Nov 30, 2010

A Prostitute's Guide to Getting Into a Silvio Berlusconi Sex Party

From GawkerTue Nov 30, by Maureen O'Connor
A Prostitute's Guide to Getting Into a Silvio Berlusconi Sex Party

Another day, another Italian prostitute telling stories about Silvio Berlusconi's sex life. The latest lass claims she earned €10,000 ($13,000) for two nights of "bunga-bunga" bliss, then explains exactly how she got into the Berlusconi orgy business.
28-year-old prostitute and aspiring "television showgirl" (that's European for "fameball") Nadia Macri is back! She first surfaced with claims that she merely attended Berlusconi's parties. This time around, she explicitly says she got paid for sex—and explains how you, too, can sell yourself on the Berlusconi sex market:
1. Go to Italy. Stand Around Looking Hot. Quoth Nadia: "I was in a car one night in Milan when I stopped at a traffic light. A man stopped me, he was in his 30s and he was a good looking guy and we started talking. He asked if we could talk so we did and he said did I want to make some money by meeting important people. He said I could earn €5,000 ($6600) by meeting important people like the Prime Minister.''
2. Use Berlusconi's Secretary as Your Madame. "I gave my number to Berlusconi's secretary, I can't remember her name, she was his organiser and she said I would be called again. I was called on my mobile by Berlusconi."
3. Suppress Giggles When Silvio Gets Corny. "He said 'I am the dream of Italians' I said, 'who is this ?' and he said 'It's the Prime Minister of Italy.' It was a beautiful moment to get to know him."
4. Try Not to Barf When You See How Young the Other Girls Are. "The girls were young and it didn't sit easy with me. It reminded me of the Noemi [Letizia, the teen daughter figure-turned-sex partner at the center of his divorce] episode and I remember thinking so there are young girls."
5. Wait Your Turn. At one party, "girls had queued up for him" in the swimming pool. Once you're in, it's just a matter of time. Sit back, relax, and enjoy some of the "grass available in all rooms" of Berlusconi's pleasure palace. He'll get to you soon enough. [Telegraphimage via Nadia Macri's Facebook page]
Send an email to Maureen O'Connor, the author of this post, at

Bankster scam of the day

A significant number of people being foreclosed on HAVE NEVER MISSED A PAYMENT. Banks delay processing payments to incur late fees unbeknownst to the borrower (UBTTB), which fees are fraudulently deducted from the next payment UBTTB, which incurs more late fees ..., which results in a foreclosure.

Europe is an economic trainwreck ongoing - Proof That Ireland Will Have To Default

Just in from ZeroHedge

The BoomBustBlog Ireland Haircut Model has been posted, and it is a
doozy. For those who anticipate the Euro being a slow train wreck, it
may not be so slow after all. The haircut model is SOOOO damn revealing that I can't keep it all to
just site subscribers, thus I have pulled a few bits and pieces out for
the general public. Professional and institutional subscribers
can access it here as a live, spreadsheet embedded into a BoomBustBlog web page. Other users can subscribe or upgrade to gain access.

As any who have been following me know, I believe that several
European countries are bound to default, ie. restructure their debt.
Ireland is in that camp. What makes me so sure about this? Well, its
simple math. I can illustrate incontrovertible evidence that shows that
Ireland is on an unsustainable path - a path made even more
unsustainable by the recent bailout.

Let's take a look at the cumulated funding requirement of Ireland over the next 15 years.

As you can see, the amount Ireland would have to borrow to run the
country (even after harsh and punitive austerity measures) is literally
more (and substantially more) than the country's projected GDP. These
GDP projections are (in part) IMF projections which I have already
demonstrated to be grossly over optimistic, see Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!).
As a matter of fact, the tab for Ireland is even greater AFTER the
IMF/EU/Bilateral state leveraged into Ireland loan/Pension fund raiding
bailout! This is what happens when you try to save a debt laden country
with more debt!

Even after the IMF/EU/Bilateral state leveraged into Ireland
loan/Pension fund raiding bailout, Ireland is forced to raise an
unsustainable and most improbably 110% of its GDP from the debt markets.
These debt markets are starting to become highly uncooperative.

Over the next year, Ireland would have had to tap the public markets
for between 15 and 20% of its surplus cash flow. Again, unsustainable,
and probably not doable in this environment either.

This is why the IMF/EU/Bilateral state leveraged into Ireland
loan/Pension fund raiding bailout was implemented. Let's not get it
twisted though. This is not a solution, nor a cure - it is a method of
buying time. It is the European version of what the Americans have been
doing for a few years, kicking the can down the road. Alas, the roads
are pretty short in Europe, at least in Ireland!

