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This Is How A Country Ends: Not With A Bang, But A Bailout
Curious how in the New Normal a nation is brought to its untimely end without a single shot being fired? Dimos Dimosthenous, who has worked at the Bank of Cyprus for over 30 years, explains:
"That will be the end. Our jobs, our rights, our welfare funds will be lost and Cyprus will be destroyed."
In short: not with a bang, but a bailout.
... But at least it still has the symbol for all that is wrong with the broke(n) status quo: the €
First, however, much more pain, because as Cyprus' FinMin Sarris said a short while ago, uninsured depositors in the second largest bank Laiki which is now pending lqiuidation, may lose 80% (read 100%... or more), and wait up to seven years for a payout. Of course, with the majority of the "evil, tax-evading Russians" long gone having used the chaos and assorted loopholes in the past week to get out of Dodge, the only people punished are assorted local hard workers, and domestic businesses, now set to liquidate as soon as they can afford the bankruptcy filing fee.
Finally, speaking of getting out of Dodge, it is surprising that while professing its love for all man-made bubbles and going all in stocks no matter the fundemantls, the firm that is the shadow overlord of Wall Street, BlackRock, is doing just that. From the WSJ:
BlackRock Inc. the world's largest money manager, has cut holdings of Italy and Spain government bonds over the past three months. The firm may shed more if the euro-zone's growth outlook deteriorates.
"We have been less enthusiastic about euro-zone sovereign debt compared to three to six months ago," said Rick Rieder, chief investment officer of fundamental fixed income and co-head of Americas fixed income at BlackRock. "If growth continues to deteriorate in the euro zone, due in large measure to weak private-sector lending from a deleveraging banking sector, we would further reduce our positions in the euro zone, such as in Italy and Spain."
Speaking in a phone interview with The Wall Street Journal on Tuesday, Mr. Rieder said for the moment, BlackRock still holds an overweight position on Italy and Spain, though the position is now more moderate after the recent reduction in the Spanish and Italian holdings.
The company, with more than $3.7 trillion in assets under management, was among global investors scooping up sovereign bonds, especially in Italy, after European Central Bank President Mario Draghi last summer pledged to do "whatever it takes" to preserve the euro.
Wait... did Blackrock just comprehend that contrary to prior lies bank creditors, all bank creditors and not just depositors, are suddenly expendable?
Funny how one's "investment risk tolerance" changes when the local money printer's promises that nobody will ever suffer losses are openly refuted when reality intrudes.
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who did blackrock sell to?
who bought that shit?
I guess if you have an account with them and they call offering to make you rich with Euro soverign bonds you are screwed.
"You're an errand boy, sent by grocery clerks."
...."to collect a bill"
Finally, Colonel Kurtz on Zerohedge! And I´m drunk enough to really enjoy this. Turned out a great day!
Ausgezeichnet!
The wealthy get bailed out, the welfare-class gets their gov't benefits and the middle pays for it.
“wait up to seven years for a payout”
Hmm.. that makes sense.. it’s about as long as the Fed may or may not take to steal enough gold to replace the German gold it had for safekeeping but sold and only has a paper claim for right now..
Those miners are looking at some good job security right about now.
It's nothing more than asset-stripping, where entire nations of people are the assets.
The ECB is the buyer. I do find it hard to see where the general population doesn't take the loss.
This shit HAS GOT TO END!
Cyprus has been an international plaything for millenia... some more recent history:
One of the articles in the constitution was the creation of separate local municipalities so that Greek and Turkish Cypriots could manage their own municipalities in the big towns.
Internal conflicts turned into full-fledged armed fighting between the two communities on the island which prompted the United Nations to send peacekeeping forces in 1964; these forces are still in place today. In 1974 Greek Cypriots performed a military coup with the support of military junta in Greece. Turkey used the coup as a pretext to invade the northern portion of the island. Turkish forces remained after a cease-fire, resulting in the partition of the island; an objective of Turkey since 1955.[8] The intercommunal violence and subsequent Turkish invasion led to the displacement of hundreds of thousands of Cypriots.[9][10]
The de facto state of Northern Cyprus was proclaimed in 1975 under the name "Turkish Federated State of Northern Cyprus". The name was changed to its present form on 15 November 1983. The only country to formally recognise The "Turkish Republic of Northern Cyprus" is Turkey. Hundreds of thousands of Turkish settlers have been granted right to illegally reside in the 'TRNC' and allowed to reside on Greek Cypriot land and property in order to change the island's demographic in favour of the Turkish Cypriots. The international community considers the North as occupied territory of the Republic of Cyprus and Turkey has repeatedly violated numerous UN Resolutions calling on it to withdraw its occupation.[11]
In 2002 UN Secretary General Kofi Annan started a new round of negotiations for the unification of the island. In 2004 after long negotiations between both sides a plan for unification of the island emerged. The resulting plan was supported by UN, EU and the US. The nationalists in both sides campaigned for the rejection of the plan but Turkish side accepted the plan while Greek side rejected it.
