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"We All Lost"

Tyler Durden's picture


Submitted by Tim Price via Sovereign Man blog,

“I say to all those who bet against Greece and against Europe: you lost and Greece won. You lost and Europe won.”


- Jean-Claude Juncker, former prime minister of Luxembourg and president of the Eurogroup of EU Finance Ministers, 2014

He used aspirin, matches and rocket-powered roller skates.

He also variously deployed an anvil, a weather balloon, a giant kite kit, nitro-glycerine, triple strength fortified leg muscle vitamins, and dehydrated boulders (just add water !).

When these failed to work, he tried triple strength battleship steel armour plate, a jet bike and an outboard steamroller.

Undaunted, he also put to use bumblebees, tornado seeds, a jet-propelled pogo stick, a giant rubber band, and five miles of railroad track.

Later innovations, invariably supplied by the ACME Corporation, included earthquake pills and an instant icicle-maker.

But it was all to no avail. Wile E. Coyote never managed to catch the Road Runner.

Today’s central bankers have a far more elusive prey. They are trying to ignite inflation, and like Wile E. Coyote they are willing to use just about anything in their toolbox in pursuit of their objective.

Quantitative easing, the process by which a central bank purchases financial assets with ex nihilo money, thereby injecting liquidity into the banking system, was first tried – briefly – in early 2001 by the Bank of Japan, which had run out of conventional tools in driving interest rates down to zero during the previous two years.

The first iteration of QE was widely regarded as a failure; the neo-Keynesians, who cannot come across an economy without calling for government stimulus for it, claim that it failed because it was not pursued aggressively enough.

Why inflation? Why pursue a policy that explicitly punishes the prudent saver to the benefit of the foolishly overindebted (whether the latter category comprises a government, corporation or individual is somewhat moot) ?

Because without inflation, western governments, and the western banking system whose interests have fused with the interests of those governments, will fail.

Pensioners, savers, and investors on fixed incomes are all collateral damage in this war – governments’ first and in fact sole priority is to erode their debt mountain through the stealth taxes of inflation and currency debasement.

Tony Deden of Edelweiss Holdings has written as follows:

Mr Bernanke [and now his successor at the Fed, Janet Yellen] is wilfully trying to debase the dollar. He will succeed. His colleagues at the ECB purport to be against such measures. This will not last long for they, too, will resort to coin-clipping. They too will fail. Today is Greece and Ireland. Tomorrow is Spain. Next month is Britain, France and a host of others. The following month is China, Japan, America and so forth. It may take years but the whole culture of credit and debt will fail. This is reality. We just do not know how or when.”

Anticipating that ‘when’ is particularly troublesome, for asset managers and their clients alike.

Dealing with the ‘how’, and attempting to protect capital during the process, is difficult enough.

Fund managers Incrementum have nicely described the problem as the interplay between the forces of deflation (the free market’s natural response to this crisis) and inflation (the knee-jerk policy response of governments and their client central banks), and in turn compared this interplay to the permanent pressure of two opposing tectonic plates.

Currency is being created (monetary inflation) by central banks. But currency is also being destroyed (monetary deflation) by deleveraging within the commercial banking system.

The problem would be less acute if Europe’s banks had gone to the bother of restructuring after the original earthquake hit in 2008. They did not.

We operate within a debt-based monetary system, so every time a bank calls in a loan or a borrower pays back a loan, money disappears from the financial system.

Trying to balance these opposing forces, the task of every central banker, is going to become increasingly difficult. At some point it may become impossible. Even with jet-propelled ACME roller skates.

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Mon, 06/02/2014 - 16:54 | 4817993 Manthong
Manthong's picture

Just wait until that torpedo turns around like on HUNT FOR RED OCTOBER.

Mon, 06/02/2014 - 16:56 | 4818004 Pladizow
Pladizow's picture

Pardon me Mr. Juncker - how many beaches, islands, infrastructure assets was Greece forced to sell?

Mon, 06/02/2014 - 17:28 | 4818102 john39
john39's picture

>>force to sell

and what other horrors await the people of Greece in coming years?

Mon, 06/02/2014 - 17:37 | 4818122 Bay of Pigs
Bay of Pigs's picture

Moar debt, inflation, unemployment and starvation?

Mon, 06/02/2014 - 17:37 | 4818126 williambanzai7
williambanzai7's picture

Mon, 06/02/2014 - 18:32 | 4818283 flacon
flacon's picture

Saggy tits on a central banker. What does it mean?

Mon, 06/02/2014 - 16:57 | 4818008 seek
seek's picture

Wile E. Coyote did, indeed, catch the road runner.

