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Europe's Parabolic-est: German TARGET2 Total Hits €700 Billion

Tyler Durden's picture





 

Dear German readers: please earmuff your eyes.

Everyone else: please check back in 3-6 months when the Bundesbank's (i.e. Germany) uncollectable "claims" from the Eurosystem hit €1 trillion, following the May increase of €54.4 billion, the third highest monthly increase on record, bringing the total of just shy of €700 billion.

 


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Fri, 06/08/2012 - 09:20 | Link to Comment Peter K
Peter K's picture

Winning :)

Fri, 06/08/2012 - 09:26 | Link to Comment jazze
jazze's picture

Look at Luxembourg's Target2, its the equivalent of around EUR200k per man woman and child!

 

Wooo for parabolic charts!

Fri, 06/08/2012 - 09:29 | Link to Comment malikai
malikai's picture

<-- Next FED printing will be via MBS purchases.

<-- Next FED printing will be via Tbill purchases.

 

Quick quiz.

Fri, 06/08/2012 - 09:38 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

Um... I was told there would no math in this debate.

Fri, 06/08/2012 - 09:41 | Link to Comment malikai
malikai's picture

I guess my question is stupid. It's like I'm asking which kind of dogshit the FED will be buying. Does it really matter if it's from a poodle or a rott?

Fri, 06/08/2012 - 09:42 | Link to Comment SheepDog-One
SheepDog-One's picture

Why buy any more when theyve already monetized everything under the sun?

Fri, 06/08/2012 - 09:50 | Link to Comment LeBalance
LeBalance's picture

THE SUN!!

Go for the monetization of the SUN.

SD1 Super Genius!

:)

 

Fri, 06/08/2012 - 09:54 | Link to Comment malikai
malikai's picture

The Sun is one thing I can guarantee the FED will never buy. It's too productive of an asset. Now, in another 4 billion years who knows..

Fri, 06/08/2012 - 10:46 | Link to Comment xtop23
xtop23's picture

Solyndra.

Fri, 06/08/2012 - 09:45 | Link to Comment francis_sawyer
francis_sawyer's picture

<== The FED will counterfeit by buying dogshit

<== The FED will counterfeit by buying dogshit

 

Fri, 06/08/2012 - 09:53 | Link to Comment Dr. Engali
Dr. Engali's picture

So many options so hard to choose....AHHHhhhhh....I can't fucking take it somebody choose for me!

Fri, 06/08/2012 - 09:49 | Link to Comment malikai
malikai's picture

LOL. Perfect.

Fri, 06/08/2012 - 11:22 | Link to Comment Steroid
Steroid's picture

They have to package it first.

Call it preowned dog food at least.

Fri, 06/08/2012 - 09:26 | Link to Comment slaughterer
slaughterer's picture

REUTERS:

Greece sends New Dawn leader to Frankfurt to "clear up" the "TARGET2 thing" directly with Jens Weidman.  

Fri, 06/08/2012 - 09:31 | Link to Comment brooklynlou
brooklynlou's picture

Cause when a new Nazi talks to an old Nazi, everything gets magically cleared up. (eyes roll)

They'll probably go to some beer hall in Bavaria and get their ass kicked in a bar fight ...

Fri, 06/08/2012 - 10:07 | Link to Comment Peter K
Peter K's picture

The National Socialists (let's call a spade a spade) actually got along well with thier Euroland puppet government. The puppets kept on getting into trouble militarily, and the Germans kept on bailing them out.

Hey, kind of like today. :)

Some things never change! :))))))

Fri, 06/08/2012 - 09:21 | Link to Comment Ivanovich
Ivanovich's picture

Cue "Hitler Finds Out About Target2 Balances" youtube adaptation video.

Fri, 06/08/2012 - 09:24 | Link to Comment disabledvet
disabledvet's picture

How the heck can you put 100 divisions on the border of another county and still "surprise them"? Eh, forget that.

Fri, 06/08/2012 - 10:47 | Link to Comment Kayman
Kayman's picture

BlitzKrieg, Shock and Awe ?

Won't be necessary this time.  The Euro was the Trojan Horse.

Fri, 06/08/2012 - 09:21 | Link to Comment Stoploss
Stoploss's picture

Is today the day??

Fri, 06/08/2012 - 09:24 | Link to Comment Winston Churchill
Winston Churchill's picture

No, today is the day for the rumour about a rumour about a plan to

make a plan to fix this mess.