After Cyprus became a member of the European Union in 2004, it adopted the Euro as its currency on January 1, 2008, replacing the previously used Cypriot Pound; whilst the illegally occupied areas continued to use the Turkish Lira and on January 1, 2008 the New Turkish Lira.
I downed you for not including footnotes. Plagiarism bitchez!
I watched a snail crawl along the edge of a straight razor. That's my dream; that's my nightmare. Crawling, slithering, along the edge of a straight razor... and surviving.
still woulda been a better movie if he'd bothered to read the book....
zee jews have a new place for settlements now, and impoverished servants. nicely played
sorry Sherlock
i thought it was an obvious wiki cut and paste
did the 'real' paul krugman just come in here and call me a "tax base" ?
but a lesson is learned sezz the new normal in Europe.
lesson? your deposits are now an asset destined to
support the systemically essential and virtual balance,
of committee determined relevance and temporally fluctuating
concerns, and therefore, we are forced into the unenviable
position of having to make up precedent, standards, rules,
laws ..etc .., in a moments notice(delays to be expected due
to unforeseen conditions*, conditions being ..
*
1.) weather
2.) default on security
3.) general default
4.) insufficient ....( including all a-y described in doc. fjg7661 )
5.) instability in ..( ..ofb65%%$ ..)
6.) see you tube link "you get nothing"
.
nite nite
.
inflation? that other ongoing problem .....
So a Russian whos money is in Cyprus goes to his bank branch in Britian to avoid a Brazilan (wax)?
You rang?
Walter E Kurtz...reads it like it is. A lovely entry, Tyler, on the too long timeline. Here in the great fading of Democracy, and for the whims of ruthless and despotic bankers, making it up day by day, of course owing to their divine vision of the world, and without the consent of the world. How utterly appropriate.
Between the desire
And the spasm
Between the potency
And the existence
Between the essence
And the descent
Falls the Shadow
For Thine is the Kingdom
The avalanche has already started. It is too late for the pebbles to vote.
Cyprus must leave the Euro.
Now.
They have two economies: banking and tourism - these are now defunct. In order to get them back they must increase their exports by decreasing the value of their currency.
They must abandon the Euro, or else they face a long and stark depression.
Gee this is opposite day or what... Krugman making sense...
This blog - in general terms - and I agree on most issues. Thus why I read it; yet you people don't read my blog and assume you disagree with me because I am a well known figure and you all are anti-establishment doomers.
If you really are the real Dr. Paul Krugman, I want to take this opportunity to call you a fucking idiot and scumbag. Go fuck yourself, you useless cunt, and I wish you many aneurysms and a slow painful death akin to Ariel Sharon.
But, sadly I doubt you're the real Dr. Paul Krugman...
Think what you want.
- Bruce Krasting
From a contributor, no less. So who should we believe? You? Or someone who writes for this blog?
http://www.zerohedge.com/contributed/2013-03-25/krugmans-smoot-hawley-mo...
I think I'll stick with believing in God and go from there.
you are going to be disappointed!
Your jewish God will fail you.
"Paul Krugman reads ZH "
Well, sure, even he isn't stupid enough to completely ignore the obvious intelligence here.
Doesn't mean he comments here.
Doesn't mean you are he, or he are you...
I am the egg man. Bitchez
Ku ku kachu....
I think that is actually Gu Gu Ga Joob
He's not.
Dear Dr., I'm interested in borrowing money to help stimulate the economy. May I please borrow some money from you? I'm good for it.
Hi Paul,
You might have missed this question the last 4 times I asked it, so here we go for try number 5 (and yes, I will continue to increment the numbers until you answer the question):
If growth is defined in monetary terms and money is debt (interest bearing), please explain how exponential growth of debt is sustainable into eternity.
If money (debt) exponential growth is not sustainable into eternity, then WHAT HAPPENS WHEN THE EXPONENTIAL MONEY (DEBT) GROWTH FAILS?
TIA...
PS - Whomever this guy is, and it just might be the real thing, he apparently knows enough not to go near this Kryptonite question. If he is the real deal, I expect more ignoring and, if he must respond, some type of logical fallacy... probably ad hominem of some type.
