Daniel Hannan Channels Upton Sinclair, Warns "All The Options From Here Are Bad"

Tyler Durden's picture

"All the options from here are bad, I am afraid" is how MEP Daniel Hannan describes the way forward in Europe in this FOX News interview. In one of the clearest and least status-quo-hugging explanations of what has occurred (gentile and bloodless coups in Italy and Greece), the 'cruel and irresponsible behavior' of European leaders stuns him and all in the name of the 'wretched single-currency'. When asked why they (the EU leaders) just don't get it (channeling Upton Sinclair's now infamous quote), Hannan replies "It is remarkably difficult to make a man understand something when his salary depends upon his not understanding it" as he makes it clear that the vested interests in keeping the Euro going (well paid and powerful government jobs for example) means they are prepared to inflict this shocking poverty on the Mediterranean countries. Summing it up nicely: until they leave the Euro, the Greeks have got no light at the end of the tunnel, making the point that Greece's least painful option is to Default, Decouple, and Devalue.


Starting from around 0:55, the European Member of Parliament begins his less than sanguine discussion:

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The Shootist's picture

Greece wont default, so plan accordingly.

The trend is your friend's picture

Their politicians put into power won't let them default.  The people WILL Default

agent default's picture

That's why the Greek default is so scary, the political will is dead against the default.  If if happens regardless, it means that the have totally lost control of the situation.  This will be the reason behind the panic after a Greek default, and this is why Greece cannot be contained.  The fallout is more political than financial at  this point.

economics1996's picture

Revolution.  The killing will commence.

economics1996's picture

America will have its turn, get ready.

Chief KnocAHoma's picture

Nah... don't think so. Our manufactures are returning home. The slopes can't keep us in asia when the dollar sinks, so we will rebuild our base.

The whole exercise of musical chairs may stop for a while, but USA will be fine. We got two oceans, oil, hard workers and we are gonna vote out the idiot child and his commie buddies in a few months.

We'll be back on top while your socialist fucktards are trying to figure out how we keep doing that.

dontgoforit's picture

Well, Chief, I hope the Braves will win it this year, but I has my doubts.  I got some doubts about the manufacturing thing too.  But, holy cow scoop, Ghostrider, I hope ur right about the Bummerman! 

trav7777's picture

there is light at the end of the tunnel for lazy, greasy greeks only when they stop lounging in cafes pretending to work and actually start producing.

machineh's picture

My my, aren't we superior?

margaris's picture


since when is working as a wage slave or indentured servant the goal in life?

Isn't 30 years of work enough? Why do some assholes believe we have to work till 67 or more?

Why, because they are debt slaves to the banks, and have to pay their mortgage forever??

It's such a death spiral.... what a vicious cycle.

My advice: get out of debt and live an easy simple life. Dont buy things you cant afford.

Try to exist outside of socialist state programs. Be independent. Dont expect anything, dont

impose anything.


Life is easy, why do we make it so hard?


We dont need to be consumer bitches... we want to have a poor but free life.

its so easy.

bugfixx's picture

Too many people's careers in the West now depend on being state-paid busybodies hectoring the citizenry on how to live.

Nacho Libre III's picture

The greeks will produce soon enough, probably a revolution. Meanwhile, if you are in the u.s., you can observe laziness enabled on a scale that foreigners could only dream of.

francis_sawyer's picture

I guess you can't call the 'baristas' lazy...

Coke and Hookers's picture

Have you ever produced anything Trav? Aren't you a trader? ;-)

Lord Koos's picture

And Trav what do you produce other than anonymous hate-screeds on the internet?

CrashisOptimistic's picture

1) There is no such thing as a sovereign default.  The bond holders don't accept a declaration of default because there is no bankruptcy court to force them to.  They keep sending bills demanding payment, forever.  So default doesn't do anything for Greece other than let them skip some payments and not be able to borrow money to fund pensions and government employee paychecks -- given no one will lend to them within 24 hrs of default declaration and a deficit requires borrowing.

2) The choice is endure that calamity NOW or go along with the EU's plan and stretch out the pain to a lesser amount for a longer time and even provide themselves with a bit of hope that a miracle will appear and end the pain altogether.  After all, about 50% of their debt is about to be forgiven so this approach of extend and pretend is about to yield results.

Based on these two realities, why would they default?

donsluck's picture

The debtor's "miracle" you refer to is, of course, death.

itstippy's picture

There's no legal framework for a default of sovereign Greek bonds, no.  But the practical result would be that the bonds become worthless, illiquid nothings that CAN'T be held as "assets" on a balance sheet.  The losses must be acknowledged.  No way to extend, pretend, mark-to-model, whatever.  There's no collateral.  They go to zip.  The bondholders can keep sending bills, but it would be like billing the Confederate States of America.  Good luck with that.

Why would Greece default?  They get fed up with the EU threatening their sovereignty, their Abrams Tanks aren't defending the Motherland so hot, so they tell the EU to fuck off and takes their chances.

