rpt-MMC-2012-03-cb-Peek

1 March 2012 Edition Restricted Copyright 2012 © Gordon T. Long All Rights Reserved [email protected] GREECE: A Dubious Deal Unintended Consequences Looming It is both a bad and unworkable deal. This is not just my opinion, but in fact the opinion of the Sustainability Report commissioned by the EU. There is an old adage in the financial world that when you need to solve a mysterious and complex puzzle: "Always follow the Money". We did this and found unprecedented amounts of money is flowing from Greece (and the EU peripheral GIIPS) to German Banks or sister banks in the Global Banking fraternity, We are witnessing EU banks being able to borrow unlimited amounts of money from the ECB (€3 Trillion) through questionable vehicles such as LTRO for 1%. Yet Greece is unable to borrow from the ECB, even though it would pledge the same Greek Bonds that the Banks are pledging as collateral for their 1% loans. There was a time where the logic for the ECB not lending directly to Greece made sense to this writer. Today, based on ECB collateral policy it no longer does. The obvious is being hidden from view. The GIIPS are pledging Assets, Gold and future Taxation income for Euros, which are being created on computer screens at the ECB and Global banks. The Banks are receiving real assets while lending out "paper'. The Macro Prudential policy of Financial Repression, which I laid out in this year's Thesis 2012, describes the exchange of Money for Wealth between a Sovereign government and its people. We presently have the same thing happening in Europe, but here it is also between the Global Banking cartel and the Sovereigns. Whether Regulatory Arbitrage or Financial Repression, it is about the exchange of questionable 'paper' assets for guarantees of cash streams through servitude of labor. Gordon T Long 3/8/2012

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rpt-MMC-2012-03-cb-Peek