KTFA:
Bernice: Frank....so is this what we want....with everything going down?
Frank26: At this stroke in the swim .......... Yours is a difficult question to answer.
Have You ever played pick up sticks?
Tell me ........... How do You decide on the one to pick up first?
The answer may seen rather abstract ......... But so is this LAVA FLOW.
Try not to predict .... Anticipate nor guesstimate anything in this MR . Simply carefully analyze and comprehend what ........ Is Given.
Enjoy The Ride and may we mature into righteous........ Note:
....
Bernice: Frank....so is this what we want....with everything going down?
Frank26: At this stroke in the swim .......... Yours is a difficult question to answer.
Have You ever played pick up sticks?
Tell me ........... How do You decide on the one to pick up first?
The answer may seen rather abstract ......... But so is this LAVA FLOW.
Try not to predict .... Anticipate nor guesstimate anything in this MR . Simply carefully analyze and comprehend what ........ Is Given.
Enjoy The Ride and may we mature into righteous........ Note:
....
It has been 2000 years but tonight at W to NW just after sunset Venus and Jupiter will merge to form........ The Star of Bethlehem.
Fascinating ........ Indeed. KTFA Frank
***********
quattro1 : Accident or Coincidence???? Greece Defaults on $`.7 Billion IMF Payment!
***********
Purifyers: .. It will be interesting to see what evolves from this....
IMO.... this was a plan hatched out "WAY" ahead of time, ">THEY<" KNEW the financial situation that Greece would be in.... and it plays out MORE DEEPLY.... than 3D chess....
Moves with countries are well thought out.... MANY MANY years before any actions that we "see" played out in real time.... (although modified along the way... I must admit)
IMO.... "REAL TIME" is the "THEATER" for citizens of the world to witness.... but in the background.... we are played.... like a fine Magician.... that KNOWS THEIR CRAFT....
What we SEE.... is not (necessarily) the TRUTH.... of how "NATIONS" progressed.... and how the result came to be.... before our EYES!
Slight of hand????
IMO.... HANDS....
(NOTE: a little "truth or dare".... plays into CHESS MOVES with nations)
I have a sweet tooth.... anyone care for a dozen donuts?
(I have learned ALOT from what Frank,... teaches us) Thanks Frank!!
************
FrostyTheSnowman » June 30th, 2015, 10:12 pm
Tick Tock . . .
http://ift.tt/1Jv3mkI
The portion of the federal debt that is subject to a legal limit set by Congress closed Friday, June 26, at $18,112,975,000,000, according to the latest Daily Treasury Statement, which was published at 4:00 p.m. on Monday.
That, according to the Treasury's statements, makes 15 straight weeks that the debt subject to the limit has been frozen at $18,112,975,000,000.
$18,112,975,000,000 is about $25 million below the current legal debt limit of $18,113,000,080,959.35.
The Daily Treasury Statement for March 13 was the first to show the federal debt subject to the limit closing the day at $18,112,975,000,000. Every Daily Treasury Statement since then has reported the same thing: the debt closing the day at $18,112,975,000,000.
Every Daily Treasury Statement since Monday, March 16, has reported the debt beginning and ending each day at $18,112,975,000,000.
**************
Purifiers » June 30th, 2015, 11:35 pm •
Iceland looks at ending boom and bust with radical money plan
Wednesday 01 July 2015
Icelandic government suggests removing the power of commercial banks to create money and handing it to the central bank
Iceland's government is considering a revolutionary monetary proposal - removing the power of commercial banks to create money and handing it to the central bank.
The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled "A better monetary system for Iceland".
"The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy," Prime Minister Sigmundur David Gunnlaugsson said.
The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
According to a study by four central bankers, the country has had "over 20 instances of financial crises of different types" since 1875, with "six serious multiple financial crisis episodes occurring every 15 years on average".
Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle.
http://ift.tt/1F0KB3G
Fascinating ........ Indeed. KTFA Frank
***********
quattro1 : Accident or Coincidence???? Greece Defaults on $`.7 Billion IMF Payment!
***********
Purifyers: .. It will be interesting to see what evolves from this....
IMO.... this was a plan hatched out "WAY" ahead of time, ">THEY<" KNEW the financial situation that Greece would be in.... and it plays out MORE DEEPLY.... than 3D chess....
Moves with countries are well thought out.... MANY MANY years before any actions that we "see" played out in real time.... (although modified along the way... I must admit)
IMO.... "REAL TIME" is the "THEATER" for citizens of the world to witness.... but in the background.... we are played.... like a fine Magician.... that KNOWS THEIR CRAFT....
What we SEE.... is not (necessarily) the TRUTH.... of how "NATIONS" progressed.... and how the result came to be.... before our EYES!
Slight of hand????
IMO.... HANDS....
(NOTE: a little "truth or dare".... plays into CHESS MOVES with nations)
I have a sweet tooth.... anyone care for a dozen donuts?
(I have learned ALOT from what Frank,... teaches us) Thanks Frank!!
