Meloni Strikes Back: The SUM Report 11-20 | QPOL Issue #22
"Stuff U Missed" - A Brief Summary of the Week's Top Events in Macro/Geopolitics
Meloni Strikes Back
Russia Under Rhetorical Attack
Lagarde Gets Whacked
Meloni Bites Back
The video above reveals Italian Prime Minister Giorgi Meloni has single handedly exposed the EU oligarch class of their colonial exploitative actions.
Her speaking out was a reaction to EU attempts to make her look evil by denying boats of immigrants into Italy. Macron had virtue signaled that Italyâs far right government was evil, but now she has political support for budget talks and shows Davos is on the backfoot and that the âgood guysâ are winning.
By exposing European colonialism she has set things in motion to finally discuss budget cuts for not on Italy, but the rest of European countries. The idea of the EU was a destined to fail. You simply can not homogenize a variety of different unique cultures under one rule of law. Not everyone in Europe is on board the Davos train and many want to preserve what they have that makes them what they are. Standing up against budget talks is just step one for Europeans to face Davos economically. Hopefullly Meloniâs courage of standing up for national soverignty against globalists rubs off on the rest of European leadership.
So, Meloni is proposing nations stop using economic hitman tactics on third world countries?
Based.
Russia Under Rhetorical Attack
Since the beginning of last week the narrative of the state of the Russia/Ukraine war has morphed as such.
Ukraine is going to pull back from the war in the winter to prep more against he Russians
Ukraine attempts at a false flag to pull the US into a war to finish off the Russians for them
Russia is trembling in their boots and desperate to win this war because they sold a daily record of debt ($13.6 billion)to China to overcompensate their lack of preparedness
The cope is real.
There is clearly some twist of narrative happening here. First off, the idea that issuing these bonds was more expensive than they thought is far from an issue.
What this really means is that Russia was able to go to the sovereign debt markets and were able to sell $16.6 billion of sovereign debt. This means THEY ARE NOT ISOLATED and that even if they donât have support from the West, they do have support from the rest of the world (BRICS).
In June Russia had only anticipated $500 million and ended up selling $1 billion because they were that over subscribed. They have only benefited from the sanctions and are operating at a surplus.
This is how the ruble has been so strong. They run a trade surplus and the profit China has in rubles is going to Russia treasuries. Russia is self reliant. Theyâre not isolated from global markets, theyâre isolated from Western marketsÂ
Russia and the BRICS nations have become so independent that they are now studying the possibility of refusing to settle foreign trade contracts in dollars. Among the alternatives are a basket of currencies, as well as "exotic" options with gold and oil.â
The success of BRICS goes to show that theyâre independent and are ready to fully separate from the West without having to fight a war for it. However, Davos is blood thirsty and power hungry, and wonât stop until they have their world island.
Lagardeâs Getting WhackedÂ
Reuteres reported âECB begins great cash mop-up as banks repay 296 billion euros of loans.â Simply put, Banks are paying back thier covid loans. Essentially what this means is that Lagarde will have enough liquidity ammo needed to manipulate markets in he ECBâs favor.
Since the Fed raised 75 bips, the MSM narrative is that the Fed canât raise anymore because he markets have done well relatively (which just gives the Fed even more room to raise rates againâŠ).
The peice explained that âThe move is part of ECB efforts to fight record-high inflation in the euro zone by raising the cost of credit and it is its first step towards mopping up even more liquidity next year by trimming its multi-trillion-euro bond portfolio.â
Whatâs happening is that because the Fed keeps raising rates, Lagarde is running out of options. Sheâs being forced to tighten via drawing the nearly $300 billion of liquidity from the banks. Similar to the reverse repo facilities, sheâs removing reserves which is destroying leverage.
Another speculative possibility Lagarde might do - the $296 billion in TLTRO is eurobanks paying back loans and that money will be used by the ECB to buy up eurodebt. The significance of this is they have to pull back on euro liquidity in order to keep the USD from rising too fast and avoid hitting parity with the dollar. Basically Lagarde is using magic BS trading skills to hide how weak the EU economy really is on paper to prevent capital flight from flooding into the US. That capital flight is inevitable, especially as the Fed continues to raise rates. Just ask Fedâs BullardâŠ
~ Phil Gibson