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With Europe Broken Again, Sarkozy And Lagarde Are Back To Begging

Tyler Durden's picture




 

What a difference a month makes. About 4 weeks ago the European crisis was "over" - French President Sarkozy exclaimed that: “Today, the problem is solved!” Christine Lagarde, former French finance minister, and current IMF head following the framing of DSK, added that “Economic spring is in the air!”... Fast forward to today when following the inevitable end of the transitory favorable effects of the LTRO (remember: flow not stock, a/k/a the shark can not stop moving forward), the collapse of the Spanish stock market, the now daily halting of Italian financial stocks, the inevitable announcement that shorting of financials in Europe is again forbidden, and finally the record spike in Spanish CDS, Europe is broken all over again. Which brings us again the Sarkozy and Lagarde. The Frenchman who is about to lose the presidential race to socialist competitor Hollande (an event which will have major ramifications for Europe as UBS' George Magnus patiently explained two months ago), no longer sees anything as solved, and instead is openly begging for the ECB to inject more, more, more money into the system to pretend that "problems are solved" for a few more months. Incidentally, so is Lagarde, for whom in an odd change of seasons, economic spring is about to be followed by a depressionary winter. The problem is both will end up empty handed, as the well may just have run dry.

From the FT:

In effect ripping up a deal to shelve public differences over the ECB reached in November at the height of the eurozone crisis with Ms Merkel and Mario Monti, the Italian prime minister, Mr Sarkozy said the matter of ECB support for growth was “a question we cannot avoid”

 

He said: “If the central bank does not support growth, there will not be enough growth . . . I know the difficulties that surround this subject but we have the duty to reflect on it because it is a major problem for the future of Europe.”

 

Mr Sarkozy said: “Europe must purge its debts, it has no choice. But between deflation and growth, it has no more choice. If Europe chooses deflation it will die. We, the French, will open the debate on the role of the central bank in the support of growth.”

In other news, remember that so very "friendly" relationship between Merkel and Sarkozy? Kiss that goodbye.

And while Germany may or may not have had enough of bailing out everyone (between the ECB funding all peripheral banks, and TARGET2 funding all peripheral current account deficits), the IMF just can't get enough. Unfortunately, unlike the ECB, it does not have its own printer. Enter panhandling. Literally:

Holding up her Louis Vuitton handbag, the new managing director of the International Monetary Fund (IMF) turned to her fellow power brokers in one session and said: “I am here, with my little bag, to collect a bit of money.”

 

 

The joke broke the ice and the room rippled with laughter. But, beneath the disarming charm, Lagarde was deadly serious. For months now, the IMF has been trying to coerce its 187 members into committing as much as $600bn (£378bn) more to the fund to build what she described at the Brookings Institute in Washington last week as a “global firewall” to defeat once and for all the European sovereign debt crisis.

The problem, as is glaringly obvious, is that the IMF's piggybank really is the US. And no US, no "big bazooka", no "giant firewall"

Ever since “the Greek problem” flared up again in July last year, the talk from Brussels to London to Beijing has been about “big bazookas” and “giant firewalls” – a vast bail-out fund available to rescue any struggling nation from bankruptcy.

 

...

 

It has been a baptism of fire for Lagarde, France’s former finance minister who was appointed after the disgraced Dominique Strauss-Kahn stepped down in the wake of rape allegations. Just nine months into the job, she has the unenviable task of trying to build a co-ordinated global strategy on the shifting tectonic plates of domestic politics.

 

At the IMF’s key spring meetings in Washington this week, she faces her first real test. If Lagarde can strike a big deal on resources, she will be garlanded with praise. If she can’t, the jury will remain out. Either way, the pressure is now on.

Sorry, but with a US debt ceiling fiasco due in 4 months just ahead of a critical presidential election, the fire is about to be turned up a notch. Or ten... and be sulfur based. Because the math no longer works... And it never did.

Tellingly, all the US Treasury could muster in response to the eurozone agreement was the weak recognition that it “reinforces a trajectory of positive efforts to strengthen confidence in the euro area”. UK sources said that, privately, the US was bitterly disappointed, and adamant that no further US taxpayer money would be put at risk of more euro bail-outs.

 

Normally, US opposition would be enough to kill any plan to increase resources. But Lagarde has other ideas. She hopes to corral the rest of the major non-eurozone players – the UK, Canada, Japan, Australia, China and India – into a joint agreement. But she has already begun managing down expectations.

 

Having previously indicated that she wanted as much as $600bn more, she said at Brookings: “The needs now may not be quite as large as we had estimated earlier this year.”

 

UK sources said she would be lucky to secure $400bn. Of that, the eurozone members have committed to contributing €150bn – on top of their own bazooka – leaving just $250bn to be gathered from other members.

 

Even at $400bn, the extra resources would be a retreat from earlier ambitions. Lagarde wanted to increase the IMF’s available resources from the current $400bn to $1 trillion, while global policymakers had hoped for a total bazooka of €2 trillion to allay concerns about Europe. The IMF and the eurozone’s combined funds will fall well short of that.

Forget bazooka: IMF will be lucky to get a peashooter. In the meantime, Spain will not wait:

As markets have lost faith in Spain, questions have resurfaced about whether the eurozone firewall is big enough. According to CEPS, “even if the [firewall] only had to cover half of the financial needs of Spain and Italy”, it would need another €400bn.

Finally:

Even securing €250bn from non-eurozone members excluding the US could prove difficult.

So now that Europe is broken all over again, and with elections, riots, strikes, tumbling markets, hundreds of sovereign bond auctions, and no promise of free liquidity from anyone despite daily rumor otherwise... what happens next?

 

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Sun, 04/15/2012 - 19:11 | 2347343 Squishi
Squishi's picture

here is the money Now go home and get your fucking shoebox!

Sun, 04/15/2012 - 19:25 | 2347370 blindfaith
blindfaith's picture

 

 

AKA...the horse got out.  Broke his leg in the field on an unseen rock in the green shoots.  Now we have to drag it's terminal ass back to the barn that burnt down yesterday.

 

Got it.

Sun, 04/15/2012 - 19:57 | 2347445 Ahmeexnal
Ahmeexnal's picture

To Mr. Lagarde: It's nice to see no rope shall be spent when you are finally lynched by the angry mob: they will use your Hermes scarf to hang you from a lamp post.

To Ms. Sarkozy: You should start filling up the learjet with goldbars now before you are trapped in the Bastille and your head is severed from your torso.

Sun, 04/15/2012 - 21:09 | 2347558 bank guy in Brussels
bank guy in Brussels's picture

In the above article, Tyler says that Lagarde's IMF « does not have its own printer. »

However, in a famous article from October 2008, Ambrose Evans-Pritchard in the UK Telegraph, pointed out that the IMF actually does have the 'nuclear option' of printing money, and it has actually already been used briefly:

« The nuclear option is to print money by issuing Special Drawing Rights, in effect acting as if it were the world's central bank. This was done briefly after the fall of the Soviet Union but has never been used as systematic tool of policy to head off a global financial crisis. »

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/326966...

Sun, 04/15/2012 - 21:27 | 2347573 TBT or not TBT
TBT or not TBT's picture

"Mr" LaGarde?    Do you know something about what's in her pants that we don't?    Do tell!

Sun, 04/15/2012 - 22:05 | 2347627 Akrunner907
Akrunner907's picture

Time for Plan B: nationalize all private pension accounts and transfer the funds to the central treasuries.

Sun, 04/15/2012 - 22:24 | 2347645 Element
Element's picture

If she can fill her hand bag Germany may remain compliant and suckered for a few more months.

Mon, 04/16/2012 - 01:22 | 2347874 Manthong
Manthong's picture

Geez... she was born in 1956...

A little too much time at the beach, it seems.

