• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Europe's Bailout Costs In One Chart: €2 Trillion And Counting

Tyler Durden's picture




 

This chart, better than any we have seen so far, summarizes just how much has been injected already to preserve the Eurozone from collapse.

This is what is known as a sunk cost, because last time we checked (and just as we explained back in March at the market highs when everyone was euphoric that Europe is now fixed) nothing has been fixed, and Europe is one 'rogue' democratic vote away from an EMU exit, and thus oblivion (or so they said last year, now everyone is prepared for a Greek departure, or so they say now, expect for the Greeks of course - they go straight to the 10th circle of hell and do not pass go). The truth is that by the time the status quo finishes its extend and pretend game, which incidentally has only one real outcome, the €2 trillion spent to date, will be orders of magnitude higher...

Source: Brandywine Global High Yield Perspectives

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Sun, 06/03/2012 - 12:00 | 2489152 Jim B
Jim B's picture

They should have just let the banks go down and restructure... period! 

Sun, 06/03/2012 - 12:03 | 2489159 LuKOsro
LuKOsro's picture

What`s 2 trillion nowadays ?

Sun, 06/03/2012 - 12:12 | 2489174 nope-1004
nope-1004's picture

When I was a kid, 2 trillion was a lot of money.

Today?  Meh...

The dollar amounts are getting bigger, the bankster urgency increasing, yet overall economic health deteriorating.  Geeze.... does anyone else see a pattern here? 

 

Sun, 06/03/2012 - 12:22 | 2489204 Bay of Pigs
Bay of Pigs's picture

"its official zerohedge has jumped the shark. it is now just simply another fear mongering alternative news outlet"

poopman

LMAO. 

Sun, 06/03/2012 - 12:26 | 2489223 DoChenRollingBearing
DoChenRollingBearing's picture

A quick quintillion to you too, Bay!  LOL...

Sun, 06/03/2012 - 12:45 | 2489262 SHEEPFUKKER
SHEEPFUKKER's picture

Who wants to be a trillionaire?

Sun, 06/03/2012 - 13:37 | 2489361 Oh regional Indian
Oh regional Indian's picture

Got to admit trillionaire rolls off the tongue nice and easy.

Trill-o-Naire!

ori

Sun, 06/03/2012 - 16:12 | 2489729 Manthong
Manthong's picture

The next trillion dollars of central bank liquidity ought to hold off collapse for at least a month.  

Sun, 06/03/2012 - 22:04 | 2490562 Harlequin001
Harlequin001's picture

what, until we start knocking it off every bank notes twice a year?

and people think $50,000/oz is high for gold...

Sun, 06/03/2012 - 16:14 | 2489735 slewie the pi-rat
slewie the pi-rat's picture

deathMatchTM troll-we-can't-bear?

yes/no?

Sun, 06/03/2012 - 14:46 | 2489490 resurger
resurger's picture

"soooo fucking baaaaaaaad"!

Bruno Mars suxxxxxxxxx

 

Sun, 06/03/2012 - 15:26 | 2489592 Amish Hacker
Amish Hacker's picture

I don't think I ever used the word "trillion" until a few years ago. I had heard of it, of course, but it was rarely used, more like a theoretical amount. I grew up saying "million", then at some point learned to say "billion," and now I'm looking ahead and starting to practice saying the Q word without laughing---or crying.

Sun, 06/03/2012 - 16:15 | 2489736 you enjoy myself
you enjoy myself's picture

reminds of when Obama, a couple of years ago, championed a ridiculously cynical effort for the Cabinet to find $100M in cuts.  Obama, and anyone even remotely familiar with our current expeditures, knows $100M is a freaking rounding error - but he literally focus-grouped that number and found that people thought it was a really, really big sum of money.  and that it must mean he was serious about cutting spending.   how sad that Govt spending has mushroomed so much over the last 2 decades that some people aren't even aware of what order of magnitude we're now dealing with.

