‘ Minimising Cost of Future Liquidity and Preventing Financial Crisis ‘

#AceFinanceNews – BRUSSELS – September 22 – Implementing the EU response to minimising the public cost of future financial crises and getting banks to offer up loans top the agenda this WEEK it was reproted by EUobserver.  

European Central Bank (ECB) chief Mario Draghi on Monday (22 September) is set to debate the so-called targeted longer-term refinancing operations (TLTROs) with MEPs in the committee on economic affairs.

The idea is to improve bank lending to the eurozone by offering banks extra liquidity at a fixed rate for up to four years.

But the scheme attracted just €82.6bn (out of the €400bn on offer) of interest from banks this month.

Draghi had earlier this month surprised analysts by slashing interest rates to a historic low in an effort to stimulate lending.

The ECB cut is part of a larger attempt by EU policy makers to kick start member states’ overall sluggish economies and put millions of unemployed back to work.

But with the prospect of possibly having to fend off another financial crisis, lawmakers also tasked the ECB to oversee the financial health of around 130 banks with the power to shut them down.

Also known as the single supervisory mechanism, the newly endowed ECB oversight of banks is part of the single resolution mechanism (SRM), which aims to minimize bank bailout costs to taxpayers.

SOURCE:

#AFN2014

#banks, #brussels, #ecb, #european-central-bank, #eurozone, #financial-crisis, #liquidity, #mario-draghi

` Greece is Fully Financed for the Next 12 Months According to Eurozone Minister '

#AceFinanceNews – GREECE – April 01 – Greece is fully financed for the next 12 months, the chairman of Eurozone finance ministers Jeroen Dijsselbloem said on Tuesday.

The country does not want to ask the eurozone for a third bailout, although it is too early to say if it can fulfil that ambition, according to the official.

Full funding one year ahead is a condition for the International Monetary Fund (IMF) to disburse its part of the existing bailout.

According to (Reuters) Greece was cut off from markets in 2010 as the true scale of its debt burden became apparent. But after four years of painful measures to contain debt, two bailouts worth 240 billion euros ($330 billion) and a hit on private bondholders, the Greek economy is expected to return to modest growth this year.

Encouraged by falling bond yields, Greece is considering ending its four-year exclusion from bond markets by selling 1.5 billion-2 billion euros of five-year bonds in a test issue in the first half of the year.

The cash raised would complement money that Athens will get from the euro zone and the International Monetary Fund after a deal in March which unblocks the payment of overdue tranches.

The certainty that Greece will have enough money over the next 12 months to cover its expenses is important because it is a condition for the IMF to keep lending to Athens even after euro zone loans stop at the end of 2014.

“We had assurance from the Troika institutions that Greece is fully financed for the coming 12 months,” Reuters quoted Dijsselbloem as saying.

#AFN2014

#athens, #eurozone, #greece, #imf, #international-monetary-fund, #tranches

` German Finance Ministry ` European Central Bank ‘ to raise ` Interest Rates ‘ citing an internal Document ‘

#AceFinanceNews – ECB – March 30 – Experts at the German finance ministry expect the European Central Bank to raise key interest rates soon due to the economy picking up, a German news weekly said on Sunday, citing an internal document –

With the Eurozone debt crisis increasingly fading and an improving economy, “an active contribution to the overcoming of the low interest policy is to be expected” from the ECB, Spiegel quoted the ministry document as saying.

That will lead to Germany having to pay more for its loans in a year’s time than it currently does, according to the experts at Finance Minister Wolfgang Schaeuble’s ministry.

The ECB has held its key interest rates at an all-time low of 0.25 percent since November and analysts do not expect a cut by the Frankfurt-based bank at its meeting this week.

#AFN2014

#aceworldnews, #ans2014, #ecb, #european-central-bank, #eurozone, #frankfurt, #german, #wolfgang-schauble

` Soros says `Scotland ‘ leaving and becoming independent and still utilising `Sterling ‘ is a practical solution ‘

#AceFinanceNews Billionaire financier George Soros said Wednesday it would not be practical for an independent Scotland to keep sterling.

“I don’t think that Scotland leaving and becoming independent and yet remaining part of sterling and the Bank of England is actually practical,” Reuters quoted Soros as saying.

However, he warned that an independent currency would be “very inefficient and potentially dangerous.” The alternative for Scotland would be to become part of the Eurozone, he said.

