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Santelli On The Reality Of The Rotten Heart Of Europe

Tyler Durden's picture





 

This morning we were treated, once again, to confirmation that Europe is still in the middle of a deepening crisis. No, this was not a reflection of the terrible data, it was Mr. Hollande's insistence that "the crisis is behind us." Luckily we have a foil for this idiocy. Bernard Connolly, author of 'The Rotten Heart of Europe' explains to CNBC's Rick Santelli, "the point is that the union has produced this disaster; and the people who put the disaster in place hail it as a success. are they crazy? If they are, that's pretty disturbing! If they're not crazy, then the question of why they have done it is more disturbing." In a few brief minutes, uninterrupted by an anchor desperate for silver linings, Connolly explains to Santelli when asked of the future, that nothing will change in the short-term, "the potential ways of getting out of the mess are simply unthinkable," to both beggar and chooser, adding that "you have a cycle of deflation, depression, default, more banking crisis, more sovereign debt crisis, and social and political crisis." Simply put, Connolly concludes on social unrest, "I don't see any way of avoiding it."

 

 


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Thu, 05/16/2013 - 15:03 | Link to Comment W T F II
W T F II's picture

Football Hooligans, already organized for mayhem, will lead the charge.

Remember Brixton..? Within 36 hours, fourteen British cities were in flames...!! And those rioters had FOOD...!!

Thu, 05/16/2013 - 15:10 | Link to Comment Stackers
Stackers's picture

Welcome to the Tin Foil Hat Club Mr Connolly

Thu, 05/16/2013 - 15:14 | Link to Comment francis_sawyer
francis_sawyer's picture

