Financial Wars 110712: mirabile dictu murders Euro and rapes 10-year Italian bond

"Video meliora proboque, deteriorate sequor." Ovid Metamorposes vii.20. Medea suddenly understands she should not betray her father and assist Jason, with whom she has fallen hopelessly in love, to gain the Golden Fleece, but she cannot help herself. [See, Morewood, J. (1998) A Dictionary of Latin Words and Phrases, pp. 185-186.]

1. We presume the new head of the IMF Christine Legrande is a highly trained lawyer who carefully chooses her words for rhetorical effect. For what is a lawyer who is witness to the truth and cannot convince the jury of such?

2. Last night, she is quoted as saying, "nothing should be taken for granted on Greece," and the USDEUR immediately lost 60 pips. [See: http://www.zerohedge.com/article/eur-plunges-after-lagarde-intimates-greek-bankruptcy.]

3. On the Italian front, short selling has been curbed after its 10-year bond hit 305 basis points over the comparable German bond. This is a record high spread since joining the Euro. [Ibid.]

4. One more day or so of financial war managed badly by the IMF and the ECB, and you know who the major beneficiary is of all this "n-Lehman-cubed" panic will be? Have you ever heard of the ESF? The Exchange Stabilization Fund? I dare not give you references because it all sounds like nutty fruitcakes. Even without the ESF, the relative-beneficiary of relative-chaos is the good ole USD. Yes, the same one where the theatre of Obama the great conciliator makes the Republicans and Democrats hold hands, kiss, and then do unnatural acts to each other under a raised debt circus ceiling, so in the end the Greatest Ponzi Scheme the World Has Ever Seen can continue a few more months.

5. Moral lesson: curb your exposure to nonsensical fiats and fascistic monetary policies for they kill our children. Do the obvious good thing and perform a random act of kindness today.