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Actually The ECB Has Already Handed Out €1 Trillion; And Why Germany Equates ECB Printing With Hyperinflation

Tyler Durden's picture


For anyone who thinks that the ECB is some pristine virgin which has barely been touched in that special monetary printing place, we, or rather JP Morgan's Michael Cembalest, has some news for you: "To-date, that’s what the ECB has done: of the 1.1 trillion Euros extended to European banks and governments (through sovereign/covered bond purchases and repo), 970 billion has been given by the ECB." So anyone demanding that the ECB print even more outright (which incidentally we are certain will eventually happen - our thoughts are identical to those of Dylan Grice from two months ago: "ECBCTRL+P: The Next Steps In The European Implosion") should probably keep this in mind. It will also explain why German members of the ECB are dropping like flies, and why Germany, which better than anyone else, most certainly proponents of modern reincarnations of failed Keynesianism, knows what happens when central banks have gone wild, is certain that the ECB proceeding to move from €1 to many, many more trillions of explicit monetary support, will mean nothing short of hyperinflation.

From JPM:

The bottom line is that the only entity in the world with the firepower to save Italy in the short term is the European Central Bank. If you remember the little plastic men exhibit from Labor Day’s Eye on the Market, most of the arrows pointed to the ECB, indicating that just about everyone, other than the Bundesbank and perhaps conservative parties ruling Germany, thinks the ECB should solve the problem by printing money. To-date, that’s what the ECB has done: of the 1.1 trillion Euros extended to European banks and governments (through sovereign/covered bond purchases and repo), 970 billion has been given by the ECB. The modest remainder has come from the IMF and EU countries themselves (e.g. fiscal transfers).


German members of the ECB appear to have resigned out of frustration with money-printing (Weber, Stark) and remaining ones like Wiedmann mentioned this week the reluctance of Germany to accept more of it, referring to the institutional memory of the Weimar Republic hyper-inflation. I have included 2 charts below on Weimar that show what he is referring to. There is no space here to assess whether such concerns make sense at a time of household and corporate de-leveraging in Europe; what matters is that HE thinks they do. We do not know the most critical answer: are German members of the ECB fighting a battle that has already been lost? In other words, will the destiny of the ECB be to print a couple of trillion Euros to buy or lend against sovereign debt for the next several years? Until European policymakers answer this question, investors cannot be expected to have a lot of confidence in its markets or in its institutions.


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Thu, 11/10/2011 - 10:24 | 1865714 qussl3
qussl3's picture

Germany should just go back to the DM.

And peg it to the EUR.

Hilarity ensues.

Thu, 11/10/2011 - 10:30 | 1865749 boom goes the d...
boom goes the dynamite's picture

Welcome back my friends to the show that never ends we're so glad you could attend, come inside, come inside.

Emerson, Lake, and Palmer

Thu, 11/10/2011 - 10:45 | 1865814 SheepDog-One
SheepDog-One's picture

Well you forgot the next line which tells people the show is guaranteed to blow your heads apart.

Thu, 11/10/2011 - 11:11 | 1865943 DaveyJones
DaveyJones's picture

"seven virgins and a mule" best describes current events

Thu, 11/10/2011 - 19:45 | 1868226 boom goes the d...
boom goes the dynamite's picture

there behing the glass is a real blade of grass, be careful as you pass, move along, move along.

Thu, 11/10/2011 - 10:30 | 1865750 sabra1
sabra1's picture

i'd peg it to the yuan! better to be on the winning side!

Thu, 11/10/2011 - 11:17 | 1865957 eaglefalcon
eaglefalcon's picture

Then you get the Chinese nervous so that they start pumping money too to "defend" their currency

Thu, 11/10/2011 - 10:47 | 1865824 Ruffcut
Ruffcut's picture

Oil is the trigger for hyperinflation. as long as the oil producers keep taking bogus bucky and yucky euro, the slow path of destruction will continue. Printing makes real products and productivity stressed out.

