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Here We Go Again: German Government Advisor Says Eurozone May Not Remain Intact Over Next 12 Months

Tyler Durden's picture


Your daily diversion comes from German government advisor Bofinger:

  • Eurozone needs a very comprehensive solution, or may not remain intact over next 12 months
  • Need to consider EU stimulus measures for Greece in addition to belt-tightening
  • Have to change overall approach for Eurozone periphery countries

Euro now sliding since apparently the EURUSD traders did not get the Friday memo that the G-7 have decided fair value for the pair is 1.35 tops. Oh yes, in the meantime we can't wait for Germany to get back to the DEM which will buy about $10 USD and make German exports a thing of the ancient past.

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Mon, 05/09/2011 - 09:01 | 1255068 firstdivision
firstdivision's picture

So this is why the Euro and futures started to tank.

Is this as credible as Friday's rumor du jour?

Mon, 05/09/2011 - 09:02 | 1255092 SheepDog-One
SheepDog-One's picture

Is reality credible anymore? I just dont know...

Mon, 05/09/2011 - 09:15 | 1255132 Spitzer
Spitzer's picture

He is a proffesor of economics. That says enough.

Pure comedy that people think the Euro will break up.

Mon, 05/09/2011 - 09:23 | 1255162 Re-Discovery
Re-Discovery's picture

Didn't a bunch of economics professors come up with the "euro" in the first place?

Watch and see Grasshopper, watch and see.


Mon, 05/09/2011 - 09:48 | 1255230 DeadFred
DeadFred's picture

The classic manipulated news scenario with maximum profits for the insiders would have increasingly pessimistic news for a couple weeks to let the momos hop onto the Euro trade then, bam, a fix is announced, and another flock gets sheared.

Mon, 05/09/2011 - 10:11 | 1255297 Re-Discovery
Re-Discovery's picture

I am sure the euro (dollar, yen, etc) will reverse, drop, reverse, drop, etc.  all in a well-defined trading channel.  And there is a lot of fia that can be made correctly trading the boundaries.

All the while Godl, Oil, food (and even Silver) will move up and up and up.

Mon, 05/09/2011 - 10:26 | 1255310 Spitzer
Spitzer's picture

No, central bankers came up with the Euro. Not proffesors

Mon, 05/09/2011 - 10:33 | 1255368 Re-Discovery
Re-Discovery's picture

And your point is . . .?

(Check resumes, almost all central bankers were or became professors at some point.)

Mon, 05/09/2011 - 11:41 | 1255679 Spitzer
Spitzer's picture

The Euro was built by the old hard money sydicate in Europe.

Mon, 05/09/2011 - 09:37 | 1255194 jus_lite_reading
jus_lite_reading's picture

Ten years ago, a close friend and colleague who was part of an EU economics think-tank and who was later ejected for his view that the Euro would not last much more than 10 years so now the euros time is up.......  was he right? 

Mon, 05/09/2011 - 10:25 | 1255334 Spitzer
Spitzer's picture

Are you aware that calling the end of the Euro is calling for hyperinflation in Euro land ?

Why does there seem to be no inflation vs deflation arguement for the Euro zone ? Everyone is a hyperinflatinist when it comes to the Euro....

Even allot of Keynes and Austrians agree that the Euro will not last(hyperinflation)


Mon, 05/09/2011 - 10:58 | 1255471 Canucklehead
Canucklehead's picture

No, calling for the end of the Euro is calling for deflation in Euro land.  Think Weimar republic and the foreign currency which could buy anything in Weimar Germany for a song.

No one cares about the inhabitants within the soon to be expelled periphery euro states.  Certainly their own governments do not care about their subjects.

Mon, 05/09/2011 - 14:56 | 1256396 Spitzer
Spitzer's picture

No, calling for the end of the Euro is calling for deflation in Euro land.

So a Euro rally is the end of the Euro.....Hmmmmm...


Think Weimar republic and the foreign currency which could buy anything in Weimar Germany for a song.

So you are calling for hyperiflation in Europe ! Like i said the first time...