As reported by Bloomberg: Ireland Wins $113 Billion Aid; Germany Drops Threat on Bonds

European finance chiefs ended crisis talks in Brussels yesterday by endorsing a Franco-German compromise on post-2013 rescues that means investors won’t automatically take losses to share the cost with taxpayers as German Chancellor Angela Merkel initially proposed to the consternation of bond traders.


Germany, which built the euro on the principle of budgetary rigor, unleashed
the latest phase of the crisis by demanding a “permanent” system as
of 2013 that would enable fiscally troubled countries to restructure
their debts and cut the value of bond holdings

The German push ran into criticism from policy makers elsewhere, who called it mistimed, and from European Central Bank
President Jean-Claude Trichet, who warned it would unsettle
bondholders. Merkel, who has faced domestic criticism for aiding EU
neighbors, yesterday backed away from the pitch for an automatic
penalty, agreeing to give the International Monetary Fund a role in
determining losses on a case-by-case basis.

The new proposal, fast-tracked from a debate set for December, would
introduce “collective action clauses” for debt sold as of 2013,
enabling fiscally hard-hit governments to renegotiate bond contracts.
EU governments aim to enshrine it in the bloc’s treaties by mid-2013
and pair it with a new emergency liquidity fund to replace the one
expiring then.

yesterday called the compromise a “useful clarification” and the ECB’s
Governing Council said in a statement that the Irish program will
“contribute to restoring confidence and safeguarding financial
stability in the euro area.”

The text above came from the post wherein BoomBustBlogger Nick asked:


Do you have any reason as to why they are choosing 2013 as a deadline ? Seems like an arbitrary date.

Well, Nick, just follow the money or the lack thereof...

So, what debt raising and servicing that was unsustainable in 2010
was lent even more debt to become even more unsustainable. The chickens
come home to roost in 2013, post IMF/EU/Bilateral state leveraged into
Ireland loan/Pension fund raiding bailout! What Angela in Germany was
alluding to was what all in the know, well... know, and that is that
Ireland is already in default and those defaults have been purposely
pushed out until 2013. Angela simply (and wisely from a local political
perspective, although unwisely from a global geopolitical standpoint)
admitted/suggested was that the defaults will be pre-packaged and
managed ahead of time. The EU politbureau insists that politics rule the
day, and no prepackaged structure be in place for the Irish defaults to
be. This means the potential foe even more carnage through the
pipelines of uncertainty!

So, what we have done with the Ireland Sovereign Debt Haircut Model was
to compare the unsustainable path that Ireland is on now (yes, with the
IMF/EU/Bilateral state leveraged into Ireland loan/Pension fund raiding
bailout) with 6 scenarios that have been used by other countries in the
past to cut their debt service. These scenarios entail:

  1. Restructuring by Maturity Extension
  2. Restructuring by Maturity Extension & Coupon Reduction
  3. Restructuring by Zero Coupon Roll up
  4. Restructuring by Maturity Extension w/Haircut
  5. Restructuring by Maturity Extension & Coupon Reduction w/Haircut
  6. Restructuring by Zero Coupon Roll up w/Haircut

Click image below to enlarge a screen shot of the model.

For those of you who are currently not subscribers (but are about to
hit that button momentarily), let's drill down into what Ireland's
prospects are sans a default/restructuring...

This is how we derived the first to colorful eurocharts in the beginning of the post.

Real World Examples of the Social Science Concepts Described in '

I described the Milgram experiments in the post above, and how the
leaders of Ireland have taken the place of the 'teachers' in said
exercise. I quote the post as follows:

similarities between “Teachers” referenced above and the leaders of the
sovereign nations in Europe, as well as the implications of
considering the “authority figures” referenced above as being the
defacto heads of mulit-national agencies such as the ECB and IMF are
literally inescapable to anyone who approaches this with a clear,
autonomous and objective mind. In other words, anyone not bound by the
straps of “authority”!

This is page 2 of our Subscription only Ireland Public Finances Projections Document, available to all paying subscribersFile Icon Ireland public finances projections.
If one were to exercise one’s imagination, one could cast the EIU and
the IMF as authority figures, and the Irish government as the
“teacher”. As you can see, Ireland’s (the teacher’s) view of their
prospects are much, much rosier than both the EIU and the IMF’s. So
rosy as to be probably unbelievable in many a context, including the
current one.

makes this so bad is that the authority figure’s, the EIU and the IMF’s
forecasts throughout this crisis have been so optimistic as to have
been downright laughable. I am offering this single page sbove to
those who do not subscribe to our services to fully drive the point
home that was so graphically illustrated in “Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!
(which is a definite “must read” in and of itself). Of course, our
internal team of analysts have come up with numbers nowhere as rosy as
the EIU, the IMF, nor Ireland’s. Go figure. Oh year, while you are
figuring, you should wonder who has been the most accurate over the last
three years – the IMF, EIU, banking analysts or BoomBustBlog. Here’s a cheat sheet.
As a hint to exactly why we would be more bearish than the EIU and the
IMF (despite the fact they have been consistently wrong to the
optimistic side since the beginning of the crisis) is a careful forensic
glance at how they (the authority figures), and Ireland (the teacher),
calculate Ireland’s debt. It is the farce as follows…

