Saturday, November 19, 2011
Instead Of Relenting To Demands To Let ECB Print, Germany Is Preparing To Kick Countries Out Of Eurozone
It's official - Germany has become just like China (or, rather, has always been like it): the more it is pushed to do something (let ECB print), the more it will do the opposite. Half a year ago we discussed that the weakest point of the European bailout language was its reliance on Collective Action Clauses which imply that any resolution which does not have 100% backing of all bondholders would potentially push a country into default. In essence, this took control out of the hands of the Eurozone head, Germany, and put it to the bondholders. Well, according to a preliminary draft released by the Telegraph and FT, as part of the new bailout 'indenture' contained in the ESM, "under a section headed “The establishment of a procedure for an orderly default as part of the ESM”, Berlin makes clear that countries which are deemed to be insolvent – rather than just suffering a temporary loss of access to the financial markets – would be allowed, in effect, to declare bankruptcy and default on their bonds: If [a debt sustainability review] is negative, the affected member state would instead receive loans for a limited time only, during which the procedure for an orderly default would be prepared. In order to make sovereign defaults possible where they are unavoidable, the threat of instability in the financial system resulting from such a default must be able to be credibly excluded. A plan to maintain the stability of the financial system in the event of an orderly default needs to be developed in close co-operation with European banking regulators. This would determine which banks would be restructured and/or recapitalised, which will necessitate the drawing up of Europe-wide rules on bank restructuring." And as we discussed previously, the voluntary language will likely be taken out from the final draft, effectively giving Germany the unilateral ability to kick countries out. Which explains why the market is about to plunge: according to just released information from DPA, "the German Foreign Ministry on Friday confirmed that Germany was considering the possibility of more eurozone "orderly defaults" beyond that of Greece, as suggested by a paper leaked by the British press." In essence, what this means is that instead of relenting on the ECB issue, which as every investment bank has said would be the end of the world unless massive printing is permitted, Germany would rather kick countries out of the Eurozone instead of entering a hyperinflationary collapse. Perhaps it is now time for the banks to start toning down their language on the imminent destruction that would ensue if the ECB does not print, as this is apparently not happening...
The Dangerous Truth Behind Microwaves
(Mike Barrett - Activist Post) America’s most convenient appliance – microwave ovens are an absolute necessity in today’s fast-paced world. Microwaves are currently present in at least 90% of homes in America. They offer a simple and extremely rapid way to cook or reheat food or liquids.
The majority of people use this kitchen appliance without question and think they are no more than a simple alternative to conventional ovens for when they don’t feel like cooking or need food fast.
However you may want to think twice before using your microwave, as it could be one of the worst things YOU do to your food.
Friday, November 18, 2011
Scientists Turn Brain’s Visual Memories into a Mind-Blowing Video
Ever dreamed of recording your dreams and turning them into a video clip? The technology that enables you to do that is near: UC Berkeley scientists figured out a way to turn the way our brains interpret visual stimuli into a video, and the result is amazing.
To be able to do this, the researches used functional Magnetic Resonance Imaging (fMRI) to measure the blood flow through brain’s visual cortex. Then, different parts of the brain were divided into volumetric pixels or voxels (the term might be familiar to those who remember early 3D games which were based on voxels instead of polygons which are more commonly used today). Finally, the scientists built a computational model which describes how visual information is mapped into brain activity.
Report: Russia warships to enter Syria waters in bid to stem foreign intervention
Syrian official says Damascus agrees 'in principle' to allow entrance of Arab League observer mission; 22-member body proposed sending hundreds of observers to the to help end the bloodshed. By Jack Khoury and Haaretz Tags: Syria Arab Spring Bashar Assad
Russian warships are due to arrive at Syrian territorial waters, a Syrian news agency said on Thursday, indicating that the move represented a clear message to the West that Moscow would resist any foreign intervention in the country's civil unrest.
What price the new democracy? Goldman Sachs conquers Europe
While ordinary people fret about austerity and jobs, the eurozone's corridors of power have been undergoing a remarkable transformation
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