Art Cashin Explains Why Obama Is "Terrified" By A European Collapse
Confused why Tim Geithner has seemingly booked a weekly round trip ticket to Brussels to give the Eurocrats their weekly pep talk (much to his endless humiliation as Europe Tells Geithner To Take His Advice And Shove It reminds us)? Art Cashin explains not only this, but why the biggest threat to Obama's reelection chances is not who the GOP candidate is in November, but what happens in the EURUSD as early as today. Lastly, by implication, Cashin shoots down any hope that US decoupling from Europe is even remotely possible... something anyone who actually has seen a full business cycle, which automatically excludes 90% of all traders today, will know too well.
From Art Cashin
Wrong Solution. Wrong Time - Markets are celebrating (mildly) the Euro Summit “agreement”. We suspect Tim Geithner and the President are banging their heads against the wall.
The Euro leaders continue to plan and plot toward long range solutions, but they lack a crisis plan. In essence, they don’t have a fire department. If markets in the sovereign debt or European banks began to spiral out of control, they have no structure to deal with it.
We think the President is terrified, since - if Europe goes, it’s likely he goes too. The biggest threat to his re-election may be completely out of his control. Could be an interesting weekend at the White House.
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Geithner is a tool. Next time send him there in a clown costume.
dude! if you send Geithner in a clown costume, people would actually notice him!
"We think the President is terrified, since - if Europe goes, it’s likely he goes too."
Finally. A Silver Lining to this mess.
Not to mention that the fiat ponzi wiould collapse. And all Obama cares about is staying in power.
in "office." He doesn't like this job nor want this job. He just wanted to BE President for the adulation, just like his "leadership" of the Harvard Law Review.
He sure as fuck doesn't mind the $400k yearly expense account, money from lobbyists, and other perks - all included.
Adding Michelle's plush travel account, and his stock shares in the BIS Corp and Federal Reserve Corp, he is making millions. Hopefully he does something with his fiat before Europe collapses.
Villa in Maui?
The real money doesn't start rolling in until he leaves office, writes a book, and hits the lecture circuit. Just ask Bill Clinton, who ended his term nearly impoverished by legal fees, but who somehow came out OK after just a year or two.
They all do well, at least during my lifetime.
Point- If Obama needs EU cohesiveness, he's screwed.
Counterpoint- Have you seen the field of GOP contenders?
Obama's not running against Republicans, he's running against reality. Democrats and Dem leaning independents ALWAYS vote Democratic. Republicans and Rep leaning independents ALWAYS vote Republican. Real independents decide elections and they ALWAYS vote their pocketbook. Game over Obama.
his stock shares in the Federal Reserve Corp? Better check your sources Jimi - he doesn't and can't own "stock shares" in the Fed.
U got that wrong. $400 k is just his allowance. His expense account is unlimited. 17 days in Hawaii. Who pays for his plane ride there? He sure as fuck ain't buying Hawaii airlines tickets on his own dime.
Get real. ZeroPower the brains. Obama would be making millions out of Harvard Law School at Goldman or other financial place. He took less as President.
In a certain way "US" has now finally conquered EU - that is to say, "US Crony Capitalism", has "conquered" - hence EU "socialism" is now totally dead and and phoney and stinky and farcical and non-existing - except except for US style socialism for the rich - a.k.a. FASCISM. To wit:
Courtecy of The Blowhorn: "EU Leaders Drop Demands for Investor Write-Offs"
http://www.bloomberg.com/news/2011-12-09/eu-leaders-drop-demands-for-inv...
US cronies have won - even EU socialism is dead - welcome to national socialism for & by the rich elite. Sieg Heil, Amerika.
In assoicated news, HeimLand Security - excuse me, HOME-Land SS, has thousands of career jobs for you - check your local city busses for billboards - at least they're all over L.A. - AND - there are couples and threesomes of heavily armed "HomieSS" on all subway stations' platforms.
FASCISM - IS in US - NOW - not in the future - TODAY - and it has today succesfully been pushed upon Europe: NO WRITE OFFS FOR INVESTORS - ONLY ENDLESS BAILOUTS FOR THE SPECUALATIVE INVESTING CLASS - i.e. the elite.
Are you ready to suck rich-dick? OR - are you cocking your gun to take them out - and their cronies with them?
Personally, rest assured, I for one, will kill them left and right with my bare hands, my teeth and my entire being. WWIII is coming to a town square near you - live, in 3D and full color & aroma. I can smell it every day. Can you? Napalm in the morning. Ahh. Clean-up time. Get ready.
