The European Bailout-And-Borrow Train Has Run Out Of Track

Tyler Durden's picture

The first instinct of any card-carrying Eurocrat is to reach for his wallet, or as clear-thinking MEP Daniel Hannan points out, someone else's wallet. His prophetic words with regard the bailout-and-borrow bandwagon, that Europe remains on, running out of track are so critical that they bear repeating as he remains incredulous that his fellow MEPs still see the one solution to a debt crisis as yet more debt...

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bank guy in Brussels's picture

We are close to the end of Merkelism and this German EU-supervision nonsense. The revolt is already underway; Ambrose Evans-Pritchard in the UK Telegraph is describing it pretty well.

We are past 'Peak EU' which was perhaps 2010 or so. With the Spanish revolt and others about to join, including likely France after Hollande wins the upcoming election, Merkelism will soon be finished.

They have temporarily pushed this thing onto the Greeks because the Greeks feel vulnerable in that far corner, so close to all the sh*t going on in the Middle East and Asia.

But it won't work in Western Europe, where the people-in-the-street revolutionary spirit will back rebellious governments. The anti-EU sentiment is building here in the Low Countries too.

The EU will become more as Nigel Farage and Daniel Hannan see it - a trade etc. association, not a violation-of-sovereignty machine.

Rip van Wrinkle's picture

You jest, of course. The vast majority are completely and utterly unaware of what is about to be done to them. They simply don't care. They're stupid. They've been brainwashed. Western Europe is no different from the US.


DavidPierre's picture



The world is saved!

Greece is bailed out!

At least for today.

Everyone is so busy running on the gerbel treadmill just to stay afloat that they miss what is most important.

Maybe this is the problem... everyone is so broke, they can't even pay attention.

But the market is already discounting the new bonds that will be issued. Lo and behold! We see an inverted yield curve and interest rates over 20%. So before the ink has even hit the paper, the marketplace is making odds on a second default? This shouldn't really be a shock. We have already seen this with General Motors, AIG, Citi, Bank of America etc. but no one is paying attention.

News has come out of rumblings amongst the German people and Swiss to audit their Gold holdings held both at home and abroad. This thought process should not be a shocker. Certainly logical ... given the global fraud now consistently taken for granted.

Much of their Gold is held at the NY Federal Reserve. It will be interesting to see what an audit produces if/when one is even done. It will also be interesting if/when this sentiment begins to spread to other nations.

We are now 15+ years into a gold supply deficit that has averaged 1,500 tonnes/year. Physical supply 2,500 tonnes/year ... and not growing even with current prices ... while demand has been 4,000 tonnes/year and growing. These demand numbers are probably underestimated as giant Chinese demand is barely accounted for and even surprised the bean counting clerks at GFMS and the World Gold Council.

This supply deficit has now been going on for quite some time. Just do the math!

1,500 tonnes/ year for 15 years equals how much? 22,500 tonnes. The central banks are purported to hold how many tonnes collectively? 32,000 tonnes?

Ask the logical question! Where does this supply deficit come from?

From scrap? Ever wonder how much scrap can be delivered by giddy housewives selling their Gold at their local mall's 'Cash for Gold' rip-offs?

The supply deficit has lasted quite some time. Frank Veneroso's numbers, from early last decade show that we must be somewhere close to the bottom of the gold barrel.

"Quite some time" it has been hasn't it ...don't forget! The CFTC is conducting a vigorous audit of the Silver market ... for 4 fucking long years! 

Some perspective.  Any branch manager for a retail broker is subject to a surprise audit at any time and naturally an annual audit. Everything is looked at; every transaction, every check into and out of the office, communications, advertising etc., everything. There is a paper trail for anything and everything that is done today.

There cannot ever be a situation where money just evaporates like happened at MF Global. It was stolen.

Every single trade on every single exchange for over the last 20 years can be accounted for today. If a regulator wants to see all the trades, for say IBM, that occured on a day 12 years ago ... no problem. You want to see all of the soybean trades from a couple months ago? No problem!

You want to see all of the trades, who did them, in what size, over what time frame, were they limit orders, market orders or whatever? No problem whatsoever! Unless you are talking about MF the Silver market.

The CFTC investigating Silver ... a fucking joke.

All they need to do is go back and pull all the trades from any day ... or consecutive days where waterfall action took place. Who were the big sellers, did they try to maximize their sale price or did they dump millions of paper ounces as sloppily as they could? After you do this, look for another waterfall day ... plentiful as you know. Do the investigative process again. Are the sellers the same? Pick a third day and so on. Easy as pie! But no, we are going on 4 fucking years and what do we have?


