This page has been archived and commenting is disabled.

Europe's Other "Union" Is Ending

Tyler Durden's picture




 

Almost a year ago, we observed the first crack in that other fundamental core of the European "union" experiment - the Schengen visa-free and customs-union zone. We wrote: "While Europe may have sold its soul to the [monetary union] devil over the past decade it still retained its beating heart - the concept that served at the core of the European Union: the so-called customs union, or a mobile, borderless workforce. Alas, the heart has just entered ventricular fibrillation, as for the first time, a country, Denmark, has taken what appears to be the first step toward defecting from Europe's 60 year old experiment of intimate, and sometimes, forceful unification. As EUBusiness reports: "Denmark will reintroduce controls at its intra-EU borders with Germany and Sweden, Finance Minister Claus Hjort Frederiksen said Wednesday following an agreement between the government and the far-right. "We have reached agreement on reintroducing customs inspections at Denmark's borders as soon as possible," Hjort Frederiksen told reporters."

It was also then that we predicted the inevitable rise of the right (as demonstrated most vividly a week ago in the French presidential election) in Europe and its implications on the cohesiveness of the transnational European state:

"And while Denmark is the first to officially defect, even under a palatable explanation, it surely won't be the last: "The idea of controls at borders within the EU, also defended by Italy and France, was pressed by the far-right Danish People's Party and its head Pia Kjaersgaard, who argued controls would counter illegal immigration and organised crime." One thing we have seen in Europe is that courtesy of the relentless ebb of austerity, the far-right is progressively gaining a foothold in every country. And one can be certain that the populist whiplash against all things European, will not be contained to merely the monetary arena, but will rapidly devolve to restoring borders, following which the EU will exist only in history books."

This was in May 2011, and looking back at the Denmark case, we would call it the beginning of the end. A week ago, Spiegel had a very poignant follow up on this story, which unfortunately will have a sad ending:

Germany and France are serious this time. During next week's meeting of European Union interior ministers, the two countries plan to start a discussion about reintroducing national border controls within the Schengen zone. According to the German daily Süddeutsche Zeitung, German Interior Minister Hans-Peter Friedrich and his French counterpart, Claude Guéant, have formulated a letter to their colleagues in which they call for governments to once again be allowed to control their borders as "an ultima ratio" -- that is, measure of last resort -- "and for a limited period of time." They reportedly go on to recommend 30-days for the period.

 

Of course, using catchphrases like "ultima ratio" and "limited period of time" is supposed to make such policies sound reasonable and proportionate. After all, the reasoning goes, it's just a few occasional border controls for up to 30 days. What's the big deal, right?

 

But the proposal is far from harmless and would throw Europe back decades. Since 1995, the citizens of Schengen-zone countries have gotten used to freely traveling within Continental Europe. Next to the euro common currency, free movement is probably the strongest symbol of European unity. Indeed, for many people, it's what makes this abstract idea tangible in the first place.

And the Spiegel punchline:

To throw this achievement into doubt now is a vote of no confidence in Europe.

Yet while the Spiegel story discussed some indefinite event in the future as the first catalyst of the "temporary" unwind of Schengen, we now know just what it is. From the Associated Press:

Spain temporarily restored border checks in its northeast and at two major airports early Saturday in a bid to discourage protesters entering the country ahead of a European Central Bank meeting in Barcelona.

 

The Catalan regional capital is to host an ECB governing council assembly on May 3 as the financial crisis in Spain deepens, with 24.4 percent of the work force unemployed and the economy lurching into its second recession in three years.

 

Spanish authorities suspended the Schengen Treaty, which allows unrestricted travel inside member nations, and imposed controls at six border crossings with France and at Barcelona and Gerona international airports.

 

Security forces have been strengthened with 2,000 extra police on duty until midnight on May 4, when the restrictions are due to end.

 

At the La Jonquera border crossing in the foothills of the Pyrenees Mountains, around 50 police reinforced normal border guards and randomly stopped vehicles to ask for identity and vehicle documents.

Once again, the official version:

The office of Prime Minister Mariano Rajoy said on its official website that the text of the Schengen agreement states that free movement of people in borderless Europe can be stopped temporarily "if a serious threat to public order or domestic security exists."

Ah yes, because there have never been high level summits in Spain before that needed border closing to protect the participants from "riotous elements."

Here is the real reason - Spanish unemployment:

What today's news of out Spain means is that just like French discontent with economic policies is starting to have direct consequences in the form of a rapid shift to the right, so Spain is now too beginning to shut its borders to all those other visa-free traveling Europeans who are "poaching" jobs from the locals. Whether or not they are, is irrelevant (and as we showed yesterday, even when threatening job influx is a moot point - recall that Mexicans are now emigrating from the US -  US companies opt to hire foreigners over locals in a 3 to 1 ratio).

What is relevant is that very soon more and more political leaders who are helpless to do anything to prevent their economic collapse under the rigidity of a monetary regime that benefits one at the expense of all else, will proceed to close their borders to free European travel, then the European customs unions will fall, and then finally Europe will be nothing but a loose collection of countries that hate not only each other but the minorities that dwell within, all in one big agenda to scapegoating someone else for the failure of the world's most destructive economic experiment.

