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When The Head Of The European Central Bank Lies To Zero Hedge On The Record: Presenting Europe's "Plan Z"

Tyler Durden's picture


Who can possibly forget the following exchange from April 2013 in which a very simple question was asked: so simple that apparently nobody else in the very serious media had ever even considered it.

Scott Solano, DPA: Mr Draghi, I've got a couple of question from the viewers at Zero Hedge, and one of them goes like this: say the situation in Greece or Spain deteriorates even further, and they want to or are forced to step out of the Eurozone, is there a plan in place so that the markets don't basically collapse? Is there some kind of structural system, structural safety net, especially in the area of derivatives? And the second questions is: you spoke earlier about the Emergency Liquidity Assistance, and what would have happened to the ELA in Cyprus, the approximately €10 billion, if the country had decided to leave the Eurozone?


Mario Draghi, ECB: Well you really are asking questions that are so hypothetical that I don't have an answer to them. Well, I may have a partial answer. These questions are formulated by people who vastly underestimate what the Euro means for the Europeans, for the Euro area. They vastly underestimate the amount of political capital that has been invested in the Euro. And so they keep on asking questions like: "If the Euro breaks down, and if a country leaves the Euro, it's not like a sliding door. It's a very important thing. It's a project in the European Union. That's why you have a very hard time asking people like me "what would happened if." No Plan B.


Secondly, I think the ECB has shown its determination to fight any redenomination risk. And OMT with its precise rules and acting within its mandate, is there to this purpose. So that's the answer to the first question.


The second question was about the ELA, but again it's related to "if Cyprus leaves"  and again we don't have that in mind, so.... No Plan B.

The full exchange takes place 57 minutes 45 seconds into the clip below:


While we certainly enjoyed the realization that the fine gentlemen at the ECB read Zero Hedge on a regular basis, we were left wanting because Mario Draghi's response did not seem rational: after all these are the so-called smartest people in the room - for them to have zero contingency plan would be simply idiotic. Which also explained why it had to be Zero Hedge who posed that question to Draghi: apparently the answer was so "clear" to everyone else (as was the preposterous idea that someone would even ask it), that it never dawned on any of the other fawning, institutional "reporters" at the ECB's monthly press conference.

We are happy to report that Zero Hedge is the first media outlet that Mario Draghi has very publicly, officially, and on the record, lied to.

Because as we learned overnight, Europe most certainly had a "plan in place so that the markets don't basically collapse." Only it wasn't as Margio Draghi called it, Plan B.

It was a different letter of the alphabet.

Thanks to the FT's Peter Spiegel we now know that just over a year ago, in order to preserve the myth that Europe's power echelons are so "confident" with the Eurozone staying together they did not even consider a break up as a potential outcome, Draghi explicitly and on the record lied.

Presenting Europe's Plan Z.

What is Plan Z? 

Unbeknown to almost the entire Greek political establishment,  a small group of EU and International Monetary Fund officials had been working clandestinely for months preparing for a collapse of Greece’s banks. Their secret blueprint, known as “Plan Z”, was a detailed script of how to reconstruct Greece’s economic and financial infrastructure if it were to leave the euro.


The plan was drawn up by about two dozen officials in small teams at the European Commission in Brussels, the European Central Bank in Frankfurt and the IMF in Washington. Officials who worked on the previously undisclosed plan insisted it was not a road map to force Greece out of the euro – quite the opposite. “Grexit”, they feared, would wreak havoc in European financial markets, causing bank runs in other teetering eurozone economies and raising questions of which country would be forced out next.


But by early 2012, many of those same officials believed it was irresponsible not to prepare for a Greek exit. “We always said: it’s our aim to keep them inside,” said one participant. “Is the probability zero that they leave? No. If you are on the board of a company and you only have a 10 per cent probability for such an event, you prepare yourself.”

But...  what about all that bullshit about "political capital that has been invested"? Apparently, the "political capital" was not nearly enough, if not in 2013 but over a year earlier, Europe was already preparing to pull the cord.

Here are the highlights of Plan Z's creation:

With most of the world’s economic leadership flying to Los Cabos, Mexico, for the annual Group of 20 summit the same weekend as the Greek vote, a small group of top EU officials stayed at their desks in case Plan Z had to be activated. They were led by Olli Rehn, EU economic commissioner, who cancelled his flight to Mexico to stay in Brussels. Mario Draghi, the European Central Bank chief, remained in Frankfurt and Jean-Claude Juncker, the Luxembourg prime minister who headed the eurogroup of finance ministers, was also on call.


When Grexit was first publicly broached during the November 2011 G20 summit in Cannes – where both Ms Merkel and host Nicolas Sarkozy, the French president, pushed for an in-or-out referendum in Greece – there had been no planning for an outcome in which Greece opted to leave.


Several senior officials said they were stunned Ms Merkel and Mr Sarkozy had aired the idea that the eurozone could be left voluntarily, something that had previously been vigorously denied. Even officials who had worked closely with the two said they were caught unawares.


“I fell off my chair,” said one who had participated in closed-door discussions with both leaders. “For the first time, instead of the word being expunged out of conversations, they were using it. I remember thinking then: we’re heading for trouble now.”

Who was tasked with creating the plan? Primarily, four men, one of whom reported directly to, you guessed it, Mario Draghi.

Work on Plan Z began in earnest in January 2012, largely overseen by four men. Jörg Asmussen, a German who had joined the ECB executive board that month, was assigned by Mr Draghi to head a Grexit task force within the central bank. Thomas Wieser, a long-time Austrian finance ministry official, was appointed permanent head of the “euro working group” of finance ministry deputies and helped co-ordinate work in Brussels with Mr Buti. And Poul Thomsen, a Dane who had headed the IMF’s Greek bailout team since the onset of the crisis, provided input from the fund in Washington.


Work took place in absolute secrecy: one can see why it was paramount for Draghi to lie.

Efforts to keep information from leaking from the small teams around the four men were extreme for the same reason Mr Trichet had banned such planning: public discovery could be enough to cause the kind of panic that would force them to put their plan into action.


According to one participant, no single Plan Z document was ever compiled and no emails were exchanged between participants about their work. “It was totally fire-walled even within [the institutions],” said the official. “Even between the teams there was fire-walling.” A decision was made not to involve Greek officials out of fear of leaks.


Their firewalls worked. During a dinner between José Manuel Barroso, the commission president, and Ms Merkel at the chancellery in Berlin less than two weeks before the Greek vote, Ms Merkel asked for reassurance from Mr Barroso that a plan was in place in case Greece rejected bailout conditions and Grexit ensued.

The firewalls worked so well not even the head of the ECB knew about it.

Sarcasm aside, what is truly pathetic is that while Zero Hedge was doing what it can to expose the truth, a truth which would (and still will because nothing in Europe has been fixed which will promptly be revealed when liquidity tsunami finally ebbs) cost Germans billions if not trillions, none other than German Chancellor Angela Merkel did everything in her power to keep it hidden and a secret from her own voters.

Their firewalls worked. During a dinner between José Manuel Barroso, the commission president, and Ms Merkel at the chancellery in Berlin less than two weeks before the Greek vote, Ms Merkel asked for reassurance from Mr Barroso that a plan was in place in case Greece rejected bailout conditions and Grexit ensued.