Mon, 04/16/2012 - 02:47 | 2347956 toothpicker
toothpicker's picture

bag lady

Mon, 04/16/2012 - 07:23 | 2348063 DanDaley
DanDaley's picture

"Time for Plan B: nationalize all private pension accounts and transfer the funds to the central treasuries."

Works for me.

Con mucho amor,

Cristina Fernández de Kirchner

Sun, 04/15/2012 - 23:33 | 2347738 williambanzai7
williambanzai7's picture

DAVOS 2012: HEY, HAVE YOU SEEN WHO'S IN LAGARDE'S BAG?

Mon, 04/16/2012 - 01:24 | 2347876 Manthong
Manthong's picture

That graphic could be a little more trenchant with a guillotine in the background.

Mon, 04/16/2012 - 05:55 | 2348026 Scalaris
Scalaris's picture

Not even a Birkin?

Commoner.

Mon, 04/16/2012 - 11:10 | 2348570 Element
Element's picture

And look at that, she bought her wittle poodles ... I hear French crones like a good ... poodle.

Sun, 04/15/2012 - 19:44 | 2347411 LongSoupLine
LongSoupLine's picture

Again proving that the term "incompetent crooked assholes" has no geographic nor cultural boundaries.

Sun, 04/15/2012 - 19:50 | 2347431 HellFish
HellFish's picture

SHINE box, not Shoe box.

Sun, 04/15/2012 - 20:27 | 2347494 string
string's picture

shinebox maybe ?

 

Sun, 04/15/2012 - 20:30 | 2347504 Squishi
Squishi's picture

soapbox

Sun, 04/15/2012 - 20:55 | 2347536 tom a taxpayer
tom a taxpayer's picture

Lagarde stole the line from the Cartagena lady who said: “I am here, with my little bag, to collect a bit of money."

Sun, 04/15/2012 - 23:59 | 2347777 stocktivity
stocktivity's picture

As if the US won't relent and pony up the money....It's all Bullshit!

Sun, 04/15/2012 - 19:13 | 2347344 navy62802
navy62802's picture

There's no problem here. Move along.

Sun, 04/15/2012 - 19:33 | 2347389 blindfaith
blindfaith's picture

 

 

NICE...Damn...TAN.  No that is not Chinese, it is observation on the 'lady".

Well, ok, maybe it is Chinese.

Sun, 04/15/2012 - 20:06 | 2347460 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

I wonder what she looks like *down there*...I bet all leathery and fake tan too. I'm thinking a little spiky racing stripe, maybe dyed blonde...Sorry, lunchtime

Sun, 04/15/2012 - 20:17 | 2347478 Bill D. Cat
Bill D. Cat's picture

Dentata , baby .

Sun, 04/15/2012 - 21:27 | 2347576 TBT or not TBT
TBT or not TBT's picture

More speculation on what is in her pants.   Hmmm.    ZH breaks the impotant stories after all, so...

Sun, 04/15/2012 - 22:11 | 2347632 Western
Western's picture

I bet she is a good lay.

Sun, 04/15/2012 - 23:41 | 2347754 hairball48
hairball48's picture

She might be. She's certainly UGLY enuf to be a good lay

Mon, 04/16/2012 - 04:09 | 2347992 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I honestly think if I were ever faced with the choice with a gun to the back of my head, I'd go for Merkel over her

Mon, 04/16/2012 - 04:38 | 2347999 Western
Western's picture

u guyz r fegs

Sun, 04/15/2012 - 20:50 | 2347529 tom a taxpayer
tom a taxpayer's picture

Mozillo shared his tanning secrets with Lagarde.

Mon, 04/16/2012 - 00:06 | 2347785 Agent P
Agent P's picture

No kidding...at first I thought the picture was of a matching set of luggage.

Sun, 04/15/2012 - 19:17 | 2347350 slaughterer
slaughterer's picture

Uh, time for LTRO3?  Al-fuckin-ready???

Sun, 04/15/2012 - 19:19 | 2347365 urbanelf
urbanelf's picture

Mais, non!  L'Opération de Torsion!

Sun, 04/15/2012 - 19:49 | 2347427 sunny
sunny's picture

The most recent Trillion (Feb 29) lasted 46 days before reality hit home again.  Any idea on how long the next Trillion will matter?  As much as 30 days?  Less?  Should we start a pool?

sunny

Sun, 04/15/2012 - 22:15 | 2347630 cranky-old-geezer
cranky-old-geezer's picture

 

 

It just boggles my mind how these otherwise intelligent people can be so brainwashed, thinking more money to fund more debt will solve a debt problem.  It's pure insanity from otherwise intelligent people.

Three years ago they said print a little money and fund a little more debt till the economy recovers, then it'll be paid back.

Of course the economy didn't recover, and they've been coming back every few months with the same story, print a little more money and fund a little more debt till the economy recovers.

Of course I never believed their story.  It isn't borrowing a little more money till the economy recovers.  It's looting the nation a few hundred billion at a time.

We can't blame bank bailouts solely. Governments are the big bailouts now.  And it's a bottomless pit.  No end in sight.  More and more borrowing funded by more and more printing until currencies collapse.

These people aren't stupid.  They have to know what all this printing is doing to their currencies.  They have to know currency collapse is coming.

But they keep right on, which tells me it's part of some larger plan, a plan I have no knowledge of, but it has to be there nonetheless.

Why would these people want to destroy their currency?  I don't understand.   Unless looting is the reason.  Looting the nation.   Looting the people.   Looting everybody using that currency.

Central bankers are the 21st century pirates, looting entire nations with their printing press, passing that looted wealth off to government stooges, then most of it ends up in banker pockets ultimately.

Maybe governments are just money launderers for central banker pirates.

Mon, 04/16/2012 - 04:40 | 2348002 mushi
mushi's picture

Now you are getting it.

Mon, 04/16/2012 - 07:18 | 2348058 Mad Mad Woman
Mad Mad Woman's picture

They will loot every single country and then leave everyone high and dry. Then there will be massive unrest. The bankers think they will have the best security money can buy, but in that kind of situation, the bankers are dead ducks. It will be a world wide French Revolution, and will get very messy for those blood suckers. In that case they all deserve to die for what they have done to the world. Even Madame LaGarde is not safe.

Sun, 04/15/2012 - 19:15 | 2347353 The Alarmist
The Alarmist's picture

Plus ça change! Sorry, I meant to say, "Spare some change?"

Sun, 04/15/2012 - 19:29 | 2347384 blindfaith
blindfaith's picture

 

 

You are not going to believe this.

In my town, they are fencing off an area that if you want to beg/ask/plead (for the childern) for money, food,OR  a fucking break...you HAVE TO BE INSIDE that fence.  GOD help you if you are not because..... you already know the end.

Luckly, it is near HLS and a nice Coach Store which go hand in hand.

Sun, 04/15/2012 - 19:16 | 2347354 TooBearish
TooBearish's picture

LTRO 3 ...Bitchez!

Sun, 04/15/2012 - 19:19 | 2347356 Caviar Emptor
Caviar Emptor's picture

It's an international Conga Line of deflating economies circling the drain, "solved" by knee-jerk money printing which in turn leads to biflation: the two-headed monster that is now real but only existed in central banker nightmares. 

Sun, 04/15/2012 - 19:39 | 2347402 blindfaith
blindfaith's picture

 

 

Yes, and it can last for a VERY VERY VERY long time before the air is gone out of the balloon...longer than your shorts can endure I assure you.

 

Think LTCM, and the other shadow sewers.  The Roman Empire falls...the world, however didn't wait, but instead, observed what followed on.........  And, here we are.

Sun, 04/15/2012 - 19:47 | 2347420 Caviar Emptor
Caviar Emptor's picture

LTCM was just a feeding line leading to the main sewer, the Cloaca Maxima of the international finance combine (banks conspiring together and with governments to blow bubble after bubbe, allow mass speculation with vital resources all based on the promise of being unquestioningly backed up by taxpayers)

Mon, 04/16/2012 - 07:21 | 2348061 Mad Mad Woman
Mad Mad Woman's picture

There is no way that this can continue for a very long time. No way. They are at the end of the rope and there is no knot at the end.