Sadly this won't be the first time that Europe has had a continent-wide effort at isolating and blaming someone "else" for all the world's problems.

In the meantime, we suggest readers save a copy of this "map" of what Europe was supposed to be. As a memento. Because the current iteration of peak-Europe is coming to a rapid end as more and more "votes of no confidence" in Europe reverberate from countries near and far.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 04/28/2012 - 16:13 | 2382599 CPL
CPL's picture

Boom.  Head shot.

Sat, 04/28/2012 - 16:29 | 2382631 AldousHuxley
AldousHuxley's picture

Union means 1 party becomes subservient to another to avoid fighting with each other against greater evil.

 

You can't have all quarterback wannbes in a football team nor can you have just benchwarmers waiting for someone else to do the hard lifting.

 

Europe has a German quarterback, and everyone else is sitting on the bench while Chinese have player skill depth to 10x.

 

German had good governance in order to pay WWII debts. Meanwhile other countries just fucked around and turned into tourist history museum. Watch out....Germans have history of running over her neighbors with military technology. only thing keeping them in check is American boots on the ground. Otherwise, Germany would have invaded Greece already.

Sat, 04/28/2012 - 16:41 | 2382650 markmotive
markmotive's picture

Reality bites.

Jim Rogers gives a dose of reality to the WSJ

http://www.planbeconomics.com/2012/04/28/wsj-interview-jim-rogers-on-mar...

Sat, 04/28/2012 - 18:37 | 2382772 Ahmeexnal
Ahmeexnal's picture

Schengen treaty is dead: Spain seals its border with France.

http://www.abc.es/20120428/espana/abci-cierre-schengen-201204281709.html

Sat, 04/28/2012 - 18:45 | 2382774 Ghordius
Ghordius's picture

Officially it's temporary, they want to keep protesters out before the ECB meeting in Barcelona on May 3rd. Hilarious, suspend (as provided for per treaty) one treaty so that protesters can't reach their protests against another treaty.

Note in the article: "Antisistemistas"! Now that's a catchy label, AntiSystemist.... Haven't seen it much yet...

Sat, 04/28/2012 - 20:19 | 2382882 debtor of last ...
debtor of last resort's picture

Fuck you asshole

want a smoke?

Sat, 04/28/2012 - 22:20 | 2383011 nmewn
nmewn's picture

Well, at least here (so far) I can go to Georgia if I want, for whatever reason or no reason at all. And not pass through customs...lol.

"The office of Prime Minister Mariano Rajoy said on its official website that the text of the Schengen agreement states that free movement of people in borderless Europe can be stopped temporarily "if a serious threat to public order or domestic security exists."

Seig Heil...glad all the "best & brightest" most competent, most enlightened got it all sorted out...finally ;-)

Sun, 04/29/2012 - 03:24 | 2383257 DutchR
DutchR's picture

Cool trick to get more money to Amsterdam, start the "wietpas" in the south (Limburg, Noord-Brabant en Zeeland) and then evaluate (2013) if it works or not.

And they want the cannabis users to register on a list so the city can check if they are legit-smokers, never mind the muppits working for the government that smoke....

 

And just because it is prohibited people stop doing it, right......

Sun, 04/29/2012 - 05:14 | 2383317 Nussi34
Nussi34's picture

You can´t have capital transactions control  with open borders!

Sat, 04/28/2012 - 16:57 | 2382666 The Reich
The Reich's picture

For the last 67 years in Germany there has been a permanent mind control to subpress agressive behaviour. There is not the slightest intention to have another war in Yrope. That's just a long-cherished British flight of fancy.

Sat, 04/28/2012 - 21:34 | 2382953 Lednbrass
Lednbrass's picture

Probably correct, todays Germans certainly seem to be even paler, weaker shadows of their forebearers then the average American. Its a sad state of affairs. 

Sat, 04/28/2012 - 17:33 | 2382696 moskov
moskov's picture

Germany should Team up with China and Russia to establish a Euroasia union of currency peg. That will leave Anglo Saxon in the real pain

Sat, 04/28/2012 - 18:49 | 2382781 disabledvet
disabledvet's picture

We're just a bunch of fun loving Scots. Lighten up!

Sat, 04/28/2012 - 18:47 | 2382777 disabledvet
disabledvet's picture

Hahahaha! What you smoking'? "Germany" isn't invading a whorehouse...let alone Greece. If Greece can just work out its issues on its own it'll be okay...not fine, but okay. Don't kid yourself... open borders are HARMED by austerity not helped. Let a "soft nationalism" emerge..."this is life." the..."Germans" (which ones are you speaking of?) I would argue...in spite of their contra temps towards Spain...would be the first to agree.

Sun, 04/29/2012 - 05:16 | 2383320 Nussi34
Nussi34's picture

Greece is a whorehouse!

Sat, 04/28/2012 - 20:10 | 2382870 philipat
philipat's picture

Why would they have an Indonesian flag in this diagramme. To the best of my knowledge Indonesia is not a member of the Schengen area?! Poland is, but that flag is, ahem, bottoms up!!

