Postcard from Europe

Well, TMM have been fairly quiet recently, since their opinions have not changed much and because waiting for resolution in Greece is like waiting for Godot. We still don't love bonds as a long-term trade here, though the merits of a short term deflation trade are not lost on us, as we are also loath to rule out panic buying of USD. We knew the data would get bad, but, suffice it to say, the slope of descent has caught us by surprise, perhaps accelerated by all things Euro. We still like selling AUD/Asia and selling eurobanks. Aside from that, for every seemingly smart trade you have to weigh the indisputable good sense of being in it versus the fact that everyone IS in it and we could see some messy deleveraging if Greek politicians don't come together. To that end we're still pretty heavy cash though we have the kevlar gloves in the draw if things do get exciting.

For now we will leave you with a postcard from Europe that we found addressed to a home in Beijing.


Dearest Papa,

Our grand tour of Europe continues and I must tell you, Papa, that it is just magical. The locals are so delightfully kind to us and have enthusiastically welcomed our entourage into their homes. But, Papa, their smallholdings are so sad, mainly untended and barely fit to support the livestock they keep. Their pigs are far from healthy, being underfed and almost at death's door. I feel so sorry for them, Papa. Please would you allow me to buy them some feed?

We went yesterday to the Island of England to visit the Carriage factory that Grandpapa owns as part of his charity work in the region. On our way we passed through a land commanded by a curious man with a large nose, where people only have to toil for but 35 hours in a week? Can you believe that, Papa? Imagine what Uncle Zu would have to say if his workers in Shanghai were to do the same! Travelling North we crossed the sea and were promptly garlanded upon our arrival. However, Papa, the constant tugging at our garments from the local tradesmen desperate for our charity became so overburdomsome we had to retire. Grandpapa's MG factory has performed wonders for the villagers, with many now able to earn a very basic living. However we were somewhat confused and concerned to see the fruits of their labours lying discarded and unsold behind the workshops. Perhaps we could help by using them as quaint chicken coops in your Imperial Palace farms?

Today we have just returned from the most delightful village of Hungary, just outside Vienna. Their cheery demeanor was so charming I felt I just had to leave them one of your One Billion credit line notes. The joy in their eyes made it well worthwhile and, Papa, I so wished you could have been there to hear them singing your praises from the tops of their churches to St Reuters and St Bloomberg. Their delight was such that they have even promised 20% of their wheat harvest for the next 20 seasons, for your delectation! Oh Papa, would you believe it?

We are next scheduled to visit the old Port of Greece, which we have been warned is destitute and run down. However if we are to travel to and from Europe regularly we are told it is a necessary evil to bear. Perhaps, Papa, you could buy it and return it to its glory days of but 2500 years ago? It would make just such a pretty harbour in which you could moor your Imperial fleet when visiting these lands?

Well, Papa, I must go now as some more local tradesmen are eager to show us their wares, but I will write soon with more tales from this strange land.

Your little Baobao