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Ambrose Evans-Pritchard's Contrition

Tyler Durden's picture




 

In a fiery article written today, Telegraph's Ambrose Evans-Pritchard unleashes a scathing critique of Europe's AAA club for daring to demand that Spain actually follow through with what they have been pretending to be doing, namely cutting spending and promoting improved government tax collections. We now know that Spain did neither, with spending increasing while tax revenues dropped from last year (and as we will not tire of pointing out, if the government has lost sight of the ball, and the economy is collapsing, it is not due to a cut in spending but due to its own inability to govern - something the people in a democratic regime usually are quite capable of fixing on their own). But complying with agreements in a broke Europe is not part of the New Normal. His summation, phrase briefly is as follows: "We discover – yet again, you might say – that Germany, Holland, and Finland will not stand behind their solemn pledge of solidarity when push comes to shove. Spain’s premier Mariano Rajoy has been betrayed. Nobody should be entirely surprised if he and the Spanish arch-nationalists in his circle offer a condign riposte, and bring down the entire temple on the heads of the creditor powers." Of course, none of that is true, and what Germany, Holland and Finland are doing is doing their best to get dragged into the money pit that the rest of their insolvent socialist neighbors can so efficiently dug in the last several years.

What the article really is, is simply Ambrose's contrition for misreading the balance of power in Europe. Like so many others, he was all too eager to swallow the misdirection narrative that as a result of Mario Monti's stubborn gambit at the June 27th Euro-summit, the balance of power had finally shifted from the exporting, rich and quite solvent nations, to their liquidity and bailout addicted neighbors, something we claimed all along was a major mistake (see "Europe's Beggars: Bluffing Their Way To Unity And Propserity Via Hijacking And Extortion").

The truth is, at least so far, that nothing in Europe has actually changed, with Germany still calling all the shots - after all they are and always will be Europe's paymaster - and while some may say the ECB eeked out a victory over the German faction (read Weidmann) in the governing council, this too is so far a chimera: so far the ECB has done absolutely nothing due to the conditionality clause, which as Rajoy has demonstrated, is proving to be the biggest stumbling block as it means an overhaul of the top, and the effective ceding of sovereignty to yet another technocratic authority.

As one may expect, Ambrose's expiation is full of sound and fury. To wit:

This deal has been breached. Can we believe anything that the Chancellor of Germany, the prime minister of Holland, and the prime minister of Finland say from now on? The EMU rescue edifice is built on sand.

 

You might say Mr Rajoy had no choice. But he did. There were those whispering in his ear that Spain should instead retake control over its own monetary, exchange, and sovereign policy levers, and break out of its debt-deflation trap.

 

Such a course might or might not be disastrous for Spain, depending on your analysis of EMU’s structural flaws, but it would certainly be disastrous for German and Dutch banks. (Given that it would cause the collapse of monetary union in the worst possible way).

Perhaps a better question is can we believe anything that Europe's insolvent, bailed out countries say from now on, or ever. Just one case in point: Greece, whose economy has never been worse, which has promised for 3 years now to get its act together, and which merely requests more and more aid. Or Italy: remember when the now defunct SMP was used to buy Italian bonds last summer on strict conditionality, which Berlusconi completely forgot about, and which led to his downfall after the then-brand new ECB head, Goldman's Mario Draghi refused to buy Italian bonds for a few weeks, leading to record Italian bond yields, which also led to Berlusconi's resignation and replacement with another Goldman puppet? Or, for that matter, Spain?

All these questions are conveniently ignored, instead the fingerpoint is focused on Germany, for, get this, being smarter than the rest and taking the most advantage of the Eurozone which the ability to grow debt was still there, and everyone was doing great.

The Spanish bubble was after all a joint venture. Spain was flooded with cheap capital from Germany and Holland that it could not prevent or control under the EMU system. Did the German and Dutch regulators recognise the danger, or try to stop the excesses? Not really. They were complicit.

Sure, one can assign blame, point fingers, and bluster until one is blue in the face, but the argument that "it's only fair" only works in hard core socialist nations. Luckily not everyone has gone down that path just yet.

Which then brings us to the crux of AEP's argument: Spain should just leave and stick Germany with the bill:

Mr Rajoy’s authority is collapsing. Some 84pc of Spaniards have lost confidence in his leadership. The current course is becoming hopeless.

 

Today he will announce a fresh round of austerity measures to meet EU targets that cannot be met, adhering to reactionary strategy of "internal devaluation" imposed by Germany that is destroying his country.

 

And now he has just been betrayed by the German bloc anyway. Es el colmo. If he were to request full sovereign rescue, he would most likely be shafted again. Who can blame him for dragging his feet?

 

The temptation to tell the Germans and Dutch to go to Hell – and to pull the pin on their banking systems – must be growing mightily. Desperate men do desperate things.

This argument is based on the assumption that a collapse of the Eurozone which would surely follow, would damage Germany more than it does Spain. This is quite debatable, and so far nobody knows just who will suffer the most: more than anything, there is political gaming of public sentiment than actual hard data.

As a recent example, none other than the FT's own Euroexpert Martin Wolf explained "Why exit is an option for Germany." His argument is spot on: there will be pain but in the end of the day, Germany will survive. The question is what will happen to the already insolvent PIIGS in the meantime.

What the debate about Europe really boils down to is simple: who has the upper hand - the countries that still have vibrant, if deteriorating economies, such as the AAA-club, or those countries which are a lost cause without endless monetary and fiscal support from outside. It is no surprise in this context that Europe, which is increasingly becoming wary of Germany, has fully backed Obama, and his particular approach to "wealth redistribution" by promising, as was noted previously, that it would not make waves until he is reelected. The next question then is how much will US taxpayers enjoy bailing out Spain, Greece, Italy, Ireland etc, if and when Germany does pull the plug. But that bridge will be crossed in due course (if not too long down the road).

For now, what is certain is that the current scorched earth campaign, in which Germany needs a weak periphery to keep the EUR weak, and its export industry strong, is on a collision course with the "welfare" of everyone else. Will Germany finally agree to persist in demanding what is best for its people, or will it succumb to the insolvent, socialist world's fairness doctrine? Today, AEP realizes that the answer is, at least for now, a resounding no. We can see why he is angry, but that does not change the reality that in Europe the insolvent periphery never had the upper hand, and most likely never will. Instead, as has been the case all along, it will be used for whatever political and economic purposes Germany has in mind, and then, when the ability to transfer any wealth via current account funding courtesy of TARGET2, it will discard these countries.

As for AEP's assumption that Spain (and its insolvent brethren) have all the leverage, we will likely soon find out. By now it is obvious that Greece is a day-to-day basket case, whose presence in the common currency is increasingly uncertain. And once Greece is out, everyone else will rush for the exits.

If nothing else, then at least we will finally find out just who had the most to lose from the unwind of the most contrived monetary experiment in modern history.

