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Are The Europeans About To Start The Second Half Of Our Great Depression?

Tyler Durden's picture




 

"Just when we think the worst is over - and let's face it we have been in this crisis for five years - we get the second half; are the Europeans about to start the second half our Great Depression with massive bank runs" are the Jaws-music-inspired words that recent media-favorite (yes, us too) Niall Ferguson uses in an interview with CBC. His main concern is that this kind of (bank-run) event can quickly spiral out of the control of even the ECB as he uncomfortably conjures the image of the initial US stabilization that occurred in 1930 to May 1931 only to be knocked back into a greater depression by the failure of Credit-Anstalt, which set off bank failures and eventually defaults in 1932 on many government debts. The deposit run potential is the single-biggest reason to care about Greek-exit - in itself it is not large enough economically to interfere with global growth but it is the message and contagion that it sends that is critical in bringing forth a pan-European banking crisis and implicitly spilling over to the US and Asia via global trade and banking transmission channels. An excellent brief interview that summarizes the exact fears that face Europe and implicitly the US, explains the rather simple solution of fiscal federalism and the fact that today's German politik is very different from 1989's Helmut Kohl-era with regard to their commitment to the Federal outcome. His conclusions are worrisome. Germany is the key - and there is not a good understanding of financial markets in Berlin.

Six minutes well-spent on a Saturday evening...

 

Europe is a part of North America's destiny because the financial systems are so intertwined - and remember even the all-knowing Fed massively under-estimated the second-order effects of Lehman.

"It's a total fantasy to think that the meltdown that I am discussing that could happen in a matter of weeks would not have a major impact on North America's prospects of sustained recovery."

 

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Sat, 05/26/2012 - 20:04 | 2466285 Aziz
Aziz's picture

I like how bearish Ferguson has gone, maybe he has spent less time talking to Henry Kissinger and more time reading Zero Hedge?

Sat, 05/26/2012 - 20:09 | 2466294 zilverreiger
zilverreiger's picture

He is one of those NWO think tank shills, and this is the third post with him in it this weekend...

All we need now is more stratfor post. Stop shilling for the slavemasters pipers ZH.

Sat, 05/26/2012 - 20:11 | 2466298 Joe The Plumber
Joe The Plumber's picture

You understand we should keep our friends close and our enemies even closer

Sat, 05/26/2012 - 20:50 | 2466365 brooklynlou
brooklynlou's picture

Easier to fart on them in case of emergency ...

Sat, 05/26/2012 - 22:02 | 2466496 fightthepower
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Wow!  A Toole of the Rothschilds wants to consolidate power in the hands of a larger European state.  Well, at least Europeans will know for sure of who to fight against if they want to remain free.  Its do or die time for the Rothschilds.  No doubt if they don't get their European super police state, they have  a plan "B".  Plan "B" is hyperinflation and war.  Or perhaps deflation and war. 

Fuck you Rothschilds! 

I won't fight your war. 

Sat, 05/26/2012 - 22:27 | 2466525 Colombian Gringo
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Yeah, fuck you rothchilds, I am available for your use. Signed Modern American Woman.

Sat, 05/26/2012 - 22:39 | 2466551 knukles
knukles's picture

Was the article headline a rhetorical question or will it be an open and closed book test?

Sun, 05/27/2012 - 00:06 | 2466671 The Monkey
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This article is a contrary indicator.  Time to get bullish on stocks.

Sun, 05/27/2012 - 00:44 | 2466693 Pinto Currency
Pinto Currency's picture

 

 

Talk about "scanty notions" - the idea that we are facing Greek contagion as the source of the impending crisis is silly.

There is $65 trillion of outstanding debt in the Euro system and $55 trillion of debt in the US system.  A debt bubble, blown by central planning and central banking, that is now collapsing.

Niall's solution is more centralization. 

This guy barely qualifies to organize bridge tournaments at old age homes.

 

Sun, 05/27/2012 - 02:36 | 2466756 Oh regional Indian
Oh regional Indian's picture

Not sure how many picked it up. At about 2 minutes something, he says "Greece is only a smaller COLONY".

That, my friends, is what is called a slip of the Tong-you!

Yes, Greece is one of the smaller colonies. Hot diggity. Whos is the master? Is Niall still just "stuck" in the hoary, gory past? 

I believe he just let the cat out of the bag.

Just to extend the arguement a little.

1. Germany is at the heart of it all in Europe. Powerhouse. Merkel is Iron Balls lady of europe.

2. UK is a basket case at every level, socially, financially, fiscally, literally.... It's all about the COLON-ial past. The present is UGLY. But it is ruled, with an iron fist mind you, appearences aside, by the Saxe-Coburg Gotha family. Germanic, changed to windsor only when their German background became un-tenable and un-explainable after the end of WW1.

3. Any country that was a former colony, is still a colony as far as GB is concerned (by law, by treaty, by governor-generalship... Oh Canada, and here you thought you were a free nation). The great commonwealth scam.

It's a deep hole, but this is precisely why it's obvious that this is all just so much theater.

As an interesting aside, last time Niall was in India, he shared the stage with Sarah Palin.

Hah!

ori

and-tips

 

Sun, 05/27/2012 - 03:28 | 2466786 Illya Kuryakin
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No he said Greece is only a small economy. You can sit down now.

Sun, 05/27/2012 - 03:56 | 2466805 JOYFUL
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Ok, but it was a good rant....

hey Ilya, is that yur shoe phone ringing, (or was that GetSmart?) Oh for the days when spies were just spies, not dual citiizens.

fyi, ori...

Goth-Saxe, and the rest of the teutonic tribe don't really run things any more than the last few Mogul Emperors really ran anything outside of the palace gates...there's another tribe in charge of that, tho few dare mention them by name...we use the polite euphemism Anglo-American ascendancy instead

Sun, 05/27/2012 - 04:30 | 2466816 Harlequin001
Harlequin001's picture

yes, why spoil a good story for the sake of a few simple facts, eh?

Sun, 05/27/2012 - 07:15 | 2466878 clymer
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Although I respect Mr. Ferguson tremendously, I much prefer his late night talk show to his incessant cheerleading global federalization of central banking in the hands of private families who have indeed demonstrated that they do not deserve that control.

 

http://www.youtube.com/watch?v=2ShyH-3xkiE&feature=related

Sun, 05/27/2012 - 10:04 | 2467012 Popo
Popo's picture

This is not so much a bearish "prediction" as it is a bearish "threat".  This is standard NWO Niall Ferguson using bearishness to sway public opinion away from anything other than a Federal Europe.   

Listen carefully to what Ferguson is saying, because it's a very clever switcheroo.