Mon, 06/02/2014 - 17:08 | 4818038 Dick Buttkiss
Dick Buttkiss's picture


Mon, 06/02/2014 - 17:22 | 4818086 DoChenRollingBearing
DoChenRollingBearing's picture

Most excellent link, seek!

Tue, 06/03/2014 - 15:45 | 4821011 Radical Marijuana
Radical Marijuana's picture

Yeah, I concur, thanks for that link! I always find it nostalgic to watch old Looney Tunes shows.

Of the many Wile E. Coyote Moments, I liked the one at the 1:25 mark of this (which has the episode framed in a way to get around copyright infringement, I suppose):


The Solid Tin Coyote

Coyote steps around the back of a bizarre mirror, only to then discover he has walked off the cliff! Which reminds one of the absurdities of 'markets,' where confidence in financial frauds was needed in order to nevertheless keep 'markets' working!

We DO live in a Bizarro Mirror World, which is so totally dominated by enforced frauds, that everything is pretty well totally backwards. Like in that first episode that seek linked us to, Coyote runs back and forth through a telescopic device that ends up shrinking him, while the Road Runner becomes relatively huge.


The central feature of the political processes by which "we all lost" was the application of the methods of organized crime to make governments and maintain those governments as the biggest form of organized crime, controlled by the best organized gangs of criminals, the biggest gangsters, the banksters, who became the epitome of legalized lies, backed by legalized violence, who were legally allowed to counterfeit the public "money" supply, out of nothing as debts, which FRAUDS ARE ENFORCED BY GOVERNMENTS!

While it becomes easy to understand how the whole world ended up going through those processes of debt slavery, towards numbers which became debt insanities, it is PRACTICALLY IMPOSSIBLE to get enough people to go through enough of the necessary deeper understanding of that problem.

The winding paradoxes are due to the biggest bullies' bullshit social stories so totally dominating our culture that those also almost totally dominate the controlled opposition too! Those winding paradoxes are the result first of the banksters being able to project their legalized lies, promoted by legalized violence, in ways that most people tend to never understand that banksters ARE the biggest gangsters. Furthermore, those paradoxes wind up even more because their controlled opposition ALSO wants to promote the same false fundamental dichotomies, and related impossible ideals, which propose bogus "solutions," that depend upon the government miraculously NOT being organized crime, controlled by the best organized gang of criminals.

The language that we use to describe economic activities is so profoundly and totally BACKWARDS, that almost nobody recognizes how utterly BACKWARDS that language has become. That is why absurd cartoons tend to provide good metaphors for social realities, since social realities are built on huge lies, backed up by lots of violence, which are superficially absurd, although they still make plenty of sense at deeper levels.

The ONLY connections between the laws of man and the laws of nature are the abilities to back up symbolic lies with physical violence. That is manifested in ways that "money" is made out of nothing, and can disappear back to nothing: "We operate within a debt-based monetary system, so every time a bank calls in a loan or a borrower pays back a loan, money disappears from the financial system."

On the surface, that is an utterly absurd social system, which flatly contradicts the basic laws of nature, and therefore, makes any rational reconciliation of the economic systems with the surrounding ecological systems impossible. However, at the deeper levels, those absurd frauds are enforced, and therefore become socially "successful" for those who benefit (in the short-term) from that system of enforced frauds, despite society as a whole constantly becoming more insane, the more those enforced frauds are "successful."

When maintaining the false fundamental dichotomy between government versus organized crime, as the basis for any idealized "solutions" to the problems caused by the runaway triumphs of enforced frauds, those "solutions" always necessarily backfire badly, because they are still based on understanding the world BACKWARDS!

In the real world, there would be a natural ecological system in which the coyote and road runner would be embedded. Understanding human ecology and political economy is extremely problematic because those are based on the history of War Kings morphing into the Fraud Kings, the banksters. Thus, the successful history of warfare was based on deceits, and the successful history of finance was based on frauds. However, the degree of the SUCCESS of those deceits and frauds, within the context of human civilization, has made them become almost totally dominant, which includes that fundamentally BACKWARDS ideas about human realities are what dominate the controlled opposition to the banksters.

The biggest bullies' bullshit dominates the philosophy of science, just as much as it dominates human ecology and political economy. Therefore, civilization IS currently operated in ways which make as much sense as Looney Tunes shows did, or even less!

Mon, 06/02/2014 - 17:00 | 4818014 Sticky Wicket
Sticky Wicket's picture

Didn't the ECB have a plan in place in case Greece left the EU? So the ECB lost, which means Europe lost. So Europe lost and Europe won. That's a rigged game right there.