Mr Barroso acknowledged the plan’s existence and offered to show it to Ms Merkel but she said his word was enough, according to officials in the room. Under the German system, such documents can be requested by the Bundestag, and senior German officials were concerned they would be obliged to disclose such planning if they had it in writing.

And who knows what sheer chaos would erupt if the people of Europe's "democracies" were to know the actual truth for a change. As for Merkel, the bottom line was clear: "screw what the Germans want and think, the only thing that matters is my legacy"

The political discussion in Berlin surrounding Grexit was the most subjective. Many EU leaders who dealt directly with Ms Merkel say she has less sentimental attachment to the European project than did her Christian Democratic predecessors, such as Helmut Kohl and Konrad Adenauer. EU leaders attribute that to her pre-politics life in communist east Germany, where she moved as an infant and lived into adulthood.


At the same time, several officials said they had begun to sense the weight of history on her shoulders. Did she want to be the German chancellor who “potentially breaks up Europe, even though it’s not clear that would happen – but there’s a possibility?” said one German official


In mid-July, Ms Merkel left for her six-week summer break to weigh the advice. Although the chancellor was undecided, the cacophony of senior German politicians publicly calling for Greece to leave had reached a crescendo. “If Greece no longer meets its requirements, there can be no further payments,” Philipp Rösler, head of Ms Merkel’s junior coalition partner the Free Democratic party, said as he prepared for his own summer holiday. “For me, a Greek exit has long since lost its horrors.”

And then upon returning from vacation, she announced her verdict:

Ultimately, however, it would come down to Ms Merkel herself, and after six weeks of contemplation, the German chancellor returned to Berlin with her verdict. There would be no certainty for the scientist. A cautious politician by nature, she could not abide Grexit if none of her advisers could agree on its consequences.


“You all say: ‘Sorry, finally, we don’t know’; If you don’t know, then I won’t take this risk,” one adviser recalled her saying. “Her sense was: all these people, they might all be idiots, but they don’t know.”

What Merkel did know is that she was a career politician and she had to preserve her job or else the people would learn just how vastly they had been lied to. In other words, kick the can just so Merkel would get reelected the coming year, and her legacy would be preserved. As for Greece and the Eurozone? Well, nothing has been fixed, and Draghi managed to bluff the bond vigilantes under the table for a year or two, but the reality is that since 2012 Europe's debt has soared even more to even greater all time highs. And it is just a matter of time before it all collapses once again. Only this time the cost from Eurozone collapse to the German people will be far, far greater than it would have been even in 2012.

The rest of the story is largely known: details about Greek squabbling, all of which have for now had a happy ending as the epic global chase for yield has allowed even Greece to issue debt in the public markets. It has led the author, Peter Spiegel to state with full confidence that "Never again would Greece threaten the existence of the euro."

Oh but it will. Because as noted above, absolutely nothing that caused the European crisis in the first place has been resolved or fixed: there have been no reforms, no hard decisions, no changes in ruinous behavior - in fact it has all been kicked into the lap of the world's central bankers, from Bernanke to Yellen, to Draghi.

The same Draghi who history now has it, has his first official lie to the media on the record thanks to a blog that just happens to dare ask a question.

And while Merkel and her ilk may do everything in her power to usurp democracy and give power into the hands of a handful of drunk with power bureaucrats, we, hopefully not alone but the outlook is not so good, will continue to expose these central-planning charlatans, these naked emperors drunk on their own hubris, for the liars the really are.

Finally, the next time the Eurozone is on the verge of collapse and Grexit (followed by Spexit, exIt, and whatever) is on the frontburner again, the ECB will no longer have the luxury of lying that plans for a smaller, more compact Eurozone don't exist. Because as it turns out Europe's political capital, unlike Mario Draghi's bullshit, is very much finite.


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Thu, 05/15/2014 - 15:22 | 4763660 firstdivision
firstdivision's picture

How about asking the more important question to Draghi. More along the lines of the structured deals he did with Greece, while under the employment of GS, to hide debt off the books while Greece took on more and more debt

Thu, 05/15/2014 - 15:24 | 4763671 Pladizow
Pladizow's picture

"The last duty of a central banker is to tell the public the truth" - Alan Binder Federal Reserve Board Vice Chairman, Nightly Business Report 1994

Thu, 05/15/2014 - 15:32 | 4763694 Manthong
Manthong's picture

Dear Mr. “GS Whatever It Takes Draghi”,

“They vastly underestimate the amount of political capital that has been invested in the Euro.”

You clowns won’t be the first or the last to invest vast amounts on a bad bet.

Thu, 05/15/2014 - 15:39 | 4763725 stacking12321
stacking12321's picture

dammit, tyler!

no auto-playing videos!

Thu, 05/15/2014 - 15:50 | 4763766 macholatte
macholatte's picture


ZH as a “media outlet”?

And all this time I thought we were just a gaggle of geese.

At least according to Diane Feinstein nobody at ZH could possibly be a real journalist. But media outlet? 


May I never be complete.  May I never be content.  May I never be perfect.  Deliver me, Tyler, from being perfect and complete. 

~Chuck Palahniuk, Fight Club, Chapter 5


Thu, 05/15/2014 - 16:00 | 4763814 ZerOhead
ZerOhead's picture

"When 'it' becomes serious 'you have to lie' "



Thu, 05/15/2014 - 16:00 | 4763822 nope-1004
nope-1004's picture

Draghi = scum.  Scum sucking liar, bankster shill.  Sucking off of society with that "job" being a professional suit of nothingness.


Thu, 05/15/2014 - 16:07 | 4763844 ZerOhead
ZerOhead's picture

" Scum scum scum go back to where you're from..."

(Fletch Lives 1989 KKK clip...)

Thu, 05/15/2014 - 16:09 | 4763857 nope-1004
nope-1004's picture

..... And he's the head of an impotent, immobile, fictitious "governing council".  LMFAO!   What a fcking farce these bankers are.... fairy dust and unicorn bullshit existence.



Thu, 05/15/2014 - 16:13 | 4763883 negative rates
negative rates's picture

So he didn't like plan C and went straight to plan Z. He's not alone.

Thu, 05/15/2014 - 16:19 | 4763920 Headbanger
Headbanger's picture

There is a Plan B... 

It's called a war.

Thu, 05/15/2014 - 16:40 | 4763984 Tao 4 the Show
Tao 4 the Show's picture

Some people may have been thinking that way, but the variables are quickly making the transition to chaos space, that is, unpredictable. Russia and China are mixing it up a bit.

How would you like to be sitting on the Int. Space Station about now watching these guys throwing around sanctions while you are counting on the generosity of the other side for your ticket home?

Thu, 05/15/2014 - 16:48 | 4764002 Headbanger
Headbanger's picture

Oh I dunno... Maybe if the food up there isn't so bad and I had a year supply of good tequila (Don Julio 1942) .. and a hot Russian babe to conduct experiments of how weightlessness affects women's orgasms..

It could work for me.

Then again.. I'd like the peace and quiet too so I'd have to have my "man cave" capsule and a Space Harley when she gets on my nerves..

