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Even The Players Are Losing Faith In Their Own Shenanigans

Tyler Durden's picture




 

Submitted by James Kunstler via Kunstler.com,

The proof of the pudding is in the eating, the old saw goes. This one, alas, is a mélange of several old shit sandwiches bound in a liaison of subterfuge and seasoned with political absurdities. Having been fooled in this bistro before, citizen-patrons leave the table resigned to yet another bout of food poisoning as the music of universal upchuck rings across the European Union from Helsinki to Lisbon

What is on display more brightly and clearly than ever, though, is the utter fakery of international banking. The players have lost faith in their own shenanigans. They simply go through the motions now awaiting the political fallout, which is to say the revolt of the people who can still do arithmetic. So, now Greece can supposedly expect another $90bn-equivalent in new loans on top of the $350bn-equivalent already racked up. That’s rich. The loan repayment schedule must look like a map of Middle Earth.

Most perplexing — especially for those on summer hiatus in which time seems to be suspended — is the fact that the rescue package will take weeks, perhaps months, to gin up while Greece is right now so utterly paralyzed in bankruptcy that no goods can move, no bills can be paid, and the economy cannot deliver the necessities of daily life. The old refrain, “your check is in the mail” may not be so reassuring to folks who haven’t eaten for three days. Personally, I would expect the gasoline bombs to be flying around Syntagma Square before the middle of the week.

Has anyone noticed the eerie paucity of news emanating from the other hard-luck nations of the EU, namely Spain, Portugal, Italy, and Ireland? The money hole that these deadbeats are in makes Greece look like a dimple in the sand. What, I wonder, is the message to them from the Greek negotiation melodrama? (Lend more money to real estate developers to build more houses and condos that will never be sold? That’ll work!) No, the entire EU debt fiasco harks back to the original meaning of “ring around the rosie” — a theme song of the Black Death. The eventual implosion of the European Union, and the banking system hugging its face vampire squid style, will be the financial equivalent of the Black Death. Kingdoms will fall and social systems will be turned upside down.

The agonizing wait for that outcome is obviously fraying the nerves of all concerned to the degree that all their exertions seem like little more than tragic and pointless exercises in futility — for instance, the terms arrived at in last weekend’s negotiations. Nobody has a shred of faith that they can or will be carried out. In effect, what they’ve done is put together a Potemkin framework allowing them to go just give up for a month or so and go on vacation.

That would, of course, set things up for a mighty financial convulsion in the autumn — history’s favorite season for ruin — when all the ministers and their factotums venture back to the dismal realities they left fermenting at the office. Of all the many things apt to happen, we can count at least on the current Greek government falling and a failure of Greece to make any gesture of repayment in their just-negotiated loan schedule. That would leave the “Troika” (the EU, the ECB, and the IMF) with zero credibility and initiate the epochal widespread repudiation of the entire EU loan structure — in short, the collapse of Europe.

That wouldn’t necessarily be the end of the world, but it would be the end of nearly seventy-year period of peace, prosperity, and stability. The sorting-out would be epic. The standard of living across Europe would sink to the level of the 1830s. The fundamentals of banking and currency would have to be rebuilt from ashes. More nations will break up into smaller units. Western intellectual life would suffer immense shock as all the certainties of the Enlightenment project seemed to go up in a vapor of insolvency and political upheaval. You have to even wonder whether Europe could defend itself against an onrushing Jihad.

But these are admittedly gloomy thoughts for a morning so early in summer. Myself, I’m going to shop for an outfit to wear to Diddy’s annual party in the Hamptons. Coonskin caps may be oddly coming back in style as people all over America try to emulate Donald Trump and the furry creature that lives on the top of his head. Something tells me that the ladies will not be buying many Hillary-style pantsuits. Wouldn’t it be cunning if Diddy’s caterer came up with something like miniature Greek Pudding bites? That would bring a real frisson to the doings, something to chat about besides the marketing genius of Kim Kardashian.

