LLOYD’S OF LONDON PULLS DEPOSITSSeptember 30, 2011
In case you missed this one on SeeBS, Faux News, CNoNews, or any of our other wonderfully informative media in this country, Lloyd's of London has pulled deposits from several major European banks:
What's very interesting about this article is to read between the lines a bit, for nowhere do we read exactly where Lloyd's is pulling its deposits from. All we get is this curiously-worded couple of paragraphs, but, for me, they are the central points of the article:
"European banks and their regulators are trying to reassure investors and customers that lenders have enough capital to withstand a default by Greece and slowing economic growth caused by governments’ austerity measures. Siemens AG (SIE), European’s biggest engineering company, withdrew short-term deposits from Societe Generale SA, France’s second-largest bank, in July, a person with knowledge of the matter said yesterday.
"Lloyd’s, which holds about a third of its 2.5 billion pounds ($3.9 billion) of central assets in cash, has stopped depositing money with some banks in Europe’s peripheral economies, Savage said, declining to name the countries or institutions."
I hope you just caught what is being implied here, for "peripheral economies" normally conjures in the mind Greece, Italy, Spain, Ireland even, but not France, one of Europe's only two thermonuclear powers (that we know about anyway, though I've long had my suspicions about you-know-who, not withstanding their official pronouncements to the contrary). Siemen's move out of the Societe Generale SA is a significant move, and it may presage a new reassessment of that once-mighty economy in Europe. And note, too, that the European Central Bank is based in Frankfurt-am-Main, where it has been floating short-term low-interest liquidity loans (a liquidity providing "operation, "as the article calls it), to unspecified recipients, suggesting strongly that someone, somewhere in the "peripheral economies" of Europe is in a whole lot of trouble.
The whole notion of "core" and "peripheral" economies recalls the historiographical analysis of Georgetown History professor Dr. Carroll Quigley, as enunciated in his Evolution of Civilizations and his monster 1300pp tome, Tragedy and Hope: A History of the World in Our Time. There, the "core" areas of Western civilization were the USA, UK, and France, for a variety of economic, financial, and cultural reasons. The redefinition, and the implied demotion, of France from "core" to "peripheral" status that is suggested in this article quite frankly unsettles me tremendously, for in the postwar scheme of geopolitical reality in Europe, France was a necessary and important counterpoise to Germany, to the UK, and, as many an American president discovered, an oftentimes irritating friend.
The long and short of it is, friends, that it would appear that we should now be watching, not Greece, or Italy, or Spain, but France...