Sun, 04/15/2012 - 22:50 | 2347667 cranky-old-geezer
cranky-old-geezer's picture

 

 

knee-jerk money printing which in turn leads to biflation: the two-headed monster that is now real but only existed in central banker nightmares.

No, it's just a crazy illusion in your mind, nobody else with the smallest knowledge of economics and monetary theory believes your "biflation" bullshit.

What you're describing is two effects of inflation (and hyperinflation eventually).  The purchasing power of your savings and paycheck drops while prices rise.

It's because you can't raise your price like other people can raise their prices.   Your employer determines your price, not you, and they're gonna keep your price low as they can, and if you don't like it there's lot's of people ready to step into your job, and you know it, so shut the fuck up.

You wana raise your price like other people raise their prices?  Go start your own business ...if you have the balls for it ...which you probably don't ...pussy.

"biflation".  What horseshit.

Mon, 04/16/2012 - 07:30 | 2348079 DanDaley
DanDaley's picture

c-o-geezer,

Somehow I miss the warmth of your other avatar.

Mon, 04/16/2012 - 18:24 | 2349960 cranky-old-geezer
cranky-old-geezer's picture

 

 

Actually I changed it back to the pink cameltoe.  Don't know why Dark Side Of The Moon album cover still showing sometimes.

Sun, 04/15/2012 - 19:18 | 2347361 Deep79
Deep79's picture

I wonder these days, all these so called 'leaders" are really stupid. It amazes me the shit they say. Is it because the ponzi has hit a wall, or where these so called leaders always this stupid.

Sun, 04/15/2012 - 19:21 | 2347366 Caviar Emptor
Caviar Emptor's picture

Sorry, they ain't stupid. That's what they'd like you to believe so you don't come after their heads

Sun, 04/15/2012 - 19:45 | 2347414 blindfaith
blindfaith's picture

 

 

 

Hum yes...civilized societies don't chop off heads.  But, we do have instutions which do long term drug assisted research on abnormal or indefendable behavior.  Well...for some anyway.

The slogan.."bad judgement' is a Wall Street creation for defense.

Mon, 04/16/2012 - 07:24 | 2348065 Mad Mad Woman
Mad Mad Woman's picture

They are but pawns in this huge chess game being played by the bankers and the Bildabergers. They are just following orders and hoping for the best. They are all idiots!

Sun, 04/15/2012 - 19:22 | 2347369 QQQBall
QQQBall's picture

Holding up her Louis Vuitton handbag, the new managing director of the International Monetary Fund (IMF) turned to her fellow power brokers in one session and said: “I am here, with my little bag, to collect a bit of money.

 

One day this elitist humour will be met with pitchforks. Stand on a street croner in Athens and say that and see what happens.

Sun, 04/15/2012 - 19:23 | 2347375 Madcow
Madcow's picture

Blythe Masters recently asserted that JPM has $76 Trlillion of physical silver somewhere in a vault in Manhattan.  

 

Can't they just sell a tiny fraction of that and solve this whole Hyler-Deflation mess once and for all ??

 

http://www.cnbc.com/id/46969993/JPMorgan_Not_Speculating_on_Commodities_...

 

Sun, 04/15/2012 - 19:38 | 2347401 jcaz
jcaz's picture

Sell it?   They can only do that if they OWN it.....

Wait for the inevitable "confiscation"-  it's happened before......

Sun, 04/15/2012 - 20:23 | 2347487 El
El's picture

When has silver ever been confiscated?

Sun, 04/15/2012 - 21:49 | 2347608 Curt W
Curt W's picture

Some feel this gives the right to sieze any resource needed for national defense.

http://www.whitehouse.gov/the-press-office/2012/03/16/executive-order-national-defense-resources-preparedness

Sun, 04/15/2012 - 22:09 | 2347623 graspAU
graspAU's picture

In the US staring in 1934 by virtue of an FDR executive order. It was confiscated by charging very high seniorage/coinage fees (started out at about 61%)." less a deduction of 61 8/25 percent thereof for seigniorage, brassage, coinage, and other mint charges". Turn in silver, they take 61 percent and give you 39% back after coined.

FDR believed that gold was for governments and silver was for circulation as money. Read his private letters (published 1950) as well as the books containing his public letters and addresses.

Executive Order 6814 - Requiring the Delivery of All Silver to the United States for Coinage August 9, 1934: http://www.presidency.ucsb.edu/ws/index.php?pid=14741

Another great source of information on this subject is author Edwin Viera's, Pieces of Eight which was reprinted recently. Worth its weight in gold in terms of monetary history from colonial times forward in the U.S.

In addition, right click and download this. This was testimony by the Treasurer of the U.S. in the Congressional record, presenting a list of silver hoarders known to have >=50,000 ounces in their possesion: http://www.silver-investor.com/charlessavoie/hoardersofsilver.pdf

 

 

 

Sun, 04/15/2012 - 23:09 | 2347699 El
El's picture

Very interesting. I was not aware of that. Thanks!

Sun, 04/15/2012 - 22:03 | 2347624 graspAU
graspAU's picture

duplicate

 

Sun, 04/15/2012 - 19:29 | 2347376 Village Idiot
Village Idiot's picture

"Once and for all!"  Carry a CHANEL next time - you look cheap.

Sun, 04/15/2012 - 19:30 | 2347385 Caviar Emptor
Caviar Emptor's picture

Let's ask Japan how they're doing with their serial bazookas that they've been firing at their two-headed monster since 1991

Sun, 04/15/2012 - 19:44 | 2347394 Atomizer
Atomizer's picture

My balls are hanging on the clothes line for the US Basel III Central Bank success.

 

Seizing the Moment – Thinking Beyond the Crisis <<<<<---- Bag holder speaks on behalf of IMF.

Sun, 04/15/2012 - 19:34 | 2347395 azzhatter
azzhatter's picture

Christine and Sarko sharing a bong?

Sun, 04/15/2012 - 21:31 | 2347582 TBT or not TBT
TBT or not TBT's picture

A dildo is probably more apt here, given what is in store for Zeropa.

Sun, 04/15/2012 - 21:40 | 2347595 tom a taxpayer
tom a taxpayer's picture

Christine and Sarko also share a thong. Sarkozy's balls have shrunk in recent weeks as he senses denouement of his power in next election. At the same time, Lagarde's vulva has engorged and swelled as she wields power as head of IMF. A liaison to swap spit is too dangerous, and so, these Francophiles bond for La Belle France by sharing a thong that fits shrunken balls and swollen vulva.

 

Sun, 04/15/2012 - 19:35 | 2347396 JustObserving
JustObserving's picture

"or months now, the IMF has been trying to coerce its 187 members into committing as much as $600bn"

What will $600 billion do?  Postpone the problem by 2 months? Or 3 months?  The US is running deficits of $200 billion a month (February and March) and is supposedly doing much better than Europe. Of course, no one talks of the $550 billion a month growth in US unfunded liabilities.

Europe requires a couple of trillion dollars not just $600 billion.  And even then, it will be a tempoarary fix.

Sun, 04/15/2012 - 19:40 | 2347403 jcaz
jcaz's picture

Just long enough for her to get out of town.....

Sun, 04/15/2012 - 19:50 | 2347429 Caviar Emptor
Caviar Emptor's picture

Yes, all true @JustObserving. 

But the real tragedy is the stark reduction in newly minted billionaires coming off the Wall Street/City/Euro Bank assembly line. It's depressing to all the wannabes sitting at home staring at their own unpayable debts

Sun, 04/15/2012 - 23:13 | 2347705 cranky-old-geezer
cranky-old-geezer's picture

 

 

Europe requires a couple of trillion dollars not just $600 billion.  And even then, it will be a tempoarary fix.

