Letter from Tsipras to the Troika
Here is the Letter from Greece to the Troika
The letter, written by Alexis Tsipras, is addressed to Jean Claude Juncker, Mario Draghi, and Christine Lagarde.
Greece Surrenders its Sovereignty to Brussels
The Syriza government is backing down after the realization that Brussels will declare economic war on Greece by deliberately trying to plunge the country into total ruin, far worse than the sanctions imposed on Russia. This is a sad day for the entire world. It is a terrible example that the Troika is the new equivalent of a Roman Triumvirate – the death of democracy. Europeans will remember this day for it is when national sovereignty died.
We have a copy of a letter sent from Greece to the EU accepting all terms. This is a surrender of sovereignty and no doubt the truth of this turnaround will be hidden from the public at large worldwide – not just the Greek people. All our fears of moving into Economic Totalitarianism are coming true. Democratic principles are dead: long live Totalitarianism. No doubt, this was the toast in Brussels last night (behind the curtain, of course).
You Can Check-In for the Euro but You Can Never Leave
German Finance Minister Wolfgang Schäuble explained on Tuesday that Greece will remain in the euro, no matter how the referendum ends on Sunday. Two years ago, Mario Draghi commented on the continued existence of the euro by saying that the single currency was just irreversible. Angela Merkel delivered a very cold speech stating there are no known proposals that could lead to a common solution to the crisis. The USA position is of course that they want Greece to remain in the euro solely based upon NATO. Then there is the issue of throwing out Greece’s Finance Minister Yanis Varoufakis from any meeting. Why expel a finance minister? The reason may lie in a hidden scheme.
There is behind the curtain posturing going on which is out of the public eye, whereas people do not quite realize that joining the euro was the surrender of national sovereignty. Brussels has a hidden clause that shows from the very beginning that this was a covert action to federalize Europe by displacing democratic institutions from the top down. The sinister clause at issue explains why they expelled Yanis Varoufakis because they need unanimous consent to supersede the sovereignty of any member state.
Article 352 TFEU
(1) If there is any action by the Union under the conditions laid down in the Treaties policies needed to attain one of the objectives of the Treaties, and in the Treaties the necessary powers not provided , the Council shall, acting unanimously on a proposal from the Commission and after assent of the European Parliament take the appropriate measures. If these provisions are adopted by the Council in accordance with a special legislative procedure, it shall also act unanimously on a proposal from the Commission and after approval by the Euro-pean [sic] Parliament.
(2) The Commission shall draw national parliaments in the procedure for monitoring the subsidiarity principle referred to in Article 5, paragraph 3 of the Treaty on European Union ‘attention to proposals which are based on this product.
(3) Measures based on this Article shall not entail harmonization of the laws of the Member States in cases where the Treaties exclude such harmonization.
(4) This item can not serve as a basis for attaining objectives pertaining to the common foreign and security policy and any acts adopted pursuant to this Article shall remain within the Article 40 paragraph 2 of the Treaty on European Union specified limits.
This Article 352 allows the EU to wage economic war on any member state to force its will upon the people, regardless of what they vote. This is an amazing authoritarian view for this is not just about maintaining a single currency; it is now all about centralized power. The EU is now in a position to carry out coercive measures against Greece that are completely outside any legal framework. The scheme is roughly equivalent to what we know from the national legislation as emergency legislation. The only restriction in paragraphs is that it must not be used as a basis for attaining objectives pertaining to the common foreign and security policy. So it’s almost a paragraph in order to maintain the EU’s internal order.
To invoke such federalized power requires a unanimous vote, which explains why they would expel Yanis Varoufakis. It appears that the EU Commission is not about to accept an exit vote by the Greek people. They have eliminated any democratic means to exit the euro. This could lead to major civil unrest throughout Europe for playing hardball with Greece will expose the federalization of Europe. It also explains why they now want to create a European Army at the direction of the EU Commission and Troika.
They could try to send an independent finance minister to run the country as if it were a bankrupt state – a court appointed type of trustee without the court. That was imposed upon Germany following World War I.
What appears to be underway here is a very nasty move toward a complete collapse in any democratic right of the Greek people to exit the Euro. This is becoming more and more like the Eagle’s song “Hotel California” – you can check-in, but you can never leave.
World Economic Conference in Berlin November 27-28
The Berlin conference will differ from that of Princeton from the standpoint that the questions posed by the audience will tend to be focused more upon Europe and the prospects for the survival of the EU itself. We have a number of people signed up from Britain as well, so we will no doubt also have more pointed questions regarding Britain and the prospect of exiting the EU.
We have room blocks at discounted prices for attendees. So the earlier you sign up, the more likely you will be able to get the discounted prices in the hotels, of which we have rooms booked at two places.
Understanding Trading
The most fundamental truth about trading is that your opponent is YOURSELF. The majority must be wrong because they are the fuel that propels the market. The market enters a flash-type crash when the vast majority is LONG and they try to sell but there is no bid. Far too many people demonize trading such as “paper gold”, arguing that it is not real. Yet, eliminate futures and you get liquidity and then gold’s value would decline, not rise. Without a common exchange, gold has no value. What gives gold any value is the fact that it is accepted as having some value. If you cannot determine a value, no commodity, stock, bond, or object could ever have a value. This is a barter economy where you will NOT trade unless you need the item in exchange or know for sure you can exchange it with a third party.
To avoid getting caught at the high or the low, you must understand the nature of markets and how they function. Once you accomplish that realization, you will see your real opponent is YOURSELF, not the grand cabal. The majority must be trapped at the high, which then creates the panic when the majority tries to sell but there is no bid. Likewise, at the low, the majority is bearish and the dominant trade is being short. They try to buy back, causing a panic to the upside for the lack of offers. It is a pendulum swinging to the extreme on both sides which propels the market movement.
I have stated that gold would bottom only after it become a dirty word. All that yelling and screaming about manipulation, or whatever commodities are in a declining DEFLATIONARY trend. Even egg prices have declined on the DCE futures exchange in China. The claims that China will back its currency with gold would not be bullish for gold, it would be a disaster, for the Chinese would not buy gold anymore and that would further the deflation as we see under austerity in Europe. Claims that money should be tangible would benefit the bondholders at the expense of the people just as we see in Greece right now.
Analysis is the very same problem. I am not some guru, wizard, prophet, oracle, or whatever. I’m just someone who has been fascinated with understanding how things work. I use the quantitative modeling to allow the market to speak its mind and that is the best forecaster you can ever imagine since the market is never wrong.
For those who have recently joined us, keep in mind that there is a huge difference between OPINION and real FORECASTING. Professional institutions follow us for what the computer says, NOT because I personally have never been wrong. No one’s OPINION is never wrong. Real money will NEVER trade based upon someone’s personal OPINION. The talking heads are for retail, not professionals.
A central bank recommended to a very major pension fund that they call us – off the record. I spoke to the head and the first thing out of his mouth, “We do not have any respect for academics. We are calling you ONLY because the central bank wanted us to give you a call, which of course was off the record.” When I responded we were not academics, had real management and trading experience, and used quantitative models, the air was cleared and we began on the project. Real money does not listen to OPINION. It just cannot.
At our World Economic Conference, it is NEVER a solicitation to sell you something. It is NEVER “I think” it is ALWAYS “Here is what the computer is showing in this market or that one.” We correlate the world and show you the connections. This is a learning experience; only then will you have the courage of your convictions to beat yourself in the trading game.
You can read Spiral Panic to grasp the concept of trading in a market decline. But I also recommend that you begin reading our Models & Methodology so you can grasp a better understanding of forecasting model design.
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