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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zorba THE GREEK's picture

Soon to be adopted by the U.S.

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.

francis_sawyer's picture

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

Croesus's picture

Let them eat Bitcoins.



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!

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.

flacon's picture

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

Ghordius's picture

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

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.

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. 

johnQpublic's picture

stupidity serves to drive demand for an alternative



and just like that, success!

world global currency is obviously the endgame here

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).

francis_sawyer's picture

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

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"

knukles's picture

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

Uh Huh....

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

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.

Hobbleknee's picture

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

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.



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.

Azannoth's picture

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

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.

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

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.

Tinky's picture

Orwell would be horrified.

knukles's picture

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

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".

agent default's picture

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

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!

andrewp111's picture

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

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.  

swissaustrian's picture

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

McMolotov's picture

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

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.

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.

Argos's picture

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

Tango in the Blight's picture

Just put all your money in European bank accounts!

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.

Bastiat's picture

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

pauhana's picture

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

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 ?

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.

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.  

Dr. Engali's picture

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

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.

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.



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 ;-)

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.

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