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Trichet And Dominique To Brief German Parliament On "End Of World" Should They Not Ratify Greek Bailout

Tyler Durden's picture




 

Guess what happens when banks need something? They promptly brief you how the world will end should one not do their bidding. The IMF and the ECB are apparently no exception to the rule.

Direct from god (via his messenger on earth Goldman Sachs):

Trichet and Strauss-Kahn in Berlin today to brief parliament. ECB president Trichet and the head of the IMF Strauss-Kahn will be in Berlin today to brief parliamentary leaders about the financial help package for Greece. The idea behind the briefing is to explain to MPs the consequences of a Greek default (i.e what are the second and third round effects) and why it is in the German interest to help.

According to newspaper reports, the cabinet could already approve a draft law for the financial help by Monday assuming that the IMF and Greece will find an agreement over the weekend. If all parties agree on a fast-track procedure the Bundestag could vote on the draft law already next week. The opposition seems to prefer, however, a special session of the Bundestag after the NRW election on May 17. 

Finance minister Schäuble rejected in Handelsblatt newspaper proposals to make banks and other investors share the burden. "Let me be clear: This is not about debt restructuring. This is not an issue and nobody in the government talks about this".

Süddeutsche Zeitung reports from a CDU board meeting, citing a participant of that meeting, in which chancellor Merkel said that it is very difficult to justify help for Greece but it would be necessary in the end in order to prevent an even worse outcome. Things get further complicated by the new debt brake, according to a leading CDU member, as the government will soon have to present spending cuts in order to comply with the debt brake which will lead to the conclusion among the public: "There is money for Greece but not for us".

 

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Wed, 04/28/2010 - 10:30 | 321658 BobPaulson
BobPaulson's picture

Just pull out Hank Paulson's script, reread substituting a couple words.

 

Wed, 04/28/2010 - 11:01 | 321727 b_thunder
b_thunder's picture

absolutely!  Bring Hank "Ich bin ein Bazooka" Paulson

Can Neel "Cash 'n Carry" Kashkary get a sabbatical from PIMCO and do the numbers for EMU?  you know, the way he did the TARP math:  GDP =14T,  5% bailout sounds about right.... 5% of 14T = 700B ! 

 

Wed, 04/28/2010 - 11:07 | 321740 Dr. No
Dr. No's picture

I didnt think there was any math behind the $700B number.  Huh.  I am impressed!

Thu, 04/29/2010 - 01:32 | 323215 floydian slip
floydian slip's picture

i-i-i-its n-n-n-n-n-n-not  easy  b-b-b-b-being b-b-b-b-ald and bu-b-b-b-b-bumbly

Wed, 04/28/2010 - 10:32 | 321663 yabs
yabs's picture

+1

yeah bring in hank Paulson and threaten martial law.

Thye better not fall for this shit

countries have deafualted many times before and guess what? the sun still rises every day

they mean it will be the end for the bankers world not ours

Wed, 04/28/2010 - 10:35 | 321674 Racer
Racer's picture

And the ordinary person pays for the banksters fat bonuses yet again

Wed, 04/28/2010 - 10:59 | 321718 Al Huxley
Al Huxley's picture

Lets see if there's any country in the Western world willing to stand up to the bankers in the face of this kind of nonsense.

Wed, 04/28/2010 - 11:25 | 321776 MsCreant
MsCreant's picture

But Al, we did stand up to our bankers via protesting to congress. The calls coming in to congress from us were 100 to 1, 200 to 1, and even 300 to 1, depending on which congress person you talked to, AGAINST the bailout. They did it any way. We all need to stand up to our governments and hold them accountable.

Wed, 04/28/2010 - 12:02 | 321887 BobPaulson
BobPaulson's picture

I guess calling doesn't work. Fool me once...

Bifurcation ahead

1) Too scared, to act or risk life in the Matrix: sit down, shut up

2) You have a pair and are ready for the Red Pill, join Project Mayhem by disconnecting from the demerol IV and prepare to go cold turkey on vanilla chai lattes. Organize for direct action.

Wed, 04/28/2010 - 10:33 | 321669 Dr. No
Dr. No's picture

Replay of TARP ratification.  I think a failure to pass the first time around (like the Us House) would be high on the fun-meter ini terms watching politicians squirm.

Wed, 04/28/2010 - 10:34 | 321672 Racer
Racer's picture

And the same for Ireland, they have to borrow money to bail out Greece don't they? And the Irish workers wages and pensions have had big cuts.

 

Wed, 04/28/2010 - 10:35 | 321675 Cookie
Cookie's picture

Banks are panicking...look how JPM are trying to drive down the silver price today to hold back gold.

