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"The European Financial System Is Finished" In Quotes
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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What is it with bankers and politicians that makes them think (using the word very loosely here) that the remedy for a thing that does not work is more of the same thing?
The implication is increased 'fiscal' integration. So, a formal European State and a 'Treasury' to go with it. And this is better, a remedy, because it will become much easier to lie. About everything.
Meanwhile back in the United Ponzi States of America, markets are sporting a cornucopia of upside-down heads and shoulders. Can you say one last ramp for old times sake?
They will 'mark to fantasy land', commit fraud, and send their markets back up. The US will follow, and gold will head lower.
Have a nice day.
They know it's about to die, and they are trying to decide which one is less painful.
The Europeans have been "lost" for a very long time. It's going to get dark and cold very soon, much worse than Russian winter...
What happened to old fashioned bancrupcy? Big US banks have been broke for years. TARP was an attempt to sustain a terminal ill cancer patient. We should have let them go broke with organized bancrupcy. What happpened to bondholders taking a haircut? It's not the end of the world. Nobody has learned the lesson from 2008. Why does the taxpayer have to bailout the Wall Streeters that beleived Fannie and Frauddie were legitimate businesses? And now...why does a German taxpayer have to pay more in taxes to bail out a Italian who lives off the state?
The beauty of a real "free" market is that bancrupcy let's people start over when mistakes are made. Free market capitalism isn't perfect because human beings aren't perfect.
The Europeans don't want to admit this truth. They'd rather think "...the current membership will have to change." "...the consequences for us in Europe are incalculable" Wow!
Just let the people that are broke, go broke!! They can start over!!!
Nobody of "import" has learned the lesson of 2008 because members of said party are still sporting flowing locks.
Next time, I'll spell bankruptcy, correctly. :)
humor: You better. The first rule of fight club is proper spelling at all times. The second rule of fight club is if you make a spelling mistake then not only is your current argument invalid, but every argument you have ever made. Rule #3: Use proper punctuation boys, no journalistic perrogative with the last comma in a list. Rule #4, use the bullet list option unless you really are trying to do hiaku or asci art. Its not that hard to select the text and hit the button. Sac works hard so we dont have to. Rule #5 If Tyler spells something wrong in the process of delivering us the stuff we get here for free, be a real asshole about it, post first before (s)he has time to edit and rage quit immeadiately. Rule #6 WB7 does read the threads here and other places. If your idea is good enough, it will get worked into his pallet. No you were not the only one to think of it, but yes, you were the one who harresed him over again like a chick at a barry manilo concert. Rule #8 Grammer.
/humor
left handed thank you to ZH
What rules covers the proper spelling of "perrogative?"
What is Drudge talking about, he says NYT and Euro bank fail fear. Did he jump the gun again?
Maybe the Euros should take lead from Barry and the US admin?
Can you say: European Infrastructure Bank?
Meanwhile, the oligarchs and politicians are still mega-billionaires and really don't give a shit. Great theatre, though. Let the genocide continue and pass the Beluga.
Meanwhile, the oligarchs and politicians are still mega-billionaires and really don't give a shit. Great theatre, though. Let the genocide continue and pass the Beluga.
nice set of quotes ... but
former PM Schroder has negative credibility after negotiating energy pipeline with Russia then immediately joining Gazprom as Director
the Swiss people are getting fucked over by their uber lord banksters just like the rest of us. They are probably more aware though and remember what happened during WW2. It will be interesting to find out what the population thinks about this huge currency move, and what they will do if anything.
Can you imagine getting up in the morning and finding out the $ just took a 10% hit? It could easily happen. For national security reasons of course.
It is very easy to design a craft that appears to be seaworthy on a calm day.
But you never know whether the craft is truly seaworthy until you've sailed her with green water coming over the rail.
This craft called the EURO is taking on lots of water and listing in the middle of a perfect storm...
Don't know how to pronounce it but - Landsdomur bitchez!
Ex-Iceland PM on trial for role in bank crisis"Iceland's former prime minister has become the first political leader to be tried over the global financial crisis as proceedings began to decide if he can be held accountable for his country's banking sector collapse. ...he is thus the first person to go before the Landsdomur, a never-before used special court for current and ex-ministers."
http://www.rte.ie/news/2011/0905/iceland-business.html
Yes, there are at least 13 ways this thing can implode:
http://seekingalpha.com/article/290659-13-ways-the-euro-can-implode
At least...