#AFN2014

#ans2014, #bank-of-england, #eurozone, #george-soros, #reuters, #scotland, #sterling

EUropean Economic Community – Prelude To The EU

Euro Disaster  Peace, When It Loses The War.’ and details of the massive amounts of cash moved out of Germany during the war to safeguard the future of German domination against the economic collapse of losing the Second World War against EUropean Union. AND connections with organisations like The Bilderberger’s, Council for Foreign relations, Tri Lateral Commission and other arms of the New World Order.

Around the end of 1939, most of Europe was either consciously or unconsciously under the influence of the economic concept of England. Over recent years, however, it has been swept out of European countries, politically, militarily and economically. Politically the three-power pact has given honour once again to the ancient figures of life, people and room. It has also established a natural order and a neighbourly way of co-existing as the ideal of the new order. The foundation of English economics, which is the basis of the balance of powers, has been militarily destroyed. And economically, a change has come about after the political and military development, the shape of which is easy to describe, but whose final significance is very difficult to evaluate. I can only repeat, that the changing order that is happening now has to be ranked as one of the greatest economic revolutions in history. It signifies a reversion of the economy of Europe to a time before the English concept of building an overseas Europe, i.e. an awareness of one’s own country.

The Discussion so far and its Results

Discussions about questions relating to Europe started as the power of the NSADP grew. At the Congress of Europe in Rome from 14th to 20th November 1932, Alfred Rosenberg developed, for the first time in front of an international forum, thoughts and ideas that have moved us since. No one, who fights for a new economic order in Europe, can ignore these perceptions and conclusions. The economic and political wheel was set in motion, when the NSDAP declared the militarization of the German economy. It is to the credit of the journal ‘Germany’s Economy’ that it first seized these questions in 1932, kept on bringing them up and stuck doggedly to those original perceptions. The idea of German economic self- sufficiency in the new political sense and the German economic militarization are synonymous with this journal. Besides this, Daitz, the ambassador, has earned the special credit of being the first to have related German economic history to the present time. Part II of his selected speeches and essays, which appeared in 1938 under the title ‘Germany and the European Economy’, summarizes his concepts formed between 1932 and 1938. The Italian, Carlo Scarfoglio, delivered with his book ‘England and the Continental Mainland’, a decisive historical contribution to the consciousness of the European continent. Meanwhile German and Italian economic policy drew the political consequences from the historical lessons that were learnt during the blockade and learnt again during the sanctions. The speech made in Munich in 1939 by the leader of the Reich’s farmers, R. Walther Darre, at the 6th Great Lecture at the Commission of Economic Policy of the NSDAP, takes a special place in the discussion at that time. Its theme was “The market order of the National-Socialist agricultural policy – setting the pace for a new foreign trade order.”

While our leader maintained the hope of reaching a peaceful agreement with England, the route for European economic unity remained problematic. The end of 1939 was a decisive point and it was natural that the years 1940-1941 heralded the new economic and political order. The writer, in particular, developed and extended in speech and writing the intellectual fund of the new economic policy, which has been translated into most languages, so that today everywhere the great constructive texts are known. These contexts revolve around the following issues:

  1. Theory about the Reich and the European economy.

  1. The historic, cultural, and economic significance of the German economic order.

  1. The foundations of the future economic relationships between the states.

  1. The nature of the European economic community.

On 25th June 1940 the Reich’s Economic Minister, Funk, publicised in his official capacity his thoughts, which underlined the development so far and thus gave them state sanction. In October, the journal ‘German Economy’ summarised for the first time the principles of European co-operation, the fundamental principles of German foreign trade, Germany’s export economy and ways and means of promoting export. It did so in a popular review “About A New Europe”, providing an overview of the important problem of European economic fusion. Around the end of 1940 the Berlin historian Fritz Rorig finally outlined in his book “Hanseatic Essence” the historical foundations of the greatest economic and political achievement by the Germans.

I am clear in my mind that total clarity is to be found in the principle questions: The necessity is recognised for a political order for the economic co-operation of the people. The nature of the new order : awareness of tradition, using up one’s own economic resources, long-term economic agreements and fair relations, is affirmed. The economic inter-dependence is underlined by fate. The economic unity of Europe is thus clear.