Mon, 05/09/2011 - 19:40 | 1257395 Canucklehead
Canucklehead's picture

You are mixing up your currencies.

Mon, 05/09/2011 - 09:05 | 1255093 Sudden Debt
Sudden Debt's picture

6 weeks dollar trashing, 6 weeks eurotrashing

Mon, 05/09/2011 - 09:06 | 1255100 unky
unky's picture

Eaxactly, and they cant do both at the same time because everyone would buy PMs. If they trash the dollar first, people rush into the euro, then they trash the euro and people run into the dollar ignoring PMs.

Mon, 05/09/2011 - 09:15 | 1255134 HoofHearted
HoofHearted's picture

"A Swiss junkie in Turin ripped me off for my cash." When life becomes a Cracker song, at least there's a Eurotrash girl at the end...

Mon, 05/09/2011 - 09:28 | 1255177 SheepDog-One
SheepDog-One's picture

Just remember the Golden Rule- 'He who has the gold makes the rules'

Mon, 05/09/2011 - 11:31 | 1255611 Ahmeexnal
Ahmeexnal's picture

"He who has the gun, taketh the gold."

Mon, 05/09/2011 - 12:54 | 1255974 RonnieHonduras
RonnieHonduras's picture

The guns you speak of better be careful what they wish for.  Guns n' gold is the complete insurance policy against such idiots.  (...And those morons who think the 2nd amendment protects hunters... or government organized national guard.  AS IF!!)

Mon, 05/09/2011 - 09:31 | 1255176 centerline
centerline's picture

Yup. Same central bankers at the rotten core.  So, they have folks running from port to starboard to keep them from noticing the tilt towards the bow - or least thinking there might be lifeboats on the other side there somehow appeared since the last time they ran over there.  Keystone cop stuff now.  No dialogue required.  Just some funny music.

Mon, 05/09/2011 - 09:15 | 1255135 unky
unky's picture

I ve read some older interviews by Bofinger in which he gave the Eurozone just a maximum lifetime of a few more years, so this statement from him isnt really something new, however judging the EUR/USD lower than 1.43 something was giving pressure to the EUro, maybe also partly the S&P downgrade of greece

Mon, 05/09/2011 - 08:57 | 1255072 Sudden Debt
Sudden Debt's picture

12 MONTHS...

God only needed 6 days to create the world... and we need a decade just to destroy a economy...


Mon, 05/09/2011 - 09:13 | 1255121 Re-Discovery
Re-Discovery's picture

I think the Germans are sick of hearing from/about the Greeks too.

All those who think Germans would perish in a Eurozone collapse ask yourself this:

Whose new local currency stands to benefit most from a Euro collapse?

Sure they would have to write off a lot of bank crap, but which european economy is positioned the best to take the hit and pick up the pieces?

Yeah, I thought that would be your reaction.  Heil Merkel!

Mon, 05/09/2011 - 09:33 | 1255184 centerline
centerline's picture

First one out wins.  But, the exit is booby trapped.  Need a few idiots to take out the traps.

Mon, 05/09/2011 - 09:31 | 1255187 Vergeltung
Vergeltung's picture

Uber Alles!


Mon, 05/09/2011 - 10:21 | 1255318 Rynak
Rynak's picture

The main problem is that germany and france, are those who lended them all the cash.

I.e. german debt may seem very low, but that debt-value assumes that all cash that has been lended will be paid back. You really need to realize the difference between how much cash germany "potentially" has, and how much it actually has....... potentially, it's balance is near zero..... actually, it's balance is you-don't-really-want-to-know. THIS, besides of banksters, IMO is why they are hitting so hard on the PIIGS to take the bailout.... its plain and simply a choice between facing reality, or continueing living in fairytale land: The reality is... most of the cash it lended, is gone.. it will not come back. Fairyland is: Debt is an asset.... all those overindebted countries will pay this stuff back.

Germany and france quite probably would not be able to handle a full on default of the PIIGS.... a partial default, would still hurt, but hey.... it can only get worse from here, in fairytyle land.