Sun, 04/29/2012 - 07:09 | 2383387 Börjesson
Börjesson's picture

That's probably the flag of Monaco.

Sat, 04/28/2012 - 16:15 | 2382601 zilverreiger
zilverreiger's picture

actually europe was pretty right wing and is now turning left again which will destroy all the bs

Sat, 04/28/2012 - 17:01 | 2382669 Setarcos
Setarcos's picture

Uh!?  Seems that you are a victim of the topsy-turvy propaganda that prevailed in the US since soon after WW2, which makes it nigh on impossible to discuss anything political/ideological with most people in the US.

It is almost guaranteed that the terms 'liberal', 'socialist, 'progressive', etc. will be stood on their head to equate with 'fascist', i.e. right-wing in any intelligible discourse.  Truly Orwellian.

Liberal = dictatorial.  Socialist = authoritarian.  Progressive = regressive.  And of course Obama, Bernanke and whole raft of other fascists are liberal-progressive-communists.

FYI Sweden, especially, serves as an example of European socialism, or 'leftist' type of government ... well it did until the general drift to the 'right' took hold from the 1980s.

France was also 'leftist', but now there is a strong 'rightist' trend.

Personally I always been inclined towards the 'left', e.g. my views have always been fairly liberal/tolerant and egalitarian, but that's beside the point, except for making it obvious to me that the 'West', generally, has become iincreasingly illiberal, intolerant and unequal over the last twenty-odd years, i.e. it has drifted to the 'right' and, now, to the point that it's essentially fascist.  All that's overtly missing, so far, is intense nationalism and accompanying militarism though, arguably, the US long-since comprizes that.

Sat, 04/28/2012 - 17:32 | 2382693 zilverreiger
zilverreiger's picture

no, theres a clear move to the left (france, spain) that will be the undoing of the eurozone, and not like the article says to the right

people will not stand for privatising the profit and socializing the debt.

Sat, 04/28/2012 - 17:47 | 2382710 GMadScientist
GMadScientist's picture

Right...that's why the socialist candidate in Spain was replaced by the PP candidate recently.

France? Sarkozy lost as many people to Lepen as to Hollande.

Nationalism (of every stripe) is up, not leftism.

 

Sat, 04/28/2012 - 18:05 | 2382735 zilverreiger
zilverreiger's picture

The proof will be in the pudding, but I'm just saying were moving away from the centre right all countries except germany had in the coming and present round of elections. (denmark, netherlands, greece, france, spain) And it will be the end of the eurozone because they will toss the 3% norm out.

Sat, 04/28/2012 - 18:02 | 2382709 Ghordius
Ghordius's picture

Setarcos, I agree, the American Political vocabulary has changed while the European hasn't...

If you you want to explain the european spectrum to someone that knows the Nolan Chart (libertarians usually know it, it's theirs), you'd have to put it so:

 

1Q Personal Freedom: HIGH / Economic Freedom LOW

US: Left, Liberal, (Democrat*), (Republican*)

EU: Left, Socialist*, Social Democrat*, Liberal Democrat*, PostCommunist*, Labour*

 

2Q Personal Freedom: HIGH / Economic Freedom HIGH

US: Libertarian, (Democrat*), (Republican*)

EU: Liberal*, Liberal Democrat*, NeoLiberals (dispregiative)

 

3Q Personal Freedom: LOW / Economic Freedom HIGH

US: Right, Conservative, (Republican*), (Democrat*)

EU: Right, Conservative, Christian Democrat, Tory*

 

4Q Personal Freedom: LOW / Economic Freedom LOW

US: NeoCons (dispregiative?), (Republican*), (Democrat*)

EU: National Socialist (Nazi), Communist*, Fascist, PostFascist*, Tory*, Labour*

 

(*) denotes labels to existing & active political parties partecipating to power from time to time

 

Now please explain to me how it's possible to discuss anything if even the labels become meaningless... talk about not finding your ass without a chart...

Sat, 04/28/2012 - 21:41 | 2382962 Lednbrass
Lednbrass's picture

Pretty well charted, in the US this is also sometimes referred to as the "Political Compass". I would add one thing though to round it out in terms of labels used; 4Q US Personal/Economic Freedom low - you should add Progressive, they are the Democratic Party counter to the Republican Neo Cons. Both of  their ideologies center around heavily centralized power and planning, they only quibble over the details enough to make a show of it and fool the idiots.

Sat, 04/28/2012 - 22:37 | 2383049 i-dog
i-dog's picture

"Republican Neo Cons"

Again...confusion! The NeoCons started out in the Democratic Party, under Henry "Scoop" Jackson, then jumped ship to the Republicans and propelled Nixon into the White House -- in order to retain their position of power behind the scenes. Some, like Richard Perle, are still registered Democrats!

Hillary is one of the last remaining "neocons" in a position of power.

Sun, 04/29/2012 - 17:08 | 2383894 Lednbrass
Lednbrass's picture

True.

However, on the Republican side in the US they comprise the largest share of the considerable "Government Uber Alles" crowd in that party.