The silence is deafening. At least they hope!

americanspirit's picture

Hi Rip VW - I think you'll find that Bank Guy in Brussels is right about Europeans taking to the streets and backing rebel leaders. Western Europe is not the US - they have been through multiple wars in living memory that destroyed their economies and societies, they have seen what dictators can do, and they have had plenty of experience with bringing down bad governments. Western Europeans are completely different from Americans - and from each other too, of course. I have great faith in the ability of Europeans to take back control of their destiny - unlike Americans who are, by and large, brainwashed sheep. Oh and something else - unlike American police and soldiers, European police and military are generally reluctant to shoot citizens who are protesting because they know if they do that the mob will attack and overwhelm them. In the US a few rounds of tear gas and everyone runs boo-hooing off to their mommy.

moneyline's picture

You underestimate American's taste for violence. The people at the Occupy movements are yuphippies. If things get as bad here in the States as they are in Gypsyland we would have a civil war on our hands that would make the Greece riots look like a game of dodgeball. Of course our military and police would come down hard on the perps, but there will be blood.

eatthebanksters's picture

If social unrest breaks out in the US and gets to the point where it spreads across the country with violence in major cities, the police and the military will pull back until the worst of the fighting is over and things simmer down.  That is the official plan and don't ask me how I know.  They (police and military) understand that in a confrontation which spreads nationally that they are overwhelmingly out manned and out gunned, even with superior firepower.  Just remember what they did during the Rodney King riots in LA...redux, just on a larger scale.  If you live in the cities, either be ready to get out in a hurry or have a group you can huddle with that has food and firepower.

Transformer's picture

Yes, and I do hope this thing with the guns can be worked out peacefully.  I think if the president was to nationally announce the clear need to retrieve all the guns, in a openly stated message that underlines our need for peace and non violence, that Americans would go along with it, willingly.  After all we do not need violence and killing.  Civil war is not the answer.  It's obvious that the politicos have gotten slightly out of hand with some of the bills being passed lately, but our most cherished institution, free and open elections will set that all straight in Novermber.  The democratic process has worked admirably in the past and will keep this country strong and free for many years to come.

Nussi34's picture

So Eurobonds are such a smart idea (=pooling of debt) why don´t we try pooling of means of production? That must worl well too! OOps some have already tried this before!

ilion's picture

I guess it's all really bullish. Gonna buy stocks with all my money I have left once the markets open on Monday. I'm being ironic.

jwoop66's picture

You either don't have a /sarc key or you don't own any guns.



"from my cold dead hands!"

BigJim's picture

Hmmm. Is this a new MDB?

LowProfile's picture


Of course our military and police would come down hard on the perps

Maybe at first.  But if the perps are their friends and family?  I'll take the under on that, thank you very much.

LawsofPhysics's picture

There you go.  America still has a volunteer military force.  One that is very much awake and standing behind Ron Paul.  They will let the weekend warrior riot police rush in first, but should friends and family get caught in the cross fire, no fucking doubt precisely who the members of the military will fire upon.


BigJim's picture

The US military will do what soldiers almost always do - obey orders.

I wish it were otherwise, but I very much doubt US soldiers are any more moral than any others throughout history.

By definition, if you join an army that has fought a score of wars in the last 60 years, none of them defensive, you aren't particularly worried about murdering people... if your officers tell you they're really, really bad people and need to die for the collective.

FlyoverCountrySchmuck's picture

Occutards are puzzues...

Outside of the very few hard-core University Marxists, the Mentally ill, and the homeless, it's a bunch of useful idiot kids who think it's "Cool!", because MSNBC told them it was.

When they realized they might actually have to LIVE like this, and daddy cut off the allowance and credit cards, the occutards disappeared as fast as they showed up. I saw several of these demonstrations in person, and I never laughed so hard as I did at the obviously college-kid idiot at "Occupy Fremont Street, with the "DOWN WITH CAPITALISM!" sign, wearing a Diesel shirt, designer jeans, and nikes, posting pics of himself in the demo on his iPhone.

Talk about somebody that doesn't get it!


moonman's picture

Don't ever underestimate the will of the American citizens. Plus we are armed to the teeth

jwoop66's picture

At what point of European history are you referring?   Plenty of revolutions, sure, but when have they ever been replaced with something better? They are all Socialists, and going broke!  You ever read any articles on ZH about Europe?   The continent has been populated since the dawn of civilization and yet today does not have a govt as old as the US.

