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Willem "Gold-Is-A-6000-Year-Bubble" Buiter Says A New Greek Currency "Would Be Rubbish"

Tyler Durden's picture




 

Having shown his true colors in recent months by embarking not just on an anti-gold crusade, but more recently on an anti-cash mission, Citi's Willem Buiter has once again exposed his newly minted CFR status-quo-embracing status this morning. During an appearance on CNBC, Buiter notes that there would be "havoc" if Greece left the euro zone and adopted an alternative currency; but then he went on the pre-prescription blasting that any kind of alternative currency tied to the euro "would be rubbish." These comments come just hours after German FinMin Schaeuble raised the possibility that Greece may need a parallel currency alongside the euro if the country’s talks with creditors fail.

 

German Finance Minister Wolfgang Schaeuble raised the possibility that Greece may need a parallel currency alongside the euro if the country’s talks with creditors fail, people familiar with his views told Bloomberg...

Schaeuble mentioned the idea of parallel currencies at a recent meeting without endorsing it, according to two people who attended and asked not to be identified because the gathering was private. He also cited the example of Montenegro, which uses the euro but isn’t a member of the currency union, one person said.

 

The comments suggest that some in Germany are preparing for the worst amid a standoff with Greece that has dragged on since February.

 

While Chancellor Angela Merkel and her finance minister say the goal is to keep Greece in the euro, Schaeuble has also said he wouldn’t rule out a Greek exit from the 19-nation currency.

 

Germany is “ready to take this brinkmanship very far,” with Schaeuble in the role of “attack dog,” Jacob Funk Kirkegaard, senior fellow at the Peterson Institute for International Economics in Washington, said by phone.

But Citi's Willem Buiter is less than exuberant about the success of that plan...

There would be "havoc" if Greece left the euro zone and adopted an alternative currency, Willem Buiter, global chief economist at Citi, told CNBC.

 

 

"I really think the notion that Greece exits with or without a shadow currency or a proper currency (is ridiculous). Greece has not, historically, been good at managing an independent currency. This time, if they were to move towards that from a situation of extreme weakness it would be havoc for Greece so I wouldn't recommend that."

 

Asked whether Greece could exit the 19-country single currency group with some kind of alternative currency tied to the euro, Buiter rebuffed the notion, saying "that would be rubbish."

*  *  *

Once again we leave it to Jacob Funk Kirkegaard, senior fellow at the Peterson Institute for International Economics in Washington to conclude...

“We’re in this game of chicken... the problem is that Alexis Tsipras is riding a scooter and Wolfgang Schaeuble is driving an armored BMW.”

 

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Fri, 05/22/2015 - 13:18 | 6122037 Dumgoy
Dumgoy's picture

JWO stooge

Fri, 05/22/2015 - 13:21 | 6122051 Haus-Targaryen
Haus-Targaryen's picture

Oh fuck this man.

Fri, 05/22/2015 - 13:33 | 6122093 AIIB
AIIB's picture

So:

 

- if gold is in a 6,000 year BUBBLE

- & assuming that that BUBBLE is 'valued/priced' in fiat dollars

- what was gold VALUED/PRICED in 6,000 years ago?

 

The guy ^^^ up top is correct ~ another JWO stooge...

Fri, 05/22/2015 - 13:35 | 6122108 gcjohns1971
gcjohns1971's picture

Slave-hours.

...which is what the Dollar denominates.

Fri, 05/22/2015 - 13:37 | 6122114 CrazyCooter
CrazyCooter's picture

You know what the wise folks say about one man's trash ...

Regards,

Cooter

Fri, 05/22/2015 - 13:42 | 6122128 AIIB
AIIB's picture

'Slave Hours' ~ perfect!

 

It's all well documented in the BIBLE itself how jew masters were instructed to treat their slaves vs. goy, animals, women, & such...

 

FFS ~ Most of the attitude hasn't even changed...

 

https://www.youtube.com/watch?v=98GIXA1IxJM

Fri, 05/22/2015 - 13:56 | 6122191 knukles
knukles's picture

And so since it would be "havoc" of Greece left the EuroZOne (fuck paying their debts off, a consideration of whether the banking system remains afloat on a sea of sophistry, or are we confusing things here) it cannot happen, right?
Bzzzzzzzzzzzt  Oh, we're so sorry Wim, but behind door #3 is a large pile of emptiness.

                                               More Impeccable Logictm

Fri, 05/22/2015 - 16:05 | 6122692 MonetaryApostate
MonetaryApostate's picture

Money is debt that the elite never intend to repay.....  (Get real people)

Market & Bank Apocalypse in 3...., 2...., 1.....

Fri, 05/22/2015 - 13:55 | 6122195 Payne
Payne's picture

Preface it by Citi Bank plead guilty to the following and has a paid executive who has in the past made unsubstantiated claims has a new claim.

