Business Summary Links By Day
The ECB – EUR22
Trillion Is Missing Zero Hedge |
Think of it; twenty-two trillion dollars worth of assets and liabilities and
accounted for nowhere.
Via
Mark J. Grant, author of Out of the Box,
The ECB: The Missing Assets/Liabilities
“To treat your
facts with imagination is one thing, but to imagine your facts is another.”
-John
Burroughs
Yesterday I published the
assets/liabilities of the European Central Bank as provided by them. I provided
some analysis that I thought was relevant as I also asked all of you to look at
the numbers yourself. To be quite open; I was stunned by the data they provided
and shocked by the implications. I had not seen the data in any other source or
commented about by anyone and the subject, while admittedly complex, and
perhaps made more complex by design, is a huge wake-up call for anyone
investing in Europe.
The ECB lists, as of the end of the 1st
quarter of 2012, 16.304 trillion Euros ($ 21.032 trillion) in assets and 17.334
trillion Euros ($22.631 trillion) in liabilities. It is
right there in black and white as I showed in the ECB provided data that I
presented yesterday. However when you get to their consolidated balance sheet
you find the numbers they bandy about in public to be a ledger of 3.240
trillion Euros ($4.00 trillion) and you catch your breath and pause. Utilizing
normal American accounting practices this variance would be impossible and yet
here it is; staring us all right in the face.
“Europe has put
a ‘stop payment’ on our reality
check!”
-The
Wizard
I can report that I did hear from a
number of large institutions yesterday that also looked at the numbers
themselves and were stunned. Conversations were held, questions were asked and
I think an accurate summation of the conversations was that everyone was in
some state or another of astonishment. The numbers were not my numbers after
all and while many good issues were raised in terms of how to properly analyze
the data that was presented there was a clear sense that we were being duped by
the European Central Bank and played for suckers.
“Reality is the
leading cause of stress amongst those in touch with it.”
-Jane
Wagner
Forget that the liabilities are greater than
the assets and forget that that both have increased rather appreciably in the
last several years and just concentrate on the size of the numbers
presented and then ask the central questions; who is responsible for these
assets and liabilities and where are they counted? We know that they are not
counted at the ECB as they are not a part of their consolidated balance sheet.
You may ask how this is possible and I re-print, once again, the applicable
note from the ECB:
“Recognition of assets and liabilities
An asset or liability is only
recognized in the Balance Sheet when it is probable that any associated future
economic benefit will flow to or from the ECB, substantially all of the
associated risks and rewards have been transferred to the ECB, and the cost or
value of the asset or the amount of the obligation can be measured reliably.”
So there is the rationale, like it or
not, but then where are these assets/liabilities counted? We are talking about
$21.032 trillion in assets here and $22.631 trillion in liabilities which are larger
numbers that all of the GDP of Europe. We can surmise that the ECB does not count these loans, securitizations
and collateral as they belong to a given nation or a bank guaranteed by the
nation or the securitization is guaranteed by some country but the rub is the
country doesn’t count them either. When a European nation reports out its
debt to GDP ratio I knew that they did not count contingent liabilities and I
knew that government backed bank bonds were not included and I knew that
regional debt guaranteed by the government was not included but this, and the
sheer size of it, had lain underneath everyone’s radar.
Think of it; twenty-two trillion dollars worth of assets
and liabilities and accounted for nowhere. No need to worry
anymore about Target2; a mere tuppence at one trillion dollars, a decimal
point. Just exactly what these assets and liabilities might be is anyone’s guess.
Just which nations generated them is also anyone’s guess as no data or explanation is provided. Just
what any country’s real debt to GDP ratio might be if these
assets/liabilities were included in the equation is also anyone’s guess but
I think it is safe to assume that the numbers would be off the charts; far off
the charts.
“Illusions
commend themselves to us because they save us pain and allow us to enjoy
pleasure instead. We must therefore accept it without complaint when they
sometimes collide with a bit of reality against which they are dashed to
pieces.”
-Sigmund
Freud
You know, these are not blue fairies or
gnomes or elves that have gone missing. These are twenty-two trillion dollars
($22 trillion) of loans and securitizations and mortgages that are found and
accountable for by no one. These
are real assets and real liabilities that have been turned into cash by the ECB
and it causes me to wonder just how accurate the Money Supply numbers are for
Europe with this amount of cash being pumped into the system. I
also wonder what anyone’s real balance sheet looks like and I wonder what
kinds of losses are being incurred and by whom. To be quite forthright, and in
my opinion, this seems to me not just the rigging of the game or the gaming of
the system but something far past that; something out beyond the realm of the
credible and of real world experiences.