Mon, 06/02/2014 - 17:35 | 4818115 pods
pods's picture

"Everyone has a plan till they get punched in the fathe."

(Okay, I ad libbed the accent at the end.)


Mon, 06/02/2014 - 17:02 | 4818020 tradebot
tradebot's picture

It ain't over til the fat lady sings

Mon, 06/02/2014 - 17:19 | 4818053 rwl160
rwl160's picture

wile e coyote not only catches the road runner  he eats him.      https://www.youtube.com/watch?v=zFDmcDW9uwc

Mon, 06/02/2014 - 17:21 | 4818083 huggy_in_london
huggy_in_london's picture

Classic!!!!  That is great!!!!  Thanks for posting!

Mon, 06/02/2014 - 17:13 | 4818054 ebworthen
ebworthen's picture


Mon, 06/02/2014 - 17:15 | 4818058 Peter Pan
Peter Pan's picture

What he really should have said was that Greece bet on Europe and lost.

Mon, 06/02/2014 - 17:16 | 4818071 youngman
youngman's picture

It aint over until Greece pays back all that debt...

Mon, 06/02/2014 - 17:21 | 4818082 Peter Pan
Peter Pan's picture

You and I will not be around to see that happen unless they cryogenically freeze us.

Mon, 06/02/2014 - 18:53 | 4818355 youngman
youngman's picture

I try to keep myself pretty well pickeled at all times...self embalming so to speak..burp

Mon, 06/02/2014 - 21:25 | 4818737 old naughty
old naughty's picture

Even with them processes you may still not see it happen.

Mon, 06/02/2014 - 18:06 | 4818202 Al Huxley
Al Huxley's picture

Greece's long and illustrious history of default pretty much guarantees that ain't gonna happen.  They probably can't believe the EU's still playing 'pretend you're solvent' with them.

Mon, 06/02/2014 - 17:18 | 4818073 Marco
Marco's picture

If you asked a pensioner if he'd rather have inflating prices or a bankrupt pension fund I think he'd pick the first. You creative destruction people are deeply disingenious when you talk about savers IMO.

Mon, 06/02/2014 - 17:31 | 4818107 ebworthen
ebworthen's picture

This reminds me of the National Lampoon cover that read "If you don't buy this magazine we'll kill this dog.":



Mon, 06/02/2014 - 18:04 | 4818197 Al Huxley
Al Huxley's picture

He'd probably actually prefer a properly funded pension fund and a non-criminal banking system that wasn't engaged in fulltime rape and pillage of the society it was making its parasitical living off of.

Mon, 06/02/2014 - 20:48 | 4818650 Greenskeeper_Carl
Greenskeeper_Carl's picture

Marco- another 3 year member who has posted a dozen comments in 3 years, starting last month. Things that make you go hmmmm

Tue, 06/03/2014 - 13:47 | 4820662 Marco
Marco's picture

Arithmetic isn't your strong point I see.

Mon, 06/02/2014 - 18:09 | 4818211 Oldwood
Oldwood's picture

A continuing downward spiral completely enabled by people choosing the lesser of evils. They come to us time and again with a choice, lose you life or a limb. Before long we find ourselves no more than a stump, with them prowling for our organs next. We could have just told them to fuck off on their first try but we were convinced we could survive just losing one limb, rather than chancing a fight that we might have lost. We just never recognize our own surrender until its too late. Waiting until all of your choices are gone is too late. It is too late for many of us.

Mon, 06/02/2014 - 18:34 | 4818301 Al Huxley
Al Huxley's picture

Of course there eventually comes a time when a critical mass no longer has any stake in preserving the system, and then fighting becomes an option.  But then they/we will just fight each other, or some pre-selected scapegoat - chances are excellent that the perpetrators of the crime will escape as they have been for hundreds of years.

Mon, 06/02/2014 - 18:37 | 4818305 Dr. Engali
Dr. Engali's picture

I don't know about you, but the moment the uncivil war breaks out I'm seeking out some bankers.

Mon, 06/02/2014 - 18:59 | 4818375 are we there yet
are we there yet's picture

All you will find are innocent bank tellers. The real bankers are more hidden and protected than Obamas birth cirtificate.

Mon, 06/02/2014 - 19:31 | 4818470 Overfed
Overfed's picture

And politicians.

Mon, 06/02/2014 - 18:48 | 4818341 Oldwood
Oldwood's picture

Its just that most of us find our positions weakened over time. Less money, less income, and especially less freedoms. By the time we actually start to fight back it will be a much harder and ugly fight, and our chances will be substantially reduced I fear.

