Former ECB Chief Economist Says ECB Is In Panic, As Czech President Warns The End Of Democracy Is Imminent

Tyler Durden's picture

If anyone thought the bad blood between Germany and the rest of the insolvent proletariat, aka the part of the Eurozone which is out of money (most of it), and which has been now confirmed will be supporting Obama (one wonders what the quid for that particular quo is, although we are certain we will find out as soon as December), complete collapse of the Greek neo-vassal state of the globalist agenda notwithstanding, had gone away, here comes former ECB chief economist Juergen Stark to dispel such illusions. In an interview with Austrian Die Presse, the former banker said what everyone without a PhD understands quite well: "The break came in 2010. Until then everything went well..."Then the ECB began to take on a new role, to fall into panic.... Together with other central banks, the ECB is flooding the market, posing the question not only about how the ECB will get its money back, but also how the excess liquidity created can be absorbed globally. "It can't be solved by pressing a button. If the global economy stabilises, the potential for inflation has grown enormously... It gave in to outside pressure ... pressure from outside Europe" Why, whichever bank headquartered at 200 West, NY, NY might he be referring to?

From Telegraph:

He added that "panic" about the eurozone breaking up was "nonsense" but that the only way to end the crisis was for member states to bring down their debts and implement structural reforms to boost economic growth.


"Governments have recognised that returning to budgetary discipline is indispensable. Markets focus much more on whether states will be able to service their debts in five years' time," he said.


Mr Stark quit in late 2011, following in the footsteps of former Bundesbank head Axel Weber, who stepped down earlier in the year from Germany's central bank because of unease about the ECB's policies.


Mr Weber's successor Jens Weidmann was the only member of the ECB's policy-setting governing council to vote against the bank's new programme earlier this month.


"Weidmann's arguments ... should not be made light of," Mr Stark told Die Presse. "The way in which his position has been publicly commented upon by the ECB leadership has crossed the line of fairness."

And speaking of continuing takeover of the world by a few not so good banks, a loud warning that the advent of globalist influences (i.e., bankers) is taking over Europe and that the "destruction of Europe's democracy is in its final phase" comes not from some European (or American... or Zimbabwean) fringe blog, but from the 71 year old president of the Czech Republic, someone who certainly knows about the difference between communism and democracy, Vaclav Klaus. In an interview with The Sunday Telegraph, "Václav Klaus warns that "two-faced" politicians, including the Conservatives, have opened the door to an EU superstate by giving up on democracy, in a flight from accountability and responsibility to their voters. "We need to think about how to restore our statehood and our sovereignty. That is impossible in a federation. The EU should move in an opposite direction," he said."

Alas, what also is impossible in a Federation is for a banker-controlled entity to provide money out of thin air, i.e., public debt, which dilutes the "common currency" in the process preserving the illusion that credit-fueled growth (the only kinds the world has seen since the advent of the Federal Reserve) can continue for ever, when in reality all that is happening is the ongoing dilution of sovereignty alongside the destruction of individual currencies. This is precisely what the status quo, i.e., the abovementioned company headquartered at 200 West, wants.

And what the status quo wants it always gets, absent a revolution.

Back to Klaus:

Speaking in Hradcany Castle, a complex of majestic buildings that soars above Prague, and is a symbol of Czech national identity, Mr Klaus described Mr Barroso's call for a federation, quickly followed by the German-led intervention, as an important turning point.


"This is the first time he has acknowledged the real ambitions of today's protagonists of a further deepening of European integration. Until today, people, like Mr Barroso, held these ambitions in secret from the European public," he said. "I'm afraid that Barroso has the feeling that the time is right to announce such an absolutely wrong development.


"They think they are finalising the concept of Europe, but in my understanding they are destroying it."


President Klaus, 71, is one of Europe's most experienced conservative politicians; he has served as his country's prime minister twice after winning national elections and will complete his second term as Czech President next year.


Frequently referred to as the "Margaret Thatcher of Central Europe", Mr Klaus was born in Nazi-occupied Prague, played a key role in the 1989 Velvet Revolution that overthrew Communism and became founder of the Czech Civic Democratic Party, which has remained in government for most of the Czech Republic's independence.