Keep cashing those checks paid in 'CheesePopebux' to be the VOICE of CONTROLLED OPPOSITION Rickster...

~~~

I guess every "Oiler" deserves to get paid for their efforts...

Thu, 05/16/2013 - 15:33 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

Slighy off topic ~

So the question is why didn't Santelli go to visit the the HSBC gold vault instead of Pisani, it occurs to me Santelli would have got some good info and then sang like a Canary...:)

Thu, 05/16/2013 - 15:13 | Link to Comment ZerOhead
ZerOhead's picture

"the crisis is behind us."

That's probably what Jack the Ripper's victims thought...

Thu, 05/16/2013 - 15:30 | Link to Comment franzpick
franzpick's picture

"The crisis is behind us, it's on both sides of us, and now again it's in front of us".

We're surrounded by the crisis, and having lost sight of the way out, we're re-doubling our efforts.

Thu, 05/16/2013 - 21:37 | Link to Comment Buck Johnson
Buck Johnson's picture

No kidding.

Thu, 05/16/2013 - 15:05 | Link to Comment Flounder
Flounder's picture

In about 3 months the EURUSD will be below 1.21

Thu, 05/16/2013 - 15:29 | Link to Comment williambanzai7
williambanzai7's picture

THE CRISIS IS OVER

Thu, 05/16/2013 - 17:11 | Link to Comment falak pema
falak pema's picture

that looks like synthetic not real white sable. 

But then its socialist. 

Could he wear that in Mali ? 

Lol, I think he wears it only when he visits Mutti. 

Thu, 05/16/2013 - 15:07 | Link to Comment HulkHogan
HulkHogan's picture

3:00 sell off?

Thu, 05/16/2013 - 15:10 | Link to Comment Ham-bone
Ham-bone's picture

dutifully followed by 3:10 algo driven btfd...

Thu, 05/16/2013 - 15:36 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

PANIC IS FORBIDDEN.  YOU WILL BE COMPENSATED FOR YOUR LOSSES IN THIRTY YEARS AT NOMINAL VALUES.  HAVE A NICE DAY.   

Thu, 05/16/2013 - 15:25 | Link to Comment EARLPEARL
EARLPEARL's picture

what is your thinking concerning selloff at 3???

Thu, 05/16/2013 - 15:29 | Link to Comment Mercury
Mercury's picture

Europe is overdue for a war.

 If they aren't quite up for a war someone will bring one to them.

Thu, 05/16/2013 - 15:13 | Link to Comment doggings
doggings's picture

Santelli's got to get the boot soon, he's a loose truthcannon on the happyheads ship.

Thu, 05/16/2013 - 15:27 | Link to Comment Theta_Burn
Theta_Burn's picture

They pay Dick Santelli extra for his rants,(I admit they have been "truthy" lately) gives CNBC that cutting edge feel.

 

Thu, 05/16/2013 - 15:16 | Link to Comment pine_marten
pine_marten's picture

They have shown their inept white under belly to the world.  The Russians smell blood.

Thu, 05/16/2013 - 15:17 | Link to Comment Shevva
Shevva's picture

The whole pint of the Euro was to create a crisis and then demand that all countrys give up their soverity to a federal Europe (altough they say that they do not mean federal in the USA version).

Time to end democrocy in Europe http://www.independent.co.uk/news/world/europe/franois-hollande-calls-fo...

Thu, 05/16/2013 - 15:20 | Link to Comment Clowns on Acid
Clowns on Acid's picture

you mean to a "feral" Europe don't you ?

Thu, 05/16/2013 - 15:28 | Link to Comment Mercury
Mercury's picture

Today's USA version of federal government isn't the original USA version of federal government but eventually it turned into today's version.

Originally the federal government was simply the united states of America not the all-powerful entity that it is now.

 

Thu, 05/16/2013 - 20:52 | Link to Comment newworldorder
newworldorder's picture

This is the reason that the euro elite and baksters will fight to the death to preserve the EU. They must have total control or eventualy perish.

Thu, 05/16/2013 - 15:18 | Link to Comment aleph0
aleph0's picture

I read his book only 6 months ago ... One Excellent piece of work.
The guy knows his stuff and all the people involved.
IIRC, it came out in 1995-1996 and should have been a lesson to all the imbeciles trying to pull off this heist.

The level of detail was impressive ... basically Polticians squabbling during the ERM days over their FXrates and Interest rates and fighting the Bundesbank most of the time.
FWIW

Thu, 05/16/2013 - 15:41 | Link to Comment nevadan
nevadan's picture

Yes.  And he paid a price for publishing his book. He lost his job and had his book banned in Europe.

http://www.internetional.se/emucon.html

http://www.faber.co.uk/catalog/the-rotten-heart-of-europe/9780571301744

Thu, 05/16/2013 - 22:35 | Link to Comment tooktheredpill
tooktheredpill's picture

was hard to even find his book (libraries / online) until fairly recently.

Thu, 05/16/2013 - 15:18 | Link to Comment Paracelsus
Paracelsus's picture

Uh,Russian ships headed for Limassol as we speak.Three months?  THREE WEEKS...

 

Thu, 05/16/2013 - 15:20 | Link to Comment RSloane
RSloane's picture

You might as well have entitled it "Something the People In the EU Will Never Be Permitted to See".

Thu, 05/16/2013 - 15:22 | Link to Comment fonzannoon
fonzannoon's picture

Hey RSloane you were right about Gross on that other thread. Maybe I am too hard on him? He did say everything you said he did. Maybe I am just jaded. As a matter fact I know I am. This wears on you.

Thu, 05/16/2013 - 15:37 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Maybe this will help. Was worth the 17 mins, to me.

http://sgtreport.com/2013/05/the-truth-about-benghazi-murders-irs-attack...

Thu, 05/16/2013 - 15:43 | Link to Comment RSloane
RSloane's picture

I think being jaded is a collective defining characteristic of most of the people who post on ZH. It makes the MSM and other websites almost intolerable. So in a way, being jaded protects us from falling for the usual bullshit that other people seem to crave. Its like a pre-emptive defense mechanism in a world that is virtual in the sense that the reality we live in is recreated almost daily by people who do not have our best interests at heart. If anything they have disdain for our existence. At this point in our history being jaded is healthy. In the long run it will help you survive.  

Don't worry about Gross. His Insights series is kind of shocking for a hedge fund manager but he's always been an outlier. He still has a lot to answer for though so feel free to take a swing at his head.