Hyperinflation states that your currency is either weakening rapid or dead on arrival.

Thu, 11/10/2011 - 11:01 | 1865901 SHEEPFUKKER

Just peg it to a peg......same thing.

Thu, 11/10/2011 - 11:10 | 1865936 FinHits
FinHits's picture

I agree that would be funny if DEM would come back, and even more funny if the peg to EUR would be one-way-only (i.e. DEM could be *weaker* then EUR)!

Let me once again question the questioning of ECBs virginity on money printing. Again, I am *not* convinced at all that any ECB printing has *yet* taken place. Sounds like the well experienced lady of U.S.A. is trying to put down a chaste lady through that "Basel III is un-American" bank of hers:

"To-date, that’s what the ECB has done: of the 1.1 trillion Euros extended to European banks and governments (through sovereign/covered bond purchases and repo), 970 billion has been given by the ECB."

Giving<>Printing. Sovereign/covered bond purchases have been "sterilised", i.e. equal amount has been taken away from bank markets. If I am not mistaken, repos are also covered by eligible bonds submitted to ECB.

Happy to be proven wrong.

Thu, 11/10/2011 - 11:22 | 1865972 Whatsoever
Whatsoever's picture

1 Trillion is nonsensical.

185 Billions, which are continously sterilized.

Pracitcally no inflation so far in EUROZONE.

And the ECB - fortunately - is not the BUBA

Thu, 11/10/2011 - 10:28 | 1865716 wang (not verified)
wang's picture

ECB will print - how long does it take to print 2t - best that they start soon (how about Freitag)

Thu, 11/10/2011 - 10:24 | 1865717 Fips_OnTheSpot
Fips_OnTheSpot's picture

Go ahead, ECB. We will go ahead to Mrs Merkel the "other day" -- while I can sit on my coins ...

Bundesbank rumor: expected inflation by end of 2012: 25%

Good night.

Thu, 11/10/2011 - 10:25 | 1865721 Long-John-Silver
Long-John-Silver's picture

Attempting to fill the Black Hole known as Europe is futile.

Thu, 11/10/2011 - 10:25 | 1865723 Spitzer
Spitzer's picture

I gotta run but how much is sterilized compared to the Fed printing ?


King Euro, the dollar is garbage.

Thu, 11/10/2011 - 10:29 | 1865744 CrimsonAvenger
CrimsonAvenger's picture

I think they should all be sterilized.

Wait, were you talking about the central banksters or about their printing escapades?

Thu, 11/10/2011 - 10:42 | 1865801 Spitzer
Spitzer's picture

I find it odd that the dollar bulls claim to fame is that Bernanke will not be able to outrun the defaults by printing yet they all agree that this political deadlock in the ECB will be able to outrun the defaults and bring on hyperinflation. 

Thu, 11/10/2011 - 10:53 | 1865849 tmosley
tmosley's picture

The degree to which the false dichotomy of "you are either a Dollar bull or a Euro bull" has warped your thinking.

The Euro is fucked.  Get over it.  Freegold is a fantasy, a transition state at best.  There is no window where you can buy Eurogold with Euros.  Period.

Thu, 11/10/2011 - 11:23 | 1865971 Motley Fool
Motley Fool's picture

out of curiosity. Do you imagine some solution or do you simply think the world is gonna end, all people are going to roll over and die?

Didn't junk you...but maybe I should have. :P

Thu, 11/10/2011 - 11:42 | 1866070 tmosley
tmosley's picture

Wow, more false dichotomies.

The world isn't going to end.  A number of governments might.  Their currencies, certainly.  But not the world.  

That is, unless they do something REALLY stupid, like instituting worldwide wage and price controls, then declare that no-one is allowed to change jobs, as they did at the end of the Roman Empire, the action which lead to more than a thousand years of serfdom.  Hopefully our technology will save us should that happen, but such things are of little consequence in the face of arbitrary authority.