Imminent Crucible's picture

Why would they default? That's not the question. Why would they stay in the euro? If they return to the drachma, they can value drachmae at parity with euros and print the money to pay back their debts. The drachma would immediately lose half its value, but Greece loses ALL of its debt, and best of all, they utterly shaft the thugs at the ECB who hold most of their debt.

What's not to like?

They've already lost access to international debt markets, 25% of the country's businesses have shut down, and Greeks are fleeing in droves. What have they got to lose?

ernan's picture

To me it is obvious. The Drachma would be instantly worthless. They would have instant hyperinflation nobody would trade with them for anything. They would be an instant Zimbabwe. For the greek people it would be a complete nightmare. The Greeks have to keep suffering this constant humiliation and finger pointing and everything else because they have no option they have to beg Europe to solve their debt problem because outside the Euro is instant financial doom.

Transformer's picture

Yeah, default is not a viable option.  It didn't work in Iceland and it won't work in Greece, either.

Diogenes's picture

But the Iceland economy is recovering nicely and Fitch just raised their credit to BBB.

Cadavre's picture

Greece has a lot of assets that will attract the currency to augment what they can't produce locally. The greeks got a solid ship works infra structure - the ageans - their culture. The bailout would require a lot of that stuff to be auctioned off. The drachma might be worthless outside greece, but it would work inside greece.

Lets not forget - the bets were made between politicians - and banks like goldmans that wrote up the placement docs with sexed up debt service analysis and banker off book gimmicks , and then - not too unexpectedly the GS bet against the placement / structure note they sold as a service to the greeks. Look what GS did for Ghadafi - someday someone somewhere is not going to rollover so willingly when the GS plays em - some people and cultures take that shit personal.

Iceland told scam insiders the bet was with the bankers so investors need to settle with the bankers. The bankers failed to markup the risk - fiduciary malfeasance nullifies the consignor's liability as the "full faith and credit" source of last resort, Iceland turned around a lot quicker than those who went for the IMF teat. PIMCO's Gross advised the Greeks to default. If that happened the GS would have pay the CDS claims - and that's the real reason this never ending charade of default mitigation is dragging on - the CDS writers are looking for the bucks to pay the bond holders that bought the paper GS placed. The greeks never had nothing to do with it - it's always been an argument over what a "default" is. At what haircut level does the global CDS arbitrator call a default and GS has to pay up to it's CDS counter parties - it's getting redicked to max - last proposed default state scenario was defined as a less than 50% return of principal to bond holders.

Greeks don't need the EZ - after all, they're greeks - but GS - GS needs to cover its ass,


Lord Koos's picture

"we got oil" that's a good one... lol

darkhorse222's picture

well maybe for evey one returning 10 are leaving-big whoop

Joseph Jones's picture

If you mean "killing" literally...how will the Greeks kill the EU bankers?

fonestar's picture

The Greeks should burn everything to the ground.  Leave the creditors nothing but ashes and rocks.

youngman's picture

I posted a video of Greece the other day...pretty pictures of lots of old ruins...now they will have new ruins...

Yellowhoard's picture

They'd just be doing the new owners a favor.

Other than the Parthenon, Greece is pretty much a tear down anyway.

Seer's picture

Investment tip: Halliburton (the eternal ambulance chasers)

Hugh_Jorgan's picture

Yeah, because the willfully ignorant, lazy Greek that thinks he can retire at 50 and live off a government pension and healthcare until he's 90 or 95 has no culpability in this mess...

Confused's picture

I love Americans, especially the ones who think its natural to work 80+ hours a week with 10 days off a year. As if its natural.


Lazy Greeks? Maybe they just understand something you don't? Or maybe not. Either way. I hope all that "hard work" is worth it in the end.

Pennywise's picture

Everyone should go to school to be in IB, make tons of money, get addicted to hookers and coke and then tell everyone else they are lazy.  My roommate is an accountant who comes home after 14-16 hr days, complains that his job sucks but can't wait for that 15% bonus to spend on some broad who doesn't call him back after hitting skins because he's a boring schmuck who's sold his soul.  Faust was saved because his goals were noble. 

Cugel's picture

We're happy to let anyone work as much or as little as they want -- just so their consumption remains in line with production. If you don't want to consume anything, you're free to not work at all. If you want stuff others have produced, your time is your bid.

At least that's traditional America. Modern America, god knows.

connda's picture

My dad worked until he was 72 and died two monthes after retiring.  Americans are wired to work themselves to death.

I took early retirement.  Thanks for the wakeup call Dad!

unrulian's picture

...american's aren't lazy...what's your trade deficit at now? for that matter how much money have you borrowed from china?...your not lazy...just dumb as stumps

FuentesElla23's picture

a best friend's mother-in-law makes $73 hourly on the computer. She has been laid off for 6 months but last month her income was $14399 just working on the computer for a few hours. Go to this web site and read more .... LazyCash9.com

TruthInSunshine's picture

Every nation who has at least III percent of its people desiring to be free should follow Iceland's lead and refuse to service any debt originated by fractional reserve banking practices.

