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Alan Greenspan: "Greece Will Leave The Eurozone" And "There Is No Way That I Can Conceive Of The Euro Continuing"
Every two weeks or so on average, we ask ourselves: why do central bankers only tell the truth after they have quit their post (rhetorically, of course). The last time it was the BOE's former head Mervyn King, who said that "more monetary stimulus will not help the world economy return to strong growth." This took place long after the BOE, under his watch, unleashed its own QE back in the early days of the great financial crisis. Another example: back in November, the Fed's own former head, the person who single-handedly unleashed the great moderation and led to the current terminal financial state where the global economy bounces from one bubble to another even bigger bubble or else everything implodes, Alan Greenspan said "Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It."
It was another statement by the maestro that has caught the world's attention, this time opining on Greece, when he told BBC Radio's the World This Weekend that "Greece will leave the Eurozone. I don't see that it helps Greece to be in the Euro, and I certainly don't see that it helps the rest of the Eurozone. It's just a matter of time before everyone recognizes that parting is the best strategy.... At this stage I don't see any people who are willing to put up the funds for Greece... All the cards are being held by the members of the Eurozone." Naturally, this is just what anyone with a functioning frontal lobe (which immediatley excludes all tenured economists) would have said 5 years ago.
And it wasn't just Greece that the Maestro decided to throw under the revisionist history bus: he took a stabe at the Eurozone itself. "The problem is that there there is no way that I can conceive of the euro of continuing, unless and until all of the members of eurozone become politically integrated - actually even just fiscally integrated won't do it."
"Take a look at the Maastricht treaty. There is no indication of any conceivable way of unwinding the Euro and that was done purposefully but that' doesn't mean that the markets won't pull them apart and indeed I would suspect that what's allowing the big surge to go on, or will go on, in ECB expansion is what Draghi said originally when he came up with the so-called OMT, which meant lending to anybody for any occasion. If that doesn't work: if numbers start to borrow under the OMT facility and something goes wrong, what happens then? And if you're talking about a crisis - that is a crisis. Greece leaving the Eurozone is miniscule compared to that as an issue."
His conclusion: "short of a political Union, I find it very difficult to foresee the Euro holding together in its current form. It probably could get a union of Germany, Austria, Luxembourg, the Netherlands, Finland for example. But not south Europe."
With anti-Europe, anti-austerity, anti-Merkel political parties storming to the forefront in most peripheral European nations, Greenspan is right for once.
Which is not to say he said anything that these pages haven't covered extensively in the past. Recall this exchange at the April 2013 ECB meeting:
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.
So much for the European "Union" then? Worse, it looks like Europe's political capital just ran out and Zero Hedge, even if it is filled with people "vastly underestimate the amount of political capital that has been invested in the Euro," can't wait to ask Mario Draghi the logical follow-up question in an upcoming ECB press conference following the Grexit: "what happened?"
Full interview with Greenspan below.
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B 4 I believe what Greenspan says I need to hear from Larry Summers, Bobby Rubin, Joe Cassano, Lord Blankfein, Ace Greenberg, The Brothers Weinstein, Bernie Madoff, Jimmy Cayne, Dick Fuld, Fran Drescher, and Neil Patrick Harris.
Ace took a dirt nap.
Greenspan, no doubt , is either neutral or outright short Eurodollars in his actual account or other accounts that he controls but are not in his name.
Well done Jews, you completely destroyed Europe, America is almost there.....while you build Israel into a major powerhouse by using our military and money.... Pretty soon you'll get your ww3 that'll really destroy and ruin the major powers and ol poor little israel will be the last man standing and world superpower. Job well done you fuckin kikes.
another useless eater LOL
Amerika will start WWIII along with Russia, ignorance is bliss for you
Unix --
If the US starts WWIII, it will not be "along with Russia." Russia has no interest in such nonsense. The blame will fall squarely and strictly on our shoulders.
Oh my, all the blame on us? Putin didn't annex Crimea illegally did he? Noooooo
Got news for ya, it takes two to tango.