Big hugs to you Fonz.

Thu, 05/16/2013 - 19:45 | Link to Comment Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"I think being jaded is a collective defining characteristic of most of the people who post on ZH."

I'd like to think of ZH as a chastity belt worn backwards, if you get my drift!

Thu, 05/16/2013 - 15:23 | Link to Comment Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

"The whole pint of the Euro was to create a crisis and then demand that all countrys give up their soverity to a federal Europe (altough they say that they do not mean federal in the USA version)."

In a nutshell,perfect Mr Shevva,but don't forget the replacement of the white Europeans with third world immigrants as the long term plan of the white holocaust.

 

Thu, 05/16/2013 - 17:09 | Link to Comment falak pema
falak pema's picture

hatched by whom?

White holocaust when Pax Americana rules?

No Genghis Khan running th world today! 

Thu, 05/16/2013 - 19:45 | Link to Comment buyingsterling
buyingsterling's picture

Hatched by white elites. They don't care about skin color, they just want pliable slaves.

Thu, 05/16/2013 - 22:38 | Link to Comment tooktheredpill
tooktheredpill's picture

yep looks like we got some sort of banking union out of the last one (when italian yields went nuts for seemingly no good reason back in 2010). going to take a nastier crisis to get to the next step

Thu, 05/16/2013 - 15:47 | Link to Comment ZerOhead
ZerOhead's picture

"you have a cycle of deflation, depression, default, more banking crisis, more sovereign debt crisis, and social and political crisis."

There is simply no way out of this mess going down the deflationary/economic collapse (TEOTWAWKI) mode... and with global financial institutions so intimately linked to each other through debt and derivates etc. they will likely take the entire planet down with them.

The only solution unfortunately is to print. Primarily for the bankers and financial elite to keep the parasitic financial sector healthy as the remaining assets of the 99% get transfered under forced selling due to economic deleveraging for those with no access to unlimited free credit.

Next massively and desperately into the 'real' economy (through war or new New Deal handouts/programs) by the government to prevent complete collapse and social disintegration. (Besides... what good is owning a private jet if you can't get it fueled anywhere...)

Any way you look at it... the value of all the debt (and the dollar) pumped into the banking sector by the Fed to keep it functioning will be next to worthless at the end of the day. And all the world's  Central Banker's is going to have to do this.

Assets such as farmland and gold on the other hand will be golden...

Thu, 05/16/2013 - 16:39 | Link to Comment Ropingdown
Ropingdown's picture

Nope.  The farmland AND its product will be heavily taxed.  The gold will be confiscated and transactions in gold will be felonies.  No one will be able to accept your gold in payment without large risk.  These policies will be required to keep funding SNAP, SSI, SSDI, and politicians' junkets to Phuket. 

Thu, 05/16/2013 - 17:43 | Link to Comment shovelhead
shovelhead's picture

Lol.

I keep hearing this 'gold trading as felony' stuff.

Selling cannabis has been a felony for 75 years and it's easier for a high school kid to buy than beer. Obviously a large portion of Americans really don't give a fuck about what the govt. says or does if it conflicts with what they want to do.

It's apparent that your faith in Govt. competency is much higher than mine.

Thu, 05/16/2013 - 19:52 | Link to Comment buyingsterling
buyingsterling's picture

It's not wise to judge the breakdown situation in terms of today's attitudes. An inflationary environment and a growing black market - which will both prize metals - will insure that gold and silver are household words long before the oligarchy gets close to banning their use. And what justification would they offer to ban them? It's already clear to a growing mass of people that the oligarchy has crushed the individual and ruined the financial system. Use of gold and silver can't be blamed for that without looking desperate and foolish. Foolishess and desperation are tolerated now, but won't be when average joes have trouble paying their taxes and feeding their families.

Thu, 05/16/2013 - 15:35 | Link to Comment Tombstone
Tombstone's picture

Coming to  a country near you.

Thu, 05/16/2013 - 15:39 | Link to Comment Peter Pan
Peter Pan's picture

Europe is like a contagious disease ward where all the patients are sharing the same set of cutlery unwashed.

Thu, 05/16/2013 - 15:43 | Link to Comment smacker
smacker's picture

 

Bernard Connolly rightly described the EU as "authoritarian and corporatist". He should have dispensed with politeness and come straight out and called them what they are: fascists.

I agree with his analysis of how the unelected EU apparatchiks are overthrowing the Anglo-Saxon model in Europe and replacing it with their own model of non-democratic corporatist socialism. This explains why France kept Britain out of the EU for years until their new model had taken root and Britain would not be able to change it.

Thu, 05/16/2013 - 15:55 | Link to Comment thisandthat
thisandthat's picture

Sorry, what was that? We're kind of really busy here, debating how much superior Benfica was to Chelsea, yesterday, despite scoring fewers goals, and such high value issues, so I'm not really paying attention to minor macroeconomic tidbits.

Thu, 05/16/2013 - 15:59 | Link to Comment Lukacko
Lukacko's picture

AUSTERITY'S DRUG OF CHOICE SISA IS DESTROYING THE LIVES OF ATHENS’S HOMELESS PEOPLE

http://www.vice.com/read/austeritys-drug-of-choice-000757-v20n5

Thu, 05/16/2013 - 16:21 | Link to Comment Go Tribe
Go Tribe's picture

That's nothing compared to what they're doing in Russia.

http://www.independent.co.uk/news/world/europe/krokodil-the-drug-that-ea...

krokodil:

It is a drug for the poor, and its effects are horrific. It was given its reptilian name because its poisonous ingredients quickly turn the skin scaly. Worse follows. Oleg and Sasha have not been using for long, but Oleg has rotting sores on the back of his neck.