 

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Mon, 07/13/2015 - 13:57 | 6307110 Looney
Looney's picture

I betcha, John Kerry watches the Greek Circus and wishes he’d be able to push the Iranians around the way Merkel did Tsipras.

Speaking of Kerry…

Rumor has it that his leg surgery didn’t go that well. Instead of getting a titanium femur, he’s got a silicone Double-D breast implant in his leg.

Plus, those three newly acquired hip-nipples are itching as hell! ;-)

Looney

Mon, 07/13/2015 - 14:10 | 6307167 UndergroundPost
UndergroundPost's picture

International Socialism must be destroyed

Mon, 07/13/2015 - 14:22 | 6307230 Gnostech
Gnostech's picture

And replaced with National Socialism. ;)

Mon, 07/13/2015 - 16:01 | 6307710 DeProgrammed
DeProgrammed's picture

All International "isms" must be destroyed. Most notably banksterism.

Mon, 07/13/2015 - 14:03 | 6307119 JustObserving
JustObserving's picture

The money hole that these deadbeats are in makes Greece look like a dimple in the sand

US debt and unfunded liabilities per taxpayer easily exceed $1,400,000  versus Greek debt of $65,000 per taxpayer.

Renowned economist Laurence Kotlikoff recently testified at the U.S. Senate about the runaway U.S. budget.  How bad is it?  Kotlikoff says, “I told them the real (2014) deficit was $5 trillion, not the $500 billion or $300 billion or whatever it was announced to be this year. Almost all the liabilities of the government are being kept off the books by bogus accounting. . . . The government is 58% underfinanced . . . . Social Security is 33% underfinanced . . . . So, the entire government enterprise is in worse fiscal shape than Social Security is, but they are both in terrible shape.”  So, how much is America on the hook for in the future?  Kotlikoff contends, “If you take all the expenditures that the government is expected to make, as projected by the Congressional Budget Office (CBO), all the spending on defense, repairing the roads, paying for the Supreme Court Justices’ salaries, Social Security, Medicare, Medicaid, welfare, everything and take all those expenditures into the future . . . and compare that to all the taxes that are projected to come in, and the difference is $210 trillion.  That’s the fiscal gap.  That’s our true debt.”

http://usawatchdog.com/financial-system-will-collapse-just-a-matter-of-w...

Forward – to more debt. And more lies from the Fed.

Mon, 07/13/2015 - 14:05 | 6307149 NoDebt
NoDebt's picture

That's why we need distractions like Greece and ISIS and Bruce Jenner.  Makes us feel like the problem isn't here, it's over yonder somewhere nobody normal ever goes.

Mon, 07/13/2015 - 14:09 | 6307165 KnuckleDragger-X
KnuckleDragger-X's picture

Is does no good to tell the truth when nobody cares and the Senate only cares about their perks and privileges, along with getting reelected.

Mon, 07/13/2015 - 14:11 | 6307173 JustObserving
JustObserving's picture

Truth is treason in an empire of lies

Mon, 07/13/2015 - 15:46 | 6307627 DeProgrammed
DeProgrammed's picture

<---- The international debt volcano will erupt in the next 12 months.

<---- The international debt volcano will erupt between 12 months and never.

Mon, 07/13/2015 - 17:45 | 6308105 Bob
Bob's picture

The past 5 years and now, finally, Greece, have demonstrated there is an app for that:

https://en.wikipedia.org/wiki/Neo-feudalism

The squeeze will be long and hard for everybody but the affluent for the next 15 years, imo.  People in the west won't revolt until their ribs start poking through their skin from starvation.  Not with the NSA et al tracking everybody and everything. 

I'm no longer worried about volitility.  It ain't in the script. 

Mon, 07/13/2015 - 14:02 | 6307121 NoDebt
NoDebt's picture

"This one, alas, is a mélange of several old shit sandwiches bound in a liaison of subterfuge and seasoned with political absurdities."

