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Explaining How The Just Announced ECB Market Rescue Pledged 133% Of German GDP To Cover All Of Europe's Bad Debt

Tyler Durden's picture




 

Two weeks after Zero Hedge readers were informed about it, slowly the sell side is coming to the realization that not only will the EFSF have to be expanded (that much was known), but that Germany, and specifically the outright economy, will be on the hook by an unprecedented amount of money. And expanded it will have to be: not by two, not by three, but by a cool four times, to a unbelievable €3.5 trillion which according to Daiwa's Head of Economic Research, Grant Lewis, is an act which will be necessary to convince financial markets of euro area resolve to save Italy and Spain. Says Lewis: "France, Germany contribution to EFSF’s capital would increase to 80% if Spain, Italy had to drop out of guarantee structure.  France, German contingent liabilities would be > 50% of GDP if EFSF expanded; added to France, Germany current debt may trigger downgrades to both countries." Yes... and no. As we explained when we referred to a far more accurate and complete report by Bernstein, merely a €1.5 trillion expansion in the EFSF, would mean that Germany is on the hook to the tune of €790 billion or 32% of German GDP. If France is downgraded, Germany essentially becomes the sole backstopper of the entire Eurozone, to the tune of €1.4 trillion or 56% of its GDP. Now let's assume Daiwa is correct, and the full amount under the EFSF has to increase to €3.5 trillion. That means that Germany "contin[g]ent liabilities", in the worst case scenario where France again gets downgraded, and it likely will eventually, would surge to about €3.3 trillion, or an insane 133% of German GDP!

Now let's put today's events in perspective.

Basically what just happened an hour ago, is that the ECB gave a green light to use the SMP program to buy Italian and Spanish bonds: the two countries which recently put themselves into a self-imposed capital markets exile as we reported earlier. The problem is that the SMP's unsterilized purchasing capacity is de-minimis and it is merely a stopgap until the sterilized EFSF is enacted in its final form. The question is precisely what this final form will be: will it be €1.5 or €3.5 trillion. Nobody knows yet which is why Rehn refused to answer the question twice already today.

Either way, let's assume EFSF gets clearance. At that point the SMP gets deactivated, and EFSF takes over.

And here is where Germans get angry, because explicitly they end up backstopping everyone in europe! And the cost to them becomes 133% of their entire economy in a worst case scenario, which of course in this centrally planned world, is now guaranteed.

So the ball is now basically in Germany's court: will the German export sector be ok with leaving the country on the hook to a complete implosion once the final European house of cards implodes, or, will German practically once again take over, and tell the ECB, the bureaucrats and every other insolvent European country to go shove it, in the process bringing back the D-Mark and returning to a life of quiet contentment without a customs, cultural or monetary union.

Oddly enough, our money is on the latter.

PS. In the meantime, short Bunds (or to borrow a Gartmanism, go long gold in Bund terms) ahead of the market's realization that peak risk transfer from the periphery to the core is now in process.

PPS. A fully funded EFSF will need to issue €3.5 trillion, or $5 trillion in debt. Repeat: $5 TRILLION.

 

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Fri, 08/05/2011 - 15:33 | 1527978 MsCreant
MsCreant's picture

I'm telling you, you need to roll up a new character and start over, you blew it.

Fri, 08/05/2011 - 20:13 | 1528624 DoChenRollingBearing
DoChenRollingBearing's picture

Keep reading!  Franken_Stein keeps going further over the cliff!  Boy is totally whacked!

Fri, 08/05/2011 - 20:49 | 1528770 Hulk
Hulk's picture

He should change his avatar to a pic of Mel Gibson...

Fri, 08/05/2011 - 14:38 | 1527811 markar
markar's picture

china's the wild card here. think they will sit back and watch the Wall St. boys destroy their investment in the EU/Euro? I predict they will dump treasuries before they let that happen

Fri, 08/05/2011 - 14:38 | 1527812 casaananda
casaananda's picture

Ahhh. My gold, my P226, my 556 and my Glock 19 -- life was never so good, was it?

Fri, 08/05/2011 - 19:07 | 1528443 Use of Weapons
Use of Weapons's picture

Getting raped by Ajax (fluid? Oh, the horror, the horror) is never pretty, white boy.

Sat, 08/06/2011 - 10:37 | 1530268 augie
augie's picture

at least the man knows quality firearms... minus the glock. 

*runs for cover*

Fri, 08/05/2011 - 14:39 | 1527814 whaleoil
whaleoil's picture

I think I hear the rumble of Panzer engines starting

Fri, 08/05/2011 - 14:38 | 1527818 PulauHantu29
PulauHantu29's picture

Faber's key statement:

"Stocks will be dropping 30%, then rallying 20%, and dropping another 30% -  that's going to be the pattern. And whoever can't live with that shouldn't be buying equities at all."

 

I jumped ship on the bounce this morning. I agree with Faber. The first Rats off the ship swim the farthest.

