Pater Tenebrarum's Blog

We previously opined that it would be very difficult to impose losses on subordinate bank creditors in Spain, because many of the holders of subordinated securities in the capital structure of Spanish banks are their own retail customers.

The problem is not necessarily that the German course is 'too strict', the problem is the lack of unanimity regarding the way forward and the slowness and uncertainty attending the ratification and implementation of agreements.

Below are two videos showing the second session of Keith Weiner's presentation on irredeemable paper money versus gold.

Economic data releases from Spain have one thing in common lately: they are all 'worse than expected'. Even data that were in fact expected to be atrocious surprise by being more atrocious than previously imagined. The latest example is the reported decline in retail sales of 9.8% year-on-year, a new record.

The year 2007 changed real estate forever. For the first time in modern history, not only have real estate prices since then declined, but it is a prolonged decline and one of substantial magnitude.

Rumors have been making their way over the wires on Tuesday that the four largest Greek banks will receive € 18 billion in the form of 'EFSF bonds' on Friday in a first tranche of the recapitalization effort that is part of Greece's latest bailout deal.

On Monday, May 14, something happened that hasn’t happened since Dec of 2008. Two successive near-month precious metals futures contracts were in backwardation at the same time. To oversimplify, backwardation is when the price of a futures contract is lower than the price in the spot market.

The complexity of global economics has gone beyond comprehension. It can no longer be explained by any of the mostly western based and now obscure mainstream economic theories. Central bankers are in denial...

Argentina is one of the few countries where the oil industry was not yet fully nationalized, as if that were a bad thing. The reality of the situation is that the high share of government control all over the world over the oil industry has created a major supply problem, as governments can not possibly 'manage oil companies professionally'.

From 1933 until 1975, one could be imprisoned for the “crime” of possessing gold. To this day, it is not legal for a creditor to demand payment in gold. If you are so confident that you are right and all good men should be happy that you print dollars at your discretion, can we agree on an experiment?