Sun, 06/03/2012 - 15:36 | 2489624 JeffB
JeffB's picture

That'll be lower middle class soon enough.

Sun, 06/03/2012 - 13:12 | 2489218 DoChenRollingBearing
DoChenRollingBearing's picture

@ nope

+ $1,000,000,000,000,000,000

 

Quintillion, trillion, schmillion!

Sun, 06/03/2012 - 12:43 | 2489258 The trend is yo...
The trend is your friend's picture

Long live INK

Sun, 06/03/2012 - 13:12 | 2489318 ISEEIT
ISEEIT's picture

Golden...

http://mises.org/daily/5955/The-Seven-Rules-of-Bureaucracy

Nothing more true ever spoken.

You are living it.

Sun, 06/03/2012 - 15:46 | 2489649 JeffB
JeffB's picture

Great article.

Much wisdom in that article, but Frédéric Bastiat's quote especially jumped out at me:

"bad economists look only at the immediate, seeable effects and ignore effects that come later, while good economists are able to look at the immediate effects and foresee effects, both good and bad, that come later."

Unfortunately, I think we have a destructive feedback loop when we start honoring economists like Bernanke and Krugman who both fall into that former category.

Sun, 06/03/2012 - 13:40 | 2489366 Peter Pan
Peter Pan's picture

When I was a kid clculators could not take so many zeroes and even now I could not find a calculator with 16 digits locally so I had to order one through E Bay. It's scary how the more zeroes we add the closer to zero we are getting.

Sun, 06/03/2012 - 13:53 | 2489394 JohnG
JohnG's picture

Scientific notation works easier.

Sun, 06/03/2012 - 14:43 | 2489482 Peter Pan
Peter Pan's picture

Brilliant! The problem however is that the bankers really get excited with each new zero added. When the Italians went to the Euro and had to drop their zeroes it caused a great deal of distress to would be millionaires.

Sun, 06/03/2012 - 14:39 | 2489474 resurger
resurger's picture

+1

Sun, 06/03/2012 - 23:13 | 2490703 StychoKiller
Sun, 06/03/2012 - 12:20 | 2489203 CommunityStandard
CommunityStandard's picture

Pretty soon we'll be throwing the word quadrillion around.

Sun, 06/03/2012 - 16:02 | 2489704 piliage
piliage's picture

We'll end up at Cal Worthington math soon and start using Jillion.

Sun, 06/03/2012 - 13:18 | 2489330 Sam Clemons
Sam Clemons's picture

Just imagine how expensive this collapse would be if we didn't spend $2Trillion "stopping" it.

Sun, 06/03/2012 - 20:49 | 2490396 mailll
mailll's picture

2 trillion? It's only (printed) money.

Sun, 06/03/2012 - 15:53 | 2489513 Soul Train
Soul Train's picture

So a trillion is 1012

It gets real interesting when the Treasury starts calling it sextilllion  1021.

Have you ever noticed that no matter what inflation does, the most American sheople can bring back in the USA without declaring is a paltry $10k ? How many years has it been since this has changed? Do you know? Do you care? What can you do about it? Write your Congress'person'? Ha ha ha. Like that'll get anything done.

Talk about doormats while reentering their homeland ! American citizens have their balls cut off anymore/. The sheople are afraid to talk in their land of the 1st amendment, ha ha ha. ZH and its readers are the last of the real Americans - no fear to speak up, unlike all the rest of the sheople afraid of their own shadows.

Anyway, this next depression in the USA will be better than anything Jenny Craig could have helped the big lard asses with. Obama - what a farse! Electing that narcissist tells you a lot about where America is in their evolution.

Change you can believe in. LOL.

Buy gold and silver - physical. Pray to God everyday. Eat healthy. Help others. Try and just stay content with being good and count your blessings.