He reluctantly recommended Czech Republic membership of the EU in 2004 and five years later was the last European head of state to sign the Lisbon Treaty, delaying signature, under intense international pressure, until all legal and constitutional appeals had been exhausted against it in his country. "We were entering the EU, not a federation in which we would become a meaningless province," he said.




"When it comes to the political elites at the top of the countries, it is true, I am isolated," he said. "Especially after our Communist experience, we know, very strongly and possibly more than people in Western Europe, that the process of democracy is more important than the outcome.


"It is an irony of history, I would never have assumed in 1989, that I would be doing this now: that it would be my role to preach the value of democracy."

Even more ironic than the return of corporation-controlled statism under the guise of socialism, will be the return of fascism, whose neo-variants are already exhibiting themselves in countries like Greece.

But more on that in a few months, when other European countries get sick and tired of the banker oligarchy and realize that there is really no party that represents the people in a world in which democracy is merely a mirage.

And so, once again, the most horrific aspects of humankind history will repeat themselves, only this time with far more potent and destructive weapons to enforce one's ideological superiority, or in this case to preserve an global equity tranche where the legacy wealth is preserved, and which in any normal parallel universe would have long since been wiped out. Just as soon as the "Democratic" emperor is exposed as having no clothes by more than just those who still are not afraid to tell the truth.

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markmotive's picture

Panic is so 2008. I think today's emotion is resignation.

But according to Jim Rogers, 2014 is the time to panic:

jcia's picture

I just read a theory that prince william is the antichrist...2015 is the date.

Coincidence that everybody is talking about hyperinflation 2014-2015?

Precious's picture

The Peter Principle at work.  The incompetent bureaucrats presently in charge rose to their positions because anyone with a functioning brain, bailed in 2010.

GetZeeGold's picture



Turns out "Imminent" going to take a while.


Smoke'em if you got'em.

Vampyroteuthis infernalis's picture

Spoken by a sage. One sign of an impending war is a large population within an age bracket, usually 16-30. Europe is aging, so it is highly unlikely they will go to war. My question is what will happen when the shit hits the fan? Alpo for dinner every night?

saturn's picture

Well, why defend or try save democracy, when it is obviously a huge failure? Why free people should accept a regime who forces an opinion of 51% people over 49% of opponents? We should try to make use of the modern communication technology to team up and design new ways of life and not dwell in the failed model of past couple of millenia - the so called government. The government obviously is not capable of either self reflection or responsibility. What use is this dysfunctional structure for the human kind? I struggle to find a single positive answer.

merizobeach's picture

"51% people over 49% of opponents"

Ah, if it even was such a case, it would much more fair.  The reality is that America had nearly 320 million residents in the last presidential election, 208 million eliglible electors, a (record) 63% voter turnout, and 53% of votes cast going for Obama.  So roughly half of two thirds (of two thirds again) of the residents voted for the sitting president, or about 21% of the people living in the country.  Under Bush, it was even less--about one in six people in the country voted for Bush in the 2000 election.  Hardly as equitable as you portray, I'm sorry to point out.

TheFourthStooge-ing's picture


I just read a theory that prince william is the antichrist...2015 is the date.

Does this theory take place in the DC Universe or the Marvel Universe?

Coincidence that everybody is talking about hyperinflation 2014-2015?


dbomb12's picture

I have heard of that theory, on coast to coast Am with george noory, they also said obama is a real alien from Gliese 581 c

CPL's picture

I understand that he was raised by tibetian monks in the art of ninjitsu.  Trained to fight yaks bare handed, then taught by Mongol tribes people to wrestle bears.  While on an excursion he was taken by aliens to be turned into a manchurian candiate to lead the US into a framework of anarcy never see before.  Plus he can move things with his mind.


Just finished reading a thread on 4chan about the exact same subject.  Yes, that person can vote and is qualified to operate a car.  They are anonymously walking the streets as we speak.  And no they we not trolling because they were getting pretty pissed with us teasing the shit out of him. 

