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The European Commission Lays Out The True Blueprint For The Future Of Every European Country

Tyler Durden's picture


Cyprus was the beginning. Next: every other country with a banking system in which non-performing loans are soaring (cough Slovenia cough) as a result of imploding consumer cash flows, and which needs a financial sector "resolution", which includes, among others, impairment of liabilities courtesy of the new non-template template (and which is now spreading to European interbank deposits). And they all have Cyprus to look to because it will be the benchmark.

Luckily, earlier today as part of its just released "Assessment of the public debt sustainability of Cyprus", the European Commission was kind enough to spell out in very clear terms just what the fate of virtually every European country will be going forward.

For the gruesome details we go straight to paragraph 10 where we read...

In accordance with the [insert insolvent European country's name] authorities policy plans, major financial institution will be downsized combined with extensive bail-in of uninsured depositors, and a set of wide-ranging temporary capital controls and administrative measures. The programme is envisaged to build the foundation for sustainable growth over the long run. Nevertheless, in the short run, the economic outlook remains challenging. Real GDP is projected to contract by [insert massive amount] cumulatively in 2013-14. Short-run economic activity will be negatively affected by the immediate restructuring of the banking sector, which will impact on net credit growth and by additional fiscal consolidation measures. Temporary restrictions required to safeguard financial stability will hamper international capital flows and reduce business volumes in both domestic and internationally oriented companies. The bail-in of uninsured depositors will cause a loss of wealth, which will reduce private consumption and business investment. This, compounded by the impact of fiscal consolidation already undertaken and new measures agreed, will result in a sharp fall in domestic demand. Little reprieve can be expected from exports amid uncertain external conditions and a shrinking financial service sector.

And just for once, Europe is actually talling the truth.

Yet such is life, sad as it may be, for a continent that may have "vastly underestimated the amount of political capital that has been invested in the Euro", and "what the Euro means for the Europeans, for the Euro area."

For those still confused, it means countless years of pain, suffering and poverty. And it's all downhill from there.


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Wed, 04/10/2013 - 19:21 | 3434250 zorba THE GREEK
zorba THE GREEK's picture

Soon to be adopted by the U.S.

Wed, 04/10/2013 - 19:38 | 3434298 Muddy1
Muddy1's picture

First the bankers screwed us taxpayers with TARP and other bank bailouts, including the bailouts of European banks with offices in the US.  Now they will just flat steal money from our accounts.  Hopefully, people will drain their accounts now and keep them drained.

Wed, 04/10/2013 - 19:47 | 3434329 francis_sawyer
francis_sawyer's picture

Not to worry... All the STRESS TESTS were passed with flying colors...

Wed, 04/10/2013 - 19:59 | 3434362 Croesus
Croesus's picture

Let them eat Bitcoins.



Wed, 04/10/2013 - 20:15 | 3434442 knukles
knukles's picture

They keep much more of this shit up, there ain't gonna be a banking system left as we know it.  It'll devolve to a non deposit industry except for small frictional balances held for convenience with everything else in mattresses and likely giving rise to whole new savings bank type institutions or other alternatives.
And without a viable banking system, the politicians have nobody to bail out their countries or means to hide their illegal largesse.

This is really messed up, folks!

We are on-board a fucking crazy train!

Wed, 04/10/2013 - 20:57 | 3434607 RuiNsPro
RuiNsPro's picture

A few years back b4 Cyprus joined Euro project it was a fine nation. Not super rich but doing OK. Now they are EU's b*tch to rape with. Who still wants to be a part of EURO? It makes me laugh that some people (such as Rickards and Sinclair) are bullish on Euro. You can only rape those poor fellas for so long. Someday they are gonna quit from this slavery currency union and EURO will go bust.

Thu, 04/11/2013 - 00:18 | 3435243 flacon
flacon's picture

Hey Bankers, "it's the USURY, stupid!" 

Thu, 04/11/2013 - 02:34 | 3435416 Ghordius
Ghordius's picture

you mean that those two Cypriot banks would not have had any problems without the EUR? how so?

Thu, 04/11/2013 - 13:05 | 3437110 SimplePrinciple
SimplePrinciple's picture

If you have hot money, a 5% interest rate paid in euros sounds pretty good.  A 5% interest rate paid in Cypriot pounds?  Not so much.

Thu, 04/11/2013 - 07:29 | 3435605 Urban Redneck
Urban Redneck's picture

Until someone builds a new hot tub- there is are only so many sides that global liquidy can collect at or slosh against, so it's a valid thesis.  However, this sort of stupdity is likely to drive liquidity over to the US TBTFs at the next sign of crisis (at least until Uncle Ben or the FDIC next go full retard).  Over the medium term the stupidity serves to drive demand for an alternative to the evil triumvirate of Bernanke, Draghi, and Kuroda, which is exactly what they don't want. 

Thu, 04/11/2013 - 08:30 | 3435711 johnQpublic
johnQpublic's picture

stupidity serves to drive demand for an alternative



and just like that, success!

world global currency is obviously the endgame here

Thu, 04/11/2013 - 00:20 | 3435247 Freaking Heck
Freaking Heck's picture

Let them watch Idol

Wed, 04/10/2013 - 20:00 | 3434368 Uber Vandal
Uber Vandal's picture


Why, Yes.

Yes, Indeed.

Published on July 16, 2011

CYPRUS’ three main banks, Bank of Cyprus (BoC), Marfin Laiki and Hellenic Bank yesterday passed the EU-wide bank stress tests coordinated by the European Banking Authority (EBA) in collaboration with the European Central Bank (ECB).