If he was the real deal he would fully understand this..... FV=PV+I...... therefore "I" (interest) needs to be brought into existance(by printing or expanding money). This is where a bailout(loan) @anything less than zero rate harms those who have reached the limits of their ability to pay "I"
and
Exponential growth in a finite and closed system leads to extinction
so in conclusion if that little island has only two industries... and the only way out is to leave the Euro and deflate whatever currency. Please explain what they are going to export?
No dear Dr what is needed is that the banks are to be closed and nationalised, the depositors be made whole, those that gambled with savings and lost be charged prosecuted and jailed, Bond holders(leaches on productivity) and stockholders eat their loss 100%. A gold standard be implemented to prevent printing to pay for largess and easy credit and current Economic system be thrown out along with yourself. "broken windows"..... pleeese. broken model more like it
Debt Money Tyranny needs to be eliminated - that's first and foremost. Nationalized Debt Money Tyranny wouldn't change much at all.
The graphical illustration of the of the Debt Money Art of War can be found here:
Debt Money Tyranny
http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77
His style is consistent with the real Paul Krugman.
He's not stupid, he's evil.
He's a wolf in sheep's clothing - a point man to deceive the professional classes of society. His "Nobel Prize," which doesn't exist, in Economics was given to him simply because it plays into appeal to authority logical fallacy.
The London School of Economics was founded by Fabian Socialists... is that you Paul?
BTW, search Fabian Socialist images and your get a wolf in sheep's cloithing... that's what they chose to represent themselves.
Right Paul?
Who are the contributors? Tyler Durden? A fictional character from a film in which the plot is to destroy the financial system?
I simply don't believe you're Krugman.
Krugman is basically a shill for the people who run this country. He's not so stupid as to believe the propaganda he is paid to produce. He makes money however repeating it, that's where he gets his comissions. His job, is to convince the average ordinary American that everything is OK, and the financial system is stable, and there's no reason to panic. This serves the dual purpose of keeping the system stable for a bit longer and ultimately impoverishing the typical person who pays absolutely no attention to what is going on.
There's only one thing that matters, it's the federal income to federal debt ratio. It sits at about 15% right now, with no possibility of improving with taxes at about 50% for anybody that is professionally employed. This ratio was at 8.86% in 1933 and that was when we were on a gold standard, and also during a time when the federal tax rate was what... 10% maximum? Also the expenditures of the government weren't burderened by any welfare of any sort at all.
The Federal debt has grown exponentially at 9.4% a year since 1971 and will grow at the same rate until the dollar collapses. It will be at 23 trillion by the end of Obama's term, it will be 32 trillion by 2020. It will be 40 trillion before 2025. It doubles about every 8 years, on average. It's done that for 40 years, it's not going to be stopped by any person or any government.
Is Krugman so stupid as to not be aware of this? I suppose it's possible, after all what did the Nobel laureates of LTCM know? Maybe they just knew they were too big to fail and as a result, couldn't fail.
Krugman's job is to prevent a panic, because a panic will sink the ship now. His job is to make certain all the rats can get off the ship first - so why would he bother actually commenting on any financial blog at all, especially this one? Guilt? He has no incentive to do it, and based on the fact that you said nother more than "I'm Krugman" in your post, why should anybody believe you?
Give an analysis. Krugman I expect knows some math, produce some. Say something intelligent. After all it doesn't matter who says it, all it matters is what is said - hence it's always Tyler Durden.
Paul, I do now fully believe it is really you and you've confirmed:
No Stocks
No Gold
So where is the rub or the ace in the hole?
You have already been debunked on the housing bubble.
You either know something we don't or you have complete blind faith in the FED as the solution to the point of being duped yourself.
The alternative is basically this:
http://www.youtube.com/watch?v=__BBylQ6srM
I am not posting that to be derogatory, listen to the words, you have surpassed and become indifferent to the mayhem you have helped cause.
But I think you come here because deep down you still have a soul and even find yourself having doubt as you watch the chaos unfold.
.
It's "whom", not "who", oh Nobel laureate with a look-at-me stamp before his name.
I read your blog on occasion. To summarize for those who have better things to do:
Paul writes a pithy article for the NY Times espousing the glories of a centrally-planned economy, and then he works in some one-liners at the end to cheerlead Democrats and excoriate anyone who disagrees with his conclusions as some kind of inbred mountain person.
Then the horror show begins: a veritable parade of hipster metrosexuals, bitter librarians, and dirty local PBS station hosts line up to praise him like he's baby Jesus farting rainbows.
Be honest, Paul — do you write the blog just so you can have an army of sycophants give you a cyber-suck every day?