 These people simply aren't that stupid to keep playing kick the can like this.

It isn't kick the can.  It's looting.  With sovereign debt needs as a cover story.

It's running the printing presses to loot the people, plain and simple, transferring as much wealth as possible from the people to the government, which eventually ends up in bankers' pockets.

Mon, 04/16/2012 - 07:27 | 2348072 Mad Mad Woman
Mad Mad Woman's picture

There simply isn't enough money in the world anymore to paper over all the problems. It's time to pay the piper.

Sun, 04/15/2012 - 19:36 | 2347397 Zombie Investor
Zombie Investor's picture

I think your translation is incorrect.  She said: "This bag is fake leather!  This I know, just look at my face.".

Sun, 04/15/2012 - 19:37 | 2347398 monopoly
monopoly's picture

Will this ever end? Will the planet ever reset so we can start over....from the beginning.

Sun, 04/15/2012 - 20:14 | 2347477 CrashisOptimistic
CrashisOptimistic's picture

Can't reset oil that's already been burned.

Sun, 04/15/2012 - 23:20 | 2347710 cranky-old-geezer
cranky-old-geezer's picture

 

 

Yes ...but plan on starting over in 3rd world conditions.

Be careful about that reset you hope for.  It'll be so bad you might not live thru it.  Or wish you hadn't.

Sun, 04/15/2012 - 19:40 | 2347404 jools
jools's picture

I'm french.
They clearly don't represent us anymore.
Sarkozy, Lagarde, Draghi, Monti, Papendreou, Papademos, Merkel, Cameron, Zapatero, Von Rompuy, Barroso...
These men and women don't know their job, so they just do what they're asked to by the .01%
They lie, they lie and sometimes, they lie, to us, to you.
Because it's crystal clear:

NO DEBT WILL BE PAID!

because:

IT'S IMPOSSIBLE TO PAY THIS AMOUNT!

so:

choose -> war/hyperinflation/megadeflation/default

The "no-way-to-pay-this-amount" is true for Europe, but also for USA and even BRICS...

Sun, 04/15/2012 - 19:56 | 2347444 Caviar Emptor
Caviar Emptor's picture

They could actually pay the debts....and make a loaf of bread cost 1Million Euros. 

So these geniuses are falling back on the old playbook: how can we create a shiny new speculative bubble that we can channel quadrillions to? Should we drill for minerals on the moon (shades of the South Seas and Louisiana bubbles of centuries before)? Should we grow gluten-free crops on exoplanets? Maybe a tunnel to China originating in Kokomo Indiana....

Sun, 04/15/2012 - 21:10 | 2347559 Acorn10012
Acorn10012's picture

Kokomo?

Sun, 04/15/2012 - 21:31 | 2347584 TBT or not TBT
TBT or not TBT's picture

We'll get there fast and then we'll take it slow

Mon, 04/16/2012 - 01:07 | 2347860 StychoKiller
StychoKiller's picture

TBT or not TBT FTW!  The best comment in the thread, hands down! :>D

Sun, 04/15/2012 - 19:41 | 2347406 FischerBlack
FischerBlack's picture

Her bag is made from the same leather as her face.

Sun, 04/15/2012 - 19:43 | 2347408 phungus_mungus
phungus_mungus's picture

DAMN!!! 

That redhead in the Snoorgie's Tee Shirts add on the main page is HAWTTT 

Sun, 04/15/2012 - 21:12 | 2347562 Acorn10012
Acorn10012's picture

All I'm getting is the kilo coin.

Sun, 04/15/2012 - 19:45 | 2347412 TWSceptic
TWSceptic's picture

Deflation bad - inflation good. Morons. Will they ever learn?

Mon, 04/16/2012 - 00:16 | 2347799 Agent P
Agent P's picture

If you owed 10x more than you could ever hope to repay, which one would you favor?

Sun, 04/15/2012 - 19:49 | 2347422 Barry McBear
Barry McBear's picture

This flow vs stock argument by the fed is baffling.  I don't understand how they can think it's the stock of their holdings that holds up the price.  If it was a rare commodity that was being bought up, say silver, then I agree that it's the stock that matters (ie Hunt brothers).  But when it's garbage paper that is constantly being produced at a record pace (Treasury debt) that is being bought up, stock means nothing.  If anything, the price of treasuries/mbs should go down even further if the market was going to price in the excess supply that would hit the market if the fed were ever going to unwind their holdings... but the market is smart enough to know that is never going to happen.

Sun, 04/15/2012 - 19:57 | 2347424 PaperBear
PaperBear's picture

It would have been too obvious if she had been wearing a mask and holding a brown paper bag in one hand and a gun in the other hand.

Sun, 04/15/2012 - 19:59 | 2347451 Joebloinvestor
Joebloinvestor's picture

I see two bags.

Sun, 04/15/2012 - 20:03 | 2347455 Ahmeexnal
Ahmeexnal's picture

I see an old ugly bag and an old ugly hag.

Sun, 04/15/2012 - 21:33 | 2347586 TBT or not TBT
TBT or not TBT's picture

And now, speculation about what is in her bra!

Sun, 04/15/2012 - 23:53 | 2347767 hairball48
hairball48's picture

A two-headed monster? I don't really want to know what's in there.

Mon, 04/16/2012 - 00:19 | 2347803 Agent P
Agent P's picture

matching luggage

Sun, 04/15/2012 - 19:52 | 2347433 css1971
css1971's picture

Wow, and yet they just keep making it bigger. As if a bigger problem is bettern than a smaller one.

Sun, 04/15/2012 - 19:52 | 2347435 slewie the pi-rat
slewie the pi-rat's picture

the ojSimpson trial was about louisVuitton, who was also acquitted

the cookie dough ice cream went down

Sun, 04/15/2012 - 19:52 | 2347437 Snakeeyes
Snakeeyes's picture

http://confoundedinterest.wordpress.com/2012/04/12/jobless-claims-rise-1...

Lagarde is begging over here. And she is pitching OBama's line of principal reductions.

NOBODY wants to cut government spending.

Mon, 04/16/2012 - 01:11 | 2347864 StychoKiller
StychoKiller's picture

They dare not cut spending, read this to see why:

"The Creature From Jekyll Island, a Second Look at the Federal System", 5th Ed., G. Edward Griffin, ISBN:  978-0-912986-45-6

Sun, 04/15/2012 - 19:54 | 2347439 booboo
booboo's picture

if they had it they would have used it, they ain't got it. Just a bunch of people clinging to their fiat religion and printing press.

Sun, 04/15/2012 - 19:59 | 2347441 GeoffreyT
GeoffreyT's picture

It's all just part of The Spectacle - the perennial ebb and flow of absolute bullshit from the layer upon layer of parasitic bullshit-artists the suck the life out of the productive segment of humanity. 

Vermin like Le Roi des Nabots Méchants (with his heel lifts and Just for Men) will keep declaring that he and his partners in crime have 'solved' the problem... time and time and time again. And the media will continue to re-broadcast the Elysée's press releases as if they were not laughable at first glance.

 

The key thing that ZHers fail to grasp, is that 95% of the public gets their financial news from the TV.Expecting them to understand that they're being hosed and gang-raped is almost unfair.

They (the 95%) are exhausted after a long day, and they sit in front of the TV and fall into a quasi-hypnotised state within ten minutes... then to be bombarded with infantile pseudo-analysis, false 'conflicts' and their equally-false 'resolutions'... and they (the 95%) have neither the energy nor the analytical skill to discern that this same shit has been sold to them, time and time again.

It would be sad if it wasn't so infuriating - and it's also not their (the 95%'s) fault: they are perennially exhausted, and also indoctrinated as deeply as North Koreans (especially Americans, who Pledge Allegiance to a stupid nationalistic piece of cloth during the period when their minds are most plastic - and in whose society you can be ejected from a ballpark for refusing to stand and remove your hat during the national anthem).