Thu, 05/15/2014 - 16:54 | 4764025 svayambhu108
svayambhu108's picture

The tailers have a groupie, she adores him

Thu, 05/15/2014 - 22:30 | 4765129 Mistress Raindrop
Mistress Raindrop's picture

Bankers telling lies?  What a shock.  Bitches.

Thu, 05/15/2014 - 17:10 | 4764079 Rusty Shorts
Rusty Shorts's picture

I like the way you think Headbanger.

Thu, 05/15/2014 - 17:07 | 4764069 negative rates
negative rates's picture

No plan B, it's exhausted all it's moral choices and was sold down the river of denial.

Fri, 05/16/2014 - 03:55 | 4765608 new game
new game's picture

plan zz top - rock til ya drop...

Thu, 05/15/2014 - 16:13 | 4763888 HobbyFarmer
HobbyFarmer's picture

I heart Zerohedge.

Thu, 05/15/2014 - 16:14 | 4763874 remain calm
remain calm's picture

"I promise I won't cum in your mouth, trust me, it will never happen". Remain Calm

Thu, 05/15/2014 - 17:19 | 4764107 ziggy59
ziggy59's picture

He and his gang are worse than scum...
Im surprised when you look up EVIL, theres not a directory of all the assholes...

Thu, 05/15/2014 - 19:10 | 4764505 Irwin Fletcher
Irwin Fletcher's picture

ZH search bar + evil = a 71 page directory of scum scum scum

Thu, 05/15/2014 - 19:36 | 4764605 Hughing
Hughing's picture

The most important quote during this Obamanation

Thu, 05/15/2014 - 20:17 | 4764740 Oldwood
Oldwood's picture

I can't believe anyone would be surprised that these asswipes would lie, especially the Tylers. I would be absolutely shocked if they were telling the truth. I think everyone knows they are lying, like we all know we are broke, we just don't want to hear about it and we will reward anyone who can be effective at making us believe the knowing lie. Just like we reward great actors with wealth and fame. "they made us believe!"

Thu, 05/15/2014 - 17:21 | 4764115 Greenskeeper_Carl
Greenskeeper_Carl's picture

No shit. But ZH sure has been on a roll these past few days. Very interesting to read about. Too bad no one that gets more widespread attention will touch any of this stuff, at least not in anything more than a superficial manner.

Thu, 05/15/2014 - 15:40 | 4763729 Buckaroo Banzai
Buckaroo Banzai's picture

This is the kind of shit that happens when ideologues and megalomaniacs try to jam a square peg into a round hole.

No one in power is going to be satisfied until this train goes careering off the rails.

Thu, 05/15/2014 - 16:06 | 4763850 Pairadimes
Pairadimes's picture

Too late. People like Draghi are just pretending to steer so the sheeple don't panic.

Thu, 05/15/2014 - 19:06 | 4764490 old naughty
old naughty's picture

His backup-gear doesn't work and up ahead, the abyss. And he's pretending he can steer...

Thu, 05/15/2014 - 16:12 | 4763869 Save_America1st
Save_America1st's picture

well, when all you've got is a hammer...etc. etc.

This guy is such a douche bag...I couldn't stand to listen to even 5 seconds of this fucker speak. 

That's like one of the sociopath weapons used against normal, good people.  Only scumbags can stand to listen to the shit that comes out of other scumbags face holes.

To good, decent people the scumbags all sound like nails on a fucking chalk board.  That's how they keep us from wanting to be around them or get into politics. 

Keeps the douche bag club exclusively for just the douche bags. 

I don't know how Nigel Farage keeps it up.  I know he's cool and he has to swim in the cess pool of the Euro douche bags every freakin' day.  At least he hammers on them non-stop and bashes them day in and day out with kick-ass speeches.

But sociopath douche bags don't give a fuck.  They just keep on going like fucking cockroaches.

Thu, 05/15/2014 - 17:45 | 4764164 vulcanraven
vulcanraven's picture

Of course they don't give a fuck, these people are PAID to pretend to give a fuck. They put on a show for the rest of us day in and day out in order to prop up the illusion of giving a fuck but we all know the truth... they know who butters their bread so why would they want to make any serious moves that would jeapordize this cush lifestyle they are enjoying at our expense? 

Fuck career politicians.

To quote LOP:

"Roll the fucking guillotines, until then nothing changes." 

Thu, 05/15/2014 - 18:38 | 4764376 ATM
ATM's picture

No, this is all part of the plan to have a federalized Europe with power concentrated in a few people, just like inthe USA.

The Euro problem was designed so that the solution would be to Federalize. That's the goal. Can't have all these small little countries running around with thier own governments, languages and currency. That's a clusterfuck to control.

What you've got to do is create a shitstorm so big that people beg to be government by a large government that will save them.

Fri, 05/16/2014 - 03:00 | 4765574 Ghordius
Ghordius's picture

not quite. the EUR project is a pet of us moderate confederalists, who want to keep all the sovereign countries running around with their national governments, their national armies, their national police forces, etc... in confederate structures based on treaties, and the EU Council as "master of the treaties"

eu federalists are often opposed to the EUR project. eu federalists often moan that it might get in the way of their ambitions, and put too much emphasis on confederated structures like the ECB

Thu, 05/15/2014 - 15:34 | 4763710 fauxhammer
fauxhammer's picture

"Its a project in the European Union"


I've never felt safe in the projects

Thu, 05/15/2014 - 18:49 | 4764423 CrashisOptimistic
CrashisOptimistic's picture

The real issue in this story is Greece's elections were largely determined by the theme of "NO ALTERNATIVE".

If you refuse the bailout terms all life ends in Greece.  So you must vote New Democracy/Pasok.

Clearly there was a fallback plan.  All along.

Thu, 05/15/2014 - 19:19 | 4764543 lakecity55
lakecity55's picture

!!! And, they had a Plan to create Zombie Nations if all elese failed!!!

Thu, 05/15/2014 - 15:25 | 4763676 free_lunch
Thu, 05/15/2014 - 15:32 | 4763702 Jaspergers
Jaspergers's picture

Oh yeah, I remember the 57:57 DAFUQ guy lol

Thu, 05/15/2014 - 16:01 | 4763823 williambanzai7
williambanzai7's picture

Thu, 05/15/2014 - 16:14 | 4763892 negative rates
negative rates's picture

Turns on a dime and gives YOU nine cents change.

Thu, 05/15/2014 - 17:17 | 4764100 Miss Expectations
Miss Expectations's picture

Here's a good one.

How to Improve Your Posing:

(Apologies to Les)

Thu, 05/15/2014 - 17:19 | 4764109 Miss Expectations
Miss Expectations's picture


Thu, 05/15/2014 - 18:58 | 4764427 messystateofaffairs
messystateofaffairs's picture

Banzai these are sociopaths you are spoofing, they don't get the sarcasm, they really believe they are superman. If they see this art it might encourage them. They're in bad enought shape already and we have to bear the consequences.

Thu, 05/15/2014 - 16:30 | 4763954 cocky roach
cocky roach's picture

Well that question certainly disturbed the otherwise constant flow of BS coming from the prince's mouth.

Great article Tylers. 

