Europe's Cash-For-Trash LTRO-'Scam' And The Indentured Servitude Of The Citizenry

Tyler Durden's picture


In a must-watch follow-up to his original Punk Economics Lesson, David McWilliams describes how the new bankocracy in Europe will lead to a massive injection of liquidity; blowing bubbles in financial assets while the citizenry is bled dry (ring any recent bells?). The banks again get all the money they need while the average citizen shoulders the burden. Specifically in the case of the Greeks, they are left with the uncertainty of a return to the Drachma or the certainty of decades of indentured servitude. Enter the ECB with their cash-for-trash deal. This is a scam, he proclaims correctly, insolvent banks lending to insolvent governments and we are calling it success? The banks can turn a tidy profit, but the straight-talking Irishmen asks the question every Greek citizen should be asking: "where does the profit come from?" The answer: the average tax-paying European citizen, and it is this that provides the comfort for the Germans to allow the Greeks to default without bringing down every bank in Europe in a contagious cascade of margin calls, un-hypothecation and deleveraging. Critically, the question is not if or when Greece will default but will they be allowed to default enough? The lesson for all is that to stay in the Euro, all European nations have to become more like Germany - which is very different from the community of equal nations that the Europeans signed up for 20 years ago at Maastricht. Don't be fooled that the European debt story is over, it is not. In fact, he finishes - rather ominously, the interesting bit hasn't even started yet.


While austerity is argued not to work, we think it can if countries manage to cut expenses while keeping a balance. We once again remind readers that alas, the balance is out of skew due to 30 years of runaway full-Keynesianism, which leads indeed to the problems that McWilliams so well espouses.



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Thu, 02/23/2012 - 23:34 | 2191708 quebecgold
quebecgold's picture

Let’s play!

Let free the Tyler Durden in you!

Tomorrow(02/24) everyone tweets ‘’Greece Defaults’’ on twitter at exactly 10:03 (ET).

It’s time to see how bad the Algos will react to this storm of tweets.

Respond to this message saying you are IN!

Thu, 02/23/2012 - 23:38 | 2191719 quebecgold
quebecgold's picture

Spread the word


Thu, 02/23/2012 - 23:45 | 2191736 Comay Mierda
Comay Mierda's picture

I got a lot of friends in on this, about 20 people

Thu, 02/23/2012 - 23:48 | 2191739 quebecgold
quebecgold's picture

Nice work,

let's crash the ponzi scheme

Fri, 02/24/2012 - 02:42 | 2191937 Canada01
Canada01's picture

I'll do it too.

Fri, 02/24/2012 - 03:20 | 2191968 Michael
Michael's picture

If I owned stock in the Federal Reserve, I'd really be seriously thinking about selling my stock right now.

The Fed is stuffed to the rafters with toxic waste and its currency is virtually completely debased.


Fri, 02/24/2012 - 04:07 | 2192011 Michael
Michael's picture

They don't do this anymore, do they?

Smith Barney

Re: The Paper Chase

Fri, 02/24/2012 - 04:30 | 2192028 Michael
Michael's picture

Without CO2, Nothing Green Would Grow On The Planet.

Fri, 02/24/2012 - 05:21 | 2192100 Michael
Michael's picture

This is nothing short of a Declaration of War by the Ron Paul Crew on the Federal Government.

Fri, 02/24/2012 - 06:06 | 2192123 Ghordius
Ghordius's picture

+1 for the reminder that this is all the FED's game since 1933 and then 1971

well done BS propaganda video, hits all the soft spots and of course it leaves the international setting out

Fri, 02/24/2012 - 11:00 | 2192571 ShankyS
ShankyS's picture

I'll get my crowd in. 

Thu, 02/23/2012 - 23:49 | 2191741 ACP
ACP's picture


& Bernanke resigns for health reasons

& LTRO cancelled, moved to 2013

Brainstorm people!

Thu, 02/23/2012 - 23:50 | 2191745 Falcon15
Falcon15's picture

If I had a twitter account, I would do it. AWESOME idea!

Fri, 02/24/2012 - 00:13 | 2191779 LowProfile
Fri, 02/24/2012 - 01:27 | 2191880 Prometheus418
Prometheus418's picture

Just for shits and grins, I'll do it.

Easy enough to make a throwaway account with a bs hotmail attached to it.  Took about 30 seconds, all told.

Fri, 02/24/2012 - 05:09 | 2192044 alt-shift-x
alt-shift-x's picture

that still doesn´t give you any followers that care about your tweets, anyway for the european folks here as far as i know 10:03 ET means 15:03 CET and 16:03 for mainland europe.

And yes i´m in

Fri, 02/24/2012 - 06:56 | 2192144 rufusbird
rufusbird's picture

RE: "If I had a twitter account, I would do it..."

Well, you could simultaneously email the  words to all of people who are in your list of contacts. It may depend on what email program you use but I think most have a "mail to all" feature.


Fri, 02/24/2012 - 08:17 | 2192200 OttoMBMP
OttoMBMP's picture

This Punk Economics thing is Keynes contaminated.

