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Europe's Game Of Chicken Enters The Twilight Zone

Tyler Durden's picture




 

Europe's game of chicken, all of which is geared to one simple thing - to spook the Greeks into voting for pro-bailout powers, and against Syriza - has now officially entered the Twilight Zone. In the latest episode of what can now simply be described as the world's most entertaining yet terrifying mutual assured destruction showdown, because should Greece leave, the destruction, at least in the short-term, will impact both Europe and Greece, although Greece will recover far, far faster as the standard of living there has already been crushed (which incidentally is the primary reason why Europe has lost control over the situation: without the carrot of welfare state promises, a Ponzi regime is meaningless), we learn that on Monday a Eurogroup Working Group held a teleconference in which officials "agreed to prepare for individual contingency plans if and when Greece exits." Here is the problem - the contingency plan can be summarized in one word: panic. Because absent a full blown coordinated monetary intervention, Europe's individual states are completely powerless, and they know it. Sadly, and this is where the farce and charade are complete, the Greek people know it too. As a result, this little adventure, leaked subsequently to Reuters, loses all utility. But we expect many more such escalations from Europe: after all we have nearly a full month before June 17: plenty of time to crush the market in order to get a reaction out of the Greek voters, European politicians and ECB bankers, just as Citigroup suggested. Only issue is, the more Greek voters are prodded into a corner, the more likely they are to simply snap.

From Reuters:

The agreement was reached during a teleconference of the Eurogroup Working Group (EWG), which started at 9:00 a.m. EDT (1300 GMT) on Monday and lasted for about one hour.

 

As well as confirmation from two officials, Reuters has seen a memo drawn up by one member state detailing some of the elements that euro zone countries should consider.

 

The EWG consists of officials who prepare meetings of finance ministers and also form the board of the temporary bailout fund, the European Financial Stability Facility (EFSF).

 

"The EWG agreed that each euro zone country should prepare a contingency plan, individually, for the potential consequences of a Greek exit from the euro," said one euro zone official familiar with what was discussion on the call.

 

"Nothing was prepared so far on the euro zone level for now, for fear of leaks," the official said.

 

A second official confirmed the EWG agreement on Monday.

 

The document detailed the potential costs to individual member states of a Greek exit and said that if it came about, an "amiable divorce" should be sought. It also said that Greece decides to leave, support could be given from the EU/IMF to help it do so.

And since the EU will be in the process of falling apart, and thus unlikely to provide much if any support, the only real source of funding will be the IMF.

That's right: you, America.

 

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Wed, 05/23/2012 - 08:41 | 2454389 BandGap
BandGap's picture

Always glad to help.

 

Wed, 05/23/2012 - 08:50 | 2454423 slaughterer
slaughterer's picture

Last summer we had a regular spate of EuroRumors coming out at 3:30pm on sell-off days to prop the market.  I cannot see what might fuel these EuroRumors:  the situation is so completely dismal one cannot even fabricate a hopeful lie about it.

Wed, 05/23/2012 - 10:02 | 2454641 ghostzapper
ghostzapper's picture

You mean Simon Hobbs imploring the public to listen to Euro leaders and trust them might not be enough this time?

Wed, 05/23/2012 - 10:13 | 2454680 ghostzapper
ghostzapper's picture

For me, the true "game over" is when they announce the next printing orgy and after a couple days risk assets do NOT react well.  Yikes!  Look out below when that happens. 

Wed, 05/23/2012 - 08:52 | 2454429 malikai
malikai's picture

We do appreciate you suckers, er, Americans. We just don't like to let you know it. You know, it's like the old addage: Treat her mean, keep her keen.

Wed, 05/23/2012 - 09:09 | 2454476 mick_richfield
mick_richfield's picture

I say we send them Hershey bars, oranges, and nylon stockings.

Or maybe lawyers, guns, and money?

Wed, 05/23/2012 - 09:11 | 2454482 mick_richfield
mick_richfield's picture

Or just Marines?

Wed, 05/23/2012 - 09:12 | 2454484 mick_richfield
mick_richfield's picture

drones ?