Thu, 11/10/2011 - 11:50 | 1866109 Spitzer
Spitzer's picture

look at world CB holdings. You sure didnt make a good case that this isnt a Euro vs Dollar game. Typical cop-out of a closet dollar bull.

Closet dollar bulls cant stand the Euro. 

Thu, 11/10/2011 - 13:04 | 1866473 tmosley
tmosley's picture

Uh-huh, sure.  The guy who has been screaming for years to get out of the dollar is a "dollar bull".

Bull shit.

If you are wedded to paper, you'll burn with it.  Enjoy it, paper bull.

Thu, 11/10/2011 - 12:16 | 1866247 Motley Fool
Motley Fool's picture

Alright. Didn't intend to create a false dichotomy. Let me rephrase.


We agree the current system will end, relatively soon.


What then?

Thu, 11/10/2011 - 13:08 | 1866486 tmosley
tmosley's picture

Who knows?  The best case scenario is a drastically reduced federal government accompanied by free banking and circulating gold specie, perhaps alongside notes of whatever type of backing issued by private banks.

Worst case scenario is the dollar is re-issued and this crap keeps going for a few more years until all of the real capital is gone, then we collapse and become a third world economy with a strongman dictator.  Of course, if that happens, you can at least leave, said strongman won't have the power to seek out American expats outside of the borders of the US.

Most likely case is a return to a gold standard, but one "officiated" by the government.  That will allow for corruption and manipulation to seep back in until we return to the current situation within a few generations.

Thu, 11/10/2011 - 13:19 | 1866521 Motley Fool
Motley Fool's picture



I don't want to argue with you. From my perspective you are in my camp. You are buying physical gold. You do not have to understand Freegold, it is not required.

I would however  like you to read one article by FOFOA if you wish :



Thu, 11/10/2011 - 11:41 | 1866064 Spitzer
Spitzer's picture

what the fuck kind of comment is that ? There is a reason why there is a 0% tax on gold in the euro zone. Gold is also available at banks across Europe.

Thu, 11/10/2011 - 11:49 | 1866104 tmosley
tmosley's picture

Where?  Which ones?  What is the source of that gold?  If gold is available for Euros at banks, how is it that they have stopped selling gold, and are instead accumulating?  If gold is so freely available, why hasn't it all zoomed out into private hands?

All I see is waving hands. Waving hands, and the hope that somehow, some way, this time will be different, such that a paper currency that is being printed like there is no tomorrow can somehow last.

BS.  Let's see a video of someone walking into a European bank with Euros and walking out with gold from the Central Bank.

Thu, 11/10/2011 - 12:02 | 1866185 Spitzer
Spitzer's picture

Gold on the open market, just like now is available at the market price.Not tje ECB gold.  The source ? Mine supply, scrap, who ever is selling.

Show me a currency that hasnt still lasted for the use of transactions. Most Hyperinflated currencies are still in use. Even the Zimbabwe dollar. Even the Russain Ruble. 

Thu, 11/10/2011 - 12:43 | 1866336 tmosley
tmosley's picture

If the ECB gold isn't available, then there IS NO BACKING, and NO DIFFERENCE BETWEEN THE EURO AND THE DOLLAR.  If the dollar can fail, the Euro can fail.  You could buy gold with Deutchmarks early on in the German hyperinflation, that didn't make them gold backed.

The Zimbabwe dollar was abandoned, and is no longer in circulation.  All hyperinflated currencies have either been re-issued with monetary reforms or have been abandoned.  The later was the case, with the Ruble being replaced by the New Ruble.  

FOFOA will lead you down the path to ruin with this crap.  He is half right--buy gold.  But the thought that you can buy the Euro and expect to be safe is asinine.  It's a paper currency, just like any other.  I mean, here you are trying to justify holding Euros because "currencieslast for use in transactions", as if taking a 99.99% hit is no big deal.

Get real.  And by "real", I mean physical gold and silver.

Thu, 11/10/2011 - 12:48 | 1866364 Motley Fool
Motley Fool's picture

Fwiw. It is obvious you have no clue what he advocates... which is not euro paper, but physical gold only.

