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Sunday, June 28, 2015

MY LADIES CHAT UPDATE :"Out With The Old and In With The New" , 28 JUNE

MY LADIES:   GOOD MORNING...THANKS PRINCESS ...I HAVE MY SNEAKERS ON AND AM READY TO CATCH UP TO YOU...LET'S START DIGESTING ALL WE HAVE HERE.

PrincessDD:  I have conflicting articles on Greece taking or NOT taking the Plan B.

Schäuble says Greece default, euro exit looks inevitable

French prime minister takes a different view, urges Greece to resume negotiations  https://www.irishtimes.com/news/world/europe/sch%C3%A4uble-says-greece-default-euro-exit-looks-inevitable-1.2265610

MY LADIES:  WELL PLAN "B" IS CONTOLLING DAMAGE, SO IF GREECE DOES NOT PAY ON TUESDAY THE ENTIRE EUROZONE GOES INTO PAN "B" BY DEFAULT

PrincessDD:  WOW:  Pushed by sanctions, Russia pivots to China                       https://www.japantimes.co.jp/opinion/2015/06/28/commentary/world-commentary/pushed-by-sanctions-russia-pivots-to-china/#.VY_z67zL9z0
....
5:00 AM] Princess DD: <<< The European Central Bank Will Cut Off The Greek Banks Todayhttp://www.forbes.com/sites/timworstall/2015/06/28/the-european-central-bank-will-cut-off-the-greek-banks-today/

MY LADIES:  SO THIS IS WHAT WE'VE BEEN TALKING ABOUT, LET'S LOOK AT THIS CLOSER

THE JOB OF THE ECB;

 For the European Central Bank is only supposed to be offering support to the Greek banks if they are solvent

BUT THEY ARE NOT PAYING THEIR DEBT

and in the absence of a debt deal they’re quite clearly not solvent

SO NOW WHAT HAPPENS??

if the banks are not solvent then they must be bailed out

HOW DOES THAT HAPPEN

And the only way that this can be done is by a return to the drachma.

SUMMARY

in the absence of some major change in the next couple of days Greece is both in default and leaving the euro:

MY LADIES:  NOVA TELLS US THERE HAS NOT BEEN A BANK HOLIDAY SINCE 1929

WELL GUESS WHAT???

1) The European Central Bank is expected to end emergency lending to Greece’s banks on Sunday, the BBC understands.

2) The country’s banks depend on the ECB’s Emergency Liquidity Assistance (ELA). Its governing council is meeting later.

3) Greece will probably have to “ announce a bank holiday on Monday, pending the introduction of capital controls”, a source told the BBC’s Robert Peston.

AND THAT'S NOT ALL..

Here’s how the basic problem works out:

 Greece stands on the brink of a banking collapse and disorderly exit from the euro after its creditor powers lashed out at Athens’ plans to hold a referendum by vowing to pull the plug on the country in just three days.

Eurozone finance ministers last night withdrew tentative plans to release €15bn to the debtor country, after Alexis Tsipras, the Greek prime minister, said he would put the “humiliating” package of austerity demands to a public vote on July 5.

Unless the cash-strapped country can scramble together €1.55bn Tuesday, it will become the first developed country in history to default on its International Monetary Fund loan  on June 30.

On the same day, it’s €240bn rescue programme will also formally expire throwing its banking system into turmoil.

MY LADIES:  ARE WE UNDERSTANDING THE MAGNITUDE OF WHAT IS HAPPENING HERE???

THERE IS A REAL POSSIBILITY OF THE AFTERSHOCKS FROM GREECE SPREADING THROUGH THE EURO ZONE.

WILL THE UNION BE ABLE TO HOLD TOGETHER??? WE JUST DON'T KNOW YET BUT WE WILL SURE BE WATCHING.

AND AGAIN PLEASE REMEMBER THIS IS ALL DESIGNED TO LOOK LIKE DRAMATIC TRAUMA, BUT WE KNOW BETTER DON'T WE??

THERE IS A PLAN IN PLACE THAT HAS BEEN NEEDED FOR A LONG TIME, OUR CURRENT BANKING SYSTEM IS NO LONGER WORKING, WE NEED SOMETHING NEW WITH CHECKS AND BALANCES IN PLACE.

THIS IS ALL WHAT WE'RE WATCHING, THE NEW SYSTEM UNFOLDING AND MANY CORRECTIONS AND DEBT PROBLEMS BEING TAKEN CARE OF.