Wed, 04/10/2013 - 23:35 | 3435164 francis_sawyer
francis_sawyer's picture

I don't even have to watch 'Comedy Central' anymore for my LULZ...

Wed, 04/10/2013 - 19:51 | 3434338 Ahmeexnal
Ahmeexnal's picture

This was clearly the outcome many could foresee even before the euro was IMPOSED by Helmut Kohl.

The only reason the europeons went along with it was because of their deranged hatred for the USA, and the power elite took advantage of that condition. They sold the monetary union as a pan-european currency that would rival the US dolar.

What the europeons did not do was read the fine print:
"you will have to give up your dignity/wealth/freedom/life in the process"

Wed, 04/10/2013 - 19:55 | 3434344 knukles
knukles's picture

And then you'll fell good about yourselves because you'll have bested the Americans.

Uh Huh....

Thu, 04/11/2013 - 02:46 | 3435422 Ghordius
Ghordius's picture

"deranged hatred for the USA, ... They sold the monetary union as a pan-european currency that would rival the US dollar"

yeah, sure, deranged hate... what huge pile of bullocks

that the path of the USD was clear from August 1971 on is already forgotten? and if it's really "rivalry" - which it isn't - isn't there a different name for it in commercial terms? Like... competition?

if at this stage of the crisis 17 european currencies would all be pegged to the USD, how would you comment on similar issues? and don't even think about suggesting a gold backing, this would be quite disastrous with all the other major currency in full devaluation mode

Thu, 04/11/2013 - 14:52 | 3437560 newworldorder
newworldorder's picture

Lets get some things straight here Ghordius;

-  The $dollars does not need to be defended (since reckless US spending is out of control.) The only exception being that it is the reserve currency defended jointly by the US military and the US judicail system. Where else are you going to go? Pick any other country on earth that currently can be trusted on both a military and judicial bases for a non US citizen to park their wealth.

-  Lots of US$ swaps for Euros have and are still saving European/GBPound's bacon. We dont have the full story here. Could it be in the trillions? Could this be partly responsible for keeping the Euro at the $1.30 range. Take the swaps away and let's see the Euro float on its own worth and power.

-  Gold supression engineered and executed by FED, BIS and IMF policies. Keeps all fiat currencies and cost of oil trading in a narrow price range. Stop supression and replace the US$ as the reserve currency and see what that does to European energy needs as well as Finacial flows.

Wed, 04/10/2013 - 19:58 | 3434357 Hobbleknee
Hobbleknee's picture

I think they already gave all of that up for "free" health care.

Wed, 04/10/2013 - 21:08 | 3434640 Die Weiße Rose
Die Weiße Rose's picture

we love the USA in Europe -

we just don't like the English....

because they are not yet american enough.

and they keep on manipulating Libor

and acting as if they are the financial center of Europe,

when clearly they are not.

The southern part of England is really the 51'st state of America...

except Scottland, Wales and Ireland, who all want Independance

from the old slave-traders Colony.

Europe loves America...

they are our biggest trading-partner.

Dignity, Wealth and Freedom is Not confined to any specific Nationality.

Poverty and Wealth can be found anywhere.

Many People are Wealthy, but lack dignity and freedom

and visa-versa.



Thu, 04/11/2013 - 02:24 | 3435403 mkhs
mkhs's picture

Even after the O-BAMbanator, you still like us?  You should probably move on.  It is not you, but us.  We have changed.  Best of wishes.  Good bye.

Thu, 04/11/2013 - 05:49 | 3435520 Azannoth
Azannoth's picture

"we love the USA in Europe.." speak for your self, please

Thu, 04/11/2013 - 01:41 | 3435366 Joe A
Joe A's picture

Europeans went along because they were brainwashed by their leaders that everything was going to be great. If Europeans had known beforehand what the dangers were of the common currency they would not have been so happy to accept the Euro. But sketic Euro opinions did not get attention or were brushed off.

Thu, 04/11/2013 - 05:52 | 3435521 Azannoth
Azannoth's picture

It's the Plan stupid

Besides people believe what they want to believe, that's the definition of belief ie. a conviction not (necessarily) based on any real facts

Thu, 04/11/2013 - 07:13 | 3435582 fajensen
fajensen's picture

Nope. Europeans did *not* "go along"!

The approval process is one of: Voting must be repeated forever until the right vote is cast. If it is obvious that the EU will lose anyway, then the rules are changed so we don't need to vote on that issue anymore. Whatever agreement the EU wants becomes law, the commision likes approval by voters but in the end they really don't give a shit what anyone thinks.

Wed, 04/10/2013 - 19:24 | 3434262 Tinky
Tinky's picture

Orwell would be horrified.

Wed, 04/10/2013 - 19:53 | 3434336 knukles
knukles's picture

These People are Fucking Crazy!
There will be heads on sticks!

Wed, 04/10/2013 - 19:59 | 3434369 Ahmeexnal
Ahmeexnal's picture

There will be heads on sticks!

My guess is that there will just be brand new episodes of "Danse Avec les Stars".

Wed, 04/10/2013 - 20:13 | 3434433 agent default
agent default's picture

That's because you have not known desperation (yet).

Wed, 04/10/2013 - 20:17 | 3434452 knukles
knukles's picture

Oh man, talk about Unintended Consequences as per the Europeans.
Guess who comes out of this smelling like a Rose, collecting everything looking for a new home?

The City of London!

Thu, 04/11/2013 - 04:42 | 3435489 andrewp111
andrewp111's picture

Haa ha ha. I don't think The City Of London will survive a collapse of the Eurozone banks.

Wed, 04/10/2013 - 19:55 | 3434343 Cdad
Cdad's picture

He would say, "Told ya."