Wed, 05/23/2012 - 09:31 | 2454549 The Alarmist
The Alarmist's picture

Perhaps Maxwell Smart's best succession of threats started with
"You are surrounded by the Sixth Fleet" and finished with
"Would you believe a school of angry tuna?"

Wed, 05/23/2012 - 10:41 | 2454629 The Big Ching-aso
The Big Ching-aso's picture

 

 

The Greek version of The Twilight Zone involves a man working 9 to 5 who then retires at 65. 

Wed, 05/23/2012 - 09:11 | 2454483 pods
pods's picture

Do you think the majority of us can even comprehend any of this?

http://www.peopleofwalmart.com/

Nuff said!

pods

Wed, 05/23/2012 - 09:35 | 2454564 malikai
malikai's picture

When I feel down after a bad day I often go there and find that instead of making me feel better, it further depresses me. It does make me laugh for a little while though.

Ever been to a Walmart in China? Completely different experience.

Wed, 05/23/2012 - 10:18 | 2454696 BobPaulson
BobPaulson's picture

That website, along with photos of WWI trench scenes or skulls left by the Khemr Rouge pretty much convince me the human race needs a reset. If only we could hop in the Enterprise and drop one of these

http://www.youtube.com/watch?v=NM1r37zIBOQ

Wed, 05/23/2012 - 08:41 | 2454390 Fips_OnTheSpot
Fips_OnTheSpot's picture

BRACE FOR IMPACT.

Wed, 05/23/2012 - 09:07 | 2454473 francis_sawyer
francis_sawyer's picture

Pass the hat...

Wed, 05/23/2012 - 08:42 | 2454398 cossack55
cossack55's picture

snap, crackle, pop, pass the ouzo

Wed, 05/23/2012 - 08:44 | 2454405 Bagsnatcher
Bagsnatcher's picture

"Eurogroup Working Group (EWG)" - hahaha They are so much in panic even that they cannot come up with a good acronym. Cheezus, this will collapse ....

Wed, 05/23/2012 - 08:53 | 2454434 Nussi34
Nussi34's picture

EWG was the name for the EU in Germany before they came up with the superstate plans!

Wed, 05/23/2012 - 09:33 | 2454560 nodhannum
nodhannum's picture

Eurogroup Working Group (EWG)?  Give us a break. Work is a four letter word in europe with the exception of a few countries.

Wed, 05/23/2012 - 08:49 | 2454407 bdc63
bdc63's picture

"without the carrot of welfare state promises, the ponzi regime is meaningless"

in those 12 words lies the heart of the matter

Wed, 05/23/2012 - 08:46 | 2454409 the not so migh...
the not so mighty maximiza's picture

The Greeks will snap, but not in the direction the bankers are gambling on.

Wed, 05/23/2012 - 08:47 | 2454412 rsnoble
rsnoble's picture

I'm not worried about it I live in the US and Ben already said he'd sheild us from this. LMFAO!

I love the IMF reference..........so I get to get flushed with Greece awesome. It doesn't matter, most people realize that these fkn idiots have already taken things past the point of no return, there is no fixing it.  One road is faster than the other that's all it amounts to now.

Wed, 05/23/2012 - 08:48 | 2454414 Sean7k
Sean7k's picture

Rajoy,"Spanish Banks have no risk". I just about ruined a keyboard, but they say belly laughter is very healthy for you.

Wed, 05/23/2012 - 08:49 | 2454419 rsnoble
rsnoble's picture

Now all we need is war with Iran.  That will surely fix things.

Wed, 05/23/2012 - 08:52 | 2454430 LULZBank
LULZBank's picture

With Pakistan asking for $5000 per vehicle (up from $250) NATO withdrawl, it might be cheaper to move them over to Iran.

Wed, 05/23/2012 - 08:53 | 2454436 the not so migh...
the not so mighty maximiza's picture

inflation is bitchin

Wed, 05/23/2012 - 08:49 | 2454420 youngman
youngman's picture

What the problem is there is no leader....no one is saying do this...or that.....they are all just treading water until someone takes charge...if no one does they all drown over time.....if someone makes the choice...either the EU...or Go it alone....then you can act on what needs to be done...and can make progress in your game plan...right now its a waste to do anything...they need direction badly..right now...or many more people will drown..

