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Eric Sprott Presents The Ministry of [Un]Truth

Tyler Durden's picture


From Eric Sprott of Sprott Asset Management

Ministry of [Un]Truth

Speaking at a Brussels conference back in April 2011, Eurogroup President Jean Claude Juncker notably stated during a panel discussion that "when it becomes serious, you have to lie." He was referring to situations where the act of "pre-indicating" decisions on eurozone policy could fuel speculation that could harm the markets and undermine their policies' effectiveness.1 Everyone understands that the authorities sometimes lie in order to promote calm in the markets, but it was unexpected to hear such a high-level official actually admit to doing so. They're not supposed to admit that they lie. It is also somewhat disconcerting given the fact that virtually every economic event we have lived through since that time can very easily be described as "serious". Bank runs in Spain and Greece are indeed "serious", as is the weak economic data now emanating from Europe, the US and China. Should we assume that the authorities have been lying more frequently than usual over the past year?

When former Fed Chairman Alan Greenspan denied and down-played the US housing bubble back in 2004 and 2005, the market didn't realize how wrong he was until the bubble burst in 2007-2008. The same applies to the current Fed Chairman, Ben Bernanke, when he famously told US Congress in March of 2007 that "At this juncture… the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained."2 They weren't necessarily lying, per se, they just underestimated the seriousness of the problem. At this point in the crisis, however, we are hard pressed to believe anything uttered by a central planner or financial authority figure. How many times have we heard that the eurozone crisis has been solved? And how many times have we heard officials flat out lie while the roof is burning over their heads?

Back in March, following the successful €530 billion launch of LTRO II, European Central Bank President Mario Draghi assured Germany's Bild Newspaper that "The worst is over… the situation is stabilizing."3 The situation certainly did stabilize… for about a month. And then the bank runs started up again and sovereign bond yields spiked. Draghi has since treaded the awkward plank of promoting calm while slipping out enough bad news to ensure the eurocrats stay on their toes. As ING economist Carsten Brzeski aptly described at an ECB press conference in early June, "Listening to the ECB's macro-economic assessment was a bit like listening to whistles in the dark… It looks as if they are becoming increasingly worried, but do not want to show it."4 And the situation has now deteriorated to the point where Draghi can't possibly show it. Although Draghi does now warn of "serious downside risks" in the eurozone, he maintains that they are, in his words, "mostly to do with heightened uncertainty".5 Of course they are, Mario. Europe's issues are simply due to a vague feeling of unease felt among the EU populace. They have nothing to do with fact that the EU banking system is on the verge of collapsing in on itself.

When Prime Minister Mariano Rajoy assured the Spanish press that "There will be no rescue of the Spanish banking sector" on May 28th, the Spanish government announced a $125 billion bailout for its banks a mere two weeks later.6 This apparent deceit was not lost on the Spanish left, who were quick to dub him "Lying Rajoy". But Mr. Rajoy didn't seem phased in the least. As the Guardian writes, "Even when the outpouring of outrage forced Rajoy to call a hasty press conference the next day, he still refused to use the word "bailout" - or any other word for that matter - and referred mysteriously to "what happened on Saturday". He went as far as to say that Spain's emergency had been "resolved" ("thanks to my pressure", he said). He then took a plane to Poland to watch the national football team play ("the players deserve my presence")."7 Sound credible to you?

Then there are the bankers. Back in April, JP Morgan CEO Jamie Dimon blithely dismissed media reports as a "tempest in a teapot" that referred to massively outsized derivative positions held by the bank's traders in the Chief Investment Office in London. That "tempest" was soon revealed to have resulted in a $2 billion trading loss for the bank roughly four weeks later. In testimony before the Senate Banking Committee this past week, Dimon explained that "This particular synthetic credit portfolio was intended to earn a lot of revenue if there was a crisis. I consider that a hedge."8 He went on to add that regulators "can't stop something like this from happening. It was purely a management mistake."9 That's just wonderful. Can we expect more 'mistakes' of this nature in the coming months given JP Morgan's estimated $70 trillion in derivatives exposure? And will the US taxpayer willingly bail out JP Morgan when it does? Everyone knows the derivatives position wasn't a hedge - but what else is Dimon going to say? That JP Morgan is making reckless derivatives bets overseas with other people's money that's backstopped by the US government? Credibility is leaving the system.

There is certainly a sense that the authorities can no longer be candid about this ongoing crisis, even if they want to be. On June 11th Austria's finance minister, Maria Fekter, opined in a television interview that, "Italy has to work its way out of its economic dilemma of very high deficits and debt, but of course it may be that, given the high rates Italy pays to refinance on markets, they too will need support."10 Her honesty sent Italian bond yields soaring and earned her some harsh criticism from eurozone officials, including Italian Prime Minister Mario Monti. As one eurozone official stated, "The problem is that this is market sensitive… It's one thing if journalists write this but quite another if a eurozone minister says it. Verbal discipline is very important but she doesn't seem to get that."11 See no evil, hear no evil… and speak no evil. That's the way forward for the eurozone elites.

We have no doubt that everyone is tired of bad news, but we are compelled to review the facts: Europe is currently experiencing severe bank runs, budgets in virtually every western country on the planet are out of control, the banking system is running excessive leverage and risk, the costs of servicing the ever-increasing amounts of government debt are rising rapidly, and the economies of Europe, Asia and the United States are slowing down or are in full contraction. There's no sugar coating it and we have to stop listening to politicians and central planners who continue to downplay, obfuscate and flat out lie about the current economic reality. Stop listening to them.

NOTHING the central bankers have done up to this point has WORKED. All efforts have simply been aimed at keeping the financial system from imploding. QE I and II haven't worked. LTRO I and II haven't worked, and the most recent central bank initiatives are not even producing short-term benefits at this stage of the crisis. Just take Spain, for example. Following Rajoy's announcement of the $125 billion bailout loan for the Spanish banks on June 10th, Spanish bond yields were trading back over 7% one week later - the same yield level at which other eurozone countries have been forced to ask for further international aid.12 The market still doesn't even know what entity is going to pay the $125 billion, let alone when the funds will actually be released or whether the Spanish government will have to count it as part of its national debt. Spain is the fourth largest economy in the eurozone and larger than the previously bailedout Greece, Ireland and Portugal combined. At this point, it's not even clear if the ECB will be allowed to bail out a country of Spain's size, let alone Italy, which is now asking the ECB to use bailout funds to buy its sovereign bonds.13

The situation in Europe is becoming an exercise in futility. The positive effects of LTRO I and II, which combined pumped in over €1 trillion into European banks back in December 2011 and February 2012, have now been completely erased by the recent bank runs in Spain. Of the €523 billion released in LTRO II, roughly €200 billion was taken by Spanish banks.14 Of that amount, roughly €61 billion was estimated to have been reinvested back into Spanish sovereign bonds, which temporarily helped Spanish bond yields drop back to a sustainable level below 5.5%. Fast forward to today, and despite the LTRO infusions, the Spanish banks are all broke again after their underlying depositors withdrew billions over the past six weeks. The only liquid assets Spanish banks still own that they can sell to raise euros just happen to be government bonds… hence the rise in Spanish yields. So in essence, the entire benefit of the LTRO, which was a clever way of replenishing Spanish bank capital AND helping calm sovereign bond yields, has been completely reversed in roughly 14 weeks. It's as we've said before - it's not a sovereign problem, it's a banking problem. This is why Spanish Prime Minister Rajoy is now pleading for help "to break the link between risk in the banking sector and sovereign risk."15 Without a healthy sovereign bond market, peripheral eurozone countries simply have no way of supporting their bloated and insolvent banks.