For those who have been meaning to get around, finally, to reading "1984", but are too lazy to open a book, you might find this link helpful:

If you have more than a 1 minute attention span, it is definitely worth a Saturday.  Not only is the story prescient, but it is extremely well written, too.  A masterpiece, if you ask me...and you should ask me, as I have credentials in this area.  

Wed, 04/10/2013 - 19:28 | 3434268 swissaustrian
swissaustrian's picture

They know what they're causing in Southern Europe and they can tell the public, because they're UNenlected Eurocrats.

Wed, 04/10/2013 - 19:31 | 3434286 McMolotov
McMolotov's picture

The beatings will continue until we get tired of beating you.

Wed, 04/10/2013 - 20:03 | 3434393 Cdad
Cdad's picture

This thing...this latest thing with the Fed giving heads up to the "preferred class"....I'm afraid...well...I'm concerned that there is very little left in the way of rational solutions.  

You see, even now, there is blood in the streets as the Fed breaks all correlations and makes the biggest winners of all...out of those who simply by one ticker symbol.  And to the "best and the brightest", especially those who are being wrecked by the insanity of the Chairmen...for them, I'm sure a resolution is required right about now.  

Unless, that is, all hedge funds are no longer hedged, which could initiate the only rational option left to resolve this thing...this latest Fed thing...which would be to crash the market entirely.

I prefer the peaceful resolution of price discovery to other less pleasant possibilities, and I prefer the Revolution of the Closed Wallet to all of simply defund the banks...Go Average Joe!

But I am now very concerned about the few ways that are otherwise left to fix this thing...this latest Fed thing.

Thu, 04/11/2013 - 08:30 | 3435712 Bicycle Repairman
Bicycle Repairman's picture

"the peaceful resolution of price discovery"

Just another thing lost with the assassination of the marketplace and the imposition of violence.

Wed, 04/10/2013 - 19:28 | 3434270 Argos
Argos's picture

How can anyone leave money in any bank?  They are just encouraging a massive collapse.  Stupid.

Wed, 04/10/2013 - 19:29 | 3434272 Tango in the Blight
Tango in the Blight's picture

Just put all your money in European bank accounts!

Wed, 04/10/2013 - 19:27 | 3434273 beavertails
beavertails's picture

Due to the size of the derivatives, the sovereigns can't bail out the banking sector.  Expect more gold sales as well as there is an excess of gold reserves on the books in Europe.  It doesn't have to be this way.  This is to protect the 1%.  How about we let the risk takers, the bankers and their wealth all go to zero and start new country banks back with gold instead?  too accountable I guess.

Wed, 04/10/2013 - 19:37 | 3434297 Bastiat
Bastiat's picture

Where do think this sold gold goes?  Do you think it goes on the spot market?

Wed, 04/10/2013 - 20:02 | 3434378 pauhana
pauhana's picture

Oh, please, injecting a rational comment here is unappreciated.

Wed, 04/10/2013 - 19:36 | 3434274 THE DORK OF CORK
THE DORK OF CORK's picture

Pure evil.


Most of yee Yee guys don’t get the Euro.

It seeks to push resources upwards – like the banks have always done.
Indeed in the 1600s they began to do this on a national level.
Now through the mechanism of the Euro they can dump the nation state experiment and shoot higher
Germany can get Cypriot fuel not burned to sell finished goods to trade deficit UK ,US & pegged China.

They value BMWs more then people.
Its as simple as that.

just as they valued Sheep more then people in the Scotland & Ireland of the 1600s.
These are the self same banks I am afraid.
History is repeating itself.


These are now lowland clearances.

The elite of Europe own 1 billion chinese slaves 

What do they need the local workers for ?

Wed, 04/10/2013 - 19:37 | 3434295 Dr. Engali
Dr. Engali's picture

Such is the nature of all fiat currencies. Wealth gets concentrated into a few hands. It's poverty for the rest of us.

Wed, 04/10/2013 - 19:41 | 3434312 Muddy1
Muddy1's picture

"It's poverty for the rest of us."


Maybe so, but I have resolved to come out on the other side of this as a wealthy person, and I am doing what I can to make it happen.  

Wed, 04/10/2013 - 19:49 | 3434331 Dr. Engali
Dr. Engali's picture

Most of us are, but that won't stop tptb from trying everything they can to impoverish us.

Wed, 04/10/2013 - 19:51 | 3434332 THE DORK OF CORK
THE DORK OF CORK's picture

The Euro is not a pure fiat currency.

Its a double entry system much like all the others (but more extreme)


If you had a Honest King who could install a military fiat system you may have a chance.


The guy above trying to game the system for some wealth is dreaming.


They aim to kill us all.

Wed, 04/10/2013 - 20:41 | 3434493 Die Weiße Rose
Die Weiße Rose's picture

Concentration is the very nature of wealth

Real material wealth is hard assets like land and gold

in other words, substances of limited supply

(and increasing demand), but this wealth is of no substance

without the real spiritual Gold, which is Knowledge.

With the world population estimated to number 7.078 billion as of today,

(by the United States Census Bureau (USCB).)

it only makes sense that you got to invest your money wisely.

My advise is: Don't spend more than you got coming in,

don't buy things you can't afford or don't need -

Believe in yourself.

Don't waste your time blaming the system or others for your circumstance.

Don't get mad - get even.

Everything is relative. Most people here can afford a computer to post online.

This means that you are very wealthy and very privileged and fortunate,

when compared to millions of people who live in sweat-shops on 2 USD a day

to make all that stuff for this greedy, wasteful and hubristic consumer society we live in.

Count your blessings and think of those who are less fortunate than you.

Beware of "hubris " ( arrogant pride and presumption)

Remember that pride comes before the fall.

