Europe Redefines ‘Stress’

[Raúl Ilargi Meijer]

Dorothea Lange Resettlement project, Bosque Farms, New Mexico Dec 1935 The EU and ECB claim they conducts their stress tests and Asset Quality Reviews
[See the full post at: Europe Redefines ‘Stress’]

[christiangustafson]

Everything is fine! Nothing at all to worry about.

[John Day]

Hey Christiangustafsen,
How did you get that nice picture to show up?
I want to do that, too.
😮
John

[V. Arnold]

Testing…
Attempt at adding avatar, fail.

[william]

I am venturing a guess but I am thinking that the shift in China’s thinking causing oil to drop is the start of a second drop. I believe that this should be a significant drop in the markets and if so it should be possible to perdict drops from here on.

My thinking is that we are in a resource war. We sit on the declining end of a bell curve. If this is the case then with accuracy will grow with each correction of the market.

[₿oogaloo]

Replying to khiori’s last comment from Debt Rattle 10-23 asking why only bloggers are talking about a currency reset …

First of all, it’s not just bloggers. Steve Keen came out very openly advocating a debt jubilee. Jim Rickards has long been predicting that there will be a coordinated revaluation of gold, perhaps in connection with increased use of SDRs. Paul Brodsky wrote quite a bit on the subject while he was at QBAMCO.

Second, the suggestion that a revaluation is “something the rich people might try to fight against”: I think there are different kinds of rich people. There are the nouveau rich banking elite from Wall Street who rely on leverage and financial engineering and who spend a lot of money for political influence to keep the game going. This group will definitely fight against any revaluation. However, there are other rich people who just want a reliable and stable savings vehicle, along with social and political stability, and who recognize that the current financial system has grown unstable. I think not all rich people have the high risk casino mindset of the politically connected bankers.

I agree with you that the powers that be will not be proactive. They will wait until the next crisis forces a change. That may take a long long time. When it finally happens, however, I think it will be done secretly and suddenly. There will be a bank holiday one Friday afternoon that affects the whole world.

[XYZ]

Hello,

When people here speak of “a coordinated revaluation of gold”, I understand you mean a devaluation of currencies with respect to gold, ex. gold suddenly being worth 2500 USD and not 1200 USD.

Is that correct?

Thanks,
XYZ

[₿oogaloo]

XYZ, yes, exactly. A revaluation, as in a sudden overnight jump (as distinguished from trading up to a new, higher position). It could happen as part of a coordinated move — meaning a conscious policy choice from a Bretton Woods-type multi-lateral summit. This is a scenario Rickards and Brodsky see happening. But theoretically it could also happen in a chaotic and uncoordinated way, such as if one of the bullion banks failed to make delivery and the physical gold market froze up. In today’s slow-moving environment the latter seems unlikely, but if a crisis were to return, things might change very quickly.

[NooBoob]

Is it because Euro banks love lending to China?
China has used 6.6 gigatons of cement in the last 3 years
compared to 4.5 gigatons the USA has used in 100 years.
China’s banks created $24 trillion in debt since 2001.
China’s banks created $15 trillion in debt over 5 years.
It took all U.S. commercial banks 100 years to create $15 trillion in debt.
It took the whole U.S. economy 100 years to grow to $15 trillion GDP.
China has created the biggest financial bubble in human history.
This may be the big one and last one.

[Author]

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