What Ferguson said is that the entire idea of a monetary union ("if one goes back to 1989") has always been an eventual Federal Europe.  This is PATENTLY FALSE.   The monetary union proponents swore up and down that a Federal Europe was not on the table in order to push the monetary union through.   To suggest now that Germany is somehow deviating from the original plan is a COMPLETE re-writing of history.

...which is what Ferguson is best at.

Ferguson is trying to position Germany as a player that is somehow defying consensus, and breaking with what was a supposed unwritten pact between European nations.

This is ABSOLUTELY counter to Maastricht which is very clear about the union being monetary, and about sovereign nations retaining sovereignty.   Ferguson is attempting to position Germany as a "bad player".   But there is no possible reading of Maastricht to support this.

He's full of shit.  And he's attempting to use Henry Paulson-style "scare tactics" to ram through a Federal Europe at the last minute. 

When one considers that a Federal Europe represents a conquering of all sovereign nations in one fell-blow,  Ferguson is basically trying to push through the ultimate blitzkrieg.   

 

Sun, 05/27/2012 - 10:23 | 2467036 mcguire
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glad to see so many ZH posters clearly identify NF as a globalist cheerleader.   what makes less sense to me is how this will play out.  starting with the maxim "order ab chao", and with the premise that the ultimate hegelian synthesis desired is Federal Europe, i simply do not see how the "threat" of a series of bank runs get you there.  just the "threat" is simply not enough chaos to justify the new order.  the savior (centralized power) is still too much associated with the cause of the problem.  

no, i would argue that the bank runs, and subsequent global ripple effects, a derivative explosion, and a massive global destruction of paper wealth and consolidation of real assets under statist power will be necessary.. the chaos must be "9/11-style", must be palpable.. a simple underwear bomber will not do.  

so then what is NF doing here?  i would argue that it is more "predictive programming"... as in "we told you the solution before it was too late..."

more chaos is needed.  

Sun, 05/27/2012 - 11:16 | 2467089 Surly Bear
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Make no mistake: this is the second great depression. We have improved our relief delivery systems, that is, we no longer need bread lines or soup kitchens because we have a host of alternatives; however, this is a depression, we are all suffering, and will continue to suffer. 

Sun, 05/27/2012 - 11:24 | 2467097 Popo
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And make no mistake, that during depressions we will see the ultimate power-plays for world domination.

The "Federal Europe" that Ferguson is pretending has "always been the idea" is one such power-play.

The banks are very close to not only controlling their respective sovereign nations -- but to subjugating them via an extra-governmental body which they are calling a "Federal Europe", but which is really the ECB with unlimited power.

 

 

Sun, 05/27/2012 - 12:56 | 2467269 dracos_ghost
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The banks are very close to not only controlling their respective sovereign nations -- but to subjugating them via an extra-governmental body which they are calling a "Federal Europe", but which is really the ECB with unlimited power.

 Just like the Fed in the US.

 

Sun, 05/27/2012 - 16:10 | 2467563 Pinto Currency
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Highly recommend "The Ascent of Hooey" by Bob Landis that shows Niall Ferguson's deceptive chatter for what it is:

 

http://www.goldensextant.com/commentary36.html

 

 

 

Mon, 05/28/2012 - 02:59 | 2468602 FlyPaper
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Regarding Ferguson & the DeLors commission:  

From my reading, DeLors was a *staunch* Federalist (and President of the European Commission).   Maasricht was de-federalized and very much depended on the members following the fiscal prudence laid out in the treaty.   If they didn't, it wouldn't work (my quick synopsis, but there is a lot of history about this going back to Bretton Woods).    It also appears that the present-day "blow up" was very much discussed.

So Ferguson isn't making anything up when he goes back to Delors - its just that the European sovreign countries were unwilling to do the Federalism approach.  They appear to have continued with the EURO on the grounds that the members would follow the fiscal disciplines.  At the onset this was predicted to be harder for the smaller European countries.

At this point without the Federalism, the system is likely to collapse, since the guardrails were breached by pretty much all member states.

There is no way that a Federal system is going to be put-into-place in time to stem the banking crisis (which may well deepen); so what is the EU left with?   The alternative is a full-European coup ala the European Parliment / bankers / et al.

Not that I don't think Ferguson isn't FOR the Federalism; but at this point, short of it - COLLAPSE should be expected.

The MAJOR thing I picked up on was the game could be up, and the crisis on, within as little as a few weeks.

-->  While we see rehashed plan-after-plan that generates liquidity through monkey-business Euro-bonds.  In every case, Germany is expected to fill the hole.   I think this is impossible.  The Germans do not have the ability to bail everyone else out.  

 

 

Sun, 05/27/2012 - 07:47 | 2466874 Oh regional Indian
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Joyful, I hear you. 

But then , if one keeps diving into the rabbit hole of who controls who and what, around the top of the mountain, as it should, things get misty.

The Order of the Garter is one of those dis-orders that give one pause for thought. They (Brits) got Japan a long time ago when they made one of Japan's puppet emperor's a member of the garter clan. He promptly sold off his country, it's gold, the works. Very select membership.

Then there His Nastiness pRince Phillip with the WWF and clearly stated Eugenic goals. And the Royal Family holdings, by treaty, massive. Check this out when you have the time, good set of videos, all very intereting and thought-provoking.

http://musicians4freedom.com/2011/09/30/22974/

But then the Q bows to the Lord Mayor of the City of L. Hmmmm...that throws a spanner because it means the red-crossed ones are the big daddies.

And then there is the Vatican. 

Oh, did I mention the reptilians? Anyways,.. y'see?

Actually, what DO you see? Looks like Turkey is being played as the Israel foil. Do turks understand that? 

Because it makes sense that Constantine's spawn will ultimately go home to roost?

ori

EDIT: He did say Economy, dagnamit...

Sun, 05/27/2012 - 13:16 | 2467299 JOYFUL
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Turks are playing the long game against powers they know to be capable of suicidal mania...they aim to come out on top no matter who wins.

Their fear of the Persians' innate cultural superiority makes them unable to ever fully commit to going with the east, whilst they know well that the sionist entity which controls the west has designs on regaining control of all of the 'sacred' sites of the sabbatai, and also have a major revenge complex for the Ottoman's showing up the sevi as a pathetic kind of sideshow bob loser back in the C17th.

Fact is, these millenialist maniacs have designs on all the cabbalist power centers of their european travels...the whole CLUB MED collapse has been engineered to regain the ascendancy of the venetian banking power and their lurianic blackmagician metaphysics...Italy, Spain and Greece are all being lined up for a neofeudal nightmare run from Salonika.  Turks have a long history as pillagers...they wait and go for the spoils, after the fighting is over...and the Germans are merely clownish backstoppers in short pants for the puppetmasters with the anglicized names.

