• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

The Beginning Of The European Endgame

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Tue, 10/25/2011 - 20:52 | 1810586 westboundnup
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It's over Johnny . . . IT'S OVER!

Tue, 10/25/2011 - 20:55 | 1810593 Ahmeexnal
Ahmeexnal's picture

Netherlands told Merkel "fuck off beyotch" and is going back to the Gulden.

About effin time.

Tue, 10/25/2011 - 21:42 | 1810767 philipat
philipat's picture

But the attached Organisation chart shows the real situation in Europe:


Tue, 10/25/2011 - 21:46 | 1810783 Chuck Walla
Chuck Walla's picture

Now that chart is truly funny and truly true.

Tue, 10/25/2011 - 23:32 | 1811159 CompassionateFascist
CompassionateFascist's picture

So the weather's cold. Snow, ice, whatever. So what?

Wed, 10/26/2011 - 04:41 | 1811437 djudy003
djudy003's picture

I think that's bird shit not snow.

Wed, 10/26/2011 - 06:16 | 1811474 Bicycle Repairman
Bicycle Repairman's picture


Wed, 10/26/2011 - 06:34 | 1811477 DutchDude
DutchDude's picture

whatwhut??? what did i miss?

Tue, 10/25/2011 - 21:31 | 1810718 PicassoInActions
PicassoInActions's picture

its not over till its over. we were thinking it was over in 2008... we are in 2011.

I am sure they will be another miracle devices like Ipad, FED, ECB, BOJ and so on.... Miracles just don't stop comming in...

Tue, 10/25/2011 - 21:47 | 1810788 philipat
philipat's picture

You mean Merkel is the Fat lady?

Wed, 10/26/2011 - 03:12 | 1811382 Ghordius
Ghordius's picture

wait until she sings!


I usually enjoy all Tchir posts - this one is not one of the best and I disagree.

The option of calling for capital of the ECB is only for cases where the ECB needs to "defend" a certain level of the EUR. Since we are all in the "down" leg of the currency wars, there is no need at all - although there might be a future (leg "up") where govs will be busy screaming at the CBs to "do something" to keep the currency up.

CB "losses" of 16.5 or even 50 bn? Peanuts. The puny little SNB can have more without breaking pace - for example last year because of the book value of the EUR and USD holdings they had (from memory) some 22bn.

It's like you know there might be a war next to your village and your wife complains you are buying ammo - it's a loss, she says. Yes, darling, it's a "loss". No darling, I will buy ammo.

Financial commentators have the bad habit of looking at Central Banks as if they were Banks - CB's can't go broke, they can only become - for lack of a better word - "impotent", i.e. without sufficient FX reserves at the right moment.

Wed, 10/26/2011 - 06:40 | 1811478 Withdrawn Sanction
Withdrawn Sanction's picture

CB's can't go broke, they can only become - for lack of a better word - "impotent", i.e. without sufficient FX reserves at the right moment.

Nonsense.  Of course they can go broke.  Insolvency is an inescapable condition, not a state of mind. When a CBs owings exceed the value of what it owns (by more than its capital), it's done. Such a zombie may continue to stalk the landscape, but it is financially dead w/o new capital. A clever change of terminology to "impotent" is just a fashionable way of trying to try to evade this fact.

Tue, 10/25/2011 - 23:02 | 1811067 mayhem_korner
mayhem_korner's picture



Au still rippin' in overnight hours.  Curious.  Maybe the sideways movement is taking time out, or maybe there's a little more safe haven leakage going down here.  We'll see...

Wed, 10/26/2011 - 01:54 | 1811304 FinHits
FinHits's picture

"The terms of ECB capital calls are worse than EFSF because they are joint and several. If countries don't meet their obligations they don't go away, they get passed to another country."


The obligations of the member national central banks may be joint and several, but the pass-through mechamism, if any, is to my knowledge not fixed at all. In theory it could be ECB Capital Key (but isn't even fixed to that), but how the money is contributed and in which order, if e.g. Greece and Ireland can't cough their share, is not defined by my knowledge. And won't be defined in a hurry.