 

It's been something on which I've mused for almost a decade now - what if the 'unintended consequences' of policy, actually aren't (unintendend, that is).

What if it was abundantly clear, ex ante, that fluoridating water would lead to iodine deficiency (and thence to endocrine disruption as FL replaced I in the thyroid leading to inadequate T3 and T4 hormone production)? Lower T3 and T4-> feminisation, obesity (through downshifting of lipo-protein lipase), and behavioural changes.

What if it was abundantly clear - ex ante - that subsidising refined carbohydrate (and more so, refined fructose) and tilting the 'food pyramid' in favour of carb consumption was obesogenic? Obesity, far from being an effect of laziness, actually causes endocrine and metabolic changes that force the individual to become less active.

And on and on it goes - from Rumsfeld's replacement of the head of the FDA to get Aspartame approved, to the nonsense of Ancel Keys' lipid hypothesis... why do all the "Oops! Our bad!" events happen in only one direction? Can it possibly be coincidence that the "Oops!" direciton happens to be that which causes a subdued, compliant, ovine population?

What if it was understood - ex ante - that public education was a great means by which the State could encourage the acceptance of its right to act in loco parentis? What better way to get folks to believe that all their children are belong to the government, to do with as they please.

What if it was understood - ex ante - that subsidising reproduction (especially through direct tax tranfer payments, as is the case in Australia with the 'baby Bonus') would have its most profound effect on the bottom of the economic pile? That the lower is household income, the more impact a 'breeding bonus' would have (and the less capable of accurately forming an expectation of the actual costs of offpsringing, and the worse parents as a result).

What if it was understood - ex ante - that militarising police forces would lead to the rise of a psychotype within law enforcement that is anathema to their supposed role (as defenders of individual rights against unlawful aggressions)?

And what if it was understood - ex ante - that using government money to fund government-sponsored advertisements in print and visual media would serve as a device to creat dependence of media companies' revenue stream on government? What better way to ensure media compliance... if you don't run the government line on carbon taxation, you might not be at the table when we're doling out the ad budget for our 'new initiative'.

 

And lastly: what if this 'crisis' (a period of economic stagnation where - at absolute worst -  individual material REAL consumption will fall 25% from peak to rough over the next 15 years) is really about a deliberate effort to gull the public into accepting the transfer of yet more public (tax) money to the pockets of the REAL paymasters of the tax-parasites (the financial services sector primarily, but oligopolistic corporate cronyists generally)?

Chesterton was right (the full work is one of the most moving short poems ever written):

A war that we understood not came over the world and woke
Americans, Frenchmen, Irish; but we knew not the things they spoke.
They talked about rights and nature and peace and the people's reign:
And the squires, our masters, bade us fight; and never scorned us again.
Weak if we be for ever, could none condemn us then;
Men called us serfs and drudges; men knew that we were men.
In foam and flame at Trafalgar, on Albuera plains,
We did and died like lions, to keep ourselves in chains,
We lay in living ruins; firing and fearing not
The strange fierce face of the Frenchman who knew for what he fought,
And the man who seemed to be more than man we strained against and broke;
And we broke our own rights with him. And still we never spoke.

Our path of glory ended; we never heard guns again.
But the squire seemed struck in the saddle; he was foolish, as if in pain.
He leaned on a staggering lawyer, he clutched a cringing Jew,
He was stricken; it may be, after all, he was stricken at Waterloo.
Or perhaps the shades of the shaven men, whose spoil is in his house,
Come back in shining shapes at last to spoil his last carouse:
We only know the last sad squires ride slowly towards the sea,
And a new people takes the land: and still it is not we.

They have given us into the hands of the new unhappy lords, Lords without anger and honour, who dare not carry their swords. They fight by shuffling papers; they have bright dead alien eyes; They look at our labour and laughter as a tired man looks at flies. And the load of their loveless pity is worse than the ancient wrongs, Their doors are shut in the evenings; and they know no songs.
Sun, 04/15/2012 - 19:59 | 2347449 Caviar Emptor
Caviar Emptor's picture

Disagree. Somehow the very average people I speak to are very much aware this time, more than I ever thought was possible. And being traumatized will do that to people. So does the internet

Sun, 04/15/2012 - 20:10 | 2347466 Jendrzejczyk
Jendrzejczyk's picture

My neighbors handed me a hard copy of this: http://www.chaostan.com/warkilldollar.html

They overheard a conversation at a holiday party in December, and thought I might be interested. There are more and more people waking up everyday.

Sun, 04/15/2012 - 20:20 | 2347481 GeoffreyT
GeoffreyT's picture

Here's the thing about anecdotes - they're really really bad as estimates of central tendency. (The 'average' person I speak to is the worst possible sample, for example - almost all of them are university-educated to some degree)

I would almost bet that these 'very average' people you speak to, actually aren't very average at all. They might be from the economic median, and have 'average' levels of education - but if they get their news from somewhere other than the TV, they're not 'average' (58% of folks in a 2010 survey said they got their news from the TV) - and although 34% of people in that poll claim to have gotten 'some' news online in the day before the survey, there is no indication of the type of news they consumed. (Whereas for those who watch TV news, there is abundant evidence of what they view).

Furthermore, it is still the case that in the US (and other major Western economies), surveys of adult literacy show that 40% of the population read at a level that makes them unable to follow a chemist's instructions on a pill bottle. So... for those folks, TV is the ONLY source that they can comprehend: their entire informaiton lives can be reduced to "Some guy told me...", because they literally do not have the tools to comprehend written content.

Like most internauts, it is my core belief that the internet is an information-liberating technology that will undermine State information controls in the same way as the printing press undermined both State and Church information controls beginning in the late 15th century. The only 'wrinkle' in that analysis is whether or not the political class plunge us into another global conflagration before they are finally exposed as parasitic charlatans (the way the Church was exposed in the 18th and 19th centuries in Enlightenment Europe - but even that took another century and a half to really bite, and it still hasn't done so in the US).

 

Sun, 04/15/2012 - 20:33 | 2347505 Seize Mars
Seize Mars's picture

Thoughtful posts. Depressing...

The only good news I see these days is that more and more people are starting to wake up.

The bad news is that I think that TPTB feel it is absolutely imperitive that they plunge us all into a world war, and fast. It's a time tested, "ultimate distraction." It will cover up everything, including currency collapse.

Sun, 04/15/2012 - 21:11 | 2347560 GeoffreyT
GeoffreyT's picture

Odd as this may sound given what I wrote above, I am actually really very optimistic about the future after the next 15 years... those will be worse than the last 25, which were pretty shitty for the median in real terms (real median wages in the US were lower in 2010 than the ywere in 1974).

I'm super-super-super lucky - I'm a mostly-white educated guy who lives in a first-world country. Even within the 'white man problems' world, I'm a decent stretch above both the median and the average... which, because the income/wealth distribution is sort of log-normal (or Fisk), puts me in a better position than about 80% of my compatriots (and 95% if you add in The Lovely's income) and 99% of the planet.

So apart from a long-running internet feud with a French midget (which has seen him and his sockpuppets claim, inter alia, that I 'motivated' the Utoya massacre), there is almost no downside for me unless I contract a debilitating disease or run foul of the State's mailed fist.

I'm way too old to be forced to participate in the next round of industrial slaughter (except as an innocent victim), and Australia is far enough away from the likely area of maximum devastation to be unlikely to experience fallout (although if I was China, I would pre-emptively nuke Australia's major political centres - Sydney, Canberra and Melbourne - the minute the Yanks do something globally-stupid... we round-eyes all have a habit of kowtowing to the declining superpower of the day).

So anyhow... we should, by all means, get exercised and outratged by the behaviour of the global parasite class (Sarko and his politician chums).