In the US so far, whenever teargas is used it is against OWS types and rioting racial groups.  Yeah, they scatter.  When Joe Sixpack gets gassed there will be hell to pay. 

RSDallas's picture

I tend to agree with you RIP.  I keep telling myself that this new digital age is going to be the catalyst that educates the millions of people who lack the knowledge of how we have and are being screwed.  My only fear is that the youth of America say ages 16-30 have been seriously misled to the point that they believe they truly believe that the Government is in fact the only solution to even their basic needs.

MillionDollarBonus_'s picture

I have seen many libertarians naively criticise and disparage the idea of "bailing out" large financial institutions. This is very devious, as on the surface it appears to make sense to many well meaning Americans. However, with a little more thought it is perfectly obvious that tax payers actually benefit from this transfer. To quote Hank Paulson (former US treasury secretary):

"As first responders to an unprecedented crisis that threatened the destruction of the modern financial system, we had little choice but to bail out the banks" 

It is an inconvenient truth to libertarians, doomers and other crackpots that modern interventions (or bailouts) are in fact a necessary and powerful economic tool for maintaining a healthy and stable economy.


MsCreant's picture

You must laugh your ass off writing this shit! To tears. Aneurysm even.  

CompassionateFascist's picture

U have to admit it's beautifully done. Even tho U know its just provocation, U cannot resist hitting that red arrow. There are mock turtles, and mock trolls.

mkhs's picture

Yeah, Pavlov's dog  and Pavlov's monkeys with keyboards.  Every time he posts, you can't help yourself.  He controls the thread for the next 100 comments thanks to Pavlov's monkeys with keyboards.



MsCreant's picture

Lighten up. I figure those who answer or hit a down arrow are working through stuff. That is what this site is for. Tyler could be doing it for all we know, grist for the mill.

mkhs's picture

It just saddens me to see so many free thinkers diverted and manipulated by this Pavlovian trick.  ZH's equivalent of Dancing with the stars.  Carry on, then.

Nobody For President's picture

I have had that thought as well - it's a Tyler spicing things up - but lately it has become a bit too heavy-handed. The earlier posts were really good; right on the edge of 'is he for real?' But lately he has started putting it on a bit too thick - but still good enough to hook new newbies (I'm getting on to being an old newbie.)

Still could be a Tyler though. Needs to dial it down just a tad...

mkhs's picture

I prefer to believe it is not Tyler.  What would be the point in posting the articles and then confusing, distracting, and diverting the conversation?  It is more in line with disinformation and spam: hiding anything of value in an avalanche of partisan rebuttal. 

MsCreant's picture

And of course, if it is a standard troll, we just dished up some good grub with the speculation. 

I think the troll puts good thought into trying to reconstruct what, possibly, could be a pro system stance. It comes close to hanging together as an coherent logic system, but not quite.

Stackers's picture

No what it is an inconvienent truth to libertarians, doomers and other crackpots that modern interventions are in fact a necessary and powerful economic tool for maintaining a SICK FRAUD OF A FINANCIALIZED ECONOMY BUILT ON NOTHING BUT PAPER DREAMS AND FANASTIES BEING PASSED AROUND AS WEALTH AND PRODUCTIVITY.


Fixed that for you

imaginalis's picture

I would love to cook you and Joann Smith a nice half pound pink slime burger medium well

Reese Bobby's picture

Exactly.  All my charitable giving goes to JP Morgan.

cosmictrainwreck's picture

"...libertarians, doomers and other crackpots..." LMAO.... guilty as charged, ass-wipe

GernB's picture

Your assertion would seem to be that it is impossible for any scheme whatsoever to protect someone un-involved in doing business with a bank from the actions of that bank and the people it does business with. Or to protect the people without protecting the banks. I'm sorry, but that's just crazy. The inconvient truth is there's a "one world" crowd who doesn't want people to be protected from each other because it weakens the case for larger and more powerful governments and institutions. They are not looking to protect anyone, they want people to be dependent.

They see regulations designed to protect people from irresponsible bank lending as a threat to "affordable housing" initiatives and their ability to bribe taxpayers with promises of an "ownership society" where everyone can own a house. So they take down every regulation, law and barrier that stands in their way until they';ve built a system where massive numbers of bad home loans are being bundled into derivatives and funneled into wall street as if they were triple 'A' rated investments. Those people who saw it comming and warned of it years before were called crackpots and doomsayers just as you are doing now. Then when this government created nightmare all falls appart, the creators of the mess tell us "there was nothing we could do." And have the gall to blame their corruption, incompetence and interference in housing markets on "wall street greed."