"If you miss the vein, that's an abscess straight away," says Sasha. Essentially, they are injecting poison directly into their flesh. One of their friends, in a neighbouring apartment block, is further down the line.

"She won't go to hospital, she just keeps injecting. Her flesh is falling off and she can hardly move anymore," says Sasha. Photographs of late-stage krokodil addicts are disturbing in the extreme. Flesh goes grey and peels away to leave bones exposed. People literally rot to death.

Thu, 05/16/2013 - 16:19 | Link to Comment are we there yet
are we there yet's picture

I think many of those with money in Europe are moving it out and causing the dollar to climb and gold to fall.  This will not last, the true value of the dollar can not levitate indefinately. My bet is Gold now will later be seen as a bargain (if you can buy physical).

Thu, 05/16/2013 - 18:05 | Link to Comment boeing747
boeing747's picture

Santelli becomes pepper spray on cnbc's daily soup.

Thu, 05/16/2013 - 18:09 | Link to Comment shovelhead
shovelhead's picture

I might be a bit slow but can someone please explain to me how Germany became the bad guy in this whole scenario. I can understand why they won't print to bail. (laws make no difference now) I can understand their reticence to make German taxpayers foot the entire bill for bailouts.

What I can't understand is how they held a gun to the heads to the periphery states and forced them to borrow from any and all banks to squander all that money away and get themselves in such a hole in the first place.

I understand how they benefited from trade by loaning at low rates but isn't the borrower culpable for debt they themselves incur?

Are they bad guys to not loan further taxpayers money to countries who are incapable of reforming profligate spending or managing it in any rational fashion or are they bad guys to force structural reforms on govt.s for future money?

Do Germans have Jedi mind powers? Borrow ze money or we shoot ze dog?

Thu, 05/16/2013 - 18:43 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

The E.U., Neofeudalism and the Neocolonial-Financialization Model

http://www.oftwominds.com/blogmay12/EU-neocolonial5-12.html

Thu, 05/16/2013 - 19:47 | Link to Comment shovelhead
shovelhead's picture

Ah,

I get it. According to CHS, the EVIL Germans knew they were dealing with the national equivalent of retarded children and plotted to get them so deep in debt that Germanys taxpayers had to pay to bail them out.

And naturally, the retarded children have no culpability because, well, they're retarded.

And Germany wins because they now hold mountains of debt that will never be repaid but has to funnel even more taxpayer money to keep them from defaulting and collapsing the Euro.

Sounds logical to me. Those Germans ARE clever colonists after all. They're sucking all the valuable debt out of those poor unfortunate dummies and handing them useless Euros.

Thanks.

Fri, 05/17/2013 - 08:56 | Link to Comment Bob Sacamano
Bob Sacamano's picture

You are correct.  Realize on this site, only lenders bear any responsibility for loans.  Borrowers are generally portrayed here as either a) signing loan documents at gun point, or b) as helpless rubes wholly incapable of understanding what they are signing or taking any personal responsibility for their actions.   And typically, if you suggest this, you get labeled as a defender of banks.  

Thu, 05/16/2013 - 19:24 | Link to Comment Bazza McKenzie
Bazza McKenzie's picture

Pretty simple, they didn't need guns when they can just bribe politicians, ultimately with money taken from the locals.

It is not the German public at fault.  It is Merkel, Schauble and other German politicians.  They prevent the ECB from following policies that make sense for other European countries because those policies are not in Germany's interest.  They bribe and suborn politicians in other countries to stay in the euro, while being unwilling to provide transfer payments to support them within that union.

Remember what happened to Papandreou as soon as he mentioned the possibility of holding a referendum on the "bailouts" (all of which have actually been bailouts of German banks at the expense of other country's taxpayers).  Remember Merkel threatened the Irish PM that Ireland would be prevented from selling anything in Europe if he did not force the Irish taxpayers to take over the debts of Irish banks, a large part of those debts being to German banks.

The German people are not benefitting from these policies.  It is a bunch of power crazed, authoritarian politicans.

Remember Gorbachev said he was nonplussed at the fact Europe was intent on recreating the USSR.

Thu, 05/16/2013 - 23:26 | Link to Comment thisandthat
thisandthat's picture

You may find part of the answer here (there's more, much more, and with much worse consequences, too...): http://www.zerohedge.com/news/2013-04-23/saxobank-ceo-we-must-re-evaluat...

Fri, 05/17/2013 - 07:05 | Link to Comment smacker
smacker's picture

 

Agree largely with your comments. Germany's getting hammered partly because it is the only successful economy in the EZ and all the insolvent EZ govts want Germany to pay their debts.

At the same time, a lot of the cheap money lent to the ClubMed countries came from German banks and the German govt never blew the whistle. And a lot of it was spent on German manufactured goods.

For sure, ultimate responsibility for borrowing lies with the borrower (a small fact that socialist govts choose to ignore), but there is also a lender responsibility which German banks/govt chose to ignore.

Thu, 05/16/2013 - 22:37 | Link to Comment are we there yet
are we there yet's picture

Poor Greece, beautiful mountains and countryside, inspiring history, friendly people, terrible tolerance For corruption and politicians that bring home a few pieces of bacon but kill the pig. (Yes play on words)

Thu, 05/16/2013 - 22:58 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Kill the Pig - Bash his Head - Do him IN!

Do NOT follow this link or you will be banned from the site!