 

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Thu, 09/27/2012 - 14:11 | 2836153 Cognitive Dissonance
Cognitive Dissonance's picture

"Perhaps a better question is can we believe anything that Europe's insolvent, bailed out countries say from now on, or ever."

Once a habitual liar, always a habitual liar. Particularly when they are rewarded for lying with more fiat crack.

"I will gladly tell you the truth next Wednesday for a fiat infusion today."

Thu, 09/27/2012 - 14:27 | 2836229 redpill
redpill's picture

No one ever believed them, they just all agreed to pretend for awhile.  Then they put on this ridiculous spectacle of fake outrage when what they knew all along finally becomes undeniable when the curtain gets pulled back.  Spineless political vaudville actors without the balls to address reality.  Worthless human beings.

 

Thu, 09/27/2012 - 14:33 | 2836245 Abraxas
Abraxas's picture

I don't think they are consiously lying... they are simply so much in double-think that they don't even know the reality any more. It's a professional requirement, just as it is with the lawyers... and doctors... and educators...

Thu, 09/27/2012 - 14:52 | 2836293 bank guy in Brussels
bank guy in Brussels's picture

As Tyler himself admits in the above article:

« ... nobody knows just who will suffer the most ... »

re a disorderly exit from the euro by the Mediterranean countries.

Tho what is not emphasised enough above, as some other ZH articles pointed out long ago, is that the German banks, insurers and pension funds are truly vulnerable ... if they weren't, Germany and their super-mini-troika with Netherlands and Finland, would have pulled the plug a long time ago.

Evans-Pritchard is not angry because Germans said 'no', it is because they welshed on an important hard-fought deal, that was essential to Europe stabilising.

And he is not 'contrite'. Evans-Pritchard has long consistently held that the southern countries should consider leaving if Germany does not lead the Northern countries out first (his preferred solution).

This AAA 'no', Germany with Holland and Finland backing out of their earlier deal, is not a 'no' deriving from a strongly superior position, as Tyler thinks, but admits he cannot confirm ...

It is no more than one more poker-game 'no', as both the creditor and debtor countries are playing chicken ... gambling that no one will detonate the bomb in this game-theory exercise. A gamble that may shortly explode.

It is true that the debtor countries are backing out of the brutal 'austerity' cuts ... but they have more moral right to do this, because those troika-demanded cuts are inhuman and destructive to the peoples of those nations, as ZH has shown. They create death-spirals, as ZH has so well documented in Greece.

A normal and fair bankruptcy-type restructuring, seems to be impossible here in the euro-zone, because of genuine fears that the unknown consequences are catastrophic. These fears are reasonable even if erroneous.

So what we have left is this poker game. When the euro-zone starts breaking up ... my guess is still Italy under Berlusconi doing it first ... then, at that point, as Tyler says, indeed

« at least we will finally find out just who had the most to lose from the unwind »

Thu, 09/27/2012 - 15:25 | 2836417 M.B. Drapier
M.B. Drapier's picture

They create death-spirals, as ZH has so well documented in Greece.

It's completely bloody bizarre that ZH has more or less totally reversed its position here from the one it's taken over Greece, among other things. If you had to cut rough on one bailout recipient, Spain or Greece, it would be Greece, where the root problem has always been public spending, not Spain, where the problem is, to a large extent, the Spanish state being forced into bailing out foreign creditors in private-sector banks.

Thu, 09/27/2012 - 15:35 | 2836450 Abraxas
Abraxas's picture

@ M.B.

I tried to +1 you for non-conformism, but the damn thing does not work (and only for your post).

Fri, 09/28/2012 - 02:18 | 2837775 matrix2012
matrix2012's picture

"@ M.B.

I tried to +1 you for non-conformism, but the damn thing does not work (and only for your post)."

cuz M.B. italized his very first line making the arrows paralyzed for most of the browsers

 

if a nation must do some sacrifices, the 1st batch to let go should be those ailing financial instititutions incl. the ailing banks!  the people incl public employees should come as the last... unless they hv ridiculous benefits such as the beach guard or school administrator in California with pays of many hundred Ks and millions in welfare :D LoL

a nation should hv the courage to say big fcuk to those bankster's tools and demolish them within its border!

provided the nation has a good, effective, non-corrupt leadership... not the kind of "enemy from within"

a nationalistic point of view is as relevant today as it does in the nation-state history, folks should not be fooled with the globalist propaganda to disgrace it!

 

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague." -- Marcus Tullius Cicero

 

QUiZ: are you ZHers aware of the centuries old practice undertaken by a particular group of cabals whereby they would change their name, in order for them to appear part of the dominant race of the country in which they lived, so as they could obtain influential positions in that country, which they would then exploit to serve their real masters elsewhere.  There is plenty of evidence to prove them continue that deceptive tradition ???

got it already? :-)

Sat, 09/29/2012 - 14:33 | 2841816 Kobe Beef
Kobe Beef's picture

Cicero was right. It is the same problem all over the West: traitors within.

Fuck the TBTF. They've already failed; and thus every expense taken, every pact broken, every pension stolen, from here on out, is a sunk cost. Let them fail.

Though the heavens fall, the Bank must die. And its patrons with it.

Thu, 09/27/2012 - 15:33 | 2836458 Tyler Durden
Tyler Durden's picture

This is incorrect. Perhaps you missed the chart showing that the ECB is now funding SPANISH banks to the tune of €412 billion to offset the complete collapse of faith in the system manifested by a record deposit outflow.

You may be shocked to learn that the bulk of creditors (and equity holders) of Spanish banks are other Spanish banks as well as the local population both directly and via local pension and welfare funds. Spain's politicians don't care about foreign creditors. They only care about themselves and what would happen if the population realized the truth of country's sovereign and banking sector insolvency.

Oh and Spain has a massive public spending problem, which will become evident in the annual December deficit revision (recall what happened in December 2011).

What is going on now is hope and prayer that everyone sticks their heads in the sand over the threat of M.A.D. because nobody wants to be the one who pulls the pin on the grenade, although it seems the time of Greece is coming.

Thu, 09/27/2012 - 16:14 | 2836576 falak pema
falak pema's picture

the damning epitaph on the Euro game is that the "core euro group", caught in the PANICK of their Merkel dictat of 2009 have NOW joined in 2011/2012, the scam against peripheral Euro nations, like the ANGLO HFs, to profit from the disarray of Club Med TO PROTECT THEIR OWN BANKS; instead of having been JOINT and SEVERAL from day 1 in 2009. They should  have imposed on FED and POTUS their joint refusal of Euro group to allow the banking cabal to pump MORE and MORE their shadow banking plays on interest and CDS bets that INEVITABLY led to Euro sovereign BUBBLE; like it is DOING currently with Commodity bubble in China and Brazil. The new Bubble as the Oliver Wyman article has amply pointed out! 

This bubble economy is the cancer of Oligarchy Banksta world that ONLY pumps n dumps for the 1% !

ANd Merkel and Sarko and all the others were IMPOTENT to stop this, IF WE GIVE THEM THE BENEFIT OF THE DOUBT; to save their banks they became patsies; and now it looks like its too late.

