"The European Financial System Is Finished" In Quotes

Tyler Durden's picture

When it comes to European bureaucrats, the easiest way to determine if they are lying is whether or not their mouths are open. Yet there are those rare occasions in which even the most hardened of liars let one slip. The Economic Collapse, always the master of compiling impactful bulletins, has prepared a list of just such "slip" quotes that "are absolutely shocking.  In Europe they openly admit that the financial system is dying, that the euro is in danger of not surviving and that the EU does not work in its present form." In other words, ignore the ceaseless headlines of promises that all shall be well. Because it won't. Here is all you need to know about the imminent end of the Eurozone, straight from the horses' mouths.

From the Economic Collapse:

The following are 20 quotes from European leaders that prove that they know that the financial system in Europe is doomed.... 


#1 Polish finance minister Jacek Rostowski: "European elites, including German elites, must decide if they want the euro to survive - even at a high price - or not. If not, we should prepare for a controlled dismantling of the currency zone." 


#2 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Under the current structure and with the current membership, the euro does not work. Either the current structure will have to change, or the current membership will have to change." 


#3 EU President Herman Van Rompuy: "The euro has never had the infrastructure that it requires." 


#4 German President Christian Wulff: "I regard the huge buy-up of bonds of individual states by the ECB as legally and politically questionable. Article 123 of the Treaty on the EU’s workings prohibits the ECB from directly purchasing debt instruments, in order to safeguard the central bank’s independence" 


#5 Deutsche Bank CEO Josef Ackerman: "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels." 


#6 ECB President Jean-Claude Trichet: "We are experiencing very demanding times" 


#7 International Monetary Fund Managing Director Christine Lagarde: "Developments this summer have indicated we are in a dangerous new phase" 


#8 Prince Hermann Otto zu Solms-Hohensolms-Lich, the Bundestag's Deputy President: "We must consider whether it would not be better for the currency union and for Greece itself to go for debt restructuring and an exit from the euro" 


#9 Alastair Newton, a strategist for Nomura Securities in London: "We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis" 


#10 Former German Chancellor Gerhard Schroeder: "The current crisis makes it relentlessly clear that we cannot have a common currency zone without a common fiscal, economic and social policy" 


#11 Bank of England Governor Mervyn King: "Dealing with a banking crisis was difficult enough, but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there's no backstop." 


#12 George Soros: "We are on the verge of an economic collapse which starts, let's say, in Greece. The financial system remains extremely vulnerable." 


#13 German Chancellor Angela Merkel: "The current crisis facing the euro is the biggest test Europe has faced for decades, even since the Treaty of Rome was signed in 1957." 


#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe." 


#15 Professor Giacomo Vaciago of Milan's Catholic University: "It's clear that the euro has virtually failed over the last ten years, even if you are not supposed to say that." 


#16 EU President Herman Van Rompuy: "We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union." 


#17 German Chancellor Angela Merkel: "If the euro fails, then Europe fails." 


#18 Deutsche Bank CEO Josef Ackerman: "All this reminds one of the autumn of 2008" 


#19 International Monetary Fund Managing Director Christine Lagarde: "There has been a clear crisis of confidence that has seriously aggravated the situation. Measures need to be taken to ensure that this vicious circle is broken" 


#20 German Chancellor Angela Merkel: "The euro is in danger ... If we don't deal with this danger, then the consequences for us in Europe are incalculable."


Most of the individuals quoted above desperately want to save the euro.  They are not going to go down without a fight.  The overwhelming consensus among the political and financial elite in Europe is that increased European integration in Europe is the answer.

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unky's picture

Who cares when you have a shitload of PMs stacked ^^

Nate H's picture

billions of others...

unky's picture

No, billions of others obviously dont care. Because if they cared, they would stack PMs and not worry about it.

Medea's picture

Argumentation at its not finest.

Comay Mierda's picture

i try to convince everyone i know to buy PMs & stock up on necessities (including guns + ammo) and most just look at me like a deer in the headlights and go back to watching cnn and all the other presstitute networks.  i hope ppl wake up.

on a side note - i think we will see some type of false flag terror event very soon to take the sheeples' attention off of govt corruption/economic craziness and focus on some new "threat"


unky's picture

yeah, maybe on the 10th year anniversary of 9-11.

markmotive's picture

If you aren't already, don't become an indentured servant to your creditors. Because that's what it could come down to.


narapoiddyslexia's picture

I don't have any debt, but I do have some questions.

What happens to the dollar if Europe coalesces into a policy, fiscal, and monetary union?

