Links December 19th


  • MSM figures out big banks are criminal enterprises The Big Picture
  • Cyprus gives warning of going insolvent NZweek

North America:


  • Spanish PM defends 1st year of austerity as protestors hit streets Washington Post
  • The eurozone growth problem The Economist
  • Draghi’s introductory statement at Committee on Economic and Monetary Affairs ECB
  • SNB opens branch in Singapore to better defend cap TD Waterhouse
  • Draghi predicts ECB policy will foster Euro-are recovery Bloomberg
  • Sweden lowers interest rate to 1% Irish Times
  • Struggle mount for Greeks as Economy faces winter WSJ


  • BoJ mulls 2% inflation target as Abe turns up heat Reuters
  • IMF economists see perils in China’s investment binge Japan Times
  • Economy key issue in Sth Korea elections Al Jazeera
  • Tokyo electric shares soar on reactor restart hopes Japan Times
  • Nth Korea may see few buyers despite rocker success AP


  • RBA’s Stevens warns of growth gap AFR , full transcript here
  • Qld looks into major IR changes AFR , but NSW says no.
  • Uranium opportunity ‘at risk’, says secret report The Oz
  • Solar panel breaks may be cut again AFR
  • China puts foot down over Huawei AFR


  • High-tech classrooms reviving aboriginal languages France 24


    • What could possibly go wrong in a housing market where the Fed is buying $45B of RMBS every month?

      Assuming my button pressing is accurate that is about 300,000 mortgages of $150,000 EVERY month. That is a lot of paperwork and a lot of mortgages – keep in mind they having buying at this rate for years.

      Who is doing the ‘bank manager’ routine for all of these mortgages?

      How can the Fed be sure that they are not being sold a lemon? After all selling over priced rubbish to government departments is as old as Rome.

      Without the Fed’s massive intervention one wonders what the appetite would be for ‘investment’ in US housing.

      Why haven’t we thought of this to ensure ‘confidence’ in the enduring value of Australian Real Estate!

      • “Why haven’t we thought of this to ensure ‘confidence’ in the enduring value of Australian Real Estate!”

        I thought we had? The AOFM, as I understand it, is still alive and well. Mind you its web site providing information to the public as to its activities is close to dead!

      • Oh what we were doing was very different.

        Those AOFM investments in RMBS were simply about ensuring ‘liquidity’ and keeping the non-bank sector afloat so they could continue to provide ‘competition’ for the banks.

        Though judging from the news yesterday perhaps it was simply keeping them ‘fresh’ and viable as a distribution channel to be acquired by the banks in due course.

      • GunnamattaMEMBER

        ‘could continue to provide ‘competition’ for the banks.’

        Well noted, Sir

        In the same way that 10 stone Mr puniverse entrant may provide some sparring opportunities for the Heavyweight Champeen.

        It would seem from yesterdays news that the lead Mr Puniverse has outsourced the sparring function to the Heavyweight Champeen, which would mean the Heavyweight Champeen is now sparring with themselves.

        That starts to make the Australian mortgage world look suspiciously what EP Thomson may have referred to as a ritualistic form of psychic masturbation…

      • “Those AOFM investments in RMBS were simply about ensuring ‘liquidity’ and keeping the non-bank sector afloat so they could continue to provide ‘competition’ for the banks.”

        Was that meant to be sarcastic?

  1. The pollies should have the Big Picture piece printed, rolled up and slapped on their face 1000 times until they take a break from sending lurid txt messages to read it.

    Too big to fail is just too big to jail. Community benefit from the large oligopolies is nil.

    • +1.

      Moreover …

      Community benefit from the large oligopolies is nil.

      … any alleged “community benefit” that might be cited in defence of the bankstering status quo can be debunked with ease merely by noting the obvious – that such inane arguments overlook the fact that, contrary to the core assumption implied in such arguments, it is NOT a given that any such alleged “community benefit” cannot be provided via other means; means that do not include the parasitic, creeping transfer of real assets from wider populace to bankster over multi-decadal timeframes, via so-called “cyclical” “boom-bust” events / deliberately-engineered economic instabilities, as oft-demonstrated throughout the history of banking and in particular, “central” banking.

  2. GunnamattaMEMBER

    You guys spotted this?

    ‘Reserve Bank of Australia governor Glenn Stevens says he does not subscribe to the concerns of some international investors about the threat of a local property market crash but warns the nation would be “flirting with danger” if prices surged strongly.

    Mr Stevens said, compared with a range of other countries – not just the United States – it was hard to make a case that house prices were “grossly overpriced and due for a crash”.

    He said the ratio of house prices to incomes had held at about current levels for a decade.

    It’s “taking a long time to burst if it is a bubble,” he said in an exclusive interview with The Australian Financial Review.’

    • And there you have it, ladies and gentlement. If prices do not decline for a decade, it’s not a bubble.

      Genuflect, mere mortal, and hail the genius of our leading central bankster.

  3. Climate: Arctic Thermostat Blows Up

    The Arctic thermostat for the world is broken, with record heat & emissions in 2012. Four speakers from Arctic Methane Emergency group film: Peter Wadhams, James Hansen, Natalia Shakhova, and David Wasdell. Plus interview with AMEG member Paul Beckwith from University of Ottawa. How polar ice-melt derails climate of Northern Hemisphere, heading for uncontrollable heating. Radio Ecoshock 121219 1 hour.

    Download/listen 14MB