The smart money is finally waking up to the dimension of the problem here and realizing that it's really a banking issue. Deposit flight has revealed the vulnerability of the European banking system: when depositors make withdrawals, the only assets the banks can sell to raise liquidity are sovereign bonds, which creates the vicious downward spiral that up to this point has always resulted in some form of central bank bailout. Many eurozone authorities still have trouble understanding this. As Spanish Economy Minister, Luis de Guindos, recently stated to reporters at the G20 Summit, "We think… that the way markets are penalizing Spain today does not reflect the efforts we have made or the growth potential of the economy… Spain is a solvent country and a country which has a capacity to grow."16 Every country has the capacity to grow. Not every country has a domestic banking system that has already borrowed €316 billion from the ECB so far this year (pre the most recently announced bailout), and needs to rollover roughly €600 billion in bank debt in 2012.17 That may be why the markets are reacting the way they are.

If you want to know what's really going on, listen to the executives of companies that actually produce and sell things. On May 24, Tiffany & Co cut its fiscal-year sales and profit forecasts blaming "slowing growth in key markets like China and weakness in the United States as shoppers think twice about spending on high-end jewelry."18 On June 8th, McDonald's surprised the market with lower than expected same-store sales growth in May, following a lacklustre April sales report that the company stated was "largely due to underperformance in the United States, where consumers continue to seek out very low-priced food."19, 20 On June 13th, Nucor Corp., the largest U.S. steelmaker by market value warned that its second-quarter profit will miss its previous guidance after a "surge" in imports undermined prices and "political and economic uncertainty affect buyers' confidence".21 On June 20th, Proctor and Gamble lowered its fourth quarter guidance and profit forecast for 2012. Factors that drove the company's challenges included "slow-to-no GDP growth in developed markets", high unemployment levels, significant commodity cost increases and "highly volatile foreign exchange rates".22 Other companies that have recently lowered guidance include Danone, Nestle, Unilever, Cisco Systems, Dell, Lowe's, and Fedex. It's ugly out there, and many companies are politely warning the market about the type of environment they foresee ahead in both the US and abroad.

To give you a hint of how bad it is in Europe today, the most recent retail sales out of Netherlands showed a decline of 8.7% year-over-year in April.23 In Spain, retail sales fell 9.8% year-on-year in April, which was 6% greater than the revised drop of 3.8% in March.24 Declines of this magnitude are not normal occurrences and signal a significant shift in spending within those countries. We fear this is a sign of things to come within the broader Eurozone, which will only serve to complicate an already dire situation that much more.

The G6 central banks are out of conventional tools to solve this financial crisis. With interest rates at zero, and the thought of further stimulus rendered politically unpalatable for the time being, we cannot see any positive solutions to this problem other than debt repudiation. We continue to note the contrast between the reporting companies who by law cannot lie about their fiscal realities, versus the central planners who admit that they MUST lie to preserve calm and control. We'll leave it to you to decide whose version of the truth you want to believe.



1 Forelle, Charles (May 9, 2011) "Luxembourg Lies on Secret Meeting". Wall Street Journal. Retrieved on June 5, 2012 from:
2 Bernanke, Ben S. (March 28, 2007) "Economic Outlook before the Joint Economic Committee, U.S. Congress". Board of Governors of the Federal Reserve System. Retrieved on June 8, 2012 from:
3 Evans, Stephen (March 22, 2012) "ECB Chief Mario Draghi says worst of euro crisis over". BBC News. Retrieved on June 6, 2012 from:
4  Russolillo, Steven (June 6, 2012) "Here's How to Read Mario Draghi's Poker Face". Wall Street Journal. Retrieved on June 7, 2012 from:
5  AFP (June 16, 2012) "ECB warns 'serious risks' for Eurozone, but no inflation". Associated Foreign Press. Retrieved on June 19, 2012 from:
6  CBC News (May 28, 2012) "Spain says banks won't need EU rescue" CBC News. Retrieved on June 6, 2012 from:
7  Murado, Miguel-Anxo (June 12, 2012) "'Bailout' seems to be the hardest word for Spain's prime minister". The Guardian. Retrieved on June 12, 2012 from:
8  AP (June 13, 2012) "'There was good intent': JPMorgan's Jamie Dimon APOLOGIZES while explaining $2B loss to Congress
amid protesting hecklers". Associated Press. Retrieved on June 13, 2012 from:
9 Touryalai, Halah (June 13, 2012) "Jamie Dimon's Testimony: Volcker Rule May Have Prevented Loss". Forbes. Retrieved on June 16, 2012 from:
10   Shields, Michael and Scherer, Steve (June 12, 2012) "Austrian minister says Italy too may need bailout". Reuters. Retrieved on June 12, 2012 from:
11  Ibid.
12   Day, Paul (June 19, 2012) "Spain's short-term borrowing costs jump at auction". Reuters. Retrieved on June 20, 2012 from:
13  AP (June 20, 2012) "Europe gropes for crisis fix, bond buys pushed". Associated Press. Retrieved on June 20, 2012 from:
14   Watts, William (April 13, 2012) "Spain data underlines LTRO downside". Wall Street Journal. Retrieved on June 15, 2012 from:
15  Crowe, Darcy (June 18, 2012) "Spain's Rajoy Calls for Fencing in Banking Risk". Wall Street Journal. Retrieved on June 19, 2012 from:

Day, Paul and Maltezou, Renee (June 19, 2012) "Spanish short-term debt costs reach alarm levels". Reuters. Retrieved on June 20, 2012 from:

