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Albert Edwards: "The Eurozone Crisis Will Get Much, Much Worse" And "The ECB Will Print"

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Thu, 10/27/2011 - 08:01 | 1816569 MiningJunkie
MiningJunkie's picture

Just BTFD and remember that raising cash is raising shit. Eurozone and U.S. bankers are trashing the integrity of their respective currencies and they know it. SHORT cash; don't go LONG of cash by selling assets like stocks and commodities. The worst trade EVER in Zimbabwe was selling stuff to buy cash because you wanted to get "defensive".

Never underestimate the replacement power of equities within an inflationary spiral.

Ask an old German how 1921-23 was....


Thu, 10/27/2011 - 08:05 | 1816577 SheepDog-One
SheepDog-One's picture

In the Weimar Republic the people had the money, today the people are broke and the banks hoard the printed up fiat.

Thu, 10/27/2011 - 08:31 | 1816649 agent default
agent default's picture

And that's why stimulus programs will fail.  Banks will not be able to lend, not because they don't have liquidity, but because there is nobody credit worthy, or willing to get into debt.  This fine point is however seems lost to our Great Dear Leaders.

Thu, 10/27/2011 - 08:35 | 1816657 MillionDollarBonus_
MillionDollarBonus_'s picture

"Italy's low tertiary education achievement stands out (Figure 3)”

This is what I've been saying all along. The public is clearly not educated enough to be setting prices. This is why top European economic advisers convinced European politicians to implement a short sale ban on financial stocks and sovereign credit default swaps. Top economists understand very well that the publics' perception of reality is irrational and uninformed, and this is why they are proactively seeking price controls to stabilize the markets. Goodness knows the mess we'd be in without price controls on interest rates and wages, which have delivered upward mobility and social stability despite prevailing free market forces. I genuinely believe that the current economic system is falling apart, and it is time for us to build a new world economic order in which only professionals are able to control capital allocation, for maximum prosperity, liberty and freedom.

Thu, 10/27/2011 - 08:45 | 1816703 machineh
machineh's picture

Good to see you here at ZH, Professor Kurgman!

Thu, 10/27/2011 - 14:43 | 1817440 sqz
sqz's picture

fundamental question boils down to whether the opportunity cost of being part of the eurozone and funding the entire continent is greater than the loss of returning to the Deutsche Mark and abandoning the implicit peg which has kept the country's "currency" about 50% lower than its fair value since 1999.

Germany is too addicted to their export market which at €1.15 trillion accounts for more than 30% of GDP per year. Re-introduction and revaluation of D-Mark by 40% minimum would dramatically increase their costs of exports and introduce their former captured members of the Eurozone as competitors. If the EZ remained intact it would devalue considerably, if it broke-up and sovereigns returned to domestic currencies, they would devalue even further than within the Euro. Regardless, Germany would be fully exposed to not only some already powerful export markets, but competitors with devalued/devaluing currencies, including US dollar. Weigh all this against reducing the future purchasing power of German taxpayers (or to be more specific the future purchasing power of the creditor nations within the EZ).

In my opinion, that makes it inevitable, particularly in the context of a slowdown in global growth, that Germany will *first* allow the ECB to keep expanding their balance sheet, printing and becoming a lender of last resort (very shortly) and then be possibly forced to leave the Eurozone much later, at least two to three years from now.

This is likely why gold has resumed an upward trend. The printing presses are here to stay, even by the ECB, and even if they are no solution to anything.

It's a printing war out there. The US is smacking everyone else around with $14+ trillion in bailouts since 2008, but the ECB will soon join the big guns with €2+ trillion.

Thu, 10/27/2011 - 08:48 | 1816717 Sophist Economicus
Sophist Economicus's picture

Either you're joking (very funny) or you're a joke (sad)

Thu, 10/27/2011 - 09:31 | 1816879 Going Loco
Going Loco's picture

He is an agent provocateur. All her posts are like this. It's either sarc or sick, no way of knowing which at this stage.

Thu, 10/27/2011 - 10:57 | 1817225 Errol
Errol's picture

'Tis splendid satire : )

Thu, 10/27/2011 - 09:29 | 1816863 Shocker
Shocker's picture

I have a good feeling that this bailout package is going to work ......:)

Thu, 10/27/2011 - 10:05 | 1817015 MantiXX
MantiXX's picture

OT- I know I'm new here but can you actually respond as a person?  I think you're a CIA BOT.  One of those new AI BOT's thay've got for trolling the net and posting positive govt crap. Seriously, if you're not, post something a human would say, not this perfectly contrived crapola thats always so pro big govt.


Thu, 10/27/2011 - 10:30 | 1817119 BigJim
BigJim's picture

Excellent trolling. Thanks for the laugh!

Thu, 10/27/2011 - 10:47 | 1817191 pupton
pupton's picture

Yes, the market is too stupid to function and must be led by the hand by central planners...Sheesh...it's funny when you actually see somebody who believes that horse manure...