“They stole land in Palestine. And this Synagogue of Satan knows that the end of their time of rule is up. The jig is up.”
Louis Farrakhan, 2012
Calypso Louey, how credible LMAO!! That piece of mulsim work is a race baiter, worse than Al Sharptongue and Jethe Jackthong, not to mention Oblahblah.
You gotta do better than that, what a weak arguement.
"There you go again (me)"
The first task Greenspan was given after Reagan appointed him was the destruction of the Global economy. In the early 90's he and several other tools of the TPTB in Congress arranged for a lot moar subprime mortgages, which were facilitated by low interest rates and no, if any, down payments
The banks and Fannie and Freddie began to build an enormous portfolio of mortgages of the least expensive housing in America. Because they were first time buyers, they were biding against each other for the cheapest houses on the market, which demand cause those house to rise in price a little.
The bubble was born.
The sellers, the owners of the cheapest houses, getting a little more when they sold, began to buy better houses than they had just sold.
Rinse and repeat.
Eventually, it pushed up real estate and moved to the solid middle class America and the MSM told the world American realestate was more valuable. But what we all knew was a housing bubble (which would end when the last first time house buyer bought the last cheap house) was not the REAL DEAL.
There was a Coldwell Banker sign in front of every other house. Prices were going to the Moon. You'd be able to flip your new house before any raise in interest rates readjusted your mortgage payment.
Then the the large banks put together CDOs and MBS, but nobody noticed because their real estate agents were bringing motivated buyers at 2pm and there were windows to be washed and mantelpieces to be dusted.
One day on the 35th page there was a small item that Glass-Steagall had been repealed., which was shortly followed by an army of salesmen who had graduated from MIT, Harvard and Wharton, travelling to the four corners of the globe with briefcases full of billion dollar tranches of MBS.
Operation Barbarogreenspanosa was under way.
We heard figures ranging from $65 trillion to over $100 trillion being sold.
This was about when Hubbert's second prediction of global peak oil(2005) was coming to the fore. And also when shale oil was being produced @150 bpd, by enormous numbers of wells, which would interrupt PO for a decade or three.
Why Did the US want to Create a Global Depression?
Basically for two reasons:
The US had scammed the world about the purity and profit of Original Capitalism for over 200 years. And it had proved itself quite nicely.
But the sages and the seers saw some fissures occurring and widening. And they warned TPTB that diminishing returns had taken hold in Capitalism and would worsen with the growing population of the world.
The second reason was the diminishment of the existence of the amount of crude oil under the surface of the earth. The military needed most of what was left.
How could an army, seeing the disappearance of an army's most important resource, work only to get what it needed and ignore what its successor army would need in 100 years?
A depression. A contraction of demand. And a war with those who objected.!
And don't forget terrorism
Greece leaving the euro? Why not. Going back to the drachma? No way Jose. Even if Greece is not in the euro, the Greeks are going to use euros.
Sell everything...quickly! A parody of the real EU...
https://www.youtube.com/watch?v=vnuAh3esdpE
Amerika's would be even worse a parody!
I thought so too, until Alan Greenspan said it.
I am a fairly young guy in a good healthy condition, but when Mario Draghi said these words:
"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."
I swear my blood pressure rose to dangerously high levals. Since then I can't even listen to that piece of shit flapping his mouth. I just hate him so very much.
"We have to pass it to find out what's in it..."
Why did they pick someone who looks so obviously evil as Draghi?
When Alan Greenteeth speaks, people listen. I hope the old dying NWO and Bilderberg types like Henry Kissinger and George Soros listen well to what he just said and that it hastens them into their crypts and thereafter haunts them for eternity.
Varoufakis and his Prime Minister Alexis Tsipras received friendly words but no support for debt re-negotiation from their Italian counterparts when they visited Rome last week. But Varoufakis said things were different behind the scenes.
"Italian officials, I can't tell you from which big institution, approached me to tell me they backed us but they can't tell the truth because Italy also risks bankruptcy and they are afraid of the reaction from Germany," he said.
"Let's face it, Italy's debt situation is unsustainable," he added.
