Goldman's "Conspiracy Theory" Stunner: A Greek Default Is Precisely What The ECB Wants

Last week, we showed a curious thesis by Goldman, which asked if there is a new and "ominous" development in European currency swings, namely the emergence of what may be a "under the table" fight between the ECB and the Bundesbank on which bonds to monetize.

This is what Goldman said then:

the average maturity of ECB bond buying is around 8.0 years, in line with what Executive Board member Coeure said in his May 18 speech. However, while Italy and Spain see purchases that have an average maturity above that of the outstanding debt stock, Bundesbank buying has fallen short from the very beginning.... This kind of signal – from the key hawk in the Eurosystem – has the potential to undercut the credibility of ECB QE, since it weakens the portfolio balance channel.

Μυστικές συναντήσεις Ολάντ για το ενδεχόμενο Grexit

O Γάλλος πρόεδρος, Φρανσουά Ολάντ, οργάνωνε το 2012 μυστικές συναντήσεις μεταξύ Γάλλων αξιωματούχων, αλλά και με τη γερμανική αντιπολίτευση, χωρίς τη γνώση της καγκελαρίου Ανγκελα Μέρκελ, για να συζητηθούν οι συνέπειες από μια πιθανή έξοδο της Ελλάδας από τη ζώνη του ευρώ. Αυτό τουλάχιστον προκύπτει σύμφωνα με έγγραφο της αμερικανικής Υπηρεσίας Εθνικής Ασφαλείας (NSA) που έδωσε στη δημοσιότητα το Wikileaks.

WikiLeaks Files Said to Show N.S.A. Spied on French Leaders

WikiLeaks published documents late Tuesday that it says shows the United States National Security Agency eavesdropped on the last three French presidents.

There was no immediate confirmation of the accuracy of the documents released in collaboration with Libération, a left-leaning French newspaper, and the investigative website Mediapart.

Danish election results reflect a domestic identity crisis

Last week’s Danish election results, which saw the ruling Social Democrats ousted by a centre-right coalition that includes the far-right Danish People’s Party (PPP), reflect a growing domestic crisis of identity. While not unusual at the level of European national politics, the trend towards Euroskeptic populism is a signal of dissatisfaction with Denmark’s political governance.

Beyond Propaganda

This essay is adapted from the first in a series of publications by the Legatum Institute’s Transitions Forum on the politics of information in the 21st century.

Pity the poor propagandist! Back in the 20th century, it was a lot easier to control an authoritarian country’s hearts and minds. All domestic media could be directed out of a government office. Foreign media could be jammed. Borders were sealed, and your population couldn’t witness the successes of a rival system. You had a clear narrative with at least a theoretically enticing vision of social justice or national superiority, one strong enough to fend off the seductions of liberal democracy and capitalism. Anyone who disagreed could be isolated, silenced, and suppressed.