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Europe's Fundamental Flaw Resurfaces

Tyler Durden's picture





 

"Two weeks after a summit that promised to bring solutions to the European financial crisis, the European Union has once again revealed its fundamental contradictions" is how Stratfor's Adrian Bosoni introduces a succinct clip on the reality the European leaders faced once they arrived home after that strenuous weekend of blithering. Between Asmussen and Schaeuble who have steadfastly stuck to the no-monetary-transfer-without-sovereign-transfer tack - which actually make a fair amount of sense on a long-term basis - a robust and unified budgetary regime is precisely what Europe has lacked. Unfortunately, Bosoni notes, "even in a best case scenario this could not be achieved before 2015" thanks to treaties, referenda, and ratifications. In a little over 3 minutes, the analyst outlines exactly what is holding it back and why the short-term is all they have as budgetary discipline is proving particularly difficult for the EU members to maintain (see more Spanish riots tonight). Between Spain's delays in meeting targets, Greece's 'impossible' budgetary goals, Ireland's demands for concessions, and Finland's collateral agreement with Spain, unifying anything over there seems impractical and impossible.

 

A must watch for the quickest summary of the state of Europe - and the best explanation of the reality to which European credit markets are cracking as opposed to the nominal price of global equities leaking higher...

 


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Thu, 07/19/2012 - 20:01 | Link to Comment THX 1178
THX 1178's picture

Doesn't no mean yes in Greece?

Thu, 07/19/2012 - 20:29 | Link to Comment SwingForce
SwingForce's picture

No

Fri, 07/20/2012 - 03:49 | Link to Comment AldousHuxley
AldousHuxley's picture

US giving Europe Austerity to kill off dollar alternative for China, Iran, Russia...the EURO....which also helps support bids on US Treasury sales while government bails out private US corporations.

 

It is a war between US&UK vs EURO (France & Germany) vs BRICS

Battle ground is in the middle east

weapons of choice: media influence over Asian laborerrs

 

 

 

Thu, 07/19/2012 - 23:39 | Link to Comment Nobody For President
Nobody For President's picture

Yes.

Thu, 07/19/2012 - 23:51 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

That would be the other way around.

Fri, 07/20/2012 - 02:09 | Link to Comment rocker
rocker's picture

I am just glad that ZH has not lost focus of the uprisings in the world.  I had to go to other news channels to get the facts for a few days.

Welcome Back Zero Hedge. Your alive again.

Thu, 07/19/2012 - 20:01 | Link to Comment ghengis86
ghengis86's picture

The NWO Banksters sure have their work cut out for them. A global cabal of banking family's work is never finished...

Thu, 07/19/2012 - 20:25 | Link to Comment Bohm Squad
Bohm Squad's picture

Especially since all those protestors want to get rid of scissors...

Thu, 07/19/2012 - 20:29 | Link to Comment JamesBond
JamesBond's picture

LOL

Thu, 07/19/2012 - 20:56 | Link to Comment AssFire
AssFire's picture

Poor fools don't even understand what awaits them..and they waste their time protesting the abatement of their handouts.

Get on the road and start walking to Baton Rouge- don't wait for the government like Katrina folk.

Thu, 07/19/2012 - 20:06 | Link to Comment catch edge ghost
catch edge ghost's picture

No worries. Officials in Brussels understand that numbers are infinite and they intend to use all of them.

Thu, 07/19/2012 - 20:09 | Link to Comment Bunga Bunga
Bunga Bunga's picture

It's just crime, plain and simple, get over it.

Thu, 07/19/2012 - 20:23 | Link to Comment Yen Cross
Yen Cross's picture

  Tyler, Respectfully, every sane person ( z/H) rEaders included, are tired of beating the dead ( Stuft Animal)! 

Fri, 07/20/2012 - 09:42 | Link to Comment StychoKiller
StychoKiller's picture

No one's forcing you to read it.

Thu, 07/19/2012 - 20:27 | Link to Comment Tirpitz
Tirpitz's picture

What fundamental flaw you are talking about? The bankrupt banking system is recovering a billion a time, and that's what has to count, with the paid henchmen in Brussels and Berlin and Frankfort.

Thu, 07/19/2012 - 20:34 | Link to Comment Richard Whitney
Richard Whitney's picture

The surrender of sovereignty requires surrender of the seat at the U.N. for that country, along with direct representation at any international body. That, or North Carolina and the other 49 get seats at the U.N.

Thu, 07/19/2012 - 20:40 | Link to Comment magpie
magpie's picture

Now, that would be funny if Hollande had to pawn his Security Council seat for a bailout.

Fri, 07/20/2012 - 06:56 | Link to Comment Ghordius
Ghordius's picture

this is totally irrelevant* and reminds me how the Soviet Union had a two seats, one for Russia and one for the Ukraine.

(*)The important seats are those with a veto. And for this you need an independent nuclear deterrent capability. In our case, the UK and France. Germany tried to get a veto and was smacked down. No nukes, no veto.

The most recent case for this is the planned intervention on Syria, vetoed by both Russia and China.

Thu, 07/19/2012 - 20:47 | Link to Comment q99x2
q99x2's picture

First it was Soros with his 3 days now its Stratfor with, "probably within months."

