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    When a kid believes a monster is hiding under the bed or hiding in the closet, the Duvet is your friend. As long as you cannot see the monster, you are safe. Just stay under the Duvet and all will be well.

    When the UK left the EU it had to be made to suffer lest the natives get restless, and preferably to the extent that some of the UK’s banking experts might decamp to Frankfurt. Well, there’s noting like a good deep moat to keep you safe ….

    “Despite the shrinkage of ECB bond-buying, Lagarde made it clear that the fiscal spice must flow:”
    “The most notable proposal is to exempt “green” investments from calculations of deficit and debt limits and temporarily forgetting existing rules that say debt must be cut every year, Reuters reported citing documents prepared for the ministers’ talks showed.”

    “In other words, the EU will use the “green” strawman of fighting climate change as a loophole to issue debt over and above the EU’s self-imposed ceilings.”

    “The EU’s €800 billion recovery fund, which will provide cash for all 27 members of the bloc until 2026 for green investment, digitalisation and research and development, will help offset any planned fiscal consolidation, Bruegel said. But to make the “green” transformation a reality, EU budget rules will also have to be applied with maximum flexibility, it said meaning Europe will need much more debt capacity, debt which will be largely monetized by the ECB. Bruegel recommended that the EU forget its rule that every country must cut public debt by 1/20th of the excess above 60% of GDP every year, because with debt so high it is unrealistic. In short, the original budget rules that shaped the EU are now dead.”

    I’ll suggest that at this point only the Euro is holding the EU together.

    BTW - I have never worked for Reuters.

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    Pretty grim. We all know the script and we are just watching it play out. This is painful!

    Politicians lie when their lips move. The media never let the facts get in the way of a good story. They provide the paint for the picture-perfect masterpiece that you will paint on the insides of your eyelids. Gilbert Ling & Harold Hillman were right.

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    How did you go bankrupt?
    Slowly at first, then suddenly.

    “If the U.S. does not raise the debt ceiling, it will eventually default on its obligations, including U.S. Treasury bonds. But bond yields have been falling despite the risk. At issue is the proposed $3.5 trillion infrastructure bill proposed by Congressional Democrats. McConnell went on to say that “[the Democrats] have the ability and the responsibility to ensure that the federal government not default”. The implication is that, unless the Democrats table the spending bill, Republicans will refuse to raise the debt ceiling. That’s likely to result in a game of chicken. Unless one side relents, a government shutdown is in the cards, and, potentially a U.S. debt default.”

    “Systemically Important” and “Contagion” will be making the rounds soon.

    BTW - I have never worked for Reuters.

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    Watch the latest Keiser report and listen to what Mike Pento says!

    This world is NOT my home!
    I'm just a passing thru

    UK Column Lifetime Membership

    Watch the latest Keiser report and listen to what Mike Pento says!

    I’m left wondering which part of the current abnormality is accidental.
    Powell has made it clear he is in the MAGA camp, so the ECB is likely to be the patsy at this poker game.
    But maybe the rumour of massive vaults under the runway at Zurich Airport and filled with gold are true.

    Also, that volcano at La Palma looks to be very twitchy …

    BTW - I have never worked for Reuters.

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