In September Europe Must Issue Double The August Government Debt

Tyler Durden's picture

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Spitzer's picture

Why don't they just issue IOU's ???

Then the Euro should go up.......and interest rates should come down.

But seriously folks, why the fuck does everyone call Europe's bluff and not the US'es?

Conrad Murray's picture

Because it's better to keep playing the game and get 2.5-3.5%, than to try to call the bluff and get shot.  Also, because the money-changers are using the US for their base currently, and until they can hustle up a new, global scam, it's in their best interest to keep the lower fruit destabalized.

Spitzer's picture

I still think there is allot of brain dead money out there and if enough of them come to their senses, the game will be over, regardless what the money-changers do.

New_Meat's picture

No. 9-all brain dead, but we have to think about the "prudent man" and "fiduciary" and criticism if things don't be compared with their respective "index."

- Ned

Calmyourself's picture

Thank you Conrad Murray!  Exactly, no one is going to pull out completely and let this system go down no matter how much you want to take the bitter medicine now.   ZH'ers are not the people you see o nthe street or the people at work.  We are the most informed and probably intelligent percentage out there (myself excluded) and what we want is not what the mass of people will strive, work and probably kill for; the continuation of the system.


Until Governments that matter around the world agree on the system to keep the PTB in power after the reset there will be no reset..

Spitzer's picture

It doesn't matter if they want the system to survive or not, it can still go bust.

Calmyourself's picture

I do not believe it can go forever but it will last much, much longer than we want it too.  The psychological factors are not being taken into account.  The people with the ability to run out of bonds to commodities in large chunks know what happens if they do.  The illusion we are living and slow grind of deflation is preferable to the alternatives.  The other TBTF banks, hedgies etc all know what happens if it all goes down.  I NEVER want this to happen but I would rather take the pain hard and fast than have my children take it over the next 20-30 years.  However, quick pain and a reset kills TBTF and so if it happens it will only happen with Gov, TBTF and others all on board with an after action plan to remain in power.

This is going to be long, painful and drawnout the only alternative is to have this change imposed by the people and how likely is that?

Horatio Beanblower's picture

AEP's latest...


"Dangerous Defeatism is taking hold among America's economic elites" -


Are you a dangerously defeatist American elitist?

dlmaniac's picture

"Are you a dangerously defeatist"


His eyes suffer such uncurable disease that they tend to see the reality as is.

Spitzer's picture

his reason for concluding that it will not be worse is telling: the Fed will step in with $500bn to $750bn of fresh QE every six months if necessary.


Everyman's picture

Why do "dangerously defeatist American elitist" wear ties?


To hold the foreskin back.

DosZap's picture

Never happen Ambrose............

When EurOPA folds(and real soon, esp the EURO), we will see the same old shit.

Europa's will RUN to US Treasuries, and Bonds,(saf money ya know).

Propping up our ugly ass yet again, and likely running up PM's Yet again.

Which will happen anyway, as the Euro, and the PIGS continue to burn to the ground.

Someone stop this Merry Go Round........I want off.

10044's picture

stage is set for gold bitchez

you guys heard anything about a possible coup in Greece around sep 20?

flacon's picture

No I haven't. Tell more please. Greeks are famously late/slow.

Oracle of Kypseli's picture

If there is one, it will be orchestrated by the ruling elite. A good excuse to default and start over and a good way to keep the left from revolting.

The rest of the world would boycott the generals and a few years later they will call for elections with the same "Dramatis Personae"

The effect of the sound-waves across Europe are difficult to predict even for an oracle.

Perhaps a few French banks will take a dive or bailed-out by Bernanke who suffers from "Pecunia Digitalis"

If you press me for a prediction I would say: "Ixis afixis ou thnixis em polemo"     

Oracle of Kypseli's picture

BTW: A currency ink producer (the special red needed for paper money) has revealed that the Drachma has been already printed and is ready to roll at a moment's notice.

deadparrot's picture

I'm sure most coups are leaked on financial blogs.

DosZap's picture

"you guys heard anything about a possible coup in Greece around sep 20?"


No, but one will happen here in November............pity the fools that get elected.

How would you like to inherit this shit?............Oh, it's ok, they can blame it on Odumma.