The Farce!

government has set up an asset management agency – NAMA, which will buy
toxic assets from banks at a discount and will in turn issue
government-guaranteed securities. NAMA was expected to buy about $81
billion of toxic assets at a price of $43 billion and issue
government-guaranteed securities in return. Since these securities have
collateral backing and are likely to be repaid through pay back of
underlying loans, these securities are considered off-balance-sheet and
are not part of general government debt by Eurostat. According to Davy
research, while the projected gross government debt excluding the
impact of promissory notes and NAMA bonds is 84.8% in 2012, including
the impact of promissory notes and NAMA bonds (in other words,
including the truth), the gross government debt can rise to 117.4% of
GDP. This either competes with or bests Greece, 2010’s poster child of
flagrant spending.

means that the teacher has created a very harsh austerity plan for its
“learner”/student/tax paying populace that has materially lowered the
standard of living – all based upon numbers that were bogus to begin
with. In other words, it ain’t gonna work!

original austerity plan was based upon pie in the sky numbers planted
in pure optimism, and those numbers themselves were based upon an
incomplete picture of the countries true debt. This has now come to
light as the country faces the prospect of having to again turn to
outside entities to assist in the bailing out of their banks. This also
wraps up all of the concepts described above in one fell swoop:
credibility – none, social proof – lacking, authority – acting in lock
step to the ECB/IMF.

It is not as if BoomBustBlog subscribers didn’t see this coming a mile and a year away – Many Institutions Believe Ireland To Be A Model of Austerity Implementation But the Facts Beg to Differ! We, at BoomBustBlog, have delved into this concept in exquisite detail in our Pan European Sovereign Debt Crisis series, particularly as it concerned nations such as Ireland.

I will
continue this Irish “mini-series” with a forensic look at the likely
haircuts to be taken by holders of Irish debt, a snippet of our Irish
public finances model, and then follow it up with a post on the likely
contagion and knock-on effects as we have calculated them.

In the meantime, I suggest that paying Subscribers review our Irish analysis and related contagion material:

There is
plenty (and I do mean plenty) of material for those who don’t
subscribe to see how the current Irish situation was essentially
manifest destiny (Euro-toxic asset edition), as excerpted from Many Institutions Believe Ireland To Be A Model of Austerity Implementation But the Facts Beg to Differ! Wednesday, April 14th, 2010

Related reading:

Erin Gone Broken Bank: The 2nd EMU Nation That Didn’t Need a Bailout Get’s Bailed Out Within Months, Next Up??? Monday, November 22nd, 2010

The BoomBustBlog Contagion Model: How We Predicted 9 Months Ago That The UK and Sweden Would Rush To Bail Out Ireland, and Why Friday, November 26th, 2010

Next, up we release BoomBustBlog currency models, secrets very few
know about the ECB and then we go after Spain with a forensic
microscope! We will then wrap up this chapter with a hands on
application of the BoomBustBlog Sovereign Contagion model


Breaking News: S510 has passed in the House of Senate 73-25 – bye bye to your right to grow your own food!

From Philip | 30 November 2010:
The Food Safety Modernization Act - an Orwellian name if ever I heard one - has just passed 73-25 in the House of Senate.
This bill puts grievous controls over the small-scale production of food, but leaves Mega-Agribusiness completely unmolested.
For those who are unaware of S510 (Formerly H.R. 2749 when it was before the House of Representatives), please see "H.R. 2749 / S510: Food Safety Enhancement Act of 2009" and "Senate Bill S510 Makes it illegal to Grow, Share, Trade or Sell Homegrown Food".
Once President Obama signs the bill, it comes into Law and Effect.
This is a very dark day indeed for America, and for those who believe it is their God-given right to have complete control over their own food security.
See C-SPAN for further details.
UPDATE: Senate Voting Record - so you know who the Traitors are.

Gold at All-Time Highs Against Euro (Roubini Vomits)

From Economic Policy Journal, NOVEMBER 30, 2010

All this EU bailout talk can actually turn into reality with heavy ECB printing of euros. The gold spike (in terms of the euro) is saying the market understands this. 

It seems everyone is buying gold, except Nouriel Roubini. And he's not buying because you can't put it in a ham sandwich. Nouriel Roubini:

"You can't eat gold."