Thu, 11/10/2011 - 13:02 | 1866465 tmosley
tmosley's picture

No, FOFOA advocates "Freegold", a system where you have a transactional currency and a savings vehicle, which are linked only by a floating price.

The Euro is considered to be an example of this, and Spitzer here, among others, have taken FOFOA as gospel, and are now heavily invested in Euro paper.

What FOFOA doesn't realize (for some reason) is that a currency is stable ONLY BECAUSE it is used as a vehicle for savings.  If savings are implicitly divorced from the circulating currency, then you will have hyperinflation by definition.  When everyone has gold for savings, they will simply transact in gold.  Why?  Because the governments are printing the transactional currency to fund their deficits!  Even a tiny increase in a transactional currency not used for savings will destroy confidence, and lead to an immediate exponential increase in monetary velocity, as everyone rushes to get rid of paper for anything solid.  "Freegold" simply collapses into a gold standard, in the form of circulating specie, not even necessarily one issued by a government bank.

Thu, 11/10/2011 - 13:14 | 1866512 Motley Fool
Motley Fool's picture

I see.

Question. Did the zimbabwe dollar lose all value during their hyperinflation?


How about the jamaican dollar. You may not be aware but almost nobody there uses it for savings, instead using the  USD. How does that currency still exist?


Lastly : Do you even know what all the flaws in the gold standard are, and why Keynes called the gold standard ( not gold) a barberous relic?

Thu, 11/10/2011 - 13:46 | 1866622 tmosley
tmosley's picture

To answer your question, yes, it did.  The currency is no longer used for transactons, and has no value aside from novelty items for westerners.

The Jamaican dollar has fallen against the dollar by 99% since its introduction in 1968, even as the dollar has fallen by a similar amount against gold.  That is TERRIBLE inflation.  I would like to see some documentation on the assertion that no-one saves in Jamaican dollars.  They must, to some extent.  With that rate of devaluation, absent government printing, I would venture a guess that between 10 and 30% of their savings is actually in J$.  

There is nothing stopping it from going into hyperinflation.  Only perception.  And MOPE only works until it doesn't, then it doesn't work for generations.  

Thu, 11/10/2011 - 14:45 | 1866918 Spitzer
Spitzer's picture

there is no meaningful savings in J$. Think about it.And there doesnt have to be.

Thu, 11/10/2011 - 13:52 | 1866647 tmosley
tmosley's picture

Whoops, didn't see your last point.

There are many types of gold standards.  They range from gold exchanges standards where onlly foreigners can get gold for their paper, to circulating gold bullion coins from private mints, and everything in between.  The freer the monetary system, the better it is for all involved.

I could care less what that cretin Keynes thought or said.  His head was screwed on backwards, and the West will go into deline because of it.

Thu, 11/10/2011 - 13:24 | 1866546 Spitzer
Spitzer's picture

The basic concept of freegold is going on right now. Look at all the deals that china is making with Brazil and Russia denominated in their currencies yet they both still happen to have dollars that they are using as a store of value.


And there is countless examples of circulating currency that has no equity or savings behind it, yet it still works fine as a medium of exchange. 


Thu, 11/10/2011 - 13:57 | 1866666 tmosley
tmosley's picture

"Fine, fine, everything's just fine."

Is that a good summary of your outlook?

There are exactly ZERO currencies that have value (beyond novelty or as collectors' items) without savings.  NONE.  The value of the currency is proportional to the savings to issued currency ratio.  If no-one holds it, it is because no-one wants it.  If everyone holds it, it's because everyone wants it.  That's all there is to it.

Thu, 11/10/2011 - 13:10 | 1866497 Spitzer
Spitzer's picture

You walked right into that trap. Of course the Euro is not backed by gold . That is the whole point.