Fri, 05/22/2015 - 14:36 | 6122363 Consuelo
Consuelo's picture

What happened to the blue Ford tracter...?

 

 

Fri, 05/22/2015 - 14:03 | 6122233 Urban Redneck
Urban Redneck's picture

Every currency denominates slave hours.

In the US a piece of iCrap costs about 100 slave hours, and an ounce of gold costs about 165 slave hours (both pre-tax)

Whereas in China that same piece of iCrap costs about 465 slave hours and the single ounce of gold costs 750 slave hours. 

'Muricans are going to LOVE those future prices when USD hegemony dies...

Of course sellers will also face a conundrum, to live in the worse shithole and get moar slave hours per ounce, or to move to greener pastures and accept fewer slave hours per ounce and a lower standard of living...  I think we've all noticed what the Chinese chose...

R.I.P fat lazy stupid entitled 'muricans (even if it feels more like rotting in hell).

Fri, 05/22/2015 - 14:27 | 6122118 813kml
813kml's picture

Gold was valued/priced in dragons and virgins 6,000 years ago, good luck finding either nowadays.

Fri, 05/22/2015 - 14:29 | 6122342 ThirdWorldDude
ThirdWorldDude's picture

Unicorn skittles!

Fri, 05/22/2015 - 14:30 | 6122346 rejected
rejected's picture

Thanks,,, My laugh for the day,,, Not only funny but unfortunately true.

Fri, 05/22/2015 - 17:05 | 6122877 mc225
mc225's picture

never trust anyone wearing a necktie...

Fri, 05/22/2015 - 14:23 | 6122318 Fun Facts
Fun Facts's picture

He gets his daily talking points from the Rothschild Group.

Also cereal boxes full of cash for being a good goyim programming shill, just like Keynes.

Fri, 05/22/2015 - 14:24 | 6122321 teslaberry
teslaberry's picture

jwo stoogge, more like willem buiter is a classinc nazi name. 

Fri, 05/22/2015 - 13:19 | 6122044 TrumpXVI
TrumpXVI's picture

I smell desperation.

Fri, 05/22/2015 - 13:32 | 6122091 813kml
813kml's picture

And flop sweat, the man appears to be choking on propaganda.

Fri, 05/22/2015 - 13:37 | 6122111 Ignatius
Ignatius's picture

The guy is a dissembling cunt.

And that is an embarrassment not just for himself, but for all men.

Fri, 05/22/2015 - 13:49 | 6122164 Silverhog
Silverhog's picture

This guy's got sweat pouring down his back. Outragous statement. His 60+ years of economic experience verses Golds 6000 years of money. What a loser. 

Fri, 05/22/2015 - 17:34 | 6122957 Vendetta
Vendetta's picture

Well a gold coin would purchase a good toga back in roman times, if gold was valued properly it would buy the same thing today... however I believe the 'togas' would valued the same as these suits:

 

http://www.therichest.com/luxury/most-expensive/10-most-expensive-mens-s...

Fri, 05/22/2015 - 13:22 | 6122053 ted41776
ted41776's picture

peak fiat

Fri, 05/22/2015 - 13:25 | 6122062 Well Hungarian
Well Hungarian's picture

Douche vomits nonsense on channel nobody watches. Riveting.

Fri, 05/22/2015 - 13:33 | 6122096 Kirk2NCC1701
Kirk2NCC1701's picture

Somebody should point out that '6000 years' and ' bubble' are an oxymoron. 

And speaking of Morons...

Fri, 05/22/2015 - 14:22 | 6122314 Antifaschistische
Antifaschistische's picture

Preface:  i think Greece should leave the Euro because I think every country should leave the Euro.  There.

Having said that, it will be incredibly disruptive for the Greek people to leave the euro.  Forget the hundreds of Billions the government owes.  

Every single cross border Accounts Receivable and Accounts Payable is in Euro's.  That's going to be loads of billions which are also in jeopardy.

At a personal level...every credit card, mortgage, car loan, etc...denominated in Euro's now, unpayable with the new Greek currency.  That will be more stacks of billions.   

This is why there is fear.  The government debt is easily calculated...and more easily disolved. Everything else gets messy and the potential for Euro Bank write-offs is MUCH larger than the Greek Gov Debt burden.   It will set off a cascading domino effects show like we haven't seen in a LONG time.  I got my popcorn, but it will not be a cake walk for the Greeks.

Fri, 05/22/2015 - 13:26 | 6122065 Bell's 2 hearted
Bell's 2 hearted's picture

sounds like a bitter old man

Fri, 05/22/2015 - 13:27 | 6122070 basho
basho's picture
Buiter-Is-A-60-Year old-Bubble
Fri, 05/22/2015 - 13:33 | 6122098 813kml
813kml's picture

Doodie bubble.