Personally I just refer to them as Prog-D and Prog-R. In political discussion with friends and family I do infurate some of the repubs though by constantly calling them progressives and counting the myriad ways in which they love Big Brother.

Sat, 04/28/2012 - 16:17 | 2382609 Spitzer
Spitzer's picture

I wonder how long Texas is going to bail out California before talking secession ?

 

http://freegoldobserver.blogspot.ca/

Sat, 04/28/2012 - 16:46 | 2382658 Lucius Corneliu...
Lucius Cornelius Sulla's picture

California?  How about Illinios, New York and New Jersey?!?!

Sat, 04/28/2012 - 21:44 | 2382966 Lednbrass
Lednbrass's picture

I certainly hope not long, if Texas went the dominos in the South would fall fast.  Virginia, Florida, and North Carolina are awash with Northern scum seeking new areas to ruin and would take a little longer but the rest of the Confederacy would follow them very quickly.

Sun, 04/29/2012 - 00:24 | 2383172 CynicLaureate
CynicLaureate's picture

We Texans have never stopped talking seccession :-)  http://www.texassecede.com

In fact, there is a small but vocal group who consider the re-annexation of Texas in 1870 to be invalid.  There is even a shadow government that calls itself the "Republic of Texas" who believe we are not legally a part of the USA.

And at least one newspaper in California suggested that Texas be thrown out of the USA...

Sounds like a basis for a divorce to me :-)

ps: Just remember... Texas is a nuclear power!

Sun, 04/29/2012 - 01:57 | 2383217 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

If Texas tried it, it would turn be like Syria today . American warplanes would be in the air before you knew it. Then after that the blue helmets would arrive.

I wonder what would have happened if the UN existed during the US Civil War? Would have kept the two sides apart. Both sides would have been better off. You could keep Bush and oil, we'll trade you wine and technology.

Sun, 04/29/2012 - 17:14 | 2383876 Lednbrass
Lednbrass's picture

Well one thing to consider though- the US military is very Southern. It is not homogenous by any stretch, the South is about 30 ish percent of the US population but 42-43% of the military.

Thsi is the 2010 DoD report on the military, see figures 16 and 17-

http://prhome.defense.gov/RFM/MPP/ACCESSION%20POLICY/PopRep2010/summary/Sect_II.pdf

You can be sure that the large amount of enlistees from Florida arent the grandkids of the Miami retirees, I cant find a breakdown but I would bet that northern Florida is where the recruiting hotbed is. The northeastern states join infrequently and they dont tend to become combat soldiers whereas many Southerners join only to become combat soldiers. If push came to shove the majority of those military types arent going to fight for the Northeastern and Left Coast power structures.

Bush is not any more Southern than Lincoln, they are a Northeastern carpetbagger family. W can put on a cowboy hat, but he still thinks and acts Yankee businessman.

Sat, 04/28/2012 - 16:17 | 2382610 navy62802
navy62802's picture

Fuck. The US didn't even have 24.44% unemployment at the height of the Great Depression. And the trend in Spanish unemployment isn't looking good. That's just scary.

Sat, 04/28/2012 - 16:28 | 2382628 The Alarmist
The Alarmist's picture

The Spanish govt hasn't learned all the tricks of the BLS. What makes you think thing are so rosy here?

Sat, 04/28/2012 - 16:29 | 2382630 falak pema
falak pema's picture

they have min pay in Europe. 

Sat, 04/28/2012 - 18:07 | 2382736 smiler03
smiler03's picture

They have minimum wage in the US, Canada & Mexico too. Germany does not. So your point is?

Sun, 04/29/2012 - 05:23 | 2383327 falak pema
falak pema's picture

the problem of Spain is their banks, not the government spending. Caxa banks and private banks and the  debt mountain of malinvestment in RE.

The people  have to nationalise these banks and rebuild their economy; either the EU has the funds to help this or else Spain leaves the EU and rebuilds from bottom up. But if Spain goes alone it will have to print its own money, devalue and create employment, not destroy minimal wages and create Franco era misery. 

WIthin EU scheme, the eurozone if it survives, has the ability to allow Spain to crawl out of this mess created by private banking, without destroying minimum social protection. That's my point. Either EU goes Keynesian and joint and several or it goes belly up, and its every man for himself. One or the other. But reigning in these sham banks, part of world cabal, is the first step. They caused the Spanish problem. 100%. We have to go to root causes not pander to symptoms.

Sat, 04/28/2012 - 16:47 | 2382660 crawldaddy
crawldaddy's picture

actually it did,  and if we still computed unemployment as we did, we would be looking at 20-22% right now ourselves.

Sat, 04/28/2012 - 18:29 | 2382763 boiltherich
boiltherich's picture

Navy, not to disagree with your sentiment, I don't, Spanish prospects are dim and getting worse fast, but the USA did have higher unemployment in the depression though just.

"Based on that research, he was able to generate a mathematical formula to calculate U3 and U6 unemployment for the entire period since 1900. He found that at the peak of the Great Depression, U3 was 25.2%. U6 was 37.6%."