What happens to the price of gold, in dollars, if Europe coalesces into a policy, fiscal, and monetary union?

What happens to the price of oil? Will it be repriced in euros?

Nate H's picture

"What happens to the dollar if Europe coalesces into a policy, fiscal, and monetary union?"

For those who see the ultimate end game here, that scenario would buy a few years for social/supply chain preparation.


"What happens to the price of gold, in dollars, if Europe coalesces into a policy, fiscal, and monetary union?"

That depends partially on whether it is backed by gold or whether it is accompanied by creative rules (and believe me we hominids can be creative) on owning/spending gold/silver.  But barring such rules, gold will go higher, as the only way a Federation can pay the bills is with more guarantees and expansion of government/central bank balance sheets.

"What happens to the price of oil? Will it be repriced in euros?"

Oil will be priced at the marginal barrel, which largely depends on global economic growth. Even if Europe is able to 'Federate', global economic growth is largely over, at least in real terms, if not nominal. Oil, barring some geopolitical situation will go lower in price until depletion rate exceeds ecnomic decline rate sometime in next 3-5 years - though I could easily argue that economic decline rate will exceed oil decline rate and despite passing world peak in production we have $30 oil for a decade.  (I expect many, if not all, to disagree.)



Almost Solvent's picture

"increased European integration in Europe is the answer."


What the fuck does that even mean?


Americans for America!



AldousHuxley's picture

Europe experiencing what US experienced end of year 2008.


forget gold....short euro banks till the last drop

Withdrawn Sanction's picture

What happens to the dollar if Europe coalesces into a policy, fiscal, and monetary union?

You mean the same blood-soaked continent that's been at each other's throats for centuries is going to double down on even deeper unification?  That Europe?  Thanks for the laugh.  That's a good one.

caerus's picture

exactly...what happens if monkeys fly out of my ass?

Left Right Wrong's picture


World Bank Development Research Group - "The Impact of Economic Blogs" - David Mckenzi & Berk Øzler. August 2011



Is no one here as cool as they think?


caustixoid's picture

Seriously?  you link to an "academic paper" from a useless organization (World Bank) about useless bloggers (Krugmann, Mankiw) and their useless effects?   Is this just a lazy dig at ZH'ers or is there some point? 

dark pools of soros's picture

What strength level of Depends will restrain monkeys flying out of ass?

TeamDepends's picture

Thanks for asking.  You will certainly need to employ maximum strength ChastiDepends- "Nothing goes in or comes out".

eureka's picture

In the EU there will be bank haircuts - and there will be fiscal controls.

EU will prevail. This present article's quotes are rhetoric aimed to produce EU discipline.

US spends more than twice the energy per capita than EU.

US has far worse tade balance and debt than core EU nations.

US has horrible infrastructure, education and income gaps like a banana republic.

US social strucure is crumbling and 2012 GOP victory wil cremate 80% of US'ians with austerity.

US/USD/Empire will collapse - beginning Q1/2012 and culminating in 2013.

Sleep tight, US'ians.

jdelano's picture

And you think what--europe will flourish while the u.s. Goes down in flames. Har. When uncle Sam dies his little dog Europe will be buried alongside him.

Ahmeexnal's picture


Sharia law across the caliphate of Eurabia.

Lord Koos's picture

And Christian law in the US.

FeralSerf's picture

Nobody flourishes. America becomes a Chinese colony.

Shirley Wilfahrt's picture

Amerikka might....but I'm confident there are a lot of Americans willing to tell Amerikka....and China....to go fuck themselves.


How that works out??.....probably badly....there will be blood.

In the end?

Nothing changes bitchez.



Léonard's picture


Europe don't need Uncle Sam. Eurasia is already on its way.

Hey, German people ! It's time to dump the USSA and take delivery of your gold.

Hobbleknee's picture

Europe don't need Uncle Sam.

Except for self defense.  What happens to their budgets when the US withdraws all its bases?

Silver Dreamer's picture

That's a wonderful idea.  Take your shitty cars with you too, and sell them to the Chinese instead.  Oh, and we'll withdraw our forces entirely, and let's see how well your economy reacts.  har har

sun tzu's picture

EU core nations....that is why EU will fail. Why would the core nations want to subsidize the lazy lifestyle of Greeks and Italians? They won't.