So effectively, ECB capital call is toothless, and in fact ECB operates ring-fenced. It can easily take the losses and can not pass them on. Negative equity in balance sheet doesn't matter, or if it matters ECB can print money to make whole the minor shortfall of few billions. It is not like anybody cares what Bank of Japan balance sheet looks like as regards to equity.

I would like to see links here to ECB rules if there is disagremeenent on. This paper states there is no ECB loss/recapitalisation agreement in place:


A key quote there:

"If it is to be the euro area national Treasuries that will provide fiscal back-up for the ECB, in what proportions

will they share the fiscal burden of recapitalising the ECB, should the need arise?  

There is one readily available key for distributing the fiscal burden of recapitalising the ECB if in the future

its balance sheet is impaired as a result of lender of last resort operations or market maker of last resort actions

vis-à-vis EU-banks.  This would be for each euro areaMember State national Treasury to pay a share of the

bail-out costs equal to the share of its NCB in the totalshare capital of the ECB, divided by the sum of the

shares of all euro area NCBs in the total share capital of the ECB.  Other formulae can be thought of, but it

would be wise to have something agreed before the first EU Bank incorporated under EU statute law pops up and goes belly-up"

Wed, 10/26/2011 - 06:46 | 1811487 Withdrawn Sanction
Withdrawn Sanction's picture

Negative equity in balance sheet doesn't matter, or if it matters ECB can print money to make whole the minor shortfall of few billions.

What you've just stated is equivalent to claiming the ECB has insufficient means to make good on its liabilities, the chief one of which is the euro.  I agree.  Whether they actually recognize this fact w/honest marks is an important but secondary consideration.  Financial gravity asserts its inexorable pull on all players, whether they choose to recognize it or not.   

Wed, 10/26/2011 - 05:30 | 1811453 TooBearish
TooBearish's picture

Take a seat, Pete, the ECB will never mark to market and therefore THERE WILL BE NO CAPITAL CALL - you shld know this - Dood

Wed, 10/26/2011 - 08:48 | 1811829 DebtSlaveZombie
DebtSlaveZombie's picture

Nothing is over. Nothing. You just don't turn it off. It wasnt my war. You asked me I didnt ask you.... :-)

Wed, 10/26/2011 - 10:20 | 1812245 RemiG2010
RemiG2010's picture

Nothing is over! Nothing! You just don't turn it off! Nothing is over until I say it is!

Tue, 10/25/2011 - 20:55 | 1810587 i-dog
i-dog's picture


We interrupt your regular programming [pun intended!] to bring you this important development in the fight against global central planning ... aka the NWO.

Alternative media coverage of the Vatican's call for global economic central planning has been pulled!!

On Monday, the world's oldest, largest and richest multinational corporation--the Vatican--released this globalist blockbuster: (links*: Reuters; Vatican Radio)



Vatican calls for global authority on economy, raps “idolatry of the market"

The Vatican called on Monday for the establishment of a “global public authority” and a “central world bank” torule over financial institutions that have become outdated and often ineffective in dealing fairly with crises.

The document from the Vatican’s Justice and Peace department should please the “Occupy Wall Street”demonstrators and similar movements around the world who have protested against the economic downturn.

Though this release was originally covered by HuffPost, Drudge and Infowars without comment (but not by ZH!?!), both Matt Drudge and "anti-globalist" Alex Jones have since pulled this important globalist story from their home pages!! ... And the HuffPost is no longer covering it on their home page either, or even under either Politics or Business, but has buried it under "Life & Style", sub-topic "Religion"!!!


It seems to me that some Cardinal in the Vatican prematurely let the cat out of the bag and that the word has gone out from the masters to catch it and bury it at the back of the garden as quickly as possible!

FFS!! Those [apparently very few] of us who are opposed to global central planning by the NWO are on our own now!!

We apologise for the interruption and return you to your 'divide & conquer' programming....

Oh ... and PS: ... SECEDE NOW!!

*Note: Even Vatican Radio's original release (article #531752) has been pulled and replaced by this revised one (article #532223). http://www.radiovaticana.org/en1/Articolo.asp?c=532223

Tue, 10/25/2011 - 20:57 | 1810599 Ahmeexnal
Ahmeexnal's picture


Tue, 10/25/2011 - 21:50 | 1810800 Carlyle Groupie
Carlyle Groupie's picture

LoL. Yes, nice. Take the focus off the lizard people, the Pope is actually the head of AIPAC.