That said - the moment you pull back and take the broader view, it becomes clear that our technological progress is likely to get us past a important developmental 'knee' within 2 decades: the key thing is, that's true even if there's a large-scale war that obliterates half of the industrialised world.

So by 2035 those of us who aren't obliterated by the next parasites' pissing contest will have virtually unlimited lifetimes and consumption possibilities - or more accurately "experience possibilities", since I do think we will transcend these shitty meatbags that we are forced to inhabit by the maddeningly slow progress of unenhanced physical evolution; my meatbag is pretty good at the moment, but experience shows that meatbags are awfully unreliable.

Sounds silly and utopian from our current perspective... but imagine how LUDICROUS it would seem to a 14th century peasant (who worked 60 days to pay his 'burden' - taxes PLUS RENT) if you told him that the following was jointly true in our time:

  • we could move ten thousand books across the planet in an hour;
  • we could put a metal tube heavier than any 14th century warship, into the sky and move the length of England in less than 2 hours;
  • we pay upwards of 45% of our income in direct and indirect taxes AND STILL the government spends more than it earns (at all levels).

If you told anyone from the time of Napoleon that aluminium (at that time the most expensive metal on the planet) would some day be disposable, they would think you were out of your mind.

Sun, 04/15/2012 - 20:45 | 2347525 Caviar Emptor
Caviar Emptor's picture

You are seeking hard numbers, real answers to difficult questions. You'll be disapointed. I can just tell you that I am surprised not just at how many and which people seem to be well-informed in global finanacial matters, I also find that the type of information that they can converse about is surprisingly outside the realm of their daily experiences. The net is more powerful than you think. And even more importantly, the need to seek and find answers is more pressing and urgent than it was before when people could just nod off in front of the TV in self-induced ignorant bliss

Sun, 04/15/2012 - 21:24 | 2347571 GeoffreyT
GeoffreyT's picture

I think the answers are there - and they're actually not that hard to find. I also agree with you to an extent - among the literate, there is a growing distrust of the palace-dwelling parasites.

But here's the thing: the illiterate and semi-literate are a plurality, and a corollary of the Dunning-Kruger Effect is that they will fall prey to demagoguery and political chicanery - andthat will be especially the case if they are encouraged to direct hate and dissatisfaction at The Other.

I will say this: it is almost not possible for the internet to be more powerful than I think it is. My view of how powerful this medium is, goes something like: "Fire, the wheel, agriculture and domestication, the printing press, the Industrial Revolution, the Enlightenment and sanitation - combined, then raised to an imponderably large number".

And that's just when it's used for ZH, porn, bitTorrent/Usenet, and 4chan. When it matures, it will frighten the political class even more than it does now.

Sun, 04/15/2012 - 22:06 | 2347621 Dapper Dan
Dapper Dan's picture

Great thoughts geoffrey, thanks!

Someone else thinks the internet is important!

Web freedom faces greatest threat ever, warns Google's Sergey Brin

Exclusive: Threats range from governments trying to control citizens to the rise of Facebook and Apple-style 'walled gardens'

The principles of openness and universal access that underpinned the creation of the internet three decades ago are under greater threat than ever, according to Google co-founder Sergey Brin.

In an interview with the Guardian, Brin warned there were "very powerful forces that have lined up against the open internet on all sides and around the world". "I am more worried than I have been in the past," he said. "It's scary."

He said he was most concerned by the efforts of countries such as China, Saudi Arabia and Iran to censor and restrict use of the internet, but warned that the rise of Facebook and Apple, which have their own proprietary platforms and control access to their users, risked stifling innovation and balkanising the web.

"There's a lot to be lost," he said. "For example, all the information in apps – that data is not crawlable by web crawlers. You can't search it."

http://www.guardian.co.uk/technology/2012/apr/15/web-freedom-threat-google-brin

Sun, 04/15/2012 - 23:30 | 2347735 Kobe Beef
Kobe Beef's picture

Dear GeoffreyT,

Should you read this, I'd like to say thanks for your thoughts on the matter. I wasn't aware of the Chesterton poem. It's beautiful. Thanks for posting it. Should you care, I will share my thoughts below.

The Long March through the Institutions is complete. The Institutions of Western Civilization are thoroughly corrupted, and will by necessity collapse. The Modern dogma of (enforced) Equality is a crime against Nature, and Nature will have her say, no matter the pronouncements of the parasites from their ivory towers and marbled tombs.

Like you, I wonder, how much is stupidity and how much is malice. Is the coddling degradation of the Modern Age the result of unanticipated side effects? Is it the proverbial destination of good intentions? Or is it the desired offspring of mating Mammon and Leviathan?   

The problem as I see it, is not whether their intentions are good or bad, but rather that through the overarching compulsion of the central planning state, we are all forced to participate in Phillip Dru's administrations. I never gave informed consent to participate in some dead economist's experiment. I never gave consent to participate in some credentialed sociologist's petri dish. And yet, here I am, as a member of society, subjected, in every arena of life.

So I have withdrawn my participation. I must risk my life, livelihood and the protection of society in order to maintain my liberty, decency, and principles. I have become an outlaw.

Thus I, too, view the internet as absolutely necessary for the seeding of new institutions, or better, a new decentralization of power; a network of networks, enabling the productive to survive and thrive despite the collapse of institutionalized central planning. I see in it the ability to create an adaptive, parallel society of people wishing to breathe free. I share your cautious optimism.

First we free the information, then we free the medium of exchange. Last we free ourselves and our posterity.

Sincerely Yours,

Beef

Fri, 04/20/2012 - 17:16 | 2362421 Death and Gravity
Death and Gravity's picture

I will likewise chip and and thank you for your insights, Geoff.

Sun, 04/15/2012 - 21:36 | 2347591 TBT or not TBT
TBT or not TBT's picture

You mean "pharmacist" of course.  That's the way it should have read in a study on US citizens conducted in the US.

Mon, 04/16/2012 - 03:28 | 2347971 Overflow-admin
Overflow-admin's picture

Dude, AVERAGE PEOPLE DON'T GIVE A FUCK ABOUT ANYTHING. Period. There will be much harder times before some of them wake up. Period.

 

Even my sister, who has a master degree in sociology and some good knowledge of psychology, can't grasp the big picture. Why??? Because she's locked in a social network (stupid average universitary brain-masturbating buddies) that are completely out of the subject. These people could discuss anything but the crisis; but if (when) you throw the subjet in, they just dodge / dismiss or throw an argument completely out of the subject, IN ORDER TO AVOID REALITY!

Just to give you a significant example, I tried to push the subject with only my sister and her boyfriend, and the discussion got to the point of how we manage our cognitive dissonnance, and their final argument was about how to get rid of the cognitive dissonance without losing feathers (translation may be unappropriate... french metaphour). I couldn't persuade them to get rid of their fear, because even as I exposed to them the argument that it wasn't possible (not being traumatized by sudden reality check), even as they couldn't prove me wrong, they finally just denied the possibility! And THEY DON'T WANT TO ASK ME HOW I FEEL (traumatized, yes I am) BECAUSE MY ANSWER WOULD PISS THEM OFF!!!

Average people are traumatised you say? Bullshit! People actually TAKE REFUGE in insignificant intellectual work or front of their TV TO AVOID TRAUMA THAT YOULD RESULT OF OPENING THEIR EYES AND TAKING AN OBJECTIVE LOOK AT THE WORLD IN WHICH THEY LIVE.

 

I AM FUCKING SICK OF THIS AND WILL NOT TAKE IT ANYMORE! DO NOT FORGET WHAT ANONYMOUS SAID 11:11AM 11:11PM RED PILL TIME FOR EVERYONE! HACK REALITY! TROLL THE SHIT OUT OF THE INTERNET! MAKE SOME CHANGE!