Meanwhile, watch the zoo governments in Europe and the USA tell lies and distort. Blow smoke up sheoples' asses on the federal media cable tv, (which the sheople pay huge $$$ for on their monthly bill, listening to fed soundbites, terrorist alerts, wall street propaganda spin- CNBC etc, and all the while watching countless adverts). Hey, CNBC, how about following up with Goldman Sachs on the propaganda piece that you helped facilitate back in March ? http://www.cnbc.com/id/46808343/Stocks_Offer_Best_Opportunity_in_a_Lifetime_Goldman_Sachs

 Poor sheople gotta pay the cable bill to watch NBA, college hoops and Football (used to be free on the major three networks ....) That vanished - they did a pretty good job of that too! I remember when cable first came out, the big promotion was that it was commercial free, then it started just a few ads, then before you knew it continually spam. Sheople don't seem to mind, they have their remote control to fly through the channels with. Attention span to about 9 seconds I read somewhere....

Ever awakened early in the morning like around 4am, and turned on the TV to find some solice and entertainment? Heck, there is nothing on but infomericals! Why are we paying a cable TV bill to watch station after station of informericals !!!!

I CALLED MY CABLE COMPANY ! I told them, I just want to buy 5 or 6 stations at most - the ones I watch, and the rest I don't want to pay for. Answer: We don't do that.

My reply:  I told them to turn it off, I just want my internet. It[s great - no more BS TV and no more of that manic depressive Cramer mouth off.

Now, I tune into ZH to learn the truth, help to think on our own, and give me the honest insights from the Fight Club Tyler et all to keep what money I have safe.

Let me offer this. I feel good to own gold and silver coins. It is always there. I also like to have currency available. Real paper bills. When the shit hits the fan, some paper will be good to have too. Don't think that bank runs can't happen in the good ol USA.

I remember back in 2008, my credit card issuer sent me a notice telling me that my credit limit was being reduced from $25k to $12k. I called them and asked why? I pay my balance in full every month, I have no debt, etc. The reason was of course that their own credit line were being reduced and the big squeeze to the sheople was on.

Don't think for a second that a paradigm shift in the way our financial system works is not around the corner.

Bottom line: buy physcial gold and silver now. Even if just some pre '65 silver quarters and dimes, it doesn't matter. The important thing is to start now, and keep adding to your savings.

 

 

 

Mon, 06/04/2012 - 10:17 | 2489690 JeffB
JeffB's picture

Yeah.

Check out the video of this guy who had the "misfortune"(?) of marrying a French woman. They are now subjected to Homeland Security mandates that she be fingerprinted and biometrically scanned every 10 years or be kicked out of the country.

A preview of things to come in America

Or this lady, who worked for the CIA in negotiating with Iraq, and Libya among others, but was viewed as a threat because she had delivered warnings about attacks on the World Trade Center using hijacked planes to John Ashcroft among others, and the government wanted to deny they had any clue about such a possibility whatsoever.

CIA WhistleBlower EXPOSES Everything! "Extreme Prejudice"

(You can skip the intro by moving to about the 7 min. mark.)

Sun, 06/03/2012 - 22:44 | 2490646 cranky-old-geezer
cranky-old-geezer's picture

 

 

2 trillion euors created out of thin air, used to buy more government debt paper that ends up on ECB's balance sheet sooner or later.

No, there won't be any government defaults.  Central banks will print however much currency has to be printed to keep buying more government debt so governments can keep operating (with horrible mismanagement, waste, and fraud).

But there will be currency collapse.  The euro is doomed.

US dollar is doomed too, since Bernanke will do the same thing here, keep printing and buying more government debt.  Oh yes, it'll end up on Fed's balance sheet sooner or later.

You have to get your wealth out of US dollars and dollar-denominated assets like bank accounts, bank CDs, insurance policies, annuities, etc.

Unfortunately you can't get your paycheck out of US dollars.  As time goes along you'll be working for less and less as the dollar drops in value.

 

Sun, 06/03/2012 - 12:01 | 2489154 malikai
malikai's picture

Does this chart mean its time to BTFD?

Sun, 06/03/2012 - 12:31 | 2489231 prodigious_idea
prodigious_idea's picture

Perhaps but, if you believe the economic signals, only for one last swing trade.

