In Response To Concerns That EFSF Funds Are Insufficient, Axel Weber States Simply That Europe Will Just Print As Much As Needed

Tyler Durden's picture

After we noted earlier that the latest trending topic regarding Europe's insolvency was that the €440 billion EFSF rescue facility will likely not have enough cash to bail out Spain, the ECB immediately came to the rhetorical rescue, with Governing Council member and Bundesbank head Axel Weber speaking at a conference in Paris, telling participants that "The European Financial Stability Fund should be
sufficient to dissuade markets from speculating against the solvency of
Eurozone member countries, and if not, more money will be provided." Lamenting the market's idiocy, which refuses to stop punishing bankrupt stats, Weber further added that markets suffer from "limited rationality" and players
often follow market movements to the neglect of "fundamentals." Of course the same should be said for all those who are buying into this rally, which is driven exclusively by the genocidal desire of central bankers to ramp up stocks, kill currencies, and make the cost of living unbearable for half their constituencies. But nobody has ever accused central bankers of objectivity, or ever doing something that puts the interests of a few billionaire "Jenny 20" rejects over a billion or so filthy peasants.

Some more unbearable self-serving rhetoric from Jean-Claude Trichet's successor, via Market News:

It should be "easy to convince markets" with the EFSF backstop that
speculation against governments will not be successful, Weber argued.
The facility provides for up to E440 billion in government-guaranteed
loans, which is in addition to a pre-existing E60 billion EU emergency
fund. The IMF has also pledged up to E250 billion, bringing the total
pot to E750 billion. Weber said he was convinced that if the E750
billion is not enough, Europe's political leaders "will do more."

Furthermore, Weber managed to confirm that he is either stupid, or is convinced everyone present at the conference is a prime grade moron, when he said that "the sovereign debt crisis is not a crisis of the euro or the
Eurozone, but rather one of individual countries. The
structural problems of Greece and Ireland are not comparable to those of
other members, he insisted." The fact that the individual states are in crisis precisely due to the fact that their monetary policy tools are eliminated, which serves exclusively to keep the German export sector highly competitive and the German cost of productivity far lower than the rest of the Eurozone (and here we are blaming China for pegging the CNY), was oddly not mentioned by the corpulent bureaucrat.

Persisting with his projectile vomit session of aneurism-inducing mendacity, the rotund teutonic ogre claimed that EMU member states should retain as much sovereignty as possible in
fiscal matters. Oddly enough, this is happening precisely as deep behind the scenes we are now hearing that the EU is contemplating the finishing touches of a unified bond issuance mechanism, in essence completely removing fiscal independence, and making all of Europe a vassal state to a newly-ascendant Germany.

Weber completed his oratory with the following:

In the end, "the crisis will be positive for the Eurozone," since it will oblige the governments to extend their surveillance structures and establish a permanent mechanism to deal with future crises, which will "certainly" occur, Weber predicted.

In response to Eurosceptics, Weber argued that acceptance of monetary union is no longer an issue for younger generations with no experience of the previous currencies. "The D-mark would be no alternative to the euro!"

He is absolutely right. The transition from EUR to DEM will not be parallel. It will be serial, and will occur when all of peripheral Europe has abdicated its monetary and fiscal authorities, as well as it budgetary independence to a reincarnated teutonic knights counsel.

And they say history does not repeat...

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DoChenRollingBearing's picture

Sinclair is right: QE to Infinity!

Fish Gone Bad's picture

... puts the interests of a few billionaires over a billion or so filthy peasants.  That said, it only takes one angry filthy peasant to really ruin your day.

i-dog's picture

They should be charged with "Printing Under The Influence". They need to stop sniffing the ink.

flacon's picture

> "more MONEY will be provided".


That begs the question: "What is MONEY?"


Money is a tool of exchange, which can't exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce.

Herd Redirection Committee's picture

And what society needs us to produce right now is.... Sound money!!!

It will be a thankless job, but I am up for doing my share.

PsychoNews: Exposing the Oligarchy, one Psycho at a time.

AnAnonymous's picture

Money is made possible only by the men who produce.

Reflective stupidity. So money enables itself for any "man" who produces money.

This guy must be an economist.

The story that money must possess a counter-value to exist, that it must cover goods against goods trade to exist is one delusion hard to explain.

Currently, people through debt mecanism do trade money vs goods without putting on the table goods to be bought by the said money.

Bernanke has abolished scarcity. He simply emits money and gets goods in return, without putting any goods on the table (more exactly, the US through the Fed puts the goods of others on the table so the deal can be done)

Far, far from what this propagandist recants.

Paul E. Math's picture

AnAnonymous, you criticism is valid regarding paper money.

But I think the quote is about real money, not this paper stuff that Bernanke throws out of his helicopter.

Regarding real money, this quote is 'bang-on' accurate - you need to produce something of value in order for the money to have a purpose, which is exchange.

Dan_Sylveste's picture

This is why you can't convince people rationally to buy Gold by saying 'it is money' or 'it is a store of value' because it is largely worthless _apart from the worth it has because people perceive it as being worth something_

cranky-old-geezer's picture

"... because it is largely worthless _apart from the worth it has because people perceive it as being worth something_"

This can be said about everthing including the dollar and other paper currencies.  