Thu, 05/15/2014 - 16:50 | 4764013 Jumbotron
Jumbotron's picture

My reply to the post "From Rotchschild to Koch Industries: Meet the People who "fix" the price of gold." earlier on Zerohedge applies to this one as well.......


"Thanks to all the Tylers.  You have now proven to me beyond a metaphysical doubt I am a masochist.  Everytime I read some new expose by you guys (gals) I scream...."NO MORE....I CAN'T TAKE IT.....I WILL NEVER COME HERE AGAIN.....I DON'T NEED TO READ ANY MORE ABOUT THIS.....WHAT DIFFERENCE DOES IT MAKE NOW  !!!!!!!!!!!!!

.......and then I come back for more.

I'm such a little bitch.


Here's my new safety word........"CHRISTMAS"......ouch.....I SAID CHRISTMAS.....DAMMIT !!!!!"


Christmas......Christmas.......CHRISTMAS  !!!!!!    DAMMIT !!!!!!!


Thu, 05/15/2014 - 19:26 | 4764566 Atomizer
Atomizer's picture

Once your head is pulled out of the sand. We’ll give you water & food to eat. We might slap you around a bit and shout,” get the fuck up, we have work to do!”

Get over denying what you don’t want to accept as reality, I say this advice in kind words.. Make a difference, the problem is not going a way.

Thu, 05/15/2014 - 20:59 | 4764858 anonnn
anonnn's picture

Mario Draghi 's early "knowledge" of EU's birthing is likely the of the spoonfed variety and the spoon was held by his mentors, or  perhaps "minders" is here apt.

The video link below is an incisive primer of the EU's parentage.  While frontman Draghi is experienced and slick, this backgrounder establishes his roots and public-relations skills as paid mouthpeice.  As well as vonRompey et al.

Thu, 05/15/2014 - 22:03 | 4765039 anonnn
anonnn's picture

PS  There's a thread that runs from WW2 thru Marshall Plan, Dulles bros., McGeorge Bundy, Ford Foundation , 3-letter intel groups and neatly ties into Eu supernational structures thar became today's European Union .

Or it is all malevolent coinkydink.

Thu, 05/15/2014 - 15:23 | 4763664 free_lunch
free_lunch's picture

Draghi...GS FED=ECB=FED=ECB  ??


EU take over:


Thu, 05/15/2014 - 15:25 | 4763679 Tyler Durden
Tyler Durden's picture

Which is funny because that article was stolen from here.

Thu, 05/15/2014 - 15:41 | 4763730 free_lunch
free_lunch's picture

Steal this one:


Includes: how the EU constitution was rejected by the european people, and how it was repacked and rebranded as the Lissabon treaty so it could be passed without referenda. That's democracy EU style!

Thu, 05/15/2014 - 16:16 | 4763903 negative rates
negative rates's picture

Here we make delegates out of the living dead.

Thu, 05/15/2014 - 16:30 | 4763952 Its_the_economy...
Its_the_economy_stupid's picture

thanks for this

Thu, 05/15/2014 - 15:42 | 4763736 Alea Iactaest
Alea Iactaest's picture


Worth resurrecting a name from the past when you put out a hard-hitting piece worthy of being listed in the Tylers' Hall of Fame/Shame.

Thu, 05/15/2014 - 15:49 | 4763767 Stoploss
Stoploss's picture

The important takeaway is we are all Zerohedge, they can take away the access, or internet, but that will never ever kill the spirit, simply strengthen it.

Thu, 05/15/2014 - 18:04 | 4764230 janus
janus's picture

banner day, my brother.  you deserve some major kudos.

i can smell their fear all the way up here!

just the other day, janus was -- for no particular reason and by a complete stanger -- given a bottle of 2004 brut rose from this fine maker of champagne 

and, damn it all, janus wasted it on his wife for mother's day...should'a sent it to the ZH nerve center for some celebratory toasts.  nevertheless, cheers TD!!!

let's all take a moment to pause, reflect and meditate on past success and, more than anything, future progress:

guess dez bitchez thought Operation Mayhem was just a juvenile and frustrated 'reaction' to this world's putrefaction.  i encourage them all to keep underestimating us -- we are not only out to destroy, we will take all that they have and 'reallocate' it to more productive ends.

dear mario,

no, you won't fool the children of the revolution,




Thu, 05/15/2014 - 16:10 | 4763872 Tsunami Wave
Tsunami Wave's picture

Fuck the Daily Kos.  For stealing from ZH without credit.  Also because they're a group of political fanatics whom only think in terms of blue/progressive, where any opposing idea they come across is 'extreme-far right'.

Thu, 05/15/2014 - 19:23 | 4764551 lakecity55
lakecity55's picture

From what I read over there, they appear to be Academic Reds who did too many drugs....

Thu, 05/15/2014 - 15:24 | 4763670 TheFreeLance
TheFreeLance's picture

"Old news."

That's the narrative when a lie from a couple years ago becomes obvious.

Thu, 05/15/2014 - 15:49 | 4763761 Rainman
Rainman's picture

" Now that you have health insurance, you have nothing to worry about. "

Thu, 05/15/2014 - 17:32 | 4764133 Greenskeeper_Carl
Greenskeeper_Carl's picture

Ya, very true. But I'm pretty sure ZH does not actually have the honor of being the first media outlet this guy has lied to. That honor belongs to the first reporter that asked in the first question at his first press conference....

Thu, 05/15/2014 - 15:24 | 4763672 Charles Wilson
Charles Wilson's picture

Mebbe we can take up a collection to get Draghi a new rug...


Thu, 05/15/2014 - 15:24 | 4763675 Sudden Debt
Sudden Debt's picture

plan Z like in WWZ?

Thu, 05/15/2014 - 19:25 | 4764564 lakecity55
lakecity55's picture

When I was in the Service, we had an "OP PLAN ZOMBIE," no joke.
It may still be classified, so I will not say anything else.

Thu, 05/15/2014 - 15:27 | 4763677 Jack Sheet
Jack Sheet's picture

"Mario Draghi is a model central banker"
James G Ricktards

Edit : WTF is Bernank doing at the bottom L of the photo group?

Thu, 05/15/2014 - 15:36 | 4763715 El Vaquero
El Vaquero's picture

Actually, he is a model central banker.  You just have the wrong model in mind;)

Thu, 05/15/2014 - 15:50 | 4763777 free_lunch
free_lunch's picture
‘Monarchs of Money’: How central bankers became the new ruling class

Quietly, without much public fuss or discussion, a new ruling class has risen in the richer nations. These men and women are unelected and tend to shun the publicity hogged by the politicians with whom they co-exist.

They are the world’s central bankers. Every six weeks or so, they gather in Basel, Switzerland, for secret discussions and, to an extent at least, they act in concert. The decisions that emerge from those meetings affect the entire world. And yet the broad public has a dim understanding, if any, of the job they do. In fact, these individuals now wield at least as much influence over the lives of ordinary citizens as prime ministers and presidents.

The tool they have used to change the world so profoundly is one they alone possess: creating money out of thin air. There is an economic term for this: quantitative easing. More colloquially, it’s called printing money. Since the great economic meltdown in 2008, these central bankers have probably saved the world’s economy from collapse, and dragged it into the unknown at the same time. The amounts they have created are so vast as to be almost incomprehensible — trillions of dollars in pounds and euros, among other currencies.

