and bust’ Scottish banks.

    Like

  8. Sorry, all the decent heroes – or non-violent extremists to use the correct nomenclature – have been variously muzzled, discredited and disconnected (hurrah). Unfortunately, they were unable to sing from the Newspeak Hymnbook convincingly and it was necessary and just, therefore, that they be trampled into the dust along with their filthy and degenerate hatespeak. Anyway, can you believe it, they were trying to interfere with our human rights! Must run along now, these boxes don’t just tick themselves you know. Tra-la-la-la-la and ta-ta.

    Indecent Hiero.
    And that was the polite version.

    Like

  9. Its a Fractional Reserve world…..
    Fractional Reserve Banking – money out of thin air to an all empowering financial industry..
    Fractional Reserve Europe- robbing the people to preserve the above banksters which are bust…
    Fractional Reserve Science- leverage of the false claim that CO2 = global warming as corrupt method for stealth taxes to sustain the West’s busted model…

    Fractional Reserve World – 1% = The Rest
    http://www.peakprosperity.com/blog/82432/bankers-own-world

    Like

  10. The answer to the question in the heading is NO!
    These are the scum who actually run our world & this is what they think;
    “(A) putsch in Athens to save allied Greece from enemy Russia is in preparation by the US
    and Germany, with backing from the non-taxpayers of Greece – the Greek oligarchs,
    Anglo-Greek shipowners, and the Greek Church.”
    And an extract from further down this page is:-
    “In London the US-funded Legatum Institute skipped the poll evidence and panel
    discussions, attacking Venezuela, China, Syria and Russia instead for using “phenomena
    previously associated with democracy—elections, the Internet, the press, the market—to
    undermine freedoms”, along with “the self-organising potential of society.” Legatum left
    Anne Applebaum by herself to announce the Greek government can be overthrown because it
    was “elected on a completely false premise”.”
    http://johnhelmer.net/?p=13712#more-13712

    Any more questions Mr.Ward?.

    Like

  11. You know in all this madness I await a certain manufacturer of toys to get its act together and release to US a themed version of one of the greatest ever board games made….

    COME ON HASBRO, Get it together and bring us PonziOpoly 2015.

    We could even crowdfund it and have the likes of Max Keiser, ZeroHedge or even Yanis Varoufakis help in its conception.

    Now, if only I could find some note paper to write to their Board of Directors on the subject.

    Like

  12. With the arse dropping out of China, Greece and the knock on effect then the plug pulling on NYSE does this mean the entire financial world has consumed itself? The sun will still come up tomorrow but who will finally pay for their stupidity?

    Like

  13. kfc1404,
    Give it a rest with your links for heavens sake. Do you think people reading the Slog have not heard of zerohedge or need you to point out other blogs. We know how to use the internet thank you very much.

    Like

  14. Tony, I am at a loss as to why you have singled me out for the sharp end of your tongue, then it occurred to me, you LIverpudlian, aren’t you? Bin Trollin by chance?

    Like

  15. Spot on then!

    However, believe it or not, there are people in Hellas (not very few I’m afraid) who still think that PASOK is (kind-of) Left-wing. Not to mention the numerous mental cases who exhibit a nostalgic fondness for the “third road” to socialism that (supposedly) Andreas Papandreou was after.

    Last, a thought that I am trying to clarify and consolidate is that the case of Wolfie and of others like him is not really an example of a vicious, vindictive and sadistic sociopath pursuing a personal agenda while, at the same time, being an obedient server of his masters.

    An alternative view could be that Wolfie personifies in the most explicit and uninhibitive way a model-type HERO of the neoliberal casino-capitalism & cut-throat competition economy and society. Thus, his actions no longer seem shocking, appaling, inhuman etc. They are simply natural and cohesive expressions of the rapidly speading “normality” and “reality” across the globe.

    Like

  16. Great idea TFS………… but the builders of this new board game need to include that special button described above that cancels all debt. This button could of course could be pushed by ANY PLAYER at ANY TIME……. After all this would only be the “fair” way to play the game. Right?

    Like

  17. Tony…. don’t you have one of those little scroll wheels on your mouse? If you give that baby a spin you can spin right past a commenter that annoys you which in my case would be “Tony” from now on.

    Like

  18. Ok, Phaedrus, lycanthropic conditioned reflex neurosis (LCRN) is serious enough, but it seems we’re now looking at Stockholm syndrome as well. My colleague Dr Hungerdunger can see you Wednesdays at 4.00 pm for forty minutes at €500 per session, believe me it’s a bargain. Alternatively, you could try the F*ck That meditation technique, information below. Also, the dietary approach can work, this involves eating nothing but raspberry pavlova for six months. Personally, I’m tempted to open a vein.. ;)

    Like

  19. As I near 68 I still find it amazing that powerful forces through history and throughout the world have and still manage to lie and manipulate with impunity. The guilty can walk free because they are connected , markets manipulated ,black is the new white, dirt pushed under a carpet and the more it happens the more they despise us for allowing it to happen. It diminishes ones self respect believing it to be so and failing to change.