Tue, 10/25/2011 - 22:05 | 1810828 i-dog
i-dog's picture


PS. You sure do live up to your tag! Cute. "First they ridicule you,...." (PsyOps 101)

Tue, 10/25/2011 - 22:49 | 1811011 False Capital
Tue, 10/25/2011 - 23:22 | 1811112 i-dog
i-dog's picture

Thanks, but I'd already read it yesterday. Can you also post a link to where he discusses it on air and expresses his "outrage" along with his other "anti-globalist" rants?

Tue, 10/25/2011 - 21:02 | 1810610 navy62802
navy62802's picture

The Vatican has one thing correct in their statement ... we do suffer greatly from idolatry of the market. As for their "global central bank," they can take that idea and shove it where the sun don't shine.

Tue, 10/25/2011 - 22:12 | 1810873 zorba THE GREEK
zorba THE GREEK's picture

The Vatican might be on to something, seeing how well

central planing is working out for Europe.  The Vatican has not been able 

to come up with a credible plan to rid its organization of child molestors

for nearly 2000 years. So what makes them think they can come up with

a plan to solve the worlds' financial crises? Like the politicians in Washington,

the Vatican is out of touch with the real world. If there was any real justice in

the world, the Catholic Church's central leadership should be tried for crimes

against humanity for their role in the global coverup of sex crimes involving


Wed, 10/26/2011 - 04:32 | 1811431 frenchie
frenchie's picture


and what about all these muftis and rabbis sodoming boys around the world ?

Wed, 10/26/2011 - 11:21 | 1812664 hvl626
hvl626's picture

Are you including members of the Sanhedrin who kept adolescent wards of the Temple in their homes and found to be impregnated at puberty around 7-5 BC ?

Tue, 10/25/2011 - 21:20 | 1810670 equity_momo
equity_momo's picture

Good spot. So whats next ? Whats the agenda? One currency? Would that benefit tptb? What do the vatican want -control/power. How do they get that? Bomb more brown people? Cause a global meltdown to starve out the threat? and force their flock to remember who provides the fish and bread? As usual , more questions than answers.
There are so many ways to divide and conquer now , tptb have got it made. Theyre loving this.

Tue, 10/25/2011 - 23:15 | 1811081 i-dog
i-dog's picture

"Good spot."

The 'hat tip' goes to "Ahmeexnal" ... if he hadn't posted this on Monday, I wouldn't have even known about it!

"So whats next ? Whats the agenda?"

The agenda is "Problem. Reaction. Solution" or, as Hegel put it "Thesis. Anti-thesis. Synthesis". Create a problem (FED bailouts; European indecision), promote a reaction (#OWS; public outrage), then offer a [seemingly rational] solution (Global Central Bank; One World Government).

The solution that is put forward is totally pre-planned before the problem is deliberately created. It's all scripted and stage-managed.

"What do the vatican want -control/power."

The Vatican is just one organ of TPTB ... a very large organ with hundreds of thousands of priests, academics and 'knights' plus 2 billion adherents -- particularly concentrated in Southern Europe (the PIIS of the PIIGS) and Latin America (from Mexico to Tierra del Fuego). It is now controlled by the Jesuits (the Jesuits and the clergy have been fighting each other for centuries over control of the Vatican, but the Jesuits have been in continuous control now since before WWI).

So "yes", those who control the Vatican (the Jesuits and their brothers-in-Lucifer Labor Zionists, the Sabbateans) do wish to use the Vatican to control the serfs through propaganda and "the infallible [sic] authority of the Pope" ... but the One World Government would be the centre of executive power. The priests always work in concert with the rulers: the rulers manage the aristocracy and the priests manage the serfs.

"tptb have got it made. Theyre loving this."

I disagree. Central planners always fuck things up. I think that Europe has blown up prematurely for them (ie. prior to the final shutdown of the US) and that they are now scrambling to keep the EU together at the moment. IMO, they originally wanted to expand the EU to include the former-Soviet East European states and the North African states, but Gaddafi's resistance pushed their schedule and global acceptance out of whack.