Water under the bridge. Whatever the KAntian Dream of origin. 

Thu, 09/27/2012 - 16:29 | 2836650 GCT
GCT's picture

Falak I agree with you too a point.  You can pick almost any western industrial country and the politicians got greedy nothing more in my mind.  I may be wrong on this and thats ok with me as I am here to learn.  Greed got us here and making promises the politicians knew one day would implode to garner votes and keep them in power.  Many countries including the USA are reaching that point. 

I do have a general question for you smart folks. Could this have been avoided?  I think it could but it would have taken courage and leadership.  We lack leadership and we have career politicians that want to stay in power so they got the banksta's to help them stay in power.  The banksters were happy to do this as they now own almost every government on earth. 

Even we Americans over consumed to keep up with the Jone's and now blame others for our stupidity.  I look in the mirror and see I am to blame for my actions.  Therefore I do not play this game.  Do I look at this problem from the wrong perspective? 

Thu, 09/27/2012 - 16:42 | 2836709 falak pema
falak pema's picture

Its a step at a time, those who lead us : MAchiavelli's sons, have learnt over centuries, how to match their personal agendas with the general decay allowed to occur to their advantage. Decay is Man's destiny so why fight it is their lucid analysis; use it. 

All very well until the great Ferris  wheel of fortune goes out of control...and it always happens when we least expect it; where we tower like a Colossus over the world; its called hubris. 

Thu, 09/27/2012 - 17:51 | 2836895 M.B. Drapier
M.B. Drapier's picture

Perhaps you missed the chart showing that the ECB is now funding SPANISH banks to the tune of €412 billion

Funding? Come on, you know the issue isn't who lends money to Spain's banks and gets it back - in order to tide them over so that others actually pay for the losses - but who, indeed, is going to pay for the losses by giving the Spanish banks money and not getting it back. The cost of capital isn't even an issue, the ECB being a central bank. If and when the ECB actually takes losses on its (incidentally, illegal) lending to insolvent Spanish banks then the EU core will have actually contributed to the Spanish bank bailout. Until they actually lose money on the Spanish bank rescue in that way or some other, then they haven't.

You may be shocked to learn that the bulk of creditors (and equity holders) of Spanish banks are other Spanish banks as well as the local population both directly and via local pension and welfare funds.

Taking it for granted that the Spanish banking sector as a whole is, well, a black hole, surely the question is, roughly, the proportion of money it owes to Spanish non-bank creditors and equity holders as opposed to non-Spanish (bank or non-bank) ones. Given all those credit inflows to Spain over the past while, I doubt that the answer at all near 100%. Yet the Spanish taxpayer should pick up 100% of the bill for the bailout? Go figure.

Oh and Spain has a massive public spending problem

I don't doubt it. Please, give the Spanish government lots and lots of stick when it cynically understates its deficits, fails to implement agreed cutbacks, and does all the other things that EU "program countries" are prone to do to try to push the cost of their public spending onto the EU core to the maximum extent they can get away with. None of this changes the fact that the EU core is, at the same time, trying to push the cost of bailing out its own banks onto the periphery to the maximum extent possible. It's often not clear to what extent the EU is fighting over one or the other of these issues, partly because both sides often want to muddy the waters. But in this case, the one AEP was writing about, it's crystal-clear that the money which peripheral Tweedledum and core Tweedledee are fighting over is peripheral private-sector bank debt and not peripheral public spending. "But what about Spanish public spending?" doesn't change that.

What is going on now is hope and prayer that everyone sticks their heads in the sand over the threat of M.A.D. because nobody wants to be the one who pulls the pin on the grenade

Sure. But while no-one wants the hot potato to drop yet, no-one wants to hold it for any length of time either. Again, what we have here is the EU core cynically trying to push its share of the bailout shitburger onto Spain, while tomorrow we'll likely see Spain cynically trying to push its share of the burden onto the core. Again, it's not really clear how this makes the EU core the good guys.

And none of this addresses the question of Spain versus Greece. Everything that you have accused Spain of, Greece is guilty of too. The major difference is that Spain has an additional excuse - a partial excuse, as I said above - that Greece doesn't. Yet Greece is a victim but Spain is a simple villain?

Thu, 09/27/2012 - 17:46 | 2836883 One eyed man
One eyed man's picture

It is true that the debtor countries are backing out of the brutal 'austerity' cuts ... but they have more moral right to do this, because those troika-demanded cuts are inhuman and destructive to the peoples of those nations, as ZH has shown. They create death-spirals, as ZH has so well documented in Greece.

So firing a bunch of lazy and overpaid bureaucrats would be "inhuman"? What a laugh!

Actually firing useless government workers and allowing insolvent and dysfunctional banks to fail would be be best thing that Spain could do to begin rebuilding its economy.

If the Germans were smart they would quit the euro. The convenience of a common currency is not worth the price the PIIGS are asking. But this would require the Germans to admit to themselves that they (or rather their bankers) had been suckered by the PIIGS. So my guess is that they will stick it out to the bitter end.

Fri, 09/28/2012 - 07:15 | 2838012 Marco
Marco's picture

Austerity in these countries is no different from austerity in a gold standard country. Either way you can't print away the debt overhang ... but it's the ZH concensus that's unnecessary. Austerity should just produce a short sharp depression.

Personally I think the ZH concensus is idiocy and they have blinders on concerning the importance of wealth (land) distribution and of course energy to economic recovery.

Thu, 09/27/2012 - 14:10 | 2836157 Northeaster
Thu, 09/27/2012 - 14:14 | 2836176 Cognitive Dissonance
Cognitive Dissonance's picture

A paltry $16 Million fine.

At most an hour or two of profit for GS. Put it down as the cost of doing "bidness".

Thu, 09/27/2012 - 14:18 | 2836190 pasco35
pasco35's picture

The fine should be 100 times that!!!

 

-Frank
https://www.youtube.com/watch?v=r8uvzeZyv_c

Thu, 09/27/2012 - 15:42 | 2836489 SmallerGovNow2
SmallerGovNow2's picture

Ditto, nothing when you control trillions.  Million seconds?  12 days, Billion seconds?  32 years, Trillion seconds? 32,000 years....

Thu, 09/27/2012 - 14:53 | 2836297 Arnold Ziffel
Arnold Ziffel's picture

Jail is for 'the little people.'

Thu, 09/27/2012 - 15:18 | 2836382 RSloane
RSloane's picture

That has never been truer than it is now. You could steal a loaf of bread in California, and if its strike three [you stole milk and eggs previously], you can get 25+ years. You break into a gas station and steal gas because you can't afford it, you get thrown in jail. BUT if you're Corzine or from GS you are punished by being sent to a tropical beach and are inflicted with the presence of girls a generation younger than you who will hand it over for some cash and the good life. I realize there are people out there who are stealing because they want to and are not good people, and should be locked up. My argument is so should Corzine and GS who have stolen millions and millions. No justice, none.