Monday will probably be the day

Fri, 06/08/2012 - 09:26 | Link to Comment Temporalist
Temporalist's picture

No, today is the day for the rumour about a rumour about a plan to

make a plan to fix this mess that was fixed two years ago according to reports.

Fri, 06/08/2012 - 09:28 | Link to Comment valley chick
valley chick's picture

Can Kick Friday!!

Fri, 06/08/2012 - 09:40 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

Too many cans... too few feet.

Fri, 06/08/2012 - 09:49 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Yo central bank is so poor........

Fri, 06/08/2012 - 09:51 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

.....I saw him kicking a can down the street, I asked what he was doing, he said "Easing".

Fri, 06/08/2012 - 10:48 | Link to Comment Kayman
Kayman's picture

They want your Grandkids to pay for the road extension.

Fri, 06/08/2012 - 09:52 | Link to Comment sockratte
sockratte's picture

this weekend maybe? right time now, since the european soccer championship starts. ;-)

Fri, 06/08/2012 - 09:22 | Link to Comment Peter K
Peter K's picture

Oh, and one more thing. The USD swap lines from the Fed should also be superimposed on the Target2 graph. After all, it is the offshore funding source equivalent for the Euroland.

Fri, 06/08/2012 - 09:23 | Link to Comment GolfHatesMe
GolfHatesMe's picture

That is a fuckload of Towels

Fri, 06/08/2012 - 09:23 | Link to Comment monopoly
monopoly's picture

And the German people put up with this shit. Just so they can stay in the Euro community. Germany does not need them. I really thought they were smarter than us, or not as dumb as us.

Fri, 06/08/2012 - 09:25 | Link to Comment LULZBank
LULZBank's picture

Germany does not need them.

Who will the hardworking Germans be exporting to then?

Fri, 06/08/2012 - 09:27 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, moreover, how many oil fields are there in Germany again?

Fri, 06/08/2012 - 09:34 | Link to Comment LULZBank
LULZBank's picture

Did they not finish the Berlin to Baghdad railway line?

Asking Germany to bailout Europe is like asking a restaurant owner to give more free cash to its indebted and broke customers while praising the restaurant owner for his brilliant business model and hardworking staff.

But okay, lets not spoil the party with common sense.

Fri, 06/08/2012 - 10:04 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

Remember Nord Stream?  https://en.wikipedia.org/wiki/Nord_Stream

 

Screw EU, Germany has already picked their side...

Fri, 06/08/2012 - 10:52 | Link to Comment Kayman
Kayman's picture

How many oilfields are there in Greece, Spain, Portugal, Italy and Ireland ?

Selling cars on credit and never getting paid isn't such a good model either ?

Fri, 06/08/2012 - 09:30 | Link to Comment Quintus
Quintus's picture

Exporting to and vendor financing.

Easy to sell stuff to people when you are also lending them the money to buy your products.

The problem only comes when you ask for the money back and they don't have it.  The German export miracle is becoming a nightmare fast.  Turns out it's mostly been a big circle-jerk all along.

Fri, 06/08/2012 - 09:33 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yep, they fucked up and should have left well-enough alone.  Keep pretending to lend them "money" and they will keep pretending to pay it back.  

Fri, 06/08/2012 - 10:28 | Link to Comment Manthong
Manthong's picture

International Ponzi Finance is like a tennis game.. the vendor financing ball might be back in Japan and China's court sooner that most folks expect.

Fri, 06/08/2012 - 09:35 | Link to Comment youngman
youngman's picture

This is kind of like the China USA thingamagig......

Fri, 06/08/2012 - 10:30 | Link to Comment Manthong
Manthong's picture

If I had read one more post down...

Fri, 06/08/2012 - 09:35 | Link to Comment LULZBank
LULZBank's picture

Turns out it's mostly been a big circle-jerk all along.

Ahh ... the feeling I got when I first studied economics and finance!

Fri, 06/08/2012 - 09:55 | Link to Comment sockratte
sockratte's picture

best i read today:

BoE's Haldane says it is time to rethink how financial system works

and i always thought financial systems are designed and defined by human...

Fri, 06/08/2012 - 09:37 | Link to Comment scatterbrains
scatterbrains's picture

They'll look inward and begin manufacturing tanks/jets/ships/subs and other military hardware for their own account.

Fri, 06/08/2012 - 10:40 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, so long as supply lines hold.  Some things never change, and when real goods and serices stop crossing boarders, troops will.  Now how did that work out for everyone last time?