Sun, 05/27/2012 - 13:24 | 2467310 Oh regional Indian
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My plane had force-landed in Constantinople (Istanbul) airport. Cracked Windshield on a 747 (FWIW).

I have to say, back then (1995), there was a very menacing energy all around. The Military were everywhere, very guns forward....it felt opressive. 

Though the cty, with it's reachiing minarets looked amazing.

Definitely on my visit list.

Thanks for your POV. The energy in the ME is just so crazy. All because of oil. Mammon.

ori

Sun, 05/27/2012 - 15:33 | 2467482 Ahmeexnal
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Turkey will have a hard landing.

Once the eurozone collapses into another Dark Ages  and without NATO support, Turkey will have to face justice for Meds Yeghern and the ongoing genocide against the Kurdish nation.

Turkey will take a considerable territorial loss once the Kurdish nation is established.  However, that will be offset by considerable territorial gains as Turkey will lay claim to vast areas of Germany, where turks (and moslems in general) are already being labeled as a threat to the "purity" of Germany.

The eurozone will crumble and give rise to the rebirth of a euro-caliphate.

Time to go long tinfoil fezzes.  Or is tinfoil feces?

Sun, 05/27/2012 - 15:48 | 2467524 kekekekekekeke
kekekekekekeke's picture

totally sounded like colony!

Sun, 05/27/2012 - 18:29 | 2467830 CPL
CPL's picture

It sad to say but correct.  Canada is still very much paying the Queen as we always have.  Independance is a complete fiction once in the "commonwealth" (for who?).

 

Sun, 05/27/2012 - 02:48 | 2466764 sunaJ
sunaJ's picture

It is indeed absurd to me to suggest, as Ferguson does, and where we are at the stage in this crisis of bank runs, that the solution is to "follow the logical conclusion" of further monetary union.  Bank runs represent a lack of confidence in the administrators of that system - the banks and politicians.  They do not know what they are doing but think they do and flatly deny any reasonable criticism.  Adding eurobonds does not fix anything, it would perhaps buy more time in the debt vortex, and offers opportunity for those that have billions to make and lose more billions, to socialize greater debt and privatize more gains. 

There was never any contemplation in the creation of the EMU for a member state to exit.  The height of arrogance. The only way you can do this is if you believed that the EMU would always be a virtuous and workable system for all members.  That kind of thinking is obscenely ignorant.  Greece is not the cause of this crisis and you will never hear any culpability of the bloated investment mechanisms of foreign entities that would implosively cascade through the system in the collapse of a small nation economy.  Brittle as glass, and to imply that now all will be destroyed if we do not double down on this fallible model of economic engineering is, ladies and gentlemen, FASCISTIC!  Democracy apparently does not matter anymore, we are expected to be swayed well enough by the fear of the collapse caused by a global failing system.  Germany AND Greece would be mad to think of such a thing as a solution in any sense of the word.

BTW, remember the world when you invested in something because you believed in it, you took a risk because you could actually lose or gain wealth?  Now, losses can be imagined away with hedges, CDS and a dozen mechanisms that contrive no risk on investment.  Fucking cowardice, money-for-nothing, fraud and wishful-thinking are what motivate these markets.  What a waste.

Sun, 05/27/2012 - 02:53 | 2466770 Michael
Michael's picture

Controlled opposition.

Sun, 05/27/2012 - 03:53 | 2466803 LTCM_L.P.
LTCM_L.P.'s picture

sunaJ,

you hit the nail right on the head.  There are no balls or reality on wall street. Check out Isle of Man TT...risk their lives b/c they love to ride, no big paycheck, no kardashian fame...just to be the best at something they love.

"BTW, remember the world when you invested in something because you believed in it, you took a risk because you could actually lose or gain wealth?  Now, losses can be imagined away with hedges, CDS and a dozen mechanisms that contrive no risk on investment.  Fucking cowardice, money-for-nothing, fraud and wishful-thinking are what motivate these markets.  What a waste"

Sun, 05/27/2012 - 09:46 | 2467002 Temporalist
Temporalist's picture

It's not just Wall St.  People are going to wake up all over the world and once again realize that the universe cares nothing about them and their "beliefs" about the "safety" that they "deserve" or about their children or pensions, etc. 

The world is still dog-eat-dog but lately the dogs have been sated by feasting on free debt money doled out by people making exponentially more from it than the 99%.  When the money spigots turn off, dogs will be dogs.

Sun, 05/27/2012 - 11:26 | 2467100 Ricky Bobby
Ricky Bobby's picture

"With Ate by his side come hot from hell, 

Shall in these confines with a monarch's voice 

Cry 'Havoc,' and let slip the dogs of war; "

Sun, 05/27/2012 - 13:00 | 2467277 Ghordius
Ghordius's picture

there is a difference between being allowed to exit and being willing to bear the political cost of exiting.

all this talk about a monetary union being so-and-so just forgets the reason of being of the EUR: the mighty global reserve currency dollar.

as you correctly say, "Greece is not the cause of this crisis", this is all collateral damage.

The sad truth is that the euro construct will hold (in suspence) until we literally see which side the penny drops. Perhaps in the next weeks with JPM or in a longer timeframe.

The height of arrogance is not a monetary union where every nation has to keep it's fiscal house in order, this kind of environment is relatively stable - as seen for hundreds of years where gold and silver were money and a Treasury was filled with (literally) warchests.

The height of arrogance is ZIRP forever paired with a legal banking derivatives pyramid to the moon.

 

Sun, 05/27/2012 - 13:32 | 2467319 RiverRoad
RiverRoad's picture

Bank runs?  Not all that different from "market runs", eh what?  It in the end it's in the hands of the people and they WILL vote the banksters out..... one way or another.

Sun, 05/27/2012 - 14:30 | 2467388 Popo
Popo's picture

They'll vote the bankers out?   I humbly beg to differ.

Which party was the anti-banker party in the last election? 

Which party will be the anti-banker party in the next election?

There is no choice.   You simply get a choice of management team -- either of which will implement subtely different flavors of the same agenda.

Sun, 05/27/2012 - 19:44 | 2467994 Treeplanter
Treeplanter's picture

His key point is the euro can't work unless the states yield to a central authority and they knew that in '89 but went ahead with this farce.  The Brits saw the folly and stayed with the pound.  But insolvency is too vast fot any solution but default. 