(Saving is baaad. The governments must spend etc.)

It does not really mention that the Maastricht Treaty necessarily lead to this crisis.

Beyond the requested debt forgiveness and transfers it doesn't make any remark on how to avoid the same type of crisis happening in the future.

It ignores that the EU(SSR) is not and cannot be a second USA. It blames "the Germans" all the time - ignoring completely that so far "the Germans" have paid for the whole party.

Fri, 02/24/2012 - 00:09 | 2191772 Dr. Engali
Dr. Engali's picture

I'm in.

Fri, 02/24/2012 - 02:07 | 2191907 indygo55
indygo55's picture

I'm in too.

Fri, 02/24/2012 - 00:30 | 2191808 alien-IQ
alien-IQ's picture

Project Mayhem lives!!!!

Fri, 02/24/2012 - 01:26 | 2191879 malalingua
malalingua's picture

I'm in! Have over 1500 followers. Love to use social networking to take down the system. You should tweet this out tonight as well. Are you creating hash tag: #GreeceDefaults or just putting Greece Defaults?

Fri, 02/24/2012 - 01:52 | 2191894 PR Guy
PR Guy's picture

That is really the wickedest thing I've heard in ages. I'm in. I just need to figure out what 10.03 ET translates to in Dublin Ireland time. Probably a crock of gold at the end of the Leprechaun's rainbow... which sounds a bit like the bs they gave the Greek people about this latest deal.

As David on this video is a countryman of mine I suppose I had better watch it.

Fri, 02/24/2012 - 07:42 | 2192180 Ian56
Ian56's picture

I am IN

Fri, 02/24/2012 - 08:36 | 2192225 Irish Rascal
Irish Rascal's picture

Great Idea

Fri, 02/24/2012 - 00:09 | 2191775 A Lunatic
A Lunatic's picture

Got matches?

Fri, 02/24/2012 - 00:41 | 2191821 foofoojin
foofoojin's picture

Are you making a historical reference to the Locofocos or are you just making a reference to matches?

Ralph Waldo Emerson said of the Locofocos: “The new race is stiff, heady, and rebellious; they are fanatics in freedom; they hate tolls, taxes, turnpikes, banks, hierarchies, governors, yea, almost laws.”

Fri, 02/24/2012 - 00:31 | 2191799 chump666
chump666's picture

G20 jerkoff on the weekend, LTRO major jerk off on the 29th, market will rally into ranges, Dow could sit on the 13000 for a little bit (into early March).  Oil most likely will hit the 110...then Europe will burn (literally) .

All before/or after the Ides of March.  Europe will be a riot zone.

Fri, 02/24/2012 - 00:34 | 2191815 chump666
Fri, 02/24/2012 - 06:55 | 2192143 Awakened Sheeple
Awakened Sheeple's picture

This has to be the biggest pump and dump ever! Have people forgotten about the CDS trigger? I am beyond words..

Fri, 02/24/2012 - 00:27 | 2191803 alien-IQ
alien-IQ's picture

This is so fucking depressing. I'm exhausted.

Fri, 02/24/2012 - 00:28 | 2191804 nah
nah's picture

until the cops do their job it is still just violence

Fri, 02/24/2012 - 00:32 | 2191811 SwingForce
SwingForce's picture

Super awesome. Lemmy plays a Rick BTW. (Methinks that's Motorhead singing Run Boy Run).  Well let's review, we thought greece was only getting 19% of the bailout money- BANKSTERZ getting 81%- but now we hear Greeks are getting LESS THAN ZERO  , are they asleep? Who's in charge over there? Total nonsense, a wonderful Heist movie in the making, Charles Furguson will never run out of topics for his next movie.

Fri, 02/24/2012 - 00:33 | 2191812 earleflorida
earleflorida's picture

This, David McWilliams, is one fine artist, with alot going on upstairs! 

fantastic :-))

Fri, 02/24/2012 - 00:34 | 2191814 CapitalistRock
CapitalistRock's picture

Of course austerity works. It's nonsense to believe that excess government spending is the answer to reducing debts. When people say austerity does not work they are referring to a contracting GDP number and lower average standard of living. That's a sign it IS working.

And that is the problem with debt. Having to pay it back is hell.

Default might be more fun, but who likes waking up to bank holidays because the bank's assets just vanished?

And so the ECB and the Fed will take trash for cash and spin all sorts of other excuses to print. Prices on everything will rise. Speculators will be blamed. Price controls will be tried for a while. But ultimately we will all be poorer unless we were smart enough to transfer our wealth into real assets NOW.