So, I don't think they're loving this at all at the moment! And if any European or US states were to secede, then their plans would be shot to ribbons ... they'd have to resort to fascist force rather than political cunning to "herd the cats" -- and that could cause dangerous blowback. :)

PS. SECEDE NOW!! (If you can't get your state to do it, then just do it personally).

Tue, 10/25/2011 - 21:40 | 1810756 Mr_Wonderful
Mr_Wonderful's picture

The Vatican?

How many divisions do they have?

--- J. Stalin

Wed, 10/26/2011 - 01:02 | 1811218 i-dog
i-dog's picture

LOL. The Jesuit-trained crypto-Roman Catholic Joseph Djugashvili (“Son of Steel”) Stalin (“Man of Steel”), certainly would have known. His 'job' was to eradicate the 'heretic' Orthodox Church from Russia ... at which he appears to have been quite efficient - certainly more efficient than he was at feeding the Russians or developing their infrastructure. ;)

Tue, 10/25/2011 - 21:42 | 1810766 erumisato
erumisato's picture

So it's the Jesuits who pull Jones's strings after all. I held out (some)hope that he was the real deal.

Tue, 10/25/2011 - 21:56 | 1810815 i-dog
i-dog's picture

Yep. As I said in another thread earlier today (while the story was still running, but without any commentary from Alex or his editors), he's blown his cover with this one!

Tue, 10/25/2011 - 23:13 | 1811097 erumisato
erumisato's picture

It seems that everyone is a god damned double agent anymore, so I'll still listen to him. He's still a hell of a lot better than pretty much any other radio talking head. Something started to smell fishy to me after he kept on having Steve Pieczenik come on his show after he professed how much he loved Don Papa Bush as POTUS. The irony here is that it's from listening to Jones and a couple of other sources that got me to the point where I can understand how some of these fucks think and operate, and the ability to recognize the mechanisms that they use to sway opinion and to disseminate (mis/dis)information. 

Wed, 10/26/2011 - 00:11 | 1811239 i-dog
i-dog's picture

Like you, I learned a lot from AJ and consider most of his information to be accurate and helpful. But after finding out about his true background, and also earlier considering this perspective from Alan Watt, I found it impossible to continue to listen to AJ's rants and obvious hiding of the real puppet-masters.

I do still check his website occasionally and also listen to the occasional interview to see how he and his guest handle a particular topic.

Wed, 10/26/2011 - 01:06 | 1811316 erumisato
erumisato's picture

Watt hosts perhaps my favorite radio show. I'm sure that there's more to him than meets the all seeing eye as well. Same with Jeff Rense. All of them have some fantastic information, but each one has certain topics that never seem to be explored very deeply on their respective shows. Between those three and old William Cooper broadcasts, along with my daily dose of ZH and the Daily Bell, and the follow up research on the topics they cover, I've received an education that's more relevant than any BA degree.



Tue, 10/25/2011 - 22:14 | 1810847 Dapper Dan
Dapper Dan's picture

Good thing I printed and saved this,

Vatican Calls for Global Oversight of the Economy


Published: October 24, 2011


VATICAN CITY — The Vatican called on Monday for an overhaul of the world’s financial systems, and once again proposed the establishment of a supranational authority to oversee the global economy, saying it was needed to bring more democratic and ethical principles to a marketplace run amok.

Connect With Us on Twitter 

Follow @nytimesworld for international breaking news and headlines.

In a report issued by the Pontifical Council for Justice and Peace, the Vatican argued that “politics — which is responsible for the common good” must be given primacy over the economy and finance, and that existing multinational institutions like the International Monetary Fund have not been responding adequately to global economic problems.

 Update:  article is on Alex Jones web site just bumped down, not that I go there much ;)

 Here is an invaluable tool for my fellow ZH crew.  These people have our backs. 


Tue, 10/25/2011 - 22:15 | 1810881 CrazyCooter
CrazyCooter's picture

My thinking, up until very recently, was that this "collapse" was just part of the script.

I don't think that anymore.

