AT A LOSS

The horrific acts in Brussels today are mystifying.  That humans would act in this manner toward their own kind defies rational understanding.  But rather than focus on what cannot be explained it is also remarkable to note the reactions from leaders of the world and leaders of business to these events.  The Leader of the Free World goes to a baseball game with a murderous thug who with utter contempt rejects any thought of releasing his people from a totalitarian rule even in the face of a gentle nudge from his guest.

Had Il Duce cut off his visit and immediately returned to the U.S. it would have made no difference in the continuing events to be sure, but the absolute lack of understanding what his refusal to so do in an symbolic sense is quite mind-blowing.  A member of NATO had just been attacked by a group of madmen who call themselves a nation.  It would be altogether proper for Belgium to invoke Article 5 which it still might do, but the President is so unconcerned regarding the threat he goes to a ball game messaging the world that a fifth-rate nation run by thugs is more important than a NATO ally and significantly more important to his own self-absorption.   The timing of the attack might have been influenced by the recent successes of the Belgian security forces but the loci of the assaults were not.  These were attacks not just at Belgium but at the center of European governance and the NATO command.  In the Middle of Holy Week.  It is really quite brilliant.  Europe, being torn asunder by the refugee crisis created in great part by the same terrorist organization has everything now multiplied by this act of carnage.  Already are fears being raised that this is the final nail in the coffin of the EU.  And Obama is at a ball game...in Cuba...with Raul Castro.

Perhaps I am too critical of Obama because people who should know better reacted in much the same way; the markets did nothing.  The DOW was down a bit; NASDAQ was up a bit; commodities did little if anything and bonds were of little interest.  There was one movement that was noted: the Pound was crushed.  I would be willing to speculate that in the high street betting shops the odds for BREXIT just shortened considerably and will be shorter tomorrow.  If the vote is "yes," David Cameron is gone, heavens knows what happens then and the EU is effectively finished.  I am at a loss to explain any of this.  By the way, does anyone know how the game ended?

EUROTHROAT CALLS

My main man called over the weekend. He resides in Brussels for his sins but gets paid a bundle from the Commission. It's a nice life and he's on the inside. I've Americanized the content to protect the guilty.

"Well, I've been calling you for two days. Where the hell have you been?"

"Charlie, Charlie, relax. This has been a tough week."

"I'm in tears. What happened?"

"Well, as you Americans like to say, it was a food-fight at dinner. The Germans were being German, the French were being superior, the English above the fray, the Spanish somewhat irate, the Greeks contrite and the Irish very Irish, spoiling for a fight."

"Yet reports have an agreement being reached."

"Oh Charlie, you know better than that. It was midnight, everyone was most tired and what was put out was a series of unconnected dots, left to be connected in two weeks time. The Greeks got a bit but not enough. Frau Merkel made encouraging noises as to what she was prepared to do IF...and it is a bigger if than one would think...all affected parties do would she wants."

"...And will they?"

"Well, that remains to be seen, but I must say the new Irish on the block simply dug in their heels."

"On the tax question?"

"Indeed, as you predicted, and of course we are now in the game...what do you call it...chicken? We want them to raise the corporate tax rate and they keep reminding us about their banks all of whom owe the continent a lot of money so why should they continue to bail the continental banks out? Is an interesting question, no?" We like our banks just as they are.

"Yes, and shall remain such. And the rest..."

"Ha! The Greeks get a little break but the Portugese yield is now 12% which of course cannot last but about that, no one is talking. But Trichet seems to be saying if you issue, we will buy. Sounds like your man although Trichet even said he may buy direct..."

"I can get it for you wholesale."

"What?"

"Never mind, an old American joke. So what happens in 10 days?"

"I don't know, but funny is it not. They are speaking, not with one voice but they actually said some things I did not expect so maybe they can find one voice in the time up to the next meeting."

"Prediction?"

"I think not. More talk, that's all. We speak as the European Union but we are seperate countries still. How you say, old habits die hard? We still don't really trust each other. It is not like a political disagreement, it is the national psyche syndrome. But the one thing they agree about is that you are no help. I tell you, you say Bernanke and people just shake their heads. No one can understand his positions and why he seems not to listen. This is bad, Charlie, it really is. It should not be so."

"I'm told a lot of people involved here feel the same way. Just don't blame us for your home grown problems. Listen, thanks for the update, I appreciate it."

"I know, Charlie, on this you are right. Spring is coming, Charlie, come visit. Brussels is good in the spring."

"Almost everywhere is good in the spring my friend, but Brussels is too expensive."

"Which is why they pay us so much, Charlie. Life is good."