Fri, 06/08/2012 - 12:12 | Link to Comment JR
JR's picture

The Germans will export to customers who can pay for it. Doesn’t that settle it? BTW, Deutsche Bank is not German; it’s Wall Street.

Sat, 06/09/2012 - 01:46 | Link to Comment Nussi34
Nussi34's picture

Markets outside the Euroupne are more attractive anyways. btw there are 34 countries in Europe to export to that are not part of the Eurozone!

Fri, 06/08/2012 - 09:28 | Link to Comment bshirley1968
bshirley1968's picture

Just like here, dummy, the people have little to no say.  Just because you have a "vote" doesn't mean jack shit.  Take a look around.

Fri, 06/08/2012 - 09:24 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Zee pain in Spain falls mainly on zee Germains.

Fri, 06/08/2012 - 09:27 | Link to Comment valley chick
valley chick's picture

Zee pain in Spain, Portugal, Ireland, Italy, Greece falls mainly on zee Germans.

Fri, 06/08/2012 - 09:26 | Link to Comment monopoly
monopoly's picture

Spare me. Obama to speak on the economy at 10:15. That will be good for at least another -50 on DOW. He just does not get it. Go back to Chicago and leave us alone.

Fri, 06/08/2012 - 09:31 | Link to Comment pods
pods's picture

I think he gets it, he just cannot tell us.  

Fri, 06/08/2012 - 09:32 | Link to Comment Dr. Engali
Dr. Engali's picture

I think he gets it too,but I think it's more sinister than not being able to tell us.

Fri, 06/08/2012 - 09:43 | Link to Comment BeetleBailey
BeetleBailey's picture

He:

Does not get it - never did.

Does not care - never has.

Has his words carefully crafted by others, who are really in charge.

Fri, 06/08/2012 - 09:52 | Link to Comment kridkrid
kridkrid's picture

that distinction doesn't really matter.  Our recent run of presidents have all been puppets for the people who are really in charge.  I suppose you could make a case for GHWB being a part of the criminal syndicate... less of a puppet.  Prior to that, you would likely need to go back to JFK, and look where that got him.

The point that is important is the likelihood that they know exactly what is going on... and have been preparing for it all for some time now. 

Fri, 06/08/2012 - 09:40 | Link to Comment kridkrid
kridkrid's picture

and people who think otherwise are fools... which is most everyone.

Fri, 06/08/2012 - 10:00 | Link to Comment pods
pods's picture

I could only imagine being the president.  Just seeing the information publicly available is enough to keep you up at night.

I would be doped up worse than Elvis if the first thing I had to do in the morning was listen to how they have found another 8 holes in the dike.

You have to be an egomaniac to want that job.  

And your ego has to overwhelm your intelligence.  So the smarter the president, the scarier it actually is.

Most inteligent but grounded people would walk out after the first briefing and promptly GTFOOD (Get the Fuck out of dodge).

pods

Fri, 06/08/2012 - 10:02 | Link to Comment Peter K
Peter K's picture

Ugh.... Delusional :(

Fri, 06/08/2012 - 12:19 | Link to Comment JR
JR's picture

Good post! But i don't think Bush or Obama were intelligent enough to walk out. And Obama's ego, spanning the continents, can overcome almost any deficiency - making him the perfect puppet for the banking cartel.

Fri, 06/08/2012 - 09:27 | Link to Comment CcalSD
CcalSD's picture

Time to crank up those EUR printing presses in Frankfurt!

Fri, 06/08/2012 - 09:27 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

You can't get blood out of a turnip!

my mother's favorite saying.....cliches and stereotypes can be cruel but man, are they right on

Fri, 06/08/2012 - 09:31 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes.  Nature makes no promises regarding anyone's survival, especially in a lawless land.  As long as the paper-pushers are going to steal the value of all our labor I am starting to think that a well-armed society might at least be a bit more polite.

Fri, 06/08/2012 - 09:27 | Link to Comment Central Wanker
Central Wanker's picture

Germans should exit euro NOW and implement strict capital controls to prevent the TARGET2 money from flowing back. 

That should be fun to watch.

Fri, 06/08/2012 - 09:28 | Link to Comment Peter K
Peter K's picture

They can't. They gave up their military to pay for all the social spending:(

Fri, 06/08/2012 - 09:31 | Link to Comment Central Wanker
Central Wanker's picture

Scheisse...

Fri, 06/08/2012 - 09:32 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, meanwhile Americans are having their freedoms stripped to keep the military industrial complex going.