THE DOLLAR WILL CORRECT ALSO BUT NOT UNTIL THE VERY END, MAYBE MIDDLE OF THE YEAR OF 2016 OR LATER AND A CORRECTION IS NOT A CRASH.

SO WE CONTINUE TO STUDY THIS NEW BANKING SYSTEM WITH EXCITEMENT AND CURIOSITY. EACH AND EVERY COUNTRY WILL HAVE TO BE A PART OF IT. EACH AND EVERY COUNTRY !

PrincessDD:
  So the real plan here is to get each country using their own asset backed currency?  Crashing the old system and getting each country online with the new system and a stable currency?
MY LADIES:   IN A NUT SHELL...
PRINCESSDD:   So Tuesday will be the fall of the whole house of cards possibly and that will start the domino effect we talked about yesterday.

So the EU is planning the exit for all the countries involved or is that the part of the IMF and they are pretending to be trying to save them in some negotiated debt agreement and payments? Im guessing that is just a refinancing of the old debt….Only with some political conditions added to the deal.

MY LADIES:CORRECT, THIS IS ALL JUST RESTRUCTURING...DO YOU REMEMBER ONE OF THE FIRST CALLS NOVA AND I DID OVER AT KTFA??

WE WERE EXPLAINING ALL THIS BACK THEN, WE WERE EXPLAINING THE CHRISTINE LEGARDE HAD BASICALLY  TOLD ALL THESE GOVERNMENTS THEY NEEDED TO FIND A WAY TO FIX THEIR OWN, THEY NEEDED TO NOT RELY ON THE CENTRAL BANKS TO FIX ALL THE BOO BOO'S

SHE BASICALLY TOLD THEM " LOOK, YOU BREAK IT YOU BUY IT "

NOW THAT IS WHAT WE'RE SEEING IS STARTING TO HAPPEN.

PribcessDD: 
 Greek Government Favours Drachma - Won't Bow to Blackmail  (From a couple of weeks ago)     http://www.marketoracle.co.uk/Article50925.html

PrincessDD
:  Its all falling into place.

MY LADIES:
   RIGHT WITH A LITTLE DRAMA SPRINKLED ON TOP...

PrincessDD: Nostalgia for drachma grows as crisis continues in Greece (They seem to be rallying for it)

Those in favour of returning to the drachma on the risehttps://www.irishtimes.com/business/economy/nostalgia-for-drachma-grows-as-crisis-continues-in-greece-1.2262530

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PrincessDD:  Last month in May, A town in Ireland started using their punt currency again.http://www.telegraph.co.uk/finance/financialcrisis/9294385/Irish-town-returns-to-the-punt.html

MY  LADIES:  SEE LOOK HERE PRINCESS, THIS TOWN IN IRELAND IS BRINGING THEIR CURRENCY BACK TOO.

THERE IS A REFERANDUM COMING IN THE UK NEXT WEEK ALSO TO DECIDE WHETHER TO STAY OR TO LEAVE THE EURO... WE LOOK AT THE ARTICLE YESTERDAY REMEBER??

As Irish voters go to the polls to say yes or no to more EU control over the country's finances, one town has resurrected the punt as a way of boosting trade.
PrincessDD:  Lots of trading in the UK with the Renmimbi Yuan too.http://www.telegraph.co.uk/finance/china-business/11699296/Renminbi-trading-in-the-UK-is-booming-and-the-Government-loves-it.html

MY LADIES:  [5:37 AM] Princess DD: <<< Running Out of Cash, Greece Counts on ECB to Avert Black Monday     http://www.bloomberg.com/news/articles/2015-06-28/running-out-of-cash-greece-counts-on-ecb-to-avert-black-monday

Greek Finance Minister Yanis Varoufakis said he’s opposed to the “very concept” of capital controls, though he told the BBC that the stability of the banking system was a “matter we will have to work overnight on.”

MY LADIES: SO I GUESS HE'S STILL LOOKING IN THAT HAT FOR ONE LAST RABBIT!

“Monday could be a bank holiday” in Greece, Irish Finance Minister Michael Noonan said late Saturday. “ It’s not a question of waiting to see what might happen on Monday in terms of crisis. The crisis has commenced .”