 

Fri, 09/28/2012 - 05:34 | 2837945 matrix2012
matrix2012's picture

"Jail is for 'the little people."

 

<Aussie> TOO RIGHT !!!

"We hang the petty thieves and appoint the great ones to public office." -- Aesop

Thu, 09/27/2012 - 14:11 | 2836159 Squid Vicious
Squid Vicious's picture

I really believe them this time... and so does Mr. Market! yay!

Thu, 09/27/2012 - 14:27 | 2836162 kato
kato's picture

The Telegraph and The Times have horrible/delusional economics writers. But then, so does the NY Times.

Thu, 09/27/2012 - 14:45 | 2836277 spentCartridge
spentCartridge's picture

Yeah.

Anatole Kaletsky is a fucking madman.

 

Thu, 09/27/2012 - 14:57 | 2836302 neptunium
neptunium's picture

Well that's a fair cop but at least AEP has generally been correct (at least moreso than most of the MSM) in highlighting that the Eurozone was unsustainable and doomed to fail from the outset for several years, it's anyone's guess at this point what the 'failure mode' will be, the bottom line is that nations are acting in their own best interests within an economic construct that to its protagonists is designed to supplant nation-state democracy.

Both the core and periphery are going to be fucked either way, it's going to hit germany hard as an exporter and creditor, at least the peripheral nations, free from the shackles of unpayable debt and with a devalued currency might have a hope of inward investment and would at least be competitive again.

Thu, 09/27/2012 - 14:12 | 2836166 realtick
Thu, 09/27/2012 - 14:14 | 2836174 A Lunatic
A Lunatic's picture

Pinocchio would be proud.........

Thu, 09/27/2012 - 14:19 | 2836186 gjp
gjp's picture

Same question applies to the global trade mess.  Who has the upper hand - perpetually bailout and helicopter-dependent America with its endless trade deficits, or its Asian suppliers who, while admittedly energy-poor have built productive infrastructure (and a few empty cities too) at enormous scale in the past several decades.

American taxpayers will rescue insolvent PIIGS?  Good luck with that.  Those Benny Bux will be worthless by then and America has nothing else to give.

Thu, 09/27/2012 - 14:19 | 2836195 rsnoble
rsnoble's picture

Tax the fuck out of the poor. Great idea. I can't believe the US hasn't come up with that brilliant idea yet.  They're working on it though with such solutions as the carbon tax.  Triple people's energy bill that can't afford what it is now.  That will work great also.

Thu, 09/27/2012 - 14:26 | 2836222 Dr. Engali
Dr. Engali's picture

The U.S has been taxing the fuck out of the poor...it's called inflation and the poor haven't seen anything yet.

Thu, 09/27/2012 - 16:42 | 2836710 unununium
unununium's picture

It does look like gasoline could break out to the upside.

Thu, 09/27/2012 - 14:27 | 2836224 CommunityStandard
CommunityStandard's picture

Inflation is a tax on the poor.  QEInfinity, here we come!

Thu, 09/27/2012 - 14:20 | 2836200 davidsmith
davidsmith's picture

You are using a cannon to swat a fly.  Who reads Evans-Prichard?  Everyone knows he was conceived during a nuclear test.

Thu, 09/27/2012 - 21:13 | 2837327 Bringin It
Bringin It's picture

The funny thing about Ambrose is the way he managed to reinvent himself after dropping the Vince Foster "suicide" story, which he was all over for a while.

Thu, 09/27/2012 - 14:20 | 2836201 ParkAveFlasher
ParkAveFlasher's picture

At the risk of sounding ridiculous, I have no idea what any of this means regardless of how well analyzed, summarized, and documented the articles put forth by ZH are along with the comments that follow. 

This is some kind of soap opera right now.  I only brighten up when Bunga Bunga enters the room because that's the guy that gets the chicks. 

I like that picture of the Greek Ministry of Finance.  I'll stick to that for understanding, and Bunga Bunga.

Thu, 09/27/2012 - 14:26 | 2836217 centerline
centerline's picture

Yup.  Financial theater up front.  Behind the scenes the "Ministries of Finance" are trashed.  Either they are all working for the same team - or we have a regular Mexican standoff going down.

Pass the beer nuts please.

Thu, 09/27/2012 - 16:11 | 2836608 lakecity55
lakecity55's picture

In The News Today

American Patriots fighting the international banker army, have enlisted the aid of Pancho Villa IV.

"These Mexican fellers shore have a u-neek way of handlin' bankers," said Jethro Bubba, of Anywhere, Mississippi.

Thu, 09/27/2012 - 14:48 | 2836280 Solon the Destroyer
Solon the Destroyer's picture

Aww, Bunga Bunga, that reminds me..

So which ex-Goldmanite are we hiring for Premier of Spain?

Cause that's the next step.

Thu, 09/27/2012 - 14:53 | 2836294 slaughterer
slaughterer's picture

"So which ex-Goldmanite are we hiring for Premier of Spain?"

Jim O'Neill can speak Spanish well enough to get along there. 

Thu, 09/27/2012 - 16:44 | 2836715 unununium
unununium's picture

Juan Corazon

Thu, 09/27/2012 - 14:22 | 2836210 davidsmith
davidsmith's picture

"how much will US taxpayers enjoy bailing out Spain, Greece, Italy, Ireland etc, if and when Germany does pull the plug."

 

And don't forget the Illinois teachers' pension plan!  ZH my friend, there's $60 trillion more in bailouts to come, before everything collapses.  Nothing, NOTHING, will stop those bailouts from occurring.

Thu, 09/27/2012 - 14:49 | 2836284 j8h9
j8h9's picture

Yes, I heard they are going to provide printing presses to each state so we can print more money all over America, save us, Europe, everyone!

Thu, 09/27/2012 - 14:25 | 2836215 Zeilschip
Zeilschip's picture


Ambrose Evans-Pritchard = JOKE

Thu, 09/27/2012 - 15:36 | 2836470 falak pema
falak pema's picture

AEP, the messenger boy, now all confused by the immensity of the conundrum, hanging like a black, menacing clowd over his own world; the one he thought WAS civilization. 

Not that it isn't in substance but is NOT in current manifestation of ephemeral power play...."The US bestrides the word like a Colussus..."

Paul Wolfowitz, 1991, herald of NWO for his Emperor, Bush Snr. 

Thu, 09/27/2012 - 14:25 | 2836216 Brit_Abroad
Brit_Abroad's picture

Another guy who unfortunately hasn't managed to join up all the dots.

Stay behind after class.

Thu, 09/27/2012 - 14:28 | 2836223 gojam
gojam's picture

This article a bit harsh on Ambrose E-P, IMO.

Thu, 09/27/2012 - 14:27 | 2836226 vintageyz
vintageyz's picture

ZH gave Mr. "huff-huff hyphenated" Evans-Pritchard a new asshole.  Good rip, ZH

Thu, 09/27/2012 - 14:30 | 2836236 Peter K
Peter K's picture

AEP unfortunately drank the KOOL-AID. But he wasn't the only one. Peter Tchir did also. Sad, but it happens.

