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Bill Gross Explains The European Ponzi

Tyler Durden's picture


Not like it is news, but... Out of one pocket, into another, and in the mean time "things get better" as Gross explains below. That said, we hope Bill knows where Allianz of A&G fame (which just happens to be the closest comp to our own AIG) falls in the pecking order of the European house of cards.


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Wed, 02/08/2012 - 14:41 | 2138668 BaBaBouy
BaBaBouy's picture

Hehehehe... You Can't Make This Shit Up ...

YEP, It's All GREEK To Me ...

"" Earlier, an official said Karatzaferis wanted all documentation translated from English - the language of negotiation with the international lenders - into Greek before he would look at them.

The far-right leader then threatened to abandon the meeting because he had not received the Greek version of the document, though he has backed down from similar threats in the past. ""

Wed, 02/08/2012 - 14:48 | 2138706 Comay Mierda
Comay Mierda's picture

i bet he's feeling a little more Ron Paulish

Wed, 02/08/2012 - 14:58 | 2138717 whstlblwr
whstlblwr's picture


Did you see press release from Paul campaign, impressive delegate strategy. Hope they have plan when the GOP tries to steal their delegates

“We are confident in gaining a much larger share of delegates than even our impressive showing yesterday indicates. As an example of our campaign’s delegate strength, take a look at what has occurred in Colorado:

In one precinct in Larimer County, the straw poll vote was 23 for Santorum, 13 for Paul, 5 for Romney, 2 for Gingrich. There were 13 delegate slots, and Ron Paul got ALL 13.

In a precinct in Delta County the vote was 22 for Santorum, 12 for Romney, 8 for Paul, 7 for Gingrich. There were 5 delegate slots, and ALL 5 went to Ron Paul.

In a Pueblo County precinct, the vote was 16 for Santorum, 11 for Romney, 3 for Gingrich and 2 for Paul. There were 2 delegate slots filled, and both were filled by Ron Paul supporters.

We are also seeing the same trends in Minnesota, Nevada, and Iowa, and in Missouri as well.

“We may well win Minnesota, and do far better in Colorado than yesterday’s polls indicate.

Wed, 02/08/2012 - 16:34 | 2139085 SillySalesmanQu...
SillySalesmanQuestion's picture

View this shocking news about delegates and votes being stolen(gasp) from Ron Paul in Nevada. I can't immagine why the Repugs & MSN would'nt want RP to win...? /sarc

Wed, 02/08/2012 - 19:04 | 2139158 whstlblwr
whstlblwr's picture

Don't forget Dems. Ron Paul would beat Obama. This video doesn't show anything. But I'm sure they threw away RP ballots, maybe he was too close to number one.

It's great RevolutionPAC is going to safeguard primary vote. Hopefully they'll do more than polling and guard strongest precincts with video camera.

Wed, 02/08/2012 - 23:28 | 2140464 streetcrawler
streetcrawler's picture

Give me a break, Ron Paul is a degenerate. All of his insane Ayn Rand bullcrap aside, he seems to have a very loose grasp on economics:

Yes Ronnie, why don't the central banks hold diamonds intead of gold? Ron Paul would have no chance of beating Obama unless he plans on getting the honest rape vote.

Thu, 02/09/2012 - 02:07 | 2140822 baby_BLYTHE
baby_BLYTHE's picture

I assure you Ron Paul's personal beliefs are in no way congruent to the Zionist Ayn Rand's.

Wed, 02/08/2012 - 14:56 | 2138730 Ahmeexnal
Ahmeexnal's picture

Judging by the spelling faults, I'd say he's feeling a little more Jim Beamish.

Wed, 02/08/2012 - 15:16 | 2138794 CPL
CPL's picture

I just go with the idea anyone that uses twitter is a drunk by proxy and the built in 144 character limit.

Wed, 02/08/2012 - 15:38 | 2138853 Michael
Michael's picture

I'm not an extremist, I'm a passionist. My religion is passionism.

Wed, 02/08/2012 - 15:41 | 2138862 falak pema
falak pema's picture

how many conquests? As Stalin would say or Don Juan.

Wed, 02/08/2012 - 15:05 | 2138760 Silver Bug
Silver Bug's picture

You gotta love Bill Gross. One of the only mainstream money managers that is willing to speak his mind. Keep it up Bill, history will show who was right.

Wed, 02/08/2012 - 15:15 | 2138792 green888
green888's picture

sounding like a terrorist now

Wed, 02/08/2012 - 15:21 | 2138802 Alea Iactaest
Alea Iactaest's picture

If BG hasn't been kicked out of the club yet he's talking like he knows he will be soon.

Wed, 02/08/2012 - 15:37 | 2138851 kito
kito's picture

pretty soon the entire american population will be terrorists except for those normal, mainstream, patriotic one percenters............