17   Smith, Geoffrey (June 12, 2012) "Spain Deal Doesn't Stop Sovereign-Bank Feedback Loop". Wall Street Journal. Retrieved on June 15, 2012 from:
18   Wahba, Phil (May 24, 2012) "Tiffany forecasts disappoint; U.S., Asia slowing". Reuters. Retrieved on June 19, 2012 from:
19   Egan, Matt (June 8, 2012) "McDonald's May Same-Store Sales Come Up Short". FOXBusiness. Retrieved on June 18, 2012 from:
20   Baertlein, Lisa and Wahba, Phil (May 8, 2012) "Mcdonald's April U.S. sales miss estimates. Reuters. Retrieved on June 20, 2012 from:
21  Elmquist, Sonja (June 13, 2012) "Nucor Says Profit To Miss Guidance As Steel Imports 'Surge'". Bloomberg. Retrieved on June 19, 2012 from:
22   Pichler, Josh (June 20, 2012) "P&G lowers guidance for fourth quarter". Retrieved on June 20, 2012 from:
23   Van den Oever, Robert. (June 14, 2012) "Dutch Retail Sales Fall 8.7% in April". Dow Jones. Retrieved on June 20, 2012 from:
24  Dowsett, Sonya (May 29, 2012) "Spanish retail sales show record fall in April". Reuters. Retrieved on June 20, 2012 from:

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Fri, 06/22/2012 - 16:55 | 2552465 FoolsAdvice
FoolsAdvice's picture

Tonight I'm gonna party like it's 19...

Fri, 06/22/2012 - 17:00 | 2552478 B-rock
B-rock's picture

I agree: Stop listening to them!  Unless you want to make money trading -- then, trade the lies and make money.  So far the truth makes one poor -- or at least a crummy trader...

Fri, 06/22/2012 - 17:16 | 2552516 MillionDollarBonus_
MillionDollarBonus_'s picture

I was disappointed at the lack of decisiveness at the G2012. This was a real opportunity to discuss groundbreaking economic reforms, and to my dismay, absolutely no significant policy initiatives were forthcoming. In a way though, I can understand. These politicians must be incredibly frustrated that they have to pass legislation at the national level, when global challenges clearly require global legislation. It's time for a new world order. We need to understand that the only way forward is to allow policies to be both set AND enforced on a GLOBAL level, in conjunction with a global currency and global central bank. The time for change is here. Support the PROGRESSIVE REVOLUTION in 2012.

Fri, 06/22/2012 - 17:23 | 2552533 Desert Irish
Desert Irish's picture

So who should head up this New World Order MDB? The Germans? I'll give ya a reddie anyway for effort

Fri, 06/22/2012 - 17:32 | 2552554 MillionDollarBonus_
MillionDollarBonus_'s picture

That's a good question. Initially, it should be headed by a selection of professors from top academic institutions. Preference would be given to those who also had prior experience at top financial institutions and/or experience in government. In the longer term however, educational academies would be set up with the task of selecting the best and brightest financial minds a an early age and training them at an elite level. These children will be the next generation of world leaders.

Fri, 06/22/2012 - 18:55 | 2552727 AldousHuxley
AldousHuxley's picture

Television Program = Visually Programming your mind


Idiots watching too much TV start to believing TV is real.


Turn that off and discover reality.


Hint: real things are so much better than what you see on TV.

Fri, 06/22/2012 - 20:49 | 2552901 VallejoVillain
VallejoVillain's picture

Agreed, Cut the cable company this year, leeches

Sat, 06/23/2012 - 00:37 | 2553165 Shizzmoney
Shizzmoney's picture

So did 16% more Americans this year.

Not only do they know they don't need it (except for 4 channels), they can't afford it.

They can afford the internet, however.

Sat, 06/23/2012 - 02:56 | 2553236 AnAnonymous
AnAnonymous's picture

Starting from?

Sat, 06/23/2012 - 04:32 | 2553263 AldousHuxley
AldousHuxley's picture
  1. Cut cable, public over the air has HD stream. (free)
  2. If you want something beautiful, look at your kids and your wife (free)
  3. If you want entertainment, go to you library and read a book. most movies are created from books anyways (free)
  4. Cut gym membership, do push ups, sit ups, running outside everyday (free)
  5. Cut fad diets, just eat less (free)
  6. Vote for 3rd party in elections (free)
  7. Delete your social networking facebook account, and talk to your neighbors and old people. call your mom. (free)
  8. Learn how to cook at home instead of eating out (free)
Sat, 06/23/2012 - 06:23 | 2553312 The Alarmist
The Alarmist's picture

Dig a ditch in your back yard, stand over it and slit your wrists, and pull the dirt over yourself as you bleed out ... free! and it has the added benefit of helping contain climate change by limiting your carbon dioxide output and sequestering the carbon stored in your body.

Sat, 06/23/2012 - 07:37 | 2553352 MuppetMaster
MuppetMaster's picture


I have found Alpha.  & I give it to you for free.

Come see what I'm doing.  See what I'm seeing.

Sat, 06/23/2012 - 08:54 | 2553407 Atlas_shrugging
Atlas_shrugging's picture

MDB rocks.

Sat, 06/23/2012 - 07:31 | 2553347 Poor Grogman
Poor Grogman's picture

Tibetan internet access not allowed under chinese sensible plan.\

No need for knowledge that might cause unauthorised thinking and questioning.

Fri, 06/22/2012 - 17:44 | 2552580 thatthingcanfly
thatthingcanfly's picture


Fri, 06/22/2012 - 17:48 | 2552586 resurger
resurger's picture

I have a feeling Justin Bieber can become a world leader, i dont know why !!

Fri, 06/22/2012 - 18:44 | 2552703 Piranhanoia
Piranhanoia's picture

Do you remember when a person said "tedium, tedium, tedium, tedium... until you awoke again a bit confused yet feeling wide awake?

Sat, 06/23/2012 - 08:53 | 2553406 francis_sawyer
francis_sawyer's picture

Well I heard he [Beaver] fell down the stairs yesterday, so you may be on to something there... 

Fri, 06/22/2012 - 18:09 | 2552629 cranky-old-geezer
cranky-old-geezer's picture



Your "brightest minds" created the mess we see now, moron.

Go find a planet to run and implement your insane ideas.  It won't happen on this planet.

Fri, 06/22/2012 - 19:10 | 2552768 Michael
Michael's picture

As a property owner whose land and real estste is fully paid off, do I get to vote for the elite world leaders who will be ruling over me? Or do US patriots and others just get to go all Norwegian Knights Templar on the elites and oligarcdhs asses killing their wives, children, and extended family?

Norwegian mass murderer claims Knights Templar membership

Read more:

Fri, 06/22/2012 - 20:02 | 2552846 Dugald
Dugald's picture

I just had a flash vision of portable Gas Chambers made in China

its where one world order will lead.....