+100 for hipster metrosexuals, bitter librarians, and dirty local PBS station hosts line up to praise him like he's baby Jesus farting rainbows. beautiful. I love ZH
I get home, fire up ZH to catch up with the latest and go through the comments... and tada! This thread of pure genius!
So I second your motion Pareto +100 MOAR - I also love ZH!
I find myself smiling to myself, laughing out loud, etc. The only issue I have is I'm in a completley different timezone and I miss out on some of the breaking stories. I find the comment pages just has satisfying has the articles.
My wife thinks I am completely insane :P
I sincerely want to give you kudos for such eloquence accompanied by a wonderful pictorial.
I logged in just to upvote you. Bravo, good sir! Well played indeed...
It's a pain in the __ and I hate logging in. Lurking (or stalking) is more my style. However, I too logged in just to give you kudos.
Sooo, thumbs up and ...kudos. You wordsmithing is quite artistic.
Good for you Kprime. I lurked in the earliy days for some time and now I do not give a F_ck and the CIA/NSA/FBI/DHS axis of bureaucratic evil and go to hell and drone me. They can track everyone anyway so go down with pride if that is what some folks are concerned about.
As they say here "On a long enough timeline the survival rate of everyone drops to zero".
My ten cents worth :/
Your "solution" is for them to leave, devalue and... increase their exports... Of what. What does Cyprus export? You said yourself they have two economies... banking and tourism. They will export those indeed (as you said) and then what? These people are fucked because people like "you" (aka the real PK) called for the infinite bailout system that we have in place today. The moral hazard created by that "economic" decision allowed for banks to take on even more risky "assets" and led us to this place along the path. We stand at the precipice of total economic ruin... on "your" advice. Don't ever think that "you" aren't "on the list".
To suggest that "you" have a solution is ludicrous in the extreme.
Come on, this asshole isn't Krugman.
Do you seriously think that worm would have the temerity to show up here and post anything, requiring him to defend himself? Get real. Krugman has a nice job making up bullshit. He's not going to rock the boat.
Trust me...it's him....I'm 95% on it. Now that his troll cover is blown it's likely not as much fun for him being here, but I have personal knowledge that he has frequented the Hedge for quite some time. Why he decided to start posting as himself is a mystery, but interesting in the extreme.
Does he ever mention ZH on his blog? When he does state there that he posts on ZH, then I'll agree with you.
Sorry LK, I don't trust anyone on the Interwebz. Especially those who claim to be king, even of limericks. I do enjoy your work however.
Have you people ever seen the movie 'Fight Club'? Keep watching it until you figure out who MDB and paul krugman are............
Well all I can say is that I really am francis_sawyer & if any of you homos touch me, I'll kill ya!
"shaddup Francis!"
Lighten up Francis!
Well...I was hoping my kooky looking avatar would temper my user id...but no worries, I'm glad you enjoy my stuff.
unconfirmed eponyminty = anonymity + a twist (a vicious one)
I guess we will never know for sure. However, should he really be the true Paul Krugman then I am willing to give him some credit for being willing to engage in the discussion on this site. However, I cannot forgive him for the consequences of the policies he has consistently supported and promoted with such enthusiasm. The outcome is already death and destruction on a global scale. Add the steady march towards statist tyranny and removal of personal freedoms and I conclude that there can be no forgiveness. A samurai, when faced with this reality, would do the honorable thing and commit seppuku.
Rich:
I would agree with you that the probability of Dr. Paul Krugman actually being Dr. PK is really low... thus the quotations around "you"
Do any of you know how to read?
If they leave the Euro and use a currency that is worth less in relative terms then tourism and banking can come back.
And Europe did not implement any of my suggestions. They implemented austerity.
Austerity, is not an elective. Since when was it decided that it ever was? By your logic, then we should all say, "fuck it....paul says spend more....infinitely more.....I'm in." Does that make any sense..........AT ALL? If this is your grand thesis, then I figure a shit load of people oughta be getting their tuition course money back. Because this isn't even economics were talking about is it. Afterall, its Samuelson (yeah thats right, another Paul) that teaches on the very first day of lecture, and on the very first page of his book, that There is No Free Lunch. What part of that is so hard for you Keynesians to understand?
Your fondness of ad hominem fallacies is very Krugmanesque...
Europe implemented austerity? Really? Which country spends less now than it did in 2009?
*crickets*
Which banks were allowed to fail?
*crickets*
Did the ECB increase its lending rates?
Did the ECB tighten or loosen monetary policy?
Did the ECB tighten or loosen collateral requirements?
Sure, I don't know how to read your pithy one-line "if they'd only do what I said" solutions.
nice
..and great comeback Paul
heh, was thinking the same thing...