Economic Practice:

Even practical economic life has increasingly allowed entry to new thoughts. I am able to see the decisive steps in the start and realisation of the following points:

  1. In the increasing payment traffic through Berlin.

  1. In the exchange of experiences in various areas of economic life. Thereto belong also the statements of ministers and business people, the calls made by special advisers and the collective tackling of important tasks relating to the economy. Even the specialist is surprised, once he has taken the trouble to put together all the connections. Today they are already legion.

  1. In the signing of long-term economic agreements between the Reich and the other European states, which the public is aware of, there can be no doubt that such agreements are those of the future.

Of course, that cannot prevent unclear points and new problems from arising, which become clear at the time when the situation is reviewed.

Problems Related to the Economic Community of Continental Europe

These unclear points primarily relate to the concept of economic direction, the extent of solidarity and neighbourly attitude, the development of one’s own powers, the care to maintain the standard of living and the question of raw material purchase from foreign countries. It is natural that one or another issue will take priority of interest, depending on the set of conditions that prevail. It should be attempted at this point to give a reply, albeit a summary one.

There can be no doubt that the concept of direction of the economy, or rather its leadership, is as novel as it is revolutionary. Its classification is all the more important, as the fate and consequence of European co-operation depend principally on a new consistent form of economic understanding. The Anglo-Saxon view of economics is dead: consequently, even the so-called ‘classical’ national economy is no longer classical, but it has survived. So what it comes down to is that a new understanding arises to do with ideology and terminology, which represents a sound basis for agreement and co-operation. Relating to this, one must point out the following in detail:

  1. Economic direction is not a momentary emergency solution, instead it forms the core of new theory and practice. First of all, it takes the place of individual egotism and the automatic autonomy of the Anglo-Saxon precept.

  1. Economic direction is not identical to the tendencies of a centrally planned economy. It does not seek to cancel the individual or to administer through the state operators.

  1. Economic direction really means the following: the new instruction of the creative and constructive power of the individual in relation to the whole system; the creation of a consistent economic view and an attitude towards the economy; the selection of important tasks through political leadership and the state’s final decision on all questions about economic power. Beyond this, the economy is free and responsible to itself.

The degree of solidarity of the individual economies and their neighbourly attitude is characterised by three guidelines:

Firstly, it is limited in regard to its own economic development by the recognition that the utilisation of individual resources represents not only a requirement of the new economic precept, but is the very foundation for economic activity. The European economic community has no interest in leaving any abilities or possibilities unutilised.

Secondly, it contains the obligation that, because of Europe’s freedom, consideration is given firstly to continental Europe regarding any matter related to economic activity. Not only should the shared fate of the European people be emphasized, but the fact should also be stressed that the supplementation of the European economies beyond their borders is possible and sought after.

Thirdly, it must be maintained that, above all else, the spirit of the individual economies may not be allowed to go against the spirit of neighbourly co-operation.

The question of developing one’s own powers refers to the problem of mono-cultures, of industrialisation of the agrarian south-east and the awakening of new needs.

An answer can easily be given to the first question. Mono-cultures are the result of the same economic precept that made the world market price the determining factor in the economy. According to that precept, people and land are the vestiges of some by-gone age. Europe is well on the way to destroying these mono-cultures with initiatives ranging from land improvements and growing new crops to discovering new local resources. All these have the same aim, which is to develop the economy and broaden its basis. Germany and the whole of Europe can only greet these efforts with gratitude.

The industrialisation of the south-east poses a particular problem regarding these questions. As I am unable to handle this problem – like all other problems – here in a comprehensive and exhaustive manner, because the industrialisation of economies is theoretically a difficult problem, I can only say as follows:

  1. Just as it is in the nature of things that each country will strive to utilise its available resources for its own production, so will there will be a knock-on effect for other economic partners.

  1. If, as is the case in the South-east European countries, there is heavy over-population in the countryside, then there are only three possibilities to solve it: itinerant workers, a permanent emigration and an ‘intensivisation’ of the local economy, a term correctly created by Dr. Ilgner for the problem of industrialisation. Itinerant workers can only form a part solution. Besides, it only applies to agricultural and construction workers and gone on for ages. Permanent emigration from Europe is just as false as impossible. There just remains the intensivisation of the economies of south-east Europe as the way to self-help.

3. The economies should make it possible for an independent life according to the modern economic view. The intensivisation of their economies therefore is right for the time.