Fri, 06/22/2012 - 22:39 | 2553032 jumbo maverick
jumbo maverick's picture

It's ok if it made in china it won't work anyways but I have a pitchfork in my garage that was made in the USA years ago. It always works.

Sat, 06/23/2012 - 04:37 | 2553264 AldousHuxley
AldousHuxley's picture

It is the greed of the poor to accumulate more junk that is driving manufacturing out to china. Rich don't buy shit made in china.

Sat, 06/23/2012 - 05:40 | 2553290 Struan
Struan's picture

Im sorry sir but you seem to repeat what the mainstream media tells us: we are lazy, greedy, etc hence the current crysis. I will enlighten you today. Since 2001 gold and silver rised 900%.

Military spending,  theft of trillions might be the cause. 

2 trillions missing from pentagon in 2001, fed giving trillions in bailout behind congress` back, a lot of capital corzined, current jpm loss, 2 billion.

The trillions add-up you know? And you, me , everybody is paying for it.

We are so lucky we have China.

Sat, 06/23/2012 - 06:26 | 2553314 The Alarmist
The Alarmist's picture

Be glad we are building our prison labor force and reinforcing it with millions more now welcomed illegal workers so that we can drive wages even lower and make the US even more competitive with China.

Sat, 06/23/2012 - 00:32 | 2553152 Dugald
Dugald's picture

After posting the crack about portable gas ovens made in china, I received an email re stuff being sent to schools by an Australian government dept, short story... they are encouraging kids to consider euthanasia as an alternative to growing old and ending in a nursing home...I would cut and paste the full item but for some reason I can't paste into ZH....

Shades of Soylent Green not so far over the horizon eh? Who is behind this crap? non other than the Australian Green Party, as they say....You can't make this shit up.....

Fri, 06/22/2012 - 22:32 | 2553021 Prince Eugene o...
Prince Eugene of Savoy's picture

Breivik must be a time traveler.  Pope Clement V, under pressure of financially motivated King Philip IV of France, dissolved the Knights Templar in 1312.

Grand Master Jacques de Molay, who had confessed under torture, retracted his coerced statement.  Geoffroi de Charney, also claimed his innocence.  Both men were declared guilty of being relapsed heretics, and they were sentenced to burn alive at the stake in Paris on March 18, 1314.  De Molay reportedly remained defiant to the end, asking to be tied in such a way that he could face the Notre Dame Cathedral and hold his hands together in prayer.  He called out from the flames that both Pope Clement and King Philip would soon meet him before God.  His actual words were recorded.  Translated: "God knows who is wrong and has sinned. Soon a calamity will occur to those who have condemned us to death".  Pope Clement died only a month later, and King Philip died in a hunting accident before the end of the year.  The remaining Templars around Europe were either arrested and tried under the Papal investigation with none convicted, or absorbed into other military orders such as the Knights Hospitaller.

Sat, 06/23/2012 - 08:10 | 2553375 Benjamin Glutton
Benjamin Glutton's picture

Breivik must be a time traveler. Pope Clement V, under pressure of financially motivated King Philip IV of France, dissolved the Knights Templar in 1312. you have a link that will reassure me Brevik is not a time traveler from the future?



Sat, 06/23/2012 - 23:48 | 2555124 Clashfan
Clashfan's picture

Prince Eugene, I suggest that you research the matter further. Check to see if a 33rd degree, Scottish Rite Freemason, a Shriner, is not also a Templar.

Fri, 06/22/2012 - 23:15 | 2553075 Mary Wilbur
Mary Wilbur's picture

The original Knights Templar were bankers. They were too successful and thus excited envy. Their wealth was confiscated. Those Templars who survived the Inquisition were burnt at the stake.

Fri, 06/22/2012 - 18:30 | 2552664 Winston Churchill
Winston Churchill's picture

Thats what got us here MDB.

O Brave New World(order).

Not quite up to your normal sarc.

Fri, 06/22/2012 - 18:50 | 2552717 ZeroAvatar
ZeroAvatar's picture

Just down-arrow MDB and move on. The troll provides absolutely nothing. No comedy, no insight, nothing.  Just like Robotarder:  down-arrow, scroll........

Fri, 06/22/2012 - 21:38 | 2552962 margaris
margaris's picture

red arrows have to be earned, we dont give them for free, lol

Fri, 06/22/2012 - 18:34 | 2552672 g speed
g speed's picture

someday maybe we'll get to hear what you really think--till then thumbs up for great comedy.

Fri, 06/22/2012 - 19:45 | 2552827 brettd
brettd's picture

I nominate Larry Summers! /S

Sat, 06/23/2012 - 06:28 | 2553316 The Alarmist
The Alarmist's picture

That would be The Brilliant Larry Summers to you.

Fri, 06/22/2012 - 20:58 | 2552914 masterinchancery
masterinchancery's picture

You are joking, right?

Fri, 06/22/2012 - 22:48 | 2553042 Deathtothecreature
Deathtothecreature's picture

Burn in hell communist!

Fri, 06/22/2012 - 23:08 | 2553066 Mary Wilbur
Mary Wilbur's picture

They should have received a Nobel Prize in Economics, or at least the Peace Prize.

Fri, 06/22/2012 - 23:27 | 2553071 Bansters-in-my-...
Bansters-in-my- feces's picture

Hey MDB you fuckhead.

I see you paid some troll s to press the up arrow on your comments.

There is NO WAY that many people on ZeroHedge would up arrow you for the "global currency" comment.

Fuck off and die,your takeing up space and wasting air.

Fri, 06/22/2012 - 23:51 | 2553112 harleyjohn45
harleyjohn45's picture

Personally, I would prefer a panel of Pawn Brokers over a panel of college professors.  In a financial crisis, you need someone who knows something.

Sat, 06/23/2012 - 00:21 | 2553140 wareco
wareco's picture

Are you out of your friggin' mind MDB?  "Preference would be given to those who also had prior experience at top financial institutions and/or experience in government".  These are the same douche bags that got us into this mess.

Sat, 06/23/2012 - 00:48 | 2553177 BuildItToBreakIt
BuildItToBreakIt's picture

Prior experience at top financial institutions?  Like ex Goldman Sachs employees?  They already run virtually everything in the western world and clearly that's worked out so very well.

Would you stock it with Austrian or Keynsian Economists?  Gold Standard?

Who would train them?  The same guys that got us into this mess?

Your answer is way to vague to be a real solution.

Sat, 06/23/2012 - 03:00 | 2553238 Simplifiedfrisbee
Simplifiedfrisbee's picture

MDB, who n the fuck do you think your fooling? You posted as the irish man to set up your answer. You're a sick, spineless sack of meat with the spirit of God as the only thing holding you together. I forgive you based on the fact that your demented intellect has perversed you to inform not what you believe, but what you have made others believe of you. I see what you do on here and it is not where it is you intend to go with what you post but rather where it is you will not be allowed to enter with your words.

