I’ve had the last four Natty Greene’s Pale Ales and a few drams of Scoresby. The Wife is watching 27 Dresses and I’ll server dinner in a minute. I spent the day running errands and catching up on laundry and the dishes. I also cut my hair, which is something I do now with a pair of Wahl clippers. I’m getting pretty good at it and no longer have to pay someone to botch the job and then fix it myself.
I’ve spent some time trying to understand what is going on with the Bundesbank and the bund. Apparently, they held an auction today and no one showed up. Since the Swiss pegged their Franc to the Euro and began a QE program similar to our Fed, the bund has been the refuge of choice for what I’ve come to understand may be everyone bailing on the PIIGS, as well as the Bank of England and our own Fed.
From what I can tell, the EU is the subject of a pitched battle between the agents of Goldman Sachs and the Krauts. People are saying that if Euros are swapped for newly printed Deutsche Marks, the Euro will drop 30-40% in value. This is highly ironic in that Deutsche bankers regularly flew into PIIGS capitals and sold smelly junk they were forbidden to sell at home, largely contributing to the inevitable failure of their EU brethren.
If this is true, then it would seem that WWIII has already been fought and the Germans won. There is still some whimpering going on about the creation of a Euro bond, but the dissolution of the Euro, and indeed the EU, seems to be a foregone conclusion as sovereigns nationalize their banks, exit and begin printing drachmas, lira, pesetas, escudo and punts.
Whatever happens, and I don’t pretend to understand it all, it is terribly interesting. And it appears that all the Europeans, with the exception of the Germans, are about to take a severe hair cut. I like a #3 on the sides and a #8 on top.