Thu, 10/27/2011 - 12:20 | 1817556 BadKiTTy
BadKiTTy's picture

Hahahaha....... Quality"
Please keep it up. You really do give me the best laugh of the day. :)


Thu, 10/27/2011 - 08:31 | 1816650 He_Who Carried ...
He_Who Carried The Sun's picture

OkOk, but in the meantime I am going to get long in order to make some doe, if that is alright with you...

Thu, 10/27/2011 - 08:36 | 1816668 SheepDog-One
SheepDog-One's picture

Go for it, no one stopping you. Im out here though to hell with this. Have fun!

Thu, 10/27/2011 - 09:00 | 1816758 He_Who Carried ...
He_Who Carried The Sun's picture

"The U.S. economy grew modestly over the summer after nearly stalling in the first six months of the year, lifted by stronger consumer spending and greater business investment.

The Commerce Department said Thursday that the economy expanded at an annual rate of 2.5 percent in the July-September quarter. That's nearly double the 1.3 percent growth in the April-June quarter, and a vast improvement over the anemic 0.9 percent growth for the entire first half of the year."

If it wasn't for the unemployment we'd be back on our way to happy days, but the US won't hire until multinationals get a deal to repatriate their EX-US stockpile of cash and as they're making money anyway, incentive and pressure to do so is very low...

As the US 4th quarter is usually the strongest, risk is ON now... I'll wade back in....

Have fun!

Thu, 10/27/2011 - 08:28 | 1816636 PY-129-20
PY-129-20's picture

lol - this is beyond comical. I just read some of the online newspapers here. And almost all of them are bowing down in front of Angie. Like Angie saved the entire world or so. Then you scroll down to the comments and see people running amok, really pissed off about this entire deal. Not one positive opinion. Surreal. Like this whole charade. Affenzirkus.

Thu, 10/27/2011 - 08:36 | 1816670 agent default
agent default's picture

You know, it shocks me.  These EU/FED assclowns are totally oblivious to what is glaringly obvious to the average man on the street.  To tell you the truth, I don't really care how the crisis will play out anymore, i think that it is fairly obvious by now.  but when I begin to realize the total disconnect between the people making the decisions and reality/arithmetic, and the arrogance with which they make and enforce their decisions, I get very scared indeed.

Thu, 10/27/2011 - 09:04 | 1816775 PD Quig
PD Quig's picture

"The increasingly frenzied attempts of eurozone governments to persuade financial markets that they can draw a line under this crisis will ultimately fail..."

Keyword? "Ultimately."

These fuckers are willing to destroy anyone and anything in their quest to avoid paying the price of their fuck-ups. Unfortunately, we're all going to go down the tubes together. "Ultimately."

In the meantime, there is NO asset class that won't be pissed on. Time for some domestic drone strikes.

Thu, 10/27/2011 - 09:17 | 1816834 falak pema
falak pema's picture

its arrogance and desperation. The whole western power structure depends on this, as war, the OTHER option, is verboten since the Cuban crisis days.

Thu, 10/27/2011 - 12:07 | 1817489 4horse
4horse's picture

The whole western power structure depends on this, as war, the OTHER option, is verboten since. . .  when

Thu, 10/27/2011 - 09:07 | 1816788 He_Who Carried ...
He_Who Carried The Sun's picture

You do not bet against the FED

AND you do not bet against ANGIE...

She has shown her quality as Europe can not be allowed to sink!

Where would the world go in that case? Back to petty fiefdoms?

Simple! ;-)

Thu, 10/27/2011 - 08:55 | 1816743 LawsofPhysics
LawsofPhysics's picture

Sure, and how did that work out for all those people going long from 1920-1929 again?  Got physical?  You better.

Thu, 10/27/2011 - 09:11 | 1816802 He_Who Carried ...
He_Who Carried The Sun's picture

I do not expect to be long for the next 9 years my friend, only until X-mas, perhaps April... ;-) Here are forces at work far stronger than you and I and they're pointing UP right now and I must put something on the table... ;-)

Thu, 10/27/2011 - 10:00 | 1816992 LawsofPhysics
LawsofPhysics's picture

I have something on the table and I think it may last through June even.  You are right,  the question remains, for how long do we run?  Where in that 1924-1929 market melt-up are we?

Thu, 10/27/2011 - 10:21 | 1817084 He_Who Carried ...
He_Who Carried The Sun's picture

That depends entirely on China and I think they will do all they can to mask any real trouble coming their way for some more time... Despite of all bullfrog twitter, they have a lot of firepower to camouflage things a bit longer...

Thu, 10/27/2011 - 10:41 | 1817163 LawsofPhysics
LawsofPhysics's picture

Right, never discount an entire society with that kind of power (growing every day) that will do exactly as they are told.