Sat, 06/23/2012 - 03:48 | 2553250 BadKiTTy
BadKiTTy's picture

Keep em coming MDB!

I LOVE your posts!



Sat, 06/23/2012 - 03:50 | 2553251 BadKiTTy
BadKiTTy's picture

Keep em coming MDB!

I LOVE your posts!



Sat, 06/23/2012 - 06:11 | 2553306 blueridgeviews
blueridgeviews's picture

Stalin and Hitler would love your idea.

Sat, 06/23/2012 - 08:02 | 2553369 Hurdy Gurdy Man
Hurdy Gurdy Man's picture

Instead of the marriage of government and enterprise as you suggest, what *will* happen is decensus, over time.  Small groups finding their way, as one searches through the forest by stretching your hands out in the dark just to keep the next branch out of your face as you sort-of-kind-of remember your way back to base camp.

Sat, 06/23/2012 - 15:58 | 2554384 Xue
Xue's picture

'Initially, it should be headed by a selection of professors from top academic institutions.'

You mean Paul Krugman?

Sat, 06/23/2012 - 15:58 | 2554385 Xue
Xue's picture


Sat, 06/23/2012 - 21:13 | 2554913 Freewheelin Franklin
Freewheelin Franklin's picture

Initially, it should be headed by a selection of professors from top academic institutions.



So, who would find and appoint these people? The purple unicorns that fart rainbows?

Fri, 06/22/2012 - 18:13 | 2552633 GeezerGeek
GeezerGeek's picture

None other than...MDB!

Who else has shown such a perfect understanding of the mindset of the would-be elitists?

Fri, 06/22/2012 - 20:55 | 2552909 Papasmurf
Papasmurf's picture

Goldman Sachs

Fri, 06/22/2012 - 17:24 | 2552536 francis_sawyer
francis_sawyer's picture

Support the K-Y JELLY REVOLUTION in 2012... Bend over & lube up...

Fri, 06/22/2012 - 17:32 | 2552555 Manthong
Manthong's picture

I'm going to party like it's 1789.

Fri, 06/22/2012 - 20:01 | 2552845 chistletoe
chistletoe's picture

oh, what's the point of a revolution without general copulation?

Sat, 06/23/2012 - 00:06 | 2553125 Manthong
Manthong's picture

Whoa.. that pegged my abstruseometer.

Fri, 06/22/2012 - 17:41 | 2552573 CPL
CPL's picture

well done.

8/10 for rage points

Fri, 06/22/2012 - 18:09 | 2552628 Bollixed
Bollixed's picture

Another classic taste of what goes through the minds of the chosen.

I'm still miffed as to how people miss the sarc...

Sat, 06/23/2012 - 09:07 | 2553418 cahadjis
cahadjis's picture

I know, it's sad really, MDB is brilliant exactly because he doesn't state that it's sarcasm, that would completely kill the joke. Yet most posters don't get it. I've lived in the US and unfortunately I have to state that it's a symptom of growing up humourless in the States. In England for example (I'm not english) no way this irony would be lost on people.

Am I being sarcastic with that last one? Who knows...

Fri, 06/22/2012 - 19:06 | 2552754 Lucky Guesst
Lucky Guesst's picture

Are you f*cking kidding? You need to let people know when your being sarcastic.

Sat, 06/23/2012 - 09:10 | 2553420 cahadjis
cahadjis's picture

No. Why should he? To spoil it?

Fri, 06/22/2012 - 21:17 | 2552937 I think I need ...
I think I need to buy a gun's picture

EVERYTHING IS FINE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Fri, 06/22/2012 - 22:17 | 2552992 dougngen
dougngen's picture

Glad you dorks are against guns!!! lol I will just take your stuff after the "revolution".

Fri, 06/22/2012 - 22:22 | 2553004 dougngen
dougngen's picture

Glad you dorks are against guns!!! lol I will just take your stuff after the "revolution".

Fri, 06/22/2012 - 22:36 | 2553026 illyia
illyia's picture

You have got to be kidding.

How about ending the misallocation of funds (wars, healthcare, XXXindustrial complex). How about we arrest the banksters and their corpgov buddies and audit the lot of them: Clawbacks, anyone? How about a debt algebra cross-out of massive proportions. How about those who bet stupidly take their lumps.

I'll give you a global revolution. How about We the People take back our rights to Life, Liberty and the Pursuit of Happiness without any input from you or your control freak buds? Eh?

How about transparency? Too easy for you? Too simple? Maybe that's the problem.

Who needs this crap? Really. I mean - What use is all this globalism to people?

Bah! Progressive Revolution my ass. Regressive Revolution. How about Feudal Revolution.

Take the power from the people - they have too... oh yeah. We already did that...

Fri, 06/22/2012 - 23:04 | 2553062 Mary Wilbur
Mary Wilbur's picture

Get outta town! Who are you channeling? Stalin?

Sat, 06/23/2012 - 17:08 | 2554503 Max Fischer
Max Fischer's picture



Get outta town

Jeepers Creepers, you must be channeling Happy Days or Gunsmoke

The fact that so many people continue to fall for MDB's sarcasm only proves that this site has attracted the most dim-witted, gullible, humorless bunch of libertarians in Amuurica. In other words, it's awesome fishin' 'round here. 

Buy silver, crash the nemesis!


Sat, 06/23/2012 - 03:29 | 2553247 jomama
jomama's picture

robo is like... 1000x more entertaining than this dude.

Fri, 06/22/2012 - 17:17 | 2552518 cranky-old-geezer
cranky-old-geezer's picture



Unless you want to make money trading

In markets rigged for their benefit? 

No thanks.

Fri, 06/22/2012 - 17:27 | 2552546 Rainman
Rainman's picture

I'll make money when fuckin Tiffany's goes under

Fri, 06/22/2012 - 17:28 | 2552548 B-rock
B-rock's picture

.... I don't know... Sniping quick trades from ES is like stealing money back from the banks. 

Fri, 06/22/2012 - 18:29 | 2552660 ElvisDog
ElvisDog's picture

Yeah, and the problem with "make money trading" is that a lot of big moves happen at night when the markets are closed to small fry like you and me. Also, small fry don't get front-running information from central banks and world leaders before things happen.

Fri, 06/22/2012 - 19:44 | 2552821 B-rock
B-rock's picture

That's why my trades are 30 seconds to an hour long and I'm always ready to close the trade... Being overnight futures is OK, because one doesn't get gapped and normal stops work...  It's still a great market to trade if you consider that it's run by thieves.