The Vatican is "telling" great weakness with this position in the media; they are clearly fucked if Europe blows up.

I really thought the real (i.e. final) crash would be after the next election, not before it. This is a huge X factor in political plans, to fuck the serfs over a barrel before they get to choose a House, part of a Senate, and a President.

Not to be US centric, but we are the worlds policeman and such things have to factor into real decision making (from an elite perspective).

Wow, just fucking wow.

And thanks for sharing. I got the word out to my five readers. :-)



Tue, 10/25/2011 - 23:54 | 1811210 Saxxon
Saxxon's picture

Yes crazycooter, something like that; or the Vat is trying, like the ratings agencies last week, to jump ahead of the parade before the shitbag blows up.

Who doesn't despise the lamprey banking system and its handlicking attendants (Sarkozy, Merkel, Obama, et al.).

Tue, 10/25/2011 - 20:56 | 1810596 msmith
msmith's picture

More EU problems will begin to weigh heavily once again on equities.  - After the correction for the SPX today, price action should push higher for the next several days.  The DX continues to look bearish in the short term as the EURUSD is pointing higher with equities.  More "risk on" ahead. http://bit.ly/uFJB9g

Tue, 10/25/2011 - 21:27 | 1810700 ISEEIT
ISEEIT's picture

Wouldn't count on it. AUD seems to be decoupling from the EUR. That it not 'risk on'. To soon to really call it but I've been out of the EUR for the past month and am short AUD. It's a cheaper trade than EUR and will fall victim to USD strength whether via EUR going soft or global slowdown. My reasoning is that AUD drops regardless of EUR shenanigans.

Time will tell.

Tue, 10/25/2011 - 22:21 | 1810900 chump666
chump666's picture

I agree, looks like the market is going risk averse and the AUD is a good gauge.  Markets look thin right across the board. 

Wed, 10/26/2011 - 05:13 | 1811445 letitgo
letitgo's picture

AUD was smashed by lower than expectation inflation figures and the consequent higher likelihood of a rate cut next week.  Its big moves will be on those factors for a while.

What's interesting right now is how the EUR is staying strong against the USD, GBP etc.  My guess is that non-Europeans are finally starting to work out that the EZ is less prepared to print than its counterparts.

Tue, 10/25/2011 - 20:57 | 1810600 Stagflationary
Stagflationary's picture

Why would there be an end-game? Other than wishful thinking can you explain what would trigger such an event instead of continued postponement of the end?

Tue, 10/25/2011 - 21:07 | 1810624 iLoveMisesToPieces
iLoveMisesToPieces's picture

Because at some point you have to have capital and not just a bunch of paper.

Tue, 10/25/2011 - 21:11 | 1810635 Stagflationary
Stagflationary's picture

Sure, but what makes that point this week? I'm sure a minimal amount of capital can be provided, accounting rules fudged to prevent mark-to-market, etc. for a very long time. After all, Greek current deficit is peanuts when spread across Europe's 500mm peeps.

Tue, 10/25/2011 - 21:27 | 1810701 iLoveMisesToPieces
iLoveMisesToPieces's picture

It looks like the prisoner's dilemma is breaking down.  TPTB aren't a homogenous unit, they just use each other to perpetuate the ponzi.  The weak links have cracked so now their only option is to toss each other under the bus and hope to come out the least unscathed.  The only reason the ponzi works is because enough of these groups conspire to make it work.  You can only flip paper back in forth so long as people with capital will trade that capital for paper.

Wed, 10/26/2011 - 02:19 | 1811368 Which is worse ...
Which is worse - bankers or terrorists's picture

This has been said for years. When is the tipping point?

Tue, 10/25/2011 - 21:01 | 1810601 knukles
knukles's picture

ECB has a Western Syndicate style Capital Call Arrangement?
You have got to be kidding me!
Those fuckers are absolutely batshit unbelievably crazy.
Deutscheland!  You best be a printing a whole bunch of new D-Marks and be getting' ready to walk the tab.
That is just down right irresponsible.
You got some old timers to hang out to dry.
Everybody else says "No" and you own it.
Musical Chairs.
Best just walk the game.
For shit sake, there is No Way Out!

(maniacal laughter)

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