This is about what currency has a better chance of being the world transactional curreny going forward. The Euro that uses gold as a store of value or the Dollar which uses debt as a store of value. Me  thinks the Euro has a better chance considering the bull market in gold started almost to the day that the Euro was introduced. But if you think that the debt that  the dollar uses as a store of value that is running on a 30 year bull market has a better chance then so be it. 


Thu, 11/10/2011 - 13:13 | 1866509 tmosley
tmosley's picture

The point is NOT which of these cancer patients will die first or last.  The point is that they are BOTH GOING TO DIE, and SOON.  They are both in the hospital on life support.  The amount of money or influence one stands to inherit from the other is of zero consequence.

Thu, 11/10/2011 - 13:31 | 1866571 Spitzer
Spitzer's picture

They will both still exist for years to come, just like every other currency. 

Thu, 11/10/2011 - 13:49 | 1866628 tmosley
tmosley's picture

I have a million dollars in confederate war bonds.  You know where I can trade them in for gold?

I also have a 50,000 reichmarknote.  You think I could trade that for gold?  How should we value that?  As a DM?

Thu, 11/10/2011 - 10:59 | 1865890 qussl3
qussl3's picture

The key to who inflates more is the structural deficit.

The US is fucked in that respect.

The EU as a whole not so much.

However, there is the little problem of the EU not growing, while the US does seem to be able to stumble along.

So perhaps that structural deficit simply hasnt manifested itself in the EU yet.

Furthermore, the EU has not recapitalized its banks - yet, while the US has laid a downpayment already.

It's still a toss up between the two, with the US having address more of the underlying issues already with the printing press, can the EU afford not to go there?

Who knows.

But it would be the first time in history the bankers willingly destroy their hosts should they refuse to print.

Thu, 11/10/2011 - 11:16 | 1865954 DaveyJones
DaveyJones's picture

sterlization leaves room for error, castration is best

Thu, 11/10/2011 - 10:46 | 1865817 Rogier
Rogier's picture

Under the current program close to 100% is sterilized, so no effect on inflation let alone hyperinflation.

Thu, 11/10/2011 - 10:54 | 1865855 tmosley
tmosley's picture

Until someone defaults.  

Thu, 11/10/2011 - 11:45 | 1866081 Spitzer
Spitzer's picture


Greece is already defaulting

Thu, 11/10/2011 - 11:51 | 1866110 tmosley
tmosley's picture


Bye bye Euro.

Edit: unless, of course, someone else pays for them.  Which is likely.  But NO-ONE can pay for Italy.

Thu, 11/10/2011 - 12:04 | 1866197 Spitzer
Spitzer's picture

Did the Icelandic krone dissapear off the face of the earth or is it still in use ?

Thu, 11/10/2011 - 12:19 | 1866265 Motley Fool
Motley Fool's picture

Better question.


You are aware some Australian states have gone bankrupt before. The Aus$ didnt die. Questions :


why wasnt the australian dollar blamed as the reason for the state's demise?


Should we blame the dollar currency if a company fails?

Thu, 11/10/2011 - 13:11 | 1866500 tmosley
tmosley's picture

Was all of Australia insolvent at the time?  Did they take on the debt of those states despite their insolvency?

Differing conditions lead to differing outcomes.  The same conditions lead to the same outcomes.  Similar conditions tend to lead to similar outcomes.  The trick is figuring out how similar the conditions are between current and historical events.

Thu, 11/10/2011 - 13:36 | 1866594 Motley Fool
Motley Fool's picture

Not quite. The question is what is the link.


Some african countries use the US$. If they go bankrupt do we blame the US$? Obviously not. So why is the euro being blamed. There is a seperation between the two. It's logically inconsistant.

Thu, 11/10/2011 - 14:03 | 1866707 tmosley
tmosley's picture

Who is blaming what now?

I'm not blaming the Euro for anything.  I am stating cause and effect.  If a Euro member defaults, and those losses aren't covered by someone, they will have hyperinflation as the Eurozone crumbles under the weight of their own debt (even excluding that of the defaulted nations).  The Euro is the VICTIM of the foolish, hyperinflationary policies of the ECB, and the overspending that the central bank permitted and promoted both among its member nations and their citizens.