Mon, 05/09/2011 - 09:00 | 1255073 unky
unky's picture

1 DM = $10, i would appreciate that and buy up a bunch of assets in the US ;- )

Mon, 05/09/2011 - 09:17 | 1255139 HoofHearted
HoofHearted's picture

I have a zwei millionen mark note from 1923 on my desk in my office. I'M RICH!!!

Now I can buy a lot of gold and get out of the fiat Ponzi scheme...

Mon, 05/09/2011 - 10:18 | 1255306 Sudden Debt
Sudden Debt's picture

and buy up a bunch of assets

And be sewed for millions because some moron got sick while drinking water from the toilet which he forgot to flush 10 minutes before...



Mon, 05/09/2011 - 08:58 | 1255075 Dick Darlington
Dick Darlington's picture

The only solution they know is more debt and that's not working, surprise surprise. Euro is fundamentally ill-constructed and has no chance of surviving as it is. They need to cut off the periphery for good and even after that there's no guarantee.

Mon, 05/09/2011 - 09:03 | 1255086 TexDenim
TexDenim's picture

What a crock. No one has more to lose from the collapse of the Eurozone than the Germans. Through the EC, Germany has finally achieved the Greater German Co-Prosperity Sphere that was the aim of early 20th century German planners. They will bail out their serf cousins in Greece because they need them to buy German crap at inflated prices without the option of devaluing their currency. Enuf said.

Mon, 05/09/2011 - 09:05 | 1255097 Quintus
Quintus's picture

The thing is though, that German export industries are now shifting focus to Asia in a serious way, having tapped out the suckers in Europe in the manner you describe.  I feel confident that they will let the European periphery burn the instant that the marginal cost of keeping it alive exceeds the benefit to German industry.  

First, however, they just need to figure out a way to get back all the money they lent the Greeks and other PIIGS to buy German goods.

Mon, 05/09/2011 - 09:08 | 1255107 unky
unky's picture

German crap ? Mercedes, Audi, BMW? I question u have ever owned one of these to call it crap. Its really nice quality

Mon, 05/09/2011 - 09:10 | 1255116 SheepDog-One
SheepDog-One's picture


Mon, 05/09/2011 - 09:40 | 1255199 Sophist Economicus
Sophist Economicus's picture

I've owned a g500 for 4 years now (bought it new).   The front drive train broke within 25,000 mile -- replaced under warranty.  The front passenger electric window motor failed this winter, the front climate control motor failed, the air conditioning system deleloped a leak last summer, the sun-roof belt came off its wheel and needed to be replaced, the dash has a digital readout -- it's periphery fades on summer days because it gets warm, the electronic key needed to be replaced twice....

I bough a festool drill -- its bearingless motor failed within 6 months of use.   Festool replaced it.   I bought they Kapex chop saw.    The laser failed - i haven't replaced it, the plastic lever that contiols the pivot of the saw head broke -- put in the replacement


I owed a stahlwille socket set.   The 12mm socket was never bored out!    I didn't realize it till I was under one of my cars and couldn't get the socket to engage.    Stahlwille did send me a replacement


I owned a Hazet plier.   It sheared at its pivot while removing a bolt!   I never had a pair of pliers fail, ever.   It was replaced free of charge


I won't bore you with my Audi and VW stories


I could go on and on...   As an experienced consumer of German stuff - let me tell you, there is nothing special to "german quality'.  

Mon, 05/09/2011 - 09:45 | 1255220 Bubbles the cat (not verified)
Bubbles the cat's picture

You've just described the reason for their success. They made it. You bought it.

Mon, 05/09/2011 - 09:53 | 1255235 Sophist Economicus
Sophist Economicus's picture

Ha!   Tis true.    I buy high end American or Japanese when I can, especially when it comes to tools and machinery.    The g500 was simply a 'look and feel' thing - more emotional than rational.


The design (i.e. thoughtfulness of function) is admirable in German products.   Unfortunately, their manufacturing quality is where they fail consistently.

