Posted on 12/09/2011 7:25:03 AM PST by tcrlaf
Confused why Tim Geithner has seemingly booked a weekly round trip ticket to Brussels to give the Eurocrats their weekly pep talk (much to his endless humiliation as Europe Tells Geithner To Take His Advice And Shove It reminds us)?
Art Cashin explains not only this, but why the biggest threat to Obama's reelection chances is not who the GOP candidate is in November, but what happens in the EURUSD as early as today. L
astly, by implication, Cashin shoots down any hope that US decoupling from Europe is even remotely possible... something anyone who actually has seen a full business cycle, which automatically excludes 90% of all traders today, will know too well.
From Art Cashin
Wrong Solution. Wrong Time - Markets are celebrating (mildly) the Euro Summit “agreement”. We suspect Tim Geithner and the President are banging their heads against the wall.
The Euro leaders continue to plan and plot toward long range solutions, but they lack a crisis plan. In essence, they don’t have a fire department. If markets in the sovereign debt or European banks began to spiral out of control, they have no structure to deal with it.
We think the President is terrified, since - if Europe goes, it’s likely he goes too. The biggest threat to his re-election may be completely out of his control. Could be an interesting weekend at the White House.
I don't think he's terrified at all.
“If Europe tanks, he’s screwed...”
Of course, real Americans will be screwed even worse. FUBO has his golden parachute. He’ll write a book, do some speaking tours and retire somewhere with his millions. He doesn’t care about the people any more than any other despotic African dictator.
Cashin is very smart - been around the block more than a few times - knows where all the bodies are buried. I always take his comments seriously - especially his Friday comments about “marinating a few ice cubes” over the weekend.
He’s too freaking clueless about economics to be terrified. His response is probably, “Do you think it will help if I make a soaring speech?”
and judging by the massive bomb PM Cameron lobbed at the EU last night, Obama probably just browned his pants last night.
You could be right. He could be busy thinking about having a double scoop cone after his next round of golf in Hawaii.
Yep. Cashin is one of the best. He is one of the best at judging the trading sentiment at NYSE.
Never underestimate a marxist’s desire to stave off a European collapse with a combined American-European collapse.
Besides, the marxist’s vision for our utopia is a European-style democratic-socialist state (with heaviest emphasis on the socialistic). Don’t look too good if the model he is trying to emulate collapses while he is trying to mimic it.
Obama is looking to cut a tax budget deal by june july.
This will give him momentum for the election.
europe has to be stable to stabalize markets.
republicans are too stupid to get it.
——I don’t think he’s terrified at all.——
Au contraire mi Amigo, Frog-mex lingo there, the events are piling up and writing is appearing on the wall. He is thin skinned and yesterday they got to him.
When he learned the coupling of the pipeline to the tax break he rushed to the press room and angrily threatned to veto. It was the rash action of a 4 year old blurting “ I won’t ‘vite you to my birfday!”
Who is going to pay to hear his ideas on anything? Those speeches are not given to union thugs and welfare leeches and any speech to Occupiers had better be free to them, as well.
He’ll write a book, as will she and the unions and NGOs will buy them and put them in the basement to use as insulation against a nuke attack.
He is disliked in the Arab world. The Europeans blame him for the financial crisis. The Chinese think he is a bad joke. It seems doubtful he could even land a job at the UN unless they have a Directorate of Party Planning. IMF? World Bank? He lacks the creds. Best he can do is to start up his own foundation and hope that his sugar daddies find some reason to keep him in golf balls.
Actually, “decoupling” could be an excellent plan if done properly, and could strongly stabilize markets.
Right now, all the discussion is about the collapse of the Euro, or the partial collapse of the Euro, and the relation of the Euro to the USD.
Instead of diminishing the Euro, the best bet would to create a new, institutional currency, that would allow temporary Euro decoupling, while preserving economic unity.
This new currency, call it “E2”, would be a tightly controlled, “ECB-only issued”, currency for use by nations and financial institutions.
Since it is a controlled currency, its value and price are set by the ECB. Inflation and deflation do not apply.
The real value of the E2 is that creating it would invoke the extremely powerful currency laws that exist in economics, especially “Gresham’s law”, which can be set as “bad money pushes out good.”
In practical terms, this would mean that all European nations and financial institutions would want E2s, and to spend Euros. There would be a great easing of credit, as well as Euro inflation, which would take a lot of pressure off the debtor nations.
Decoupling of troublesome nations would be easier, because they would only be allowed a proportional amount of E2s. If they spent those, they would no longer have any money to spend, and loans, if any, of E2s could only be given by the ECB, based on 100% collateral by the debtor nation.
So austerity would not be voluntary.
It has always been my hope that when, not if, TSHTF, it would be on obama’s watch. If he should be defeated in November and the Republicans are on duty then, they will be nailed on a Hoover cross for the next generation.
We all know it is coming, just pray it is before election.
That's an insult to all despotic African dictators.
The EU will announce the framework for a new agreement today and everyone will be happy (Temporarily). Britain has opted out as they don’t want to sail with the Titantic. Down the road as individual EU countries vote on the new agreement it will be defeated and the Euro and EU will be history as they fall into a new Recession.
I disagree. Obama wants the collapse, and hopes it spread to the USA. Then he can organize riots in every major city and declare Martial Law. This is how a Marxist takes over.
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