I don't fear governments or armies anymore.  I fear when that person loses their faith in the system or a man and everything moving is a point of complete and utter hatred fueled by pure bat shit crazy.

francis_sawyer's picture

Shape shifting reptilian Mongoliods bitchez!... lol

bigbwana's picture

The Galactic Federation, and they cannot tell a lie, inform us there are indeed shape-shifting reptilians on our planet, many occupying high positions, however, Barack Obama is not one of them. The Illuminati have tried, incessantly, to assasinate him. The GF protect your wonderful President, and the Dark will never succeed. in fact, they have been defeated. Nothing wiill stop Ascension on 21Dec, 2012. Nothing.

css1971's picture

Spread education about how things are. For the problems caused by how things are, point out the real solutions and how and why they're the real solutions. When you find others who see the same problems and solutions.form a coalition and expand.

Ignorance is a treatable disease and the more informed people are, the lower the influence of the batshit crazies.

Translational Lift's picture

Ignorance is a treatable disease

Ignorance may be treatable but being an idealog or absolute prejudice is not.......When one can garner 96% of a voting block no matter what, that group is irrevocably lost.

unrulian's picture

We haven't cured religion...the disease is spreading

savagegoose's picture

i heard that the assumed name, Ba Ra Ka is referrenc to masonic spirtualism, based on egyptian mumbo jumbo , and the uniting of body  mind and soul into the perfect mason.

knukles's picture

 I'd read that he was Irish; O'Bama
Changed his first name from Sheamus....

merizobeach's picture

Baraka is also swahili for blessing.  Feel blessed, bitchez!  If this is a blessing, I'd hate to know what a curse is meant to be.

old naughty's picture

The anti-thinge has to be shadowy...And he hasn't done anything ultra good, so think not.

Hyperinflation 2014-2015, eh when war breaks out, food prices will go skyhigh, so yes, but then the timing is a bit far off. Can we last till then with things 'exponentially' quickening?

PolishErick's picture

my grandmothers theory is that I am the antichrist... if she's right- dont worry- im much too lazy to build an emire of evil on earth.

THX 1178's picture

You don't seriously think the holders of US treasuries will let Benny Boy devalue their holdings for that long. 2014? They've been offloading them for years now, and it is accellerating. I think it will happen in 2012.

lasvegaspersona's picture


I'm with you

I just don't see how we make it to the end of the year. Can European bond sales be adequate or will the ECB have to pump more? Will the world really tolerate QE infinity?  Will someone (country) break ranks and run for the door (trade treasuries for gold)?  Will the USG actually constrain its appetite for spending or will it take what it wants, to hell with the cost (as per Obama's January memo)?

There seem to be a lot of things that have to go perfectly for us to make it to January intact.

traderjoe's picture

I no longer under-estimate TPTB'S ability to extend and pretend.

Haus-Targaryen's picture

BULLISH on a MS-apocalypse.   

sessinpo's picture

Both will have to pump more.This is the currency war that I have just about alone in talking about. The US needs its competition, the euro, to be in trouble so that it can pump the US dollar. And vice versa for the euro.

Unfortunately, Europe is playing against the house, the US, since the US dollar is the currency reserve of the world. Thing don't have to go perfectly. Even if some other major nation fails, as long as Germany is there as the backbone, there will always be enough for "hope" to keep the carnival going.

That is why I find it amusing the Germany bashers or on the opposite spectrum, the anti semites. They(Germans and Jews) aren't the problem. It is the central planners of the EU through the ECB, IMF and World Bank.

dwayne elizando's picture

@THX benny boy is the holder of treasuries.

@sessinpo You're not the only one talking about currency wars by far. Jim Rickards WROTE BOOK NAMED THAT! We all know who he is.

Parabolic's picture

Thank you Mr. Dwayne.  All Hail Jim Rickards...

THX 1178's picture

Benny boy is A holder of treasuries, yes. Not THE holder.

