European Bank CEO Admits: "The Whole Thing Is Doomed"

Tyler Durden's picture

As the European parliament attempts to create a budget and Draghi repeats how the temporary lull in European growth is merely a prelude to a growth renaissance in the second half of the year (not to be confused with the verbatim lie rehashed by European dignitaries in 2012, 2011, 2010 and 2009), it appears a few leaks of truthiness are seeing daylight in the disunion. In a shockingly frank interview, the CEO of Saxo Bank describes the Euro's recent rally as illusory and that "the whole thing is doomed," as the continent is not supported by a fiscal union. As Bloomberg reports, Lars Seier Christensen says he would be a "seller of the EUR at anything near 1.40," noting that "right now we’re in one of those fake solutions where people think that the problem is contained or being addressed, which it isn’t at all." Confirming that the only thing holding the farce together is political not economic efforts, he sums the situation up perfectly: "people have been dramatically underestimating the problems."

 

Via Bloomberg,

Lars Seier Christensen, co-chief executive officer of Danish bank Saxo Bank A/S, said the euro’s recent rally is illusory and the shared currency is set to fail because the continent hasn’t supported it with a fiscal union.

 

“The whole thing is doomed,” Christensen said yesterday in an interview at the bank’s Dubai office. “Right now we’re in one of those fake solutions where people think that the problem is contained or being addressed, which it isn’t at all.”

 

...

 

I’d be a bigger seller of the euro at anything near 1.4,” according to Christensen, who said he isn’t making any speculative bets against the currency.

 

...

 

“Another possible fallout is getting rid of some of the countries that are being ruined by being in the euro, notably the southern European economies,” Christensen said. “People have been dramatically underestimating the problems the French are going to get from this. Once the French get into a full- scale crisis, it’s over. Even the Germans cannot pay for that one and probably will not.”

 

...

 

Record Debt

 

Public-sector debt is at record levels, having more than doubled from 40 percent of gross domestic product in 2008. The European Commission, which is due to update its forecasts this week, sees it rising to 97.1 percent of GDP next year.

 

“It’s the political world that has been extremely supportive of the euro, not for economic reasons but for political reasons,” said Christensen, a long-time critic of the single currency who now lives in Switzerland.

 

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Irelevant's picture

Hello herr bank CEO. This is Angela Merkel! Zee damn euro iz very expensive, americans are not buying our mercedes, we need to devalue... say the following!

Buckaroo Banzai's picture

Well, considering the Danes don't use the Euro, he's not exactly talking against his book here.

Irelevant's picture

The Danes are part of the EU. Its irrelevant what currency they use, Germany is their biggest trading partner. This couldn't had come from the mouth of DBs CEO. So the Danes will do. VW and Mercedes are raming a pole up Merkels ass, and so are the unions, this is an election year in Germany. 15% devaluation in the yen makes that toyota MUCH cheaper than that VW. So zee germans are fucked, unions are angry. Not good for an election year. So get to work herr Monti, fuck this euro down to 1.10 to the US$!

This would also go with the smackdown in the metals, the dollar should spike.

In 6 months you will see Mr. Bernanke telling us that the dollar is to strong, so American exports are stalling, a new program for revitalizing Americas exports will be launched iQe, now with 16 gigs of ram, and a larger SSD for al those 00000000000.

This is geting old and boring!!!

Meanwhile if you want to buy a sausage in Germany on the autobahn, as I did recently, you will pay 6 euros. Even the damn toilet acces prices in Austria are up, 0.70 eurocents/piss. Used to be 0.50 and you got the 0.50 discount coupon. You still get the coupon, its still 0.50, you pay 0.70.

A fucking orange juice (fresh pressed) was 6 euros in the gas station.

But deflation is a big threat! It will continue to be so until the masses riot.

azzhatter's picture

If you get around here, you can piss in my toilet for free. I have a picture of Bernanke in my toilet and I piss on him daily. If you visit, we can install a picture of Von Rumpboy and Barroso

NotApplicable's picture

This thing reads like a setup for the inevitability of the IMF having to save the day.