At least most of the commentators here know our limitations has human beings. ALL people suffer from cognitive dissonance to some degree. Mr Krugman consider's himself ALWAYS to be correct. He will interpret, filter, argue and, I am quite sure, convince himself, in the end, that he is right. Dispite evidence and facts to the contrary. The classic being we just need a little more stimulus. $7 T later.....a marginal improvement in economic performance if even that can be believed.
Once you accept that you are not immune from the effects of CD you must keep questioning and reassessing your position you can limit the affect. But you cannot eliminate it.
CD is perhaps nothing more than a human defensive mechanism and we ALL have to live with it. Even Mr Krugman.
I am sure CD, himself, would put this across much better than me.
A wiki introduction on this if anyone is unfamilier with the theory.
https://en.wikipedia.org/wiki/Cognitive_dissonance
Rumor "not only do some here know how to read...but they even studied addition and subtraction." as in "that guy's a billionaire so I might be about to do something that isn't in the interest of my people." if you wish to call that "weird" or "outside the mainstream" by all means. Obviously if there are Cypriots here they are very few. But this will be the only media outlet that cares and isn't afraid to say so. I haven't read anything you've written directly (do not subscribe to the New York Times) but if you were offering advice to the Government of Cyprus by all means share. With specificity. Let me be clear: I've been spending my whole on-line life trying to explain to people the perils of exceptionally high interest rates..."and what creates them." have you?
Their problem is the ECB refused to back their banks, as is the role of a CB, and killed them. Every bank in today's banking system is bankrupt. They only live by central banking backstop. The ECB killed Cyprus by not being the lender of last resort. And if you think that is wrong, tell me what would happen to JPM, CITI, and GS if the Fed stopped lending them money on demand? They'd be dead tomorrow morning. No Western bank is solvent without a CB backstop.
The only thing leaving the Euro would do is give them CB that can print money. It has nothing to do with the value of currency. It has to do with bank solvency via CB backing.
how about eastern banks? i mean is there any distinction left? are they not bankrupt, too? the central banks all over the world, west and east, left and right are printing as we speak, right?
Your comment cuts straight through the crap. These are political decisions. All of us, including the banks, are dependent on the money printer. There are no markets. There is no "economy". We have replaced millions of fertile minds with a handful of academics and other courtesans.
"Your". that is Mr Krug's anti-austerity stance will never be taken seriously while he (openly or covertly) supports the "trickle down" effect which is a poorly constructed pretext for pumping money into that huge quadrillion bubble of hollow bets on bets on bets that's called financial system.
A currency, any currency, is just a nominal method of counting for various exchanges of goods and services. Cyprus can continue to use the Euro, but they will have to do a whole lot more to earn one of those. What matter if they earn 10 Euro or 10,000 cyprus bucks that won't buy anything from off the island. All food and fuel will require Euro and a greatly devalued local currency will be worth very little in exchange for Euro. Now, the money printing that could have occured to lead them into gradual low income status is not possible after the game has been blown up. If they started with local currency now it would be no better than a Zim Dollar.
Europe has certainly not implemented austerity. Every social safety net has been expanded with increased government debts. Why write such nonsense?
Just a thought but wouldn't leaving the euro cause a bond collapse which in turn trigger CDOs which then cause even more financial chaos?
Sorry, I'm just a caveman and can't get my head wrapped around all of the interplay...
Let me give you clue. Banking/financial systems depend on trust. When trust is broken the ponzi collapses-forever. Do you think White farmers will eventually return to Rhodesia now that they've devalued their currency a billion fold or so? That failure in trust is a critical point, a Minski moment. And we've just had the moment-actually have been having them since 2008. And oddly enough, so does tourism (i.e. trust that you won't get carjacked, kidnapped etc., that the rule of law applies)
You understand nothing of human psychology or behavioral economics. Most here have a much greater reading and, more importantly understanding, comprehension than you could ever hope to achieve. You're out of your league here, but like most mental midgits, unable to comprehend this truth.
Austerity is just living within your means by the way. Its the only sustainable approach in life.
Tell me please what is so important to you to destroy Euro USA or USE ( Europe) or any country with fiat currency is all same shit.
No one school in a world teaching kids what is money and where is come from ?
Moron, it doesn't matter if they want to leave the Euro or not.
It's not an option.
You think the goons in the EU will allow it?
The US overthrew the Guatamalan democracy with Operation PBSUCCESS in the 1950s for the United Fruit Company. What moron believes for a second that anybody in the EU is going to be allowed to opt out when the stakes are drastically higher? The figureheads that supposedly run these countries don't answer to the people who live in those nations and they know full well that their heads would be on a silver platter if they walked away from these supposed obligations.