Fri, 05/22/2015 - 14:48 | 6122401 cheech_wizard
cheech_wizard's picture

Is that his head or his neck blowing bubbles?

 

Fri, 05/22/2015 - 13:28 | 6122072 Amish Hacker
Amish Hacker's picture

The real "havoc" that Buiter warns of would be seen on the balance sheets of European banks, not just in the streets of Athens. I wish the MSM would stop pretending this is about "saving Greece."

Fri, 05/22/2015 - 13:30 | 6122073 Amish Hacker
Amish Hacker's picture

duplicate

Fri, 05/22/2015 - 13:38 | 6122078 oddjob
oddjob's picture

Citi stock is only down 96% from ts its 2007 high. Gold is up roughly 300% in the same time period. So Gold owners have outperformed Citi stock by a measley 7500%.

Fri, 05/22/2015 - 13:30 | 6122086 Bell's 2 hearted
Bell's 2 hearted's picture

"Asked whether Greece could exit the 19-country single currency group with some kind of alternative currency tied to the euro, Buiter rebuffed the notion, saying "that would be rubbish"

Buiter, let me help you out, here ... rubbish best served - warm

Fri, 05/22/2015 - 13:32 | 6122094 gcjohns1971
gcjohns1971's picture

CFR is a collection of Thieves, Knaves, Aristocrats, and Bankers (which is to say more thieves and knaves).

Nothing they prescribe will be of benefit to humanity, only to themselves.

Fri, 05/22/2015 - 13:36 | 6122112 Winston Churchill
Winston Churchill's picture

Just like Soros's statements, you have to look for their angle.

Fri, 05/22/2015 - 13:33 | 6122097 unplugged
unplugged's picture

"Willem-Is-A-60-IQ-Moron"

Fri, 05/22/2015 - 13:37 | 6122113 Panic Mode
Panic Mode's picture

He is a classic bell end.

Fri, 05/22/2015 - 13:40 | 6122127 Herman_the_German
Herman_the_German's picture

Isn't this guy from the Netherlands ? He should be familiar with his own countries' history and know what a tulip bubble is.

Fri, 05/22/2015 - 13:41 | 6122134 Panic Mode
Panic Mode's picture

He only speaks for his own benefit, i.e. banker

Fri, 05/22/2015 - 13:42 | 6122137 HandyCrapper
HandyCrapper's picture

Nazi-Keynesian douche fraud.

Fri, 05/22/2015 - 13:42 | 6122138 wmbz
wmbz's picture

What a bilthering fuckng idiot!

Someone actually listens to the tripe rolling out of his mouth?

First class douchebag, for assholes!

Fri, 05/22/2015 - 14:11 | 6122155 Kirk2NCC1701
Kirk2NCC1701's picture

Not only is Montenegro using the Euro, w/o being a member, but it used whatever useful currency was available during its post-Yugoslavia era. They used the DEM, CHF, USD, GBP.

So it will always be: Currency Substitution.  Use whatever works.  

Sorry, king fiat.  You're only king as long as others actually believe or accept you as one.  Nice Jedi Mind Trick, as long as it works. 

Fiat is a Con game.  And being King Fiat is the King of Con games.  Alas, all games are a... Bubble.  A bubble that lasts a lot less than 6000 years -- Buiter, you asshat.

Plan accordingly. 

Fri, 05/22/2015 - 13:53 | 6122184 kchrisc
kchrisc's picture

Only two types of anti-gold folks: Fools and Zionist shills. And fools generally don't have noiZ-media soapboxes.

Liberty is a demand. Tyranny is submission..

Fri, 05/22/2015 - 13:54 | 6122190 Bastiat
Bastiat's picture

Your house of cards is coming down on your head, Buiter.

Fri, 05/22/2015 - 14:03 | 6122231 crashguru
crashguru's picture

An alternative currency tied to the euro would be rubbish of course, because what Gr needs is a weaker currency.

Fri, 05/22/2015 - 14:09 | 6122258 Spectre
Spectre's picture

I'd like to kick him in his "Leno" chin real hard.

Fri, 05/22/2015 - 14:26 | 6122332 fremannx
fremannx's picture

Even former Fed Chair Alan Greenspan understood that gold was Constitutional protection again the seizure of personal property. On of the best essays ever written on the importance of a hard asset to back up paper money was written by him...

http://www.globaldeflationnews.com/what-caused-a-brilliant-young-economi...

Fri, 05/22/2015 - 15:03 | 6122460 NotApplicable
NotApplicable's picture

Didn't read this particular article, but from the headline it appears as the author based it upon the false premise that Greenspan didn't destroy the dollar on purpose. Based upon his discussion with Ron Paul about his 1966 article, The Maestro understood the ramifications of his actions fully the entire time.