Sun, 06/03/2012 - 13:13 | 2489320 ISEEIT
ISEEIT's picture

Not yet.

But soon:)

Sun, 06/03/2012 - 16:02 | 2489706 JeffB
JeffB's picture

Don't know if that's possible.

Goldman Sachs already bought him.

 

Sun, 06/03/2012 - 12:01 | 2489155 MsCreant
MsCreant's picture

Moral Hazard in One Chart

Sun, 06/03/2012 - 12:03 | 2489160 Caviar Emptor
Caviar Emptor's picture

2 Trillion? We can pull that out of any orifice you'd like us to.........Sincerely, World Banking Cabal

Sun, 06/03/2012 - 13:09 | 2489311 Tsunami Wave
Tsunami Wave's picture

With the ESM coming online on July 9th, with supposedly US$1tn to spend permanantely to bail out out European countries... it will probably become completely insolvent the next day.

Sun, 06/03/2012 - 13:53 | 2489393 Badabing
Badabing's picture

2 Trillion? We can pull that out of any orifice you'd like us to.........Sincerely, World Banking Cabal

 

sure but can you work for it?

Sun, 06/03/2012 - 12:05 | 2489165 derek_vineyard
derek_vineyard's picture

alex,  europe bailout for $2 trillion

Sun, 06/03/2012 - 12:31 | 2489230 DoChenRollingBearing
DoChenRollingBearing's picture

Where did the money come from, Alex?

Sun, 06/03/2012 - 12:47 | 2489266 Dapper Dan
Dapper Dan's picture

That is my current family/friend gathering, conversation ice breaker,

"Where does the money come from to bail out all of these bankrupt countries?"

Deer in headlight look follows.

The link below is what I will direct them to from now on.

The new film "End Of The Road" has just been released for public viewing, featuring GoldSilver.com CEO Mike Maloney alongside Peter Schiff, Jim Rickards, Jim Puplava, James Turk, Eric Sprott and more.

http://www.youtube.com/watch?feature=player_embedded&v=gHT0na7JXs0#!

Sun, 06/03/2012 - 13:29 | 2489347 j0nx
j0nx's picture

Bad link.

Sun, 06/03/2012 - 14:17 | 2489441 Bay of Pigs
Sun, 06/03/2012 - 14:34 | 2489469 poldark
poldark's picture

This video has been removed by the user

Sun, 06/03/2012 - 12:50 | 2489276 Sudden Debt
Sudden Debt's picture

How ridiculous can somebody feel when you argue with the misses that those shoes costed 400 euro and that's a bit much for a set of shoes...

2 trillion...

And probably that money will run out in 2 years.... Again...

Sun, 06/03/2012 - 13:20 | 2489333 DoChenRollingBearing
DoChenRollingBearing's picture

And the cycles cycle and the circles turn.  Ever turning, rolling...  Reminds me of me!

Sun, 06/03/2012 - 12:10 | 2489180 Zero Govt
Zero Govt's picture

that's €2 Trillion of "stability" ..or debt to use the old terminology

and to think the ECB's Stress Tests 1 & 2 passed these banks.. can we round-up all the bean counters for a mass execution please?

Sun, 06/03/2012 - 13:57 | 2489403 Things that go bump
Things that go bump's picture

That is coming soon enough.  Sadly, they are not the actual problem.  

Sun, 06/03/2012 - 18:06 | 2490014 Zero Govt
Zero Govt's picture

let's deal with one execution, sorry 'problem', at a time please

first up is the trans-European bean counters that made more than a blotting error on the ECB's Stress Tests... they were only 'out' by €2 Trillion (and counting......!)

Darwin is not just for the animals, our blades are ultra-sharp, the bean counters knecks are scrawny, this evolutionary culling won't take long at all

Sun, 06/03/2012 - 22:01 | 2490554 Things that go bump
Things that go bump's picture

You are right, of course.  Just following orders didn't work for the Nazis either.  

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