"The Euro Is Finished"

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Thu, 09/08/2011 - 14:24 | 1647068 caerus
caerus's picture

i say the franc (as a safe haven at least) is finished

Thu, 09/08/2011 - 14:25 | 1647077 fiftybagger
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Thu, 09/08/2011 - 14:32 | 1647103 Ahmeexnal
Ahmeexnal's picture

maybe that's what "they" want everyone to think....

Thu, 09/08/2011 - 14:35 | 1647113 caerus
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maybe...but given the way the snb caved to the irs and their recent desperate attempt to depress the value of the franc by taking on unlimited amounts of worthless paper that they will eventually have to disgorge at massive losses i think the simpler explanation is that they (the snb) are idiots

Thu, 09/08/2011 - 14:40 | 1647131 dlmaniac
dlmaniac's picture

Never expect a sound currency from a rampant socialism union. Mathematical impossibility.

Thu, 09/08/2011 - 14:43 | 1647143 EscapeKey
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Are you talking about Europe or the States?

Thu, 09/08/2011 - 14:47 | 1647160 dlmaniac
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When politicians are allowed to pint money at will the currency is doomed b/c you can be sure as heck it's being spent on unproductive activity that ruins the real growth opportunities and economy at the end.

Thu, 09/08/2011 - 19:17 | 1648302 Dugald
Dugald's picture

Nah, Nah, Nah.....Don't you get it?      Its all a fiendish plot.....!

Thu, 09/08/2011 - 15:00 | 1647231 myTPisUSD
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I agree. I mean, think about it. The swiss peg the franc to the Euro, that means that gold will only go up (and faster) as the euro collapses, and swiss has a lot of gold. When the time is right they can depeg whenever they want to. Plus as the euro continues to fail it will make Swiss products (not just financial instruments) more attractive. Switzerland is used as a final assembly location for much of europe because of low taxes.

Thu, 09/08/2011 - 16:08 | 1647565 DosZap
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< and swiss has a lot of gold>

For a small country they do, as for the toatal they own, NOT so much.

Since they went off the Gold Std

Thu, 09/08/2011 - 16:47 | 1647722 Magnix
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"...and swiss has alot of gold.." STOLEN by Nazis. :-)

Thu, 09/08/2011 - 16:48 | 1647723 Magnix
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Thu, 09/08/2011 - 14:35 | 1647112 ratso
ratso's picture

Another simplistic article that does nothing more then say "Buy Gold".  No insight hear into the intricacies of the EU, the ECB, the SNB and the political realites of all the EU countries.  Just blah, blah buy gold

Thu, 09/08/2011 - 15:06 | 1647257 Spitzer
Spitzer's picture

Funny how the ECB is way more hawkish then the Fed yet they say the Euro will hyperinflate first.


Thu, 09/08/2011 - 17:42 | 1647899 destiny
destiny's picture

Pretty God Damn Article in my book ! We'll see how you blah blah when shtf...

Thu, 09/08/2011 - 14:43 | 1647142 disabledvet
disabledvet's picture

"kaput" ...as in "not working as intended." "finished" connotes a failure of the intended purpose...yet you claim this is exactly what policy makers want. Therefore the "euro is kaput." this is very important to know this too. You see "you laugh but kaput is not funny." ....haha...i see you are laughing again.

Thu, 09/08/2011 - 14:25 | 1647071 Crisismode
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They will continue to issue debt . . .


. . . until nobody will accept their debt anymore.


And then they will try to take what they want by force.


Until they are stopped by force.



Thu, 09/08/2011 - 14:28 | 1647089 The They
The They's picture

agreed. The Euro is a debt prison pure and simple.

Thu, 09/08/2011 - 15:07 | 1647264 Spitzer
Spitzer's picture

What is wrong with the Euro at the moment is what is right with it.

Thu, 09/08/2011 - 15:39 | 1647420 DaBernank
DaBernank's picture

Only an ill-informed individual with no understanding of national identities in Europe would spout such nonsense. Other than not being the Fed, the ECB has nothing going for it.

By buying bonds from governments and providing cheap credit to banks around Europe in a bid to stem the debt and bank crisis, the Eurosystem which underpins the ECB has become hugely leveraged. With only €81.187 billion in subscribed capital and reserves, compared to €1.895 trillion in assets, the ECB is now leveraged 23.4 times.10 In contrast, strong central banks such as the Swedish Riksbank, the Norwegian Central Bank and the Swiss National Bank, are leveraged only 4.7, 5.9 and 6.3 times respectively. Meanwhile, the average hedge fund is leveraged around four or five times.

Table 1: Spot the difference between the ECB and other central banks

(€m)            Capital     Reserves     Assets         Leverage     C+R as %ratio of Assets
ECB              10,761     70,426      1,895,870     23.4: 1        4.25
Swiss NB       36,174         -          226,641         6.25:1        15.96
Sweden         110         7,235        34,757          4.73:1         21.1
Norges Bank   8,441         -           49,345          5.85:1         17.1

Source: ECB weekly financial statement 24 May 2011, SNB Balance sheet, Swedish Riksbank weekly financial statement and
Norges Bank Balance sheet April 2011

Thu, 09/08/2011 - 15:51 | 1647483 TruthInSunshine
TruthInSunshine's picture

Not only did I 'up arrow' you, I now will give you a:





Nice work.

Thu, 09/08/2011 - 18:06 | 1647996 Ghordius
Ghordius's picture

The assets and ratios of CB's are only relevant for the DEFENCE of a currency.
Not the current situation, is it?

In a defensive I-have-to-keep-value situation RESERVES are what you need, FX and/or Au.

Thu, 09/08/2011 - 18:36 | 1648101 Nate H
Nate H's picture

meaning they are (gulp) not that far from needing recapitalization....

