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European Default Risk Surges As Soros Warns Germany Could Cause Euro Collapse
Ironically even with Greek CDS surging by 60 bps to 909 bps this morning, the biggest mover in percentage terms is not the bankrupt Mediterranean country but Europe's "stablest" one - Germany, whose default risk has spiked by 9.19% according to MarkIt. Without splitting hairs, Europe is a sea of red this morning as the ugly specters of default and complete lack of credibility in the EU administration raise their ugly heads again. Yet adding that special spark to the reignited flame, is George Soros, who in an interview with Die Welt, said that "German policy is a danger for Europe, it could destroy the European project."
More from Reuters:
Soros, who earned $1 billion in 1992 by betting against the British pound, added that he "could not rule out a collapse of the euro."
"If the Germans don't change their policy, their exit from the currency union would be helpful for the rest of Europe," he said.
Chancellor AngelaMerkel unveiled plans earlier this month for 80 billion euros ($107 billion) in budget cuts over the next four years -- a package she hopes will bring Germany's structural deficit within European Union limits by 2013.
"Right now the Germans are dragging their neighbors into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk," he said.
"Germany is globally isolated ... Why don't they let their salaries rise? That would help other EU states to pick up."
Merkel on Monday defended her budget cut plans after U.S. President Barack Obama preached patience in clamping down on public spending. A German government official said on Tuesday Berlin did not expect to come under pressure at a G20 summit in Toronto this weekend to provide fresh stimulus measures.
This interview merely confirms this underreported clip on German TV station Phoenix, from June 17, when in passing it was noted that Merkel said Germany was consider returing to the D-Mark.
At the end of the day everyone knows how this specatcle is going to end, yet for some reason they choose to continue the farce day after day, at a cost of trillions in taxpayer capital. Yet oddly enough, aside from a few strikes here and there, taxpayers continue not to mind. Perhaps nothing will ever change.
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"European Default Risk Surges As Soros Warns Germany Could Cause Euro Collapse"
Example #3,498 of our collective insanity.
A nation (Germany) that's making an effort to return to fiscal sanity (no matter how weak that effort may be) is accused that by doing so they would cause the collapse of the fiscal insanity.
Stay tuned, additional lessons will be coming fast and furious.
"A nation (Germany) that's making an effort to return to fiscal sanity (no matter how weak that effort may be) is accused that by doing so they would cause the collapse of the fiscal insanity."
Bang on.
Soros is prolly terrified that this austerity policy could send EUR up. I bet I could hazard a good guess as to whether he's short EUR...
MAN. You should SEE the battle on EURUSD!!! MOre action on the minute candles than a Vin Diesel flick at the moment.
Hey Renfield - you were on here yesterday talking about some books. Would be most interested to see what they are, being an avid reader....
Sure thing! Fellow ZHer Al Huxley turned me on to these two old books (1901 and 1923) a few days ago, and I've been reading them avidly. They don't really set up systems for you but they are unbeatable as a macro perspective on markets, and how to approach trading mentally.
Reminiscences of a Stock Operator:
http://www.archive.org/stream/ReminiscencesOfAStockOperator/Reminiscences_of_a_Stock_Operator-Edwin_Lefevre-EN#page/n5/mode/2up
Wall Street Stories:
http://www.archive.org/stream/wallstreetstorie00lefeiala#page/n5/mode/2up
If you want a sampling of Jesse Livermore ('Reminiscences'), I also found this cool site that discusses what he says in specific trading lessons:
http://www.jesse-livermore.com
If you try them I hope you find them as educational as I am! My trading is already improving - I trade a lot less now, and a lot more CAREFULLY. I am more comfortable with the market being as freaky as it is, not getting distracted anymore with how bad the manipulations are, or whether it's worse than at other times - just looking for price movement, rather than trying to understand the reason for it.
Sorry about all the verbiage. You just asked a simple question, but I have become quite a 'fan' as I am reading and can't help sharing enthusiastically just now. :-)
Hey CD...Did I like, miss, Part 5 or something?
Nope, you didn't. Part 5 should go up today.
I should really break it into two pieces but I won't. I'm trying to cut it back somewhat but without much success. I'm guilty of being long winded.
I've already taxed the stamina of my loyal readers with the first 4 chapters so what difference does it make if the final chapter is the longest one? :>)
Bring it on!
No shit, Moriarty.
...like auditing the "fed".
"Merkel said Germany was consider returing to the D-Mark."
A complete collapse of what EU credibility, pray tell?
check where German fiscal sanity is going to align with
http://www.stratfor.com/weekly/20100621_germany_and_russia_move_closer?utm_source=GWeekly&utm_medium=email&utm_campaign=100622&utm_content=readmore&elq=a1206009e247489591d7468c5418549f
is soros working for the obama/bankster cartel?? one wonders. and what exactly is soros position here - is he talking his book?