Mon, 05/09/2011 - 09:58 | 1255255 kaiten
kaiten's picture

Funny what you say. So how come Germany being the biggest exporter in the world? Due to the lack of their manufacturing quality? I dont think so.

Mon, 05/09/2011 - 10:16 | 1255312 Sophist Economicus
Sophist Economicus's picture

I don't want to get into a country pissing contest.   But:

1.  China is number 1 in exports - and if quality = size of exports, I doubt they'd be number 1

2.  Germany exports high-end (price not necessarily quality) automobiles.   Ever check independent, third party rankings of german automobile quality?   Not stellar.

3.   German export number include intra-EU sales, which is a fair accounting.   However, then we will have to deal with the Euro issues that are currently on point -- would German exports be that high intra-EU if there were soveriegn currencies and each allowed to devalue as needed?   I don't know.


And besides, I buy German products.   My experience is that the quality is spotty - not like the bullet-proof Japanese or high-end American products.   I may have been unlucky over the years and my data points may be one off, bad luck examples.

Mon, 05/09/2011 - 14:38 | 1256342 ZapBranigan
ZapBranigan's picture

No, you're right, German quality is way-off, not nearly what it was twenty to thirty years ago.

(I think Tyler should institute a rule stating that you have to write 'zee Germans' instead of 'the Germans', it would make serious commenting here that much funnier)

Mon, 05/09/2011 - 10:19 | 1255321 unky
unky's picture

was that manufactured in the U.S. plant they recently build? if so, that would explain it ^^

Mon, 05/09/2011 - 10:24 | 1255332 Sophist Economicus
Sophist Economicus's picture

G500 was built in Austria - another country with spotty quality in manufacturing

Let me know if you want stories about my Felder sliding table saw...

Mon, 05/09/2011 - 09:11 | 1255109 SheepDog-One
SheepDog-One's picture

'We need them to buy more stuff so lets loan the bankrupt more money'?

Doesnt really make much sense, but who knows the Germans are a very strange people.

Mon, 05/09/2011 - 09:33 | 1255182 Saxxon
Saxxon's picture

TexDenim, the Germans don't make crap.  That's why they will still be standing when these fishing village land-scam countries tank back to their former jerkwater status.

Mon, 05/09/2011 - 09:47 | 1255225 Manipulism
Manipulism's picture

They sold their "crap" with a strong DEM and will do it again.

Even with 1 DM - 10$

Mon, 05/09/2011 - 10:01 | 1255257 simonsito
simonsito's picture

+1 on that one, from Germany.

I am sitting in a town full of people who think they are going to build and earn money with Porsches and Mercedes' for the next 100 years....

Mon, 05/09/2011 - 10:20 | 1255322 unky
unky's picture

u forgot Bosch

Mon, 05/09/2011 - 11:27 | 1255600 Urban Redneck
Urban Redneck's picture

The Bosch bulldog hammer drill for my US house cost under USD200, the same drill for my Swiss house cost over CHF500, the only difference is a 60Hz/110V vs 50Hz/220V motor.  Purchasing power parity can suck, but Bosch does make good tools- I still have an older Bosch hammer drill I picked up almost 20 years ago and it works great.

Mon, 05/09/2011 - 13:15 | 1256018 RonnieHonduras
RonnieHonduras's picture

The people who actually produce stuff and sell it will win out in Europe. That means countries like Greece, who are all trying to live at one another’s expense vs. provide value to one another... Well, they deserve the bankruptcy they embrace. Bottom feeders get what's left and should not have dibs on German productivity. Same for the rest of the fringe PIIGS....  Those who confuse paper money for wealth will suffer a similar fate.

As for the other convo, German quality is way down from the old days because their labor / social costs have forced them to cut corners like every other country with parasitic bloat. The product quality is hijacked by the rent seekers, and so it goes. But having bought U.S., I can tell you that apart from GM and Ford Trucks, it's pretty crappy, and far worse. I mean, WTF is Chrysler other than crap stew?