Sun, 05/27/2012 - 11:31 | 2467108 DeadFred
DeadFred's picture

You may be right about this being a trap for all the little bears but I we've been getting a lot of NWO gloom posts on ZH and I suspect these are more instructional than diversional. My translation would be: "We are in the process of creating a large financial crisis in order to steal even more control over your lives and we want your fear to aid in our efforts"

Sun, 05/27/2012 - 12:22 | 2467200 SamAdams
SamAdams's picture

Correct

Sun, 05/27/2012 - 12:22 | 2467201 SamAdams
SamAdams's picture

Correct

Sun, 05/27/2012 - 14:30 | 2467387 Ghordius
Ghordius's picture

OR "we are going to create some more crisis in Greece and Europe so that you are distracted from what is happening with JP Morgan, the hundreds of trillions of dollars holes that can open up in the derivatives world and the effects of ZIRP-forever on a Treasury bond market that watches how the US deficits are supposed to go on at those levels for the next five years, minimum.

I still hear that bookies in Britain don't take any bets anymore for Greece leaving the eurozone. If you can't have a bet on this anymore - is it not something like a Schroedinger's Cat symptom? ;-)

Sun, 05/27/2012 - 15:14 | 2467458 sunaJ
sunaJ's picture

It is the attempt to engineer a trifle part of what is an economic disaster of Gordian complexity. ;)

Sun, 05/27/2012 - 14:31 | 2467389 Popo
Popo's picture

Or there will only be threats of a crisis.  And those threats will be used to frighten lawmakers into another round of pro-banker policies which stave off collapse but make the bankers even wealthier.

Sun, 05/27/2012 - 19:25 | 2467949 Treeplanter
Treeplanter's picture

Go for it.

Sun, 05/27/2012 - 00:28 | 2466691 Pinto Currency
Pinto Currency's picture

-x-

 

Sun, 05/27/2012 - 01:22 | 2466721 The Big Ching-aso
The Big Ching-aso's picture

 

 

"Until it happens, it doesn't happen.    In the meantime I'm preparing for either event."

-The Big Ching-aso

 

Sun, 05/27/2012 - 14:51 | 2467424 eclectic syncretist
eclectic syncretist's picture

His solution is to consolidate governmental power in the institutions that created this mess.  Nice one numbnuts.  How about a real solution, one that ensures future prosperity for as many as possible.

 

Now it the time to focus on how we got here, wipe out the crooks, and end institutionalized debt and leverage in our economy.

Sat, 05/26/2012 - 20:18 | 2466311 bank guy in Brussels
bank guy in Brussels's picture

It's indeed good for ZH to be cautious about these ultra-establishment people like Niall Ferguson, who at times does rather awfully pump for the Anglo-American war and imperialism machine.

One can be 'bearish' for the wrong reasons ... like for setting up the next 'intervention' by governments or central banks etc. on behalf of the establishment.

Ditto for Stratfor and other people tied to the big company - CIA establishment. They are not as obvious as Mossad's DebkaFile but some people are subtler than others.

The most dangerous propaganda comes from the ultra-slick people who mix lies very cleverly with some truth.

Things are bad enough now, they are bringing in the propaganda 'reserve elites', they are not just leaving it to the normal liars and pumpers.

Sat, 05/26/2012 - 20:33 | 2466332 AUD
AUD's picture

ZH cautious?

They've been pimping the likes of Niall Ferguson & Nigel 'martial law' Farage for some time. Farage continually berates the EU while taking their money as a Euro parliamentarian! What a cocksucker.


Sat, 05/26/2012 - 20:38 | 2466339 Aziz
Aziz's picture

Farage is a decent, truth-loving human being, like Ron Paul. A rare characteristic in a politician.

Sat, 05/26/2012 - 20:40 | 2466347 AUD
AUD's picture

Bullshit

Sat, 05/26/2012 - 20:55 | 2466374 BKbroiler
BKbroiler's picture

Farage is flamethrower of fucking truth, shut up.

Sat, 05/26/2012 - 20:56 | 2466379 AUD
AUD's picture

You are deluded.

Sat, 05/26/2012 - 21:05 | 2466396 Doña K
Doña K's picture

Your characterization of Farage is typical left wing destroy the man instead of debating the issues and what he says. This ancient method "ad hominem" has been very effective to sway the masses, but in this web site, you're transparent.

I bet you work for the government or you're in the gov. dole 

Sun, 05/27/2012 - 05:07 | 2466831 jeff montanye
jeff montanye's picture

the absence of reply seems eloquent.

Sun, 05/27/2012 - 07:23 | 2466881 GeneMarchbanks
GeneMarchbanks's picture

What the fuck is it with this 'ad hominem' nonsense by the blind here?

Farage is a salesman, so by default not a 'truthseeker', the fact that he provides a nice confirmation bias to the followers qualifies for exactly... dick.

Deceptive misrepresentation is hid modus operandi, the fact that you can't see through it is not a matter to be put up for 'debate'.

When the material is past your ability to grasp you reach for almighty 'ad hominem'.

 

Sun, 05/27/2012 - 07:50 | 2466894 Oh regional Indian
Oh regional Indian's picture

Gene, you know how it goes...

Mundus vult decipi, ergo.... ;-)

ori

Sun, 05/27/2012 - 08:26 | 2466914 Maghreb
Maghreb's picture

Hes Tory establishment on every thing he can be and plays up the that voter base. However you feel about Europe you have to always keep that in mind. Ron Paul is going after the heart of the financial system Farage is the voice of a slightly more sophisticated Tory.

Sun, 05/27/2012 - 15:08 | 2467453 roadhazard
roadhazard's picture

You mean, typical RIGHT wing destroy the man instead of debating the issues. repubicans are the masters of it... followed by the democraps of course.   

Sun, 05/27/2012 - 14:39 | 2467373 Ghordius
Ghordius's picture

Nigel Farage is a spokeman of the City of London (note that he is also an member, i.e. a freeman of the city http://ukip.org/content/latest-news/2602-nigel-granted-freedom-of-city-o...), i.e. the banking cartel in it's globally least regulated extra-territorial square mile. Of course he is a "flamethrower of truth", he speaks what you are supposed to believe...

Just go through what he said about Greece. Though I found it funny when he organized a funeral for the EUR, he does have humour.

In fact, he is, as many politicians here in europe, a good comedian. Proof, go to YouTube, search for "Miserable Fat Belgian Bastards" and note how he seamlessly fits in this wonderful British comedy piece with other great British comedians -> http://www.youtube.com/watch?v=F3e6IWsJA9U

Nigel Farage just tries to ride the (old) British wave of euroskepticism and hopes it will get him a seat or more in the House of Commons instead of his seat in the irrelevant European Parliament.

Why is it so difficult to believe that we don't have a Ron Paul in europe? We. Don't. Have. A. Ron. Paul. In. Europe. Period.