Sat, 06/23/2012 - 04:51 | 2553269 DeadFred
DeadFred's picture

I imagine it's pretty easy to find good day trade opportunities in this market. Any artificially manipulated market will have plenty of chances to arb the spread between the lies and the truth, plus people and robots tend to be predictable in their manipulations. Tyler has posted many examples of these manipulation 'glitches' over the years, things like the change in trading patterns after Europe closes, the market ramp on QE lite days and the EOD dive for the volume weighted average.

Just remember that you are like the farmers who plant vineyards on the slopes of Mt. Vesuvius. The good soil grows fine grapes which make excellent wine BUT will your family escape when the volcano blows? Sure your stops will limit your losses if/when the one way flash-crash happens but will your account be frozen or MFGed? If you're sure you have the angles covered then I wish you well in your attempts to skim money from the accursed Ponzi system. Just be sure to ask yourself "Is there anything I'm not thinking of?"

It's months or short years before this vocano blows.

Fri, 06/22/2012 - 22:59 | 2553056 Mary Wilbur
Mary Wilbur's picture

Or from Congressional staffers, or the Congress people themselves, or the various branches of the executive, like the FDA, the Transportation dept, etc.

Fri, 06/22/2012 - 23:17 | 2553078 IndicaTive
IndicaTive's picture

Jim Cramer told me NOTHING about this stuff. I think he's slippin' a bit....dunno.

Fri, 06/22/2012 - 19:39 | 2552813 Silver Bug
Silver Bug's picture

Eric Sprott as always, is spot on. He is one of the GREAT vigilantes out there.

Fri, 06/22/2012 - 17:04 | 2552484 NotApplicable
NotApplicable's picture

I just found this interesting article that sums up this entire article (and Wall St. as a whole) about why people lie, cheat and steal. His studies lead to an interesting point about the the ability to rationalize stealing wealth when it isn't in the form of money (yes, yes, I know, money isn't wealth, merely a claim on it). But anyway...

See Corzine didn't really steal anything, but rather just had to make keep the paper wheels turning.

Fri, 06/22/2012 - 17:19 | 2552508 Spirit Of Truth
Spirit Of Truth's picture

Interesting article. 

The dominance of greed and fraud is a cyclical phenomenon, just as the subsequent correction is:

Fri, 06/22/2012 - 17:26 | 2552544 LawsofPhysics
LawsofPhysics's picture

total bullshit.  How many traders actually go to real prison?  Make the consequences of bad behavior stiff enough and you damn well will see a change in behavior (or you will kill off all the cheaters - win win).

Fri, 06/22/2012 - 17:38 | 2552567 NotApplicable
NotApplicable's picture

Those traders have a distinct advantage over you that makes you blind to their reality. They know better than to believe in the fairy tale of the "Rule of Law" you always go on about (not that I don't agree with you in principle).

They realize that instead, it is the "Law of Rule."

As the article stated, most people do not even consider the economics of getting caught, but instead, rationalize why they have to do what they do. Prisons are full of people who, to a person, knew their actions could lead to the outcome they're experiencing. Yet they all proceeded to act anyway.

Fri, 06/22/2012 - 20:54 | 2552908 VallejoVillain
VallejoVillain's picture

At worst (and most likely not going at all), a minimum security resort + paid vacation at the same time! Sounds nice. I wish California would Judge Dredd the repeat offenders at San Quentin. Most of them go back because they have a better life on the inside. wtf it's all backwards.

Fri, 06/22/2012 - 17:15 | 2552511 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Will the last one to leave please turn off the lights?

Fri, 06/22/2012 - 18:03 | 2552620 Last One Out
Last One Out's picture

Yes, I will.

Fri, 06/22/2012 - 18:33 | 2552670 Jendrzejczyk
Jendrzejczyk's picture

+5 at least.

Fri, 06/22/2012 - 18:33 | 2552671 Encroaching Darkness
Encroaching Darkness's picture

An online friend wants me to mention: if you're heading out to New Zealand, or just want to have a bank account there, you might want to check out his website: "". He's an expat, supports the WestPac bank there, and says it still takes accounts from Yanks (as long as you follow the rules).

Shameless plug, I know, but if it's a service you desperately need (or just want to stash some cash in another country / time zone / currency, in case the ones you're in go down) you might want to know. Cheers! ED

Fri, 06/22/2012 - 18:39 | 2552685 Rainman
Rainman's picture

Thanks for the tip, ED

Sincerely , your friendly IRS Agent Smith

Fri, 06/22/2012 - 18:51 | 2552720 Encroaching Darkness
Encroaching Darkness's picture

Did you miss the part about

(as long as you follow the rules).

Or just not understand what that means? Anyone doing this WILL be following the rules - Agent Smith.

Go back to sleep, nothing to see here.

Fri, 06/22/2012 - 19:08 | 2552763 Rainman
Rainman's picture

2nd rule of fight club is there are no rules....appeal denied.

Fri, 06/22/2012 - 18:56 | 2552730 ZeroAvatar
ZeroAvatar's picture

Yeah, I'm sure he wants to 'ex-pat' my wallet, alright....doesn't everybody?

Fri, 06/22/2012 - 18:56 | 2552729 New World Chaos
New World Chaos's picture

Westpac is a Rothschild operation.  They will sell out their customers at the appropriate time.

Sat, 06/23/2012 - 05:22 | 2553284 luckylongshot
luckylongshot's picture

Be careful with New Zealand banks as your bank deposits in New Zealand are unsecured and uninsured. If you are planning on opening a bank account there Kiwibank is the best bet as it is owned by the Government and so should be supported if there is a crisis. Howwever the big 4 aussie banks operating in NZ offer little protection if there is a problem.

Fri, 06/22/2012 - 18:12 | 2552632 Milestones
Milestones's picture

1945. V-E day and V-J day. the last war we won.                                  Milestones

Fri, 06/22/2012 - 18:34 | 2552674 Jendrzejczyk
Jendrzejczyk's picture

Still waiting on BJ Day myself.

Fri, 06/22/2012 - 17:08 | 2552492 Mr. Fix
Mr. Fix's picture

Eric Sprott is my hero.

 He is the ultimate stacker, and the one that I strive to emulate.

 I would like to thank Tyler for posting anything that he has to say, since it is of value to me.


 In the meantime I'll just keep on stacking.

(I've got a little bit of catching up to do).

Fri, 06/22/2012 - 17:11 | 2552505 Terminus C
Terminus C's picture

Less hero worship, more critical thinking... (one of the central vices of our society - hero worship that is...)

Aside from that, though Mr. Sprott is correct, he is saying nothing new to the people that read ZH.

