Goldman Sachs has Taken Over

[autorank]

GOLDMAN SACHS HAS TAKEN OVER By Paul Craig Roberts



On November 25, two days after a failed German government bond auction in which Germany was unable to sell 35% of its offerings of 10-year bonds, the German finance minister, Wolfgang Schaeuble said that Germany might retreat from its demands that the private banks that hold the troubled sovereign debt from Greece, Italy, and Spain must accept part of the cost of their bailout by writing off some of the debt. The private banks want to avoid any losses either by forcing the Greek, Italian, and Spanish governments to make good on the bonds by imposing extreme austerity on their citizens, or by having the European Central Bank print euros with which to buy the sovereign debt from the private banks. Printing money to make good on debt is contrary to the ECB’s charter and especially frightens Germans, because of the Weimar experience with hyperinflation.

Obviously, the German government got the message from the orchestrated failed bond auction. As I wrote at the time, there is no reason for Germany, with its relatively low debt to GDP ratio compared to the troubled countries, not to be able to sell its bonds. If Germany’s creditworthiness is in doubt, how can Germany be expected to bail out other countries? Evidence that Germany’s failed bond auction was orchestrated is provided by troubled Italy’s successful bond auction two days later.

Strange, isn’t it. Italy, the largest EU country that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no bailout and which is expected to bear a disproportionate cost of Italy’s, Greece’s and Spain’s bailout, could not sell its bonds.

In my opinion, the failed German bond auction was orchestrated by the US Treasury, by the European Central Bank and EU authorities, and by the private banks that own the troubled sovereign debt.


More: http://www.themoneyparty.org/main/?p=3134

[banned from Kos]

1. Oh, for crying out loud. This is nuts

"In my opinion, the failed German bond auction was orchestrated by the US Treasury"

Time to forget PCR as a credible source.

[Huey P. Long]

2. occupy. -eom

[Demeter]

3. Ignore This Man at Your Peril

He's not wrong.

[Huey P. Long]

4. Goldman Sachs rule the World

Finacial Guru and Banker Alessio Rastani who shocked the media & public earlier this year by claiming that Goldman Sachs rule the World speaking at the Bank of Ideas an emty bank building occupied by Occupy London.

http://www.youtube.com/watch?v=SpsszJbsM8E&feature=player_embedded#

[avaistheone1]

5. The Bush admin was run by Enron and oil. The Obama admin is run by Goldman Sux and the Wall Street

bankers.

[truedelphi]

6. Great article. K & R. Interesting thing I heard -

Iheard that Merkle was threatened with an attempt on her life shortly after she issued a statement to the effect that Germany was backing away from nuclear energy.

So it is scary to realize that not only does the Powers that Be pick people to lead a nation, but the second they deviate from what they are "supposed" to do, they are reminded to behave.

[Kaleko]

7. Why the boycott of German bonds looks so suspicious:

A comment from Paul Craig Roberts explains why.

http://www.opednews.com/articles/Goldman-Sachs-Has-Taken-Ov-by-paul-craig-roberts-111125-820.html

bond auction

The auction sets the rate.
Those who offer the best bids are satisfied first, and those who offer the lowest prices for the bonds come last.
An auction fails when there are not enough bids to take all the bonds. In the US the Federal Reserve takes what is left to prevent auction failure. However, the German central bank cannot print euros with which to buy the non-bid share. So failures can be orchestrated by the bidding parties.

But, let's see, investors won't buy German bonds at negative interest rates, but they will buy US bonds at negative interest rates.

That last sentence should make everyone go hmmm?. An odd discrepancy, indeed.

[Kaleko]

8. kick for more eyballs

[Ghost Dog]

9. It's obvious: Italian bonds pay 7%; German bonds only 2%.

Any questions?

[Kaleko]

13. Italian bonds yield over 8% right now because

they are considered dangerous bets since Italy is teetering on the edge of default.

German bonds yields are lower because there is a much lower risk of default.

http://www.ft.com/cms/s/0/07079856-1754-11e1-b20e-00144feabdc0.html#axzz1exa97FmL

[Ghost Dog]

14. The only way 'bond vigilantes' won't get paid here is if they insist on charging usurious

rates for their loans, therefore either shooting themselves in the feet because they've gone mad with addiction to greed, or because they calculate they can somehow gain more by switching to 'vulture fund' mode, picking over the remains of deliberately and artificially bankrupted major developed-world economies.

[lib2DaBone]

10. Anyone notice that Goldman Sachs was installed as new PM in Italy?

[WildNovember]

15. edit due to my misreading.

[woo me with science]

11. K&R nt

[stevedeshazer]

12. +1, skeptics beware.

autorank is freaking autorank.

Been following his journey a long time. He knows.

[Norrin Radd]

16. Looks like it:

[blindpig]

17. k&r