Thu, 09/27/2012 - 14:32 | 2836238 Kaiser Sousa
Kaiser Sousa's picture

hey Tyler, and im asking sincerely...

how does germany have the uppper hand if the Piggs can just continue to talk about reform but never seriously implement genuine reform while continuing to be bailed out by Germany or the ECB????

it seems to me until they tell Greece, Spain, Italy, and the rest ur not getting any more worthless Euros unless you cede sovereignty and live like serfs in debt slavery forever they r the ones in control of the situation.......

help me out bro.....

 

Thu, 09/27/2012 - 14:33 | 2836244 Tyler Durden
Tyler Durden's picture

Cash: it runs out. See next post on Spain.

Thu, 09/27/2012 - 14:39 | 2836268 Kaiser Sousa
Kaiser Sousa's picture

thanks...

Thu, 09/27/2012 - 15:18 | 2836356 falak pema
falak pema's picture

cash : its printed all over the world by the most powerful; and the TD's cannot deny That

But, what they can deny is : its not Who prints, may he be God's messenger in his OWn eyes, its What he prints. Is it money or is it JUST paper?

That is a question that NO man can impose on the Laws of mathematics and human expectations; whatever "the powers that be" they end up Naked like in the Chinese tale of Emperor. 

Its always the issue of substance over symbol of legitimacy, power icons, that decides the fate of Empires. 

Pax Americana is no exception. its the verdict of History since Siege of Troy and birth of Oligarchy;  inception of Hubris and its sanction by Nemesis. The circle of Dharma, the judgement of Karma.

West meets East, may the twain never distend, always stay in step. Jihad and Crusade the unacceptable faces of Man.

Thu, 09/27/2012 - 15:00 | 2836308 bank guy in Brussels
bank guy in Brussels's picture

Tho the running out of 'cash' is due in large part to the miserable traps in which these Mediterranean countries have been placed, under doomed 'austerity' plans and without policy tools to remedy their own situation

Like the overloaded-to-max debt UK, which yet can borrow at 1% because they have their own currency

Also, as many Tyler Durden articles on ZH have pointed out, there is very little 'cash' for the debtor nations out of the bailouts ... most of that cash is simply recycled back northwards to German and French banks and the ECB etc

The chance to get real 'cash' of their own might be higher for Spain and Italy if they blew out of the euro right now, with a transitional moratorium on all public debt till they figure out default parametres

---

Ambrose Evans-Pritchard is suggesting that Rajoy now has moral grounds to take Spain and do an Iceland -

And Iceland is doing pretty well, it is one of the most oft-cited positive examples by ZH and its readers ... a country that didn't ravage its citizens with 'austerity', and actually increased aid to poor and workers while bankrupting and defaulting and devaluing

So why isn't ZH cheering now, that Ambrose Evans-Pritchard is suggesting that Spain do what Iceland did?

 

Thu, 09/27/2012 - 15:20 | 2836393 Tyler Durden
Tyler Durden's picture

By all means let them pull an Iceland. That is not at all what AEP is suggesting, as he has made it quite clear that should they do that there will be unprecedented political consequences for everyone involved (and he is certainly right).

What he is, or rather was, saying is that Spain has the negotiating leverage to bend the AAA club to its will, as per his interpretation of the Eurozone summit from June (one which you consistently implied was right). Today he is shocked that is not the case as per the ESM conditionality.

Well, let's see: if that is indeed that the case they should exit tomorrow and stick Germany with the bill to rescue DB. Not only is Rajoy not doing this, he is terrified to even enact the process which he has been so happy to take advanage of: the ECB's conditional backstop of Spanish bonds (as explained in "In Order To Be Saved, Spain And Italy Must First Be Destroyed").

No, the point AEP made is that he was convinced, as you repeatedly commented in various posts, that Germany has lost the upper hand in the European balance of power. Today he realizes it never did.

Thu, 09/27/2012 - 15:49 | 2836522 RSloane
RSloane's picture

There should be unprecedented political consequences for the ECB, the politicians, and the banks. Good God, if the people have the power to destroy the false edifice built to contain and oppress them, then let the people destroy it and its creators and start building again without them.

Thu, 09/27/2012 - 16:01 | 2836577 Solon the Destroyer
Solon the Destroyer's picture

Well AEP did write these lines on Sept 24 (w.r.t. Portugal):

While mass default within EMU is theoretically possible, the country would do better to leave monetary union and restore global competitiveness at a stroke.

I think he is more for the breakup of the EMU than he is being portrayed.

But I also think your comment about miscalculating the balance of power is also correct too.

Fri, 09/28/2012 - 02:13 | 2837787 natty light
natty light's picture

He who has the geld makes the rules.

Fri, 09/28/2012 - 21:47 | 2840771 Rudini
Rudini's picture

That much the better. Either stiff 'em or shut up. The question is 'who will own the banking and manufacturing assets' in the end? Germany or Spain?

Fri, 09/28/2012 - 21:48 | 2840772 Rudini
Rudini's picture

That much the better. Either stiff 'em or shut up. The question is 'who will own the banking and manufacturing assets' in the end? Germany or Spain?

Fri, 09/28/2012 - 21:43 | 2840750 Rudini
Rudini's picture

Spot on dude!

Thu, 09/27/2012 - 14:32 | 2836240 -273
-273's picture

Not sure why you are picking a fight with him, he has been as close to correct with his predictions as ZH has so far, and many of those predictions which have come true have been similar to yours. He is one of the few economic writers worth reading IMO.

Thu, 09/27/2012 - 14:34 | 2836249 Moon Pie
Moon Pie's picture

Bullish on Peseta.

 

Thu, 09/27/2012 - 14:37 | 2836262 Kaiser Sousa
Kaiser Sousa's picture

exactly....but the people have to wrestle control from banker owned politicians...and beleive me it will require violence.....

Thu, 09/27/2012 - 14:35 | 2836252 machineh
machineh's picture

Ray Dalio pointed out last week that the peripheral eurozone countries constitute a MAJORITY of votes on the ECB board.

Just as the hard-currency club of Germany, Netherlands and Finland constitutes a minority -- that's why have private meetings and then issue peremptory communiques.

So contrary to AEP, there ain't gonna be no Spexit. But there might be a 'norexit' of the AAA club.

Thu, 09/27/2012 - 14:57 | 2836304 slaughterer
slaughterer's picture

Ray Dalio is correct about the constitution of the ECB board.

Ambrose has been very accurately predicting and describing the game theory behind the EU crisis.

But this latest volley is really involuted and difficult to grasp.  He is over-reflecting and letting his emotions run away. 

 

Thu, 09/27/2012 - 14:36 | 2836257 Piranhanoia
Piranhanoia's picture

I want to know what Ambrose Wolfinger has to say about it. 