************
FrostyTheSnowman » June 30th, 2015, 10:12 pm
Tick Tock . . .
http://ift.tt/1Jv3mkI
The portion of the federal debt that is subject to a legal limit set by Congress closed Friday, June 26, at $18,112,975,000,000, according to the latest Daily Treasury Statement, which was published at 4:00 p.m. on Monday.
That, according to the Treasury's statements, makes 15 straight weeks that the debt subject to the limit has been frozen at $18,112,975,000,000.
$18,112,975,000,000 is about $25 million below the current legal debt limit of $18,113,000,080,959.35.
The Daily Treasury Statement for March 13 was the first to show the federal debt subject to the limit closing the day at $18,112,975,000,000. Every Daily Treasury Statement since then has reported the same thing: the debt closing the day at $18,112,975,000,000.
Every Daily Treasury Statement since Monday, March 16, has reported the debt beginning and ending each day at $18,112,975,000,000.
**************
Purifiers » June 30th, 2015, 11:35 pm •
Iceland looks at ending boom and bust with radical money plan
Wednesday 01 July 2015
Icelandic government suggests removing the power of commercial banks to create money and handing it to the central bank
Iceland's government is considering a revolutionary monetary proposal - removing the power of commercial banks to create money and handing it to the central bank.
The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled "A better monetary system for Iceland".
"The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy," Prime Minister Sigmundur David Gunnlaugsson said.
The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
According to a study by four central bankers, the country has had "over 20 instances of financial crises of different types" since 1875, with "six serious multiple financial crisis episodes occurring every 15 years on average".
Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle.
http://ift.tt/1F0KB3G
Purifyers: Capital controls: Greece and Iceland
LONDON | June 30, 2015
Now that Greece has controls on outflow from banks, capital controls, many commentators are comparing Greece to Iceland. There is little comparison to be made between the nature of capital controls in these two countries.
The controls are different in every respect except in the name. Iceland had, what I would call, real capital controls – Greece has control on outflow from banks. With the names changed, the difference is clear.
The controls in Iceland stem from the fact that with its own currency and a huge inflow of foreign funds seeking the country’s high interest rates in the years up to the collapse in October 2008, Iceland enjoyed – and then suffered – the consequences just like emerging markets in Asia in the 1980s and 1990s.
Enjoyed, because these inflows kept the value of the króna, ISK, very high and all of Iceland’s 300.000 inhabitants lived for a few years with a very high-valued króna, creating the illusion that the country was better off than it really was. After all, this was a sort of windfall, not a sustainable gain or growth in anything except these fickle inflows.
Suffered, because when uncertainty hit the flows predictably seeped out and Iceland’s foreign currency reserves suffered. As did the whole of the country, very dependent on imports, as the rate of the ISK fell rapidly.
During the boom, Icelandic regulators were unable, and to some degree unwilling, to rein in the Icelandic banks’ insane foreign expansion. On the whole, there was little understanding of the danger and challenge to financial stability that was building up. It was as if the Asia crisis had never happened.
As the banks fell over October 6-9 2008, these inflows amounted to ISK625bn, now $4.6bn, or 44% of GDP. These were the circumstances when the controls were imposed in Iceland due to lack of foreign currency for all these foreign-owned ISK. The controls were implemented on November 29 2008, after Iceland had entered an IMF programme supported by an IMF loan of $2.1bn. (Ironically, Poul Thomsen who successfully oversaw the Icelandic programme is now much maligned for overseeing the Greek IMF programme – but then, Iceland is not Greece and vice versa.)
With time, this amount of foreign-owned ISK has dwindled and is now at 15% of GDP. But another pool of foreign-owned ISK has emerged in the estates of the failed bank, amounting to ca. ISK500bn, $3.7bn, or 25% of GDP.
In early June this year, the government announced a plan to lift capital controls – it will take some years, partly depending on how well this plan is executed (see more here, toungue-in-cheek and, more seriously, here).
Greece – bank-outflow controls
The European Central Bank, ECB, has kept Greek banks liquid over many months with its Emergency Liquid Assistance, ELA. In light of the Greek government’s decision to buy time with a referendum on the Troika programme and the ensuing uncertainty, this assistance is now severely tested. The logical (and long-expected) step to stem the outflows from banks is to limit funds taken out of the banks.
This means that the Greek controls are only on outflow from banks. The Greek controls, as the ones imposed previously in Cyprus, have nothing to do with the value or convertibility of the euro in Greece. The value of the Greek euro is the same as the euro in all other countries. All speculation to the contrary seems to be entirely based on either wishful thinking or misunderstanding of the controls.
However, it seems that ELA is hovering close to its limits. If it is correct that Greek ELA-suitable collaterals are €95bn and the ELA is already hovering around €90bn – the situation, also in respect, is precarious.
How quickly to lift – depends on type of controls
The Icelandic type of capital controls is typically difficult to lift because either the country has to make an exorbitant amount of foreign currency, which is not likely, a write-down on the foreign-owned ISK or binding outflows over a certain time. The Icelandic plan makes use of the last two options.
Lifting controls on outflow from banks takes less time, as shown in Cyprus, because the lifting then depends on stabilising the banks and to a certain degree trusting the banks.