Sat, 05/26/2012 - 20:56 | 2466378 max2205
max2205's picture

A German Paulson will knell down in front of merkle, give her head, and beg for a trillion. He'll probably get it and we'll be here next year talking about the same shit.

Bullish

Sat, 05/26/2012 - 20:58 | 2466385 AUD
AUD's picture

Sounds about right

Sat, 05/26/2012 - 23:29 | 2466618 BigDuke6
BigDuke6's picture

Would it wind you up if i said that when i read "Jaws-music-inspired words"

i actually took it as 'Jew inspired banking crash'

Would it pull your chain?

Sun, 05/27/2012 - 06:09 | 2466849 groundedkiwi
groundedkiwi's picture

You under estimate the German people. 

Sun, 05/27/2012 - 11:34 | 2467112 Sabibaby
Sabibaby's picture

I think you're absolutely right, the demise of the EU will be blamed on Germany, the responsible productive country and not the irresponsible party countries.

Sat, 05/26/2012 - 21:57 | 2466483 lynnybee
lynnybee's picture

' Farage is a decent, truth-loving human being, like Ron Paul ' ,  i trust no one anymore.      we don't need no stinking private banks that lend money to governments ; we don't need no stinking, thieving banksters who print money out of thin air; holding the citizens hostage when the mess blows up. 

 

Sun, 05/27/2012 - 00:33 | 2466697 JOYFUL
JOYFUL's picture

sing it sista!

CreditAnstalt....founder=Baron Barracuda[Rothschilds]

terminated in 1931 in order to initiate a fake crisis due to the successful spread of community banking movement begun in Worgl - which was threatening to knock the feet from under the usurers...

Watch as Uni-Credit blows up with the same modus and motive. Nothin new under this sun.

Tommy Douglas for write in POTUS[hey, if a zombie Kenyan can occupy the WH, why knot a dead Kanuckistani?

Sun, 05/27/2012 - 12:51 | 2467254 grid-b-gone
grid-b-gone's picture

International banks are like corporate farms. They keep squeezing out smaller operations because in their middle-growth years they are more efficient.

At some point, their bigness equals power which corrupts, made largely possible because they eliminated smaller, competing alternatives as they grew.

In the case of banks, the final stages look like what we have seen during the past few years. They need a crisis to use as an excuse to implement the final rules and structure that will prevent a reversal of the trend. 

Like the corporate food trend working toward ownership of genetic food components once freely available to all on planet earth, banks need final consolidation agreements. 

For most people, a community bank covers all their banking needs. For their food needs, they only need a few acres somewhere being farmed on their behalf.

People may need banks, but they don't need big banks or central bankers. How did we ever even get this deep into a problem that has no positive consequence or benefit for the average person? At least as we progress into the oil realm, the average person has a need for the end result. That is not the case with banks.

Sun, 05/27/2012 - 08:19 | 2466909 thewhitelion
thewhitelion's picture

I too call bullshit on Niall.  The southern governments MAY need a federal union, the northern banks certainly DO need a federal union, but the southern people absolutely DO NOT.  Default is the solution.  My apologies to the banker fucks.

 

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Sun, 05/27/2012 - 08:58 | 2466947 Dapper Dan
Dapper Dan's picture

Well whitlion I think

 ;}.revenue .button .name {display: block; margin-right: 0.5em; width: 1em; overflow: hidden; text-overflow:

and another thing, 

 hover .revenue {border-top: 1px solid rgba(128,128,128,0.9); background-color: rgba(64,64,64,0.9);}

one more thing, 

font-we ight: bold; text-overflow: ellipsis; overflow: hidden; white-space: nowrap;}.revenue .name {color:

Sat, 05/26/2012 - 20:59 | 2466387 Cabreado
Cabreado's picture

AUD...

Advanced Unmitigated Duncery

Did I get it?

Sat, 05/26/2012 - 21:36 | 2466447 LoneStarHog
LoneStarHog's picture

Have you ever been successful in changing the color of the inside of your home working from the OUTSIDE?

Sat, 05/26/2012 - 22:43 | 2466554 SPAREPARTS
SPAREPARTS's picture

Hey would you mind adopting these three countries ? Oh sure I got money coming in . Glad to hand it over why? because I want more power? Germany has already partnered we these guys before and lost a war, Don't do that again, backing the euro is a bad bet

Sat, 05/26/2012 - 20:40 | 2466348 tony wilson
tony wilson's picture

the scotish tool is a tool.

just another brit on the blackmail payroll for sex crimes.

hague,cameron jeremy hunt and countless others.

maybe i am wrong david ike is mad but if that is the case ferguson is  insane.

http://www.youtube.com/watch?v=Nk4XYPNA1iQ

Sat, 05/26/2012 - 21:45 | 2466467 natty light
natty light's picture

No you are right David Ickes is mad.

Sun, 05/27/2012 - 02:52 | 2466769 THX 1178
THX 1178's picture

Less than 100% of what he says is true, but more than 0% of what he says is true.

Sun, 05/27/2012 - 13:20 | 2467304 resurger
resurger's picture

Harvard Professor being Bearish, something wrong there for sure.

Sat, 05/26/2012 - 22:44 | 2466560 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Look, it's either "Europe" or else it's "a bunch of different countries that happen to be next to each other". This in-between shit they are trying to finesse will not work. Fergie is right, it's solveable.

Sat, 05/26/2012 - 21:21 | 2466424 kentmills
kentmills's picture

Blackmail - pure and simple. Give up your sovereignty or we'll start bank runs. Give in to a Federalized Europe and we will insure your deposits. 

Sat, 05/26/2012 - 23:21 | 2466610 Ropingdown
Ropingdown's picture

Absolutely.  Ferguson has been on record touting the wonders of the US/Anglo imperial power, and making it clear that he wishes "europe" could put together the same type of arrangement.  He speaks romantically of the US arrangement only to goad europe into charging toward the same, driven mad by a misbegotten feeling of envy and rivalry.  Now he sees his chance to go hard again in that line.  Pathetic.  It isn't his money.  He's a historian, not a politician or economist.  He's one of those who suffer from the "Britain has lost its power and empire" fellows, the model mood of the Jean le Carré "Smiley" novels.

Sun, 05/27/2012 - 14:42 | 2467406 Ghordius
Ghordius's picture

and he touted the beauty of the Chimerica arrangement, the wonderful marriage made in heaven where Oncle Lee produces and saves while Auntie Sammy shops and spends.

Sun, 05/27/2012 - 12:03 | 2467132 cranky-old-geezer
cranky-old-geezer's picture

 

 

They MUST maintain public confidence in their fiat currency banking system (just another ponzi scheme), for it to work. 

It works only on public confidence (like every ponzi scheme), and if public confidence evaporates, it stops working and they lose their power over the people.