4. The old features of industrialisation, which evolved from the price collapses in countries with agriculture and raw materials, have to now belong to the past. Europe is a communal living area. Only through a joint development of economies – and not through independence from one another – can protection against crises be achieved.

5. The tasks that have to be solved in Europe are so big that the powers needed to do so have to be released by an intensivisation of the each economy. This can be easily done by employing the workers that have been liberated in new branches of the economy.

Without affecting the difficult questions of purchasing power, it can be regarded as proven that the joint work to build up Germany’s and the south-eastern states’ in the area of industrialisation lies in the direction of the intensivation of interest of the whole continent.

One important and until now completely overlooked task in this regard exists and that is the awakening of new needs in the south-eastern countries. It is because, in those countries, wealth has grown and will gradually continue to grow, as a result of the reliable purchase of agricultural products and available raw materials at adequate price levels. According to the principle in economics that giving equals taking, peoples’ living habits there will have to change, otherwise one day the process will come to a halt. Germany’s ability to absorb the products from the south-east is practically infinite, whereas creating a demand for German goods there is not only a matter for economic intensivation but also one of modifying the people so they consume more. This task is of such importance that it has to be considered from the very outset, so that the south-eastern European economies are elevated after the war.

Equally important as the industrialisation of south-east Europe is the question of the standard of living in the north. Their economic development and high standard of living, which underpin their lives though all economic conditions, should not be mistaken. This standard of living has grown considerably during the 19th century and around the time of the world war due to free trade, so that various circles view world economic events with particular concern. From a German viewpoint, only the following points can be made:

Firstly, a higher standard of living is also the aim of the German government. The German people not only understand this well, but also through its fight wants to ensure European civilisation and culture. This fight will benefit the whole of Europe, and with it the north.

Secondly, despite being connected successfully to England and its economic system (one should not ignore the countless economic troughs that feature there), the economies of the north whose fate and greatness are very closely linked to Germany.

Thirdly, the northern states’ difficulties are going through a temporary phase of adjustment. In the long-term, this will bring about a lasting advancement, rather than destruction, for their economies’ foundations.

Maintaining a high standard of living is not an insoluble problem. To finish, I now come to the problem of purchasing raw materials from overseas markets. A leading south-east European economist once wrote about this principal question: “Unlike the war, we were in the following situation: in order to import raw materials from overseas countries, we bought goods from west European countries with foreign exchange. In the area of continental Europe there is no gold. Everything had to pass through the system of clearing – goods sold against goods. We have no product that can be sold to North or South America. That means that the leading nations are obliged to acquire and distribute to us the raw materials that we need. The leading nations of Europe can supply, with its capacity, enough products to overseas countries with which to acquire raw materials. The one question is whether exchange will ever happen… Even before the new order is introduced, and without even joining in with the Axis powers, we stand in solidarity outside Europe with its traffic of goods…”

 

 

#acenewsservices, #angela-merkel, #economic, #economic-revolutions, #economy-of-europe, #economy-of-germany, #england, #european-union, #eurozone, #german, #germany, #libya, #middle-east, #new-world-order, #politics

Germany’s top economic policymakers have clashed in court…

Germany’s top economic policymakers have clashed in court, setting out very divergent views on the legality of measures to tackle the eurozone crisis.
At Germany’s Constitutional Court, the Bundesbank’s chief opposed the European Central Bank’s buying of bonds to ease the pressure on eurozone countries.
But Germany’s finance minister and a German ECB board member strongly defended the policy.
Thanks to BBC News at http://www.bbc.co.uk/news/world-europe-22852929#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

#debt-crisis, #bundesbankl, #european-central-bank, #eurozone

Change Is Happening But It Is Not Yet Time

Euro

Euro (Photo credit: Images_of_Money)

Nice Interesting article and l see many reasons for believing Gold will not yet peak! There is however one irrefutable reason it will drop in the future and that is an end of the Euro Zone! In the meantime, people are making good returns!

#euro, #european-central-bank, #european-sovereign-debt-crisis, #european-union, #eurozone, #germany, #greece, #united-states

Spain’s Atrocious Piggy Bank Spending Runs Wild

20090113 bankruptcy-01

20090113 bankruptcy-01 (Photo credit: Wikipedia)

Bank

Bank (Photo credit: 401(K) 2012)

A strange title some would say but the sheer fact that Spain has been able to hide these huge amounts of debt, for many a year! Is staggering to say the least!