"The loan repayment schedule must look like a map of Middle Earth."

I wish I could write like this guy.

Mon, 07/13/2015 - 14:10 | 6307171 KnuckleDragger-X
KnuckleDragger-X's picture

A shit buffet and it's all you can eat, so line up for your free shit......

Mon, 07/13/2015 - 14:05 | 6307146 BoPeople
BoPeople's picture

Maybe bankers are waking up to the fact that they are both parasitic bad guys and they are also still part of humanity ... one hopes.

Maybe they can start thinking about what they would do if they really wanted to help humanity instead of sucking the life out of it.

Mon, 07/13/2015 - 14:46 | 6307329 koncaswatch
koncaswatch's picture

Yah! Brilliant! They could...       Nah

They're not part of humanity.

Mon, 07/13/2015 - 14:05 | 6307151 WTFUD
WTFUD's picture

' Players only love you when they're playing '

Fmac

Mon, 07/13/2015 - 14:09 | 6307154 The Delicate Genius
The Delicate Genius's picture

it's amazing that so many people who pretend to understand the money system are amazed that there is far more debt than there is currency available to pay it.

fractional reserve currency creation
+ compound interest

= NO MATTER WHAT deal they arrive at - the problem is only going to get worse.

That's not my opinion.

That's just math.

The issue is how much suffering is enough, how much slavery is enough - people working their assess off to EARN paper and ink the banks just printed...

Mon, 07/13/2015 - 14:13 | 6307181 The Delicate Genius
The Delicate Genius's picture

fictio cedit veritati.

Mon, 07/13/2015 - 14:53 | 6307367 detached.amusement
detached.amusement's picture

That's part of the problem when you operate wholly on faith, with no underlying principles...you never see the wall until its right in your face...

Mon, 07/13/2015 - 14:07 | 6307157 CarpetShag
CarpetShag's picture

Yet another fucking East Coat, rubbing-his-ass-in-his-leather-upholstery armchair analyst on European affairs. Yes James, there are indeed more assholes than opinions on this topic.

Mon, 07/13/2015 - 14:42 | 6307307 howling_mad
howling_mad's picture

And comets will rain down from the skies killing the financial dinosaurs turning people into herbivores chewing on the little grass they could find

And god will smythe thee down blablabla zzzzzz....

Crap useless post

Mon, 07/13/2015 - 14:15 | 6307176 Jack Burton
Jack Burton's picture

The Greek outcome was predicatable. In the western style of democracy, the deep state allows us to choose between their candidates, who promise certain things and run on a set platfrom. The citizens MAY vote for who ever meets their needs, BUT, once in office, they cancel the entire election platform, and all promises and turn right around and say "Well, we didn't really mean that. We must accept reality and adopt different polices." What this bait and switch really means is the Deep State got you suckered in to believing you are in a democracy, but you really are in a Deep State dictatorship. And for those who say "What Deep State? Show me your Deep State!" That is on you if you are so slow you can not see who the Deep State is right in front of your eyes. They do not hide, they operate openly in Washington and in every State Capital. You can look and the Corporate and Government and Military revolving door to see who is Deep State. Obama was not Deep State, but was recruited by them as a perfect foil to the Bush years, a different man, saying different things, but totally committed to the Bush agenda. Deep State, look inside the Pentagon, the NSA, CIA, Top Investment Banks, Major Hedge Funds, Corporate CEOs, and an array of their minions. They rule America, they are democractic among themselves, they debate and assess and think up different plans, but all in aid of their wealth and power, and YOU are not invited to their parties.

Greece has just been given a lesson in the Deep State. They voted, it was thrown out, and everything they voted against in now in place. Pluse. 50 billion of their public assets are now to be stolen, by the very banks who screwed them.