Wed, 02/08/2012 - 17:06 | 2139224 MarcusLCrassus
MarcusLCrassus's picture

Where in the Constitution does it say that you can hand me a piece of paper that isn't in English?!?

Wed, 02/08/2012 - 14:40 | 2138675 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Tis a wonder to behold, somewhat like a perpetual motion machine.

Wed, 02/08/2012 - 14:42 | 2138684 GeneMarchbanks
GeneMarchbanks's picture

Don't get too used to it, don't want to end up being the turkey.

Wed, 02/08/2012 - 14:45 | 2138695 disabledvet
disabledvet's picture

I thought that was the plan? Turn them into food? Or is it "Internet people that your children can play with?"

Wed, 02/08/2012 - 14:41 | 2138676 falak pema
falak pema's picture

maybe he is better placed to expose the FED/WS/PDs/HF/derivatives/Commodities/off balance sheet/OTC derivatives ponzi system that handles notionals beyond comprehension. He is stting slap bang in the middle of it.

Wed, 02/08/2012 - 14:40 | 2138677 Jlmadyson
Jlmadyson's picture

Madoff would be proud.

Wed, 02/08/2012 - 14:41 | 2138680 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Hey Bill!

Treasury issues bonds, sells them to Private Dealers, PDs flip bonds to Fed T +1.

Wed, 02/08/2012 - 14:46 | 2138700 GeneMarchbanks
GeneMarchbanks's picture

It burns!

Wed, 02/08/2012 - 14:51 | 2138712 CrashisOptimistic
CrashisOptimistic's picture

Gross has become hugely negative of late.

Wed, 02/08/2012 - 14:53 | 2138722 GeneMarchbanks
GeneMarchbanks's picture

Notice how he isn't in the loop described above. Not easy to be weaned off of the teet.

Wed, 02/08/2012 - 15:12 | 2138781 nonclaim
nonclaim's picture

He realized it is dry now, wondering why the others are still fighting for it...

Wed, 02/08/2012 - 15:05 | 2138761 barliman
barliman's picture


... and Nouriel Roubini is saying it's a good time to buy equities.

They are individual pointers to a massively overbought market.


Wed, 02/08/2012 - 14:44 | 2138692 Ahmeexnal
Ahmeexnal's picture

And yet the sheeple party on like it's 1919.

Wed, 02/08/2012 - 21:00 | 2140018 LouisDega
LouisDega's picture

That avatar ... Are you supposed to be Jim Morrison in his fat bastard stage or the cave man from Geico?

Wed, 02/08/2012 - 14:45 | 2138697 Jason T
Jason T's picture

anyone care to comment on this from the folks at LaRouche?  

Why the British Monarchy Must Have World War Now February 4, 2012 • 12:40PM

A senior U.S. intelligence official has warned that the Inter Alpha Group-centered European private banking system is going to need an estimated 5 trillion euro in zero-interest loans this year, to avert a total crash. The source commented on Friday on the fact that European banks have already told the European Central Bank that they will need one trillion euro in discount borrowing before the end of February. In effect, with illegal secret backing from the U.S. Fed, the ECB is running a European carry trade, issuing near zero-interest loans to banks so they can turn around and buy up European sovereign debt, at 5-7 percent yields or more. The "profits" are booked by the banks to cover for the fact that they are hopelessly bankrupt. The source further explained that much of the sovereign debt that the banks are buying cannot be paid. Portugal, Spain, Italy and Ireland are in the same boat as Greece. It is estimated that Portugese debt will ultimately be redeemed at most at 30 percent value, Spanish debt at 40 percent value. Italian debt is totally unpredictable.

The source emphasized that the one billion euro being demanded this month is but a fraction of what the banks will need over the coming months, and that we have reached a point of "hyperinflationary explosion" that cannot be postponed for much longer. The threshold for an explosion was reached a year ago, the source concluded, and it is only a matter of weeks or months, at the most, before the whole system detonates. Despite Angela Merkel's claim that Greece is a "unique case," and that the haircut being negotiated between the Greek government and private bondholders will not be repeated elsewhere in euroland, the fact is that the Greek deal—if it is ever finalized—will set the framework for Portugal, Ireland, Spain and Italy.

Commenting on this report on Friday evening, Lyndon LaRouche emphasized that this is why the British Monarchy cannot delay any longer the plans for a thermonuclear war, involving the United States, Russia and China. Already, he noted, their timetable has been thrown way off, due to war-avoidance efforts led by the U.S. Joint Chiefs of Staff, Russia, China and others. Now, the European and trans-Atlantic financial system is at a break point, and the British Monarchy has so far been unable to yet trigger the global thermonuclear conflagration that they desperately seek, to save their dying Fourth Roman Empire system.