Thu, 11/10/2011 - 12:45 | 1866348 tmosley
tmosley's picture

Iceland wasn't on the Euro.  Even tiny Iceland caused great strain on their banks, which were then propped up by Euro governments.

Thu, 11/10/2011 - 10:26 | 1865730 slaughterer
slaughterer's picture

J. Stark, the last anti-monetizing sourpuss, has already resigned effective in less than two months--out of protest to this monetization.   Once he is gone, Mario is firing up those Heidelberg mega presses.    ZH would like Stark--let him send in a few contributions here once he is unemployed.  

Thu, 11/10/2011 - 10:26 | 1865732 thepigman
thepigman's picture

Yup, and now they've decided they can't print any more. On with the

New Europe, whatever that turns out to be, bitchezzz.....defaults,

haircuts, and bank runs galore.

Thu, 11/10/2011 - 10:29 | 1865737 lolmao500
lolmao500's picture

Well they do have to buy all the Italian debt... and that's what...310 billion euros just for 2012?

And all Greek debt, and all Spain's debt and all Portugal's debt and all Ireland's debt...

And soon enough, French debt and Belgium debt, and Netherlands debt...

And this :

Europe’s banks may need to boost capital by as much as 400 billion euros ($550 billion) to provide an adequate cushion against losses on government bonds, four times the increase estimated by the industry, according to Neptune Investment Management Ltd.


Me thinks the ECB balance sheet will be bigger than the FED balance sheet real fast.

Thu, 11/10/2011 - 10:30 | 1865751 Irish66
Irish66's picture


toilet flush

Thu, 11/10/2011 - 10:31 | 1865754 Duffminster
Duffminster's picture

Well, they either inflate the unrepayable debt or they allow a global long term depression and a destruction of the in place financial order.   It seems clear that the first is likely less chaotic.  In the meantime hopefully humans will discover huge techological and energy efficienies, we'll begin slowing population growth and so on.

Got gold?

Thu, 11/10/2011 - 10:31 | 1865755 Duffminster
Duffminster's picture

Well, they either inflate the unrepayable debt or they allow a global long term depression and a destruction of the in place financial order.   It seems clear that the first is likely less chaotic.  In the meantime hopefully humans will discover huge techological and energy efficienies, we'll begin slowing population growth and so on.

Got gold?

Thu, 11/10/2011 - 10:32 | 1865759 holdbuysell
holdbuysell's picture

First the the ZH article on the DM and Merkel from yesterday and now this: Germany's getting ready to pull the plug on the Euro.

Thu, 11/10/2011 - 10:36 | 1865774 thepigman
thepigman's picture

Hey, do we invite all our broke family members to come live with us?

I didn't think so.

Thu, 11/10/2011 - 10:33 | 1865760 fourchan
fourchan's picture

the fiat money system is about to devide by zero.

Thu, 11/10/2011 - 10:34 | 1865763 Peter K
Peter K's picture

Euroland is the  supranational business model of Northern Rock. Borrow short and lend long. But when the MM froze out Northern Rock, the UK gov bailed them out. But when the MM froze out Euroland, the Fed is keeping them alive, but not owning them. And the question that begs to be asked, and what Mr. Market wants to know is.... wait for it.... who will own Euroland:) It's just that simple:))))))

Thu, 11/10/2011 - 10:37 | 1865781 bernorange
bernorange's picture

Fiat tradition bitchez!

Thu, 11/10/2011 - 10:38 | 1865789 knight99
knight99's picture

Serious question for all you guys out there.

Why would Weber leave when he is next in line at the ECB? Why wouldnt he just stay and say I will not be the lender of last resort so deal with it. Why would the German give up the control of the ECB to an Itlian when Italy will need bailouts.

Thu, 11/10/2011 - 10:50 | 1865832 Lord Welligton
Lord Welligton's picture

Yes. The Germen exodus is interesting.