Wed, 05/23/2012 - 08:58 | 2454441 Zero Govt
Zero Govt's picture

Greece does not need a "leader" or even a Govt (see Belgium) it needs to burn the institution of Govt to the ground.. problem solved

it is Govt that has been wrecking their economy and Govt that has been wrecking, er, Govt

at some point someone has got to wake up and realise what the problem is:

Govt is the problem, not the solution

Wed, 05/23/2012 - 08:58 | 2454446 GeneMarchbanks
GeneMarchbanks's picture

You, sir, have been mindfucked by Thatcherism to the point of complete retardation.

Please refrain from posting and seek immediate help.

Wed, 05/23/2012 - 09:02 | 2454459 Sean7k
Sean7k's picture

You, Sir, have been mindfucked by Stockholm Syndrome. 

Please refrain from posting and seek immediate euthanasia.

Wed, 05/23/2012 - 09:39 | 2454575 GeneMarchbanks
GeneMarchbanks's picture

Do you even know where Stockholm is, you buttsnake? Cute suggestions, please elaborate on these elucidatory revelations. So what you guys are saying is we must end all 'gov't'?

So enlightening, so simple, yet that really is how you children 'think' isn't it?

Wed, 05/23/2012 - 11:04 | 2454874 illyia
illyia's picture

What he is saying is that government is so corrupted, convoluted - so enormous and powerful (militarily, data control, etc.) that shrinking it is impossible. The course we are on is unresolvable. The debt is too large and the resources too few.

The only solution is actually inevitable regardless of opinions to the contrary: History makes that clear. The current leadership and structure must crash. The point is that it will anyway - it is just a matter of time. The longer it takes the more blood and treasure (largely in the form of unity and confidence) that will be sacrificed.

Ending government is a euphemism for correction by people who are very angry and impotent. It is a form of retaliation by those unable to effect change. That very frustration is the trigger for change if nothing can be done.

And, nothing can be done that will meaningfully change things.

Of course the alternative is "hopium" for those less reality inclined...

Wed, 05/23/2012 - 13:59 | 2455854 Sean7k
Sean7k's picture

Sweden. So, it's OK for you to make these suggestions, but no one else?

All governments, WITHOUT EXCEPTION, result in debt slavery and fascism/totalitarianism/dictatorship- anything but liberty, responsibility, private property and contracts.

All governments, without exception, tax the people until poverty results in revolution or social desintegration.

Therefore, why have governments? It is a failed concept that allows a small minority to live off the labor and wealth of the majority. Why is that so hard to understand? 

It is governments that create wars of mass devastation. It is government that empowers corporations and monopolies through its' police power. There is nothing good about government. 

Euthanasia optional, but please get an education...

Wed, 05/23/2012 - 09:16 | 2454507 mick_richfield
mick_richfield's picture

By resorting to an ad hominem attack, insults, and hostility -- you just said:

"I'm afraid you might be right, and I hate that but can't refute it."

Wed, 05/23/2012 - 10:03 | 2454651 The Big Ching-aso
The Big Ching-aso's picture

 

 

I'm sensing you don't like government.

Wed, 05/23/2012 - 08:50 | 2454421 LULZBank
LULZBank's picture

Playing chicken with people who are already suicidal does not work.

Wed, 05/23/2012 - 08:50 | 2454422 CreativeDestructor
CreativeDestructor's picture

STOP THE PRESS

Chuck Norris was spotted arriving for the 2nd day of European summit.  Panic is off, phew.