Believe in something and be thankful for what you got.

this concludes my daily sermon.



Wed, 04/10/2013 - 19:28 | 3434275 nmewn
nmewn's picture

"The bail-in of uninsured depositors will cause a loss of wealth, which will reduce private consumption and business investment. This, compounded by the impact of fiscal consolidation already undertaken and new measures agreed, will result in a sharp fall in domestic demand."

Well, at least government and its parasites will survive, that was a close one ;-)

Wed, 04/10/2013 - 19:36 | 3434287 Dr. Engali
Dr. Engali's picture

Why in the hell does anybody have money in any financial institution at this time? Stocks in street name..Screw that.... Precious metal etfs.... you have to be kidding. Nothing can be trusted at a time like this.

Wed, 04/10/2013 - 19:48 | 3434328 hooligan2009
hooligan2009's picture

i think street name exists only for retail these days

wholesale money is pwned by custodians like BNY, SSgA, NT and JPM

Wed, 04/10/2013 - 19:34 | 3434288 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Not if the money jumps ship from the SS ECB Central Bank Titanic first. Lifeboats be damned. We know the politicians won't do shit, not yet anyways. I think they might need some persuasion over there by their populaces first. At this point it is a shame on me type of deal if you let it happen again.

Wed, 04/10/2013 - 19:35 | 3434294 Iocosus
Iocosus's picture

NASDAQ reporting as of last week showed increased short positions against EUR. Smart money already left that Gulag.

Alas, the EUR/USD will ramp up at the European open.

Wed, 04/10/2013 - 19:45 | 3434325 hooligan2009
hooligan2009's picture

the euro is no worse than the dollar or the yen or sterling. 

fiat is as fiat does (fiat bought chrysler! heh)

fiat was manageable when leverage in the fractional reserve system was only 10 times leveraged, (prime rates at 7.5%) decidedly dodgy at 15 times leveraged (5% prime rate) and ludicrous at >20 times leveraged (<5% prime rate).

there are far more people in europe and Japan that don't believe in excessive leverage (>10 times in the banks) than in the US and the UK

banks in all regions play the same "global" macro trading game.

i'm yet to see how prop trading at banks has ceased, since no-one can define prop trading. or at least no-one will admit that banks with retained profit must expose that profit (capital) to risk and incur macro risks that must be managed.

what is with people that think that migrating prop trading from banks (which is taxed, controlled and regulated, with caps on remunerations) is better done in global macro or long/short hedge funds (unregulated, untaxed and charged at 2% and 20% with no caps on remuneration!!!!!).



Wed, 04/10/2013 - 19:39 | 3434300 hooligan2009
hooligan2009's picture

wait, does this mean that the europeans are going to go for a full system reset that writes off all the bad loans in one hit by "bailing in" deposit money and senior debt in the european banks are hit once junior, lt2, lt1, ut, cocos and equity of banks is wiped out?

there never has been a debate about depositors and senior debt holders ranking pari was only that TPTB socialized banks and interfered with their failure

Wed, 04/10/2013 - 19:39 | 3434303 Cacete de Ouro
Cacete de Ouro's picture

Paragraph 29: Sale of excess gold reserves: The cypriot authorities have committed to plunder most of the gold reserves of the Republic. This will raise a one off pile of Euros worth €0.4 billion that will take the form of an extradinary payout by the compliant central bank.

Thats basically it. And the Cypriot authorities have denied this only today..

Wed, 04/10/2013 - 19:40 | 3434308 chubbar
chubbar's picture

Look, the bankers throw a bunch of money into peripheral banks. They slowly pull the funds after the banks have used those funds to invest into crap sovereign bonds. The resulting banking crisis calls for a bailout from the ECB. The ECB requires "bail in" from depositors which results in greatly decreased economic activity plus pulling funds from potential problem children who may use their capital to oppose the takeover. This results in the need for more money from the ECB which they will trade for the sovereign gold. The gold is traded. The country still BK's but the EU has the gold which it uses during the great "revaluation" to completely capture all the satellite countries because they are the ONLY source of capital. Game, set, match. Got it?

Wed, 04/10/2013 - 19:58 | 3434364 Winston Churchill
Winston Churchill's picture

Gold confiscation without executive order.

They get the the gold and everyone else is left with paper.

Want to guess what the gold will be be revalued at ?

Watch out Italy.

Wed, 04/10/2013 - 19:42 | 3434315 Everyman
Everyman's picture

WOW!  There will be a lot of little revolutions turning into BIG revolutions.  After 2 world wars and countless medieval wars, and the whole sorry lot of actions for those in charege through the eons of time has resulted to pulling the everyday man up from ridiculously inconsequential in the "dark ages" to trying to provide everything for  am man in a nanny state way, and now, we go back to the dark ages where one individual (or their bank account or possessions) are of no right or consequence to the "State".

The worm has certainly turned, and welcome Europeans to the new Europe, meaning, "you are belong to us." (Blood bone and money, NOTHING is "yours")


And you WANT to belong to this corrupt Euro-Trash, willingly???????

Wed, 04/10/2013 - 19:57 | 3434355 hooligan2009
hooligan2009's picture

the spice must flow...

Wed, 04/10/2013 - 23:04 | 3435069 Just Ice
Just Ice's picture

But, but...there's soooo much po-lee-tee-kul cap-pee-tul invested!

Wed, 04/10/2013 - 19:44 | 3434321 Die Weiße Rose
Die Weiße Rose's picture
Cyprus to sell around 400 million euros worth of gold

Wed Apr 10, 2013 10:50am EDT 


(Reuters) - Cyprus has agreed to sell excess gold reserves to raise around 400 million euros and help finance its part of its bailout, an assessment of Cypriot financing needs prepared by the European Commission showed.