Are they planning to leave?

Thu, 11/10/2011 - 10:54 | 1865862 sabra1
sabra1's picture

when his body is riddled with bullets, found hanging, lungs filled with water, it will be deemed a suicide! 

Thu, 11/10/2011 - 10:55 | 1865864 thepigman
thepigman's picture

Because "go fuck yourself" sounds better in Italian?

Thu, 11/10/2011 - 10:57 | 1865874 IBelieveInMagic
IBelieveInMagic's picture

Yeah, Germany wants to eat the cake (devalue Euro to keep their businesses competitive) and keep it too (not be seen as encouraging policies that may stoke inflation)...

Thu, 11/10/2011 - 11:49 | 1866098 schadenfreude
schadenfreude's picture

Each country has ONE vote about ECB money printing. Better to stay away from the ECB, then to be overruled each and every time.

Thu, 11/10/2011 - 10:40 | 1865796 common_sense
common_sense's picture

more bailout, more money to the banks... and so on... tired of all these politicians, they only know to give money to the banks, managers and friends ot them...go to hell.

Thu, 11/10/2011 - 10:43 | 1865807 SheepDog-One
SheepDog-One's picture

Well, the one GOOD part about all this is that its all now SO blatant and in everyones face total corruption that even the total sheeple are calling BS on it all.

Thu, 11/10/2011 - 10:43 | 1865803 yogibear
yogibear's picture

Responible countries have an obligation to protect their currency and solvency. Germany has experienced hyper-inflation, the US has not. Perhaps Bernanke and the Federal Reserve Bankers in the US need a run on their currency and experience hyper-inflation. Instead of his PhD thesis and ivory tower papers on the great depression he will realize the real life reactions when he pushes his theory too far. 

Thu, 11/10/2011 - 10:47 | 1865819 HD
HD's picture

Slut.  Giving it away to everyone...but me.

Thu, 11/10/2011 - 10:47 | 1865820 youngman
youngman's picture

Two things come to my little mind....say you are a thrid world country...with some Euros...and Dollars for that matter....what do you do......

And what if you are a are you to plan your future for the next 5...2..1....even a week ahead.....when the markets are changing so fast....I would just turtle.....and I am a risk taker....

Thu, 11/10/2011 - 10:51 | 1865838 sabra1
sabra1's picture

why! you buy canadian real estate! it only goes up!

Thu, 11/10/2011 - 10:48 | 1865826 YesWeKahn
YesWeKahn's picture

Finally, I will be billionaire before I die. Awesome american dream thanks to the idiots central bankers.

Thu, 11/10/2011 - 10:49 | 1865830 longonSpam
longonSpam's picture

€€€€€€€bang it while u still got it€€€€€€€€

Thu, 11/10/2011 - 10:52 | 1865842 canuck
canuck's picture

Yeah, like you couldn't introduce reserve requirements....oh sorry everybody I farted.

Thu, 11/10/2011 - 10:59 | 1865884 fonzanoon
fonzanoon's picture

If they printed 1.1 trillion dollars this year and we printed at least 600 billion I would have guessed gold would be much higher. How much has to be printed to get gold to 2,000?

Thu, 11/10/2011 - 11:35 | 1866043 qussl3
qussl3's picture

That would depend on how much GLD they printed i suppose.

Thu, 11/10/2011 - 11:02 | 1865910 SHEEPFUKKER

Phuck it. I'm printing 1 trillion oz of gold.

Thu, 11/10/2011 - 11:08 | 1865931 unununium
unununium's picture

Once you've got people handing over their food produce, property, LABOR, and literally everything else in exchange for a fictional construct that you create like magic at the touch of a button, wouldn't you be a FOOL not to exploit this power for as long and as aggressively as possible, BEFORE even considering relinquishing the power?

The Fed knows this and surely the ECB does too.