Care to explain the difference, in detail? Don't waste your time: there is none.
How many times must socialism end in disaster and millions dead before people realize there's no such thing as free shit?
Still looking for anything he wrote at Hahhvaaad, how about his grades anyone seen those? How about 1, just 1 girl he dated before Michelle?? This guy is a cypher wrapped in an enigma..
You sure you're looking for girls?
His sweetheart and "roommate" was a Pakistani. Once the fast cars and free apartments got cut off, Obama had to find a sponsor - seems it was the Saudis after that. We know how they like to "help" young men.
Actually he just wanted to know if UFO's were real.
Don't forget his 'nobel peace prize' that he 'earned' - sarc off...
trav: right. and if he had actually wanted to do anything as president, to this day he'd be searching all over the white house wondering "where's the power"?
"We think the President is terrified, since - if Europe goes, it’s likely he goes too."
One could then logically conclude that the entire Republican side of Congress would therefore be happy to see Europe go boom.
We live in interesting times...
I am on record here as saying that the Repubs on the Hill are quite capable of doing something really stupid that ensures a deflationary collapse....sort cutting off one nose to spite one's face...
If the system gotta go make mine inflationary....no body "wins" in deflationary collapse....
Hold on there you crazy kids. If the whole system goes boom, do you actually think the Republicans will be left unscathed? Will anyone vote for them either? No, they will stay loyal to their bankster masters, because they know that if they bit the hand that feeds them, the banksters will push forward another pawn in the form of a new independent third party "guaranteed" to be better than the last two, and entirely innocent of this whole bankster cabal ponzi game (wink).
Once you take the Devil's money, there's no getting out of the game. The Republicans and the Democrats will continue to do exactly as they are told.
Your mistake in investing was in believing it was a market, it wasn't. If you frequent this blog that much must be clear by now.
Your mistake in reading politics is in believing the game of politics is about the game of politics. It isn't. It's about fiat Ponzi and central banking.
@Flakmeister:
Perfect, you mean you're on your knees expecting inflation for all your debt. Clown. Nobody wins in deflation is false premise. Nobody wins in inflationary collapse, plus we get cherry of violence and mayhem. And while you're at it why not tell us voting doesn't matter either... oh see you've done it already. LOL!
"Are deflation and depression empirically linked? No, concludes a broad historical study of inflation and real
output growth rates. Deflation and depression do seem to have been linked during the 1930s. But in the rest
of the data for 17 countries and more than 100 years, there is virtually no evidence of such a link."
http://www.minneapolisfed.org/research/sr/sr331.pdf
Jackass. Most of the data sets were before we went full fiat retard. And of course modern data is not reliable, since if you technically have a depression, they change the damn rules.
Of course if you have a hard money standard deflation is normal. Productivity increases are enjoyed by those who increase the productivity.
That FED paper is comparing apples to hand grenades. Deflation due to productivity would be good. But we cannot have that due to the governments of the world needing the extra revenue that is skimmed off through the inflation tax. So when we speak of deflation now, we are going to be speaking about cascading defaults, not simple productivity increases.
You might want to be careful with your accusations of false premises when trotting out BS like this:
"Note that most of the episodes in the data set that have de?ation and no depression occurred
under a gold standard; does that somehow make them irrelevant for shedding light on de?ations
under a ?at system? No."
I stopped reading that drivel after that line.
pods
"Of course if you have a hard money standard deflation is normal. Productivity increases are enjoyed by those who increase the productivity.
That FED paper is comparing apples to hand grenades. Deflation due to productivity would be good. But we cannot have that due to the governments of the world needing the extra revenue that is skimmed off through the inflation tax."
So good that it is worth repeating.
Wow, pods talking points. We need inflation, and voting doesn't matter.
I'll go behind an academic research report before value opinion of idiot who signs anonymous blog pods, LOL.
Yep, my "talking points." Funny how you happen to think in terms of politics? It is quite amusing. Good luck to ya!
I never said voting doesn't matter. It matters more than you will ever know. But not for accomplishing anything that the people want.
Voting is of the utmost importance to keep people like you believing that you actually have a say in how they run your life.
And, if you actually KNEW how to read, you would see that I never said WE need inflation.
Of course, you are in that realm of thinkers who happen to think that the government IS the people, so I can see how you would mistake government for me.
pods
I'm in realm of thinkers who think you're troll! LOL.
Technically, "realm" requires more than one element. FAIL.
You guys are hilarious....