 

We are Legion. Expect Us.

Sun, 04/15/2012 - 22:39 | 2347656 Element
Element's picture

 

 

The key thing that ZHers fail to grasp, is that 95% of the public gets their financial news from the TV.Expecting them to understand that they're being hosed and gang-raped is almost unfair.

They (the 95%) are exhausted after a long day, and they sit in front of the TV and fall into a quasi-hypnotised state within ten minutes... then to be bombarded with infantile pseudo-analysis, false 'conflicts' and their equally-false 'resolutions'... and they (the 95%) have neither the energy nor the analytical skill to discern that this same shit has been sold to them, time and time again.

 

What I don't get is why they don't take one look or even one listen at this puke coming across a TV and not naturally insist on turning it off, immediately, or very soon after?

I literally feel mentally allergic to TV at this point (though I do love motorbike racing, it can't be faked, it has real skill and risks with uncompromising physical outcomes).  It is the most insane shit and is troubling that most programs can garner any audience at all, who are prepared to sit through either the programs, or the commercial 'breaks' ... breaks presumably from the shit programs.

 

Sun, 04/15/2012 - 23:56 | 2347775 hairball48
hairball48's picture

I don't have a TV anymore. Got rid of it last November and don't miss it a bit.

Sun, 04/15/2012 - 19:57 | 2347447 midgetrannyporn
midgetrannyporn's picture

Piker bitchez!

Sun, 04/15/2012 - 20:04 | 2347458 Joebloinvestor
Joebloinvestor's picture

They need to have another meeting and dine at a 5 star hotel while discussing how everyone needs to cut-back.

Begging with a Louis Vuitton bag.

 

Rub everyones nose in it while your at it.

Sun, 04/15/2012 - 20:11 | 2347469 lolmao500
lolmao500's picture

Who cares, in a month, Diablo 3 will be out!

/sheeple mode off

Sun, 04/15/2012 - 20:25 | 2347491 navy62802
navy62802's picture

Euro crash. Stops triggered.

Sun, 04/15/2012 - 20:26 | 2347495 string
string's picture

I thought Warhol was dead.

Sun, 04/15/2012 - 23:23 | 2347725 palmereldritch
palmereldritch's picture

So did he.

Sun, 04/15/2012 - 20:35 | 2347508 gatorengineer
gatorengineer's picture

Is it me or does she and Sarkozy look like like Ricardo Malteban and Hervey Villaches (rourke and Tatu).....  And look boss De Plane, De Plane, and Benny opens the door and shovels out Obamabucks.......

Sun, 04/15/2012 - 21:05 | 2347552 Atomizer
Atomizer's picture

Never forget, High heel shoes elevate power.

 

Tequila 

Broken promises can be changed by a simple dance.

 

Sun, 04/15/2012 - 20:36 | 2347509 lolmao500
lolmao500's picture

Holding up her Louis Vuitton handbag, the new managing director of the International Monetary Fund (IMF) turned to her fellow power brokers in one session and said: “I am here, with my little bag, to collect a bit of money.”

I bet that bitch has no fucking clue how economics work. She's just a figurehead and takes orders.

Sun, 04/15/2012 - 20:39 | 2347513 Eric L. Prentis
Eric L. Prentis's picture

Christine Lagarde is just a bankster tool.

Sun, 04/15/2012 - 20:56 | 2347538 Seize Mars
Seize Mars's picture

I think she's kind of hot in a weird way.

Sun, 04/15/2012 - 21:03 | 2347548 chump666
chump666's picture

haha

Sun, 04/15/2012 - 21:37 | 2347594 TBT or not TBT
TBT or not TBT's picture

weird indeed

Sun, 04/15/2012 - 20:56 | 2347537 Element
Element's picture

Can we have DSK back? ... he was a bit easier to ... satisfy.

Sun, 04/15/2012 - 21:05 | 2347550 chump666
chump666's picture
  • Rise in USD index on Fri suggests higher USD/CNY fix 
  • However, market positioned for a lower USD/CNY fix after band widening AUD, EUR selling driven by view of less need for diversification

China messing around again.  Smell that?  That's the equity correction from hell coming and USD bids.  Volatility, confusion and chaos as everything falls apart.

Sun, 04/15/2012 - 21:09 | 2347556 alfred b.
alfred b.'s picture

 

   It all comes to a  point:   so many pigs and so little lipstick.

 

 

Sun, 04/15/2012 - 21:14 | 2347564 xcehn
xcehn's picture

"Money might “make the world go ’round”, but it’s not going to stop the eurozone from breaking apart. That’s the lesson investors learned on Tuesday when global stock markets plunged on news that yields on Spanish and Italian debt had again entered the red zone. Stocks rebounded on Wednesday, but to little effect, after all, the cat is out of the bag. Now everyone knows that the European Central Bank’s 1 trillion euro ”adrenalin rush” (Long-Tern Refinancing Operation or LTRO) is a short-term fix that won’t relieve the debt troubles of struggling countries in the south or even reduce the prospects of a vicious credit crunch in the second half of the year. (As of Friday morning, Spanish 10-year bond yields are back in the nosebleed section, 5.92 percent, a rate which most economists see as “unsustainable”.)"

http://www.counterpunch.org/2012/04/13/spain-marches-toward-a-depression/

Sun, 04/15/2012 - 22:15 | 2347577 Element
Element's picture

 

Just gotta love this. Our long-suffering record-profit making big banks in Australia just got the political cover from the next national federal govt (and they will be), to gouge out the australian debt slave even more, for no justifiable reason whatever:

 

--

Robb backs ANZ rate hike
 
By Samantha Hawley and staff - Updated April 16, 2012 10:17:39
 
Federal Opposition finance spokesman Andrew Robb has come out in support of the big banks raising rates outside of the Reserve Bank's recommendations.
 
Late on Friday, ANZ Bank announced it would raise its interest rates this month, becoming the first of the big four banks to move after the RBA left the official cash rate steady.
 
Treasurer Wayne Swan has condemned the move, saying ANZ customers should be upset given the bank's massive profits.

 

Do you want to know more?
http://www.abc.net.au/news/2012-04-16/robb-backs-big-banks27-rate-hikes/...

 

And that is what you get when there is no longer a PUBLIC DEPOSITORY OR TRADING BANK that's there to force the private loan sharks to behave and COMPETE for deposits and loans without endless gouging and entrapment.

Thank you Australian Labor Party for destroying (privatising) our very own PUBLIC BANK (the only one that needed to be guaranteed by physical backing of public assets) in the mid-1990s, leading to this complete lack of any real banking competition or ability to rein them in, since this was done to us, at private bankster behest.

So now we'll have to re-nationalise ALL of them ... once they have finished totally fucking us up, and stealing everything in sight.  And after they destroy the public finances and credibility of the country and currency. 

And who hatched this plan to sell our public bank?  None other than former Finance Minister and multi-time Prime Ministerial aspirant, the right honourable Kim Beazley. 

And the rationale for this act of public finance vandalism? 

Paraphrased: "The Govt has no place running banking institutions and we have to pay for our spending and budget deficit's huge black hole".

And now Kim Beazley just happens to have become Australia's ambassador to USSA.

It's good to be a bankster lickspittle, a traitor to the little-people ... eh Kim old-boy? 

That's how you destroy a rich country ... from within ... now the banksters can ruin us wthout any financial competition or political obstacles.

And they are doing it, see this ABC Four Corners Report from last week: 

 

Happy Banking?

By Deb Whitmont and Janine Cohen

Updated April 10, 2012 15:51:00 

Transcript

http://www.abc.net.au/4corners/stories/2012/04/05/3471045.htm   

Video 

http://mpegmedia.abc.net.au/news/fourcorners/video/20120409_bankwest_180...

 

Sun, 04/15/2012 - 23:00 | 2347689 theTribster
theTribster's picture

Disgusting it is and exactly what happened here in the USSA.