"Gold is money. Everything else is credit." - JP Morgan

Fri, 02/24/2012 - 00:37 | 2191818 dark pools of soros
dark pools of soros's picture

"Pakistan Nukes India"   

would be sure to crash corporate stock prices with no more cheap offshore staff

Fri, 02/24/2012 - 00:39 | 2191823 slewie the pi-rat
slewie the pi-rat's picture

tyler, you seen this? - $15,OOO,OOO,OOO,OOO FRAUD EXPOSED in UK House of Lords

(paste)  My Lords, it starts in April and May of 2009, with the
alleged transfer to the United Kingdom, to HSBC of a sum of 5 trillion
dollars and seven days later, in comes another 5 trillion dollars to
HSBC, and then 3 weeks later another 5 trillion. 5 trillion in each
case. Sorry. A total of 15 trillion dollars is alleged to have been
passed into the hands of HSBC for onward transit to the Royal Bank of
Scotland and we need to look at where this came from and what the
history of this money is. And I have been trying to sort out the
sequence by which this money has been created and from where it has come
from for a long time.

Fri, 02/24/2012 - 01:59 | 2191901 Bunga Bunga
Bunga Bunga's picture

He should just upload his 104-megabyte memory thumb to Wikileaks and we will figure it out.

Fri, 02/24/2012 - 02:25 | 2191923 FinkPloyd
FinkPloyd's picture

The Fed seems to be aware of the scam since 2007:

Scam Involving Yohannes Riyadi and/or Wilfredo Saurin

The Federal Reserve Bank of New York has been contacted by several brokers and financial institutions worldwide inquiring about the validity of this fraudulent account documentation, which is being offered as collateral for lines of credit or other types of asset based financing. The fraudulent scheme includes multiple documents which purport to have the signatures of various Federal Reserve officials, including Chairman Ben Bernanke.


Fri, 02/24/2012 - 02:34 | 2191930 FinkPloyd
FinkPloyd's picture

Btw the above link also has a nice set of images for fraudulent bond/note , including boxes for such . Pics reminds of all the ??fake?? bond stories like this:

Fri, 02/24/2012 - 02:51 | 2191944 Sandmann
Sandmann's picture

Curiously no mainstream news organization has reported or commentated on this speech, although the alternative news websites and blog-o-sphere are awash with speculations  Wikipedia

Fri, 02/24/2012 - 16:07 | 2193898 putaipan
putaipan's picture

here's my take- if these kind of bonds are real ....
they represent the deeeep economics of world war 2. they are traded and recognized only at central queens piggy bank levels.
german black gold bonds seem to have been stolen from wanta/reagan/vatican attacks on soviet union by the bush cabal
     and represent what the nesara dreamers were on about. exposing this is the best reason for wellstone i've read.
the japanese/philipines versions are for chinese gold. due date sept.10 01. and are refrenced in the ny lawsuit and blackhieth.
- i think they are the old paper reresentation of "pigments of monetary imaginations'"  of the past surfacing to cover
today's digital imaginary money- quadrillions of world wide derivitive debt. ie- to make the unreal- real.
just my two trillion cents worth. have fun.
-the 'other spiritual white boy'. written by a weird looking lady with a banking backgound that writes fictional accounts of simular stuff summery of the fulford
referenced law suit filed in ny.
these two are more from the philipines/japanese style beare bonds
if you missed this guy, son of one of the founders of the fed blaming treasury dept. for this kind of stuff your link, thnx

Fri, 02/24/2012 - 00:55 | 2191844 williambanzai7
williambanzai7's picture


Fri, 02/24/2012 - 11:05 | 2192594 ShankyS
ShankyS's picture

May be a bit disgusting, but wouldn't piles of shit have been more appropriate? As usual another masterpiece by WB7. thanks for all you do. 

Fri, 02/24/2012 - 01:20 | 2191870 Calmyourself
Calmyourself's picture

" interesting bits"  other than Banzai's disturbing bits above what is this guy talking about? Do the Greek men put their hands between their legs and find some "interesting bits" or do the Irish or Portuguese finds their nads first.. Nahh, they will all use the interesting bits of wood to box up the AU and ship it to frau merkel, whinnny....

Fri, 02/24/2012 - 02:37 | 2191932 Whalley World
Whalley World's picture

Sad but most likely true, what ever happend to "this is Sparta" or "so many arrows as to block out the sun, excellent then we shall do battle in the shade"

Fri, 02/24/2012 - 02:05 | 2191906 xela2200
xela2200's picture

I want a whiteboard NOW.

Fri, 02/24/2012 - 03:10 | 2191964 mrpxsytin
mrpxsytin's picture

I don't understand why all the articles on this site are going on as if 'citizens shouldering the burden' is some kind of satanic state of affairs... It's been happening since the first humans banded together into family groups. Boss man makes the rules and bitch boys follow them, ad nauseum. If you don't want to be a bitch boy then get an education and take responsibility for your own life.

Fri, 02/24/2012 - 03:59 | 2192009 AnAnonymous
AnAnonymous's picture

Awesome recipe.

Get an education. Ah, if people of ancient times had known that, today's will be different...

It is not like work consumes resources and getting an education does not solve that, only makes it worse.

But hey, it is well known, US citizens are problem solvers.

Fri, 02/24/2012 - 05:38 | 2192114 mrpxsytin
mrpxsytin's picture

I never specified what education to get... but I'll let you try to work that one out for yourself. Wouldn't want to spoil the suspense for you.

Do NOT follow this link or you will be banned from the site!