Mon, 07/13/2015 - 16:54 | 6307946 HopefulCynical
HopefulCynical's picture

Psychopathy is physiological; there is no cure.

It is genetic, and thus inheritable.

Therefore, there is only one solution.

Will humanity rise up and throw off the psychopaths? Only time will tell.

Mon, 07/13/2015 - 15:08 | 6307439 frankly scarlet
frankly scarlet's picture

I'll chip in enouigh cash to buy 4.5 litres (Imperial gallon) of gasoline to help the Greek people get that party started...I'd burn their Parliament to the ground just to prove a point if I were of the Greek working class.

Mon, 07/13/2015 - 15:07 | 6307450 10mm
10mm's picture

"Because they own this fuckin place" They want it alll.

Mon, 07/13/2015 - 15:22 | 6307508 Fuku Ben
Fuku Ben's picture

As the players lose faith it might be a good time to consider the future potential for opportunities to embrace change. And not through violence.

There are all types of collateral. Many banks wouldn't touch a lot of them with a 10 foot pole. Building on several of my posts from yesterday. Let's take Intellectual Property (IP) for example. Even the most brilliant ideas won't likely get anything out of a bank. They'd need to take risk. Angel funds,crowd funding or other types of private equity are the most likely sources for risk and future. And these sources, while potentially taking a big risk, have the best opportunity to maximize their rewards. I realize there a many levels of risk tolerance for each individual and corporation so these opportunities won't be for the faint of heart.

Let's take the previously proposed futures fund I mentioned as an example. Let's say it would seek investors willing to take a significant risk for the potential maximum reward and benefit. All the prospectuses and details in the world might still not convince even the most skeptical that it is worthwhile. And further the IP that the fund would invest in may need to remain secure so that it was not stolen or squelched like previous patents and ideas that have been blocked due to their "dangerous" potential to the status quo. Whoever creates or manages the fund or chooses the investments would need to be a true visionary. Not only able to foresee but effectively manage and deliver the desired results.

My attempts to obtain the required support for my IP and subsequent addition into a forward thinking futures fund will be both humble and yet confident. The type of IP I'm working on would never obtain funding from a bank. I would put this IP into the category of maximum risk and maximum reward. And the reward would not only be limited to investors but have the potential to benefit all. Maximum risk is in part due to the potential of this IP being perceived as a threat to the status quo. There is nothing further from the truth. However, even the highest levels of the status quo may need guidance in order to find the desire to embrace the necessary changes and find them acceptable.

The IP would would draw on the past, present with the intent to be used for a better future for all. It would create many productive new jobs, new avenues for products and services and partnerships with many existing well-established companies. And best of all if everything works as planned it could be a catalyst for a whole new paradigm. Without giving away too many details I'll attempt to relay the intent with one tiny portion of the much larger IP plan. I will attempt to use an analogy to explain.

Through my ongoing educational efforts I noticed a very unique correlation. This correlation relates across various groups. So I will draw on a post from yesterday to give an analogy. Let's say I found something that related to man, his web footed friends and creatures from the swamp. And with that knowledge applied this small piece of IP was able to provide a better life for all of them and their families. I wonder how many that would interest? How much would that be worth? Would the status quo embrace the opportunity for changes to the existing infrastructure? Would those that benefit outside the fund or IP company be willing and able to accept what is available to them? These are just a few questions for thought.

Mon, 07/13/2015 - 16:40 | 6307906 DeProgrammed
DeProgrammed's picture

If it's not a new Kardashian, rapper or sports figure, I would give up now in the USSA at least.

Here's some IP I'll give away for free: live simple, avoid debt at all costs and learn to love what you have. There's a simple answer that would revolutionize the world as we know it if more people showed "interest". The current banking system couldn't survive in these environs. This particular "answer" to a problem is right in front of our faces, but last I checked the local Mercedes dealer opened 2 new locations.... since 08. Somehow I doubt these cars are all being paid in cash. 

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