Wed, 04/28/2010 - 10:36 | 321676 WineSorbet
WineSorbet's picture

"The greatest trick 'The Benanke' ever pulled was convincing the world that markets never go down.  And just like that....they're gone"

Wed, 04/28/2010 - 10:36 | 321678 Turd Ferguson
Turd Ferguson's picture

Quantitative Easing to Infinity or in the famous words of Buzz Lightyear: "To infinity and beyond!!"

Wed, 04/28/2010 - 10:37 | 321679 tecno242
tecno242's picture

Don't do it Germany!!

if you do... you'll end up bailing out everyone.

 

Wed, 04/28/2010 - 10:38 | 321681 vainamoinen
vainamoinen's picture

Put a gun to their heads and make 'em an offer they can't refuse.

Worked just swell with Pelosi (whatever happened to her - not a peep in months) and her friends in congress and it'll work swell in Europe.

It will work in Europe, won't it?

I mean, these guys know what they're doing, right?

Wed, 04/28/2010 - 10:38 | 321682 mr brincq
mr brincq's picture

BLACKMAIL!!!

Wed, 04/28/2010 - 10:38 | 321685 AccreditedEYE
AccreditedEYE's picture

Stand firm Germany! Don't bend to the Brute Squad.

Wed, 04/28/2010 - 10:50 | 321702 mr brincq
mr brincq's picture

there is a big difference between kneeling down and bending over...;-)

Wed, 04/28/2010 - 10:55 | 321708 A Nanny Moose
A Nanny Moose's picture

Yeah, but for one party, it all ends the same

Wed, 04/28/2010 - 10:56 | 321713 Postal
Postal's picture

So... Kneepads vs. Vaseline?

Wed, 04/28/2010 - 11:17 | 321762 AccreditedEYE
AccreditedEYE's picture

LMAO!

Wed, 04/28/2010 - 11:21 | 321769 Mad Max
Mad Max's picture

Vaseline vs. Listerine.

Thu, 04/29/2010 - 06:45 | 323298 desgust
desgust's picture

Germany is just a failed state as the others. Maybe not regarding the economy, but the politicians.The Trilateral Commission, Die Atlantikbrücke, The CFR are the real gov't. Do any of you think they are acting on their own? Germany is the promotor of the EU. Merkel is an US slave. Look to Afghanistan, Somalia, Iran, their relation to Israel. Read about the Codex Alimentarius.Take a look at their healthcare, Ponzi penssions for state workers!

Merkel organized Ackerman's birthday last year. You think anybody cares?

Until they get the assets of the Germans they won't stop the pillage. The people in Germany are not different to the US sheeple, maybe they are even dumber, as they don't feel the heat  - yet. GERMANY IS AN US-TOOL and has always been.

 

Wed, 04/28/2010 - 10:41 | 321689 Racer
Racer's picture

I am surprised the French people are not protesting about this, they are very good at expressing their opinion

Wed, 04/28/2010 - 11:01 | 321726 Cognitive Dissonance
Cognitive Dissonance's picture

If only Americans were half as good at either having an opinion or expressing what they have. God forbid we pick up the phone and call our Rep or Senator let alone actually protest.

Besides, did you see Dancing with the Stars last night? Man, what an outfit she had on. The wife almost caught me in the bathroom.

Wed, 04/28/2010 - 10:44 | 321698 Cognitive Dissonance
Cognitive Dissonance's picture

Call their bluff. It's that easy.

Sadly the banksters have their tentacles everywhere, including within Germany. Fear mongering is very effective, which is exactly why it is always employed to move the herd.

Round them up, move them out, rawhide.

http://www.youtube.com/watch?v=MSHr4ubuD64

http://www.youtube.com/watch?v=F5N35kQAPv0

Wed, 04/28/2010 - 10:49 | 321699 buzzsaw99
buzzsaw99's picture

The dead rising from their graves, dogs and cats living together, mass hysteria...

http://www.youtube.com/watch?v=O3ZOKDmorj0

Wed, 04/28/2010 - 11:15 | 321756 AccreditedEYE
AccreditedEYE's picture

+100 Great Quote

Wed, 04/28/2010 - 10:54 | 321707 dcb
dcb's picture

why can't middle east terrorists target the right people.

Wed, 04/28/2010 - 10:55 | 321710 WineSorbet
WineSorbet's picture

This is the way the world ends
This is the way the world ends
This is the way the world ends
Not with a bang but a Central Banker.