Fri, 06/08/2012 - 09:43 | Link to Comment kridkrid
kridkrid's picture

A vicious cycle.  More might requires more might, with both our imperial pursuits as well as our police state.  Like every other exponential curve we find ourselves on, the slope is getting steep.

Fri, 06/08/2012 - 10:00 | Link to Comment Peter K
Peter K's picture

But at the end of the day, might does make right. And that goes for the exponential curves:)

Fri, 06/08/2012 - 10:07 | Link to Comment kridkrid
kridkrid's picture

Until it doesn't... then look the fuck out.  America is here --->>> X

Fri, 06/08/2012 - 10:13 | Link to Comment LawsofPhysics
LawsofPhysics's picture

As I stated above, precisely why I am starting to think that so long as the paper-pushers are going to steal the value of our labor anyway, at least a well-armed society might be a bit more polite.

Fri, 06/08/2012 - 10:31 | Link to Comment Peter K
Peter K's picture

God bless America:)

Fri, 06/08/2012 - 09:49 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

Not true... we have to keep our military in tact because, as we have seen... the rest of you ass holes refuse to play nice. 

Don't believe me, ask an 80 year old European Jew. Or a 40 year old Kurd. If you can find a literate North Korean, ask them. There are also some Venezuelans you may to ask, or some Cubans. 

Then of course there are those Muslems and their affection for flying planes into civilian targets. Plus their quest to kill every last Christian.

Yeah... the World would be a much safer place without the US military.

 

Fri, 06/08/2012 - 09:55 | Link to Comment kridkrid
kridkrid's picture

You should unplug and question some of your assumptions.

Fri, 06/08/2012 - 10:03 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

I junked you, not because you challenged me, but because you seem childish and imature.

Plus... I'm rubber and you're glue...

Fri, 06/08/2012 - 10:10 | Link to Comment kridkrid
kridkrid's picture

:-)

I know you are, but what am I.  http://www.youtube.com/watch?v=XOGWbzUM-y8

 

Fri, 06/08/2012 - 10:10 | Link to Comment LULZBank
LULZBank's picture

+1

Not because you're smart but because you're funny.

Keep it up :)

Fri, 06/08/2012 - 10:19 | Link to Comment LawsofPhysics
LawsofPhysics's picture

With all the information that is out there on precisely how America has been "playing" in the middle East for 40+ years, let me guess.  I imagine you also ask yourself "why is our oil under their sand?".  

Grow up, you sound like a political puppet who plays on people's fears and refuses to have an adult conversation.  Here is a hint, those "muslems" are equivalent to the "jews" of old.  Go look up what "blowback" means.

Oh and by the way, if unemployment keeps going up, it won't be someone 6,000 miles away that you should be concerned about.

Fri, 06/08/2012 - 09:28 | Link to Comment Global Hunter
Global Hunter's picture

Is that chart a projection of FB free cash flow, USA GDP or the amount of new green jobs that Obama will bring to America in his next term?  /sarc

Fri, 06/08/2012 - 09:28 | Link to Comment slaughterer
slaughterer's picture

What a fucking insane set of liabilities to have to back up.  

Fri, 06/08/2012 - 09:32 | Link to Comment RobotTrader
RobotTrader's picture

Wow, look at the 10-yr. yields in U.S., Germany, Japan.

 

Clearly these idiots are not printing fast enough! What are they thinking?  They could print trillions and start handing out checks to consumers.

Fri, 06/08/2012 - 09:35 | Link to Comment Dr. Engali
Dr. Engali's picture

 

They could print trillions and start handing out checks to consumers.

 

Don't worry Robo that's coming up in the next 2012 vote buying er I meant economic stimulus bill.

Fri, 06/08/2012 - 10:02 | Link to Comment pods
pods's picture

Robo, they are not printing at all.

It is called BORROWING when there is debt attached.

pods

Fri, 06/08/2012 - 10:22 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Pods,

But what if the interest rate is ZERO?  Isn't that the same as printing since no interest is being accumulated?

Do you really beieve that there is no cost for capital, even if no real value is being created.

Sounds a lot like capital mis-allocation and mal-investment to me.

Fri, 06/08/2012 - 09:33 | Link to Comment debtor of last ...
debtor of last resort's picture

At least ze Germans can retire at 52.

Fri, 06/08/2012 - 09:35 | Link to Comment Stax Edwards
Stax Edwards's picture

Completely OT:

The 'Motif' investing (click-through ad on my ZH right now) is really intriguing. Not endorsing it, as I just now started looking at it.  My initial impression is that this is a very very clever idea.  