. . . [T]here are two big concerns with what this new central banker elite has done. One is that no one really understands the consequences of pumping such vast amounts of money into the world economy. It’s already distorted the prices of certain assets, and some fear hyperinflation or market crashes are inevitable (the subject of tomorrow’s column). The other is that it’s caused a massive shift in wealth, from savers to borrowers, and is taking money out of the pockets of almost everyone approaching or at retirement age.

. . . Most of that generation grew up believing that if you save and exercise prudence that you will earn at least a modest return on your hard-earned money to keep you comfortable in your old age, perhaps along with a pension. But the money-printing orgy of the last five years looks to have shot that notion to smithereens. Very deliberately, the central bankers have punished savers, pushing interest rates so low that any truly safe investment — and older people are always advised to play it safe — yields a negative return when inflation is factored in.

. . . The plain fact. . . is that central bank- and government-imposed solutions to disasters caused by irresponsible, greedy, foolish behaviour are almost always carried out on the backs of the virtuous.


new short documentary from the CBC titled The Monarchs of Money explains in hair-raising and gut-punching detail how  “The world’s central banks have printed unimaginable amounts of money in recent years. Neil Macdonald explores what this means for the global economy and for your financial well-being.”:

Thu, 05/15/2014 - 19:28 | 4764572 lakecity55
lakecity55's picture

If you click on it, it says it is "not available."

Thu, 05/15/2014 - 15:25 | 4763678 I_Am_
I_Am_'s picture

viva zh......

Thu, 05/15/2014 - 15:38 | 4763711 GVB
GVB's picture

It's funny, when he drops the word "zerohedge" all the girls behind him start giggling..

Thu, 05/15/2014 - 15:55 | 4763682 khakuda
khakuda's picture

Nice work ZH, though I think we have all known they have been lying all along...we're not printing money/monetizing debt, inflation is dangerously low, etc.

These guys are piloting a poorly made airliner which is going down.  The last thing they are going to do is tell the passengers the truth.

Thu, 05/15/2014 - 15:57 | 4763800 Bay of Pigs
Bay of Pigs's picture

Put your head between your legs bitchez...and brace for impact.

Thu, 05/15/2014 - 21:10 | 4764892 DirkDiggler11
DirkDiggler11's picture

Another plane crash ? For fuck's sake, CNN STILL hasn't found the last one that went down !

Thu, 05/15/2014 - 15:27 | 4763683 SheepDog-One
SheepDog-One's picture

For fucks sakes.....just roll out the guillotines already!

Thu, 05/15/2014 - 15:29 | 4763690 AccreditedEYE
AccreditedEYE's picture

THIS is why I read ZH.... fantastic work.

Fri, 05/16/2014 - 00:17 | 4765393 Sauerkraut-Opinion
Sauerkraut-Opinion's picture

We shouldn't call the Euro-Responsibles liars. - because they don't deny that they have to lie in their job. Former Eurogroup chief and Premier of Luxembourg Jean-Claude Juncker in 2013 highly official explained:

"When it becomes serious, you have to lie" (watch 01:40)

And Juncker did it well - sometimes observed by cameras - the video shows another example: Denying that there will be a important meeting between Draghi, five European finance ministers and him in Brussels cameras where filming just that.... ;-)

Thu, 05/15/2014 - 15:31 | 4763695 ptoemmes
ptoemmes's picture

It is noteworthy when someone in a "high place" is (eventually) is caught lying about something direcly or indirectly brought up (asked) by you.

On the other hand, lying seems to be part of the DNA of the sociopathic elite.

Moreover, there does not appear to be any direct-personal repercussions for lying or getting caught.

Very off topic, but speaking of officials lying... invest at least an hour listening to the background interview behind FrontLine's "United States of Secrets" for Diane Roark.


Thu, 05/15/2014 - 15:57 | 4763799 Cathartes Aura
Cathartes Aura's picture

lol :   "journalists:  GGreenWald, The Intercept"

guess who signed a movie deal for the narrative. . .

Michael G. Wilson and Barbara Broccoli from EON Productions, the makers of the James Bond spy film franchise, will produce the film. No announcements on casting, directing or release date have been made.


the "narrative" is a fucking comedy, who knew.

Thu, 05/15/2014 - 15:32 | 4763697 Kaiser Sousa
Kaiser Sousa's picture

Bankers r sociopaths...

Sociopaths r pathological liars...

thus - follow the logic....

Thu, 05/15/2014 - 15:33 | 4763703 free_lunch
free_lunch's picture

If a banker or a politician lies and scams, from a technical point of view, can we call it lying?

Water is wet

Fish swim

Dogs bark

Birds fly

Politicians ...

Bankers ...


Fri, 05/16/2014 - 04:09 | 4765613 Mabussur
Mabussur's picture

Politicians rape

Bankers plunder

Thu, 05/15/2014 - 15:33 | 4763706 OC Sure
OC Sure's picture




"And while Merkel and her ilk may do everything in her power to usurp democracy and give power into the hands of a handful of drunk with power bureaucrats"

The modern tyrant does not enslave you by bringing brute force to your doorstep.

Instead, the modern method of tyranny is counterfeiting and its sole purpose is for those who produce nothing to maintain their livelihoods by stealing from everyone who produces anything.

Thu, 05/15/2014 - 15:34 | 4763707 Bangin7GramRocks
Bangin7GramRocks's picture

Pretty awesome from their point of view. They don't even print money and the problems are contained by mere words. The financial system can be controlled and shaped by words only. Shows what bullshit the whole system is!

Thu, 05/15/2014 - 15:34 | 4763709 ebworthen
ebworthen's picture

The Emperor has no clothes.

Thu, 05/15/2014 - 15:44 | 4763746 dontgoforit
dontgoforit's picture

He ain't even got a shoe to shine.

Thu, 05/15/2014 - 16:17 | 4763912 negative rates
negative rates's picture

Or a slave to polish the fender.

Thu, 05/15/2014 - 15:35 | 4763713 sschu
sschu's picture

Gosh, say it isn't so.  Central Bankers misrepresent the truth?  

Good work making it known to those that still have a small amount of faith in the system.

But I have not believed a word from any "leader" for a long time.  And for good reason.

Where is the MSM calling these guys out?


Thu, 05/15/2014 - 15:51 | 4763776 Toolshed
Toolshed's picture

"Where is the MSM calling these guys out?"

Ummmmm, I guess the problem might be the fact that the MSM outlets are now all owned by the criminal scum financing the lying vermin politician's re-election campaigns. I thought that was common ZH readers anyway.

Thu, 05/15/2014 - 15:38 | 4763718 fonzannoon
fonzannoon's picture

I hope everyone btfd. Especially small caps.

Thu, 05/15/2014 - 15:39 | 4763721 nosoeawe
nosoeawe's picture

we all know policians and bankers lie. did we some how think they lie less if they have an accent? the euro trash liars lie just as much as our beloved domestic politcal terrorists? btw, just putting it out there, yellen is a filthy, flea ridden, ill bred, white haired liar. the sneaky little cunt bag is only a few years away from dying. that means i'm only a few years from pissing on this piece of dog shit's grave

Thu, 05/15/2014 - 15:40 | 4763726 NaiLib
NaiLib's picture


Thu, 05/15/2014 - 15:42 | 4763734 walküre
walküre's picture

The world is run by fucking (central) bankers. Not entrepreneurs or producers, no its run by parasites who think they're doing the world a favor by indebting ever person, every company and every institution.