Soooo.....your actually telling me the EURO isn't Simon Cowell....now I worried....
Tyler, 2 new Chinese-US Embassy Cables concerning GOLD were discovered today
http://silverdoctors.blogspot.com/
Oh no! I hope the European states have the foresight and wisdom to act fast and surrender a little of their sovereignty to a stronger European Union to enable the EU to do what has to be done because we're all in this together and it takes a village. ;-)
Oh those silly banksters.
Banks Took $6B in Reinsurance Kickbacks, Investigators Say"Many of the country's largest banks received $6 billion in kickbacks from mortgage insurers over the course of a decade, according to a previously undisclosed investigation by the Inspector General of the Department of Housing and Urban Development."
http://www.americanbanker.com/issues/176_173/mortgage-reinsurance-respa-...
Looks like the wheels are coming off the bus fast and furious, and you know, I can feel any empathy for the rich fucks who will either take it in the shorts financially or take something else on the streets. It's coming here folks, just watch and see. Most of us who've been on the planet for a long time have never seen the pure horseshit that is spewed at us everyday by the gov, corps, media, etc. And the communication giants have succeeded in making gen xers and millenialls TOTALLY paranoid without at least an Iphone. I saw a 50ish Woman today in a grocery store with a t-shirt that said "Ask me about my apps" across her saggy chest.
Far as I'm concerned it's time to Man the lifeboats: http://www.collapsenet.com/262.html
Here, here, to the lifeboats. Bring along a nip of brandy and that wool blanket.
Currentseas have gone full retard.
One new European currency will be the NEURO.
The "Nordic Euro."
Germany, and ??
Sorry - oops double post!
What is happening in Europe is all by design
“The EU was founded and initially led by ‘former’ Nazis and Fascists, as was the Charlemagne Prize awarded to Tony Blair, Edward Heath, Roy Jenkins and others for their role in removing democratic sovereignty from the nation states of Europe.” No wonder, says Atkinson, that the EU has today reproduced the policies and structures of 1940s Europe and shows all the characteristics of a totalitarian anti democratic corporatist Empire — for that is what its fascist founders intended.
The Nazis and The Fascists Who Founded the EU and Their Profound Influence on Eurabia Todayhttp://www.juliagorin.com/wordpress/?p=2675
One new European currency will be the NEURO.
The "Nordic Euro."
Germany, and ??
http://econocasts.blogspot.com/
John Exter’s inverted pyramid. The idea is that things high on the pyramid are derivatives of asset classes further down the pyramid. Compare your assets.
http://lonerangersilver.wordpress.com/2011/04/17/john-exter%E2%80%99s-in...
http://www.zerohedge.com/article/gold-75-underowned-20-years-or-exeters-...
http://www.zerohedge.com/article/feds-nemesis-exters-2-quadrillion-liqui...
http://www.zerohedge.com/news/redrawing-exter-pyramid-paul-mylchreests-l...
It's just the ponzi fiat hitting the fan, with states now (Germany) threatening to secede. What does one expect when left, Marxist inspired, socialist policies dominate domestic politics in Italy, Greece, Spain, etc... for the last 50 years?
That is where Barry wants to take the US...there is only one pesky thing blocking him, the US Constitution, which he clearly has no respect for and thinks is irrelevant in modern times...
Got physical silver, bitchez?
Gold just rolled out of bed.
Pray to God that the Krugman /Keynesian WWIII Bankster Warefare model doesn't turn into all out global military conflict to protect Banksters. China can buy all they $2,000 gold they want lets mine it and send it to 'em.. Islamic extremists can hold the price of oil hostage for a short while longer. Lets pump our own.
Natural resource development will bloom in America once agian to offset forced Bankster austerity and save the dollar as the surviving world reserve currency. In America ,export based economies beginning at the individual & state level will create cash flow to turn it all around.{hopefully before you & I are dead.} Watch as the worm turns 180 degrees on EarthJustice, DOW, NRDC, EAJA as unemployed America looks for more scapegoats. The fiat value will be restored after the 2012 election which the far right will win {note Romney's turn hard right as well as Perrys}.Will the dollar and the DJIN telegraph a Republican / Tea Party win soon? Expect a miracle,
Wow , in one failed swoop, Gold dropped from $1870 to $1817 in about 60-seconds. It appears the take down happened in all curriencies as far as I can see. Silver included.