TINA told me so.

Irelevant's picture

I think the gold request on behalf of BuBa might be a election stunt. I dont have a clue, they could have done it in secret, yet they chose to make it public. If you remember, in 2010 there was a story on ABC if Im correct, one day with president Obama, and you get Obama telling them to cut film when he is informed that the Germans are calling about the gold. So talk about this is older, I have no idea why they went public.

Anyway, as Japan is permitted to trash the yen, while accepting to buy 500$ bln. in USTs and bills every year, the US is monetizing the deficit by proxy and fucking up the German exporters in the process, while having Bernanke not printing any actual dollars. This is a interesting strategy, as it also fucks up the Chinese, making the Japanese exports very cheap.

So we are still in the trade war.

I guess soon it should become interesting, how are those APPL shares fairing for the Bank of Israel? 

Lore's picture

I heard that the Tungsten Prank was the last straw for certain Buba execs. Relations between the US and Germany are a-changing.

UnpatrioticHoarder's picture

Saxo Bank is jawboning the Euro lower to keep its borrowers solvent.

ebworthen's picture

"Gold backed Deutschmarks."

Another interesting tidbit in that video, Ron Paul asking a FED official if they have participated in any Gold swaps, and the FED official saying "The Federal Reserve does not own any Gold at all, we have not owned Gold since 1934."

CPL's picture

He certainly doesn't let anyone forget about him. 

He's the facebook equivalent of the friend that announces he's taken a dump, photographs it and puts it up on his front page.  Him and Mario.  Those guys need to find a hobby.

Stock Tips Investment's picture

The whole of Europe is in the midst of a major economic problem. They still have some economic policy tools they can use. However, the remedy would be a drastic reduction in their quality of life. If they refuse to take the medicine, they will suffer even more serious consequences.

americanspirit's picture

Great business concept - wateproof urinal decals. Packaged with pair of rubber installation gloves.

Irelevant's picture

This freak show will end the day when Bernanke announces he is now printing barrels of oil with an ERoEI of 100 to 1.

At this point in our history paper currency, as we being a dumbed down brainwashed population as to understand what is money aka store of wealth, represents the exchange for energy stored in oil, in food, its all about energy and the freedom to move.

I am amazed at what lengths people will go in order to be able to use the car and buy fuel.

This is will become very interesting, remember those folks, in the wake of Sandy, that were fighting over gas, really interesting, they were not fighting for food.

 

 

 

FEDbuster's picture

They will not fight for food, until it is in short supply and they run out at the house.  Right now all you will continue to see is slowly rising prices, kind of a slow squeeze.  Supply chain disruptions would create the "fights" you saw a the gas stations for the same reasons.  Drought and higher input costs will continue to push prices higher for food.  Now is a good time to be stocking up.

FEDbuster's picture

If they try to jump out of the pan, we have 1.4 billion hollow points and a fleet of drones to take care of the ones who go rogue.

CPL's picture

That's because energy is the only currency worth anything next to food.  It's just so damn useful.

 

Right now it's people quibbling about bits of worthless paper and their appearent value.

blindfaith's picture

 

 

"But deflation is a big threat! "  Would someone give me a damn example of deflation, because all I see is inflation everywhere.  A collapse in prices because the bubble pops is NOT deflation, it IS reality setting in.

Irelevant's picture

I think you will have deflation in APPL stock and paper gold. In my view paper gold is way overvalued, like all paper assets. So there is a real threat of deflation, this is why the CBs are printing.

But, there is collateral damage, the prices go up in the things you cannot print, like food or gas.

All this printing implies we are having a free lunch and while at it the restaurant is doing great business as it has more clients (economy is booming).

Its powerful stupid, but the masses are happy with it as they only see the lunch part.

Paper assets imply trust, so, to some degree, it all relates to trust and belief. Like with religion. Bernanke is kinda like the pope. The people on the TV say he is very smart so the masses believe it. Same can be said for many trough history. It does not mean they are right. Something will give at some point and the masses will have the „wait a minute” moment aka SHTF. 