That is the problem and until we get rid of ALL central banking and all major too big to fail banks, there will not freedom be and there will never be economic growh.

FYI, turn that fucking video feed off. I don't care to hear any of these leeches speak and share their "wisdom". They're all motherfucking cocksucking sons of bitches and had the world by the balls for far too long.

Banks need to start burning and bankers need to be hung.

End of story.

Thu, 05/15/2014 - 15:59 | 4763815 free_lunch
free_lunch's picture

The only way to do that is to upgrade the average IQ with 50 points minimal. And teach them how to avoid MSM and do their own research..

So there is a chanche of one in a trillion (being optimistic) that your dream will come true in the next 10 000 years.. Not going to happen..

Thu, 05/15/2014 - 16:50 | 4764012 walküre
walküre's picture

I think more and more people can relate how TPTB just snap their finger and create money from thin air to afford their lifestyles and pass the crumbs to the few .gov leeches who are put in place to support the status quo.

90% of people see that their paycheques are buying them less and less. Provided they even have paycheques.

They understand that the banks screwed up and were made whole to continue their gig. That's out there even across some MSM channels. Netflix has some documentaries regarding this subject. Neftlix is pretty MSM in my opinion.

When people go hungry or can't afford to drive around as much as they'd like, they start feeling stuck and miserable. That number is growing due to food and fuel inflation.


Thu, 05/15/2014 - 17:16 | 4764071 free_lunch
free_lunch's picture

"When people go hungry or can't afford to drive around as much as they'd like, they start feeling stuck and miserable. That number is growing due to food and fuel inflation."

Then they will get angry................. and their anger will be redirected by the ministry of thruth in such ways, that the people will blame puppets, the wrong people, the poor, the ... anyone but the real troublemakers... So in best case, new puppets will be installed..

It's like the Eurocrisis, all it did was enforcing the ones that caused the trouble with more power mechanisms (ESM, Banking Union, Bail out's, Bail in's, Austerity (on the wrong end), increasing taxes(only for the productive),lowering taxes (for the big corp.), lowering wages, lowering pensions, torpedo social security(where people payed heavy taxes and social security payments for all their working life)  anti-protest laws, very soon the improved NAFTA: TTIP

While bringing the whole poor Eastern block into the union and opening borders so they can increase unemployment to pressure wages in the west)... and this is just the beginning...

Soon all Europeans will be Greeks or worse... except the members of the club.

It's a big club... and you and I are not in it..

Thu, 05/15/2014 - 18:17 | 4764287 walküre
walküre's picture

True. The Eurocrisis was an eye opener. Neither Greeks, nor Spaniards nor Italians torched the banks and tarred and feathered the bankers before hanging them up by their balls. I guess they will say that we have evolved past that.

Not quite though.

The public is wussified and more engaged in taking selfies or documenting what everyone else is doing in a riot, than actually band together and get it done.

Let's make our own club.

Thu, 05/15/2014 - 18:38 | 4764358 free_lunch
free_lunch's picture

To have a club that matters, the club would have to find a way to take the right to create the nations money out of thin air from (the people) private bankers..
Without that it won't last 5 minutes..

I'm afraid, all we can do is rant and accept that things will not get better. All other options will get you eliminated some way or the other. Just try to survive in this corrupt dishonest world without hurting others.

Thu, 05/15/2014 - 19:32 | 4764592 lakecity55
lakecity55's picture

World Run by Central Bankers=Central Banks=Communism (Collectivism, name your flavor).

Thu, 05/15/2014 - 15:47 | 4763760 medium giraffe
medium giraffe's picture

'Political capital'.  Can I buy food with that?

Thu, 05/15/2014 - 16:03 | 4763835 kaiserhoff
kaiserhoff's picture

So solly,

  only bitcoin;)

Thu, 05/15/2014 - 16:21 | 4763928 813kml
813kml's picture

It might get you some cake.

Thu, 05/15/2014 - 17:19 | 4764112 FeralSerf
FeralSerf's picture

It could probably get you a blow job from the girl under the desk.

Thu, 05/15/2014 - 15:50 | 4763774 Youri Carma
Youri Carma's picture

 ...yada, yada, yada ..., the guy just muppets his agenda, 2% inflation BS and all.

He admits that we had an economic decline but predicts gold at the end of the rainbow. Same ol, same ol ...

Thu, 05/15/2014 - 16:02 | 4763831 free_lunch
free_lunch's picture

2% inflation? The real inflation is much higher and why call it inflation? It is just a tax with a misguiding name  -->

Thu, 05/15/2014 - 15:50 | 4763775 Duc888
Duc888's picture



Bankers lie?  I'm shocked I tell ya!  Shocked!  These are supposed to be honest people, the pillars of the community, just like politicians.



Thu, 05/15/2014 - 15:52 | 4763784 kurt
kurt's picture

Traditionally Tyrants offer NO PLAN B

Good bye Democracy

Thu, 05/15/2014 - 16:09 | 4763849 free_lunch
free_lunch's picture

The EU is the most democratic institution on earth!!  These damn documentary makers are just lying to sell books:

Thu, 05/15/2014 - 16:30 | 4763953 Rainman
Rainman's picture

Tyrant Plan B is ALWAYS to escape !

Thu, 05/15/2014 - 17:43 | 4764160 grekko
grekko's picture

But Plan A is to have it passed into law that they are not held responsible in any way.  The new "Untouchables" (until the pitchforks and torches hit the streets).

Thu, 05/15/2014 - 15:55 | 4763794 Wizard of Ozman
Wizard of Ozman's picture

I am just Really glad the Fed doesn't pull shit like this. Fricken Europeanans.

Thu, 05/15/2014 - 16:00 | 4763819 Atomizer
Atomizer's picture

You heard it, the policy makers write the law, not other people.

Great job Tyler.

Thu, 05/15/2014 - 16:01 | 4763826 Ariadne
Ariadne's picture

Draghi has been channeling Ed Wood. Next: Draghi in pink cashmere leotard. 

Thu, 05/15/2014 - 16:03 | 4763834 Snidley Whipsnae
Snidley Whipsnae's picture


Here is a recent Jim Rickards interview conducted at the World Bank.

Rickards goes over much of the same material that he has covered in many of his 'book promotion' tour talks... But, near the end he adds a new wrinkle.

Rickards says that if the dollar loses confidence of the people that the likely next step is the IMF SDR as a replacement currency for global trade, deficit settlements, etc... 

But Rickards adds that if the SDR succeeds that it 'will only be because no one or very few understand it (the SDR)'. Rickards goes on to say that if the SDR fails to work then the central banks will be 'forced back to a gold standard'. So, once again, the world will be asked to use a currency backed by nothing, the SDR. Rickards also mentions that if the dollar fails it will still be used as a local currency and goes into some detail about how the US police are being equipped to handle social unrest.

On topic... Rickards continues to believe that the European Union is sound and their currency will not fail... his thoughts, not mine.