Fri, 05/22/2015 - 14:39 | 6122374 DutchBoy2015
DutchBoy2015's picture

6000 years? Isn't he spewing the Jew Buybull fairytale hoax?

Fri, 05/22/2015 - 14:59 | 6122449 NotApplicable
NotApplicable's picture

The scooter analogy is missing the key piece, the fact that Tsipras is carrying a Molotov Cocktail which can burn down the entire Western banking system with a wildfire of cascading cross-defaults.

Fri, 05/22/2015 - 15:01 | 6122455 silverserfer
silverserfer's picture

I love the smell of banker fear in the morning. 

Fri, 05/22/2015 - 15:01 | 6122457 Bill of Rights
Bill of Rights's picture

I'm sure this POS is buying with both hands open.

Fuck him

Fri, 05/22/2015 - 15:18 | 6122508 PrimalScream
PrimalScream's picture

COMMENTS such as the one you quoted from Buiter make me SERIOUSLY DOUBT that there is a responsible person left in the Global Banking System.  These people are all playing a CON Game.

OF COURSE  Greece has to create an independent currency if it leaves the Eurozone.  This is so mind-numbingly obvious, even a 5'th grader can understand it.

OF COURSE  the new Greek currency will plummet in value immediately ... until it takes 1,000,000 New Drachmas to buy a role of toilet paper in Greece!

NO  there is no such thing as a "parallel currency".  Are these people idiots??  Greece is either IN, or its OUT.  The country of Greece is not "half-in" the financial system of Europe. 

The GREAT CON GAME is slowly collapasing, Mr. Buiter.  Better get your LearJet fueled up and ready to go. 

Fri, 05/22/2015 - 20:52 | 6123383 Escapedgoat
Escapedgoat's picture

" OF COURSE  the new Greek currency will plummet in value immediately ... until it takes 1,000,000 New Drachmas to buy a role of toilet paper in Greece! "

 

ASSUMING  you find it on the market. RIGHT?

What if the new Currency the Drachma OR  the Phoenix [Originaly minted by the Murdered (What a surprise)  1st Governor  Kapodistrias] IS NOT AVAILABLE

WHAT THEN ??

Fri, 05/22/2015 - 16:57 | 6122845 edwardo1
edwardo1's picture

Of course a parrallel currency would be rubbish, but Greece's choices are to A.) throw money down a rat hole that is a wholly owned subsidiary of (shh) The Troika or B.) take their Spanikopita and marginally sandy beaches elsewhere. Greece is faced with a Hobson's Choice, and I defy anyone, including Ferris Buiter, to properly ajudicate which is the better choice. I certainly have my bias.

As for Ferris and his staggering lack of insight on gold, he might as well have said humanity is in a six thousand year bubble, because gold and (the welfare) of humanity are, irrespective of the last forty four years of misbegotten monetary experimentation, inextricably bound up with one another. This is so for excellent reasons. The superorganism, of which Buiter is, lamentably, a member, have chosen it as the result of applying the most rigourous test avaiable, that would be the test of time, wherein all human experience is properly weighed. Gold's singularly enormous stock to flow profile is the result of the aforesaid multi-millenial experiment. It's humanity rendering a verdict that is resolutely thumbs up. Gold's a Giffen good for very good reason.

 

None of these developments occurred because of a bubble mentality, but, rather, through cold, hard, experience. People like Ferris, and humanity's unerring tendency to replicate people like Ferris througout human history, are exactly what has led to gold being gold.

 

Certainly portability, fungibility, virtual indestrictibility, malleability, and divisibility, helped a great deal, but if people didn't need a place to save (their purchasing power), well, all those marvelous aforesaid attributes wouldn't mean much. But folks do need, that's right, need to hoard something that maintains purchasing power, because, guess what, they get sick, and/or hurt, and even if they manage to avoid illness and/or injury, they damn sure get old and require something for that inevitability.

 

Saving in debt has so much to say about where we are as a species, and if Ferris honestly looked into it, he would understand and acknowledge that as an intergenerational store of value gold's reputation is very well earned. Those who man the controls at the world's central banks agree with this assessment. Which leads me to the inevitable conclusion that while Ferris may be profoundly lacking in insight, he might also simply be another stooge spreading misinformation. In the meantime, as we are left to wonder if Ferris is more idiot than mountebank, it must be noted that his attack on the existence of cash is every bit as deplorable as his views on gold. 

Fri, 05/22/2015 - 18:34 | 6123116 PrimalScream
PrimalScream's picture

"People like Ferris, and humanity's unerring tendency to replicate people like Ferris throughout human history, are exactly what has led to gold being gold."

 

Words of wisdom.  Exactly right!

Fri, 05/22/2015 - 17:27 | 6122930 Apocalicious
Apocalicious's picture

Mewling quim.

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