Fri, 06/22/2012 - 17:27 | 2552545 Zero Govt
Zero Govt's picture

Eric Sprott is talking his book

..although to be fair this time he isn't!

..i was waiting for the "Buy Silver" punchline but it never came

Fri, 06/22/2012 - 17:42 | 2552576 Mr. Fix
Mr. Fix's picture

Eric Sprott for president!

(You could do worse) 

Fri, 06/22/2012 - 22:30 | 2553017 CaptainObvious
CaptainObvious's picture

We will do worse.  Have you seen what are options are this November?

Fri, 06/22/2012 - 17:53 | 2552594 Mr. Fix
Mr. Fix's picture

The way I feel about Eric Sprott is the direct result of years worth of serious critical thinking, and market analysis.

 I agree with Eric across the board, not because we both stack  silver and gold mind you,

 but we both seem to understand the reasons as to why this is an extremely good idea at this time.


 Hero might be an overly strong term,

 a kindred spirit might be a more accurate description.

Fri, 06/22/2012 - 17:10 | 2552501 steveo77
steveo77's picture

Gold Targets from April, Oil Bodyslam
Physical Gold will never go to zero, it is hard to trade, and storage is an important issue.   You can't really trust the banks in a confiscation scenario, or shall I say, you can trust them to follow the orders of their overlords (PS you aint the overlord).   
But we do know how the endgame looks.   When something is unsustainable, it will come to an end.      
As Ferguson from TF Metals has said     The end of the Keynesian experiment is upon us, prepare accordingly.

Fri, 06/22/2012 - 17:11 | 2552503 q99x2
q99x2's picture

Chase them down the streets by beating pots and pans until they are run out of the country.

That worked for Argentina. Apparently bankers and their technocrats don't like the sound of pots and pans. I know rats don't like high frequency sounds and for some reason loud clanging noises work on bankers.

Fri, 06/22/2012 - 17:20 | 2552526 Seafarer57
Seafarer57's picture

You think stainless steel, cast iron, or silver will scare them more? All-clad?

Fri, 06/22/2012 - 20:32 | 2552879 strangeglove
strangeglove's picture


Fri, 06/22/2012 - 18:31 | 2552667 ebear
ebear's picture

>>Chase them down the streets by beating pots and pans until they are run out of the country.<<

Naw. Beat them with a wok.  It has more surface area, so you're less likely to miss.

Fri, 06/22/2012 - 20:33 | 2552882 strangeglove
strangeglove's picture

Cast Iron for more efficient results!

Sat, 06/23/2012 - 00:57 | 2553185 BuildItToBreakIt
BuildItToBreakIt's picture

When you encourage people to buy made in China solutions, you too become part of the problem :P

Fri, 06/22/2012 - 17:16 | 2552514 lolmao500
lolmao500's picture

Prepare for doom...

Turkey says 'it is understood' that Syria shot down Turkish jet fighter - PM's office statement via @Reuters
Pilots still missing... and
Turkish PM office: After we have complete info we will do whatever we need to do
And the Russians...
3 Russian warship file paperwork to transit into Med next week maybe on their way to
Shit about to get real.
Fri, 06/22/2012 - 17:42 | 2552577 yabyum
yabyum's picture

Turks are flying F4's? That amigo is a muy veijo bird.

Fri, 06/22/2012 - 17:54 | 2552606 lolmao500
lolmao500's picture

Those are F-4 2020 Terminators... quite capable planes. And they were upgraded recently.


Syrian State TV: at 11:40am, Syrian Air Defense Forces intercept a Turkish military jet near Ras Al Baseet.

Syrian State TV: Syrian Airspace infiltration was dealt with according to international laws. Syria is pushing the envelope...keep poking Turkey's pride and see what happens...
Fri, 06/22/2012 - 18:28 | 2552657 RockyRacoon
RockyRacoon's picture

I worked on the F-4 Phantoms in 1973 -- yep they are old, but kick-ass planes.  I'm old too but I can still dish out a whoopin' if necessary.

Sat, 06/23/2012 - 00:04 | 2553121 Yen Cross
Yen Cross's picture

Supersonic Torpedos!  ( Good on ya Rocky).

Fri, 06/22/2012 - 18:48 | 2552713 Piranhanoia
Piranhanoia's picture

Like certain older cars,  superior to current models because you can be pilot and mechanic.

Fri, 06/22/2012 - 22:45 | 2553039 Mary Wilbur
Mary Wilbur's picture

CNN said earlier this evening that it was unknown whether the Turks were flying F4s or F16s. They have both.

Sat, 06/23/2012 - 08:36 | 2553391 lakecity55
lakecity55's picture

Meanwhile, US pilots are getting too high to fly from the glue in the F-22 Raptor.

I did not know they still had Testor's glue on the market.

Maybe they are huffing it thru the oxygen hose.


Fri, 06/22/2012 - 23:00 | 2553057 WmMcK
WmMcK's picture

Viejo, pero prefiero Añejo.

Fri, 06/22/2012 - 18:17 | 2552640 lolmao500
lolmao500's picture

Uh oh...

Turkish source said the plane was in Turkish territory when it was shot down.

Fri, 06/22/2012 - 17:18 | 2552522 Beevreetr
Beevreetr's picture

Unmanned drone has no pilots. Hence they are missing.

Fri, 06/22/2012 - 17:19 | 2552525 THECOMINGDEPRESSION

WAIT!!!! Krugman said an ALIEN INVASION from outer space will save us! NOT KIDDING! Read it here:

Fri, 06/22/2012 - 23:26 | 2553094 Mary Wilbur
Mary Wilbur's picture

Krugman is a bore.

Fri, 06/22/2012 - 17:21 | 2552528 francis_sawyer
francis_sawyer's picture

 Step 1: Take your money out of banks...

Fri, 06/22/2012 - 17:58 | 2552615 DoChenRollingBearing
DoChenRollingBearing's picture

+ $500 from the ATM each time you pass it on the way home.

Fri, 06/22/2012 - 18:29 | 2552663 RockyRacoon
RockyRacoon's picture

Let's see... that would be about 1.5 trips for me.   I don't keep money in banks except enough to clear the necessary checks for utilities.

Fri, 06/22/2012 - 20:35 | 2552884 Dagny Taggart
Dagny Taggart's picture

Isn't it a shame to have to operate that way? Better to just keep the excess in the shiny stuff. ;-)

Fri, 06/22/2012 - 21:59 | 2552969 RockyRacoon
RockyRacoon's picture

Hey, Dag.  Good to see you!  I operate that way because I choose to.  Keeping a few grand in cash and the rest in PMs has been the MO since the late 1990s.   I try not to pay bills by internet accounts and write checks when possible.  Some folks get plain ole cash.