Thu, 11/10/2011 - 11:10 | 1865941 Canucklehead
Canucklehead's picture

Being that this is Europe, and the present decision-makers will be long gone when the SHTF, it is reasonable to assume that a "NEW" secret agreeement or treaty has been agreed to addressing how to deal with the "ILLEGAL" actions of the ECB which were an attempt to save the europeans from themselves.

I fully expect Germany has extracted a concession that outlines how the ECB debt will be put back on the countries that used the ECB backstop.  I do not expect the concept of bankruppcy or default will last through the breakup of the ECB.  A legal jursidicion of sorts will be convened to determine the merits/demerits of the ban"krupp"cy of the ECB.  Time will be taken to ensure the proper decision is reached.

I fully expect a cram-down on all outstanding ECB debt that was illegally garnered by the south europeans.  They have no friends.

As for the thought that the German export markets will take a significant hit, I do not expect the elite in Italy, Greece, et al to drive Ladas in the future.  The elite will have made money on the ECB bankruppcy.  They will spend it as they always have.

Thu, 11/10/2011 - 11:13 | 1865949 Catullus
Catullus's picture

And for some historical perspective: this is exactly why the EU and the French agreed to German reunification in the 1990s. Europe has been in this mess for nearly 20 years. The ECB is the bad bank concept. It's literally being tried in front of your eyes. And everyone from Mitterand to Greenspan knew this would end this way.

Germans, throw off your occupiers. The war ended 80 years ago. Let these people go bankrupt.

Thu, 11/10/2011 - 11:42 | 1866058 steve from virginia
steve from virginia's picture

One trillion down, another thirteen trillion or so to go:

Actually, total euro-denominated public and private debt is probably more like fifty trillion euros rather than 14 trillion, with the bulk held overseas by 'saver' nations such as China. What the ECB must do is convert the debt in one account to debt in another account, changing its from derivative to cash (yet another derivative) and do so in a big fucking hurry.

Ten trillion is a pretty far cash mountain to climb yet that is where any hyperinflation must dwell.

This currency creation must overcome the currency destruction that takes place as EU establishments deleverage. I personally doubt the ECB can keep the pace as it must answer the demands put upon it by its clients (owners) and 'friends' first. The ECB will have its hands full w/ bank runs popping up in unforseen places such as in Germany.

Jawohl, Bitchez!

Thu, 11/10/2011 - 11:45 | 1866084 Dick Darlington
Dick Darlington's picture

We do not know the most critical answer: are German members of the ECB fighting a battle that has already been lost? In other words, will the destiny of the ECB be to print a couple of trillion Euros to buy or lend against sovereign debt for the next several years? Until European policymakers answer this question, investors cannot be expected to have a lot of confidence in its markets or in its institutions.


And if they start printing those couple of trillions that should bring back the CONfidence? Uh huh... But coming from someone working for the big giant fraud called JPM it shouldn't surprise. After all it's almost christmas bonus time...


Thu, 11/10/2011 - 14:19 | 1866788 lookma
lookma's picture

For anyone who thinks that the ECB is some pristine virgin which has barely been touched in that special monetary printing place, we, or rather JP Morgan's Michael Cembalest, has some news for you: "To-date, that’s what the ECB has done: of the 1.1 trillion Euros extended to European banks and governments (through sovereign/covered bond purchases and repo), 970 billion has been given by the ECB."

Weird, I just read a piece that said:

Altogether the ECB has monetized, granted with sterilization for now until of course Europe's banks end up being unable to sterilize these purchases and the ECB ends up holding the full unsterilized bag, a whopping €188 billion since its inception in May 2010.

The ECB monetized 188 billion in euros that was sterilized.  The FED has monetized much more, no?  The Fed monetized much more than the ECB's 970 billion in guarantees in QE1 alone.

And when compared to the 970 billion credit guarantee number, the FED has extended far, far more in credit guarantees, no?

Maybe not a virgin, but she ain't a whore yet.



Thu, 11/10/2011 - 21:30 | 1868491 smiler03
smiler03's picture

+1 Well spotted! So even Tyler gets confused?

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