Number 156's picture

I thought the IMF was going to keep lending until they reach the lowest plane of hell, no?

papaswamp's picture

I think the lending isn't enough...apparently 'austerity' costs more.

hungrydweller's picture

Big Ben will pick up the tab.

ricksventures's picture

Why exactly do they need to raise double form Aug ??? Would someone please explain ?


Goldenballs's picture

Well lets see whats going to happen in September,Greece,Ireland,Portugal,Spain,Hungary all default,Iceland decides to not be a part of Europe and sets up as a Superpower with Greenland,Arnie puts California up for Sale,Pensions are cut by 50% in the Western World,China purchases 99% of all oil,wheat and metals for sale,and the outcome is yes you,ve guessed it .................... The DOW goes up by 500 points.  

three chord sloth's picture

I figure the larger, stronger (errr... relatively speaking) European countries will big foot their smaller cousins for the precious elixer (bond sales). The EU will likely begin the cannibalization process soon, fighting over ever rarer bond buyers.

The Greeks already called the Germans "Nazis"... I wonder what the Spaniards will call the French? The Portugese will call the Dutch? I expect a valuable lesson in cross-cultural insults will be forthcoming.

Battleaxe's picture

9/20 Greece coup, setting off a chain reaction.

RobotTrader's picture

What ever debt Euro needs will be floated with no problem, 300% oversubscribed.

Just as it has been now for the last 6 months.

The appetite for bonds remains voracious.

Number 156's picture

In your opinion, who would be the top 3 buyers?

Phat Stax's picture

Sovereign funds in the Middle East would be... they have the phat stax.

doolittlegeorge's picture

for Greek bonds?  I was under the impression they've been selling off all summer long....

spinone's picture

Everyone should get used to running on the ragged edge of world financial disaster for the next 20 years.  We'll be constantly on the verge of it, but it will never happen.

New_Meat's picture

Mrs. Smythe: "how do you make it last that  long?" - Ned

Spitzer's picture

interest rates are at 0. It will happen soon enough.

Number 156's picture

I think the endgame is coming, but yeah, it will be awhile out.

Once it does come, it will be horrific and violent.


"The market can stay irrational longer than you can stay solvent"

putbuyer's picture

Lets just get the shit storm over already. I love the latest at Contrary Investor.

"Here In This Blue Light Away From the Fireside, Things Can Get Twisted And Haunted And Crowded.  You Can't Even Feel Right.  So You Dream Of Columbus"

or look to the ZH blog roll

Number 156's picture

Lets just get the shit storm over already.

I agree. Its like having a bad tooth, and the dentist is telling you that he wont be able to pull it until next week. You know its going to hurt, but hell, you just want it over with.


doolittlegeorge's picture

Ahhhhh.  Waiting for Columbus.  My favorite Little Feat album.

Hephasteus's picture

You are using a laptop. Your laptop has a microphone on it. Your laptop is updated to service pack 3. Any homeland security personel who wishes to turn your laptop microphone into a snooping device can. My guess is it has a webcam on it too if they want video.

Just saying. This is the world we live in.

firstdivision's picture

No mic, nor webcam.  It does have speakers though.  If it had a webcam, I would masturbate in front of it often. 

fajensen's picture

Mine has a webcam ... Oh.

john_connor's picture

The strain on the ponzi increases every month in spite of the pandering of propoganda statistics and ratios.  Tic Toc, Tic Toc. 

DosZap's picture


Yep,it's like a REAL bad storm, suns out, but it turns to hades in a hurry.

You can feel it.




Sudden Debt's picture



M.B. Drapier's picture

So, you're saying that France is going to burn up on social reentry?

... try the veal!

Tense INDIAN's picture

...i dont understand ...why does this author think that slump in dollar below 81 ...will be the turning pint...:

Quintus's picture

No idea.  I see nothing particularly significant about the 81 level specifically.

old_turk's picture

Because the periphery (the smaller EU countries) is/are beholden to the Big German and French banks to buy their debt.

If the German/French cartel do not get their juice ... then the periphery fails.

It's really as simple as that or you can go through all the gymnastics of multi-variable analysis w/Russia and the Chinese with a GE Capital kicker but the reality that you don't have a standalone banking system to play your own brand of ponzi eventually leads to these types of standoffs.

Where's that reset button?

Mitchman's picture

If the German/French cartel do not get their juice ... then the periphery fails.

If the German/French banks don't get their juice don't they fail too?