The draft assessment, obtained by Reuters, also said that Cyprus would raise 10.6 billion euros from the winding down of Laiki Bank and the losses imposed on junior bondholders and the deposit-for-equity swap for uninsured deposits in the Bank of Cyprus.


Nicosia would get a further 600 million euros over 3 years from raising the corporate income tax rate and the capital gains tax rate.


Out of the total Cypriot financing needs of 23 billion euros between the second quarter of 2013 and the first quarter of 2016, the euro zone bailout fund will provide 9 billion euros, the International Monetary Fund 1 billion and Cyprus itself will generate 13 billion, the assessment said.


(Reporting By Gernot Heller, writing by Jan Strupczewski)

Wed, 04/10/2013 - 19:56 | 3434349 hooligan2009
hooligan2009's picture

there is no way in hell that the cypriots need 23 billion over the next three years unless that is to totally replace a 100% loss in gdp per capita

imf and cia says cyprus had 27,500 per capita gdp in 2011

there are less than 1 million people in cyprus

those financing needs of 23 billion euros (30 billion dollars) works out at 23,000 euros or 30,000 dollars each..i call bullshit, unless the level of gdp pre 2013 has to be made up

we all know gdp is bullshit as a measure of activity once it is dominated by inter-regional banking.

what this financing of 23 billion euros is the means to lend cypriots the money to bail out banks and then have cypriots pay taxes to socialize these losses.

better to write off the bad loans and reset the economy to one with no inter-regional banking.


Wed, 04/10/2013 - 20:52 | 3434579 ITrustMyGut
ITrustMyGut's picture

the "crisis" has ZILCH to do with people and debt....


this is 1000% bankster shenanigans... derivatives...


this IS the "financialization" end game

Wed, 04/10/2013 - 19:45 | 3434323 Blond Viking
Blond Viking's picture

Turns out Cypriots are second richest in Euro area, Germans poorest. If this does not start a summer of discontent in Germany, I don't know what will.

Source (in German):

This information was alllegedly known during the Cyprus crisis but concealed from the general public.

Wed, 04/10/2013 - 19:46 | 3434327 orangegeek
orangegeek's picture

A book written a few years ago - The Roots of Obama's Rage - written by D'Souza - said very clearly that Barry is out to collapse the system.


Sure as fucking hell looks like it.

Wed, 04/10/2013 - 20:48 | 3434571 ITrustMyGut
ITrustMyGut's picture

d00d.. really?  I mean REALLY? one know nothing, come from no where, no background, no history... propped up howdy doody face schmuck...and its "His agenda" REALLY??


come on.. thats litterally insane to ponder... 


personalizing the state of affairs... like the foolish left personalized with shrub... trivializes the whole damn thing.. AND... ADDS  to the Problem..


come on man... do the tiniest bit of research... this is cross fake "party" lines.. this is Global for chrst's sake...generational...


seriously.. come on...

Wed, 04/10/2013 - 19:53 | 3434340 vainamoinen
vainamoinen's picture

ah schucks - - - they new they were going to do this all along.

Guess we shouda never listened to em' - - -


Wed, 04/10/2013 - 20:04 | 3434390 Ban KKiller
Ban KKiller's picture

Again, everyone is redefining assets...or more likely realizing their assets are vapor. What is value? What HAS value? Certainly not what the banks are claiming to have on their balance sheets as evidenced by the failure of banks who passed those so called stress tests. If I can't hold it I don't trust it. If I can't readily trade an asset it has no future value but many have value to me in the moment IF it is something usable. Banks, on the other hand, count any damn thing they please as an asset, bloated real estate and highly questionable derivatives. Bankers fart and claim they own natural gas deposits. 

Wed, 04/10/2013 - 20:05 | 3434396 bnbdnb
bnbdnb's picture

Three year time frame - Strong USD, strong US stocks, low treasury yields, WITH QE ending. Bank on it. The world hates usa, the oligarchs love usa.

Wed, 04/10/2013 - 20:10 | 3434415 bankonzhongguo
bankonzhongguo's picture

The Europeans deserve everything they get.

Hundreds of millions of sheep being sheared and not one banker or politician killed or even molested on the street.

This is what happens when you have no second amendment.

Meanwhile, how many "smart" Europeans will take their money out of the banks to buy Las Vegas and Miami real estate?

Thu, 04/11/2013 - 07:20 | 3435597 fajensen
fajensen's picture

How many have your lot offed - with all them guns freely available to you and blanket permission from the second amendment to form organised militias. Have you lot even molested anyone bigger than altar boys? Bunch of loudmouth poofs, only good at killing children!!

Wed, 04/10/2013 - 20:14 | 3434429 Bennie Noakes
Bennie Noakes's picture

Austerity for eternity... (Except for the bankers, of course.) What a plan!

Wed, 04/10/2013 - 20:15 | 3434440 smacker
smacker's picture


No one should be left in any doubt that fascism has now seized control of Europe, fulfilling my prediction of ~18 years ago that fascism was on the rise.

This piece of garbage trash dressed up as used lavatory paper from the EU-EC is being formulated into EU law as fast as Merkel & Barroso can get it done.

The time is here when an armed militia needs to emerge to remove these madmen and mad women from power.

But the majority of Europeans have not learnt from Mussolini, Hitler and WWII and will put up with this fascist trash, turning a blind eye to the growing suffering of others across Europe and the progressive destruction of personal wealth, as the madness of fascism burrows down into every nook and cranny of their lives turning them into nothing more than obedient automatons working for the New Fatherland.