Yes sir. It was visceral
That swoop doesn't look like it failed, more like it fell.
Whatever adjective you choose to describe it, it occured over the entire PM's landscape, no other noticable residual effect(s)
Someone is raising cash in a big way
The bid/ask spread is wild
It's a paper market. Gold had a double top yesterday. The demand is not there. If you're a half decent central bank and able to buy gold at roughly $1000 per ounce WHOLESALE from the supplier, why wouldn't you liquidate at these levels?
You think RETAIL is going to gobble up gold at $1900?
A former hedgie speaks about how performance of portfolio is paramount. Analysis and the rest of the speak is incidental.
http://capital3x.com/?p=823
It won't collapse. Germany just wants europe to think it will so everyone begs Germany to take their sovereignty.
The financial crisis is economic warfare, plain and simple.
http://germanywatch.blogspot.com/2011/09/wmd-and-germanys-dirty-secret.html
Europe, the EU, the Eurozone need to take it to the next level.
10 years into the program and they still have sovereign nations trying to come to terms with a common currency.
The currency is here to stay. Not so sure about the massive overhang of politicians and bankers across the continent.
The evolution of Europe is crystal clear. Common currency, common language, common constitution, common tax code, common debt and common balance sheets.
Is that really so difficult to fathom? In my lifetime, Europe has always been about integration, reconciliation, harmonization.
Europe is half way there to becoming one? Why stop now?
Well it's the people who will stop this.
We have language and culture and location which will be the deciding factrs.
And when the system is broke all these will come to the fore
What we are seeing now is volatility in all markets. Equities, bonds, commodities, and currencies are exhibiting increasing
volatility as the world financial crisis comes to a head. Investors are very nervous and reacting to any adverse news with
a hair-trigger mentality.
Now, one might speculate, if Homer forgot to reboot the bilge pump system on this tired and rotten PM barque, we could see noise here in a narrow range for the next day or so, followed by a bigger down draft for 24-48 hours until this next higher low is in and the upward leg of the churn is back on. While some are afforded a few final days of lattitude in this first phase of an historic unwind, others, and you know who you are, are backing up their trucks. I need Ag at 39.75 this round, Au at 1750. Any one else care to speculate?
Soros' solution? Why a "pan-European body to handle a banking crisis of this severity", of course....
Yep, that's exactly what Europe needs. Another bloated bureaucratic organization to employ more oligarchs. BRILLIANT!!
I think the USA can kick the can for quite a few more years. They will open up everything to the energy companies as a last gasp. I think that may be last opportunity to back up the truck.
The EU is fucked proper.
God Bless Iceland.
Cheers Bitchez.
You had me at George Soros. Love him. Hate him. He knows his shit.
Rompuy :"The euro has never had the infrastructure that it required"
This is the scariest one, since what he means with that is a coercive apparatus, an army for the bureacracy required to tax and take as much money from whoever has money in the EU to keep whoever has spend his money a float. This army has to be under EU command and pose a real threat. The keyword is "political and fiscal union"
As before in history the term 'union' is used for 'obey and pay or get an invasion' check out Lincoln
not too worry, according to the nytimes:
Still, the huge stockpile of euros that banks have stashed away at the European Central Bank at rock-bottom interest rates — last night it hit a recent high of 166 billion euros — suggests that no bank is close to a Lehman-like failure.
stockpiles! lol.
Breaking news: German court rejects lawsuit against EU bailouts
http://capital3x.com/?p=852
"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."
Errr... I assume you're white, boy? So tell me where do you come from initially? Europe? That's right!
And never forget America was built with the discarded Europeans who didn't have a future at home...
"blood-soaked continent" how about a "blood-hungry" country to describe the U.S.? How many wars have you gotten yourself into since the 1800s? Sixty! TWENTY-FIVE since 1941!
"But our American soil is clean and pure cos we make our dirty deeds abroad!" Right... that's red white and blue hipocrisy.