If anybody leaves the Euro, it will be the people in charge that leave it, not the people who have been screwed by it. Even a fool ought to realize this by now.
cypress has a chance to find god [honesty /integrity /morals] by leaving the euro and developing a true open to review banking institution starting with protecting privacy of all depositors by not cooperating with any nation in sharing info
I would also go to a paper trail of bookkeeping and staying away form internet transactions once physica currency arrives and finally arming every citizen to protect their sovereighty
Honest people are looking for a place to invest and everyone likes the underdog who is not afraid of the establishemnt
their policy should be based on george kastanz representing the establishment and do everything the opposite of what they would do
We all know you're an imposter. Timmy Tax-free Geithner posing as a NY newspaper reporter. How's your global rubble project going Timmy?
I haven't read your writings, although from reading ZH for years I understand many do not agree with your views. I will give you credit for signing in and stating your argument, knowing you aren't that popular with many readers here, and I do agree with you Cyprus needs to ge out of the Euro now.
Paul (sorry for the familiarity, but we're not terribly formal around here), while there are a lot of doomers on this site, some of us are just mere gloomers...meaning that we're just hoping for a better day, but reallize that we're probably going to have to pass through hell first to get there. We're mostly not so antiestablishment as it might seem, we just hate the torturing and perversion of the establishment.
If you are the real Paul -and I feel quite certain that you are, let me be the first to give you the official welcome -Bitch!
"and you all are anti-establishment doomers."
Um.. I'm good with that.
A moment of clarity Dr K?
It's simple economics, really.
The alternative is crushing austerity policies like which have been used in Greece.
If a house of cards is blown over you blame the wind.
If the sun comes up it's because the rooster crowed.
rooster crowed...Now i know how to call it, thanks.
wind is strong these days...
the sun...what if it goes dark (hey nasa said sun activities abrnomal)?
Well the rooster only crowed because somebody broke the old rooster & we decided to spend a quadrillion dollars on a DEATH STAR to incubate a whole new colony of roosters, which we transported back down to earth by way of many spaceships, many of which crashed, into windows & buildings...
~~~
But we had to kill half the colony when we found out they weren't Democrats...
I'm sensing a movie here. Mind if I edit your comment down to 25 words?
Yes, you're right Paul. OMG!...did I just say that??? What the hell is going on...the world is starting to spin...
Krugman says Cyprus must leave
This plan will be hard to achieve
My tongue I now bite
Agreeing he's right
There's hope for us all, I believe
There once was a man named Paul
Who liked to throw shit at the wall
In glee he would spew
Even though it was not true
He still thinks he's King of it all
Others say Krugman must leave
His concepts are hard to believe
a coin worth a trillion
like a skiing brazillian
is a trick that's in search of a sleeve
Your economic perspectives are entirely based upon central banks counterfeiting value at whim, and thus prove you know nothing about economics at all.
Don't you know that if anyone at all has the power to print money the result is always going to be capital misallocation? Free money in any form is evil.
I can't remember, that you ever suggested that Greece should leave the Euro. You can't have both, no Austerity and staying in the Euro, but leaving the Euro makes absolutely sense here - the earlier the better.
The reason why austerity is so crushing is places like Greece waited far too damn long to do anything about their debts, and let them get far too damn big.
Never let your debts get so big that your attempts to repay them crush your finances.
Economics is simply some over educated PhD's attempt to rationalize a nation frakking up their finances and making the situation more complicated than what it was or ought to be.
*waves 'hi' to the CIA* Dr Krugman sends his greetings.
Or, is just your "mostly useless, twice a day right" clock sindrome.
oR START PLAYING ROBIN HOOP AND START STEALING FROM MORALLY BANKRUPT ASSHOLES LIKE YOU
nope. he still and forever will think dy/dg > 0 with no incentive distortions or consequences. Its official, the worth of the Nobel Prize (especially in economics) aint what it used to be.
Do you and your ole lady still have that beach house in the Caribbean?
Is his cat named Ole Lady?
I wouldn't put beastiality past him...he fucks everything else up.
I also offered that theory on another thread and I believe someone said he prefers the company of men. So do I so I guess we have one thing in common.
Miffed;-)
Dr. Krugman,
Now I know that the phrase "private debt" has never passed your lips and that energy is not a part of your world view, but how will Cyprus be able to import any oil with a weak currency?
I believe his new thesis is, they can bank on their tourists being exported...whatever that means.
Yeah, cheap booze and topless beaches generally get my attention. Maybe a changing of the guard?
Those who have had the Russians around for a while are usually ready for a fumigation.