Thu, 05/15/2014 - 16:15 | 4763890 Tsunami Wave
Tsunami Wave's picture

Read his 2nd book 'The Death of Money' where he explains this further.  He says the IMF will be the only bank after the FED fails (Becuase they have the cleanest balance sheet, compared to pretty much everyone else) who can bail them out, while facing trouble from the Chinese and Russians.  However, he is oddly pro-euro.. not sure why exactly.

Thu, 05/15/2014 - 17:20 | 4764114 WillyGroper
WillyGroper's picture

Probably the same reason he parrots his 911 beliefs.

Ultimate insider.

Truth interspersed with lies.

Thu, 05/15/2014 - 21:33 | 4764969 Snidley Whipsnae
Snidley Whipsnae's picture

Tsunami Wave...

"He says the IMF will be the only bank after the FED fails (Becuase they have the cleanest balance sheet,"

The BRICS are in the process of setting up their own 'development' bank... So the IMF will not be the only choice.

I suspect that the BRICS bank will have some form of gold backing... 

Thu, 05/15/2014 - 22:54 | 4765209 Yen Cross
Yen Cross's picture

 How's that cardboard desk treating you ?

Fri, 05/16/2014 - 07:08 | 4765713 Jack Sheet
Jack Sheet's picture

that "clean balance sheet" statement is total horseshit.

Thu, 05/15/2014 - 16:17 | 4763911 Atomizer
Atomizer's picture

SDR is dead on arrival.


Thu, 05/15/2014 - 22:43 | 4765170 Radical Marijuana
Radical Marijuana's picture

SDR is more legalized fraud.

Is that a DOA solution? Yes!

The currently established systems were built on the basis of some human beings being able to get away with enforcing frauds against other human beings. The SDR "solution" is merely proposing more of the same, done at a even higher level!

Switching over to any different kind of fiat reserve currency, as well as the nostalgic nonsense of going back to commodity backed forms of money, are pathetically inadequate, except inside of the context of taking for granted that the human systems will be able to continue to operate through some people being able to coerce others, while the resulting collective deliberate ignorance that engenders does not matter.

All of the biggest banks have become criminally insane monsters. They are excellent examples of being able to operate through a fraudulent monetary system which takes no responsibility for the murder systems that back that up. The deeper truth is that there are no genuinely better resolutions for human problems than some better human murder systems, operating better death controls, and that is why our real problems are trillions of times worse than what most goofball financial articles ever address.

Since established "economics" is based on the fraud of making money out of nothing, that is necessarily a strange social fact, because mainstream "economics" gets away with deliberately ignoring that central fact. Since the idea that money can be made out of nothing contradicts the basic laws of nature, (except when seen as an enforced fraud, which "economics" deliberately ignores), it is not possible to rationally reconcile that kind of "economics" with ecology. The only way to do that requires recognizing that money is measurement backed by murder, which the SDR "solution" obviously does not do!

The SDR "solution" is based on the international banksters being able to create a world government based on even more totally globalized systems of lies, backed by violence, which notion deliberately ignores the problem that the enforcement never makes the fraud become true, but only makes the whole civilization become even more psychotic than it was before. The paradoxical problems of getting the vast majority of people to continue to act like Zombie Sheeple will tested to their limits by bumping up the banksters' game to even more globalized levels of privatized money-as-debt, such as SDR, becoming the fundamental financial fraud that everyone else continues to be forced to accept.

Thu, 05/15/2014 - 16:04 | 4763840 Miss Expectations
Miss Expectations's picture

Why Plan Z? 

Zero Hedge reference or SpongeBob:


Thu, 05/15/2014 - 22:14 | 4765075 Radical Marijuana
Radical Marijuana's picture

An amusingly appropriate link, thanks.

Thu, 05/15/2014 - 16:12 | 4763881 agstacks
agstacks's picture

He didn't lie.  He said, "No Plan B".

He didn't mention anything about there being, "No Plan Z"


Thu, 05/15/2014 - 16:14 | 4763897 free_lunch
free_lunch's picture

That's like they're not printing money (it's all digital)


(and it isn't even real money)

Thu, 05/15/2014 - 16:30 | 4763958 Ser Bronn
Ser Bronn's picture

There was no plan a and is no plan b,c,d,e,f,g,h,i,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y only Plan Z. The one that will allow me, and my few clients to further fuck the EU and maximize my profits

Thu, 05/15/2014 - 16:36 | 4763976 DerdyBulls
DerdyBulls's picture

And, uh, why is this news?

Thu, 05/15/2014 - 16:48 | 4764006 Luckhasit
Luckhasit's picture

Consider this as my snarky comment, to be preserved unto the annuals of history for when it's get ugly, i can throw it in your face like i told you so.

It's gonna end bad.  

Thu, 05/15/2014 - 16:49 | 4764008 mfavorit
mfavorit's picture

One needs no plan B when they are 100% certain (right Dr. Bernanke?)

Thu, 05/15/2014 - 16:50 | 4764010 no more banksters
no more banksters's picture

... and another proof that Greece has been sold to banksters - latest:

Thu, 05/15/2014 - 16:59 | 4764044 orangegeek
orangegeek's picture

That babe behind the reporter asking the question at 57m is a total "girl next door".


Me likey!!!

Thu, 05/15/2014 - 17:01 | 4764050 Perfecthedge
Perfecthedge's picture

Again, the only thing that comes to mind about Mario Draghi (hey, I hope you read this you miserable cunt!) is to hang him by his balls and to whip lash him "Saudi Style".  That man needs a good lashing.  We can find enough volunteers, whose Lifes he and his gangster buddies have destroyed.


Thu, 05/15/2014 - 21:08 | 4764887 TNTARG
TNTARG's picture

Draghi is an employee, the asshole who is gonna be mocked along History; meanwhile the real masters celebrate their parties far away from demonstrations and molotovs.

They pay good money for Draghi's soul and for him to lie to ZH, fucking europeans workers and things of the sort.

Thu, 05/15/2014 - 17:02 | 4764055 Ghordius
Ghordius's picture

"zero contingency plan would be simply idiotic" correct

answering to ZH "Yes, we have a secret plan Z, 'cause it would be idiotic not to have contingency plans for all possible scenarios, and no, we don't think we'll need it" would have been a better answer... and idiotic, too

Thu, 05/15/2014 - 18:33 | 4764161 falak pema
falak pema's picture

There has been a very good film summarising the euro crisis presented on french TV which traces the Euro crisis; notably the moment when the Greek scam became clear in 2010; and the panic and discord that it created at the Merkel Sarko summit of Deauville in 2011. It is the incomprehension of Merkel at Deauville that created the Euro zone crisis. As she said to achieve a compromise with Sarko --who did not want to Eject a country from Eurozone; aka Greece :


That crazy decision, which was the opposite to what should have happened as DSK the incumbent of IMF pleaded at that time; aka --you IMPOSE "hair cuts" on PAST DEBTS to CLEAN OUT your old debts, BUT YOU DON'T TELL MONEY MARKETS THAT FUTURE DEBTS TO CLUB Med sovereigns will not have ECB back up--.