If it is on your screen I encourage you to click on it and check it out.

They are providing a diversified way to invest in 'an idea' with one commission. Anybody have any business dealing with them or know what the fine print/pitfalls are?

Fri, 06/08/2012 - 09:46 | Link to Comment Terminus C
Terminus C's picture

I personally like the NOVA investment advert:  Hugo and I'madinnerjecket holding hands... apparently they don't want us to invest.

But if we were good, patriotic people we wouldn't do what they wanted would we?  We SHOULD INVEST RIGHT NOW!!!!! PUT ALL YOUR 'MONEY' IN THE STOCK MARKET TO THWART THE TERRORIST REGIMES!!!!!!!!!!!!1111111ONEONEoneeleventyone!

I don't know whether to laugh or vomit...

Fri, 06/08/2012 - 09:36 | Link to Comment Dr. Engali
Dr. Engali's picture

Last time the Germans averted their eyes......ah nevermind.

Fri, 06/08/2012 - 09:41 | Link to Comment Stock Tips Inve...
Stock Tips Investment's picture

I think we're about to see a large earthquake. I hope we are prepared to resist it.

Fri, 06/08/2012 - 10:03 | Link to Comment Henry Chinaski
Henry Chinaski's picture

The earthquake was 4 years ago and we are waiting on the tsunami.  There's no resisting a tsunami, but you can move to high ground.  If you can see it on the horizon, it is probably too late.

Fri, 06/08/2012 - 09:43 | Link to Comment slaughterer
slaughterer's picture

DEUTSCHLAND IST TOTAL GEFICKT!

Fri, 06/08/2012 - 09:54 | Link to Comment spanish inquisition
spanish inquisition's picture

Remember the story about the German tourist who puts a 100 Euro on the desk of a Greek inn? The owner runs around and pays the butcher, who pays the hooker... etc and everyone is out of debt. It is the same story, now with an American tourist in Germany to bail out Europe.

The story is getting interesting, because American innkeepers are wondering who is coming to stay in their town..

 

Fri, 06/08/2012 - 09:53 | Link to Comment Galactic Superwave
Galactic Superwave's picture

Another parabolic curve to add to the large and fast growing set of parabolic curves in the world of finance.

 

Where do parabolic curves go when they die?

Fri, 06/08/2012 - 09:54 | Link to Comment luckylongshot
luckylongshot's picture

And this results in David Cameron, who leads a country with 5 Trillion pounds of debt coming to Berlin to advise Angela Merkel on what to do...the entire Rothshild controlled part of the world ist total gefiickt!!!!

Fri, 06/08/2012 - 09:58 | Link to Comment slaughterer
slaughterer's picture

Time to lay into the sovereign CDS for "gefickte Deutschland"

Fri, 06/08/2012 - 10:08 | Link to Comment falak pema
falak pema's picture

uncollectable claims are like unavoidable dames; they always get you in the end. 

Fri, 06/08/2012 - 10:31 | Link to Comment The Watchman
The Watchman's picture

I'm tired of all these compound exponential functions that are reaching their foregone conclusions. We are at the mathematical precipice where the numbers start to get really big, really fast. Buckle up kids, the ride is straight up from here. That is until it isn't.

Fri, 06/08/2012 - 10:47 | Link to Comment Monedas
Monedas's picture

Nothing bad can happen when Hillary "GravitASS" Clinton is meeting with Kofi "World Class Negro Heavyweight" Annan ?  Maybe they will share a Nobel Peace Prize ?       Monedas     1929      "The Nobel prize ain't what it used to be....back before they invented Dynamite !"....Yogi Berra

Fri, 06/08/2012 - 13:53 | Link to Comment WVO Biker
WVO Biker's picture

Forget moral hazard et al. Had they listened to Neue Zürcher Zeitung in the 90s then there would be no €. But now is now. So much debt that is not collectable. They did not let the banks bite the bullet which would have been just.

But why let the people suffer ???

Why not change the ECB rules and let it buy that toxic waste and stash it away for good?

This must be a stupid question because it is the first that comes to mind. Someone lighten me up in one or three sentences please. Thanks.  

Fri, 06/08/2012 - 14:13 | Link to Comment trilliontroll
trilliontroll's picture

Heliom flash (death of a star)

"...

This runaway reaction quickly climbs to about 100 billion times the star's normal energy production (for a few seconds) until the increased temperature again renders thermal pressure dominant, eliminating the degeneracy. ...

"

http://en.wikipedia.org/wiki/Helium_flash

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