I hear ya...but in true Krugman double-speak form he says...
"In order to get them back they must increase their exports by decreasing the value of their currency."
Apparently he doesn't read his own NYT's, the currency in Cyprus is still the euro last I checked...and he got up voted for it...lol.
(Sigh)
Wow.
And what was the first line of my statement?
Wow. Just wow. Some of you are epically dense.
Are you really Krugman?
Will the real Paul Krugman, please stand up, please stand up, please stand up.
Y'all act like you never seen a real Keynesian before
Ass all on the floor, like Hayek burst in the door.
"But I am... Rock Quarry"
[Flintstones]
~~~
http://www.youtube.com/watch?v=6pgzlZnK6XI
Do you understand why many wealthy individuals have moved to Switzerland over the last decade?
"And what was the first line of my statement?"
The same thing that's on HuffPo.
But tell me "Doctor", where was your precious euro compatriots ethics & morality, when they asked Cyprus (and their banks) to bailout the Greeks with "stolen" Russian "hot money".
Just another hit & run on the peeps trying to squirm out at the end of the theft...as per your usual.
Well, he deserves some authenticity points,
but in the old days, he'd never have got past the capcha:)
I see he's brought some mutes with him as well ;-)
'Tourists being exported' means they go back home.
Going Green. Solar & Wave energy. Make gas deal with leading gas giants.
"we train young men to drop fire on people but their commanders won't allow them to write FUCK on their jets because it's obscene!"
The Horror!
First time an article makes sense to me. I am still overwhelmed by so much realism. Congratulations for finally taking the red pill.
I read your blog. This is what you say, so I am going to assume this is really Dr. Krugman. What makes you think the US is unlike Cyprus? The illusion of well capitalized banks and a decent economy is nothing but that - an illusion of the Fed's making. Take it away and you got jack squat. Explain to me how the fed exits and the country doesn't implode. Oh, and how long and trillion dollar .gov deficits go on without dragging everyone and everything down with them?
We have a tax base.
And the debt load will not impact us for quite sometime, per the CBO. Hopefully by that time we will have done enough to ensure a full recovery.
And of course, let's all forget that the primary benefactors of the Neo-Keynesian largesse required to prop-up our deflating economy is the highly corrupted Too Big Too Fail banking system. A system that has brought us to the edge of the financial abyss through blatent fraud that remains unpunished due to regulatory and political capture. Just keep priming the criminal fiat pumps and everything will eventually be fine...isn't that right Mr Krugman?
Dude,
IMHO, your limericks are almost as weak as your spelling..........but your analysis is spot on!
With all due respect, you're advocating pouring lighter fluid on spent coals rather than adding more coals to the fire.
Central Bank fiat money supply machinations have nothing to do with real economic value, and merely line the pockets of a privileged few. That's all it was ever designed to do, and that's all it ever can do. To pretend otherwise is to prove that you do not understand these matters at all.
The end of this chapter of fiat money history approaches ever more rapidly as everyone begins to realize what you apparently cannot.
Paul Krugman (and his ZH account likeness) know that nothing he suggests is going to help anyone except the rich elites and mega-banks. He is a paid agent of our enemies. I don't understand why people waste time debating this clown, even if it really is him.
Bravo. If I wanted to talk to that mofo I'd be on his damn blog.
He's a troll, does nothing but derail legitimate discussions. I couldn't give a flying fuck if he's the "real" Krugger or not. He's still nothing but a troll here. What a waste of space.
I used to think he was funny, sarcastically impersonating the real guy, and mark him up. But now he's gotten ubiquitous. He's either fake and believing his own press, or real and believing his own press, and either way I wish he'd get the fuck out so we can get on with things. If I wanted to waste time on a fame whore I'd be on HuffPo.
It's gotten annoying how much time it takes to scroll past the damn Krugger replies and get to the good stuff. If he's for real he should get a paper bag on his head and learn what 'anonymity' means and why it's valuable. If he's fake, the joke's gone on too long.
Hey Krugamn, what happened with that oil call you made back in 2008. kinda fuckin missed that one, didn't you?
"And the debt load will not impact us for quite sometime, per the CBO"
The CBO is full of shit. Your assumption is wrong, therefore, your argument is wrong.
Thanks for playing.
Take US federal tax revenue and divide it by the national debt since 1900.
Take US per capita income and divide that by national debt since 1900.
Now graph both and you can see how fucked we are as a nation.
I'd post the graphs but I'm not allowed to post pictures here. That's kind of stupid on my opinion.
Whenever I see your comments, I am amazed that people think you might be the real Paul Krugman. Is it that easy to fool people?
