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Disgraceful. No respect.

May 30, 2013

What a waste of perfectly good salami.




February 18, 2013

I might be playing with fire here. I might be turning my F-14 towards the control tower for as-yet-unauthorised low-altitude pass.

I am referring to an article in The Age about Victoria Police settling a case concerning the practice of “racial profiling of Afro-Australian men”.

I am refering to the first time I have ever seen the term Afro-Australian in print in all seriousness.

My dad had a perm in the early 80s. I think it had something to do with Air Supply being famous and my mother’s nagging skills.  I’m not exactly sure what made him do it but those were different times and you could call his old hair-do an Afro. You might go so far as to call it a bad one, but that would imply some degree of profiling. Anyway, I think I just found out I am descended from an Afro-Australian.

What form do I fill out to get money?






is this on?

February 14, 2013

Gillard as the worst PM ever: Told you on election day 2010.

Swannie as the worst Treasurer: I told you that one too.

Ashton/Demi fake marriage sham: Swish!

K-Rudd’s come-back: Sorry… the card says “Moops”.

Financial meltdown in 2012: Not quite. Anyway, the earth is slow but the ox is patient. That one’s baked into the cake well and truly.

For now though, I give myself 3 out of 5.  A pass.

First prediction for 2013…

… Cardinal Bertone.

Let’s see.

(ps. It has been ages so I just clicked on every tag that was available to me. I liked “cougars” the best, and “nappies” made me most confused).



Sorry folks, eurozone’s closed…

May 18, 2012

… the moose out front should have told you.



Wake up and smell the paella

March 10, 2012

Greek bond swap paves way for rescue

OK, let’s look at what happened overnight. Greek debtors mostly agreed to take a hit on their bonds. These bonds are covered by Greek law which just recently was changed, to make it the case that if over 50% of bond holders accepted a reduction in face value, then all holders must accept the same deal whether they like it or not. This is the Collective Action Clause (CAC) that most articles in the lead-up to the latest ‘deal’ skimmed over or didn’t mention.  This is somewhat important. The investors which held out on the haircut are those with insurance in the form of Credit Default Swaps (CDS) covering their bets on Greek debt, which means that whichever bank issued the CDS would have to pay out. They’d much rather have a full insurance payout rather than a 50%-or-whatever fall on the bond value. Of course, the CDS issuing banks have their own position in CDS to cover the risk of paying out on Greek debt, so they’ll receive something and well as pay out, but in the end someone will have to pay. Remember in all this too, that bank balance sheets have sovereign debt marked at values closer to purchase prices than today’s sell prices.  (Which is only OK for the ECB, which in its EFSF deal swapped its old Greek bonds for a newly-invented Greek bond that absolutely, guaranteed, no-questions-asked always retains it full value. This type of bond was structured by the ECB, and is only available to the ECB. Yes, it is as ridiculously dodgy as it sounds…. but at least they showed enough restraint to not give themselves a profit on the deal). Anyway, the important question now is whether the CAC is deemed to trigger a default and put into play the CDS’ written for such an event.

If it does, then the banks are gone.

If it doesn’t, then the market for EU sovereign debt will be officially one where any insurance to hedge the bet is simply worthless, and private bondholders will take all the pain of any debt restructure because the ECB has shown that it is completely willing to change the rules to protect itself at the cost of others. The sovereign bond market will dry up overnight. 

Remember, this is all to secure a bailout.

As a backdrop to this, here’s the maths: Greece already received a bailout of EUR110b in 2010. Greek GDP in 2010 shrank 4.5%. In 2011, after the ‘help’ of the bailout it shrank by 6.8%. So the Greek economy accelerated its decline after the help of imposed austerity. The latest bailout will be for EUR130b. That’s EUR240b in new debt all up. The Greek economy is worth EUR227b.  The country has had no positive growth in five years, but the latest ‘save’ requires everything to be fixed in two years. Even before the latest bailout has hit the fan, the country is experiencing strikes, protests, and riots.

Yeah, some rescue.

Spain and Italy are next.  Multiply all the numbers by 10 to get what will be involved when these countries have to fund their debt. Do you reckon they’ll submit to all this stuff Greece has?  Not likely.

Bye-bye euro.

30 MINUTES LATER UPDATE: Looks like we don’t have to wait for Spain to tell the EU/ECB/IMF where to go… things are getting real interesting right now. Wall Street Journal reports that Greece has defaulted.

The Milky Bar Kid rides again

February 23, 2012

Well played, Xiao Rudd, well played.

I must give a sly nod to the little prat. He’s done well. He’ll be back. Our beloved leader is about 6 months past the use-by date I gave her when the childless, unmarried, middle-aged and ball-breaking woman living with a male hairdresser (but not a lesbian, why would you ever think she was?) won the election.

I was right about Ashton and Demi, I will be right about Julia.




Backsliding, how do you do?

February 13, 2012

These slippery people, gonna see you through

The stuff of the last post made me dizzy, you know. Not only because the document to seal a document fraud case involving shonky signatures somehow managed to get signed before it was written, but also because the deal involved banks paying out billions to aggreived parties.

The banks do not have that kind of cash.

The US Fed will no doubt quietly provide it to them to maintain the pretence of financial sector solvency. Whilst it’s currenly being overshadowed by European sovereign debt problems, many US states and municipalities are plain broke. USD26b from the Fed (via Wall St) will certainly help with that. The money is not likely to go beyond state budgets, and dudded home-owners should not expect to receive a cent from the settlement. State debt problems are thus solved through more lending.

It’s like the serpent eating its own tail, the ouroboros. Which reminds me of eurobonds…

In Europe, we have had the situation of Greece issuing bonds which no-one wants. The price drops and the ECB is then forced to come in and buy the bonds. The ECB last week announced that it will now sell those bonds back to the EU’s European Financial Stability Fund. The EU will then loan money to Greece. Greece will then issue bonds… 

Fitting that in the same week that this development came out, a UK paper reported the story of a policeman who spent twenty minutes giving chase to a suspicious character, which turned out to be himself. The policeman was given directions during the chase by a remote operator of CCTV surveillance , who kept telling his colleague that he was “hot on the heels” of the suspect.  Much laughter ensued when the error was realised. Though it is somewhat heartening to find out that the imposition of an Orwellian police state does involve the odd chuckle (as least for those with the uniforms and stun-guns) it is still sadly reflective of the world’s general sanity.

Right now, turn like a wheel inside a wheel.