WhiteNight123129's picture

Benny Boy is doing the right thing wacking the holders of treasuries in real term from now on, and from QE3 now we have side ways markets on Equities. The best stimulator of circulation in the real economy is the 2+ 20 fee structure of hedge funds BTW from now on . The explanation is not obvious.


seek's picture

You've only got 3 months left for that call to be good. Things sure seem to be going to hell in a handbasket faster, but I'd definitely take the "over" on that bet.

We might have a war or some other craziness in 2012, but not hyperinflation/dollar devaluation/economic crisis of biblical magnitude.

All of those are coming, though.

dbomb12's picture

Max keiser is betting on it before April 2013

Atlantis Consigliore's picture  video of the EU and the Clousseau FED.

2:00 taking hits off the QE 3-? Pipe gas mask, ha ha hahah,  its a farce, ha ha ha 


DormRoom's picture

Can't help but think of John Law [1] & the Mississippi Bubble when reading articles about the proposed new financial architecture.

 France ultimately collapsed under Law's financial engineering.  Our modern John Law is Robert Ruben.



Nussi34's picture

Our modern John Law is Mario Draghi!

Yen Cross's picture

Let Me Guess?  The outgoing "Squids Speak"?

old naughty's picture

Don't equate him with the squid. He's clearly not of 200 West...

and not of the political elite...and also not of the Krugmanite PhD (he's got to be a PhD, right), so what is he?

Is he helping out on recuriting for the German '300' ? Scary.

Dareconomics's picture

Democracy will be the victim of the drive to create a United States of Europe:

mharry's picture

Why is the ECB worrying about getting money back, they never had in the first place?

jonytk's picture

It's true, they should just do like the FED, send a huge military around the world and spread trillions of newly printed euros around, then the other countries will have no option than buy Europe's goods and debt, the Eur will lost a little value but economy will grow again.

I FIXED the EU crisis... go figure.

in4mayshun's picture

The sheeple don't even deny that they're screwed anymore. They just look at you with a blank stare while they suck down their 900 calorie frapuccino.

FreedomGuy's picture

The sheeple sold their neighbors out, then themselves for a check or some lofty promise of free stuff paid for by someone else. They will believe the lie all the way to the end that it can work if greedy producers will just pay a little more.

FreedomGuy's picture

As an added note: If you are going to beat the socialists you have to beat them BEFORE the checks go out. Once people have a check in hand any principles or political ideology they might have goes out the window. The government check is exactly like crack cocaine. And make no mistake, the adult socialist-collectivists who know the real end game mean it to be exactly that.

holdbuysell's picture

In the US, has anyone here ever had any impact by writing their Congress-critters?

tenpanhandle's picture

yeah, but the impact has been on me.  Now I get spam from every stinking one of em.

Bringin It's picture

Just part of the illusion.  

Urban Redneck's picture

"Think Tanks" are not called such because any thinking actuallygoes on within them, but because they provide the "thought" and intellectual foundation that the congress critters are incapable of.

Short of hiring your own lobbyists, getting a tink tank to publich your thoughts (or rewrite them in other words) is the most effective way of impacting Washington "thought" (unless you live in DC and belong to one of right clubs*).

*Sorry to disapoint the conspiracy cooks but the Bohemian Club isn't one them (although they do have reciprocity).

WillyGroper's picture

Yes. 1990 Sen. David Boren RE: Proposal to change the structure of credit unions. Signature was not a facsimiie. He assured me that he was opposed to such changes in their structure that would place additional taxes on them. He's long gone. His son is much different.  Hmmmmm, wonder what bankster was behind that?

piliage's picture

Klaus takes no crap from anyone. When the Czech's had the rotating EU presidency two years ago, he was probably the most hated man in Europe, as he had the nerve to question the legality of the Lisbon treaty and the rationality of EU 'green' energy tax boondoggles.

Of course, there was always the HUGE sculpture he commissioned for their presidency that got placed at in the entrance to the European Council building. One of the funniest things I've ever seen. Italians having sex with soccer balls, Netherlands under water with Islamic Mosques, Bulgaria as a toilet, Romania as a Dracula theme park, France on strike...too funny.

Actually, the indignant reaction of the Eurocrats was even funnier...