Wed, 02/08/2012 - 14:49 | 2138711 resurger
resurger's picture

Hello Jason.. Links please thnx

Wed, 02/08/2012 - 15:09 | 2138758 resurger
resurger's picture

So basically (we are physically vaporized)

i can see this unfolding to be honest which is scary, i think the fronts will be

1- USA


3- GCC / MidEast / Africa / Australia/ India / South Korea / Japan


1- China

2- Russia

3- IRan / Pakistan / North Korea / Cuba / South America


It will be a big bloody clusterfuck, but we will be all dead by Robo & Drone Inc.

So, back to the stone age

Wed, 02/08/2012 - 15:20 | 2138800 Jason T
Jason T's picture

Crazier things have happened before.. so who knows what can happan from here and what's going on behind the scenes.  I don't know.

Wed, 02/08/2012 - 16:31 | 2139098 Temporalist
Temporalist's picture

Blame Canada!

Wed, 02/08/2012 - 15:00 | 2138744 barliman
barliman's picture


"It puts the medication on its tongue and swallows it down ... or it gets the hose."

"The only winning move is not to play."

Global thermonuclear war will save the British monarchy?!?

Seriously, dude. Take your meds and watch 'Wargames' on Netflix.


Wed, 02/08/2012 - 15:08 | 2138762 cranky-old-geezer
cranky-old-geezer's picture



So where's the connection between EU / America sovereign debt collapse and thermonuclear war, irrespective of who wants it?

How does everybody nuking everybody else solve a sovereign debt problem Britain's favor no less?

It IS interesting nonetheless that LaRouche's source says who the major players are, Russia, China, America, exactly what I've been saying vis a vis Iran.

British monarchy behind it?  Sounds a little goofy.

Wed, 02/08/2012 - 15:13 | 2138786 Biosci
Biosci's picture

How does everybody nuking everybody else solve a sovereign debt problem

I think that answer is pretty self-evident!  But 'goofy' pretty much sums up the rest.

Wed, 02/08/2012 - 15:19 | 2138799 Ahmeexnal
Ahmeexnal's picture

Europe wants to nuke it's creditors.  Now how's that for a haircut?

Wed, 02/08/2012 - 15:12 | 2138779 Ag1761
Ag1761's picture

Usual anti monarchy pish from LaRich PAC.

Wed, 02/08/2012 - 15:24 | 2138812 Randall Cabot
Randall Cabot's picture

Putting it on the british monarchy is a joke but he's right that the world is in a FUBAR situation-who knows how many billions and trillions it is going to take but there is no doubt that the world is getting closer and closer to some kind of showdown every day: latest is a report that iran has deployed 15000 troops to Syria to aid Assad so we could see real soon Iranians and Syrians fighting Turks, Libyans, Jordanians, Al Qaeda and israelis in Syria:

"The Al Arabiya news channel reported that Iran's Revolutionary Guard has deployed 15,000 armed troops to Syria recently in order to help Syrian President Bashar Assad in his fight against opposition forces.",7340,L-4186659,00.html

Wed, 02/08/2012 - 15:33 | 2138842 gmrpeabody
gmrpeabody's picture

Not much of a source...

Wed, 02/08/2012 - 15:54 | 2138913 Eisenhorn
Eisenhorn's picture

this is why the British Monarchy cannot delay any longer the plans for a thermonuclear war

Since when is global destruction a valid plan to "save the Empire"?

Fail on too many levels to go into.

Wed, 02/08/2012 - 16:40 | 2139132 Temporalist
Temporalist's picture

I agree. One little island should be much more fearful of an attack than others. They are susceptible to much more devastation because of their geography.

Wed, 02/08/2012 - 18:25 | 2139512 bbq on whitehou...
bbq on whitehouse lawn's picture

Ill take a stab. 

If you are a bunch of inbred retards and you have a big bunker, safe frozen crop seed and think that you can re-grow the world after 30years of bunker life.

Then maybe your crazy enough; to go ahead and build your bunkers and freeze your crops seed.

Maybe even crazy enough to try. Who knows inbreds are crazy and scary, thankfully they die off quickly in nature. To bad money stops nature from carrying out her apointed tasks.



Wed, 02/08/2012 - 16:55 | 2139178 earleflorida
earleflorida's picture

are they looking at the same Mayan calender?

Wed, 02/08/2012 - 14:52 | 2138715 narnia
narnia's picture

Treasury issues debt.  Fed purchases portion of debt to circulate base money.  Base money circulates, gets deposited into banks.  Treasury guarantees bank deposits.  Treasury issues more debt.  FDIC insured banks  & foreign countries who export products purchase Treasury debt.  Treasury issues more debt than banks & foreign countries and consume, so Fed buys more Treasury debt.  

I'm not seeing much of a difference between Europe & US. 