Yes, banking is how they keep their power over people and governments.

People withdrawing their funds from banks and governments walking away from their loan obligations sends chills of fear over the NWOers, they see they're losing control.

So yes, bank runs and government defaults are EXACTLY what needs to happen. 

Stop participating in their ponzi scheme.

Take control away from them simply by not playing their game.

Walk away from their fake monoply money where they can steal your wealth with a printing press.

Go back to real money where they can't.

Sat, 05/26/2012 - 21:52 | 2466484 Buck Johnson
Buck Johnson's picture

Your dead on, these type of people are layered in their strategy.  But also they can be wrong too, they aren't perfect because if they where the NWO would have what they want and it would have been a done deal decades if not a century ago. 

Sun, 05/27/2012 - 03:37 | 2466796 HyperinflatmyNutts
HyperinflatmyNutts's picture

A History professor at Harvard University...   Once I hear that I run the other way.  All these guys r the same. Scumbags who are part of the problem.  They moonlight as mouthpieces for the banksters, and spit poison out there Ass for the next crop of little muppets at good OLD Harvard.  Stay the course stack Silver bullion and wake up with your purchasing power in tack

Sat, 05/26/2012 - 22:01 | 2466494 potlatch
potlatch's picture

superb sir

Sat, 05/26/2012 - 23:26 | 2466617 boogerbently
boogerbently's picture

Bank loans don't need any REAL money behind them any more than our fiat needs any real value to back it.

These are all paper losses on paper loans, on undefinable assets......

We COULD just "wipe the slate clean".

Erase the debts, start fresh.

It's ALL an illusion, anyway. Let's just IMAGINE they never happened.

There are so many degrees of separation between the current debt and the loans they originally represent, no one could explain them anyway.

Let's just have a SNL, Kevin Nealon moment and say "You're right, I don't know what I'm talking about, forget it, you caught me, I'm full of shit".

The financial term rehypothecation was just paraphrased from Bullwinkle saying "Watch me pull a rabbit out of my hat".

Sun, 05/27/2012 - 01:45 | 2466738 Joseph Jones
Joseph Jones's picture

Any organization like Stratfor, favored and quoted regularly by Bill O'Reilly and Fox News has GOT to be the essence of Macheavellian lying, deflecting, denying, blame-shifting, smoke screening, and obfuscation. 

Sat, 05/26/2012 - 20:21 | 2466316 Angelic Upstart
Angelic Upstart's picture

Ferguson wrote a book about the history of money and completely overlooked the battle between the USA and the private banks over 100 years. That tells you where his loyalties lie.

Sat, 05/26/2012 - 20:24 | 2466321 Caviar Emptor
Caviar Emptor's picture

Long green paper and ink

Sat, 05/26/2012 - 20:40 | 2466349 Hulk
Hulk's picture

you mean short...

Sun, 05/27/2012 - 02:28 | 2466759 CCanuck
CCanuck's picture

Doouble Doown...Printing Presses and Wheelbarrows...$$$$$

Sat, 05/26/2012 - 20:25 | 2466323 financial apoca...
financial apocalyptic contagion's picture

seems about right zilverreiger, he's pushing for the absolutely retarded euro bonds idea in the same way they pushed the idea of TBTF to the congress when they asked for that bailout money

Sat, 05/26/2012 - 21:17 | 2466417 robertocarlos
robertocarlos's picture

I heard him push for keeping Greece in the Euro and for the Germans to back the Euro with bonds when he was on BNN a couple of days ago.

Sat, 05/26/2012 - 21:38 | 2466457 MeBizarro
MeBizarro's picture

Stratfor is the clown college of firms in their particular field.  Take what they post with a grain of salt. 

Sun, 05/27/2012 - 03:44 | 2466798 Clashfan
Clashfan's picture

Isn't he the "official Rothschild family biographer" or whatever? What is it with this site's worship of him. Enough already.

Sat, 05/26/2012 - 22:09 | 2466500 otto skorzeny
otto skorzeny's picture

apologist/flak taker for the House of Rothschild-although his "Ascent of Money" series on PBS was mildly entertaining

Sat, 05/26/2012 - 22:33 | 2466532 skepticCarl
skepticCarl's picture

Niall Ferguson is commenting on the game played with the current rules in effect, not the fantasy of a wholesale turn to Austrian economics, Pure Libertarian Capitialism, and a gold standard, over night. I find his diagnosis and prognosis compelling, and am planning trades based upon increased volatity and dollar strength due to probable European bank runs in the very near future.

Sun, 05/27/2012 - 01:49 | 2466742 putaipan
putaipan's picture

skeptical carl works for the vatican. the rest of you mini-tylers are doing well. kudos tylers.

Sun, 05/27/2012 - 00:02 | 2466668 yawdam23
yawdam23's picture

"Decoupling is what you do when the cops come when your with your mistress."

-Niall Ferguson 

Sun, 05/27/2012 - 09:07 | 2466961 Tsukato
Tsukato's picture

 Online I found a list of "bad words" which red flag emails, texts, etc. by the authorities. I thought to myself " most people are too afraid to ever rise up against the man, but perhaps there is some passive-aggressive action that most people could be bothered to do, and could keep the g-men busy/overloaded". This list of words should be spread to everyone, and attached at the end of every message we all write online, during chat, emails, etc. Please take this list, and pass it along to everyone you know. Thanks and vaya con Dios. Here is where to find the list: http://www.dailymail.co.uk/news/article-2150281/REVEALED-Hundreds-words-...

 

Sun, 05/27/2012 - 13:17 | 2467302 RiverRoad
RiverRoad's picture

People all around the world will ultimately "vote" the world's banksters, central and otherwise, out of office...... one way or another.  The financial farces, ALL of them are SO over.

Sat, 05/26/2012 - 20:05 | 2466288 Ahmeexnal
Ahmeexnal's picture

Time to register globalbankrun.com and start a bank run line picture database.

We can start with the skankynavian bank run line spearheaded by phat smurf in Stockholmistan.

Sat, 05/26/2012 - 21:16 | 2466415 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

LOL, why junk this, funny!

Sat, 05/26/2012 - 20:07 | 2466292 orangegeek
orangegeek's picture


Are the Europeans about to start the second half of our great depression? Our greatest depression? Yes.

Sat, 05/26/2012 - 20:10 | 2466295 Temporalist
Temporalist's picture

If you're going to do it it might as well be Great.

Sat, 05/26/2012 - 20:35 | 2466335 brooklynlou
brooklynlou's picture

Go big or go home ...

Sat, 05/26/2012 - 20:41 | 2466352 Temporalist
Temporalist's picture

Who loves ya baby!