The concensus here at Zero Hedge is that it will not be deflation.... and I get junked for saying that I fear a deflationary collapse and that the Repubs are more likely to bring it about (what with show downs over debt ceilings and whatnot, go figger)
FWIW, my *total* debt level is $4,800...
I fear deflation because destroys everything in its wake, there is limited investment possibilities with high real interest rates....
And if you think that gold can function as a currency, you had better get US oil consumption down by 2/3.... i.e. drop about 10 mmbpd in imports....
The pair you have to worry about is oil-gold if you haven't figured it out yet....
Good. We can bury them next to each other in the graves they asked for. Go long on shovels,lye, and yes as always guns, ammo, and bullion. Tis the season.
You are correct, TPTB will shuffle, print, kick the can and try to balance inflation against the tidal wave of default-which I think cannot be stopped.
Flak,
Deflation maximus would suppose you could get rid of the quadrillions of dollars in the system that are floating around nearly worthless. There may still be some deflation to come, but when the currencie is worth nothing and backed by nothing, hyperinflaation is the End Game.
I don't know if it really makes a difference. Hyperinflation and deflation end up being the same thing... a system so completely turned upside down as to render "commerce" as we know it, dead. There isn't a medium of exchange that people are willing to accept. One system is broke because I don't have it (fiat money) the other because people won't accept it (fiat money). Either represents the end of the dollar as we know it. What comes next and who gets to decide and how do I survive the time between systems are the questions to ask, I think.
Exactly.....we need a new name for hyperinflation, cause it has fuck all to do with inflation or money printing......and it is deflationary in practice. First loss of confidence, then increase in velocity, then liquidity problems, then massive money printing.
double
Voting can't change our monetary system, I don't think. Virtually all money is created as debt with interest associated with it. Only there is isn't "money" in the system to pay the interest, so the system itself needs to issue more debt. This continues until the cost to maintain the debt overwhelms the productive economy. That ship sailed a ways back... it's been mostly smoke and mirrors since then. Our collapse is coming and there is nothing that your vote can do to change it. If one wants to vote for Ron Paul in the hope that he will ultimately be the person who can decide what will happen after the crash, I'm 100% on board. I've voted for RP my whole life, starting in 1988 when he ran as the libertarian candidate. But he can't "fix" where we are today.
Right in the 10 ring!
It isn't politics, it is math.
pods
Wow, POPO great logic and you got 7 idiots at this point to agree.. I never have to wonder why we are fucked..
Exactly, Just as the Democrats RAILED on the General Petraeus engineered successful "Surge" in Iraq. Intresting times, indeed...
You are under the delusion that changing the resident of the Oval Office will change anything. If you were to get your dream candidate elected, you would only reap the tears of disappointment... And yes, that applies to Dr. Paul as well... So sit back, heckle and denigrate O all you want and take solace in that at least you have a focus for your discontent....
Obama is one of the weakest and worst presidents this country has ever had for the simple reason that he could have made a difference. In early 2009, he was enormously popular, he had filibuster-proof majorities in both houses of Congress. He could have tackled the hard problems and re-set this country's course. But what did he do? He fell into line and catered to the whims of the banksters, the health insurance and big pharma companies, etc., etc., etc. His entire philosophy of governance can be boiled down to the phrase "kick the can down the road". And now the opportunity for "change" is lost and we are heading for the abyss.
I think that he's right and you are wrong. He's right because he has math on his side, you have emotion on yours. This video was posted here a couple of weeks ago (Chris Martenson's talk in Spain). http://www.youtube.com/watch?feature=player_embedded&v=8WBiTnBwSWc - This isn't a "problem to solve" this is a predicament created years ago when we created a monetary system based on credit/debt money. It's "kick the can" or deflationary depression. And the can has been kicked for literally generations now.
What we need to focus on now is making sure that people understand what is happening and do our best to make sure that "what comes next" isn't more of the same. But "what comes next" can't happen until the whole thing comes down.
Well, he could have pushed a healthcare reform act that actually reduced healthcare costs. He could have had Congress reinstall Glass-Steagal. He could have eliminated the federal guarentee of student loans thereby reducing college tuition. He could have brought the troops home from Iraq and Afghanistan. He could have told his Attorney General to indict and prosecute the Wall Street bankers who committed fraud and other felonies. Shall I go on? He could have easily done all of those things and more that would have made a real difference.
I agree with all of those things... but all of those things ultimately only work to hasten the economic collapse. Once you get your arms around what money is... at least in our debt/credit based monetary system, the only way to avoid massive liquidation (deflationary depression) is to continue to expand debt. Everything you describe does the opposite. In the video I linked below... it's the difference between a "problem" to be solved and a predicament.