The only thing that one can be sure of with that Socialist is that his name spelled front-to-back or back-to-front is the same. It is indicative of the man himself when attempting to determine a direction.
Is Soros a socialist? I don't think so, I think he loves socialists because he knows how to make a lot of money off of them. To me he looks like a capitalist with no ethics who loves to make money and buy land/influence. Is it possible to buy all of Argentina? We'll find out.
Ticket clippers love both the feudal imperial courts and the socialist party machine. Crony business made easy. Monopoly by executive order. The thing they hate - constitutional democracy where they have to actually work harder to restore the old order. The USofA is a blend of the two because they have worked so hard at crony capture that they can even own nominees for the Supreme Court and keep the tilt of power toward the executive despite the constitution.
It's the other way around... Soros works for only one entity: Soros. Everyone else works for him.
One hydra, many heads.
could you please give updates on US CDS spreads. I keep waiting for TBT to blow out and our markets to drop
To add to that Henry Kissinger was interviewed by Eric Schatzker on Bloomberg and said that the European sovereign debt crisis could be equivalent to another Lehman collapse.
I personally think it will be worse but why split hairs.
Another major figure fails to understand impact. I think there's little doubt that it would be worse than Lehman.
"Right now the Germans are dragging their neighbors into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk," he said.
Oh, I see, to not have perpetual currency devaluation and massive bubbles and bust is a threat to democracy. Ok George. Everyone who already made billions now want to socialize every loss from now until eternity. It doesn't matter to them if there is no upside going forward.
Anyone know if there is a way to buy European or UK Treasuries like they have here in the US with Treasury Direct? I wouldn't mind throwing some bones on some short term Euro debt at nice rates. :)
See
http://www.bankofengland.co.uk/registrars.htm
The BoE contracted that out to a company called Computershare.
UK sovereign bonds are called 'Gilts' or (confusingly) 'goverment stocks'. The remote purchase (and receipt of interest) is straightforward if you have a UK checking account (which I have), but I'm not sure how it works it otherwise.
Brokers with London Stock Exchange access also usually offer gilts. This may be the simplest way if they have good online trading.
Thx GB
AS a Belgium citizen I'm proud to be leading the list for once! We might not be playing in the WK, but when it comes to debt WE ARE THE JEDI MASTERS!! :)
Though, as Pearlstein reported in the WashPost a few weeks ago, Germany has done just fine by the euro, thank you very much, targeted budget cuts that do not unduly dampen demand are not a bad thing.
Moreover, we shouldn't put altogether too much into what George "Blow Up the ERM" Soros has to say until we know what his stake in all this is.
I'm also curious to see what the ZH anti-keynesians have to say about Soros' comments
Soros is the ultimate insider, a one-world government guy for decades. Soros represents the worst of the system.
Dudley, do you realize Soros is shorting the Euro? When you talk about anti-keynesians... who are you specifically referring to? I suspect a case can be made where all other economic schools of thought are seen as "anti-keynesian".
The janitor-anti-keynesian school of thought thinks this is all crap. They should know as they tend to clean up after the mess...
moved
All i know is Mr Soros is one of the biggest insider traders known to man.May be time to attend the FUNERAL SERVICE for the EURO but how about the German DAX30, will it too get killed?Not very likely. Here's some STATS over a 10 year timeframe:
2000-2003 Tech-Wreck/WorldCom Debacle/Iraq War/9/11/
LOW: 2456....VOLUME: 84,794,311 SHARES TRADED
2007-2009 Housing Crash Credit Collapse /Bear Stearns/Countrywide/Lehman
LOW:3692....VOLUME: 153,081,559 SHARES TRADED
2009-2010 Greece Default/PIIGs Debt Contagion/Flash Crash
LOW:5780....VOLUME: 192,604,581 SHARES TRADED
From the period 1999-2203 the totally flawed EURO/USD traded below parity and as we know it traded above 1.60 in 2008 for a moment:
2000 LOW: 0.866
2001 LOW: 0.844
2002 LOW: 0.907
2005 LOW: 1.164
08/09 LOW: 1.233
2010 LOW: 1.191
The DISASTERS get BIGGER'n BIGGER...The VOLUME gets LARGER'n LARGER...Yet the DAX
puts in a HIGHER LOW with each Subsequent Crash.
Das Boot....Mienen Lieben......Heil Hitler!
Idiot, fuck yourself!
Your post works better on Yahoo Finance.
Ve have vays of makink you collapse.
Looks like the Warburg legacy is about to unleash yet another storm.
SG Warburg was behind the creation of the EU and the Euro. Paul Warburg was behing the creation of the Fed and US involvement in WWI. James Warburg was Roosevelt's financial advisor and helped with WWII. Perhaps the Warburgs can reach into their legacy and produce another abomination.