Paper promises, like promises, do not work very well in real life. If you go to a hot chick in a bar, take a pice of paper and write I GUARANTY I HAVE A HUGE DICK, and sign it afterwards, it most likely will not get you laid as the hot girl does not know you or trust you.

If however, someone on CNN tells the masses you have a huge dick, many will believe it.

Bernanke is claiming he has a huge dick, masses believe him because so sez the tevo, the chinese because so sez the US army.

secret_sam's picture

According to the Austrian definition, if the total global aggregate debt is contracting, we're in deflation.

That has nothing to do with falling PRICES, though, which is what defines "classical" deflation.

All Risk No Reward's picture

As I understand it, classical deflation is a reduction in the money supply, which equals money+credit since credit spends like money.

A new definition of deflation (and inflation) was centered around price inflation, which can occur for a number of reasons related to supply and demand - not just the money supply.

The reason you haven't seen deflation is because the banks are allowed to lie about their asset values, the private Fed is temporarily funneling trillions to its controllers corporate banking front and the government is issuing debt to the tune of about $1.5 trillion on the books and a much higher number represents reality - may approaching $2 trillion a year (Fannie, Freddie, black box accounting, etc...)

http://market-ticker.org/akcs-www?singlepost=2958798

The money supply (money+credit) is flat lining with about $2.5 trillion being injected primarily into the TBTF&Jail international banking cartel corporate fronts.  They then use that free money to gamble on food stuffs and commodities.  That works so long as the $2.5 trillion keeps flowing there way.

Perhaps the best part is that all that cash, or at least the vast majority of it, has debt that is being offloaded onto the public - at compounding interest.  Much of it paid right back to the banks being bailed.

We are being punked.  Unfortunately, the average person can't mentally grasp the circumstance and the logical outcome here.

I don't know when this gets nasty for the white collar narcissist class, but I have a feeling that BanksterCare cutting hours down to 28/week, DHS buying 2 billion rounds of ammo and the completely criminal act of trying to disarm their future victim class is a strong indication the time is getting close.

Edward Fiatski's picture

Bingo.

Ring-a-ding-ding, baby. MERCEDES, bitchez.

Joe A's picture

Don't take that 0.50 coupon! It was meant for you to buy more coffee so you'd piss more!

fomcy's picture

And why exactly GOLD so bearish? I don't get it.

Barely holding, even without US manipulators, which will run

it down Hard in 8:30AM tomorrow, as usual. Like Bernank will say "stop QE"?

They print until 6.5% Unemployment, which might mean forever, actually.

Irelevant's picture

6.5 unemployement? Is this a joke? The BLS can come out tomorrow and say unemployment is 6.5%, all rejoice, the great leader has saved america, we will no longer print. And the masses will not care. 6.5% is a motive, its a marketing tool, in order to sell money printing as a good thing. Its for jobs, soon it will be for the children. Government statistics are useless!

Bearish on gold? Paper gold will go to 0, so, at some point, that might be the price presented by the MSM. Gold goes to 0. Buy today! Of course you will not find any phiz. But the price will be 0, for paper gold.

Its all smoke and fucking mirrors, those numbers you see on the screen, the indices, the markets. We no longer have a free market.

Also, take note that the Japenesse anounced they planned to increase holdings of USTs and bills by 400-500$ bln./year. So Bernanke is monetizing the deficit by proxy, while allowing the Japanese to depreciate the yen, he is covering the issuance of USTs and fucking up zee Germans for requesting the gold, be it even in 7 years. These little fuckers are not stupid as you might believe.

 

Manthong's picture

“And why exactly GOLD so bearish?”

Because the “bearish” component is PAPER that is way over-fractionalized and is PURPOSEFULLY UNDERESTIMATED and manipulated to suit the agendas of the reckless, profligate and bankrupt governments by the criminal big banking and financial syndicate that supports them.