MY LADIES:
 RIGHT THE CRISIS IS HERE AND NOW...SO WHAT IS THE NEXT STEP TO KEEP THE CALM
....
Two senior Greek bank executives said as many as 500 of the country’s more than 7,000 ATMs had run out of cash as of Saturday morning, and that  some lenders may not be able to open on Monday unless there was an emergency liquidity injection from the Bank of Greece.

Bank of Greece Governor Yannis Stournaras said in a statement Sunday the central bank would “take all measures necessary to ensure financial stability” in the country.

MY LADIES:  AT THIS POINT I'M NOT SURE WHAT MEASURES THEY'RE TALKING ABOUT

OH NOOOOOO IT JUST KEEPS UNRAVELING...SEE WHAT HAPPENS WHEN YOU PULL THE THREAD???

An official with Greece’s Capital Markets Commission, the markets’ regulator, also warned that  the Athens Stock Exchange may be unable to operate on Monday without a cash injection into the banking system. A Greek central bank spokesman said it was making efforts to supply money.

MY LADIES: THERE WILL BE AFTER SHOCKS ...NO DOUBT ABOUT IT

NOVA ARE YOU GETTING ALL THIS???  I MEAN  ALLLLLL THIS???

PrincessDD:  Spaniards continue to hold on to peseta   http://spanishnewstoday.com/spaniards-continue-to-hold-on-to-peseta-fortunes_21710-a.html#.VY__3bzL9z0

MY LADIES:  VERY GOOD WORK PRINCESS, HERE WE SEE SPAIN STILL HOLDING ONTO THEIR CURRENCY

PrincessDD:
  Yes I have a friend in Spain and we were just looking at it last night.

************

Chatter:
  Greece Standing Strong On The Shoulders Of Russia & China, Plus The Road To $19,000 Gold http://kingworldnews.com/greece-standing-strong-on-the-shoulders-of-russia-china-and-the-road-to-19000-gold/

MY LADIES:
  NOW THIS PARTICULAR PUBLICATION IS VERY SLANTED AND NOT MY USUAL READ BUT I WANT TO LOOK AT IT TODAY BECAUSE WHILE THEY ARE SLANTED THEY HAVE SOME  EXCELLENT POINTS IN HERE. THANKS CHATTER FOR BRINGING IT IN.

SO LET'S HAVE A LOOK, WE TALKED LAST NIGHT ABOUT GREECE JOINING BRICS RIGHT??

SO WHAT DO WE SEE TODAY...

Greece Standing Strong On The Shoulders Of Russia And China

Well, Greece does have a lot of leverage because they are looking to the East to China and Russia, both of whom have been making overtures to Greece.

China already owns 1/3 of a Greek port and they want to buy a full 100 percent stake in that key port.  The Chinese will then send trains through Greece, up to Budapest and to Germany.

And Russia has already offered Greece a spot with the BRICS Bank.  Russia has also said they will build a gas pipeline through Greece, which will go to the rest of Europe.

The bottom line is there is an inevitability of monetary hegemony and economic hegemony by the East, in which China will play the lead role, and an inevitability to a gold standard.

This is one of the reasons why  Greece does not mind becoming independent because they know they can become part of a currency that is backed by gold .

MY LADIES:  SO THERE ARE BETTER OPTIONS FOR GREECE IN THE FUTURE FOR SURE. SOMETIMES THE GRASS REALLY IS GREENER ON THE OTHER SIDE OF THE FENCE.

**************

MY LADIES:  OK I JUST GOT OFF THE PHONE WITH HXXXXXX,

DO WE WANT TO HAVE A GOSSIP SESSION WHILE WE LOOK INTO MY CRYSTAL BALL??

SO HXXXXXXX IS IN THE WORLD OF HIGH FINANCE ALL THE TIME AND HE HAD 3 VERY GOOD CONVERSATIONS YESTERDAY.

SO YESTERDAY WE TALKED ABOUT WHAT WILL HAPPEN IF THE EURO ZONE STARTS TO CRUMBLE RIGHT???

SO AS PEOPLE ARE UNRAVELING OUT OF THE EURO WHERE WILL THEY GO???

SO ANYBODY...WHERE WILL EVERYONE COMING OUT OF THE EURO PUT THEIR MONEY????

BRO: 
 The dollar.

MY LADIES:
  VERY GOOD BRO….WORK WITH ME PEOPLE PLEASE....SO WHAT WILL HAPPEN TO THE DOLLAR????

BRO:  Go higher.  Really fast.

MY LADIES:  EXACTLY BRO..AND THEN WHAT WILL HAVE TO HAPPEN????

