Testing Negative

The historic move by the European Central Bank and why EuroTrash fags stand to be fucked over and over again.  So fucked that it would make a gangbang and FF orgy in Berlin's underground gay sleaze bars look like a church prayer meeting........that's why the Germans are angry..........they just lost their title as the Group Fuck Capital of Europe.

Not only are EuroTrash fags about to be fucked - and the Germans absolutely furious with the ECB because as Europe's strongest economy, they'll carry most of the financial burden of the ECB's historic move (see below),  but this time it's white against white.

Looks like "sorry it's just a preference" just went out the window.....or got a new Euro-hate filled meaning.


1.   The Grand European Tour Fuck Up

OK....let's start with this:  Europe - specifically the Eurozone -  is swimming in debt, their economies (with perhaps the exception of Scandinavia) suck, there is rising unemployment, increasing taxes, a real threat of deflation, some bank lending but not enough, there are a ton of financial derivatives with counterparty risk which nobody wants to talk about (in other words, A owes B owes C cash if something happens - and it will.  Problem is A, B and C each know that neither they nor the others have the cash and are just hoping that nothing happens).

Something has to be done to kickstart lending and the Eurozone economies AND TO PROTECT THE BANKS (Forget about protecting the average white Eurotrash. In the scheme of things, he's pretty low in the food chain). But what...??


2.   What To Do...?

1.   Quantitative Easing - which is essentially the European Central Bank ejaculating Euros all over the place.  Like the US, all that freshly minted electronic cash (created out of thin air) has gone into artificially induced "asset" bubbles like the stock markets, luxury retail brands like Bugatti, Ferrari and Maserati and curiously overpriced real estate (snapped up by Chinese - money laundering - buyers in cash). The average (white) guy has not benefited from this unless he was a luxury car salesman, or a realtor selling vineyards, European castles or villas in Provence to slant eyed buyers falling out of an Air China flight.

2.   Hike taxes  - and introduce new ones in an attempt to induce Inflation (actually.....the higher taxes are intended to compensate the banks for the Moral Hazard they took in lousy loans and derivatives; or as part of a repayment deal to get new loans from the friendly IMF.....but shhhhh......you're not supposed to know that....). The average EuroTrash got screwed there too because his taxes went up and his wages stagnated or fell - or he lost his job. Ask the Portuguese, the Spanish, the French and the Greeks just how successful that was.

3.   Protect the banks via Deposit Confiscation i.e. the Cyprus Template where a bank in financial trouble (i.e. loans that can't be repaid or as is more likely, derivatives that blow up in its face) goes after its own depositors and simply confiscates the excess above a certain amount to cover its losses.  In Cyprus, those customers with more than 100,000 Euros had the excess confiscated and were essentially wiped out. (Yeah, yeah.....they were given shares in the bank in lieu, but try buying your groceries or paying your utility bills with a share certificate from an insolvent bank and see how far you get). The Cyprus Template has been formalized as a mechanism that will be imposed on the Eurozone (as well as UK, USA, Canada, Australia and New Zealand) if necessary.

4.   Really low interest rates - that were intended to get the banks to lend and people to borrow. It didn't work.


3.   Presenting.....**drum roll**

5.   Negative Interest Rates - TaaDaaah...!!! That's where YOU pay the bank to hold your deposit instead of them paying you interest.  This was the historic move the other day by the European Central Bank that pissed off the Germans because they have the highest savings rate in Europe.  Just to be clear, at the moment it only applies to banks holding deposits at the ECB.  It has not yet been imposed on the individual customers and businesses of the banks.......

But it will......

1.  Even though the Negative Interest Rate is Minus 0.1%, you seriously expect banks to swallow that without passing it on to their customers...??  Right now, the Eurozone is flirting with Deflation.  That's where prices of goods, services, salaries, plus the stock market and real estate and other assets drop.  The banks and politicians are terrified of this because this will cause social unrest.  But guess what...? So will inflation.  At least with Deflation or Inflation, the law of Creative Destruction kicks in and Nature resets into equilibrium.  But now, these assholes are trying to induce Inflation.  What gives them the right to think they can control that as well..?  Truth is they can control neither Deflation nor Inflation.  The bankers and politicians are caught between a rock and a hard place.

2.  Take a look at the really big picture and potential Negative Interest Rates on the Eurozone customer are entirely consistent with the engineered destruction of the Middle Class now vividly underway in the US. In other words, Poverty By Stealth is one of the most dangerous things that can happen to an individual.  It is being controlled by bureaucrats and bankers - and most people are completely unaware of it or its consequences until it's too late.


4.   Comment

The problem in the Eurozone is one of insolvency  - not the liquidity problem that it is being presented as.  We cannot see how massive debt can be fixed by creating more debt and then potentially penalizing savers by way of Negative Interest (i.e. in order to get them to spend the money rather than save it) and then Cyprus-style deposit confiscation of those savings (if the bank goes belly up).

Can you SEE the absurdity...??  On the one hand, it is claimed that the Eurozone banks are hunky-dory and have passed the financial "stress" tests and have strong Balance Sheets which means they need to get that money out, start lending to kick start Inflation and get the economy going.  So to encourage that, they impose Negative Interest on the money already on deposit. On the other hand, if the Eurozone banks are actually insolvent, they grab their customers deposits to protect themselves first. Savers and pension funds are screwed.

The only way out is to shatter the debt - either through massive restructuring, or forced liquidation of the most insolvent banks, a clear partition between investment banking and retail banking - or a debt forgiveness programme at all levels.  Good luck finding somebody with the balls to do any one of those.

For the record FuelMix is not an investment consultant or a financial planner. He just looks at the facts, shakes his pretty head and thinks, "Is it even possible to tell fags in simple terms just what is actually going down in the Eurozone by way of financial and social manipulation.....or are their heads still stuck in the After-Party in Ibiza...??"

We tried.


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