Dunce Talk and Fuehrer Walk ~ The Risk Averse Alert

Monday, August 20, 2012

Dunce Talk and Fuehrer Walk


What a laugh. The ECB's "game changer" apparently involves plans to cap Spanish and Italian bond yields. Apparently, a heaping helping of sophistry addressing "convertibility risk" will do the trick, with bond purchases unlimited in scale being the magic mechanism, or so they dream. Of course, no mention is made of the terrible damage already reeked by the Reichsbank's "limited" bond purchases over the past few years. Just how this "plan" avoids accelerating hyperinflationary breakdown spreading physical shortages and slave labor conditions across the entire European continent, the likes of which will but further destroy demand, evidently escapes concern of the hopelessly insolvent, viciously fascist ECB.

Rising rates and falling core currencies in a race to the bottom here we come. Unimaginable contraction of economic activity the guaranteed result. The real authors of this insane policy positioned to profit. Is it really that hard to connect the dots? The contrast between the ECB's talk and the Fuehrer's walk is stark. You have to be gullible beyond belief to think the American trained incompetent leading the Reichsbank has even a shred of credibility. Yet when your book requires elevating the fascist likes to the status of "genius," what choice is there but buy into the plan? Or, more aptly, at least not sell into it. Not yet anyway. But soon, no doubt.

There will be no escaping the physical decimation if the ECB's hyperinflationary scheme comes to fruition. Yet for the bear camp trapped central banks on both sides of the Atlantic present a "heads I win, tails you lose" proposition. By all appearances in the interim are but suckers to cull. Nothing else explains the market's continued levitation.


Fast Money
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