Japan makes a good car, and so do the Koreans. The U.S. is at an ever increasing pace going fully Greek, all starting with the misunderstanding the Freedom & Liberty are synonymous with it's infantile infatuation with populist Democracy, which has for the last century voted for and enabled the economic date-raping of its children and grandchildren.  The Elsworth Tooey types have convinced everyone they can have their cake and eat it too, cheering on the pilfering of its once great stores of economic seed corn so the masses can pretend they actually create wealth vs. sow the seeds of their own economic demise. The masses are not entirely oblivious  and generally indifferent since their bellies are for the time being full, even if it is with junk food, ignorant of any difference between full bellies because of a great harvest or if it is filled by the last of the seed corn. The rats have been leaving the silo for greener pastures for some time, and few notice in any intelligent way, demanding more cake, and more eating it too. 

Ignorant fools.

Mon, 05/09/2011 - 09:07 | 1255096 johngaltfla
johngaltfla's picture

It's a safe bet. The angry south + Ireland vs. the wealthy North in the EU will not work over the long term. I would not be shocked to see several nations pull out including one not experiencing the sovereign debt crisis but religious upheavel:


Mon, 05/09/2011 - 09:16 | 1255120 Lord Welligton
Lord Welligton's picture


Turkey is not in the EU nevermind the Eurozone.

Mon, 05/09/2011 - 09:19 | 1255148 johngaltfla
johngaltfla's picture

They are an associate member now and are looking to ascend into the E.U. The negotiations and process are continuing (since 2005) and the banksters want them in. My money is on the fact they withdraw and ally themselves with other powers to the East.

Mon, 05/09/2011 - 09:25 | 1255161 Lord Welligton
Lord Welligton's picture

Accession requires all existing member states to agree.

I can't see that happening.

So you are probably right. They will look east.

Mon, 05/09/2011 - 09:48 | 1255227 JimBowie1958
JimBowie1958's picture

I am not sure that 'ascend' is the more precise term here.

Mon, 05/09/2011 - 09:05 | 1255099 SheepDog-One
SheepDog-One's picture

Gosh, more debt is not working to get less debt? What would Sir Krugman say? Oh thats right, Krugman just said 'print more' this morning while saying theres no inflation monster under the bed.

Thats probably right we wont get a creeping inflation, instead we'll just get a high speed head on train collision one morning.

Mon, 05/09/2011 - 09:09 | 1255101 kaiten
kaiten's picture

Well, 1.30 is better for exports than 1.40. Spiegel on Friday, Bofinger on Monday. Who needs Bernanke to weaken the currency with leaks like these :)

Mon, 05/09/2011 - 09:21 | 1255145 HoofHearted
HoofHearted's picture

Can we reach 1.30 by Friday? I leave the US for a summer in Europe then.

Mon, 05/09/2011 - 09:09 | 1255111 Lord Welligton
Lord Welligton's picture

This really is just getting silly now.

They had better come up with a credible plan or people will lose faith entirely.

And faith is the only thing holding the house of cards together.

Mon, 05/09/2011 - 09:11 | 1255118 SheepDog-One
SheepDog-One's picture

BoooooFINGER!! Hes the man with the Midas touch, he's just to much!

Mon, 05/09/2011 - 09:23 | 1255128 Jack Sheet
Jack Sheet's picture

Forget Bofinger, he is a closet Keynesian. The only German economist really worth listening to is Hans-Werner Sinn who heads up the Ifo-Institute for Economic Research in Munich. Sinn made headlines at the weekend by suggesting Greece leave the EUR. He is likely to garner increasing support amongst the German public, for whom the latest Allensbacher opinion polls show only 26% have confidence in the Euro currency (down from 41% at the beginning of 2010) and only 25% trust the EU  and its institutions (down from 49%).


Mon, 05/09/2011 - 09:27 | 1255171 wandstrasse
wandstrasse's picture

Sinn! JS, PLEASE!! He is nothing but a salesman saying what his corporate clients like to hear. VERY annoying, predictable and boring.  do not let yourself distract by his looking like a wise 19th century Professor.