They should have listened to me when I said the solution was to eliminate the 40% parasitic financial sectors from everyone's economies by implementing an Open Source Closed Monetary System, arrest the banksters and redistribute their stolen wealth.

Maybe next time. If there is a next time.

Also since they can't get anyone to fill their theater presentation if they charge $5 a head for attendence on the streets they wouldn't be in this predicament.

Thu, 07/19/2012 - 21:05 | Link to Comment Arbysauce
Arbysauce's picture

I'd like to hear that delivered in a Texan drawl

Thu, 07/19/2012 - 22:51 | Link to Comment luckylongshot
luckylongshot's picture

While no is the answer, the question is whether the debt problem can be solved by more debt....what Europe should be doing is presssuring the Rothschilds to write off  some of the debt.

Fri, 07/20/2012 - 04:59 | Link to Comment TPTB_r_TBTF
TPTB_r_TBTF's picture

no, no, no,

that's not how it works.

What Europe needs to do is to offer the Rothschilds more collateral.

The European Sheeple still have plenty more collateral for the Rothschilds to consolidate.

Thu, 07/19/2012 - 23:40 | Link to Comment disabledvet
disabledvet's picture

i prefer "blithering, bluff and bluster" myself. Followed by "steak tar-tar and fine Italian red wine." And who can resist those pintly pork rounds wrapped in bacon and skewered with toothpick? SCRUMPTIOUS! Makes you say "crisis? what crisis?" everytime.

Fri, 07/20/2012 - 02:17 | Link to Comment Aquarius
Aquarius's picture

"To sum up, what has happened is that irresponsible and thoughtless–in fact, ideological–deregulation of the financial sector has caused a financial crisis that can only be managed by fraud. Civil damages might be paid, but to halt the fraud itself would mean the collapse of the financial system. Those in charge of the system would prefer the collapse to come from outside, such as from a collapse in the value of the dollar that could be blamed on foreigners, because an outside cause gives them something to blame other than themselves."

http://www.paulcraigroberts.org/2012/07/19/the-libor-scandal-in-full-perspective/

IOW the collapse is /was expected so there is no more need for "Economist" analysis as all is Fraud. 

Economic Thgeory(s) is a fraud and the underlying mathematics / calculus is also fraudulent so rule by fraud is the dictum du jour.

Look at what is happening; it is not difficult to detect the fraud, theft, lies and manipulation plus Recursive Scamming Franchises.

IMO the US will collapse economically and monetarially before end 2012 - and it has already collpased in terms of the socio-economic stability, morally, ethically and spiritually. I believe that most serious analysis of human behaviours will agree with me.

"All that needs to be said, has been said." PeterJB @Verbewarp

Fri, 07/20/2012 - 09:11 | Link to Comment i-dog
i-dog's picture

Spot on.

I'd also like to compliment you on this (1881385) post from 8 months ago ... correctly predicting exactly what is going on with Australia today (though no Australian I talk to has any recognition of it, yet, while I have woken up a couple...errm, that's exactly 2!!). Note particularly the downtick count and the negative replies from some of the more vocal "expert" regulars here, one of whom pumps a blog that he claims is "on top of it all". LOL.

Compliments also for this (1850143) succinct warning from around the same time. I was saying the same here 2 years ago and getting regularly junked. There are [still] very few here who see the plans, only the visible symptoms ... but at least we now get few, if any, junks today.

I'm going to check out your blog....

 

PS. Paul Craig Roberts is a fraud...controlled opposition. He's a member of the [religious right] Council on National Policy ... along with many other unsavoury Luciferians that have "graced" Alex Jones' shows. [Edit: LOL ... he's got another one on yesterday's show, Joseph P. Farah!!]

Fri, 07/20/2012 - 06:49 | Link to Comment Ghordius
Ghordius's picture

Aquarius, I wish I could disagree with you. And your "IMO the US will collapse economically and monetarially before end 2012 - and it has already collpased in terms of the socio-economic stability, morally, ethically and spiritually." is chilling. I fervently hope you will be proven wrong and our US cousins will find some way out of this...

Meanwhile, I have some hope for our UK brethen...

Fri, 07/20/2012 - 06:22 | Link to Comment Nussi34
Nussi34's picture

"Implement" in greece means "write on a piece of paper" and store it in the basement.

Fri, 07/20/2012 - 06:51 | Link to Comment eckart
eckart's picture

"Plan beats no plan"

Fri, 07/20/2012 - 10:36 | Link to Comment ddtuttle
ddtuttle's picture

The more this theater goes on the more I think that the language barrier is much bigger than anyone admits: these people don't have clue what the other guy is talking about.  I know several Europeans who claim to speak 4 + langauges, but their english is nowhere near good enough for subtle negotiations.  I now believe that monetary unions between people who cannot talk to each other are hopeless.

Think about Canada and USA.  We have what amounts to a monetary union that works much better than anything in the EU.  Why?  We can communicate.  Note that the only pain in the side is Quebec (which is fabulously irrational BTW), and guess what? They speak French.  I was recently well into Quebec (i.e., not in Montreal), and was shocked that hotel clerks spoke english about as well as I speak french (not).

Even predictable, tolerant Belgium is split between the french speaking Walloons, dutch speaking Flemish and german speaking belgians.  Note that they cannot form a government.  

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