This certainly is a severe problem in Greece where the banks are only kept alive with ELA – funding coming from a source outside of Greece. This source, ECB, is clearly unwilling to play a political role; it will want to focus on its role of maintaining financial stability in the Eurozone. (I very much understand the June 26 press release from the ECB as a declaration that it will stick with the Greek banks as long as it possibly can; ECB is not only a fair-weather friend…)
Without the IMF it would have been difficult for Iceland to gain trust abroad for its crisis actions – but Greece is not only dependent on the Eurozone for trust, but also on the ECB for liquidity. Without ELA there are no functioning Greek banks. If the measures to stabilise the banks are to be successful, the controls are only the first step.
http://ift.tt/1Jv3kcH
LONDON | June 30, 2015
Now that Greece has controls on outflow from banks, capital controls, many commentators are comparing Greece to Iceland. There is little comparison to be made between the nature of capital controls in these two countries.
The controls are different in every respect except in the name. Iceland had, what I would call, real capital controls – Greece has control on outflow from banks. With the names changed, the difference is clear.
The controls in Iceland stem from the fact that with its own currency and a huge inflow of foreign funds seeking the country’s high interest rates in the years up to the collapse in October 2008, Iceland enjoyed – and then suffered – the consequences just like emerging markets in Asia in the 1980s and 1990s.
Enjoyed, because these inflows kept the value of the króna, ISK, very high and all of Iceland’s 300.000 inhabitants lived for a few years with a very high-valued króna, creating the illusion that the country was better off than it really was. After all, this was a sort of windfall, not a sustainable gain or growth in anything except these fickle inflows.
Suffered, because when uncertainty hit the flows predictably seeped out and Iceland’s foreign currency reserves suffered. As did the whole of the country, very dependent on imports, as the rate of the ISK fell rapidly.
During the boom, Icelandic regulators were unable, and to some degree unwilling, to rein in the Icelandic banks’ insane foreign expansion. On the whole, there was little understanding of the danger and challenge to financial stability that was building up. It was as if the Asia crisis had never happened.
As the banks fell over October 6-9 2008, these inflows amounted to ISK625bn, now $4.6bn, or 44% of GDP. These were the circumstances when the controls were imposed in Iceland due to lack of foreign currency for all these foreign-owned ISK. The controls were implemented on November 29 2008, after Iceland had entered an IMF programme supported by an IMF loan of $2.1bn. (Ironically, Poul Thomsen who successfully oversaw the Icelandic programme is now much maligned for overseeing the Greek IMF programme – but then, Iceland is not Greece and vice versa.)
With time, this amount of foreign-owned ISK has dwindled and is now at 15% of GDP. But another pool of foreign-owned ISK has emerged in the estates of the failed bank, amounting to ca. ISK500bn, $3.7bn, or 25% of GDP.
In early June this year, the government announced a plan to lift capital controls – it will take some years, partly depending on how well this plan is executed (see more here, toungue-in-cheek and, more seriously, here).
Greece – bank-outflow controls
The European Central Bank, ECB, has kept Greek banks liquid over many months with its Emergency Liquid Assistance, ELA. In light of the Greek government’s decision to buy time with a referendum on the Troika programme and the ensuing uncertainty, this assistance is now severely tested. The logical (and long-expected) step to stem the outflows from banks is to limit funds taken out of the banks.
This means that the Greek controls are only on outflow from banks. The Greek controls, as the ones imposed previously in Cyprus, have nothing to do with the value or convertibility of the euro in Greece. The value of the Greek euro is the same as the euro in all other countries. All speculation to the contrary seems to be entirely based on either wishful thinking or misunderstanding of the controls.
However, it seems that ELA is hovering close to its limits. If it is correct that Greek ELA-suitable collaterals are €95bn and the ELA is already hovering around €90bn – the situation, also in respect, is precarious.
How quickly to lift – depends on type of controls
The Icelandic type of capital controls is typically difficult to lift because either the country has to make an exorbitant amount of foreign currency, which is not likely, a write-down on the foreign-owned ISK or binding outflows over a certain time. The Icelandic plan makes use of the last two options.
Lifting controls on outflow from banks takes less time, as shown in Cyprus, because the lifting then depends on stabilising the banks and to a certain degree trusting the banks.
This certainly is a severe problem in Greece where the banks are only kept alive with ELA – funding coming from a source outside of Greece. This source, ECB, is clearly unwilling to play a political role; it will want to focus on its role of maintaining financial stability in the Eurozone. (I very much understand the June 26 press release from the ECB as a declaration that it will stick with the Greek banks as long as it possibly can; ECB is not only a fair-weather friend…)
Without the IMF it would have been difficult for Iceland to gain trust abroad for its crisis actions – but Greece is not only dependent on the Eurozone for trust, but also on the ECB for liquidity. Without ELA there are no functioning Greek banks. If the measures to stabilise the banks are to be successful, the controls are only the first step.
http://ift.tt/1Jv3kcH
via Dinar Recaps - Our Blog http://ift.tt/1HuxAEX
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