 

Thu, 04/29/2010 - 00:42 | 322079 akak
akak's picture

Before responding to the virtually ubiquitous ZH poster "HarryWanger", please be aware of just whom and what you are dealing with in this person:

http://www.minyanville.com/businessmarkets/articles/AAPL-apple-gm-psycho...

His real name is James Kostohryz, and he is here posing as a troll in dishonesty and in disregard for the fundamental purposes of this forum. He is NOT posting here in good faith, but is purposely antagonizing those with independent, anti-establishment views and opinions for his own selfish and cynical purposes, as part of a study on "the psychology of permabears". 

He believes that anyone who opposes the current widespread fraud, corruption and rampant lies within our societies and governments are "utopian" and unrealistic, pollyannish dreamers.

And for those ZeroHedgers who are advocates of sound money backed by gold, this bankster shill is already out there with one of the most disingenuous, dishonest pieces of pro-establishment propaganda on the topic, expounding on how such financial integrity is "impossible", and merely "the rants of an ideological fringe":

http://finance.yahoo.com/news/The-Gold-Standard-Solid-as-minyanville-285...

Please do NOT respond to this reprehensible troll, here or anywhere else on ZeroHedge.  He is NOT here in good faith, and should be shunned!

Wed, 04/28/2010 - 10:55 | 321711 Gordon Freeman
Gordon Freeman's picture

While it kills me to give any credit to Old Europe, I have to agree with the posters who think Germany will prove a less tractable patsy than the US Congress to this banking shakedown.

Fuck the banks, let'em fail--the world will assuredly NOT end...

Wed, 04/28/2010 - 10:56 | 321712 yabs
yabs's picture

one ounce of hope here is that europeans are not pussies like the Uk and US citizens

The French epecially

they will not take this , no way wihtout some srious rioting

Wed, 04/28/2010 - 10:56 | 321714 HarryWanger
HarryWanger's picture

You can't fight the Fed and you can't fight the IMF. If money is being thrown in to "fix" the problem then the market continues onward and upward. Same as it did here. 

Wed, 04/28/2010 - 11:00 | 321722 reading
reading's picture

You mean like your aapl call?

Wed, 04/28/2010 - 11:05 | 321737 HarryWanger
HarryWanger's picture

I'm up over 100% on AAPL, I'm not concerned. If anything, another healthy pull back to buy. 

Wed, 04/28/2010 - 11:14 | 321754 The Patagonian
The Patagonian's picture

Since the Senate hearings yesterday focused on transparency, in that spirit, I'd like to ask who exactly do you work for and who pays you to post here?

Wed, 04/28/2010 - 11:24 | 321774 WineSorbet
WineSorbet's picture

As annoying as Wanger is, he is "right".  I use quotes because it's all an illusion but if you examinie this insane kafkaesque financial enviornment, all it takes is some rediculous headline about how this central banker is bailing out that whatever, and the markets shoot up again.  Look, we are already green today and probably the losses from yesterday will be a mere blip by Friday as douche bags like Wanger think AAPL will go to infinity.

Wed, 04/28/2010 - 12:11 | 321911 The Patagonian
The Patagonian's picture

Don't mind me, I'm just pissed that my VA lump sum will come in June at the earliest, and since I live in the eurozone, I wanted to buy physical gold.  I'm just a little cranky that eur/gold shot up so much yesterday.

Wed, 04/28/2010 - 10:58 | 321717 vote_libertaria...
vote_libertarian_party's picture

Hang tough Germany.  Tell them not one Euro until AFTER Greece fires 1/3 of the gvt emplyees and raises the pension age to 70.

Wed, 04/28/2010 - 10:59 | 321720 vegvamp
vegvamp's picture

Markets, seeking certainty, once convinced of the notion that nothing is allowed to fail will forever hold you ransom to that outcome...

Wed, 04/28/2010 - 11:06 | 321739 Overpowered By Funk
Overpowered By Funk's picture

"They promptly brief you how the world will end should one not do their bidding." Like a 2yr old throwing all his toys out of the crib. We all know the IMF and the ECB will get their (ours?) money but, at least make 'em sweat for a while.

Wed, 04/28/2010 - 11:08 | 321743 sweet ebony diamond
sweet ebony diamond's picture

if there is no accountability in this world, why does visa keep sending me a statement?

Wed, 04/28/2010 - 11:09 | 321745 yabs
yabs's picture

you mean markets bseek never ending insanity

Wed, 04/28/2010 - 11:10 | 321747 The Patagonian
The Patagonian's picture

I've suspected this for a good long while now. Despite what their cronies publicly say in the FDP, the neo-lib banksters will pressure the government to succumb, and they will. There will be a German bailout after the NRW elections to "save" the euro.

