11/7/11

EUROKLEPTOCRATS WANT TO MANIPULATE THE CREDIT RATING AGENCIES!

 
Eurokleptocrats manipulate justice, and now they demand to manipulate the three credit rating agencies! God forbid! Eurocommissars have joined a stupid opposition to the power wielded by the three dominant credit rating agencies in the on-going debt crisis of PIGS. Eurocommissars declare Fourth Reich cannot let itself be destroyed by three American private companies. They demand more transparency and competition in the way states and businesses are rated.

The agencies point out that any bailout for the Cradle of Kleptocracy is taxpayers' hard-earned money blown out with the wind, because the October-18 Mafia continues corruption, squander, marilizardism, incivility, stupidity, charge stacking, and junketing. http://venitism.blogspot.com

Eurocommissars bluff that the G20 countries should either act together to break up the three American rating agencies or they should create independent European and Asian rating agencies! But this stupid idea will only increase kleptocracy and kickbacks! Eurocommissars asserts that it should not be possible for a rating cartel to decide the fate of entire economies and their citizens. Premier Papandreou, the godfather of the October-18 Mafia, hoodwinks that his mafia will go straight, but nobody believes him anymore!


Only stupid investors would squander their money in a country addicted to kleptocracy, socialism, charge stacking, and marilizardism. If the bankruptcy of the Cradle of Kleptocracy were actually to trigger a global financial crisis, new bailout programs couldn't solve the problem. They would actually exacerbate it. If no more states or banks are allowed to go bankrupt because this might precipitate a financial crisis, then we're finished. Then the problem continuously escalates and leads to a much greater crisis.

Evangelos Venizelos, the mad bulldog of the October-18 Mafia, foams at Fourth Reich! Without the three rating agencies, stimulus will go to the Moon, until Fourth Reich gets busted! Stimulus funds stimulate government, not the economy. Downturn in a business cycle is painful but necessary medicine for restoring equilibrium to the economic system. Reject further lowering of the interest rate (stimulative monetary policy) or any other attempts (for example, deficit spending or stimulative fiscal policy) to stimulate demand. http://venitism.blogspot.com

There is no way any prudent investor will throw a euro in the Cradle of Kleptocracy, which is infested with marilizardism, the October-18 Mafia, charge stacking, and the cancer of socialism. Banks cannot participate voluntarily. An executive board is committed to its company's welfare, and not the public interest. If it waives outstanding debts at the expense of its own company, this is a breach of trust and punishable by law.

Eurocommissars also want to manipulate the agencies in order for Fourth Reich to issue eurobonds without bad ratings! But eurobonds violate the Maastricht Treaty, which stipulates that no country can be held liable for another country in Fourth Reich(EU). Eurobonds would even elevate liability to the level of a principle and force Germany to vouch for the debts of other countries whose fiscal behavior they cannot control. Germans would not tolerate the tax increases and reductions in transfer payments that this would necessitate. http://venitism.blogspot.com

Eurobonds would not be as safe as German government bonds. And since they would stimulate even heavier borrowing, they would have to yield higher rates. In the wake of the current bailout measures, the German government burdens taxpayers with risks worth one trillion euros. Likewise, over the last year, risk premiums for German government bonds have doubled. There simply isn't any more room for maneuver. Marilizard Libel, Marilizard Spaghetti, and Marilizard Towers are very common in PIGS.

Kleptocrats are creating zombie banks and companies that are kept alive artificially. We started with a too-big-to-fail problem, and part of the policy response to the crisis has been even more financial consolidation. JP Morgan took over Bear Stearns and Bank of America took over Merrill Lynch. What we have now is financial institutions that are even bigger. Those institutions, even more than before, know if they do something very risky, something reckless, they will be bailed out again. Kleptocracy and marilizardism are anathema to civil society.

German President Christian Wulff is shocked that the rating agencies Standard and Poor's, Moody's and Fitch continue to exercise so much power but have not been held accountable for bad judgments! Wulff asserts that policymakers have become too dependent on private actors in their approach to the debt crisis and need to reconquer the primacy of politics. Wulff demands a new bank landscape, a different structure for the rating agencies and new mechanisms for sanctions!

Frank-Walter Steinmeier, German leader of opposition, declares that Standard and Poor's, Moody's, and Fitch present a serious problem for the stability of sovereign states! Steinmeier points out in the case of the October-18 Mafia, the rating agencies slashed October-18 Mafia's rating because its debt was too high and didn't save enough, and later they slashed October-18 Mafia's rating again because the rigid austerity program did not result in growth.

There has been much discussion of moral hazard in connection with the flurry of bailouts that began in 2008. Moral hazard refers to people's readiness to act with an artificially elevated level of risk tolerance because they believe that any losses they may incur will be borne by other people. Hence the bailouts will tend to make major market actors even less likely to behave prudently in the future, since if they believe they are likely to be considered too big to fail, they have more reason than ever to believe that they will not be allowed to go out of business, and therefore that they may continue to make risky bets. http://venitism.blogspot.com

The very existence of a central bank such as the Federal Reserve and ECB aggravates, indeed institutionalizes, moral hazard. Since there is no physical limitation on the creation of paper money, firms know that no natural constraint exists on the power of the central bank to bail them out of any serious trouble. The Central Put is the implied promise that the central bank would intervene to assist the financial sector in the event of a serious downturn. No one has a right to be surprised when market actors behave accordingly.

Everybody's money income is somebody else's cost. In the case of the stupidus stimulus, the administration paid for it through taxation, borrowing, and printing new money. With all three methods the net result was that someone was made better off but only at the expense of someone else. When the government forced up the minimum wage, there was no added amount of production to offset the increase in business costs. Instead, we have seen a record level of teenage unemployment.

Marilizard Libel: accusing dissident bloggers of treason
Marilizard Spaghetti: hurling charges against innocent people, hoping one charge sticks
Marilizard Tower: stack of imaginary charges to scare an innocent blogger
marilizardism: terrorizing dissident bloggers
October 18: international day against marilizardism
October-18 Mafia: marilizardist government of Greece
http://venitism.blogspot.com



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