Thu, 09/08/2011 - 14:45 | 1647150 Little John
Little John's picture

  When democracy is replaced by tyrany those with rifles will still get to vote.

Thu, 09/08/2011 - 16:13 | 1647588 taint
taint's picture

yippee, I will get to vote 25 times!!

Thu, 09/08/2011 - 19:23 | 1648348 Dugald
Dugald's picture

Yeah so?   You can only fire one at a time chum......

Thu, 09/08/2011 - 19:52 | 1648573 FeralSerf
FeralSerf's picture

"Those who vote decide nothing. Those who count the vote decide everything." - Joseph Stalin

Thu, 09/08/2011 - 14:51 | 1647186 BigJim
BigJim's picture

Our overlords will continue to issue debt that no one wants, but which everyone will be required to purchase if they wish to see their banking licences unrevoked.

Thu, 09/08/2011 - 18:01 | 1647990 QaplaSilver
QaplaSilver's picture

I'm very concerened that you are right about that.. sad times ahead.

Thu, 09/08/2011 - 14:25 | 1647074 Roy Bush
Roy Bush's picture

Yeah, that's about right....couldn't have said it better myself.

Thu, 09/08/2011 - 14:26 | 1647080 ml8ml8
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Begs an interesting question:  What is a successful transition out of the EU from Greece's point of view? 

Thu, 09/08/2011 - 14:26 | 1647082 DaBernank
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Thu, 09/08/2011 - 14:29 | 1647092 Stax Edwards
Stax Edwards's picture

Meh, transitory

Thu, 09/08/2011 - 14:29 | 1647094 SheepDog-One
SheepDog-One's picture

Best line in the whole article 'This 'problem reaction solution' worked for the elite in the prior era but it will no longer work, we know the playbook now, it has been read and studied, its not going to work this time'.

Thu, 09/08/2011 - 14:29 | 1647095 nope-1004
nope-1004's picture

Much appreciated Mike.  Always enjoy your views.


Thu, 09/08/2011 - 14:43 | 1647096 TruthInSunshine
TruthInSunshine's picture

The only way the EUR is saved (if even temporarily, as in kick the can for a few months/years, and losing 50% or more of its value over a very short peiod as the ECB cranks out the EUR trash fiat), is if German Politicians fall on their literal swords as they pledge current and two or three future generations of Germans' labor, savings, sweat equity and output in order to bail out the welfare PIIGS+France nation states that surround them.

And even if German Politicians fall on their literal swords doing this, it can all be undone when their successors are brought into office, and the former office holders have to literally seek exile for reasons of their personal security.


Thu, 09/08/2011 - 16:58 | 1647766 Highrev
Highrev's picture

I've never before seen anything blown so far out of proportion by so many completely uninformed "experts".

Thu, 09/08/2011 - 18:01 | 1647989 TruthInSunshine
TruthInSunshine's picture

And your defense of the EUR and EU is so thick with meaty, substantive statistics.

Do tell how Germany is going to stretch itself thinly enough to bail out PIIGS+France.

Thu, 09/08/2011 - 14:32 | 1647097 gratefultraveller
gratefultraveller's picture

They commissars don't want anyone to leave, neither the rich nor the poor.

EU = Hotel California?

"According to the opinion of the EU-comission, the highly indebted Greece cannot be excluded from the Euro zone. "Neither voluntary departure nor exclusion are possible", the spokesperson for EU-commissar Olli Rehn said in Brussels on Thursday. The Lisbon treaty specifies that membership in the currency union is "irrevocable". The spokesperson specified that his was both a judicial as well as a political reply, and added "There will not be a discussion about this."


(Source: Topnews Dow Jones)

Thu, 09/08/2011 - 14:59 | 1647228 BurningFuld
BurningFuld's picture

Them's fight'in words!   

Thu, 09/08/2011 - 19:55 | 1648600 FeralSerf
FeralSerf's picture

"Them's fight'in words", y'all!

Thu, 09/08/2011 - 15:04 | 1647250 CD
CD's picture



Perhaps these sources are outdated, but there explicitly IS an exit clause in the Lisbon treaty. If a country (esp. Germany) decides to withdraw, what is the EU going to do to stop it? Send in troops to prevent a humanitarian disaster?

For more detailed analysis:


Of course, you are absolutely right in that they want NOONE to leave.

Thu, 09/08/2011 - 15:28 | 1647377 Clorox Cowboy
Clorox Cowboy's picture

I think J.C. "lie when it's really important" Juncker had a hand in crafting this statement...

Thu, 09/08/2011 - 14:33 | 1647098 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

How have we got into such a state that the fate of the world 'economy' rests on what a bald Jew fella has to say?

Oh yes, that's right, it's apathy that got us in such as state... and apathy is rife in the good old USA, more prevalent than ever.

At least the men and women of the middle east and parts of Europe got out of their chairs and put up a fight against the tyranny.

Thu, 09/08/2011 - 14:49 | 1647166 Juan Wild
Juan Wild's picture

That's true but we already have a zog and they are ironically just starting one. If the UN and USA help liberate countries you can bet a Rothschild controlled central bank will appear. Then they can start thier lovely new lives repleat with ipads, wide-screen tv's and 7 credit cards each. That's not what I call liberation.

Thu, 09/08/2011 - 14:59 | 1647229 web bot
web bot's picture

Leave the Jew stuff out of it... The Jews are our elder brothers and don't forget that.

Thu, 09/08/2011 - 14:38 | 1647120 Shell Game
Shell Game's picture

"So is cheerleader Perry"  ..there, fixed it for you.

Thu, 09/08/2011 - 14:40 | 1647127 fuu
fuu's picture

Ron Paul is done being the nice guy perhaps. Wtf was up with Perry grabbing him onstage?

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