In the 90s, Clinton signed a treaty (forget the name) that included the IMF, WTO, WB and others that effectively gave away our ability to regulate or legislate the financial services industry - very specifically puts them above and outside the law. The agreement/treaty is incredible in its language, blatent about its intentions and even goes as far as saying that NO law or regulation may be put in place that negatively impacts the financial services industry in any way, shape, or form. I read this a couple of years ago and it freaked me out - literally. Wish I could remember the name, Clinton was the signer of ours - you should be able to find it if you feel like Googling a bit :)

I expect that your gubmint as well as most other gubmints signed a similar agreement/treaty, just tailored enough to describe the specific governmental structure it would be manipulating (destroying). All for the purpose of basically guaranteeing the financial services industry could do literally anything it wanted without regard for the law! I'm still amazed when I think about what that really means! It only took about 15 years for them to completely rob America of everything we had, have and will have for the infinite future!

That treaty is why nobody is charged with crimes, even though everyone knows for a fact that crimes have been, were and still are being committed on a massive scale absolutely everywhere in the industry! Its truly incredible my friend, if this is your first whiff of the stink coming your way, I recommend you get yourself a comfortable clothespin because it is going to get much stinkier from here. At this point, they are experts at getting all your countries wealth very quickly, the housing market is a key place to do that.

Since we are a little ahead of you in terms of being fucked, let us be your proxy for what is coming. I just look to Europe because they are a little further down the road than us so I'm pretty confident we'll be just as crashed within a day or two of the inevitable European meltdown. In the end, we all end up at the same place - debt ridden balance sheets held by countries that no longer exist as sovereign nations but shells to collect and pay our masters - the banksters and the corporatocracy.

It won't be long before politicians are eliminated entirely only to be officially replaced by the corporatocracy, I think they might call this fascism but it couldn't happen here, at least not in America I can't speak for Australia. Good luck ridding you country of the parasites, its extremely difficult to do. The last time America was without  a central bank was 1912, the current iteration came into existence in 1913 (and introduced "taxes" the next year) and has been destroying the dollar ever since. It hard to imagine what America could have been over the last hundred years without a Federal Reserve Bank...

Again, good luck to you and the great country of Australia! We stand united against the bankster scum...

Sun, 04/15/2012 - 21:39 | 2347599 itstippy
itstippy's picture

This is great!  I've been jonesing for Euro Crisis Part 7 to get underway. 

Von Rompuy needs to get the ball rolling by calling a big summit at some exotic location.  Merkel and that jovial Greek Finance Minister (Vuvuzela?) can drum up buzz with a couple press releases.  Sausage The Riot Dog can make guest appearances in Madrid and Milan.

This is shaping up to be another super season of Can't Miss ZH!

Sun, 04/15/2012 - 22:21 | 2347641 Wakanda
Wakanda's picture

I'll watch just to see Sausage dodge tear gas and bark at the riot cops.  Sausage can bark in both Spanish and Italian!

This is gonna be great!

Sun, 04/15/2012 - 21:47 | 2347605 vintageyz
vintageyz's picture

To Sarkozy and Lagarde:  ce qui, dans foutre vous ne comprenez pas?

Sun, 04/15/2012 - 21:52 | 2347610 q99x2
q99x2's picture

Now what's she hiding in her throat?

Sun, 04/15/2012 - 22:32 | 2347652 delacroix
delacroix's picture

an adams apple?

Sun, 04/15/2012 - 23:51 | 2347764 Zero Govt
Zero Govt's picture

a love bite from Ben Bernanke

Mon, 04/16/2012 - 00:27 | 2347819 alfman
alfman's picture

yep!

she definetely is trans-gender.

Sun, 04/15/2012 - 21:55 | 2347614 in4mayshun
in4mayshun's picture

WIthout a doubt Europe is finished. It'll be fun to see Obama squirm this summer to keep the US economy from doing the same thing before November.

Sun, 04/15/2012 - 22:17 | 2347637 oogs66
oogs66's picture

Begging in Hermes is so much more classy

Sun, 04/15/2012 - 23:53 | 2347770 Zero Govt
Zero Govt's picture

yes a whole new twist on a begging bowl that Louis Vitton bag

French have style, gotta give em that

Sun, 04/15/2012 - 22:21 | 2347640 theTribster
theTribster's picture

How relevant is Sarkozy really? Is it going to matter if Hollande wins? I don't think so. It will change the Merkozy dynamics obviously but won't make any difference in the overall scheme of things. I guess it will make the French feel better for a littler (very little) while.

The IMF is impotent and trying to raise money under these circumstances is of course ridiculous but par for the course. Let's get Japan to commit to help bail out Spain? Wait, how about we ask the Canadians and the Australians as well, they can print money - perfect! Greece and Portugal should help out too, after all they got help and its only fair.

Sounds like the Europeans could take some lessons from our man in the big house, Obama. They could use the whole "fair share" line and go after the rich, I'm not sure but being led to believe that here in America its going to make a HUGE difference, help make everything allright it will. Mr Buffet, Thanks. 

Just last week she said that Italy is making huge progress and she wouldn't bet aganist them (please don't short the Italian bond market) because Monti is the man! She is an expert at playing these games, I expect that she will skillfully navigate the terrain and position IMF exactly as it should be, whatever that turns out to be.

I'm expecting this to be a pretty big week in Europe, maybe the biggest in a few years! As everyone knows, this all depends on Germany. As long as they continue to play the Euro zone has a chance, most believe (not me). The reality is Germany still hasn't deleveraged their banks, that' ain't good.

The German people will be freaking out and demanding that this not happen, Angie "Picture of Auterity" Merkal will have to bow to their wishes, at least I think so. Regardless, hints of Germany leaving will get much stronger this week, should provide for some very interesting positioning and politisizing to watch/hear/read.

Short positions in the EuroBond market, the Euro currency or any of the Euro banks probably continues to be a good trade - to say the least. Out of curiosity, if you are positioning against the Euro this week how are you doing it? The forex market, ETFs, ETNs, short the bank stocks, short the bond market?

Historical week coming to Europe, that's my Sunday night headline.

 

Sun, 04/15/2012 - 22:49 | 2347675 CryingBear
CryingBear's picture

Me no understand. Why can't ben print euros to pay off piigs debt?

Sun, 04/15/2012 - 23:25 | 2347724 Zero Govt
Zero Govt's picture

"..a/k/a the shark can not stop moving forward.."

aka the crumbling Govt/Bank debt monster must be continually fed

.and as per our  history lesson, it will gobble, gobble, gobble economies, all pirvate sector productivity and entire nations unless it's stopped stone cold dead

Stop Paying Your Taxes

...don't feed the monster

Mon, 04/16/2012 - 00:15 | 2347798 yogibear
yogibear's picture

Europe's dog and pony show. What a usless buch of leaches.  Zero value added by Sarkozy and Lagarde.

What's surprising is the citizens of the PIIGS and France haven't rounded up these politicians and fed them to the sharks.

Mon, 04/16/2012 - 01:42 | 2347888 20-20 Hindsight
20-20 Hindsight's picture

This won't happen soon enough as far as I'm concerned.  Bring on the global revolution!

Mon, 04/16/2012 - 06:51 | 2348047 falak pema
falak pema's picture

hey, their zero value is Zilch, but the USA's NEGATIVE value to the world is unmeasurable; get your calculator out! And learn to tell negative from positive and from zero. 

Mon, 04/16/2012 - 00:20 | 2347809 vote_libertaria...
vote_libertarian_party's picture

So this past week the Fed reminded everybody they make PROFITS from bailouts.

Then Christie Lagarde is saying they need a smidge more cash for bailouts.

Then Timmay is everywhere today saying things are getting better.

 

So when do we get the sales pitch that the US should give the IMF $1T...after all...we turn profits on this stuff.

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