It won't save the politicians, though. Every party from Die Linke (full disclosure: my party) on the far Left to the Parties on the (what we call) far Right - CSU are against this measure.

This is like when the PTB on a friday in September 08 went to the Congress and Bush Administration and said "if you don't pass this bailout this weekend, the world will collapse on Monday"

People criticize that the EMU has no political will in this crises. On the contrary, political parties from the far left (me) to the far mainstream right (the CSU, not even considering the NDP successors to the NSDAP) are saying in unison a loud and particular "No" to this bailout of Greece

Wed, 04/28/2010 - 11:30 | 321778 hedgeless_horseman
hedgeless_horseman's picture

There will be a German bailout after the NRW elections to "save" the euro.

Except that most Germans hate the Euro, too.

I suggest that the Germans sound a Stuka siren in the room for just 30 seconds before the Frenchy speaks, in order to set the proper tone. 

http://www.youtube.com/watch?v=HFFFN6kRHPQ

Wed, 04/28/2010 - 12:05 | 321897 The Patagonian
The Patagonian's picture

I am not sure if "stuka sirens" is the best way to phrase it over here, but yea, you are correct.  Most Germans (excepting those with businesses who have intra-euro trade with other EMU countries) have always and always will hate the euro.  There is a lot of sentiment for the good, ole strong Deutsche Mark.

It remains to be seen if it makes a comeback

Wed, 04/28/2010 - 12:16 | 321926 hedgeless_horseman
hedgeless_horseman's picture

My point is that it might be good to remind the French of what happened the last time they forced the Germans to pay something for nothing.  They were serving schnapps and streudel in Paris instead of croissants and Pernod.

Wed, 04/28/2010 - 12:20 | 321944 The Patagonian
The Patagonian's picture

Yea, you are correct.  I found this article at http://news.goldseek.com/GoldSeek/1271693749.php

Leaving the euro may be a good idea and the master plan

"

 

The German Government Windfall

First let's consider the current German government situation.   Total outstanding government debt in Germany is equal to about 1.7 trillion euros, and as of 2009, equaled about 77% of the German GDP (according to the CIA World Factbook).   Now let's assume that Germany does exit the economic and monetary union, and when it does so, it creates new Deutsche marks that are exchangeable one for one at the valuation for euros as of that exit date.  After the exit of Germany, let's make the reasonable assumption that Germany's economy remains strong, at least relative to much of the rest of Europe. Let's also assume that with Germany exiting, and perhaps France exiting behind it, that the European monetary union is left with the weaker members where the world in general and investors in particular are quite unsure about the ability of these nations to repay their debts. So the euro plunges.

For our scenario, we’ll assume an immediate sharp drop of the euro in the neighborhood of 30-40% when Germany exits the EMU, relative to the new Deutsche mark.  This value differential is assumed to rapidly increase as an inflation differential builds, and more strong nations leave the euro.  After the passage of a period of time – and it could be months or could be years – we'll assume the currency exchange rate is now 10 euros for every Deutsche mark. In other words, we'll assume that the euro loses 90% of its value relative to the Deutsche mark.   (This assumption is not a precise projection, there are cases for higher and lower projections, but it does have the virtues of being a round number and reasonable.)

With this scenario, Germany's euro-denominated national debt is now worth 10% of what it was when we look at things in Deutsche mark terms rather than the euro, and keep in mind that the German government income from taxes is in Deutsche marks, rather than euros.  Germany is now repaying debt at 10 cents on the dollar (so to speak) and the value of its outstanding debt has fallen from 1.7 trillion euros down to 170 million Deutsche marks – a 90% reduction in net debt. Thus, German national debt (ignoring any new debt issuance) as a percentage of the German economy has dropped from 77% of German GDP down to 7.7% of German GDP.

How much of that extraordinary benefit is realized in practice depends on what happens with German contract law internally. It is highly likely that if Germany leaves the European Economic and Monetary Union and replaces the euro with a new Deutsche mark, that there will be a wholesale statutory revision of internal German contracts, such that what was once payable in euros is now payable in the new Deutsche marks. If this happens, it will minimize many of the internal effects such as the value of German bonds held by a German bank, and this may effectively keep the German banking systems’ government bond portfolio from being effectively wiped out.  However, this probably won’t apply on an international basis, except in the unlikely event that Germany can get full reciprocity from other nations (with German investors who hold euro denominated investments in other nations receiving payments in Deutsche marks instead of euros). Therefore international transactions are where the major transfers of wealth are likely to occur, and Germany may reap a major windfall profit with foreign investors in government bonds, while not enjoying a windfall at all with domestic investors. 