Proving yet again the road to hell is paved with good intentions. All of the Warburgs had the best of intentions, yet meddling in the affairs of others to make them better seldom produces that result.
Buy EUR. Target 1.3521.
I hope you're right - but why?
Or will you be summarily disappeared if you reveal any more information?
Dear Mr. George Soros
Sorry to say this but you look (to me) a bit short sided. Do you prefer the extend and pretend strategy ( grow until there is nothinsg else ) instead of a quick fix ( with all the immediate pain) ... Seems like you have bet on the wrong horses.
Soros has spent princely sums backing the color revolutions in Eastern Europe. He did this in concert with US and western European intelligence agencies. The claim is to spread democracy. The real goal is to destroy Russia and steal it's resources. Unfortunately putting a "wall" between the ex-Soviet states and the Kremlin has led to these countries failing economically. These littie rump states cannot generate enough income as totally independant entities. Also most are dependant on Russia for oil and gas at subsidized rates. Sticking a red hot poker into the eye of your large neighbor was a stupid thing to do especially when they have veto power over your countries economic health. The large ethnic Russian populations in these ex-Soviet states also is something Soros and the West never factored into their moronic plans. An ethnic Russian will never allow a Georgian or Ukranian to lord over them. In fact many non-ethnic Russians are not happy what has transpired in the last 10 years. The carnage in Kyrgyzstan is orchestrated by the west. As it was in Georgia. Ethnic Kyrgs and Uzbeks were shown on TV begging for Putin to come save the. They were not asking for Soros or the anointed one in DC, they wanted Putin.
smart for being anarchist.
anyhow, when u see people in tv begging for smthn, is because "they" want u to see that
regards
True but I don't doubt their suffering. The wests campaign against Russia has led to the death of millions. Not saying the Russian leadership are not evil but the West does not care how many innocent people are slaughtered or driven from their lands. I was in Russia for a short time in the 90's. It was well know the west had bribed ex-Soviet officials to sell out the country. The Oligarchs were a bunch of 35 yo puppets the west secretly funded to buy Russian government assets for pennies on the dollar. Most of the Oligarchs are Jewish. They stole trillions in wealth from the Russian state. Seeing old people begging on the streets because their pensions and appartments had been stolen was not pretty. Seeing soldiers on the street selling anything they could steal from their military base was bizarre. I visited government factories and facilities. It was the equivalent of visiting Johnson Space center and major defese contractors. All were hawking "commercial" electronics that were unsellable in the west. Demand from the Russian government had collapsed and they were all trying to save their jobs. Managment was looking outside the country looking for work for their people.
Putin may be totally corrupt but he has at least tried to put a tourniquet on the theft so the country does not bleed out. If it was up to the west, every Russian would starve to death.
The way I see, the elite here have a similar fate in store for us.
Cognitive Dissonance
Spot on with your initial comment.
I'm beginning to wish that Soros would shut up. Who's showing more fiscal responsibility, the likes of Germany and the UK, which are at least acknowledging the mess, or the USA, which is determined to push the accelerator to the floor even though the cliff can be seen?
DavidC
Soros is proably looking out for his investments in Eastern Europe. The new entries into the EU in Eastern Europe were fraudently admitted and are in bad financial health. Soros wants Germany and France to continue propping up the house of cards. Hard to tell if he wants to recover his investments, make more money off the carnage or his personnel help in funding the color revolutions has him thinking of his legacy.
Soros is talking his own book, like him and Jim Rogers always do. I just wish the sheep would quit listening to Soros and Jim Rogers so they would shut the hell up. IN fact Germany is doing the right thing, and participating in the Madness of Greek, Spain, and France funny books and lies will not help the situation one bit. In fact, quite the opposite.
Soros and JIm Rogers should co-write a book together, with an index of internet video links, entitled "How We Made A Zillion Talking Our Own Book".
I tell ya...international financiers such as Soros are scare to death that austerity will turn to autarky. Europe, the US and China might just say to hell with international trade and turn inward to substain their economies. Of course a debt default will occur first and leave Soros short of a billionares expectation but the national economies will find increase employment as industries come back home.
Anyway, isn't Soros jewish? Can't see him having Germany's best interest in mind.
Hedge-fund-ers will probably always side with the crapulas from the banking cartel. After all, if they don't, they might be submitted to EVIL regulation and won't be able to make so much money on such an unproductive activity... I hear the flames coming...
Soros is selling his book.
Beta test beta test beta test beta test.
Man, this is full bore right now!
Hmmmm...smells fishy...or is that oily....
Read what he says another way. European fiscal restraint means USD short covering and massive deleveraging. The underwater European states default. Who gets hurt most - the USofA. The USD extinguishes in terms of global purchasing power after a super nova style rise during the short covering. Power returns to the savers and currency becomes physical trade rather than leverage weighted.