Wed, 04/10/2013 - 20:18 | 3434465 knukles
knukles's picture

Sure glad us Yanks took all the time and effort to eradicate Hitler...

Wed, 04/10/2013 - 20:35 | 3434511 Winston Churchill
Winston Churchill's picture

Its an ism all right.All those ism's :socialsm,fascism,communism are all

the same thing in reality, STATISM.

It matters not for J6P which ism its called.Its the same shit at his level.

Wed, 04/10/2013 - 20:59 | 3434615 smacker
smacker's picture


Who will save Europe this time?

Wed, 04/10/2013 - 20:33 | 3434494 JR
JR's picture

There was never a hint that to be in the euro zone was going to cost you your personal wealth.

This Cyprus example is blowing the Troika’s entire program and plan for the euro zone. Cyprus is suffering and it’s hitting it hard, yes, but it’s probably the chink that’s going to break the euro zone. You think Italy is not watching this or France? Do you think these countries do not recognize that this means the bankers take all -- your sovereignty, your capital, your resources, your means of production, your self government – unless you start knocking down your commitment to Brussels, now, and get out of there?

Did giving up little bit after little bit of sovereignty through all these years buy a model euro zone that would benefit everyone?

No. Tyler’s great comment early on was correct, that all of this giving up of political capital in the end was going to cause excessive pain.

And, now, the euro zone is sinking. The word is out, that Europe is banker-occupied territory; that the bankers will decide who is prosperous enough to be paymaster, and who is an errant member and must suffer the "bail-in model."   And the word is, if there’s to be a euro zone, then get ready to be Cyprused...

where they tell you what to do and take your money.

Wed, 04/10/2013 - 20:40 | 3434530 Rob Jones
Rob Jones's picture

The decision to hit large Cyprus accountholders introduces "moral hazard" into the system. Very commendable.

Didn't work out so well in the case of Lehman though. Because when people see the "moral hazard" they tend to pull their loans and run like hell.

Wed, 04/10/2013 - 22:14 | 3434884 cynicalskeptic
cynicalskeptic's picture

Didn't the select fes 'in the know' take their momey and run BEFORE Cyprus melted down?

Wed, 04/10/2013 - 21:16 | 3434619 Curtis LeMay
Curtis LeMay's picture


Yet such is life, sad as it may be, for a continent that may have "vastly underestimated the amount of political capital that has been invested in the Euro", and "what the Euro means for the Europeans, for the Euro area."

For those still confused, it means countless years of pain, suffering and poverty. And it's all downhill from there.



Do people realize how close "Europe" is to Spring 1945 Berlin total collapse?

Italy has no government and carries $2.6 trillion dollars in debt, the third-largest in the world after the United States and Japan and an economy that makes the late seventies US well being seem like utopia by comparison. 

BUT it doesn't even have its own currency.

Gee, ya think that's a problem?

When Grillo's demand for a euro in/out referendum comes to fruition?

Not to worry! Germany will write a check...because of WWII guilt?

Are they still that stupid? My money, and common sense, says fuck no they aren't - and good for them.

Wed, 04/10/2013 - 22:16 | 3434901 cynicalskeptic
cynicalskeptic's picture

But half the Italian economy is 'underground' and off the books not reporting - no tax revenue but the total level of economic activity is a bit more robust than statistics may indicate

Wed, 04/10/2013 - 22:34 | 3434966 JR
JR's picture

After all these many long years, I can only hope you are right.

"As Sylvia Poggioli indicated, the debate over Germany's role in Europe has invariably been contextualized by 'the politics of history,' which is to say the Jewish manipulation of German guilt for financial advantage."

Robert Hickson, in his article last year, The Asphyxiation of German History, adds, “Germany is now in a life and death struggle with Jewish finance, and as of now it looks as if New York is winning…

“Jewish finance in New York decided to pull out the club known as ‘history’ to beat Germany into submission once again. As Dr.[Paul Craig] Roberts put it: ‘Germany, which has been browbeat since its defeat in World War II, has been made constitutionally incapable of strong leadership. Any sign of German leadership is quickly quelled by dredging up remembrances of the Third Reich.’"

Said Hickson, "Leadership in this instance meant that Germany was insisting that the bankers (i.e., Goldman Sachs) who sold Greece toxic financial instruments, which the previous Greek government used to disguise the real magnitude of her indebtedness, take a 50 percent haircut on their bonds. The idea of Germany insisting on shared hardship as the solution to the debt crisis was intolerable to New York's Jewish banking elite."

As for the favorable double standard afforded 70 years of Stalinism versus 10 years of Hitlerism – created by Jewish and liberal support for Lenin, Stalin and the Bolshevist Movement – Alexander Solzhenitsyn writes in The Gulag Archipelago, referring to 1945-1966:

"… eighty-six thousand Nazi criminals had been convicted in West Germany. (Meanwhile, in East Germany, nothing of the sort is to be heard. Which means that they have been shod with new shoes, they are valued in the service of the state.) And still we choke with anger here [in the Soviet Union]. ...We even stay after work to attend protest meetings and vote: Too few! Eighty-six thousand are too few. And twenty years is still too little! It must go on and on.' And during the same period, in our own country (according to the reports of the Military Collegium of the Supreme Court) about ten men have been convicted.... Meanwhile, if we translate 86,000 West Germans into our own terms, on the basis of comparative population figures, it would become one quarter million (175-176)."

Germans must, as Hickson said, resist this "very hostile, strategic psychological warfare now still being conducted against their culture and way of life!" The boot stomping on the German face, albeit Jewish, is American-made.

Wed, 04/10/2013 - 22:46 | 3434932 Die Weiße Rose
Die Weiße Rose's picture

Reading the comments here;

it seems that many of you have either never been to Europe,

or can't remember how Europe looked like before 1989, when the Iron Curtain came down.

