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Another day, another buildup to another summit that will fail miserably due to Germany not being on board. Any kind of bond sharing has been ruled out by Germany without the surrender of national budget sovereignty. Greece’s plan to make their austerity terms less onerous is doomed before it begins, as Germany is totally uninterested in lightening the weight of reforms.

Any chance, however tiny, that Greece had of renegotiating is possibly on the ropes as Greece’s Prime Minister and Finance Minister definitely won’t make it to the summit. Not that Greece even has a Finance Minister yet.

Spain has officially, sort of, asked for a bailout, though they’re not entirely sure how much money they’ll need yet, besides “lots”. Cyprus immediately joined them in the queue, implying that China and Russia weren’t willing to write a check to bail out the island nation’s doomed banks. Spain is rushing in new controls on cash transactions and foreign accounts, perhaps to put the squeeze on their “bank joggers”. The problem with these “tax evasion” methods is that they’re indistinguishable from the steps you would start taking to lock down the movement of money prior to a redenomination, so the more you try and fix the problem (tax evasion) the more people start sweating and bank jogging, and thus the more false positives you get (nailing people for “tax evasion” who had no intent to defraud the government, just to avoid being defrauded by the government) which makes people think that the tax is bullshit which makes it more acceptable to evade taxes which…

Is it any wonder that Switzerland is filling up with cash and gold?


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