And nobody needs to convince anybody to buy gold.  People who buy gold do so because they believe gold is worth something. 


Top_Kill's picture

It was a quote from Ayn Rand's "Atlas Shrugged" describing sound money, gold ,as opposed to the debased paper currencies which have been looted by the beurocrats to fund their special interests.

dnarby's picture

Err...  Isn't that only if the US prints faster than the EU?

Not disputing we'll get there, just think near term might hold something... Different.

Sudden Debt's picture


The Americans are faster in the straight tracks but the Europeans perform better in the curbes!


The only question is how manny QE Laps there are.

trav7777's picture

apropos, totally.

Right now we seem to be in a curve

taraxias's picture

Gold to whatever the bearer demands = DOW 0

Robslob's picture

LOL Robo tranny...

If the DOW hits 14,000 then gold will go over 3,900 an ounce...chart that bitch!0

cowdiddly's picture

Boy thats an easy choice. umm.... Ill take the Pamp suisse over Credit Suisse anyday.

ZackAttack's picture

And that would be the status quo ante from 2007, except, um, for the gold portion of the equation.

scatterbrains's picture

Anyone have any thoughts on what will be the ultimate hedge against printing? I keep thinking gold and silver are too obvious and will continue to be supressed while some other asset that the Bankers arn't paying attention to will increase by thousands of percent, leaving folks with that, (wish I bought MSFT in 1987) feeling.

PolishHammer's picture

Jesus QE'd bread and fish to feed people, can ECB do the same?

StychoKiller's picture

St. Matthew rightly called the fishes and loaves gig a miracle.  Central banking is as far away from miracles and saintliness as you can get!

CPL's picture

Would all rise for the holy benediction of hookers and blow?

snowball777's picture

Let's just say the bread lobby and the fishermen were none too pleased with those shenanigans.

cxl9's picture

Of course they'll print, as will everyone else. What other plan is there?

Kaiser Zose's picture


macholatte's picture

...member states should retain as much sovereignty as possible...


I can accept it if that is some kind of TD paraphrase of something actually said however I find it difficult to believe. The implications is clear: Weber is arrogantly giving permission to EU members to be independent, to believe they are independant, to fantasize about sovereignty but which means that they are not. Soros discussed such things in his book "The Bubble of American Supremacy" regarding the concept of sovereignty, that it is an obstacle that needed to be overcome and how to do it.  Apparently that has been accomplished and is now openly being discussed in the press.

The Europeans are the sheeple and Weber is the new sheeple dog. All done without firing a shot.


gwar5's picture

The people of Europe have sold themselves down the river to a bunch of whiny cronies.

They should wake up ASAP and make Nigel Farage head of the EU. Santa Claus ain't coming this year.


i-dog's picture

No different from the US. It's a concerted and joint effort to drive the truck over the cliff.

macholatte's picture


One wonders if the powers that be in Europe would really allow country after country to go to the wall, enslaving their children and grandchildren into financial slavery ad infinitum just for some obscure idealogical reasons.
UKIP’s Nigel Farage on fine form!

Read more:
IrrationalMan's picture

Dr. Mengele is small potatoes next to these Dr.'s

Vendetta's picture

no doubt he has the ability to justify a massive fiat/derivative ponzi scheme with an equation that looks real complicated (a pythagorean equation squared plugged into an integral with limits to infinity should do the trick) so the lemmings believe it.

flacon's picture

John Maynard Keynes also had a PhD in economics. Here is what they study behind closed doors:


"A sentiment of trust in the legal money of the State is so deeply

implanted in the citizens of all countries that they cannot but believe

that some day this money must recover a part at least of its former value.

To their minds it appears that value is inherent in money as such, and

they do not apprehend that the real wealth, which this money might have

stood for, has been dissipated once and for all.

This sentiment is supported by the various legal regulations with which

the Governments endeavor to control internal prices, and so to preserve

some purchasing power for their legal tender. Thus the force of law

preserves a measure of immediate purchasing power over some commodities

and the force of sentiment and custom maintains, especially amongst

peasants, a willingness to hoard paper which is really worthless...

If, however, a government refrains from regulations and allows matters to

take their course, essential commodities soon attain a level of price out

of the reach of all but the rich, the worthlessness of the money becomes

apparent, and the fraud upon the public can be concealed no longer."


John Maynard Keynes, Economic Consequences of the Peace, NY, 1920, p. 239-40


Peace is the x-axis's picture

And here's what Keynes and "friends" got up to behind closed doors -

"Chief of this ring of homosexual revolutionaries was John Maynard Keynes, who eventually became the economic architect of English socialism and gravedigger for the British Empire...


Keynes was characterized by his male sweetheart, Lytton Strachey, as “A liberal and a sodomite, an atheist and a statistician.” His particular depravity was the sexual abuse of little boys. In communications to his homosexual friends, Keynes advised that they go to Tunis, “where bed and boy were also not expensive.” As a sodomistic pedophiliac, he ranged throughout the Mediterranean area in search of boys for himself and his fellow socialists. Taking full advantage of the bitter poverty and abysmal ignorance in North Africa, the Middle East, and Italy, he purchased the bodies of children prostituted for English shillings...