Thu, 10/27/2011 - 11:44 | 1817387 He_Who Carried ...
He_Who Carried The Sun's picture

Its a sad truth, but a truth nonetheless.

Thu, 10/27/2011 - 08:06 | 1816575 gojam
gojam's picture

This Monday 31 Oct, it will be exactly 594 years since Martin Luther nailed his 95 Theses to the Wittenberg Church door.

The printing press ensured that the Roman hegemony was brought to an end.

Time for a new 95 Theses and for the Internet to take down this dishonest system.

Thu, 10/27/2011 - 08:17 | 1816608 I am more equal...
I am more equal than others's picture

Luther nailed it to a church in Germany - now Germany has nailed it to a door in Brussels.


Kann es gibt eine größere Lüge als dies

Thu, 10/27/2011 - 08:25 | 1816620 LongSoupLine
LongSoupLine's picture

Die Wormser Dom im Baden-Württemberg .

Lived a mile away from it.

Thu, 10/27/2011 - 08:25 | 1816624 gojam
gojam's picture

It's the entire system of modern Indulgences and Simony that needs to be reformed, Germany is just part of that system.

Thu, 10/27/2011 - 12:17 | 1817536 4horse
4horse's picture

. . . and luther, as he would later learn, Eureka! and otherwise write, splattering alot more than 95feces alot further than some great schismatic churchdoor, turned out to be underwritten by just whom . . .




Thu, 10/27/2011 - 08:04 | 1816576 SilverIsKing
SilverIsKing's picture

Albert Edwards: "The Eurozone Crisis Will Get Much, Much Worse" And "The ECB Will Print"

SilverIsKing: "The Eurozone Crisis Will Get Much, Much Worse" And "The ECB Will Print"

(Your Name): "The Eurozone Crisis Will Get Much, Much Worse" And "The ECB Will Print"

Not hard to figure this one out.

Thu, 10/27/2011 - 08:43 | 1816696 bernorange
bernorange's picture

Let us consult the Book of Armaments,  chapter two, verses nine through twenty-one ...


Thu, 10/27/2011 - 08:06 | 1816579 reload
reload's picture

Sounds about right: In the end they will print, looks like todays action is already discounting it as imminent.

Thu, 10/27/2011 - 08:06 | 1816580 No Mas
No Mas's picture

Here's a hint.  Whatever information ZH posts to indicate the ruination of all things fiat will be proven wrong.  "Bank" on it!

Thu, 10/27/2011 - 08:11 | 1816593 reload
reload's picture

What do you mean by `ruination`?

Fiat nalue will continue to be destroyed - no question

will it be the medium of exchange for the foreseeable - yes.

Will you be ruined by holding fiat and nothing but fiat - yes, the trend of fiat depreciation will accelerate. If you think otherwise.....book a room in the poorhouse without delay.

Thu, 10/27/2011 - 09:02 | 1816770 falak pema
falak pema's picture

you misread him; he meant urination. As for your comment on holding fiat : unless its a Fiat cinquecento!

Thu, 10/27/2011 - 08:11 | 1816594 SheepDog-One
SheepDog-One's picture

Until suddenly theyre proven right, it will be an ugly day. 

Thu, 10/27/2011 - 08:28 | 1816632 LongSoupLine
LongSoupLine's picture

Thank you Fed intern troll...I mean "no mas" (wink, wink).

Thu, 10/27/2011 - 08:07 | 1816582 malikai
malikai's picture

Gold is fading the fuck out of the EURUSD cross.

Thu, 10/27/2011 - 08:10 | 1816589 Debtless
Debtless's picture

Shorts never learn, and rarely get the timing right. Only insiders.

Thu, 10/27/2011 - 08:10 | 1816591 The Axe
The Axe's picture

Of course this is all true...its also true that the Dow has exploded in the last 3 weeks..A massive rally...massive....

Thu, 10/27/2011 - 08:14 | 1816599 SheepDog-One
SheepDog-One's picture

And just think...all based on nothing. People can chase this all they want, Im not no thanks.

Thu, 10/27/2011 - 08:13 | 1816598 Taint Boil
Taint Boil's picture



Like Mish says:

No structural problems have been solved ......

Thu, 10/27/2011 - 08:15 | 1816603 TradingJoe
TradingJoe's picture

What goes up must come down! Today is epic for going short and stay that way! We are up 18% and counting on the S&P!!! The "pause" will be scary!

Thu, 10/27/2011 - 08:20 | 1816605 Diarhea
Diarhea's picture

When?! When is this artificial rally gonna end and be corrected?!

We're all screwed with that OBVIOUS pm's price manipulation.

Thu, 10/27/2011 - 08:16 | 1816606 Everybodys All ...
Everybodys All American's picture

Angela does not have the leadership or backbone to leave the EU. She will be run out of office I suspect and then the Germans will leave.

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