They are actively seeking to tear down protections because the allow people to stand on their own feet. It's the only way they can solidify their power and sell the idea that it's not possible to protect one person from another.

eatthebanksters's picture

There is actually some wisdom in your words...what you left out was the part where the systemically (sp?) dangerous institutions need to be broken up (damn the lack of competitiveness on the world stage) and where the crooks that got us into this mess need to face justice in front of a jury of their peers.  Only then will financial security and stability return. While the game is rigged only fools and indentured servants will participate.  My guess is when the shit hits the fan, you'll be one of the assholes getting stomped by your ungrateful and ignorant minions.

CvlDobd's picture

You need a vacation bro. I used to upvote you all the time because I thought your shit was hilarious. It hasn't grown stale but thin. You need to regroup and come back with the SUPER THICK sarcasm that got the dumbass members here all hot and bothered.


Those were the good old days.

MolotovCockhead's picture

You must be more ignorant than a retarded toad to quote Hank Paulson to convince ZH readers! The same crook who gave himself a waiver from the ethics agreement on the Goldman Sachs shares deal and pocketed $200 million without paying any tax for it.

MeelionDollerBogus's picture

can you inconveniently supply the benefit, quantified in dollars earned, or quantified in jobs, or quantified in savings for the tax-payers?

Taxes didn't go down, costs of living didn't go down, debt did go up, savings did go down, jobs did go down, so where is this benefit?

There is no promise of return of the money much less promise of a gain. There is no consent so the reduction up-front to tax-payers is theft. There's no legal obligation to get a profitable return from the bailout. There's no way to collect on those companies when they go bankrupt.

So just what kind of troll-job do you think you're pulling here? At least try to think through the details if you want to be a pro-troll instead of a noob-troll, mini-B.

So far that I can see the modern financial system gives no benefit even at top-capacity of operations to all the tax-payers and it's certainly operating in WORSE conditions, costing more than normal, returning less than normal, and "normal" returns were a loss due to hidden fees & loan frauds.

Just what kind of game are you playing at?

q99x2's picture

How's bout going after the few top families that have terrorised the world and stolen its money and save yourself the trouble of a revolution this time.

Anyhow you're going to be gettin a dose of drone soon to put a little peace in your protests. That should keep you quiet if you do decide to go the wrong route.

LowProfile's picture


Anyhow you're going to be gettin a dose of drone soon

What frequency does that broadcast on, again?

Stackers's picture

And "eurocrats" will go down kicking and screaming and pull every punch in the bag to keep that from happening. The Euro project as a whole is and was always just a means to an end for those people. One World Democratic Solicialism. They will not give up on this dream easily. They infest the upper levels of society, government and education. This is going to be a long struggle to denie them of that utopian dream.

Gunther's picture

Bank guy,
even in Germany the current EU gets questioned.Today there was a damning piece about the EU describing it as undemocratic and incompatible with Basic Law in Germany.
The piece was in moderately right daily “Die Welt.”
Link in German:

AnAnonymous's picture

The revolt is already underway; Ambrose Evans-Pritchard in the UK Telegraph is describing it pretty well.


A revolt against what?

US citizen Indo-Europeans support going deeper into debt.

US citizen economics is not sustainable. US citizen economics aim at the depletion of resources.

Debt can not be repaid in a non sustainable environment.

US citizens are consuming the future, knowing the future will not show up as a reset, as a restart.

What is going on is very simple:
US citizens are maxing out the credit cards while they know their mall wont be resupplied.

Useless to think of repaying debt.

rbg81's picture

How about a European revolt against giving welfare benefits to hordes of Muslim immigrants who are slowly taking over their countries?  The warped notion that these people will become productive, tolerant, democracy-loving citizens should have dispelled long ago.  Of course, Political Correctness forbids the application of observation and common sense to any situation involving anyone other than White males.  Europe had better get its head out of its ass before its too late to stop the its own suicide.  Actually, it probably is too late already.

AnAnonymous's picture

They are doing it very, very,very slowly, if they do it.

The idea of Indo Europeans revolting against the muslim populations slowly taking over is amusing.

That would be an atypical revolt indeed.

rbg81's picture

When I say revolt, I mean revolt against the Government elite and policies that are ensuring that Muslims will be in the majority.  Once in the majority, Europe will be theirs.  And their will be plenty of Indo-Europeans more than happy to be their bitches and collaborators.

jwoop66's picture

You can say "shit" here; we're all ZH'ers.