Its this crazy Merkel-Sarko deal of May 2011  that caused the fact that Spain/Portugal/Italy and Ireland were pulled into the crisis as the markets panicked and all Europe was in flames. If the Euro bank had guaranteed the Greek debt at the beginning and imposed hair cuts on old debt that Greek crisis would have been PEA NUTS! 

Six months later, as the ZH article showed at Cannes in Nov 2011, in presence of Obammy, Merkel caved in; Draghi was appointed and BOTH Berlu and Papandreu  got Sacked by the Merkel-Sarko combine, with Obammy/Geithner/IMF back up.

So plan Z did exist until Draghi came into power and could say to the markets "we'll do whatever it takes at the ECB to support the sovereign debts"; aka the ECB will cross the monetary Rubicon whatever Article 123 of Treaty says! 

So as you say Plan Z was contingency plan BEFORE Draghi became king and after the Cannes summit which sealed the fate of Italy's reluctance to play along debt austerity à la Mario Monti and before Greece was totally fleeced by IMF/Mutti brigade which was the minimal condition imposed by Merkel when she had her arm twisted by Obammy/Squid resulting  in takeover of ECB by the Draghi parachuting into Frankfurt's Eurobank.

PS : On a broader scale this Euro zone crisis is not over for many reasons. Most of them due to bad political decisions since the beginning of this Euro creation which was a "political" compromise balance between Mitterrand and Kohl; for France to accept German reunfication in exchange for bringing Europe under a Euro DM type money, to PROTECT it from USD hegemony rampant since BW revoke and petrodollar dictat.

These tipping point dates are, just as reminder :

1° To have not created fiscal harmony and some alignment of man power price/productivity between North and South Zones in the period 1998-2002 prior to Euro launch.

2° To have not created Euro bonding type mechanisms if member nations respected conditions of 1° (which go beyond the Maastricht rules of 1992), preventing private bank runs from going systemic.

3° TO not have immediately stopped the Banksta Casino in  2009, after Lehman collapse, at meeting in UK; instead of letting banks keep playing their old games and letting the fiscal paradise scams continue to launder corporate and oligarchy money. Five years later its much worse, both private and state money lines corrupted.

4° To have increased the fire in Eurozone during the 2010 2011 period, as shown at Deauville.

Sadly Merkel and Sarko along with Obammy, FED and TARP are the real culprits of this private sector Oligarchy scam that has become a sovereign scam thanks to Political crony culpability and cowardly dilly dallying. Bankstas and Politicians all in the same bag.


Fri, 05/16/2014 - 01:52 | 4764368 trader1
trader1's picture


EU is evolving though.  watch out for may 25.

Fri, 05/16/2014 - 07:15 | 4765720 Ghordius
Ghordius's picture

yup. btw, Draghi was appointed after Berlusconi convinced Sarkozy. a small point that is missing from the French narrative of the things

Thu, 05/15/2014 - 17:19 | 4764110 hot sauce technician
hot sauce technician's picture

>>>In mid-July, Ms Merkel left for her six-week summer break…

Six week summer break?!?! I can only fantasize about that... I'm lucky if I can get six days.

These fckers in power not only get to make decisions that influence the everyday lives of millions of their subj - I mean citizens, but get to pimp it out on multiple-week paid vacations.

The only choice anyone who values his freedom has left is to simply OPT OUT of this bankster economy. Regardless of your political /religious beliefs. The big bank model is the default model for economies worldwide, whether in Kenya, Korea or Kurdistan.

The next phase of human evolution will entail this system's disintegration as it's already been successfully installed to varying degrees worldwide. All that's left for it is to fail; and sociopaths like Draghi and friends are unwittingly bringing us much closer to this requisite collapse with their drunken financial gymnastics. Bright side! Selah.

Thu, 05/15/2014 - 17:22 | 4764117 monopoly
monopoly's picture

Well done Zero Hedge. Kudos from all of us. The truth. Thank you.

Thu, 05/15/2014 - 17:27 | 4764129 Son of Captain Nemo
Son of Captain Nemo's picture

"Who was tasked with creating the plan? Primarily, four men, one of whom reported directly to, you guessed it, Mario Draghi.... The firewalls worked so well not even the head of the ECB knew about it."...

So much for individual Nation ownership and Greece's "stake" in "Plan Z" of the EU, which has been at the heart of the problems of it's inidividual members since Day 1!

"As for Merkel, the bottom line was clear: "screw what the Germans want and think, the only thing that matters is my legacy"...

Isn't this the equivalent of Victoria Nuland's Fu@&theEU???  And like Americans where is the outrage from the German people now that they know who she is and who she actually works for???

Last but not least...

Now for "Plan F"... Which goes back to the Anglo-American Israeli contingent to start WWIII so they can all find a deep hole in the ground to hide in till the coast is clear, or should I say what's left of the coast!...


Tyler(s) you guys are unsurpassed in everything you do! 

Many thanks for this and all the other amazing past research in what hides beneath the rocks in the financial World!  Let's hope that we can stop "Plan F" before it comes to fruition!!!

Thu, 05/15/2014 - 17:35 | 4764139 free_lunch
Thu, 05/15/2014 - 17:40 | 4764153 Son of Captain Nemo
Son of Captain Nemo's picture

Great information.  Much obliged F_L!

Thu, 05/15/2014 - 17:41 | 4764156 Took Red Pill
Took Red Pill's picture

Plan Z for Zero Hedge. Nice work again, Tylers

Thu, 05/15/2014 - 17:56 | 4764207 The Abstraction...
The Abstraction of Justice's picture

Ask why he died, because Draghi lied.

Thu, 05/15/2014 - 18:13 | 4764269 DeliciousSteak
DeliciousSteak's picture

Yes, politicians and bankers lie. It's shocking, I know. But did someone really believe they didn't have a contingency plan?

Thu, 05/15/2014 - 18:21 | 4764307 Cacete de Ouro
Cacete de Ouro's picture

Who pays all these chair warmers in Brussels and Frankfurt and IMF in DC.

I mean how do they justify the salaries. What exactly do they contribute to economic expansion and quality of life and spiritual improvement?

Fri, 05/16/2014 - 01:53 | 4764357 trader1
trader1's picture

this is one of the greatest pieces on ZH i've read in months if not years.

however, the eu / ez will not collapse.  the dollar may not either, but i have less faith in the future of pax americana.  i digress...

the next system will be re-architected (if not already done) before the current one would completely collapse.  

it's going to be glorious

Thu, 05/15/2014 - 18:46 | 4764408 Herdee
Herdee's picture

All the elite with their big wooden noses.Funny the noses keep getting longer as the insolvent German banks continually adjust the derivatives programs in the hope that somehow inflation in the U.S. and Japan is going to rescue them and everybody else if they can just keep borrowing and swapping.Just stall for time is the line of thinking.

Thu, 05/15/2014 - 18:58 | 4764467 Atomizer
Atomizer's picture

Draghi might want to dress up in a pink tutu and click his high heels three times.

Korn- Earache My Eye

Thu, 05/15/2014 - 19:14 | 4764522 messystateofaffairs
messystateofaffairs's picture

I think this is the one you were after

Thu, 05/15/2014 - 20:46 | 4764817 Atomizer
Atomizer's picture

Correct. The old Korn Follow the leaders had this hidden track.

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