Mon, 05/09/2011 - 11:45 | 1255702 Jack Sheet
Jack Sheet's picture

@WS:  OK, I stand corrected, but Bofinger is really a joke - isn't there anyone around like Laurence Kotlikoff or David Stockman?

Mon, 05/09/2011 - 09:53 | 1255234 JimBowie1958
JimBowie1958's picture

But is it not significant when a Keynesian finds problems with too much debt?

Mon, 05/09/2011 - 09:51 | 1255236 simonsito
simonsito's picture

H.W.Sinn is a crook just like Bofinger... as much as the germans dislike the euro, they are high as fuck on HOPEium when it comes to their own economic germany, you have very few that know what they are against, just like in the US. They want their DM back, of course, but they dont know what they are talking about, and where we are selling our exports to.....

its sad, and it frightens me thinking of: what will the german michel do when he figures out that he has been assraped, but not by whom....last time was in the 1920ies, didnt end that well....I am closer to my 85y-old grandparents when it comes to projections about the future than with my 60y-old parents, who are living in a fantasy island called "exportweltmeister"....or call it normalcy bias, or whatever....its depressing to witness that ignorance, even amongst otherwise bright and talented students of sciences and engineering....they are brainwashed concerning anything thats not in their direct field of competence... FUCK MERKEL, shes the perfect leader for those...

Mon, 05/09/2011 - 13:12 | 1256024 falak pema
falak pema's picture

Merkel is like Obama she was caught with her skirt down by the banks who had already freaked in RE monopoly play all over europe. But she mismanaged the after math as nobody had the balls to call the banks to the docks and screw them legally! So now it's print baby print world wide!

Mon, 05/09/2011 - 14:17 | 1256273 simonsito
simonsito's picture

print baby print, thats why every corrupt politician around here looks forward to Mario Draghi, ex Goldman, being ECB-Chairman....but well, you can make money on the Bernanks rigged table, why the hell should one not make money out of draghi's mental illness.... I am goin to try, maybe it will even be like BTFD on POMO days used to be...I personnally cant wait for them to get started in a more bernank-like fashion!

Mon, 05/09/2011 - 09:27 | 1255165 New American Re...
New American Revolution's picture

Bofinger?    Are you sure he isn't a double agent economist who works for SPECTRE?   Send Bond....

Mon, 05/09/2011 - 09:25 | 1255166 john milton
john milton's picture

timo soini the true finn leader on wsj

why I won't support more bailouts

Mon, 05/09/2011 - 09:29 | 1255169 rawsienna
rawsienna's picture

Yes.  Germany is more of a currency manipulator than China. German exports die at 2 bucks dm to dollar.  Kill the Euro you kill Germany - it is all about Germany

Mon, 05/09/2011 - 09:32 | 1255179 monopoly
monopoly's picture

Just when you think we have heard it all. A new chapter starts. Economies slowly being destroyed no matter what the children try to do to prop it up. Our time is coming, patience. Sold my miners last week. Lets see if I am being too cute or if they continue lower for a bit. At some point, they may take off.

Added to my gold and silver physical holdings. Cannot sleep knowing I only have timmys dollars.

Mon, 05/09/2011 - 09:37 | 1255192 lizzy36
lizzy36's picture

MAD. Greek version 2.0.

Mon, 05/09/2011 - 09:48 | 1255221 TruthInSunshine
TruthInSunshine's picture

No wonder many 30+ year veterans of investment, including some titans, have packed it in and said "see ya, central bank rigged markets."

Mon, 05/09/2011 - 09:54 | 1255240 firstdivision
firstdivision's picture

Let: k = number of times Greece announces it can meet its debt

       x = number of times Greece requires a bailout

       λ = number of people that care

Then, ∫(1/k!)λ^(k+1)x^(k)e^(-k) dx 

Mon, 05/09/2011 - 09:57 | 1255244 Itsalie
Itsalie's picture

There is actually a solution to pacify greeks, germans (+ rest of "core europe") and chopper Ben, and that is for the IMF to bailout greece; greece ver 1.0 nearly went that way except sarko wanted Kahn to follow rather than lead because of next year's prez election. That way Ben gets to resume printing without calling it QE ver n, german taxpayers won't need to spend money bailing out the PIIGS and the ECB (which would lose at least $150b if S&P's 50% haircut for Greece is applied across the rest of its lendings to the european banks), greeks get to spend monopoly money without further austerity, and the chinese can recycle their toilet paper/Geetner IOUs.