Angela Merkel and most Germans really love the Euro,
and the Euro is the strength of the Euro-zone
( sorry to all the momo's who lost 8% yesterday,
betting against the Euro and buying expensive CHF )
Ben will not let the Euro fall, he needs a low USD to sell Apples around the world,
and Harleys and Gibson Guitars and Boeing and Cessna Aeroplanes....
there's still some good old american stuff, going cheap on a low USD....
Globalisation of Debt
Beggar thy currency- do it the Swiss way.
Print and lend to other countries so that others may lend unto you.
Screw your own people if they object
Nice world this is !
Please do not confuse EU with Europe. EU has given Europe a bad, bad, bad name. Europe used to be a nice continent to live in.
The collapse of EU with its' stupid euro would be a blessing to it's member countries. Only the bureaucrats and politicians would lose. But being a pessimist (=realist), I am afraid that they are deliberately using (and causing) this debt chaos to create a tighter and even more monstrous EU. After all, no one, not even bureaucrats and politicians, could be this ignorant and incompetent in handling this crisis.
BTW: have you ever thought how little imagination it took to name the currency euro? Even that name was an insult.
“This crisis has the potential to be a lot worse than Lehman Brothers,” said George Soros, the hedge fund investor, citing the lack of an authoritative pan-European body to handle a banking crisis of this severity. “That is why the problem is so serious. You need a crisis to create the political will for Europe to create such an authority, but there is still no understanding as to what the authority will do.”...
If you missed that, crisis is in the mail. More banker control coming.
If theres massive deflation due investors pulling their money out of the euro and subsequent collapse of banks, gold aint gonna mean shit to anybody, people need food, water and security and I tried eating gold and now I aint got no teefers
If theres massive deflation due investors pulling their money out of the euro and subsequent collapse of banks, gold aint gonna mean shit to anybody, people need food, water and security and I tried eating gold and now I aint got no teefers
Hi Tyler,
by putting together 20 negative quotes with several "if..then" that are more suggestions than forecasts, I am afraid you are not going to create an unbiased predictor of the future of Europe.
I believe that there is no other possibility than the Euro for the european contries. If the PIIGS would be forced to leave the Euro, or if Germany and its closest partners would create a different currency union, two things will happen:
1) competitive devaluation: the local currencies will drastically fall against the new EuroMark and it will be increasingly difficult for Germany and its partners to export to the PIIGS. Also the PIIGS will have a far cheaper labor market and therefore will compete with EuroMark exports. Finally, the PIIGS would probably retaliate and close the borders, making export to them even more difficult. Given the large chunk of German's economy that is export to these countries, that would make a big dent in the GDP.
2) debt default: the leaving countries will find increasingly difficult to fund their debt and will default. Or even if they will not default, they will convert all their current Euro obligations into the local currencies, which will then immediately loose a lot of their value. This would create an immense void in all european banks, and will create a chain reaction that will signify the immediate collapse of the banking system in the whole Europe.
We will have in essence a 1982 on steroids but with Germany having to support all the unemployed in the eastern part of the country.
The Euro has been created and used by Germany to control the european financial policies and allow Germany to compete on the markets without fearing the devaluation of the other contries. It has been incredibly successfull in that and the Germans would do whatever it takes to keep this advantage.On the other side the Piigs know that if they leave the Euro they will go back 30 years in time, will find increasingly difficult to get energy and raw materials, could face hyper-inflation and could go in a downward spiral that would take them into the pre-industrial age.
All that means that we will soon see an increasing part of the fiscal authority of the states be transfered to the EU via the Eurobond mechanism and a committee whose members will have a voting power given by the amount of contributions to the EU, and none of the debt nations would be able to say "no thanks".
How much more clear can it get?... We'll find out within the next month or less. -- MCR
http://www.collapsenet.com/154.html
The euro will now be forced to parity with the dollar and a united currency will emerge. Call it the the UNATO.
The presses will roll forever.
Last time I checked the Saudis didn't have an army and Iraq certainly doesn't.
Or Mexico or Venezuela or Canada.
The Russians and the Chinese will fight each other(again).
Or go fish.
So forget oil depletion, we have all we need for the present.
Iraq and Libya.
Things will end with suitcase nukes.
Read 1984 and a Tale of Two Cities.
Plant a garden, save seeds.
Buy guns and gold.
bill