Wed, 05/23/2012 - 08:58 | 2454447 slaughterer
slaughterer's picture

Here's Chuck trying to fight off this market.

http://www.youtube.com/watch?v=z2XUgE6g7XU

Wed, 05/23/2012 - 09:11 | 2454480 francis_sawyer
francis_sawyer's picture

Here's Chuck Norris vs. Dividing by zero

~~~

http://www.youtube.com/watch?v=_vTbziVxORQ

 

Wed, 05/23/2012 - 08:52 | 2454424 jus_lite_reading
jus_lite_reading's picture

When you're in too deep, you're in too deep. It's already game over for the EU... we're just waiting to see the epic fail finally become public. With elections coming up, should not be too long...

 

Wed, 05/23/2012 - 08:56 | 2454425 Zero Govt
Zero Govt's picture

"...the contingency plan can be summarized in one word: panic."

political planning looks like the Greek Finance Ministries offices ZH pictured the other day, an absolute mess

..how'd you think every political office in the Western world got into such deep, deep, debt with no plan to repay any of it???

Wed, 05/23/2012 - 08:52 | 2454426 Ignatius J Reilly
Ignatius J Reilly's picture

Farage is right.  That ZH video from yesterday should go viral in Europe.  but it wont matter.  In a choice between certain temporary pain and a long slow destruction, human nature is such that the vast majority of people will choose the latter and denial.  That is why "hope" sells.

Wed, 05/23/2012 - 08:52 | 2454427 DutchDude
DutchDude's picture

It's not even about Greece anymore, it's about Spain and it's been about Spain for over a year now.

Whatever happens, it'll just take a bit longer, but everything WILL fall apart. It's math, math doesn't hide stuff, it's there for everyone to see if they choose to do so.

Prepare, dig in, and wait for the fallout to pass over...

Wed, 05/23/2012 - 09:03 | 2454462 Peter Pan
Peter Pan's picture

Spot on. The maths has never added up, nor have the forecasts ever been met. The Europeans remind me of someone who is trying to build in the middle of an earthquake. It is only now that they have realised that thy need political union, a transfer union etc etc. Too late now.

Wed, 05/23/2012 - 09:12 | 2454486 DutchDude
DutchDude's picture

This little clip always reminds me of the europhile bastards who just don't want to listen to fundamental critics on the EZ:

http://www.youtube.com/watch?v=yUpbOliTHJY

Wed, 05/23/2012 - 08:59 | 2454448 Peter Pan
Peter Pan's picture

Greece should have defaulted two years ago without notice and expose the whole charade which would have lead to the collapse of a badly thought out experiment.

Wed, 05/23/2012 - 09:00 | 2454452 BudFox2012
BudFox2012's picture

Rank Amatuers over there in Europe, can't get a damn thing right.  We should send them Bernie Madoff and Ben Bernanke - now there's two guys that know how to run a Ponzi scheme...

Wed, 05/23/2012 - 09:05 | 2454467 Peter Pan
Peter Pan's picture

It's funny how it was a Greek American by the name of Markopoulos who sniffed a rat years before the authorities ever got their arses into gear in catching Madoff.

Wed, 05/23/2012 - 09:01 | 2454454 midgetrannyporn
midgetrannyporn's picture

the housing bubbles fueled german industry. now comes the bust and "no bailout for you!"

 

germany wins!

Wed, 05/23/2012 - 09:01 | 2454455 WaEver
WaEver's picture

those who say greece will recover far far faster should get their brains checked. Exactly what will they export and exactly whom will invest in greece after seeing what a mess the country is.

Wed, 05/23/2012 - 09:03 | 2454461 the not so migh...
the not so mighty maximiza's picture

Your right the Eurpoean Union must hand over 50 trillon to Greece.. STAT

 

Wed, 05/23/2012 - 20:25 | 2457177 earleflorida
earleflorida's picture

question is,... who's gonna pay for this war -- NATO?

Wed, 05/23/2012 - 09:07 | 2454471 LULZBank
LULZBank's picture

Post "Peak Oil" the modern import/export and Foreign investment model will not matter.

Wed, 05/23/2012 - 09:09 | 2454477 Peter Pan
Peter Pan's picture

True so true. But it's when individuals and nations find themselves at the bottom that they finally get motivated enough to do something about it. Motivation is far more powerful that European posturing and impossible demands.

Wed, 05/23/2012 - 10:12 | 2454677 MS7