You mentioned in another comment that the people here are anti-establishment doomers. I don't know if they are anti-establishment. People like Boehner and Rush Limbaugh hate Krugman. There aren't too many other people conservatives can hate, considering most Democrats are middle of the road types, so they tend to latch on to him.
This comment made me laugh. Thanks.
Most Democrats are middle of the road types????
In what fucking universe do YOU live in?????
Can't be Krugman. That the lofty economist would stoop to converse with the " unwashed masses" of ZH would be akin to me engaging in philosophical discourse with the ant hill next to my garage. I simply don't believe it.
Miffed;-)
I don't know, Miffed. ZH is the shit! Maybe he's cock hugging on Tyler.
Well looky here and hell didn't freeze over.
Oh, how I like it when western capitalists suck my bald, hungry nuts!
Mr Krugman, I know you favor trickle down wealth. I have a question. over the past decade plus, here in the USA, we have tried this theory. as a result the average family, who does most of the working and paying and living and dyng, as Jimmy Stewart put it, which is the very core of success to any business (sales) in all aspects of the economy. The rich cannot get rich unless they make a profit or take a welfare check, so to speak.
If this top down approach worked, why then has the cost of all goods and services risen sharply over the last decade, while income has not kept pace... and how can tax dollars from an everincreasingly poor middle class, continue to feed welfare to the top, and no longer have the ability to spend "disposable income" since that has been eaten by inflation?
At what point does the money pooled at the top, have to be confiscated, and distributed to the newly created poor, and what hope does the wealthy-ish ever have of promoting a new good or service, that no one has any money to buy?
This proposal of yours for Cyprus to leave the EU comes too late. you see, the average cypriot will be effected. They will lose their jobs. the 100K euro holder, is the average business, who will not be able to meet payroll. even if you claim to continue government programs to help the people, it goes through filthy, sticky hands... and like the bailout, never meets the street. If a government wanted to fix this, the thing to do, would be to haircut the banks and governments, for an amount equal to the total mortgage debt of the purchasing class. by returning the average family to having disposable income monthly, would create a buying spree. retailers, suppliers, manufactueres would be flooded with orders. they would need to hire more people, overtime would return, incomes would rise..... this would cause more sales. there would be growth. people would feel wealthy again, and they would be. savers would return, as they were 40 years ago. the banks would stabilize, and even , over time recover from their losses. the government would have a larger and wealthier tax base, so they too could recover, if they applied the new monies with an intent to clear the debt for hard times.
you recommend that Cyprus leave the Euro? the new currency would be devalued, and all savers would take another hit... that would be a death blow at this point.
the island has 1.5 million people. figure 3 to a home, thats 500K mortgages (aproximating all at 200K balance each.) if all of them are mortgaged. the entire bailout deal, if applied to the average person's mortgage, instead of the banks, would (yes) cause the banks/government to default, as they must in the next few months anyway...but it would preserve the buying class, so they have a way to rebuild.
when the new currency, under your premise, were devalued, as it would be...isn't that a form of austerity that would hit every person with a dollar in their pocket, instead of just the businesses, retirees and semi-wealthy?
Consider that the numbers for the "average family" includes incomes for 20 million illegal aliens who can hardly speak the language. It also now include all of the illiterates of Detroit and Chicago. Drop out the illiterate and illegal and you will likely get a much different result.
It was a fiat murder scene of the common man, no more no less.
@ Paul Krugman, I still owe your mum twenty quid.
"That will be the end. Our jobs, our rights, our welfare funds will be lost and Cyprus will be destroyed."
I guess they are going to have to rewrite the book on territorial imperative. Cyprus was crushed by central bankers who did not fire a single shot. The bullet in this case were lies, deceit and greed. There will be no cleansing of the temple, out of this will be born new lies, deceit and greed.
When the current EU dies a new Pan-European identity will be born, a new "ism" will appear... and yes gentleman, the trucks will come again. The rhymn of history if you will.
KUDOS on knowing when to use your, yore and you're........a rare feat in the America under the Obowel Movement.
I'd guess you are over 40
The greater fool bought that shit.
Larry motherfucking FINK... [lol]... Had to say it... Somebody said it here the other day & it got stuck in my dome...
Who? Check your 401k money market fund. Why do you think they broke the $1.00 mark back in 2008.
ECB.
Blackrock is now Schleprock.
Who did Blackrock sell to?
Some captive lacky pension fund manager who doesn’t know shit, and does what Blackrock says or else Blackrock blows the whistle on him and he loses his job. Unfortunately, that’s how much power these MF’s have in some situations. The whole system is rigged against the ultimate end user. None of it would survive if they had to answer to their true customers.