    Like

  20. Ha ha… brilliant. I sent the ‘F*ck That’ link to a friend of mine whose seriously into meditation. She was not amused. Had a serious sense of humor failure. Too much Zen with her News @ 10 I think…:-)

    Like

  21. Ha ha… brilliant. I sent the ‘F*ck That’ link to a friend of mine who’s seriously into meditation. She was not amused. Sense of humour failure. Case of too much Zen with her ‘News @ Ten… :-)

    Like

  22. Agreed, and now they are having an “independent’ inquiry into systemic child abuse….but will take until 2020 to complete. I am checking for buttons up my back!

    Like

  23. @ the one and only HB!!!!

    Can you really book me some appointments with Dr Hungerdunger????
    Although a daily diet consisting exclusively of raspberry pavlova is too much to ignore (slurp slurp).
    However, in both cases we will have to come up with an alternative financial arrangement since actual Euro notes are becoming scarcer than hen’s teeth as they say in an island country whose name eludes me right now.
    Having reread my previous comment (I did say it is a work in progress) I am rephrasing it as follows: Wolfie et al. are unable to perceive the monstrocity of their actions.
    How about that?

    Like

  24. Phaedrus, the phrasing works for me. One of the traits of a sociopath is a lack of conscience, so perhaps they perceive, or comprehend the monstrosity but just don’t give a sh*te.

    Like

  25. Phaedrus…. you’re cured! (Actually, I’m not really so sure about Dr H; I sent my cat to him and now he thinks like a budgerigar.. oh, it’s a world of trouble.. ;)

    Like

  26. That was fooking brilliant!!!
    My stomach muscles ache right now, tears flow from my eyes and I feel elated and in peace with me inner fooking self.
    A great meditation session.
    Thank you Collonel for the link and thank you Dr. H for the referral.

    Like

  27. The ‘disgraceful British Labour Party’, whenever it finds a new leader, has a once-in-a-generation opportunity to seize the ‘common ground’, not the middle ground, but the common ground that encompasses people from all flavours of society.
    To do this, he/she simply needs to align the Labour Party to a clear Brexit policy, thus retaining historic Labour voters, capturing all of Ukip’s blue-collar supporters, plus many Tories who will always distrust Cameron on Europe and many others who never bother voting.
    That’s what the SNP did in Scotland, they brought together a wide cross-section of Scotland under a single, simple banner – but what the SNP has really proved is that, once you have captured those voters with simple a binary campaign, you can keep them into the regular political sphere, hence their wipe-out of all other Jock parties at Westminster.
    That is probably the only chance Labour has of regaining power, not only for decades, perhaps for ever. Is that worth ditching the pro-EU baggage for? If I was leading Labour, I wouldn’t hestitate, because parties only exist to gain and retain power, nothing else, without power or the prospect of power they are nothing, an irrelevance. Whether it’s Andy, Liz, Yvette or Jeremy, only this one step will ever give them the slightest chance of any real success.

    Like

  28. Well, this definitely is a possibility.
    However, such an attitude/stance/worldview is totally incomprehensible, at least according to my personal moral/ethical code.

    Like

  29. A little bit of a quizz for tonight:

    A WWII Nazi General, a Crusader, an unnamed ISIS executioner, a Golden Dawn thug, a Goldman Sachs Golden Boy, a typical Brussels Sprouthead and Wolfie the Wheelspinner all enter the same Bar somewhere in a parrallel universe.

    Question One: What do they all have in common?
    Question Two: Who wins the drinking competition?
    Question Three: Who gets home with the pretty bartender (gender not specified)?
    And the Big-Prize Question: Which country gets fooked first?

    Like

  30. “…the government ordered a blanket ban on anyone with more than 5% of a company’s stocks from selling for the next six months.”

    It’s called ‘capital controls; isn’t it?

    Like

  31. 1. They are in a bar
    2. Not the ISIS executioner he is busy
    3. Killing the rest for drinking so the pretty bartender goes home alone.
    4. Crash2= all of us.

    Like

  32. 1 Like BC said, I think they are in a bar, but they are coincidentally in a bar in the same parallel universe.
    2 The Crusader, it’s most of his preferred daily liquid intake.
    3 The Goldman Sachs Golden Boy because he knows how to sc#*w anyone.
    4 The weakest.

    Like

  33. Pingback: SHORING UP THE SHANGHAI & GANGING UP ON GREECE | Doomstead Diner

  34. French President Hollande: “Greeks have shown determination that they want to remain in the eurozone because the programme they presented is serious and credible”.