Well let me enlighten you:

I grew up in post-WWII Germany in the 60's during "Wieder-aufbau" ("Reconstruction".)

and the "Wirtschafts-Wunder" as the western world called it then  ("Economic Miracle".)

Germans worked hard to built up a country that had been totally destroyed and divided amongst the Allies,

(England, America, France and Russia)

Robbed and destroyed, stripped of all its Industry and Resources and Intellectual properties, Human Culture and Material Wealth.

In those years, the south of Europe lived in abject poverty, with Italians, Greeks  and Spaniards

making up a very large part of migrant "Guest-Workers" to come to Germany and join the "Reconstruction".


Later , after 1989 it was the eastern block workers from Poland and other ex-soviet countries,

and those were joined recently by Turkisch Guest-workers and the middle eastern countries.

You might call Europe an Experiment, but the fact is that Europe including the Euro has been

gaining in Strength with more and more countries wanting to join the EU.

Why is that, you may ask ?

Because many of these Countries, like Italy have come from total Poverty

and others from totalitarian Regimes like the ex- Soviet Union etc.

So the reason why they all want to join the common market of Europe is:


Trade and Prosperity.

The only Country that stands to lose out from this is England.

England has been a very powerful nNation in the past, mainly because of slave-trade and the colonies the made profits from slave trading.

But today , the colonies want to be independant, just as the ex-Soviet satellite states

want to be independant. (East -Germany, Poland, Ukraine ,Chechnia, Slovenia, not so much Serbia..etc

So to understand Europe, you got to understand Europe and understand where Europe came from.

What is happening now for many of these Countries is much better than anything they had before,

and that goes for all the whole of Europe.


Germany knows that without all of Europe, they do Not have any Market economy, and America knows the same.

Europe has 500 million plus people and if they are not doing well, no-one is doing well!


Where is America and China and India selling all their stuff to if Europe can't buy ?

Who is Germany going to get sell their Mercedes to ?

The Chinese can only buy if they can sell to the Europeans, in other words:

Its is the Interest of the whole World that the whole of Europe gets wealthy

and starts growing their middle class.

You obviously have got no clue about where Europe comes from and the Poverty and Destruction that was in Europe after WWII.

The lucky ones were England and America.

After WWII England and America went through a boom, because Germany had to be rebuilt from zero.

Italy and the South of Europe had never seen such wealth until they joined the European Union.

If it was otherwise, they would all leave, but they all know that a United Europe is way much stronger

than what was before. Even England knows that.


Without Europe and the EU Market, England would be finished,

the only Industry England has got left is their financial service sector out of London.


Now Germany did not force them to giva up all their Industry and manufacturing,

Margaret Thatcher did that, by selling England out to the London Stock Exchange.

So don't blame Europe for the failed Margaret Thatcher, Ronald Reagan, Milton Friedman Model.

England is virtually bankrupt, while Europe can only get stronger, despite all the set-backs and hick-ups.

So again, give me your red arrows if you like, but that won't change the fact that Germany needs Europe

as much as Europe needs Germany, as does the rest of the world.


The big loser is the Margaret Thatcher / Milton Friedman Model of England.

England tries desperately to hang on to the failed greed is good model

that was responsible for the 2008 GFC, and the World is still trying to recover from that loss.

the Milton Friedman Model of a "free market economy" has caused a bigger divide than ever before-

and I don't understand why many of you simply can not see that !

You can NOT spent your way out of Debt ,by taking on more Debt.

That is what Greece and Cyprus tried to do with the help of Goldman Sachs

when they faked their way into the European Union.

Now they pay the price for their Greed with Austerity.

Wealth is being transfered to Countries who did not take such risks.

this is what a true free market should be like.

You take risks, you get greedy ?

you lose.

that's just a fundamental law of economics ...



Wed, 04/10/2013 - 23:05 | 3435064 JR
JR's picture

Nowadays Europe is of two parties: the people and the bankers. The bankers' Europe, of which you speak, doesn't dare submit itself to a vote of the people. And THAT identifies just how successful the euro zone has been: a sweeping loss of freedom and the robbery of the people's wealth now filling the daily reports of a region in crisis -- a banker-induced crisis.  

I would say the views of the President of the Czech Republic coincide with those expressed early on by Margaret Thatcher who foresaw the European Union as a recipe for failure; which it has proven to be. If the euro zone is not a disaster, what is your description of disaster?

The Czech people, after they emerged from behind the Iron Curtain and broke the bonds of collectivism, hoped to help the cause of political and economic freedom in Europe only to find themselves in an European Union, entangled again in an “insufficiently productive economic and social system called die soziale Markwirtschaft.

In short, they found themselves in a social democracy government with "massive regulation from above” and an ever-expanding welfare system where eventually the government owns the people.

That is the analysis of Vaclav Klaus: “In Europe, we have witnessed a gradual shift away from liberalizing and removing barriers and towards a massive introduction of regulation from above, an ever-expanding welfare system, new and more sophisticated forms of protectionism, and continuously growing legal and regulatory burdens on business. All of these weaken and restrain freedom, democracy and democratic accountability, not to mention economic efficiency, entrepreneurship and competitiveness.”

The following is an excerpt from The Crisis of the European Union delivered by Vaclav Klaus, the President of the Czech Republic, to friends of Hillsdale College in Berlin during Hillsdale’s 2011 cruise in the Baltic Sea.  