QED (except for the US taxpayers).

Mon, 05/09/2011 - 10:57 | 1255465 Rynak
Rynak's picture

Except of - you solved NONE of the root issues.... you just kicked the can.

Mon, 05/09/2011 - 11:58 | 1255746 kushmere
kushmere's picture

Of course. What other phrase so accurately describes the fiscal policy of the US, EU, and other central bank run nations of the world?

Mon, 05/09/2011 - 10:05 | 1255274 Josh Randall
Josh Randall's picture

OK so whats up with the hand on the Chin -- notice it all the time on Financial speakers of interest -- is it a Masonic thing, or another group of "Free Thinkers" ?

Is he speaking truth or does the hand on the chin mean he is speaking with Forked Tongue to the uninitiated ?

The hand gestures of the so-called elite are easy to spot, dechipering is another thing   

Mon, 05/09/2011 - 10:13 | 1255292 Clowns on Acid
Clowns on Acid's picture

Great comment by Greek PM in WSJ this morning, "Mr. Papaconstantinou said on Saturday that Greece might sell bonds to the EFSF (Euro Stability Fund) next year if it can't sell them to private investors. "The markets continue to disbelieve in our country," he told reporters."

So in other words :"hey someone has always lent us money...we'll find it somewhere, so c'mon in the pool investors...the water is fine".

This greek clown is on acid.


Mon, 05/09/2011 - 10:46 | 1255408 sbenard
sbenard's picture

Every time I see a story like this, I am reminded of the cartoon depicting a fish inside a blender, waiting for someone to hit the "on" switch, and the fish is screaming about the stress level he's experiencing.

Just DISSOLVE the EU, and stop torturing us with the big fat QUESTION MARK for the rest of eternity! Just DO it!

Mon, 05/09/2011 - 10:55 | 1255445 Rynak
Rynak's picture


Oh, wait.... i don't fully agree. Dissolve the EMU and and be done with it (i've got no problem with the EU).

Mon, 05/09/2011 - 11:21 | 1255576 css1971
css1971's picture

Oh come on. America had to create and spend several trillion dollars to have that kind of effect.

Mon, 05/09/2011 - 16:56 | 1256876 TK7936
TK7936's picture

"we can't wait for Germany to get back to the DEM which will buy about $10 USD and make German exports a thing of the ancient past"

In contrar to the clishes, German GDP dependant on export in $ Regions is only around 5 %. Big deal or better to say, the US went down for Germany a long time ago. Decoupling as it was predicted in the 80s already. Asia is the new market. Plus you can always build cars within NAFTA which German companies are already doing. It might even be a good symbioses givven the low production factor of the US economy. Plus i doubt a DMark would ever reemerge, more likely is a smaller Euro Zone. The again the ECB hasnt even touched the QE Card yet in the way the FED has, so there are still possibilities. And a 1:1 Euro /$ would be welcomed by most Eurozone Members. So i dont see teh Euro falling apart and i wouldnt catageorize a Greek exit as that either givven the "amazing" contribution to the Eurozone Economy by Greece. Even a 0,70 $ / Euro Rate would be worth more than what the DMark ever was. So why would anybody give up a currency that is stronger than there old ones when the US wont give up the dollar for exact same reasons ? Put it in perspective.

Mon, 05/09/2011 - 18:34 | 1257213 Bartanist
Bartanist's picture

The best way to keep it intact is to eliminate all local governments and put one federal government over all of Europe (in name as well as function). That way, just as in the US, there will be only one money printer and one treasury to overpower.

The US states used to have rights and sovereignty similar to European countries, but the Euro"peon" central bank powers took care of that with the Civil War and pussified the states.

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