 

http://www.economicpopulist.org/content/u3-and-u6-unemployment-during-great-depression

 

However; I am always upset when people say this is not so bad, back when I was a boy we had TWICE as many people unemployed so this hardly qualifies as a recession no less a depression.  That is like saying once you have had a thousand year record flood on your river mere 500 or 100 year flooding no longer counts as a disaster, just another rainy day when you have water up to your eaves.

We do not have to meet or exceed 1931-2 levels of U-anything to make this a depression, it might not be as bad as the first Great Depression but it is still a depression.  And it might well get as bad or worse than the 1930's when the eurozone hits the wall and disolves, though in my opinion it is the only right track they can take for the long-term health of Europe. 

Sat, 04/28/2012 - 18:31 | 2382767 Ghordius
Ghordius's picture

Navy, my comment about how difficult it is to compare the US and the Spanish numbers are here: http://www.zerohedge.com/news/spanish-economy-crumbles-unemployment-near... -> Differences in Statistics, Familial Economy, Housing and so on.

Sat, 04/28/2012 - 16:19 | 2382614 ebworthen
ebworthen's picture

What is right and left anymore?

Nationalization and polarization to follow regardless of perceived political tilt.

Sat, 04/28/2012 - 16:42 | 2382655 Sudden Debt
Sudden Debt's picture

There's left, there's right and than there's police state:

http://www.katu.com/news/local/City-to-pay-man-250000-after-police-mista...

Sat, 04/28/2012 - 18:46 | 2382754 Uchtdorf
Uchtdorf's picture

Let there be peace.

Sat, 04/28/2012 - 17:49 | 2382713 GMadScientist
GMadScientist's picture

There's more than one axis.

 

Sat, 04/28/2012 - 17:56 | 2382726 Ghordius
Ghordius's picture

Exactly, see other comment. And since I'm here: the Danes were closing borders last year, this is just a formalization.

I'm not sure why should a club be ending only because a few customers are exiting parts of the contract - it's a free club, joiners, leavers, no sweat...

Sat, 04/28/2012 - 16:19 | 2382616 Corn1945
Corn1945's picture

I swear I've seen this movie before...

It ended with a German guy with a mustache and a loud Italian fellow...

Sat, 04/28/2012 - 16:32 | 2382636 Uber Vandal
Uber Vandal's picture

The German guy was from Austria.

Sat, 04/28/2012 - 17:30 | 2382691 The Alarmist
The Alarmist's picture

When you think of it, some of the biggest problems of the 20th century were brought to us by Austrians, who included luminaries like Franz Ferdinand, Hitler, Freud, and Schwarzenegger.

Sat, 04/28/2012 - 17:51 | 2382716 Ghordius
Ghordius's picture

Suppose someone has to jump in: Ludwig von Mises and the Austrian School?

Sat, 04/28/2012 - 21:45 | 2382970 Lednbrass
Lednbrass's picture

An attempt at redemption for the previous list?

Sat, 04/28/2012 - 16:27 | 2382623 falak pema
falak pema's picture

If Hollande gets his way, this Sarkozy BS will disappear, as election right wing schizophrenia. 

I have crossed LA Jonquera very often and its no big deal. The french go there to buy cigarettes, and petrol, those who live near Perpignan. Avoid the summer time as there are queues. 

Sat, 04/28/2012 - 16:27 | 2382627 debtor of last ...
debtor of last resort's picture

Well, maybe humans are apes after all. It's not about economy, the game of surviving we have left behind. Maybe we need survival games. Trading copper is rather boring.

Don't you think?

Sat, 04/28/2012 - 16:33 | 2382635 Sudden Debt
Sudden Debt's picture

Full flaps, deploy landing gear and bring this puppy down... In the sea...
Better enjoy the light from the burning engines while it lasts....

Sat, 04/28/2012 - 17:27 | 2382688 The Alarmist
The Alarmist's picture

If you are going to bring it down in the sea, you keep the gear up.

Sat, 04/28/2012 - 17:55 | 2382725 Likstane
Likstane's picture

Q. How do you know someone is a pilot?

A. They'll tell you.

Sat, 04/28/2012 - 21:08 | 2382927 The Alarmist
The Alarmist's picture

Never mind.

Sun, 04/29/2012 - 03:01 | 2383246 dogbreath
dogbreath's picture

NO!

You are at a party, how do you know who the helicopter pilot is?

He'll tell you!

Sat, 04/28/2012 - 16:35 | 2382640 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Without a customs union Germany has no incentive to stay in the Euro.  They will choose to cut their losses rather than pony up for a Spain/Italy bailout.

Sat, 04/28/2012 - 16:52 | 2382663 rocker
rocker's picture

So I guess that means we, (the U.S.) will see the FED, (more debasement), cover the Goldman counter-party contagion losses with more currency swap lines.

Sat, 04/28/2012 - 16:36 | 2382641 schatzi
schatzi's picture

Just wait until Hollande starts banging his shoe on the table. That's when things will really fall apart.

Sat, 04/28/2012 - 18:09 | 2382741 smiler03
smiler03's picture

Is the table made in China?