Such Leftist hypocrites then, as now, issued loud denunciations against poverty, imperialism, and capitalist immorality. However, for their own degenerate purposes, they eagerly sought out the worst pockets of destitution and backwardness to satisfy their perverted purposes through sexual enslavement of youngsters. While traveling in France and the United States they complained among themselves of the harassment by the police of practicing homosexuals. In degenerate areas of the Mediterranean, on the other hand, they found a pervert’s Utopia where the bodies of children could be purchased as part of a cultured socialist’s holiday."

hardcleareye's picture

The bias (and unreliability) of the author you quoted it very well establish.  Because Lytton Strachey "says is so", does not make it a "fact", it is nothing more than unsubstantiated nasty gossip.  While I don't necessary concur with Keynes, I can defend my views without attempting to slander (and in a truly ugly fashion) the individual who's view I disagree with, in the attempt to convince others my view is superior. 

Shame on you, there are enough valid debatable points without resorting to this tripe!!!


I was one of the individuals that junked you.

Peace is the x-axis's picture

"The bias (and unreliability) of the author you quoted it very well establish."

Establish (sic) by whom, exactly? Please provide sources.

Further, and just as important, perhaps we should first clarify exactly which author/s statements you are dismissing/junking, as having a "well established" bias and unreliability? (a) Zygmund Dobbs? (b) The author publisher of "The Review of the News" (Robert W Welch Jnr, founder of the John Birch Society), which is the article being quoted by Dobbs in the link I provided? Or, is it (c) Lytton Strachey's own purported statements that you are dismissing? If so - as seems apparent from your comment - then I presume you are claiming that it is (d) Strachey's biographers Michael Holyroyd, Holt, Rinehart and Winston, who are the biased and unreliable authors .. correct?

FWIW, purportedly from the author (Dobb's) son -

"My father, Zygmund Dobbs, was a well-read autodidact of high intelligence who started out as a radical Trotskyite who was active in the UAW. Being the rare radical from a working class background, he joined those who were disillusioned with radicalism and devoted his life to fighting the illusions of the left.

After a picaresque life spent in union organizing, intelligence work, politics and much else, he settled down into doing research on Fabian Socialism for many years.

Keynes at Harvard was written at the suggestion of a Yale Economics professor, Olin Glenn Saxon. Professor Saxon felt that certain truths about Keynes, and others, could only be written by an outsider.

The work was sponsored by the Veritas Foundation, which was an organization of disaffected conservative Harvard alumni ('Veritas' being Harvard's motto.)

Fascinating as the questions concerning Keynes' sexual orientation no doubt must be (and my Dad was nothing if not a thorough researcher), the interesting issue the book raises is Keyenes' Fabianism, and how it was Fabian policy to conceal their socialist intentions and excellent relations with Russian communists. This is not a small matter. When one listens to the Democratic presidential candidates today, they are, knowingly or ignorantly, all espousing latter day Fabianism.

Someone who worked for me in the late 70's and who had an MBA and PhD from Chicago, said Keynes at Harvard had been required reading at Chicago business school."

Peace is the x-axis's picture

And also fwiw, apparently the Ludwig von Mises Institute owns the bequeathed library of Zygmund Dobbs -

flacon's picture

Thanks for the link. What a horror show!

Arch Duke Ferdinand's picture

Citizens of Europe should elect me Emperor and I will parade up and down all the squares of all European Capitals until China comes to its senses.

hrh ADF

max2205's picture

Why give a broken state money when you can teach him to print it.

Hansel's picture

"more money will be provided"

I never doubted it for a minute.  Which is easier, solving problems or printing money?

Vendetta's picture

Phd's in economics are real smart and know how to run a printing press.  Problem solving is left to the lessers.

Milton Waddams's picture

Phd's in economics are real smart and know how to run a printing press.

Oh, so much more so than you know.

Something only WB7 could dream up, only it is real:

Original can be found here:

M.B. Drapier's picture

I read him as suggesting that the member states will just chuck more money into EFSF, or into a new "mechanism". But of course that doesn't mean that the ECB won't head for the printer if the member states fail to oblige this time. Another round of chicken.

(Incidentally: in Ireland, this ad is on rotation on right now. (Or it was mere minutes ago. Here's the link.) Rabo seems to be upping its search for Irish deposits too. It's not reassuring when ZH's AdSense starts trying to sell me financial security rather than insanely-leveraged FX and spread betting.)


Milton Waddams's picture

God damn it people, don't you understand- I'm an economist! What does that mean? It means I am highly competent in matters relating to finance and the economy. As such, I have formulated a very detailed plan that is far too complicated for all but the most formally educated economists among us to understand. I'm, uh, I'm, um - I might remind you again that it is a very complicated solution - I'm, uh, I'm ... going to print some money.

Tense INDIAN's picture

they r taking down the dollar , EURO and YEN all at the same time