Thu, 09/27/2012 - 14:39 | 2836271 markar
markar's picture

Here's your US tax on the poor--baked in the cake:

 

SS trust fund goes kaboom 10 years early=25% AUTOMATIC CUT TO BENEFITS.

Thu, 09/27/2012 - 14:47 | 2836278 Hedgetard55
Hedgetard55's picture

Ambrose has been a douche from the beginning.

Thu, 09/27/2012 - 14:51 | 2836291 Alcuin Bramerton
Alcuin Bramerton's picture

Maybe read the runes here. There is a finely nuanced media powerplay going on. Ambrose Evans-Pritchard is a British Intelligence asset. Banco Santander is big in Britain.

Thu, 09/27/2012 - 15:07 | 2836322 Sandmann
Sandmann's picture

No Banco Santander is a basket case in Britain with a reputation like silt in a riverbed

Thu, 09/27/2012 - 16:00 | 2836574 lakecity55
lakecity55's picture

We need to send in Pepe Escobar for a read on this.

Thu, 09/27/2012 - 14:56 | 2836301 Shermanium
Shermanium's picture

fta: "Did the Spanish make big mistakes? Of course. But the ECB and the European Commission did not make that critique at the relevant moment. They too were smoking weed."

Thu, 09/27/2012 - 15:06 | 2836320 Sandmann
Sandmann's picture

Ambrose Evans-Pritchard suffers from Vansittartism and is a Germanophobe. There is no problem that cannot be blamed upon the Germans. His father was a Social Anthropologist

http://en.wikipedia.org/wiki/E._E._Evans-Pritchard

and Ambrose fancies himself as The Purveyor of Truth with Infallibility as his mitre. He is bombastic rather than reflective and sets off at weird tangents. Then again The Telegraph is an anti-German newspaper with peculiar Financial Writers like Jeremy Warner who is simply an apologist for The City. As for Kaletsky in The Times, he is simply a mouthpiece for Hedgies who pay for his Consulting Firm to advise them on the mysteries of how to read tealeaves when silver is pressed into his sticky palms.

Ambrose is cartoonish

 

Thu, 09/27/2012 - 16:05 | 2836596 Jack Sheet
Jack Sheet's picture

Correct. I gave up reading Ambrose EP in 2010 because he changed direction more often than a British manufactured car in overdrive on a straight road.
Intersting post though TD, even if the spelling is "eked" out.

Thu, 09/27/2012 - 15:13 | 2836351 Jim in MN
Jim in MN's picture

You need to read back a few days.  In his recent post "Be Very Careful, Beloved Spain," Pritchard lays out what he's really afraid of and why he's becoming so frenetic in his commentary:

 

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100020330/be...

 

We are moving from the financial phase of this crisis to the full-blown political phase. It really is playing out like the 1930s.

People sometimes ask when I became a pessimist. The answer is the summer of 1991 when I accompanied Serb troops into the Baroque city of Vukovar – shattered by howitzer shelling within a comfortable drive from Vienna, and strewn with the bodies of dead children – and watched 300 wounded prisoners taken from hospital. I assumed they were at last safe. We learned later that they were machine-gunned shortly afterwards at a collective farm nearby.

The unthinkable was happening before my eyes, though it was small in scale compared to the slaughter of 8,000 Bosnian Muslim men and boys at Srebrenica, which I later covered at a trial in The Hague.

When things go wrong, they really go wrong. Cuidado, Querida España

 

Thu, 09/27/2012 - 15:15 | 2836353 M.B. Drapier
M.B. Drapier's picture

Whaat? What what what? There are two different issues here, and the ZH post deliberately conflates them. On the one hand there is the issue of Spain's general public debt, public deficit and public spending. For now let's take it as read that Spain is guilty as charged on that one. The other, second, issue is the bailout of Spain's banks - in other words, to a large extent, the bailout of feckless creditors in core EU countries. I remember when the Zero Hedge editorial line used to be generally against massive public-sector bailouts of rotten private-sector megabanks. Now it turns out that these bailouts are peachy, but only if they're paid by the taxpayers of broke EU countries to the tick-like megabanks of other, slightly-less-broke EU countries? Oh please. The plan which the EU core just weaselled out of (though to be fair, it's pretty unclear how much they ever weaselled into it in the first place) would still have seen EU taxpayer money infused into the tick-banks, but it would at least have a) been less of a rip-off, as it would have seen the bank-bailout recipients in the core pick up some of the tab for their own bailout, and b) pitched Spain less far into the fiscal black hole. Of course, the kicker is that when Spain's debt problems reach Greek levels, the EU-core apologists will continue to conveniently and deceitfully make no distinction between the money the Spanish state borrowed for pensions, public salaries etc. and the money it spent bailing out Deutsche.

All these questions are conveniently ignored, instead the fingerpoint is focused on Germany, for, get this, being smarter than the rest and taking the most advantage of the Eurozone which the ability to grow debt was still there, and everyone was doing great.

No. The finger is not being pointed at Germany for allowing its creditors to lend reckessly all over the EU. The finger is being pointed at Germany for allowing its private-sector creditors to lend recklessly all over the EU and then screwing peripheral taxpayers for the bill to cover their losses. This is not a subtle distinction. Germans can blow their money on lunatic foreign investments all they like.

Sure, one can assign blame, point fingers, and bluster until one is blue in the face, but the argument that "it's only fair" only works in hard core socialist nations. Luckily not everyone has gone down that path just yet.

Holy cow. Do you mean the hard-core socialist nation of Germany, where many people profess that it's only fair that the Spanish taxpayer should pick up the bill for "the failures of Spanish bank regulation"? Not only is this a fairness argument. It's a false, risible fairness argument, which assumes that the Spain has full moral responsibility for any losses that EU core members suffer playing the Spanish bank-debt markets, as if the German banks were six-year-old children and the Spanish banking and property industry was a playground owned and operated by the Spanish bank regulator. Again, it didn't used to be the ZH position that taxpayers were responsible for picking up all the losses of bank creditors. Holy cow.

Thu, 09/27/2012 - 16:09 | 2836605 Panafrican Funk...
Panafrican Funktron Robot's picture

Agreed.  Bleeding the taxpayer, even the Greek taxpayer, to extract the pound of flesh for the bankers and their proxy governments is never o.k.  Tylers are getting myopic.

Thu, 09/27/2012 - 16:20 | 2836627 Tyler Durden
Tyler Durden's picture

Reread the article as it says nothing whatsoever about keeping the Eurozone intact to appease a few "good" bankers. We have always said, and always will, that the Eurozone is unsustainable period, and it will collapse. The only point of this piece is who has the balance of power in Europe, and why those who believe the periphery achieved a coup in June are wrong. Also, read this comment

Thu, 09/27/2012 - 16:55 | 2836744 unununium
unununium's picture

Thank you for clarifying that.