Oh, while I'm at it, here's a tip for those who might want to buy some bullion silver:

"I think there are many "low-information" physical silver investors who are faithfully stacking silver eagles every month, entirely unaware that there is a more cost-effective US bullion option for them to take advantage of."

These things are under sold and actual U. S. Mint "coins".   If the gov't ever decided to confiscate, they'd let you keep your "coin collection".  I've been buying from Aydin for years, use Paypal, and all shipping is free -- and NO I don't have any connection to them in any way other than being a customer.  You can buy one or at ton.  When I find a good seller I am loyal.

Fri, 06/22/2012 - 22:33 | 2553024 CaptainObvious
CaptainObvious's picture

All my bills are local and they all get paid in cash.  I promptly remove everything from my account on payday except a token amount so I don't get a service charge.  Bills get paid, the rest gets stacked.

Sat, 06/23/2012 - 08:51 | 2553400 Chain Gun Smoke
Chain Gun Smoke's picture

How is a 5 ounce silver coin costing $204.95 (from the mint) cost effective? 5 silver eagles at spot plus my dealer premium would cost $151.93.

Sat, 06/23/2012 - 14:03 | 2554026 RockyRacoon
RockyRacoon's picture

$169.40 currently at Aydin.   That's $33.88/ounce... net.  No shipping, no taxes, no nothing.  That's how.   You don't buy shit from the Mint.  Always go after-market for this type of stuff.

Fri, 06/22/2012 - 21:29 | 2552952 dolph9
dolph9's picture

Alright, so you guys are starting to wake up from your Call of Duty and World of Warcraft slumber.

Well done.  But believe me, all you'll find is depression and the realization you're sane when everybody else has gone crazy.

Fri, 06/22/2012 - 22:50 | 2553044 andrewp111
andrewp111's picture

My ATM withdrawal limit is $300/day.

Fri, 06/22/2012 - 23:24 | 2553091 Mary Wilbur
Mary Wilbur's picture

Call your bank's customer service number and ask them to raise the limit. They will happily do it for you after you have convinced them you are who you say you are.

Fri, 06/22/2012 - 18:28 | 2552659 MassDecep
MassDecep's picture

Step 1: Take your money out of GLD and SLV

Sat, 06/23/2012 - 01:09 | 2553194 BuildItToBreakIt
BuildItToBreakIt's picture

If you take your money out of the bank, buy something with it.  If everyone starts taking money out of the banks, they will just print more, and your money under the mattress will just end up being expensive wallpaper, but you won't be able to afford the glue because all you will have is worthless paper.

Taking your money out of a bank and hiding it under your matress is not the solution.  Buy something with it that you can touch.

Sat, 06/23/2012 - 01:58 | 2553211 CaptainObvious
CaptainObvious's picture

We do.  It's called "gold" and "silver".

Fri, 06/22/2012 - 17:21 | 2552529 C-B77
C-B77's picture

"Bank runs in Spain and Greece are indeed "serious" "

no shit..

Greek prime-minister suffered retinal detachment soon after he assumed duties

Greek minister of economy fainted and is still at the hospital shortly after his first briefing this morning





Fri, 06/22/2012 - 18:00 | 2552617 Bastiat
Bastiat's picture



Greek prime-minister suffered retinal detachment soon after he assumed duties

From banging his head on the wall?


Fri, 06/22/2012 - 19:12 | 2552774 Jena
Jena's picture

Or getting it banged for him.

Sat, 06/23/2012 - 00:55 | 2553182 Herd Redirectio...
Herd Redirection Committee's picture

I think there are pretty good odds those guys got roughed up.

Like when you beat someone with a sock stuffed with oranges, so that they don't bruise, and you can say "If they were REALLY beat up like they say there would be proof!"

I honestly didn't believe the detached retina/fainting stuff, but yeah, truth is stranger than fiction!  After the meeting the thugs got to them, or the truth REALLY does hurt!  :)

Fri, 06/22/2012 - 22:58 | 2553052 andrewp111
andrewp111's picture

There are no "bank runs" in Spain or Greece. There is a persistent "slow leak". It has been leaking for years now.  It may even  be leaking a bit faster in recent weeks. And yes, a slow leak is a serious long term problem. But use the right terminology. A "bank run" is what took place in 2008 after Lehman failed and the money market funds broke the buck. Over $250B was withdrawn in an first hour, and Bernanke only stopped the electronic run by declaring a blanket guarantee on all money market funds. Spain and Greece haven't leaked that much money in an entire year. If there was a real bank run in Spain, Italy, Portugal, or Greece, the EuroZone would collapse immediately.

Fri, 06/22/2012 - 17:22 | 2552530 slewie the pi-rat
slewie the pi-rat's picture

stop listening to what they said 14 months ago?  6?  2?

eric: you rad, dude

Fri, 06/22/2012 - 17:22 | 2552531 emersonreturn
emersonreturn's picture



It's probable during the final inning of the election hysteria may ensue, as each side gingerly teases the elephant, encouraging it to attack the other side, rather than the audience, themselves, or the ringmaster...(whomsoever that may be).  popcorn, please.  

Fri, 06/22/2012 - 18:44 | 2552699 Jendrzejczyk
Jendrzejczyk's picture

You have an odd mind...+1.

Fri, 06/22/2012 - 17:23 | 2552534 mark7
mark7's picture

"The smart money is finally waking up to the dimension of the problem here and realizing that it's really a banking issue."

It has been a big banking problem ever since American and British "investment" banksters were allowed to go totally wild since year 1998. Except for few countries, the government debt levels are not actually that high, well below 100 percent of GDP in most cases. Spain actually paid back a lot of the government debt during last decade.

Fri, 06/22/2012 - 17:42 | 2552574 NotApplicable
NotApplicable's picture

So, the smart money is finally waking up?

Sounds like the dumb money to me.

Fri, 06/22/2012 - 17:25 | 2552540 chubbar
chubbar's picture

So, what does "debt repudiation" look like in the context of dollar valuation, banking system and gov't system continuance?

Fri, 06/22/2012 - 17:47 | 2552584 NotApplicable
NotApplicable's picture

I'd answer your question if such a thing as debt repudiation existed. Instead, "its" pleas go unheard, as the politicos loudly shout rumors in an effort to drown out that signal with their noise.

Funny how a tiny minority can enslave millions with debt, but no number of people can undo it, as it will never happen under the guise of an "official" regime, therefore it doesn't exist.

Fri, 06/22/2012 - 18:16 | 2552639 Rainman
Rainman's picture

Depends on whether the debt repudiation comes on like a creek or a raging river.....I'll bet latter. 

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