Thursday, January 19, 2012

" Curses are like a bird that returns again to his own nest !

Stated another way - chickens coming home to roost ! First example is Croatia - why for the life of me would any country - fully observant of the austerity and draconian measures presently imposed upon Greece by the Troika , willing ask why do I sign up for membership ? Well Croatia seems to be willing to take the plunge and their commerce will suffer. Chicken farmers will be the first to see the chickens come home to roost but may find the chickens roosting come from italian producers. and welcome to EU rules and regulations which will increase the costs for Croatian farmers . Yet the Croats still probably will vite yes - I say don't complain for something you've willing signed up.

Thanks to massive propaganda, Croatia is foolishly about to join the EU. Chicken farmers (Croatians in general) are about to pay a steep price.

And how could we miss Greece when considering chickens roosting back at the ole homestead ? While the ongoing imminent conclusion to negotiations  ( maybe Monday they say now ) that have gone on and on for months , chickens may be coming home to those opportunistic hedgies ! As noted in the piece below , the IMF wants the coupon on the new bonds to not exceed 3 percent - well below the interest sought by the IIF ! And at 3 percent coupon ( which would assist Greece somewhat in lightening its debt load - of course the IMF and ECB could REALLY help Greece by throwing their Greek bonds into the haircut pot , but that's not presently on the table .) With hedgies stating they won't settle for a haircut exceeding 50 percent , how does Greece avoid forcing agreement with a Collective Action Clause being retroactively imposed by law ? Well , hedgies might just get to try out that human rights argument , as their gambit to buy bonds and seek full payment might come home to roost !

Late on Thursday Venizelos and Prime Minister Lucas Papademos met again with the head of the Institute of International Finance (IIF), Charles Dallara, for the completion of the agreement.
Sources said Dallara discussed his new proposal that provides for an average interest rate of 4.25 percent for the new bonds Greece will issue to replace the old ones, leading to 68 percent losses in net present value terms for bondholders.
The IIF proposed a coupon of 3 percent for bonds maturing until 2014, 4 percent from 2015 to 2020, and 4.5 percent for after 2020. For the latter, the proposal includes a rate surplus based on the country’s growth rate. Bondholders are also asking for European Union guarantees for the new bonds.
Before his meeting with Venizelos and Papademos, Dallara told journalists that he hoped the negotiations would quickly lead to an agreement.
Bank officials noted that there have been some substantial and in-depth negotiations in the last few days, and expressed their optimism for an agreement. However, they added that for a deal to be reached, the International Monetary Fund and the eurozone, and Germany in particular, will have to accept interest rates that can support the voluntary character of the agreement.
The IMF, sources say, is firmly insisting that the new bonds’ rate not exceed 3 percent, so that the haircut can lead to a substantial lightening of the debt load for Greece.

And in italy , we see chickens coming homeward bound - as italians pay the price for allowing their country to fall under the control of a Troika installed puppet ! How long before Italy falls totally under the control of the Troika - who knows for sure but the chickens are clucking softly in the distance - soon those sounds will be much closer. Petrol shock as service station managers close their stations doors for ten days , meanwhile Troika puppet Monti tries to peddle Austerity chicken pot pie !

Finally , as we count the chickens coming home and wonder which " other event " will occur next , just note that Special Forces Operatives are operating in the gulf - near Iran. In light of the present tensions , various exercise have taken place , planned to occur ( by both Iran and Israel / US forces ) , throwing more tension into a strained situation could be another bunch of chickens walking around clucking..... we can assume Special Forces are in hot spots around the globe - but why advertise this fact ? Be careful what you agitate for is what I suggest.

Tensions between the U.S. and Iran are at a high point, as the Islamic Republic threatens to close off a vital waterway and two U.S. aircraft carrier battle groups sit in the seas off the Iranian coast. But across the Persian Gulf, the U.S. has a previously unacknowledged weapon in reserve: a new special operations team.
Danger Room has confirmed with the U.S. Special Operations Command that a new elite commando team is operating in the region. The primary, day-to-day mission of the team, known as Joint Special Operations Task Force-Gulf Cooperation Council, is to mentor military units belonging to the U.S.’ oil-rich Arab allies, who collectively are known as the Gulf Cooperation Council. Those Arab states consider Iran to be their primary foreign threat.
Chickens clucking all around , looking for their nests. Be vigilant as things are moving faster than they appear.......