This is what we are investing in when
we buy European bonds? This is where we are putting our client’s money? I
don’t know;
they may have gone mad but I have not.
Have you?
“An error does
not become truth by reason of multiplied propagation, nor does truth become
error because nobody sees it.”
-Mahatma
Gandhi
AP Business
Highlights
...Yahoo Market Update…
http://albertpeia.com/archives.htm
FBI Nazi
Bikers Bust FBI Nazi Bikers - What's Up At The FBI/DOJ?
Infowars.com | Now is the time to put an end to Obama’s
treasonous and tyrannical behavior.
http://albertpeia.com/impeachobama.htm
Wobama’s
Choom Gang Bangin’ { This brief video (11 mb) is well done and worth a
watch! }
http://www.albertpeia.com/wobamaschoomgangbangin.wmv
PAPER:
Obama's grandfather tortured by the British? A fantasy (like most of the
President's own memoir)... {
http://albertpeia.com/wobamaschoomgangfantasy.htm }
Drudgereport: Obama: 'Sometimes I Forget' Magnitude of Recession…{
Oh! How conveniently forgetful, though the vast majority of americans don’t
have wobama’s luxury of feigned amnesia suffering from what wobama did and
didn’t do contrary to promises last time around the perpetual campaign trail
littered with his typical jive-talking b***s***! The following headline will
help him remember some of his sordid, pot-clouded high school past! }...
FLASHBACK: Obama's Sordid High School Past...
By Ben Shapiro ‘While the Washington Post has been diligently
digging into relatively innocent high school pranks
by Mitt Romney, they’ve spent the last few years diligently ignoring President
Obama’s far more controversial high school days.Obama, by all accounts, was a
habitual drug user in high school. He tried cocaine, he admits in Dreams
From My Father; he “tried drugs enthusiastically.” The Chicago Tribune
reported back in 2007 that Obama thanked the “Choom Gang” in his high school
yearbook; “chooming” was Hawaiian slang for smoking pot. The Honolulu
Advertiser reported that Obama’s senior portrait “prominently displayed …
A package of ‘Zig-Zag’ rolling papers and a matchbook.” One of Obama’s close
friends was arrested for drug possession during high school.In his memoir,
Obama talked about routinely getting high. “Junkie. Pothead,” he wrote. “That’s
where I’d been headed: the final, fatal role of the young would-be black man.”
But, according to Obama, he only got high because he was contemplating deep
matters: drugs could “push questions of who I was out of my mind.” Obama told
students in 2007 that this activity constituted “goofing off” and “wasting
time”:"I will confess to you that I was kind of a goof off in high school
as my mom reminded me," Obama said. "I went to high school in
Cracks
in the Washington Post story on Romney’s ‘pranks’ emerge
Correction
Request: Washington Post Uses Falsehood in Romney Hit Piece
Media
Downplays Obama's Past, Tries to Define Romney with Teen Prank
If we're going to delve deep into a candidate's past, let's delve deep into a
candidate's past. Here's Obama in his own words admitting to physically shoving
a little girl named Coretta. Yes, it was at this moment that the first
shot in the War on Women was fired.
http://albertpeia.com/obamashovesgirl.png
No doubt that after expending all that energy
bullying an innocent little girl, young Obama readied himself for round two by
eating a Golden Retriever. More on this breaking story here.If
you're wondering what the rules are regarding a candidate's past; how far back
we're allowed to go in an attempt to define them -- the answer is simple: the
corrupt media will let us know.
Obama WILL NOT pursue gay marriage as part of party
platform...
STONE: 'Playing a
cruel and cynical game'...
Unites Republicans?
New Black Panther Niggers Plan Newspaper Cover With
Zimmerman In Noose { and civilized people everywhere should respond with
niggers in nooses and contributions to the Klu Klux Klan! } ...
LOONEY CLOONEYLAND: BIG CAMPAIGN BOXOFFICE FOR NIGGERO
– Meanwhile, looney clooneyland ain’t doin’ so well with the niggero model –
see next headline! ...
Failed Wobama model illustrated: 16 Reasons To Move Away From
Postal Service loses $3.2b in first quarter...
78% of
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{ some prior links of current
interest }