PrincessDD:  In their own currency……dollar will tank… It will reprice next year as you said yesterday

MY LADIES:  YES PRINCESS BUT HOW, HOW WILL THE PRESSURE HAVE TO COME OFF THE DOLLAR VERY VERY FAST???

BRO: It will go south quick.

MY LADIES:
  YES THAT IS CORRECT BUT LONG BEFORE THAT WHAT WILL HAVE TO HAPPEN IS WE WILL SEE THE FED MAKE AN ANNOUNCEMENT SAYING WHAT???

PrincessDD:  That the EURO has caused a plunge in the USD

MY LADIES:  RIGHT PRINCESS INDEIRECTLY AND OVER SOME TIME

12d:  spike in interest rates?

MY LADIES:   I 2 D THAT'S RIGHT... IT ALL GOES TO HELL IN A HAND BASKET.

Dale:  I think the derivatives market will play a big part in all of this restructuring…w Greece defaulting, it should create a situation that causes the derivatives market to explode and crash…thus leaving us with a new banking system that is no long hampered by Trillions in derivatives…finally our own banking system will be solvent and not in jeopardy of bail in’s…thats my take

MY LADIES:
  VERY GOOD DALE YOU GET THE CONDUCTORS HAT TODAY!!

MY LADIES:  SO WHERE IS THIS TRAIN GOING NOW...

PrincessDD:
  Its going to smash into another train on Tuesday

BRO:  Currencies must be asset back.
MY LADIES:  SO IF THERE IS A BANK HOLIDAY ON MONDAY...WE WILL SEE OVERFLOW HERE VERY, VERY FAST…IF THERE IS A BANK HOLIDAY TOMORROW THE INTEGRITY OF THE WHOLE EURO ZONE WILL SHAKE.

Dale:my great fears of leaving money in FED banks is going to dissipate once this new system is in place and derivatives are crushed and gone from our lexicon

MY LADIES:
  DALE THAT IS ALL THE PLAN... AND WE ARE WATCHING IT HAPPEN NOW… WE ARE SEEING IT FROM AFAR..AND THE AFTERSHOCKS WILL AFFECT US IN A BIG WAY

BRO:  It's going to hit the fan.

PrincessDD:  Yea Tuesday will be National SHTF Day! New Holiday. (chuckle)

MY LADIES: 
 NOW OUR BANKS ARE READY FOR THIS TOO, THEY ARE GOING ALONG FOR THE RIDE, THEY KNOW WHAT'S COMING AND THEY ARE READY...SO WE WILL FEEL SOME SHOCKS ….IT WILL NOT BE ANYTHING LIKE WHAT THE EURO ZONE WILL BE GOING THROUGH

PrincessDD:
  So is this something that would start tonight when the Forex markets start opening with a gradual splat by Tuesday/Wednesday?

MY LADIES:
  ACTUALLY NO PRINCESS THIS WE WILL SEE TOMORROW WHEN GREECE FAILS TO OPEN

DALE: I believe the derivatives meltdown has already begun…since June 4 when Greece could not pay the IMF a payment it owed…Deutsche bank is in deep trouble right now…as is Chase

LM:  I heard the same thing- June 4th and Deutchebank is already melting down, and yes, JPM next...

MY LADIES: 
 THAT'S RIGHT DALE THIS IS WHY WE HAVE BEEN STUDYING WHAT'S HAPPENING WITH GREECE, BECAUSE THEY ARE THE JUMPING OFF POINT FOR EVERYTHING ELSE.

WE KNEW THE DERIVATIVES MARKET NEEDED TO CORRECT AND WE NOW KNOW HOW THAT ALL STARTED

Dale:
  and the bottom line: An asset backed currency cannot coexist along side a fiat currency.

MY LADIES:  EXACTLY DALE!!

LM: 
 The old system is going away and the new one coming in - whether Greece defaults or not, it’s just a question of how soon, because the derivatives have already started melting...

MY LADIES: 
 I'M TALKING ABOUT THE INFLUX OF TRADES INTO THE DOLLAR AFTER THE EUROZONE STARTS UNRAVELING

FH:  No question about that influx of the  $, and that will cause the rapid rise and the subsequent exhaustion to drop rapidly!   The end will coincide with a bottom in gold!

Dale:  should cause the USD to go up…while gold will see a modest drop, IMO

MY LADIES:
  YES I AGREE WITH BOTH OF YOU

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