Friday, April 25, 2014

Euro Chooses Dollar Military Option

So clearly now the G7 has made it's stand. It will choose a debt-backed military force to support it's NATO paper tiger. When push comes to shove, the Euro chooses to be aligned with the dollar faction, and to imperil it's energy and related commerce relationships with the angry Bear.


As Giles would say, upon returning from the wine cellar with a particularly well aged sherry (called upon for the express purpose of savoring it's complex tones) "Pardon sir, but are they not playing both ends against the middle?"

Indeed, this "alarming" confrontation between East and West is the ONLY position for our little soldier in Brussels to take. But Europe needs the Eurasion Union, just as much as both the U.S.A. and the Eurasian Union need Europe. So if things do escalate into a "hot" confrontation, Europe will ultimately seek the comfort of the U.S. presence so firmly entrenched in established bases surrounding Russia already.

There can be no Altyn currency to challenge the Euro, it would undo too much if even given the chance. So Putin's bankers revealed a sensitivity in this knee-jerk reaction to the S & P downgrade - yet another "wolf cry" about the economic prospects of Russia's future. So telling was their AAA rating of securitized debt instruments in the mid 2000's, we can only hope that Standards opinions of Russia are equally prescient.

It is only fitting to stress test the old system, which judges everything in terms of "thoughts offered to the wind" and the herd mentality to latch onto those thoughts and run with the delta to create the self fulfilling prophecy of the herd, all based upon the winds of promises, blowing against sails of debt.

And then in this corner, we have the prospects of a new system, saddled with such "illiquid" constraints as real, measurable, finite supply, and real economic input demand for production of tangible things which serve a purpose in this world beyond "gaming debt to profit in debt".

But we are in a dangerous position, to pit these competing systems against one another, because this is a battle between Lions in which many small dogs will become collateral damage.

I do fear for the little people, as they are even more expendable when the stakes loom larger. But we know which corner the working class stands behind (whether they know it or not) and we know which corner the gaming class stands behind (no question there).

And now we know who has secured the prize, through that special relationship. A strange gift, this prize, with all the attributes of a masterfully constructed wooden horse.

I would suggest extra butter for the weekend's popcorn, and a full belly to hide with.

Let the spectacle ensue!

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