Al Huxley's picture

+1.  Your posts on this thread are saving me a lot of typing.

NotApplicable's picture

More like why is paper gold so skittish.

What more could you expect from a speculative class that can only try and front run JPM/GS and their periodic walls of paper? The more of a "no-brainer" the speculation gets, the more likely it will be turned into a trap.

Mongo's picture

The danish krona is pegged against the Euro. This is a "pre-euro" state of their currency... or soon to be "post-pre-euro"....

Silver Bug's picture

The writing has been on the wall for quite some time. The financial system is beyond insolvent.

 

http://jimrickards.blogspot.ca/

Hobbleknee's picture

Danes don't use the Euro, but the Danish kronor is pegged to the Euro.

Salah's picture

These dreamy idealists deliberately put together something ill-designed for a long-term duration.  There are astrological fingerprints all over their Treaty of Rome signing (3/25/57, 6:30 pm) and then again, when it kicked in (1/1/58, 12:01am).

They built a fancy, high-performance sport-car, not a robust mountain bike or ATV.  In both cases above they cannot take the outer-planet transits that are now occurring some 55+ years later.  Dumb shits.

 

blindfaith's picture

 

 

Don't forget the Dinosaurs took a long damn time to finally die.  We all think, poof...it will end just like that.  Well, thinks can go on and on for a very long time.  So long, in fact, that people no longer take it seriously.

hampsterwheel's picture

It's hotel california, you may check out but you'll never be allowed to leave....

There is no way - Zero way - none - niente that TPTB will allow any nation to leave the EU - nor will States allowed to leave the Union - nor any banks allowed to default -  nor any Bond funds allowed to collapse - nor any States allowed to default - if anyone tries to leave, there will be no mercy and blood will spill -

The goal is collectivism on a world wide stage - a single government running everything and controlling everyone - they have come to far now to admit defeat - if defeat thrusts itself upon them then they will act like a cornerd cat - they will strike out in violence and there will be war -

Abandon all hope ye that enter here.... Dante

F##k Hope - G. Carlin

 

H E D G E H O G's picture

this is PRECISELY why i own guns, gold, silver, and land.

tugtrash's picture

Well actually you may own your guns, gold and silver. But, try not paying you rent (property taxes) and you may find yourself evicted.

Reptil's picture

and that is why I'm moving to a tiny unnamed island this year (if all goes well). something so small it doesn't show up on any geopolitical map. if there's ANY chance of making it through, I figured that's it.

there's a shift in consciousness happening in europe though. unseen, beneath the surface, people are bubbling with anger. privatisation of our drinking water by some french corporation was the last drop.

Van Rompuy is even coming over for some talkshow next sunday. I don't expect any real questions, but the fact that he's forced to talk to ordinairy human beings, says enough.

visible cracks are forming.

Joe A's picture

People who think that clean drinking water is not a basic human right but a commodity should be denied access to it for a few days and be asked then what they think about it.

Totentänzerlied's picture

Physics and economics don't care what you or anyone else thinks is or is not a right.

TrumpXVI's picture

Classic, diagnostic characteristic of any dysfunctional relationship; one is not allowed to leave it.

Panafrican Funktron Robot's picture

Yeah, the thing about default, is that pretty much anything that starts the derivative chain blows up absolutely fucking everything.  So, in addition to what you were saying, it's also simply a system survival thing at this point.   

jerry_theking_lawler's picture

 "people have been dramatically underestimating the problems."

-nope, the people have been skirting the problem....since the problem is SOCIALISM.

vmromk's picture

The Bernank is not down with that.

GetZeeGold's picture

 

 

A really good press conference from Ben Shalom could fix it. We'll get Ron Paul to shine his magic silver coin at him.

francis_sawyer's picture

15 minutes is all it takes... [I have it from a reliable source]...

DaveyJones's picture

after five minutes in the backroom, CEO reemerges to announce that he was only reenacting a cut scene from a rare Orson Welles film