MS7's picture

See Paul Krugman:

"People who say that Greece can’t benefit from devaluation because it doesn’t have any exports just haven’t done their homework."

http://krugman.blogs.nytimes.com/2012/05/15/more-on-greek-and-argentine-...

They are a mess now because of austerity. Also EU rules have limited their agricultural production.

Wed, 05/23/2012 - 09:02 | 2454458 Doubleguns
Doubleguns's picture

Iceland suffered for two years. Now they dance in the streets, glad to not be tied to this fiasco and they are prosecuting bankers. I'm sorry I just dont see a down side here.

 

http://beforeitsnews.com/story/2019/906/Icelanders_Didnt_Bail_Out_The_Ba...

Wed, 05/23/2012 - 09:32 | 2454546 BeetleBailey
BeetleBailey's picture

Nice link Doubleguns...

Indeed...Iceland.....why doesn't the MSM broadcast this?

Simple answer..it makes too much sense!

Many people in the US are dependent on government. It's too big of a country, LOUSY with illiterates and agenda-assholes, fucked UP with religious nonsense, lobbied to the point of lunacy, LOUSY with a military that is bent on policing everyone, a BROKEN, predatory "justice" system, and too damn fucking BIG to even consider doing it this way.

Iceland has NONE of the above hamstrings. That's why they could do it.

Iceland to the US is akin to a "lab" experiment. Kind of like Rhode Island ex-communicating and handling it's affairs "in-house".

Throw in the same percentages of ILLEGALS, angry (usually dumb as JACKASS voters), takers, freeloaders, and a Congress insulated and out of touch, and Iceland would have the same problems.

Iceland has a largely indigenous population, no military to placate, no illegal aliens to reign in/feed, etc.

 

Wed, 05/23/2012 - 09:02 | 2454460 Yes_Questions
Yes_Questions's picture

 

 

Eurogroup Working Group

Allow ourselves to introduce...ourselves

Wed, 05/23/2012 - 09:06 | 2454468 The Alarmist
The Alarmist's picture

This would be better played as a game of Truth or Dare.

Wed, 05/23/2012 - 09:11 | 2454479 tocointhephrase
tocointhephrase's picture

Confused, all they do is lie or rather they dare not tell the truth!

Wed, 05/23/2012 - 09:07 | 2454474 Sean7k
Sean7k's picture

Couple of more signatures on the stabilization mechanism and the whole thing is over. It would appear this is the real play here. Then, the taxation and austerity begins in earnest and nothing short of complete revolution will stop it. Banker heaven and citizen hell or heil?

Wed, 05/23/2012 - 09:15 | 2454494 LawsofPhysics
LawsofPhysics's picture

LMFAO!  America is broke, America will not bailout anyone.  Or did you mean to say that the "reserve currency" will bailout europe?  In that case, you are talking about China.  I mean, they want to have the world's reserve currency right?  Fucking let them have it.  Here China, now you get to bail everyone out, china, china...   < crickets >

I guess they didn't fully understand what being the reserve currency holder meant. 

All economies are local and getting more local by the second.  In the absence of any rule of law, possession is the law.  Same as it ever was.

Wed, 05/23/2012 - 09:45 | 2454548 LULZBank
LULZBank's picture

No, but we need the economy going. We need the people who already have a mortgage, a car, a wide screen TV and an iPhone to buy the same shit over again, in order to boost production and exports and imports.

German is the leading exporter of cars and high quality machinery, they can keep exporting those to infinity and beyond and German economy will always stay strong and never recede.

Rich getting richer and poor getting poorer is the excellent scenario where consumption and spending growth can flourish, even if we were on an infinite planet.

What people cannot comprehend is, hypothetically speaking, once everyone in the world has a car, a phone and a TV, they would not buy any more of it and those industries will go out of business and bankrupt.

I know its not that simple, but just a foundation for understanding the concept.

The big cull is coming to, to help generate "growth" but Got Oil?

Wed, 05/23/2012 - 09:37 | 2454569 fiercekitty
fiercekitty's picture

Can't we just print more money and use that to bail everyone out?