Yes, there would be an initial shock to the system, but this would quickly cull what are 90% of the useless banking/financial institutions, 100% of the harmful fractional reserve central banks, and each and every nation so doing would quickly be on a path towards real, non-debt based, economic growth and real wealth creation, forcing a necessary discipline of choosing to live within one's means (while avoiding the forced indebted serfdom that fractional reserve credit schemes allow) and balancing those means with the inherent talent, skills and abilities of the members of the society.

It doesn't take more than III percent in order for such awakenings and rebirths to happen.

III percent is and always has been the critical mass level that overwhelms existing, corrupted systems.

III percent involvement mean that genuinely concerned leaders in industry, government, military and yes, even financial institutions have seen a future that is far better and more sustainable, and they have already banded together, along with supporters from the grass roots of society, to plan the new, debt free system.

Iceland is just the latest example in history (of many) that proves that debt-based economies are unsustainable and antithetical to true democracy and sovereignty.

DoChenRollingBearing's picture

+ 1 Truth, very interesting post.

I have seen estimates of between 1% - 3% of Americans who own non-jewelry gold.  If we get to the point of having over 3% here owning gold, that would parallel your discussion of III percent.

Very good!

TruthInSunshine's picture

This is why FDR (despite all the distractionary excuses provided) confiscated gold, as it was becoming a threat to the monopoly that were Federal Reserve Notes [in reality, certificates of indebtedness], the only legally recognized form of payment for all debts both public and private (a racket that the global fractional reserve central banking outfit couldn't afford to lose). I have no doubt this would happen again if similar events unfolded now.

By the way, all PIIGS bonds should from now on be sold in the form of instant, scratch & win/lose lotto tickets.

In fact, all bonds of any nation with an economic structure and government borrowing scheme relying on fractional reserve central banks, should be in this form. It would make for more efficient bond sales vs auction and provide the bonus of instant gratification/disappointment.

macholatte's picture

Try to have this discussion with 3% of the people you know....


Is your country a sovereign country?

   Well, yes.

Does it have the power to coin money?

   Well, yes.

Then why is it in debt? Why does it have to borrow money to exist instead of simply printing it, debt free?


Take a look at your paper money. Was it printed by your government or by a bank?

   Well, it says Bank of........

Is your country a sovereign country?

{silence. conversation over}



blunderdog's picture

  Then why is it in debt? Why does it have to borrow money to exist instead of simply printing it, debt free?

How would *you* answer that question?

smiler03's picture

Greece, Ireland Can’t Copy Iceland Default Model, Sigfusson Says.


.... "follow Iceland's lead and refuse to service any debt originated by fractional reserve banking practices.".

Link please.


TruthInSunshine's picture

Do I really care what Sigfusson says?

Do you?

(It's hilarious that Sigfusson claims in that Bloomberg article that Iceland "didn't have the ability to save its banks," by the way. Sure they could have; the same way the U.S. saved many banks here in 2008 - screw the taxpayers over and transfer monies through various schemes to prop the banks up. That claim alone puts his credibility into serious question.)

I've already had this discussion with you.

I've already cited links (look them up) for you specifically, as to how Iceland refused to acknowledge too-big-to-fail banks, allowing many of them to die.

If you understood that many of those banks held Icelandic debt in the form of sovereign bonds, because they were formerly part of a fractional reserve banking network, you would realize what happened to that aggregate debt upon their demise.

What do you think would happen if the U.S. declared the primary dealers, including Goldman Sachs & JP Morgan as 'on their own,' and furthermore, decided, under a new financial/monetary framework, not to acknowledge the legality of their right to collect payment on US Treasury Notes that they held?

Let me break it down even more simply for you:

What do you think would happen if the U.S. Government revoked The Federal Reserve Act and declared all U.S. Treasury Bonds held by The Federal Reserve Bank as null & void?

rocker's picture


  Your comments were just simply great and easy for even the dummies to understand.  Really good stuff.

 Footnote: Iceland was upgraded today.  Why, basically because they told Goldman to Fuk themselves.  

TruthInSunshine's picture

Yes. I saw that.

I am not one to easily buy into conspiracy theories, but when I see regurgitated statements offering up claims that Iceland was able to do what it did because it's a small, homogeneous nation, and that its path could not be forged by larger, more diverse nations, I have every reason to believe it's a sock puppet effort by bank and government bots to tamp down talk of their worst fears; that average people awaken to the fact that not only could far larger and diverse nations follow Iceland's example, but it would benefit the overwhelming majority (and to an incredibly significant degree) of their citizenry financially and in terms of regaining the ability to wrest themselves free of schemes to perpetually indebt them by those who have been making monopolistic profits by doing nothing except implementing Deep Capture of these nations' legislative and regulatory bodies (and the case of the United States, the executive and judiciary branches of government, as well).

TeMpTeK's picture

Gold Confiscation was a myth.....completely misunderstood and used today to sell pricey coins...



Calmyourself's picture

TIS, excellent post and prescient presentation of the probable solution.

Ancona's picture

Well said ETF, and quite true. when [not if] it happens here, the picture will be quite different from Greece. The Greeks are armed only with petrol bombs........'nuff said.