 

(The key principle discussed above is that repegging a currency under statutory law has quite different internal legal consequences than ordinary inflation domestically destroying the purchasing power of a currency.)"

Wed, 04/28/2010 - 14:00 | 322218 bokapita
bokapita's picture

Some of this is true. Of course, as implied in your note, the Euro actually IS the DMark. Your scenario is a little compressed. I think it will play out as follows, once the 'taboo' about countries leaving the Euro (not the same as leaving the EU, remember) is shown by Greeece to be a paper tiger, and ceases to be a blackmail item in Brussels:

1: Greece, pulls out, reverts to drachma, tourism rockets and economy recovers

2: Spain Portugal etc follow suit PDQ. All these economies benefit.

3: For a bit the EU project diehards in Brussels hold the Euro line at the Northern European states (ie Germany, France, Benelux, Finland and whoever else).

4: France gets the jitters as their economy starts to be shafted by cheaper southern european goods. France overnight dumps the Euro in a classic gallic doublecross on the Germans.

5: Now the Euro really IS the DMark, and the seemingly inescapable economic rise of Germany (that 2 world wars failed to contain) continues apace.

6: Germany economy goes from strength to strength, France and the others revert to pre-Euro ups and downs, and all the non German governments quietly give up their ideas of the Greater United States of Europe paid for by the germans and run by the French.

In other words, business as usual in Europe following the 10 year interlude of Euro fantasy.

 

If germany pulls out,

Wed, 04/28/2010 - 11:13 | 321753 CreditcalMass
CreditcalMass's picture

Clearly the Germans and French never got the memo; when your debtor is insolvent the solution is to have them get more leveraged, not cut back on spending.

Wed, 04/28/2010 - 11:25 | 321777 sangell
sangell's picture

Germany used to have a guy who, whenever he had a problem like this, would open his office door an scream for Field Marshal Keitel! Kept all the other Euro nations from making unreasonable demands.

Wed, 04/28/2010 - 11:30 | 321780 Rogerwilco
Rogerwilco's picture

Austerity for Greece? No, it must be austerity for all. Spread the wealth around, share the joy. In fact, que the EU anthem (a bastardized Ode to Joy from Beethoven's 9th), sing loudly now:

Citizens, may Europe flourish,
A great task calls on you.
Golden stars in the sky are
The symbols that shall unite us.
LOL -- Beethoven and Schiller are rolling in their graves
Wed, 04/28/2010 - 13:18 | 322097 akak
akak's picture

I can't help but note that they aren't singing about paper stars in that anthem.

Wed, 04/28/2010 - 11:29 | 321783 Astute Investor
Astute Investor's picture

It's the end of the world as we know it and I feel fine....

Wed, 04/28/2010 - 11:31 | 321786 MsCreant
MsCreant's picture

Everyone is insolvent. They are trying to baffle us and themselves with bullshit. Bankrupt is bankrupt.

THERE IS NO MORE FUTURE TO PULL FROM. WE HAVE RUN OUT OF TIME.

Wed, 04/28/2010 - 11:48 | 321838 economessed
economessed's picture

True -- the data smashes all the hyperbole -- the debts can't be serviced.

But that will not stop anyone from lying, fighting, clawing, or groveling for any advantage -- the pathological urgency to delay and avoid the consequences of our reality will be quite a show.  It could go on for quite a while.  It doesn't change the outcome.

.....if you put a cheeseburger on a table in an empty room and open the door to allow 60 starving people a chance at eating it, 15 will be crushed and die trying to jam through the doorway, 40 will be seriously injured in the fight to put their hands on the cheeseburger, and the remaining 5 will tear it to shreds, grabbing chunks from one another between punches.  In the end, nobody gets more than about 3 calories of nourishment and they all die.

Wed, 04/28/2010 - 13:25 | 322117 Strider52
Strider52's picture

+++1000. I will gladly pay you Tuesday for a hamburger today.

Wed, 04/28/2010 - 11:43 | 321823 malek
malek's picture

German finance minister Schäuble starts sounding like the last clown on that post, Steinbrück.
http://www.forbes.com/2008/10/02/steinbrueck-germany-banks-markets-face-...

"This is not about debt restructuring" - that means in 2 weeks from now at most it will be about one.

Wed, 04/28/2010 - 11:52 | 321853 Me XMan
Me XMan's picture

Greece riches have the money. Get it from them IMO.

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