Wed, 05/23/2012 - 09:48 | 2454601 LULZBank
LULZBank's picture

I can print money and bail everyone out but I need everyone to pay me a comission in my own printed money.

Isint that a cunning plan! ;-)

Wed, 05/23/2012 - 09:31 | 2454552 Blue Dog
Blue Dog's picture

Greece never should've been part of the euro in the first place. 10% of the population is made up of unionized government workers. But the whole euro mess is being deliberately orchestrated to create enough chaos across the world to bring about a one-world government.

These people aren't stupid. If they really wanted to increase tax revenues they'd lower tax rates because tax rates and revenue move in opposite directions.

 

Wed, 05/23/2012 - 09:39 | 2454576 jmcadg
jmcadg's picture

"The EWG agreed that each euro zone country should prepare a contingency plan, individually, for the potential consequences of a Greek exit from the euro," said one euro zone official familiar with what was discussion on the call.

EVERY MAN FOR HIMSELF BITCHEZ!

Wed, 05/23/2012 - 09:55 | 2454614 Bullionaire
Bullionaire's picture

"In the latest episode of what can now simply be described as the world's most entertaining yet terrifying mutual assured destruction showdown, because should Greece leave, the destruction, at least in the short-term, will impact both Europe and Greece, although Greece will recover far, far faster as the standard of living there has already been crushed (which incidentally is the primary reason why Europe has lost control over the situation: without the carrot of welfare state promises, a Ponzi regime is meaningless), we learn that on Monday a Eurogroup Working Group held a teleconference in which officials "agreed to prepare for individual contingency plans if and when Greece exits."

 

WOW Tyler - perhaps your best run-on sentence yet!


Wed, 05/23/2012 - 10:11 | 2454676 tim73
tim73's picture

"Greece was formally expelled from the Latin Monetary Union in 1908. It was readmitted in 1910, however".

Most likely this will happen again.

Wed, 05/23/2012 - 10:14 | 2454684 chenn
chenn's picture

"...without the carrot of welfare state promises, a Ponzi regime is meaningless"

 

So how long until they quit trying the carrot and really get out the stick.

Wed, 05/23/2012 - 10:22 | 2454708 Whoahthere
Whoahthere's picture

Who says Greece will exit first? With all eyes on Greece (distraction), no one considers maybe France? So much behind the scene posturing (deal making), what finally makes its way to MSM, is smoke and mirrors.

Wed, 05/23/2012 - 10:16 | 2454691 Bastiat009
Bastiat009's picture

I hope the Greeks didn't have gold because that would be the last straw.

Wed, 05/23/2012 - 11:49 | 2455045 mick_richfield
mick_richfield's picture

 

Timeline for European Unity

1812: French discover that they cannot unify Europe with short guy with funny sideways hat.

1918: Germans discover that they cannot unify Europe with mean guy with funny spiky helmet.

1945: Germans discover that they cannot unify Europe with mean guy with funny moustache.

1946: Americans and Russians discover that they can only unify Europe by dividing it into 2 big pieces and threatening to hold their next nuclear war at the boundary.

1989: Russians get sick of it and leave.  Americans stay but only to extract money.  Screw the unity.

2012: French and Germans discover that they cannot unify Europe with business guys with funny money.

 

I feel that I have begun to detect a pattern.

Wed, 05/23/2012 - 11:53 | 2455073 slewie the pi-rat
slewie the pi-rat's picture

i think we should bring taiwan and greece into the US together, with taiwan's papers getting signed first

go figure on the stars:  52 and waiting for the joker?

slewieInt'lAirport in Athens and tylerInt'l in taiwan will offer direct flights every 1/2 hour to and from vegas, so we'll keep that really simple, to start...

oh!  any questions, direct them to the zH office via e-mail, ok?

Thu, 05/24/2012 - 00:16 | 2457820 EZYJET PILOT
EZYJET PILOT's picture

Who on earth believes that 80% of Greeks want to stay in the Euro? It sounds like another lie to me pushed on us by the media.

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