After the fall of communism, the Czech Republic wanted to reassume its place among European democracies. We did not want to sit aside—as we were forced to do throughout the communist era—and European Union membership was the only alternative. Nothing else legitimizes a country in Europe these days. Therefore we joined the EU in May 2004. However, for those of us who spent most of our lives in the authoritative, oppressive, and non-functioning communist regime, the ongoing weakening of democracy and of free markets on the European continent represents something we did not expect and did not wish for in the moment of the fall of communism.

The most visible European problem today is the European monetary union, which was presented as the most important unification achievement following the Maastricht Treaty. The realization of this monetary union has not delivered the positive effects that—rightly or wrongly—had been expected from it. It was intended to accelerate economic growth, reduce inflation, and protect member states against external economic disruptions or so-called exogenous shocks. It has not worked. After the establishment of the euro zone, the economic growth of its member states slowed down relative to previous decades, thus increasing the gap between the rate of growth in the euro zone countries and that in other major economies. The internal disequilibria—such as trade imbalances and state budget imbalances—became larger, not smaller. And there is no indicator pointing towards a growing convergence in the euro zone countries. During its first decade of existence, a common currency has not led to any measurable homogenization of the member states’ economies.

It should have been clear to all, as it was to me, that the idea of a single European currency was essentially wrongthat it would create huge economic problems and lead inevitably to an undemocratic centralization of Europe. To my great regret, this is exactly what has been happening. The euro zone, which comprises 17 countries, is not an “optimum currency area” as defined by economic theory. In a currency or monetary union—which amounts to an extreme form of fixed exchange rates—it is inevitable that the costs of establishing and especially maintaining it exceed its benefits. Most economic commentators were satisfied by the ease and apparent inexpensiveness of the establishment of Europe’s common monetary area. In recent years, however, the negative effects of the straightjacket of a single currency have become more and more evident. When good economic weather prevailed, no visible problems arose. But when bad economic weather set in, the lack of homogeneity manifested itself quite strongly…

The second reason for European economic problems—not specifically European, but worse in Europe then elsewhere—has to do with the quality, productivity and efficiency of its economic and social system…

Thu, 04/11/2013 - 14:49 | 3437593 newworldorder
newworldorder's picture

The admirable goal of European Political Union is being tested not at a cultural level but on a Financial Level. The "Political capital that has been expended" as told to us by Draghi has been usurped by the EU Banksters. If the EU dies as a political entity, it will havebeen killed not by the  European people but by the European Banksters.

Thu, 04/11/2013 - 01:00 | 3435320 Kirk2NCC1701
Kirk2NCC1701's picture

Hmmm, ni't schlecht. Not bad, white rose.
When I don't have to type from a stupid smart phone, I can elaborate with bona fide info on what is REALLY happening in Slovenia, that even TD does not seem to know -- if you don't have quality contacts over there. Tomorrow...

Thu, 04/11/2013 - 01:32 | 3435353 Mark Urbo
Mark Urbo's picture

Pure BS !

When will you get it ?  Socialism DOES NOT WORK !

A) Similar models have always failed throughout history despite the left’s repeated attempts to create their societal “utopia”, the economics of it are unsustainable.  The economy is a living organism - when you over-regulate, over tax, remove incentives and increase public sector spending - the organism will become sick (low or no growth) and eventually die under the burden of public sector debt.  The private sector can’t support the weight of such wreckless spending and debt.

B) It is not that capitalism is failing – It is that quasi socialist government intervention into capitalism is failing.

Thu, 04/11/2013 - 07:33 | 3435611 smacker
smacker's picture

Your analysis contains some factual errors about England, IMHO. And also Germany I believe. Turkish guest-workers began arriving in Germany before 1989.

Whatever, it is based upon the false premise that for Europe to succeed, it has to have a big socialist govt and model of economics and society. That is a contradiction in terms because there is no example in history of socialism ever succeeding. It simply creates and spreads impoverishment equally. And this is being proven as we read. Europe is in crises and fascism is seizing control.

What we are seeing across the EU is the same old same old problem: when socialism fails, the socialist solution is to have more socialism.

There is NOTHING about the current EU that could not be achieved thru bi-lateral agreements between individual nations. Instead of that, we have a giant edifice - the European Commission - which nobody elected and which spends its time writing drivel EU Constitutions without a single citizen input, pontificating and drafting endless laws/regulation/rules to impose the wishes of itself and certain behind-the-scenes EU member govts onto the whole of Europe. Germany and France lead this nonsense.

Sorry, but Germany's economic renaissance since WWII has NOT been due to the EU.

Thu, 04/11/2013 - 01:23 | 3435345 Oligarch
Oligarch's picture

vastly underestimated the amount of Rothschild capital that has been invested in the Euro.

Thu, 04/11/2013 - 01:44 | 3435369 Joe A
Joe A's picture

And if the uninsured deposits are not enough, they will take the insured deposits as well.

Thu, 04/11/2013 - 06:57 | 3435569 smacker
smacker's picture


That's always been my belief too.

After all, it wouldn't take too many sentences in a new EU document to quietly change the rule. And given that expropriation of uninsured funds always seems to get telegraphed or leaked before the curtains come down, it becomes very likely that the amount of €cream€ they want to skim off uninsured deposits wouldn't be enough to fill their swag bags.

Thu, 04/11/2013 - 04:34 | 3435479 pfairley
pfairley's picture

Why bother jumping to conclusions that a Cyprus bail in is the model for all future EU?  Things are dramatic enough without using knee jerk hyperbole and taking cheap shots.

It is more curious that the criminals in Greece who lied on sovereign reports to the EU, cheated on taxes etc, are given better treatment than Cyprus and the Russians.

There is a clear suggestion of racial preference or lingering Cold War preferences which are contrary to a prediction that other EU countries will get Cyprus like treatment !!


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