I once ran into Roubini in NYC, when he was still a cab driver, and tried to explain to him that just because you can't put something in a ham sandwich doesn't mean it can't have value, but I guess for him he's keeping his money in the form of ketchup packets. 



Euro Gold Hits New Record High as "Too Big to Bail" Risks Infecting German Bunds

Gold In Euros Breaks Out, As Inedible Metal Hits All Time Highs In Europe

With all the debate over which European country will default first, many are reminded that precious yellow metals, especially in physical form (and perhaps due to their inedibility), never default. This morning Europeans once again are reminded that the best performing asset in 2010, on an absolute and relative basis, continues to be gold, as EUR-denominated gold passes its all time high yet again. Luckily some of them have taken our advice over the past 2 years to move away from paper assets and into something tangible. For everyone else, may we suggest some ketchup with that semi-illegal €500 euro bill. Next up: look for a run at all European precious metal retailers and distributors just like in May and June, and more positive pricing feedback loops now that a defeated Blythe Masters is expecting her pink slip to arrive any minute.

GOLD CRAZY: New Wave of Chinese Money Is Set to Slam The Gold Market

Lion Fund Management Co. will raise up to $500 million in China to invest in overseas exchange-traded funds backed by gold, the first in the country be approved to do so, a company executive said today.

The fund manager has received approval from the State Administration of Foreign Exchange and the China Securities Regulatory Commission, Yang Zi, an executive at Lion Fund's marketing deparment said by phone from Beijing. Institutional and retail investors can buy into the fund via banks, she said.

"We will be the first fund in China to offer an access to invest in overseas gold-backed ETFs," Yang said. "Given the inflationary environment we are in right now, Chinese investors have great enthusiasm for gold investments."

Easy Orwellian prophecy of the day

From The Burning Platform, 30th November 2010 
by Reverse Engineer 
As we observe today the Italian Bond spreds widening to Grand Canyon dimensions and the Asian Markets dropping into Free Fall, I thought I would ponder on what the most likely scenario is here in the FSofA as the current Fiat Dollar goes the way of the Dinosaur. Will we have Mad Max? Will there be a complete collapse of the Industrial Food apparatus an mass starvation? In the short term, I don’t think so.
The most likely scenario right now is for a command Economy to be put in place once this Fiat regime crashes. What does this mean for most people?
For the truly poor, life won’t change that much, though their SNAP cards will buy progressively less food stuffs as many expensive to produce foods disappear off the shelves. However, the Fascist Goobermint will continue to provide basic levels of food sustenance to the population as a whole for a while yet to come. This prevents the society from devolving to Mad Max.
Life will change radically however for the former Middle Class and the Medium Rich. All their Investments and Pensions will be Wiped Out. All businesses still operating will be Nationalized and brought under the umbrella of large Corporations controlled by the Plutocracy. Large scale Workfare Programs will be instituted for all able bodied people. Retirees will be given a small Pension sufficient to keep them fed. Housing will be assigned by Da Goobermint.
A small cadre of well connected current Billionaires will manage the economy, for as long as they can maintain control. Anyone else holding any private wealth of any kind will see it confiscated, whether it is in the form of Gold or Land. The economy will devolve to a dichotomy of a very small number of Plutocrats and everyone else desperately poor and dependent on Goobermint handouts and Goobermint Jobs.
Suburbs will mostly be abandoned, and most people will migrate toward central zones where there is Food distribution. This may or may not be inside the Big Shitties. Suburban services such as water and power will be cut off, forcing most people to abandon their McMansions. Gas will be unavailable at any price as Convenience stores everywhere shut down. Fuel for transportation will be Rationed, private cars of any type will just sit and rust.
Doomsteaders who have their own farms will be Taxed on their produce. They will be directed by Da Goobermint to raise specific crops, with GMO seeds provided by Monsanto. They will gradually be dispossessed of their Doomsteads by Da Goobermint.
There will of course be Insurrections during this period, and they will be unmercifully CRUSHED by Da Goobermint, for as long as Da Goobermint an maintain a logistical supply of fuel to the Military units designated for control of specific geographic areas. This period could last quite some time, 50 years is possible here. Shorter is more likely though, and once the military no longer can effectively maintain the mechanized Police state apparatus, Insurrections will become more successful. At this point Goobermint will become more Local.
Ever decreasing Food Prodution through this period will result in Famine and Die Off in each cell of the population, some places faster, others slower. A variety of means will be applied to manage this die off. In many places, older retirees will be Gassed or given Lethal Injections. In others, the Genocide will be undertaken on Racial or Ethnic characteristics.
As the population diminishes, more systems will fail, leading to another round of Die Off, though in all likelihood there will be a lull and even perhaps a brief expansion again after about 25% of the population is exterminated.
This is the most likely scenario I can conjure up for the next 50 years or so. Rough times ahead, to be sure.