Sun, 04/29/2012 - 02:10 | 2383225 Non Passaran
Non Passaran's picture

More likely the shoe is

Sat, 04/28/2012 - 16:37 | 2382642 rebelscum1967
rebelscum1967's picture

Time to dust off the Maginot Line...so then the Panzers will go around it.

Sat, 04/28/2012 - 16:37 | 2382643 debtor of last ...
debtor of last resort's picture

But first, we all know that, the big horny ape has to come down from the rock. That's the moment we can take another step into progress. Drown him in the water he's afraid of.

Sat, 04/28/2012 - 16:37 | 2382645 Miss Expectations
Miss Expectations's picture

The Spanish Unemployment graph frightens me as much as any large wave.  I finally read The Perfect Storm a few weeks ago and found most interesting the discussion of waves (having been slammed many times because I couldn't get over them fast enough).  This passage about waves, as much as the storm, seems to apply to all these graphs that are on impossible upward trajectories:

"A general rule of fluid dynamics holds that an object in the water tends to do whatever the water it replaces would have done.  In the case of a boat in a breaking wave, the boat will effectively become part of the curl. It will either be flipped end over end or shoved backward and broken on.  Instantaneous pressures of up to six tons per square foot have been measured in breaking waves. "

Sat, 04/28/2012 - 16:41 | 2382652 Apeman
Apeman's picture

Oh how I love hearing bad news about the EU. It was a bad idea from the start. It never should've been created. Hope it burns.

Sat, 04/28/2012 - 16:45 | 2382657 Grimbert
Grimbert's picture

Is that a picture of Stewie?

Sat, 04/28/2012 - 16:58 | 2382667 moskov
moskov's picture

The NATO should be ended too

Europe wOn't be the same like WW2, because too many Islamist and black already took over the white population. It's a giant pussy continent these dats

Sat, 04/28/2012 - 21:48 | 2382974 Lednbrass
Lednbrass's picture

Agreed, its time to get out.  The US has been bled white for 65 years paying to defend Europe, there is absolutely no reason to continue. Europe trumpets its social safety nets and havent had to pay for defense in generations, I look forward to seeing how long that lasts once the US goes home.

Sat, 04/28/2012 - 17:07 | 2382674 q99x2
q99x2's picture

Banksters make great scapegoats.

YeeeHaaaa

Get the gallows ready.

Sat, 04/28/2012 - 17:58 | 2382724 earleflorida
Sat, 04/28/2012 - 18:03 | 2382733 Tenshin Headache
Tenshin Headache's picture

It's a bit ironic that the EU will be debating border controls behind border controls.

And it's a bit handy to have border controls already in place when you are pondering capital controls. That may be the untold part of this story. Stay tuned.

Sat, 04/28/2012 - 18:04 | 2382734 fightthepower
fightthepower's picture

The EU can't fail soon enough. An independent France an Germany would be far better for everyone that the evil Rothschilds EU, which is nothing more than a model for world government.

Sat, 04/28/2012 - 18:16 | 2382752 Ghordius
Ghordius's picture

I'm confused, when you say "Rothschilds", do you mean the new "banksters that suck the blood of nations", i.e. figuratively or do you mean the real descendents of the Rothschilds and their bank/wealth-managing corps, i.e. litterally?

Sat, 04/28/2012 - 20:43 | 2382902 earleflorida
earleflorida's picture

Sir Evelyn de`Rothschild is a fair man, with a greatness for 'over-the-top' etiquette, regarding socially responsible fiduciary duties, and "NOT", risking client money!

just sayin

Sat, 04/28/2012 - 18:35 | 2382768 boiltherich
boiltherich's picture

Yes, now that both nations have gotten all the utility they can out of the mobility of cheap labor like Turks picking their crops, and Poles building their houses, now shut the borders and kick them out, just as America is doing with Latin labor.  Shut the borders and kick them out.  I am thinking though at least in the case of Germany that if I were an unwanted racial or national origin resident I would not hang around to be asked twice, before you hear the words Arbeit Macht Frei. 

Sat, 04/28/2012 - 20:10 | 2382868 sabra1
sabra1's picture

JIM WILLIE:
a German banker contact informs that as a result of a high level meeting in Germany (not in the news), a decision has been made for France to exit the Euro currency first. They are ordered out. Regardless of whether Hollande displaces Sarkozy for the president post, the French have been instructed as to how business will be conducted. No other information, like whether France will revert to the Franc currency and not risk a severe Latin Euro devaluation after Germany and Netherlands depart. My impression is that Germany will launch a new currency very soon. Perhaps they wished for France to take some of the attention and to begin the chaotic process. The contact has consistently stated that France would not be included from the new Nordic Euro, an exlusive core group of Central European nations that qualify by having a current account surplus. French debt is too great, and likely to soon expand much worse. He said France would become a ward of the German state, with dictated policy and direction. Bear in mind that Germany owns of 90% of the French Govt debt. It remains to be seen whether France will assume the lead position among the PIGS, whose nations will all go adrift. Rumors of a Latin Euro Central Bank located in Marseilles were once spun.

Germany might also have wanted to put France in the spotlight, while the German industrial leaders and bank leaders forge their next big accord and create an alliance more formally with Russia and China. An eastern-based barter system is in the works. The G20 non-US$ payment system will establish much of its manifested workings, with wiring and linkage to be made known as the months pass.