Thu, 09/27/2012 - 16:30 | 2836661 KnowIDontKnow
KnowIDontKnow's picture

+1

Thu, 09/27/2012 - 15:19 | 2836390 OhMy
OhMy's picture

ZH clueless again: if you cut spending in a shrinking economy *of course* you will miss your targets: tax receipts will fall short of projections and automatic stabilizers (unemployment benefits) will kick in automatically trying to save the economy from a free fall. They missed the targets precisely because they were trying to hit them. 

Spain has to go back to peseta and target full employment not budget numbers.

Thu, 09/27/2012 - 16:23 | 2836635 Thisson
Thisson's picture

They need to default on their debt and balance their budget.  Then they have to become internationally competitive by reforming work rules and reducing taxes.  I won't hold my breath.

Thu, 09/27/2012 - 16:37 | 2836687 giovanni_f
giovanni_f's picture

What about this recipe for curing the western world: 1. Declare all public dept void. 2. Break up large banks, jail executives, lawyers, rating agency clerks (all of them), dissolve GS, JBM, DB, UBS. 3. Ensure basic banking functions are in place for commercial and private transactions. 4. Severly regulate investment banking.

No need to break up the Euro. Nobody would ask to break up the US$ just because North Dakota is doing fine while Illinois is broke.

Thu, 09/27/2012 - 16:52 | 2836738 OhMy
OhMy's picture

No need to default or declare debt void. If u r on your won currency you can have any debt you want, as US, UK and Japan show - "borrowing" costs are controlled by the CB itself. Public deficit = private sector surplus, to the penny, so they have to INCREASE deficits to increase the private sector saving, but to do that they need their own currency. Because then you don't really borrow - you issue money and then allow the public to earn interest, by issuing bonds, but nobody forces you do even do that.

Fri, 09/28/2012 - 06:55 | 2837970 matrix2012
matrix2012's picture

@ giovanni_f... any leader who dares to take up the challenges that far will be Kennedized immediately... annihilated

 

i like these lines of Vlad, so i quote again them here :)

"You also have to account for the fact that the wizards who put together the "imaginary construct" at Jekyll Island would rather bring the temple down on their heads (and yours) rather than give up the POWER that has been unknowingly loaned to them by people who have bought into the dollar myth.  Money is merely a means to power, and they will destroy it and you rather than give up a wit of power. ...They want to shoot anyone who threatens the rules or the construct between the eyes."

it seems they will only go into ruins along with the collapse of the current imperium (or even the entire world)... UNLESS the carrier victim --which is hosting the parasites-- regains its soberness and retakes the control again, but  it seems to be nearly impossible.

 

    “The Nomadic Parasites will shift out of London and into Manhattan. And this will be presented under a camouflage of national slogans. It will be represented as an American victory. It will not be an American victory.

    Until you know who has lent what to whom, you know nothing whatever of politics, you know nothing whatever of history, you know nothing of international wrangles.” — Ezra Pound (1885–1972)

 

 

Thu, 09/27/2012 - 15:40 | 2836483 RiskAverseAlertBlog
RiskAverseAlertBlog's picture

I guarantee you who will suffer the most if the EMU collapses will be London and New York. There should be no doubt about this. The euro was their Ponzi scheme to begin with.

Thu, 09/27/2012 - 15:57 | 2836566 lakecity55
lakecity55's picture

Negatory, amigo. It will be taxpayers.

We're All Spaniards Now!

Thu, 09/27/2012 - 15:51 | 2836536 shovelhead
shovelhead's picture

Shame on the Nor-euros...

To renege on a suicide pact is in poor taste and shows a distinct lack of character.

Thu, 09/27/2012 - 16:25 | 2836628 steve from virginia
steve from virginia's picture

 

 

It is always easy tell who drives a car ... almost can tell what kind of car they drive. Because they never discuss/maneuver around the 800lb gorilla in all the rooms: energy waste, non-remunerable industries, militarism, peak oil or finance/capital flows in ways that put responsibility on the auto manufacturers, energy extractors and their (foolish) customers.

 

AE-P probably drives a Mini (Peugeot). That way he can feel 'progressive' and 'sporty' in a middle-aged sort of way.

 

Tyler Durden drives a gigantic 2012 Ford F-350 Super-duty pickup truck with a diesel 400hp Powerstroke V8, 9x20" rims and four-wheel drive so he can channel the inner Terminator-era Schwarzenegger (garbage truck driver). "Ahl bi beck ..."

 

Meanwhile, it is 'Gold Standard' and 'Money Printing' when the real problem is non-remunerative automobile-centric resource waste. Hello! Capital is resources. When you've burned up yr resources you have squat. If you have resources ... businessmen with nice suits and ties tell you to squander them as fast as possible! This is why the UK has no more North Sea crude! (Why they don't have gold in the Bank of England vaults, either). Buffett has all of Tyler Durden's money, ditto w/ Ambrose Evans-Pritchard. Buffett borrowed it all from credit markets and TD and AEP signed onto the note.

 

Peak Oil Denial: Ambrose blows smoke: there is nothing that the euro-bosses can do that will save business as usual in the EU. If he knows it, he dares not admit it!

 

"The ECB’s uber-loose money (to help Germany when it was in slump) led to negative real interest rates for Spain – minus 2pc for years – that fueled a massive credit boom. Policy was far too lax for a fast-growing Tiger economy."

 

Tiger consumer of automobiles, freeways, American style 'suburb' developments spread like a skin disease across the length and breadth of Spain, Portugal, Ireland, France, Italy, Greece ... Problems? Of course, these things do not pay for themselves by way of their use! Instead, they must be subsidized with more and more debt, tens of trillions worth.

 

The autos and the military toys, the big governments, finance and insurance sectors, the concrete uglybuildings, the reactors ... all these and more are simply consumption baubles, utterly worthless. Look ye European fools upon these works and despair: these same malignant excrescences are everywhere ... across every single country on Planet Earth ... across Asia, into Japan and China ... to the United States itself! These things rob the food from your mouths, from those of your children and your parents, they leave madness and tyranny in their wake.

 

Peak Oil Denial:

 

Indeed, ours is an energy crisis, the FINAL energy crisis ... it has been brewing since 1998 when petroleum cost US$11 per barrel ... cost matters, it is the only thing that does. You have been bankrupted by your automobiles ... now it is too late, there is no way out.

Thu, 09/27/2012 - 16:55 | 2836746 Jim in MN
Jim in MN's picture

8*)

 

"You're not the car you drive."

 

--Tyler Durden

Thu, 09/27/2012 - 16:22 | 2836634 1000924014093
1000924014093's picture

AE-P rocks like Slayer.

That is all.

Thu, 09/27/2012 - 16:24 | 2836639 giovanni_f
giovanni_f's picture

It never ceases to amaze me watch assholes like Ambrose Evans-Pritchard bashing the continent. As is the case with ex-trader and city-of-london lobbyist Nigel Farage the task is to to distract from the dreadful situation in the UK and the fact that appart from its bloated military apparatus the only sector left to this completely deindustrialized island-of-the-apes is the banking "industry". 

Thu, 09/27/2012 - 16:32 | 2836674 KnowIDontKnow
KnowIDontKnow's picture

AEP's beat is the ex-UK, so of course he is not writing about the UK's problems.  That is not his job.