Sat, 05/26/2012 - 20:59 | 2466386 A Lunatic
A Lunatic's picture

We need T-shirts. "I almost survived the greatest depression"

Sat, 05/26/2012 - 23:42 | 2466647 boogerbently
boogerbently's picture

"But Benny, I can't make it print anymore. If I give her anymore she'll blow!"

Sun, 05/27/2012 - 01:56 | 2466746 putaipan
putaipan's picture

" the greatest generation defeated the depression and fascism! ... i  had to fight them both on the home front at the same time!" and all i got -

Sat, 05/26/2012 - 20:12 | 2466299 pleseus
pleseus's picture

It's smarter to go to cash and wait this whole mess out.  Who cares if the markets can rally 5% from here in the short term just beacause of oversold technical conditions. 

Sat, 05/26/2012 - 20:29 | 2466329 gatorengineer
gatorengineer's picture

Its smartest to start an EDZ / FAZ position and pyramid in as the defecation hits the ventillation, keep a tight trailing stop, because their will be some nasty turbulence.... jump from the beta etf's before they close them down.  Take some of the winnings and buy a heavy barrel FAL or a good H&K and a few thousand 7.62, and a few spare springs and pins.....

Sat, 05/26/2012 - 20:36 | 2466334 Tom Green Swedish
Tom Green Swedish's picture

 the rest of the world is effed huh, buying gold like crazy and inflation going nuts. This EDZ is exploding.  Mark Mobius would be very upset.

 

Goldman had the call of last decade with the "BRICS", this decade is all about countering the "PIGS" (Omit Ireland)

Sat, 05/26/2012 - 22:41 | 2466553 skepticCarl
skepticCarl's picture

Tom, the EDZ decaying from 850 to 12.5 in four years kind of cools my enthusiasm for this ETF.

Sun, 05/27/2012 - 00:21 | 2466684 The Monkey
The Monkey's picture

If there is 5% upside in the markets, by all means, you want the upside.  Who wants to miss a decent rally?  All this spooky stuff is for shmucks.  It will all blow over.

Sun, 05/27/2012 - 09:22 | 2466982 Tom Green Swedish
Tom Green Swedish's picture

1 for 10 split buddy. It was 80 bucks.  You are an idiot.

Sun, 05/27/2012 - 01:58 | 2466748 putaipan
putaipan's picture

ahh... what the fuck happenned to buy the fucking dip !

(see what i did there)

Sat, 05/26/2012 - 20:14 | 2466303 Newsboy
Newsboy's picture

The tipping point is very close.

Is it now?

We keep anticipating it, and it must come..

This year?

This Summer?

Anticipatory anxiety, is there a market for it?

Sat, 05/26/2012 - 20:17 | 2466308 spinone
spinone's picture

Its not a single event, but a downward staircase.  There will be a drop, and a stabilization.  People will say, "thank god thats over"  then the next drop will happen, the next crisis.  And things will stabilize, and people will say "thank god". Then the next drop, and stabilization.  Then the next, then the next. And on and on.

Sat, 05/26/2012 - 21:04 | 2466393 Milestones
Milestones's picture

Ya mean like Marcel Duchamp's "Nude descending a Staircase"??                      Milestones

Sat, 05/26/2012 - 21:12 | 2466404 spinone
spinone's picture

Yeah, except this is real life and not bullshit posmodern art

Sat, 05/26/2012 - 22:13 | 2466506 otto skorzeny
otto skorzeny's picture

quite true-Duchamp is vulgarity defined-a f'ing urinal?brilliant says the effete east coast establishment

Sun, 05/27/2012 - 05:53 | 2466846 JOYFUL
JOYFUL's picture

Dood...

apologies in advance, if I'm the first one to break it to yu...those two were merged together some time ago...I believe that GS handled that particular M&A...but it could have been another icon of Kapitalist Simulacraism...

posmodernism(pointofsale kulture>?!?...brilliant allusion squire! - even if unintended!)

Sat, 05/26/2012 - 21:49 | 2466477 Pejorative Requiem
Pejorative Requiem's picture

Exactly. While we're looking for evidence in reports over a time frame of milliseconds, what happens next won't be recognized until examination, in retrospect, of course, of reports with a time frame of months..... or even quarters.

Sat, 05/26/2012 - 22:59 | 2466580 Hulk
Hulk's picture

Sorry, but this is going to be a waterfall event. You should be able to detect the increase in current right about now and a sound, sourced directly in front of you, thats on the increase.

 

Got milk ???

Sun, 05/27/2012 - 01:47 | 2466740 Braverdave
Braverdave's picture

Exactly ... and painfully slow (despite sudden drops). 

How did Senior Drill Instructor Gunnery Sergeant Hartman put it to Private Pyle?

"You climb obstacles like old people fuck. "

Slow. Frog in a pot of water eventually to be boiling slow.

Sun, 05/27/2012 - 11:32 | 2467110 smb12321
smb12321's picture

There's an old saying: " In economics large events take a long time to begin but when they do, things move rapidly." ZH posters have continually wrongly forecast end events  because it seems so logical that such an event must occur.  But central bankers are utter geniuses when it comes to prolonging crises.  Since the EU has a political economy (thge State is the main player) the power of the central banks is intensified.   

When a run starts, look for the ECB to throw 1 or 2 trillion at the problem.  Of course, buying sovereign debt and rescuing banks with phony money does nothing but make the eventual collapse worse, but it does put off the day of reckoning. 

Sun, 05/27/2012 - 13:48 | 2467338 RiverRoad
RiverRoad's picture

At some point the Euro will have simply been talked to death if nothing else.  And we can talk longer than they can throw.

Sat, 05/26/2012 - 20:19 | 2466312 Angelic Upstart
Angelic Upstart's picture

Anything you like that the Germans capitulate at the last minute.

 

I can just see it happening.

Sun, 05/27/2012 - 00:23 | 2466686 The Monkey
The Monkey's picture

They will duct tape it back together as usual.  The market will rally on the announcements.

Sat, 05/26/2012 - 20:19 | 2466314 Oldwood
Oldwood's picture

So, all it takes to make everthing right in the world is for the grasshoppers to give all of the ants a right good buggering, and then have a big party to celebrate "econonomic justice". Where can i get a grasshopper costume?

Sat, 05/26/2012 - 21:09 | 2466400 skepticCarl
skepticCarl's picture

+1 for the creative metaphore.  Seems every other one has been overused and abused.

Sun, 05/27/2012 - 07:06 | 2466875 Jendrzejczyk
Sat, 05/26/2012 - 20:20 | 2466315 hedgelessWhoresMan
hedgelessWhoresMan's picture

Luke it is your Destiny!