Sun, 04/29/2012 - 02:08 | 2383221 Non Passaran
Non Passaran's picture

Sounds like a lot of crap.
I find it difficult to believe that Germany-based entities own 90pct of French debt.

Sat, 04/28/2012 - 20:18 | 2382881 sabra1
sabra1's picture

one more time, JIM WILLIE:

The USDollar appears to be topped out. As it falls, the global cost structure will be lifted again. Most commodities are priced on a US$ basis. Big challenges are in force against the global reserve currency. Aggravating the effect is the chronic high oil price. The Iran effect is felt, not going away, only to grow worse as the backfire backlash develops into new platform systems. See the Hat Trick Letter in the April edition for much greater details on all these critical matters as history is being made. Sadly, the history is the final chapter of the USDollar and its written epitaph. Americans appear to be the least informed on current events and risk levels. Many will see their life savings, their pension plans, and other valued assets suffer great loss since they have not put in place protection from the imploding beleaguered USDollar. The lost value of their homes is but the beginning of their great loss. That warning has not been heeded effectively by the majority of the masses, who qualify as sheep. Steps are difficult to make, but they must be made. Gold & Silver offer the best such protection in the form of bars and coins, kept outside the US and UK, the axis of fascism.

Sat, 04/28/2012 - 21:06 | 2382924 Centurion9.41
Centurion9.41's picture

That any European really believed the political BS about the EU in the first place is the really amazing part.  But that's what it's like before the Keynesian printing game has run up the debt side of the board.

American's shouldn't be so smug when it comes to what they are going to face.  If you doubt another Civil War could take place consider the following.

The drive to the Civil War was founded upon two fundamental issues.  One moral, one economic; slavery and economic interests of the North vs. the South.

Today the US faces a very similar situation brewing.   However many will not see it because the fundamental issues are multifaceted in nature. 

The moral will be convictions of the left vs right.  Of abortion, "racism", gun control and the delineation of rights and obligations regarding lifestyle choices - e.g. sexuality and marriage type issues.

The economic can be defined more easily, but the tracing of them is no different than shattering of tempered glass.  Simply put, economic entitlements.

The geographic lines are also more complex.  In short, draw an arch from the southwest, excluding CA, north through the middle of the country but south of the liberal leaning areas such as Chicago and MI, and arching down southeast through VA.

E.g. I'd seriously consider joining any state willing to seceded over things like abortion/2nd Amendment/federal entitlements and kickbacks to the states [a.k.a. federal subsidies sent to the states]. 

If you're under 40, good luck.  Odd are high you'll see it before you die.

Sat, 04/28/2012 - 21:12 | 2382934 The Alarmist
The Alarmist's picture

My money is on cities vs. country-side, then red vs blue, with the net result being West-Coastistan, East-Coastistan, and Flyoverlandia.

Sat, 04/28/2012 - 22:03 | 2382985 Lednbrass
Lednbrass's picture

It will certainly occur again, the US is no more "United" then Europe is. The regional, cultural, and racial divides are as deep or deeper then Europe, the only thing people in the US have in common is currency and language.

Those two things do not constitute a people and I think it would save alot of bloodshed to recognize this. Let the South go its own way, the rest can do whatever they please. Some of the non-Coastal Western states might be interested in joining as they have some cultural similarities but the Yankee states and Left Coast can go rot, let them create their European Social Democracy.

Sat, 04/28/2012 - 23:03 | 2383085 logicalman
logicalman's picture

Allow individuals to be just that - as long as they don't infringe on another's rights.

HMMM .. this might lead to no more wars - no more poverty - no more exploitation.

Seems like a bad idea to me.

/sarc

Sat, 04/28/2012 - 22:36 | 2383046 kurt
kurt's picture

I'm sick of the word "entitlements".  Every time I hear it I think "they are going to, and fully intend to, fuck my social security." Please don't join the march to fuck my social security.

Sat, 04/28/2012 - 23:11 | 2383098 Lednbrass
Lednbrass's picture

Well kurt, I would counter that with-Please dont join the march to screw my kid to the wall financially before he is even old enough to start his own life because you werent watching the world around you closely enough.

Heres the thing kurt- SS is screwed.  The only question left is who should bear the brunt of the damage- the generation that ignored a very clear problem for decades and chose a life of spending their money (and taking advance payday loans aganst the future earnings of people not even born yet) on ever increasing mountains of new stuff, or kids who havent been able to even begin their lives yet? Thats pretty much what it boils down to.

Sun, 04/29/2012 - 14:44 | 2383791 Centurion9.41
Centurion9.41's picture

Spot on.  And that's the only redeeming effect of Uncle Ben's policies.  They hurt the "savers", the elderly who didnt pay for the entitlements they voted themselves.

Sun, 04/29/2012 - 01:53 | 2383215 Setarcos
Setarcos's picture

STFU about Keynes, OK.

If you had ever read him - instead of just the bits that 'Austrians' and other monetarists sieze on - then you would know that he never promoted deficit spending to any where near the astromonical degrees of today.