Tue, 06/03/2014 - 13:53 | 4820682 Marco
Marco's picture

That's not my point ... my point is that the "savers" are going to be the people fucked over most in a deflationary depression, trying to pretend otherwise is just disingenious.

Bankruptcy is admittedly very efficient at whiping out debt ... but you can't whipe out debt without whiping out savings.

Tue, 06/03/2014 - 17:55 | 4821351 Radical Marijuana
Radical Marijuana's picture

Generally speaking, the younger and poorer you are, the more you are being screwed by the established systems you were born into. Young poor people are being lied to, cheated and robbed by the established political systems orders of magnitude worse than older people!

Mon, 06/02/2014 - 18:19 | 4818247 Dr. Engali
Dr. Engali's picture

Properly funded pensions that didn't promise more than they could ever deliver would be the appropriate solution.

Mon, 06/02/2014 - 17:27 | 4818101 the wet spot
the wet spot's picture

The Original Report falsely claimed "We all Lost" but has since been revised to "Winning".  Yay.

Mon, 06/02/2014 - 18:17 | 4818108 Dr. Engali
Dr. Engali's picture

Deflation is a myth kind of like Santa Claus and Tyler Durden. Prices everywhere are going up, and oil over $100 is it going to help.

Mon, 06/02/2014 - 18:28 | 4818272 Oldwood
Oldwood's picture

Deflation is only occurring on the income side of the equation, and anything you might want to sell. If you need it or want it, its going up!

Mon, 06/02/2014 - 17:34 | 4818109 jubber
jubber's picture

European Indexes are only up because of this relentless US futures ramp which has dragged them up with it day after day, end of story, there has been no miraculous turn around, just European Algos HAVING to follow US Algos.

Does he really think the DAX would be just shy of 10k if the Dow was at 13000?, No chance, the same for the IBEX FTSEMIB, etc etc

Mon, 06/02/2014 - 18:13 | 4818224 Oldwood
Oldwood's picture

European indexes are up for the same reason as American indexes are up....the idiocy of greed over reality or fundamentals. Making the fast buck has never had stronger appeal, with the least amount of apparent downside risk. The criminals running this show cannot afford to it to crash...just yet, at least until every asset is pledged or leveraged by this bomb waiting to detonate.

Mon, 06/02/2014 - 17:34 | 4818112 yogibear
yogibear's picture

Who listens to someone with the last name of Juncker?

France and it's leaders are a joke. The Russians kicked your butt. Hitler took you down in no time.

Soon enough the French will all be pointing to Mecca on their prayer rugs. Another lost Euro society.

Mon, 06/02/2014 - 18:57 | 4818364 Backtable
Backtable's picture

The French have always been there when they needed us.

Mon, 06/02/2014 - 17:35 | 4818118 Bay of Pigs
Bay of Pigs's picture

Good thing Spain is in good shape too...


Mon, 06/02/2014 - 17:35 | 4818119 Billy O'Naire
Billy O'Naire's picture

'When things get serious, you have to lie...'

 - Jean-Claude Juncker.

Mon, 06/02/2014 - 17:58 | 4818180 Peter Pan
Peter Pan's picture

In which case they will always be lying.

Mon, 06/02/2014 - 18:01 | 4818188 Al Huxley
Al Huxley's picture

So let's see what they've tried - Reducing interest rates to 0, printing money and giving it to the banks, and talking about being willing to print money and give it to the banks.  Compared to Wiley Coyote's list, that's pretty fucking lame.  Maybe they need to contact ACME.

Mon, 06/02/2014 - 18:26 | 4818260 MrFailSauce
MrFailSauce's picture

"Why inflation? Why pursue a policy that explicitly punishes the prudent saver to the benefit of the foolishly overindebted (whether the latter category comprises a government, corporation or individual is somewhat moot) ?"

Because many prices are downward sticky.  How can you say all of this without even mentioning sticky prices?  You may not agree with the idea, but that is why FRBs want inflation.  You could at least do it the disservice of a caricatured strawman.

Mon, 06/02/2014 - 18:33 | 4818293 Oldwood
Oldwood's picture

Because in a criminal interprise engaing in theft, the saver is the only one with real wealth to steal. They have always known they would not get blood from a stone. They have only enabled this game to draw the real wealth in so it can be "clipped". Borrow against your home with a HELOC and use it to buy stocks if you want to find out what I mean.

Mon, 06/02/2014 - 18:33 | 4818291 GoldenDonuts
GoldenDonuts's picture

Greece can and will never pay their debt. It will end when the populace realize this and demand that their government admit it, leave the Euro and start again.  That is when it will end.  Oh and don't count on owning your little piece of heaven on their beaches when that happens.

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