I have been following this and many more stories on the Euro Zone paying special attention to the amounts being requested and asking myself, is that what they really need! Or what they say they want!

As numerous discussions have taken place with bankers and treasury ministers l have come to the conclusion the ” left hand does not know what the right hand is doing” ! So let us consider the right-hand, this we will call the bankers or treasury ministers who for years have so-called looked after their people’s money! One day it all changes with a new buzz wordBailout Fund” a way for any Euro Zone country to get money to pay off their debts! Wow free money, with very few strings attached just impose austerity on the people whose money you squandered, make them pay, for your incompetence! While you continue to provide the same inept services you always did making sure you get a nice big pay rise to boot!

These figures l provide in the part below this statement are what l personally overheard Spain’s banking minister say when interviewed on 3 separate occasions until last night when Catalonia said we have just enough money for one more month! Well here are the figures –

When the likelihood of a bailout emerged only a short while ago it was just a figure of 23 trillion Euro’s it rose by miscalculation after miscalculation from 46 to a figure of 100 trillion! Last night it was revealed that this was only earmarked for the banks! In fact this will not be enough to bail out the country, this is nearer 350.00 trillion!

So my conclusion is that any country through sheer incompetence gets in a financial mess and are a member of the Euro Zone countries, just cry bailout and make the people pay!

Just one more thing who or what is the left-hand ,well l said in the beginning the ” right hand does not know what the left hand is doing” well the right hand is the bankers and treasury officials! So the left hand must be all the rest of us, who are so blinded by what we are told is all being provided to help our economy grow! Of course prosperity does not come from borrowing more, austerity measures or getting people to spend more, that is cap-it-all-ism!

True prosperity comes like a rich tapestry of life from good honest hard work, good honest people and most of all the faith in oneself to do the best they can for their fellow-man and woman! Not from under-hand and under the counter wheeling and dealing by putting profit before people.

#bailout, #berlin, #catalonia, #european-central-bank, #eurozone, #government-of-spain, #spain, #united-states

Ever Wondered Who Has All Those Euro`s

Mariano Rajoy en Bilbao. Imagen tomada por Ike...

Mariano Rajoy en Bilbao. Imagen tomada por Iker Parriza (Photo credit: Wikipedia)

Just picked up these details of who actually has the highest capital available in Euro’s and how much is really available to lend. Not a surprise Germany leads the pack!

Also that maximum available for lending is just 500 billion not a lot when Spain has been promised 100 billion or 1/5th of the pot. This relationship to countries and the funding mechanism known as the EMSF will not cover further bailouts as was announced on EUobserver today with comment as follows:

Italy‘s Mario Monti has said his country does not need a bail-out, even though its borrowing costs have soared amid contagion from Spain. This is and seems to be recent history repeating itself as the same comments were made by Spain’s Prime Minister Mariano Rajoy at 9am UK time that they did not need a bailout then they needed 40 billion a few hours later. By the following day at 4pm UK time they needed 100 billion.

So my question is how long will it be before the Euro Zone runs out of money?

#bailout, #european-union, #eurozone, #germany, #italy, #mariano-rajoy, #mario-monti, #spain

Eurozone Crisis: ECB’s ‘Back Door Quantitative Easing’ Lifts Markets

European Central Bank

European Central Bank (Photo credit: kumbarov)

With borrowing comes responsibi­lity or so the story goes because this story gets more like a pantomime everyday. You can make your own mind up to which one and who plays certain characters but now we have a benefactor good olde ECB and what have they offered this Christmast­ide well money of course, well they are a bank. But not just any bank but the bank of last resort and what does the one in [drag-hi] do but buy up all the debt of other countries.

Now we should all be saying well done but instead we are saying he`s behind you and his name is not Abanazar, but something much worse the ” Ghost of Christmas Of Yet To Come ” namely a huge ” Debt Mountain ” but in the meantime people will still dress up and act out the pantomime until the very last act.

The it will be CURTAIN`S
Read the Article at HuffingtonPost

#bank, #bloomberg, #christmas, #ecb, #european-central-bank, #european-sovereign-debt-crisis, #eurozone, #greece, #reuters, #spain, #wsj