What he actually recommended was saving the surplus of "good times", so as to have a funds to tide over bad times, i.e. he was in favour of savings, NOT of debt.

Krugman, for instance, is NOT Keynesian ... nor any other economist who bleets on about interest rates/monetary policy, as opposed to fiscal policy.

This is most graphically illustrated by the numbers of people who believe that private banks - charging interest/usury - MUST be paid from taxes ... as against a minority of us who say.  "Stuff the banks/Fed/CBs, we can issue our own means of exchange and have public banks work in our favour."

See Ellen Brown and "The Web of Debt".   http://webofdebt.wordpress.com/

I am sure, having read both Keynes and Galbraith  (http://www.johnkennethgalbraith.com/) that both he and Keynes would be rotating in their graves, if they knew the nonsense being preached today, by all 'economists.

Sun, 04/29/2012 - 14:41 | 2383789 Centurion9.41
Centurion9.41's picture

Setarcos,

So let me get this straight, the person who championed use of deficit spending by governments, who never defined the limits of the spending - save some vague terms [very common in the "science" of economics btw], who is someone that virtually EVERY institution of economic education credits the concepts to, who proudly accepted the connection of his name to the theory, is to not be named for abuse of the concept?

Right, and we shouldn't call Marxism because Marx was as equally ignorant of human nature as Keynes when it came to its nexus of the theory asserted....

Then to say the man who championed deficit spending was not in favor of debt?

Riddle yourself this genius, IF Keynes was a such a genius, and would be rolling over in his grave, then why did his writings and theory not give equal weight and assertion to the dangers of a deficit/debt based fiat currency political/economic system?

And why did Keynes lose his @ss in the equity markets?

I'll give you that economist today are greater morons than Keynes, save the Austrians. 

Thanks for making it clear you're a closet case Keynesian lover though; play on Keynes "loves" intended.

 

 

Sat, 04/28/2012 - 22:59 | 2383077 logicalman
logicalman's picture

Things(?) are only good when the 1% get to f**K over the 99% with impunity.

 

TIME FOR CHANGE.

Sun, 04/29/2012 - 00:54 | 2383189 zelter
zelter's picture

I do not know why the article makes it appear as a bad thing. It really should not, unless one likes an unwanted autocratic regime designed for the purpose of ethnically cleansing entire nations with unlimited foreign immigration and depression of the native birth rates. Are we Europeans to love our corrupt political classes and colonisers?

Sun, 04/29/2012 - 04:11 | 2383278 Peter K
Peter K's picture

Schengen was a bad idea to begin with. It just let badly managed governments dispose of their excess labor to better run economies. Good riddance I say :)

Sun, 04/29/2012 - 06:12 | 2383350 pcrs
pcrs's picture

these jokers on the right always seem to think the threat comes from without. They have already long ago been infected. 

In Denmark you are plundered by your own government

http://www.dollarvigilante.com/blog/2012/3/21/denmark-socialisms-prize-nation-slave-state.html

Sun, 04/29/2012 - 07:43 | 2383394 the tower
the tower's picture

Most people here have no clue about Europe, so much is clear.

First of all, Denmark is a very xenophobic country, always has been. They closed their borders last year already, and this had nothing to do with crime, just with politics. Now they will do it again. Blah, who cares.

Spain closes it's borders for exactly the reason it gives. 

What is happening in Europe is polarisation: right and left both get stronger, but the overall tendency is nationalistic, cause everyone knows the banks caused the problems, supported by politicians from either side.

Nationalistic does not mean left or right, and it does not mean hating the other countries (the people).

People hang on to nationalistic feelings as it's the last straw to hang on to: they just want their country to get back on track.

Gut reactions cause the far right to grow, but much stronger is the call for change - a REAL fresh breeze.

Europeans MOST OF ALL want quality of life, peace, and financial security - not political polarisation. Europe is NOT the USA with two parties that - in the media - fight each other. Europe craves balance.

This is a time of turmoil, yes, but the people of Europe will not fight each other. They will fight for their freedom, and for their continent. Because believe it or not, Europeans - the people - feel connected more than ever.

Sun, 04/29/2012 - 08:31 | 2383444 porrannor
porrannor's picture

Funny, that is exactly what Hitler was saying before inveding other coutries. "Look at those poor Sudeten Germans being atacted by Czech war mangers. We have to protect them.."

Sun, 04/29/2012 - 17:02 | 2383890 Lednbrass
Lednbrass's picture

As a point of reality, in many cases the Germans living in Eastern Europe were horribly treated. Physical attacks, rapes, murders, etc.- that isnt hyperbole, it was the cold hard reality of the time.

And yeah, when their sons went East in later years wearing German uniforms there was hell to pay.  The History Channel view of history prevalent in the US is not necessarily reality.

Sun, 04/29/2012 - 10:40 | 2383549 RiverRoad
RiverRoad's picture

Wake up Europe, if you haven't already.  The Euro is/was a farce created by the bankers and big business as a place to hide and grow their money (untaxed!) while the dollar was de facto devalued to compete with the rising third world.  The jig is up; the farce is over.

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