Sat, 05/26/2012 - 20:22 | 2466317 Clint Liquor
Clint Liquor's picture

Hey Niall, more Central Planning (Federalism) will not solve Europe's problems. It's what caused them in the first place. You dumb fuck.

Power to the People!

Sat, 05/26/2012 - 20:43 | 2466354 Banksters
Banksters's picture

+ 100 on dumb fuck.  

 

He is a pontificating federalist imbecile of the first order.   

Sat, 05/26/2012 - 23:50 | 2466658 boogerbently
boogerbently's picture

One of the "foxes" guarding the henhouse.

Sun, 05/27/2012 - 11:40 | 2467117 smb12321
smb12321's picture

The same questions were raised when we became a country and to this day, the biggest problem is the balancing federal and local power.   Central planning has absolutely nothing to do with federalism no matter what Niall says.  We had federalism long before we had central planning.

What he is proposing is a US of Europe  -  absolutely nothing wrong with that in theory.   But the circumstances (uniting to save a dying continent/restore glory, etc) plus different cultures, religions, languages, economies and wealth make it near impossible.  Besides, it would substitute Brussels for a Constitution and that is yet another disaster.

Sat, 05/26/2012 - 20:30 | 2466320 Tom Green Swedish
Tom Green Swedish's picture

Trade with Europe although our largest trading partner is only about 2.5 percent GDP.  Europe is not going to completely crumble so I'd say the USA might lose some growth, but Europe will still be screwed.

 

Although I am not a "CDS" expert. I can only assume American banks unloaded this garbage. Ben please don't print.

 

The funniest thing he said. Spain should put their money in German banks. Hahs

Sat, 05/26/2012 - 20:58 | 2466384 HD
HD's picture

Thing is, Europe is China's biggest market - so as China goes down, the US will go with them.

700 TRILLION (with a T) in CDS. Global GDP is around 60 Trillion - so how that ends well I don't know.

Sat, 05/26/2012 - 21:10 | 2466395 Tom Green Swedish
Tom Green Swedish's picture

Yes, but China has been tanking for quite a while Shanghai is down 60 percent (and we have not had the same problem with our markets on ly down around 7 percent) since 2007, and since they are our "competition" that is a good thing.  A stronger dollar means cheaper Chinese stuff.  The Chinese don't buy our stuff because they want it, they buy it because they have too.

 

The Euro crisis doesn't have much to do with Europe, but with the shift of wealth from USA to China in the last 10 years since we spent 6 trillion on the Gulf War and manufacturers had to flock to China because of rare Earths.  The USA will recover after the Gulf Wars and manufacturing starts to make a comeback. On the other hand China is really screwed. If Ben stops printing and the Government goes from a sophmore in highschool to a senior the USA might regain all the market share we lost.

 

Really not sure how the "CDS" thing fits in, didn't the USA make those Illegal after the banking crisis?

Sat, 05/26/2012 - 23:01 | 2466485 JeffB
JeffB's picture

"Really not sure how the "CDS" thing fits in, didn't the USA make those Illegal after the banking crisis?"

---

I don't think so. But if they did, no one is paying attention to it.

Update: J.P. Morgan Had $101.3 Billion One-Sided Exposure, Fed Data Show

Wall Street Journal May 25, 9:06 a.m. ET

(This article was originally published Thursday)

--Bank doubled some 'net long' CDS positions in 1Q

--In one index, its losses since May 10 could have doubled

--Clearinghouse volumes show more such trades are cleared

(Updates with bank spokesman declining to comment)

NEW YORK (Dow Jones)--J.P. Morgan Chase & Co. (JPM) sold $101.3 billion more long-dated derivatives insuring against defaults by investment-grade companies as of March 31 than it had bought back, according to quarterly data from the Federal Reserve.

The amount of insurance-like credit-default swaps the bank sold was double its $50.2 billion net position at the end of December ...

 

Sun, 05/27/2012 - 02:14 | 2466754 CCanuck
CCanuck's picture

We don't need no water let the mofo burn, BURN MOFO!!!!...BURN!!!!!!

Silver Bitchez!!!

Sat, 05/26/2012 - 22:23 | 2466520 HD
HD's picture

Unfortunately CDS is not illegal - and that is at the heart of the crisis. How do you unwind 700 Trillion in unregulated CDS? No one knows - so they will print from now til doomsdays to avoid a large  "credit event" from triggering.

Sun, 05/27/2012 - 02:23 | 2466755 verum quod lies
verum quod lies's picture

It's not 700 trillion in CDS (i.e., unless this is notional yen we are talking about), but probably closer to $70 trillion USD in notional (i.e., you're off by at least one decimal point). That noted, they have and likely will print to avoid the type of CDS counterparty blowup they expected with AIG/Goldman/etc. last round.

Sun, 05/27/2012 - 03:17 | 2466781 HD
HD's picture

Not all unregulated derivatives are CDS - but the risk and 700 trillion are indeed accurate.

http://www.cnbc.com/id/46338445/EU_Agrees_Rules_for_700_Trillion_Derivat...

Sun, 05/27/2012 - 10:34 | 2467042 Tom Green Swedish
Tom Green Swedish's picture

Ok maybe I'm missing something here.  That 700 Trillion is just some pretend number.  Why does it even matter to you?

Sun, 05/27/2012 - 18:31 | 2467833 JeffB
JeffB's picture

"That 700 Trillion is just some pretend number.  Why does it even matter to you?"

Why do you call it "a pretend number"? It may be + or - a few percentage points due to fluctuations &/or lack of reporting requirements, but the contracts are very real and the market is enormous. It is apparently multiples of worldwide GDP.

It has aleady crashed multiple "too big to fail" financial institutions, some of which were bailed out at tremendous expense to the U.S. government as emergency measures which were described by our top financial leaders as necessary to avoid collapse of the international economy.

That seems like a pretty big deal to me.

Sun, 05/27/2012 - 11:45 | 2467126 smb12321
smb12321's picture

You are right to get the big picture.  Just finished "World Rightside Up" and the author (he writes like a libertarian) says that the European-ruled world of the past three centuries is an aberration.  Sure enough, if demographics are an indicator, Europe has had its heyday and power is returing (as it always has been) to the East.

It's like a surreal movie - watching your culture and country slowly sink into the abyss of debt, lowered expectations and simply trying to position itself for the inevitable.

Sat, 05/26/2012 - 20:28 | 2466324 tony wilson
tony wilson's picture

nial mctool fergus son

rothschild stooge and sodomite.

i here he was forever getting kicked out of those luton hoo eyes wide shut parties for degeneracy.

why believe anything a gimp tool into gut punching says.

unless like watching the bbc you want to here what the real enemy are plotting.

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