"What is striking is that nearly 90% of the episodes with deflation did not have depression"
A 100 years of data.
http://www.minneapolisfed.org/research/sr/sr331.pdf
You sound like a banker. I love Ron Paul, I vote for him all my life, but he can't help you, he'll take you to war like all the rest of them... is that what you mean to say?
We are facing a debt overhang unlike anything the world has ever known. No... I'm not a banker. I'm just a guy trying to understand what's going on and trying to figure out how to best prepare for the future. We have literally "doubled down" - thanks to mathematics, a couple too many times to make the coming deflationary depression look like the great depression.
If this is greatest debt overhang, how can we grow out of it? It's ridiculous argument to say we can expand debt. Only the bankers hope for this. Anyone with brain know that inflation leads to war and violence. I expect deflation, and I expect deflation to help us out of mess. But also expect corrupt bankers to do all in their power to try to inflate the shit from us. Don't take their talking points because it only hurts us.
We CAN'T grow out of this. You're having trouble in this conversation because you are trapped in a particular way of thinking. You're going Vanilla Ice on it... "If there's a problem, Yo I'll solve it".
NOTHING can help us out of this mess. NOTHING. Bankers win in this system, PERIOD. Austerity really only means making our monthly payment to... the bankers. You need to spend some time getting your arms around what our monetary system means. As Pods says... this is math, not politics. You are stuck in a right vs. wrong, conservative vs. democrat, capitalism vs. communism non-reality that had been created for you.
I must have missed Homeland Security meeting where new message priority to get people used to pay more for gas, so Fed can keep printing. LOL. Peak oil. Why are more trolls talking peak oil now. Coincidence? Peak oil is true so we need to find other source of energy or we have drastic downscale in society. Either way not so good for price of oil unless Fed keeps printing causing food and all costs to go up.
Austerity? No, why should people pay for bankers mistakes? Banks who lose who take on too much debt and make risky bets should fail.
You've lost me now. Peak oil, DHS, wha, what? Like I said, you need to get your arms around how our monetary system works. What you seem to be advocating will hasten the collapse. I'm not advocating anything... I accept that the collapse will happen. It's math. It's only a question of timing. There is no "return to normal"?
It's been a long time coming.
http://www.youtube.com/watch?v=F3RYvO2X0Oo
Re banksters and oil: http://www.infowars.com/the-federal-reserve-cartel-the-eight-families/
He could have? The leopard could have been a lion if he didn't have spots.
The communist could have been a capitalist if there never was a Marx.
WTF? I coulda been a contentender if I was a boxer, but I wasn't a boxer.
You are a broken record that is playing backwards.
Thanks for that link kridkrid. I will have to check it out.
The truth about money hit me after watching money as debt a couple of times. When the light comes on, it burns bright, and forever.
Eustace Mullin's Secrets of the Federal Reserve is another good resource to see how methodical this all was.
Like a python slowly tightening its grip every time the victim exhales.
pods
It isn't even terribly complicated, I don't think. The hurdle people need to get over is that of faith. People have "faith" that things are as they seem or as they are told. Understanding how our monetary system works only requires curiosity and skepticism. Armed with those two things, the mechanics of money is really quite simple (and relatively scary).
Sorry Elvisdog, this has been baked in the cake since long before Obama.
Nobody can save this system. And that is actually good. After it collapses, those left will never again let another bunch of banksters into the country with dreams of debt money!
pods
"After it collapses, those left will never again let another bunch of banksters into the country with dreams of debt money!"
Want to bet? Money talks, bub. That's how we got here in the first place. Nothing has changed and little is likely to change long term. It might take a while but "they" will be back.
One wonders if things could ever be different and what would have to have changed. Nationalize the Fed? One person's opinion: Nationalize the Fed's Invisible Hand under the US Treasury Dept., April 7, 2011 www.amazon.com/Secrets-Federal-Reserve-Eustace-Mullins/product-reviews/0965649210/ref=cm_cr_dp_all_recent?ie=UTF8&showViewpoints=1&sortBy=bySubmissionDateDescending . And sorry for redundancy, but also check out www.infowars.com/the-federal-reserve-cartel-the-eight-families/
I agree with you. In fact IMHO the best situation would be a strong Ron Paul candidacy (with the suck ass MSM finally giving him his due) which spends the next 11 months ripping the Obama Bin Lying presidency to shredds. However, and this may not be a popular idea here, ideally then Obama still wins the presidency but enters the second terms so wounded, so humiliated, so "truth-revealed" that he has no will nor motivation to put any of his inept socialist ideologies into practice. Taking back the Senate, gaining further in the House should be the real goals, recovering the SCOTUS, should be the end game.