Wed, 02/08/2012 - 14:56 | 2138734 GeneMarchbanks
GeneMarchbanks's picture

All as planned, almost to a T because I think the LTRO and 'sterilization' thing was not exactly what Goldman wanted but close enough.

Are you complaining? I'll report you, don't think I won't.

Wed, 02/08/2012 - 15:04 | 2138752 NotApplicable
NotApplicable's picture

Gross did it in less than 140 chars. ;-)

Wed, 02/08/2012 - 15:57 | 2138928 the grateful un...
the grateful unemployed's picture

try to think of Alabama as its own country

Wed, 02/08/2012 - 16:45 | 2139126 flattrader
flattrader's picture

Last I checked, only damned state in the nation where you can't home distill...legally that minimums, permits etc...

I think we should just throw them out of the Union.

Wed, 02/08/2012 - 14:56 | 2138735 adr
adr's picture

I see the Euro close rally is in effect again today. I guess the same exact HFT buy program is continually running. Apple continues to go higher 1% every day based on nothing. Oh yeah I forgot, THE APPLE TV RUMOR!!! wow a $1500 42" TV based on a $799 LG model. BUT IT'LL HAVE THE APP STORE CREATING NEW APP JOBS!!! Yes we can all just make apps for Apple and eat lobster every night!!! I don't understand how people can be stupid enough to think Apple makes the only worthwhile product and will pay three times the real market value just to get the stupid Apple logo. A country worshipping Apple deserves to burn.

Wed, 02/08/2012 - 15:34 | 2138847 fonzannoon
fonzannoon's picture

You have to jst stand here and give a giant golf clap to whoever is pulling the levers. It's like they don't even take a piss break.

Wed, 02/08/2012 - 15:40 | 2138860 besodemuerte
besodemuerte's picture


Wed, 02/08/2012 - 15:39 | 2138857 besodemuerte
besodemuerte's picture


I couldn't agree more.  The biggest market cap company in the US makes cosmetic toys made by half a million chinese earning $5/day, that sell at 3x the price of their peers' products.  Well isn't that fucking awesome!  I'm so sick of AAPL and our ghost economy built on cell phones.  Cell phones that everyone must have so they can poke and text each other all day while sitting next to each other at Panera sipping their $4 coffee.

I don't want the global collapse because of all the pain it will cause, but come the fuck on people our culture is so bass ackwards there's nothing left that will wake people up to real life.

Wed, 02/08/2012 - 16:52 | 2139143 flattrader
flattrader's picture

>>>THE APPLE TV RUMOR!!! wow a $1500 42" TV based on a $799 LG model.<<<

So, you pay nearly twice as much for the TV itself...and then there are monthly fees of some kind?  subcription costs?  you're streaming from your PC?

Does anybody know how this is supposed to work?


Nevermind.  I get it now.  It's all consumption oriented at outrageous prices.

Don't eat the poisoned Apple.

Wed, 02/08/2012 - 15:07 | 2138765 taniquetil
taniquetil's picture

Step 1: Borrow money from ECB

Step 2: Borrow more money from ECB

Step 3: Use money you borrowed from ECB to pay back the ECB.


Is anyone getting an Inception vibe from Greece?

Wed, 02/08/2012 - 18:08 | 2139450 Howdan
Howdan's picture

Hahahah this is just genius! What a fantasticly funny but 100% true comment. Love it!

Wed, 02/08/2012 - 15:41 | 2138864 PORTA PORTA
Wed, 02/08/2012 - 15:42 | 2138869 Mark123
Mark123's picture

Bill Gross....a man who has found religion?  Was he always this skeptical, or is he just bitter that the powers that be are confiscating his wealth now?

Wed, 02/08/2012 - 15:44 | 2138881 alien-IQ
alien-IQ's picture

Coming across on the wires now, looks like Greek politicians have agreed to completely sell out the nation in favor of saving European banks bu agreeing to nearly everything that was demanded of them.

And the market will now POP...because it's just fuckin stupid like that.


Wed, 02/08/2012 - 15:57 | 2138924 MFL8240
MFL8240's picture

Hey Bill, how about a few words on the US Ponzi?

Wed, 02/08/2012 - 16:02 | 2138961 the grateful un...
the grateful unemployed's picture

the US can do this with California, use them as a third party to monetize debt? I mean that's where Apple is based? the Ipod and Gyro seem like pretty much the same thing. Facebook could build out the App's, school App, K-12, DMV App, Muni Bond App?

Wed, 02/08/2012 - 16:49 | 2139160 Temporalist
Temporalist's picture

One word sums this all up. Tradition.

Wed, 02/08/2012 - 17:23 | 2139284 Bastiat009
Bastiat009's picture

The euro is the strongest currency there is (don't ask me why, but facts are facts)

Bill Gross has never seen a bailout he didn't like (when he gets to benefit from it). No principles, no courage ... not a good person.


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