Different languages, cultures, and thousands of years of hatred and distrust in EU. A bunch of douchebag bankers can't make all of that go away. That is why they are trying to replace the native populations with Arabs, South Asians and Africans. A brave new world of misery for the remaining Europeons.

twotraps's picture

That sums it up.  Levels of hatred and distrust we cannot understand in the US.  State rivalry is not the same at the Country level.  Will Germany ever let a few guys in Brussles decide anything of importance?  If you have time, check out the book Paris 1919, its about the Treaty of Versailles and all the normal things that happen when a bunch of countriies get together and are subject to Decision by Committee on important issues.    The main difference today is that Germany is the strongest country!!!!!!!   

FeralSerf's picture

An excellent book!  American, ie Wilson, with his high minded ideaology and the French with their need for revenge and money (lots of it), the Brits with their desire for more territory (and oil) and the dumb fuck Italians thinking they deserve more territory too made for one hell of a circus.  We and the rest of the world are still suffering from the consequences.

eureka's picture

US citizens absolutely hate and despise each other along ethnic and ideological/party lines.

Have you not paid attention to the immigration war, culture war, class war rhetoric?

South hates north, middle hates coasts.

US is built on hatred and competition.

Soon, you will remember the civil war, race riots and all the other ugly scabs on US history as they resurface under austerity, poverty, increased unemployment, ever falling home prices.

Remember my prediction during the next nine months as you witness your empire crumble from within.

Hobbleknee's picture

And yet a black man is president.

You listen to the MSM to much.

Arius's picture

at the end, we all live in the same World, are people and God's children.

It wouldnt suprise me a bit if we come out of this mess on top as a more unified World....therefore a better place to live in....more productive and easier to live in so to speak...before you jomp...it is a general statement, but sooner or later at some point in time people will live in a unified place....perhaps we might be approaching the end of the line....with all the improvements in technology it is time for politics and the politicos to catch up...

Lord Koos's picture

I dunno, there are more than a few of Satan's kids out there.

eureka's picture

Reality Check:

1  The once most inter-warring EU countries are now the most tightly co-operating countries.

2  middle easterners were invited into Europe - not to replace non-integrating Europeans, but as guest workers in the 1960s manufacturing boom

3 unlike US'ians, of whom only 12% own a passport and 90% know nothing about the world except what they are told by corporate controlled US TV - Europeans travel & work extensively in each others' countries.

Any US'ian who has not been to Europe should go - or shut up.

sun tzu's picture

Are you really that stupid or do you really believe the tripe you spew?


Besides, all those europeons jetsetting around the world is bad for the environment and causes global warming. They better stop before I call Al Gore

eureka's picture

What's your analysis, genius? Sound bytes is all you do. Have you been to Europe? Your "knowledge" is trite and old and boring. You are probably a backwoods hegemon living vicariously on US TV narcissism, priding yourself of holding a bit of PMs.

Sharpen your brain - argue why US doesn't collapse next nine months or two years or whatever - with facts, not diatribe plattitudes of inate superiority.

Silver Dreamer's picture

Eureka, it's a race to the bottom.  Unfortunately, we have far more sheeple here than Europe does, and we do not have the same immigration demographics either.  It will be easier for TPTB to slow our decent for those reasons and more. 

If I were a betting man, I would be all in on Europe winning the race.  This isn't about superiority either.  We're both screwed.  It's time the West got its shit together and stopped fighting itself.  We have a lot of work to do if we expect to survive this and maintain our liberties.

Lord Koos's picture

Post the truth and get junk rated, it's the ZH way.

Hobbleknee's picture

They have passports because until recently, passes were required to travel to a neighboring country.

Léonard's picture

@sun tzu

 That is why they are trying to replace the native populations with Arabs, South Asians and Africans. A brave new world of misery for the remaining Europeons.

Once the Anglo-American empire will collapse, we will be free to kick the Afro-muslims colons out of our continent like we already did 500 years ago.


nmewn's picture

They raid your house. Then tell you only Madagascar monkeys are permitted.

Oh, thats our regime...never mind ;-)

Cheesy Bastard's picture

If you cook and eat some monkeys and wash them down with giardia infected water, they will fly out of your ass.  For real.

FeralSerf's picture

Why would you cook them? The brains are properly eaten from a live (but not for long) monkey. I've been told by someone that actually did this that it's a delicacy.


Confucious 222's picture

What happens if the Eurozone discards mark to market on Megabank REO and other "Investments" like bonds issued by Greece, Spain, Italy and others?

That little ploy worked out well for the criminal cartel here in the good old USA.

Why won't it "save" the Eurozone banks?

Sounds like a deus ex machina about to burst onto the scene

LK's picture

i would think 11/11/11 is a good candidate.  

SumSUN's picture

Psst..  It's history.  She's telling you something...