Maybe nice pipe-dreams but all are hope with little likelihood of happening. If, if, if....
Wrong, my dream candidiate is me and while I would most certainly die in office there would be changes, oh yes..
Pegasus Muse, when were you in the Regiment? 91-94 here. Allons!
No, sows ypu how out to lunch he is, he'd figure blame europe instead of himself.Which he seems to be an expert on.
I think Obama is afraid of a europe break up because it would be much harder to get a no show banking job for himself or his family.
Also it shows the primary problem of his entire presidency. He's listening to the bankers and the baqnkers cronies. hence we have a shitty recovery. If you have the wrong advisors you get the wrong advice, and you do the wrong things.
Sending Geithner to Europe is like sending Fire Marshall Bill.
http://www.youtube.com/watch?v=XdR2T6YKAUc
"LE'MEE SHOWYA SOMETHING!!!!!"
Off topic, but make sure to read the article at inforwars about the feds demanding the customer list of a Mormon cannery. HS wants to know who is preparing for collapse.
i saw that. they'll probably come up with some kinda separation of church and state thingy so Mormons can keep prepping but the rest of us are terrorists. i can be Mormon. and my son will be a Quaker to stay outta the WW3 draft
Ah Shit. I was gonna make a big order in January. I'll have to keep food below the radar now, too. Sheesh.
Our local Amish food store and farm stores give a discount for cash. And no record of my purchaces. Its a bit of a drive, but probably worth the effort.
Has it really come to that? Have our leadership denegrated to the level of the Nazi's? If so, seriously, IF SO, then everything we discuss (talk talk talk talk talk post post post post twitter twitter twitter twitter etc etc etc etc) is not going to change one damn thing. IF SO....the time for talk is over.
Do you consider unelected people who work in government agencies "our leadership"? Or are they unelected sociopaths, distinguished from the elected sociopaths who are supposed to be "our leadership" but don't deserve to be?
Obama pushed in all the chips when BOA transferred its $77 tillion deriviativee investments to its banking arm. Under a 2005 admendment to bankrupcy law, the banks losses on derivatives take priority over custmer deposits and investments in the event of a banking failure. A 5% loss on the BOA derivatives would essentially daisy chain into a worldwide collapse leaving FDIC and SPIC guarantees meaningless. See article www.market-ticker.org for details. Either Germany takes charge and the EU moves to a fiscal union or the USA will blow up the entire system. The UK shadow leveraged banking system allows for massive unregulated risk where US deposits are transfered and the leveraged by nearly all banks into high risk wild west investments. This too will eventually result in a financial crisis. Geither is giving the A holes in the EU the plan and marching orders.
going long costume rentals, but shorting police uniform manufacturers - militarization, y'know!?!?
You meant "Little Timmy" is a stool.
Small, smelly, nasty one.
Sorry, I must tell the truth where the truth is warranted.
Even if the truth reeks.
Might I suggest, as a small step towards a balanced budget, he only be given a one way ticket?
Good one! =))))
Good one! =))))
If Obama still thinks he should be in charge for another 4 years, he is as disillusional as Wall Street.
Disillusional? Is that you dubya?
Again, Newt Gingrich is Dick Cheney's fat little sister and wants to have your baby.All potus options are lose,lose,lose. Same shit different day.
"All potus options are lose,lose,lose. Same shit different day."
Welcome to ZH prains. Here at ZH we like Ron Paul. He is real change and real leadership.
Here at ZH we...
Prolly less uniformity of opinion "here" than you may believe.
Yes. President Gringrich is going to be sooo much better for the USA than Obama.
I look forward to when he makes poverty illegal and just puts poor people in jail.
Not jail. FEMA Camps... Like summer camps for grown ups that are unemployed... and are now unemployable because their jobs have been shipped over seas or given to robots or made redundent by new technology.
Only the Camps will operate year round. Remind you of anything?
Nobody is unemployable.
Everyone can produce some type of output even if it is small.
Besides, I thought the Left had a thing for, you know, Strength Through Joy?
Our new, Soros-inspired vision: Everybody votes JAWOHL!
Besides, I thought the Left had a thing for, you know, Strength Through Joy?
Our new, Soros-inspired vision: Everybody votes JAWOHL!