Thu, 09/27/2012 - 16:38 | 2836698 giovanni_f
giovanni_f's picture

Sounds about logical to me...

Fri, 09/28/2012 - 01:52 | 2837773 Non Passaran
Non Passaran's picture

They need proper banking industry as they still have a currency of their own.
Unlike some others...

Thu, 09/27/2012 - 16:28 | 2836646 Crtrvlt
Crtrvlt's picture

.

Thu, 09/27/2012 - 19:22 | 2837088 ciao
ciao's picture

It was lubed by dollar liquidity, US rating agencies, and Stiglitz rhetoric that says that treasuries will always be cheap despite and in spite of fiscal ill discipline.  Big spending government came first in the EU and the private bubble came in behind it off both German savings and carry fed balance sheets.   All roads lead to Rome - The US Fed.

Thu, 09/27/2012 - 21:14 | 2837329 zippy_uk
zippy_uk's picture

Tyler - this is no longer interesting. What will be interesting will be who, what, how, why and when the new, post collapse economic history gets written. When it goes down people will be asking questions and demanding answers.

If your name is Barroso or Junker or Van Rompoy, Dragi or Monti, what's your explanation ?

"what did you do in the war daddy?" , "whose side were you on?", " Did YOU kill anyone - did you like it?"

Most of all "What was it all for?"

THE AGE OF REAlL POLITICS IS BACK and looks UGLY.

Thu, 09/27/2012 - 23:54 | 2837630 Sandmann
Sandmann's picture

Be better if Chinese bought up all the property funded by Spanish banks so at least some physical collateral for bad debts was put to use.

Fri, 09/28/2012 - 07:38 | 2837803 matrix2012
matrix2012's picture

in another news, The Daily Bell just runs this analysis....

 

Spain Falls to Pieces, as Predicted (9/27/2012)

Be Very Careful, Beloved Spain ... Two weeks ago I was interviewed by the Catalan newspaper El Punt Avui. I said it would be unthinkable for the Spanish state to stop Catalan secession by military force. Such action would violate EU Treaties and lead to Spain's suspension from the European Union. You do not do such things in the early 21st Century. "No pots ser membre de la UE si utilitzes la força" was the headline. I may have underestimated the vigour of the Spanish officer corps. First we have the robust comments of Colonel Francisco Alaman comparing the crisis to 1936 and vowing to crush Catalan nationalists, described as "vultures". "Independence for Catalonia? Over my dead body. Spain is not Yugoslavia or Belgium. Even if the lion is sleeping, don't provoke the lion, because he will show the ferocity proven over centuries," he said. – UK Telegraph

Dominant Social Theme: The riots have begun again. What a surprise.

. . .

We've argued that secular governments were being undermined in the Middle East in order to create a religious monolith in that region that would provoke at least a cold war between Christianity and Islam.

In Europe, austerity is being relentlessly pressed to provoke similar social tension. The idea is to create enough social and military chaos to create yet more pressure for globalist solutions. World government is always the shadowy goal, it seems.

The antidote to all this is what we call the Internet Reformation – the dawning enlightenment pro-offered by a technology not yet controlled by those who own the mainstream media.

The elites are pursuing directed history in the full gaze of electronic monitoring by thousands of engaged bloggers and "citizen journalists." This is a unique moment in history, not seen since the Gutenberg Press.

Conclusion: It is knowledge of one's manipulation that may yet prove a profound element in the struggle between the elites and everyone else. Certainly it will prove a defining contest in the 21st century.

= END =

 

btw, here is an interesting quote from The Daily Bell: Who's Ambrose Evans-Pritchard?

(note: the amplification by bolding & italicizing is mine)

 

Ambrose Evans-Pritchard

Who is he: Ambrose Evans-Pritchard is the international business editor of the Daily Telegraph and a mainstream writer who is most apt to probe the scandals of the Anglo-American power elite. Evans-Pritchard is a principled opponent of the EU's constitution and monetary union, and served as the Telegraph's Europe correspondent in Brussels until 2004.

As the Telegraph's Washington bureau chief in the 1990s, Evans-Pritchard was a fairly high-profile opponent of the Clinton administration and wrote a number of stories about the 1993 death of Vincent Foster and the 1995 Oklahoma City bombing. In these stories Evans-Pritchard cast doubt on the official explanation.

Evans-Pritchard wrote a book about the Clinton administration entitled, The Secret Life of Bill Clinton: The Unreported Stories (1997) published by conservative publishing firm Regnery Publishing. The book elaborates on his perceptions that the Oklahoma City bombing was an FBI sting operation that soured and that further anomalies that have emerged are part of a Justice Department cover-up.

Evans-Pritchard's articles made him a target of Clinton administration wrath. In 1997, when he finally left to return to Britain, a White House aide reportedly said, "That's another British invasion we're glad is over. The guy was nothing but a pain in the ass."

Background: Ambrose Evans-Pritchard is the son of E. E. Evans-Pritchard, who was a pillar of the establishment and a Professor of Social Anthropology at Oxford University from 1946 to 1970.

Evans-Pritchard himself attended Trinity College, Cambridge University, and La Sorbonne. He worked for The Economist magazine before the Daily Telegraph, which he joined in 1991. Evans-Pritchard was reportedly the Washington correspondent for London's Spectator in the 1980s.

More recently, with the Telegraph, Evans-Pritchard has focused almost exlusively on global finance with a particular emphasis on the unraveling European Union. Many of Evans-Pritchard's articles have been prescient and reveal a courageous pen and an incisive mind.

Ambrose Evans-Pritchard's solutions, featuring appropriate central banking responses, are not so innovative or honest as his trenchent criticism. But it is safe to say that if Evans-Pritchard honed in on the excesses and irrationality of central banking, he would not long hold his mainstream post. Evans-Pritchard does the best he can do.

Fri, 09/28/2012 - 07:10 | 2838006 Grand Supercycle
Grand Supercycle's picture

IMPENDING SELL OFF.
Longs please be careful.

Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:

SPX, DOW, NASDAQ, NZDUSD, GBPUSD, AUDUSD, COPPER, CRUDE, GOLD, SILVER. [USD strength will return]

http://www.zerohedge.com/news/2012-12-24/market-analysis

http://trader618.com

Fri, 09/28/2012 - 07:25 | 2838025 slackrabbit
slackrabbit's picture

 

My favourite line 'I know is seems like you are in charge, but it only SEEMS that way'.

This EU situation sums in up.

The rich countries can easily leave the EU...I say easily because they know they can't sell anymore TVs or Cars to the south. That market is now dead. As such, they can leave because they are NOT going to lose any exports from an already dead export market.

What is does mean, is that although you will be in a tough situation, at least you won't have to keep being bleed monthly to bailout the reckless and feckless south. It may also mean however, that a few banks of your own may have to be restructured and a few political friends i.e. bankers put in prison.....C'est la vie.

 

 

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