    Another HUGE success of our government:

    First, it got rid of the cursed Troika (IMF, ECB, EC). Now they are working with the Institutions (EC, IMF, ECB).

    Second, it got rid of the cursed Memorandum of Understanding (Taxes, Layoffs, Privatizations). Now, it seems, it has secured a “mutually agreeable” and “mutually beneficial” Programme (Privatizations, Taxes, Layoffs).

    Doctor, do you smell something fishy or is it just me???

    Like

  35. It’s always fishy, the whole shebang stinks to high heaven. I suspect the Hand of God, (or as we know him, Obama) has made them all an offer they can’t refuse. It’s the way of the world these days…the vassal states just do as they are told.

    Like

  36. It can’t be you, Phaedrus, according to our psychiatric experts you are in full possession of your faculties. The smell is all too real. Unlike the smell of skunk cannabis deemed to be emanating from my thirteen year old son’s sports kit after a double PE lesson on Tuesday. As a result of this half witted observation by an ‘Assistant Headteacher’ (they have to have several so that they can inflate their egos sufficiently and be impressive) there was a witch hunt and the poor lad was threatened with police involvement, terrorised by staff for several hours and put under considerable pressure to confess. Predictably, the real Headteacher refuses to either apologise or admit that the whole fiasco was a gross error of judgement. We’ll see what the Board of Governors has to say – probably not a lot I suspect. These idiots are quite literally everywhere now in UK, you can’t avoid them and boy do they hate to be confronted with their inadequacy.

    Like

  37. I know what you mean kfc but frankly I have no option and anyway I enjoy watching them wriggle around on their own ridiculousness. I have two children with learning difficulties and I’ve fought for years, not entirely without success, to get proper educational support for them, without which they would be considerably worse off. It’s tiring and depressing, but failing your own flesh and blood is even more so. I had three lengthy telephone arguments with the school yesterday, two with the Headteacher, each of which would have made Orwell turn in his grave. This possibly explains why my comments here were even more nutty than usual!

    Like

  38. So, Hb, what am I to say about my everyday dealings with the elected Mayors and Aldermen (or is it Alderpersons)?
    The idiots you refer to seem like monuments of ecumenical intellect (of the magnitude of a Cornelius Castoriadis or a Michel Foucault) if compared to the ones I am dealing with.

    Moreover, I have a personal question and a request of you:

    a) The question: Do you employ Zen principles when you practice the art of motorcycle maintenance?
    b) The request: Would you be so kind as to provide your input to last night’s quizz? I’m really looking forward to it.

    Like

  39. I wasn’t being insensitive. I was typing the above message while you were posting your response to KFC and I hit the post comment button before I had the chance of seeing your last message.
    Sincere apologies.

    Like

  40. No apology needed, Phaedrus.

    a) I practice zen in all areas of my existence, to the best of my ability; the sound of the one hand clapping is music to my ears.

    Q1 They are all consequentialists who believe that the end justifies any means.
    Q2 Erwin Rommel, because he knew how to get tanked.
    Q3 Wolfie, because he’s got his own wheels and is a real swinger.
    Q4 Belgium.

    Like

  41. Thank you for understanding. I would ‘ve never posted the above or any light/humorous comment if I had read yours beforehand.
    But, since you did answer the quizz I have say that the First Prize goes to you since you answered all questions correctly except from ONE!
    The right answer to Question 2 is: Milton Friedman.
    And before I hear any complaints or objections that he wasn’t there etc., I state the obvious: Let us assume he was there!

    Like

  42. Damnit, Friedman, I should’ve got that. Do I still get the night out (or in) with Vicky Papadopoulou (unfortunately, Arete of Cyrene is no longer with us..)??

    Like

  43. How, in the world, were you able to guess what the First Prize was????
    Since you abviously are of the literary persuation a booking has already been made for you +1 at the Sketch Lecture Room and Library.
    Unfortunately, Vicky Papadopoulou is at the moment unavailable due to prior engagements.
    However, I just got word from Zoi Konstantopoulou that she’s game if you’re up to the task.
    May the Gods bless your decision with wisdom!

    Like

  44. Well, I can’t pretend I’m not disappointed, but Zoi is a helluva girl.. I accept! Tell her I’ll pick her up outside Parliament at 7.30, and I promise not to mention Stavros.. :)

    Like

  45. You’re a brave soul Hieronymusb! I salute you.
    You are officially warned NOT to use the S-word in front of her. The consequences will be dire.
    A final word of advice: try to avoid choices like the “Blue Fish” and “John Dory For 2”, “Pigeon” is a definite no-no.
    I have a hunch that if you go for the “Black and Red Berries” you might actually be in for a treat of sorts. Proceed with extra caution. ;)

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s