Italy's public debt is the largest in the euro zone after Greece's and Italian bond yields surged in 2011 at the height of the euro zone crisis. They have since fallen steeply and have so far come under little pressure from the renewed tensions in Greece.
Varoufakis said his government would propose a "new deal" for Europe like the one enacted in the United States in the 1930s. This would involve the European Investment Bank investing ten times as much as it has so far, Varoufakis said.
If Europe CONTINUES to pursue counterproductive austerity policies the only people who will benefit will be "those who hate European democracy," he said, citing the Golden Dawn party in Greece, the National Front in France and the United Kingdon Independence Party in Britain....
Please note, those who are euroskeptics : Varoufakis and Syriza are NO FRIENDS of Farage and Le Pen.
Europeans politicians shall fight to their last breath to protect the EURO and they will never permit a country to leave. But the entire illusion shall collapse as soon as the leaders of one country are bold enough to brake away. As soon as the market mechanisms reward the move the Euro will face a "rapid unscheduled disintegration". The leaders of Cyprus were not bold enough. The leaders of Greece - well, we shall see.
There is no plan B, because the Mutual Assured Destruction (MAD) theory has been the cornerstone of EU thinking. The EU bureaucrats hoped to delay any problems, until a new generation Europeans could once again vote, and this time approve fiscal and political union.
What if everyone follows Greece's example and doesn't want the banks only product (debt)?
With the world saturated in debt, it is time to realise that banks are a one trick pony.
They issue loans (debt) and collect interest on these loans (debt).
For a company that produces real products, like Apple, once the market is saturated with the iPhone 5, you bring out the iPhone 6 and the whole cycle starts again.
In a world saturated with Debt 1, the banks need to come up with a new product, Debt 2.
I don’t think it exists.
What an effing mess!
Whose idea was this anyway?
Didn't Linsey Williams elite friend say the Euro will fail, then everything else wihtin 3 weeks.. get out of paper he said...save your dinner table he said. Is this it?
More drama, that's what it's all about these days...Hollywood has come to reality. Theatrics.
As the renowned economist Ludwig von Mises warned us decades ago: "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." [Human Action, Regnery, 1966, p. 572.]
Wealth cannot be printed! Goldman Suck$ agent of doom, Draghi knows that so-called "political integration" aka TTIP aka jackboot rule from Washing town WILL not happen no matter what NATO slash Fiat destruction the zero 1 % banksters threaten to unleash on the Russians and Uruppeans through Merca's backdoor Nulandistan in the rump state of ex Ukraine. It looks like the Debaltsevo Ukie rout might be the wake up call required to get the attention of the pedophile clowns in the BrUSsels politburo before they drown with the Mercan albatross lashed around their scrawny necks.
The 500 Euro note has become the standard in the international drug trade.
Therefore the Euro still has a leg to stand on.
If I was Greenspan you would have never heard of me again once Bernanke took his job. I'd be on the beach in South America somewhere until further notice. Does he think he is liked?
Hey jew boy, I don't see the Dollar surviving....
It seems that not enough political capital has been invested. There is neither economic nor political union in Europe. It is easier, at this stage, to leave the euro than to maintain it.
Yep. The Maastricht treaty was it. All of Southern Europe has violated it. It's a dead letter. The Euro is dead.
What he also saying.... Short integration. Meaning short of every country in Europe ceasing to exist and just having Europe as a central government. This is one world government speak. This was ALWAYS about control. Don't forget it.
Why would anyone give a shot what Greenspan has to say? Just another asshole JOOOOOOOOO.
Sounds like the Drahgi / ECB strategy is Denial... The Euro is too important to consider any alternantive outcome, pass the Fairy dust.
A Political Union. That is the end game.
New World Order. Maybe you have heard of it.
Draghi has asked that the Euro paper currency, in the higher valued denominations, have the corners trimmed. This will demonstrate that the austerity is, in fact, not mindless nor has it been in vain. The Greeks will receive those corners to spend, or to rebundle and offer on the bond market to teachers and Norwegian municipalities.