Fri, 08/05/2011 - 14:38 | 1527819 gnomon
gnomon's picture

Alice dropping acid in wonderland.  Who knew the rabbithole would be this deep?  Only the thought of chopping limbs off in Rwanda for kicks seems more surreal.

Every day is a new revelation and none of them indicate a second coming.

Fri, 08/05/2011 - 14:42 | 1527823 Die Weiße Rose
Die Weiße Rose's picture

so, the European Union is responsible for the mess in US and UK Debt ?

the bankrupt remains of the British Empire are desperately grasping at straws now,

as they slowly disintegrate into their final chaos....

even beggar thy Neighbours won't work any longer !

Europe has survived for thousands of years and will for thousands more.

whereas the USA and other former British Colonies are only recent experiments in history,

built on slavery and exploitation and bound to fail, like the once great British Empire.

Russia and Asia are natural trading-partners of Europe and anyone else

not in this alliance - including the US and UK are basically becoming mostly irrelevant.

The US and UK are responsible for the mess they created, living above their means on cheap Credit.

Now the Party is over and the Hangover is like going cold turkey for those addicted to cheap Credit and Stimulus.

Wake up America - time to get your house in order - Austerity is a bitch !

Fri, 08/05/2011 - 14:48 | 1527835 youngandhealthy
youngandhealthy's picture

My man....not just +1 a +10000...we are on the same side of this deal

Fri, 08/05/2011 - 14:54 | 1527852 machineh
machineh's picture

Decrepit as they may be, the Anglo-Saxon countries (Australia, Britain, Canada, NZ, US) kept their own currencies.

But Germany is in a currency club with 16 partners, and now half of them need a bailout at Germany's expense.

Your move!

Fri, 08/05/2011 - 15:11 | 1527903 besnook
besnook's picture

the euro zone will be the new german republic union in a few years.

Fri, 08/05/2011 - 15:04 | 1527826 youngandhealthy
youngandhealthy's picture

That little shit bug Grant Leiws from Daiwa's Head of Economic Research is not worth mentioning. His analysis is crap. If that and if that and if that Then then moon comes down.....yeah!!! ....heard that before....That little bugger wants to buy Euro debt cheaper now when USd debts is full AAA rated crap. Tyler shape up, you're good but this is a stretch.

Now, the last section of the note is 100%accurate....Short the Bunds....I'm 80% in that deal....is like stealing candy from children. Well done Tyler, but not for the reason of Grant Lewis thesis.

Bitch Bitches...

 

 

Fri, 08/05/2011 - 14:48 | 1527837 roymunnson
roymunnson's picture

Today marks the 3rd time I've heard  Rush Limbaugh use content from ZH on his broadcast

 

Each time I've vominated a little

 

 

Fri, 08/05/2011 - 16:06 | 1528096 I Got Worms
I Got Worms's picture

No fan of Rush or Glen Beck, but when they mention ZH, it directs millions of eyeballs whose eyelids need peeling back over to The Truth that is ZH. That's a win.

Fri, 08/05/2011 - 17:08 | 1528261 New_Meat
New_Meat's picture

Well, then Ableson might get you extra-queezy, maybe even a little smurf in your mouth:

"In search of an answer, we turned up an intriguing explanation for this magical metamorphosis by Zero Hedge, a savvy and punchy blog focusing on things financial. Not to keep you in suspense, Zero Hedge fingers AIG, that repository of financial ills and insatiable consumer of taxpayer pittances, as the agent of the banks' miraculous recovery."

http://online.barrons.com/article/SB124000857570530541.html#articleTabs_...

and

http://online.barrons.com/article/SB500014240529702032960045753632905460...

and

http://online.barrons.com/article/SB500014240529702045172045760319401018...

Note how far back in the OOOOld days!

But why your reaction to Beck (especially) and Rush?  Beck and gang are rather sympatico with several themes here.

- Ned

Fri, 08/05/2011 - 17:31 | 1528332 MsCreant
MsCreant's picture

You make a good point, not so new meat, one that I feel most miss.

The truth of it is that none of us agree 100%. That would be scary if we did. That does not mean that we can't help and support one another, particularly where we agree. We (myself included) like to paint it black and white and it just isn't. We just love to believe we are right. Problem is when we "know" we stop considering and shut down other information coming in.

Travis is a great example of this for me. He is racist as all get out. He is also sharp. So how does a sharp guy come to it that he believes the things he does. When racism is done as a perfomance (ie it is being done in bad faith and you know the poster is goofing on you) I don't need to spend too much time thinking about that. But when otherwise reasonable people seem to go there, I find as repugnant as it is, I NEED to stop, slow down, listen, and see where the logic is coming from. Is is knee jerk pain from a past injury? Is there something different about the way they and I are applying categories (I think this is true with the Israel/Jew thing). Or what?

It's a trip and we are all Bozos on this bus together, working on mysteries without any clues (if I may be permitted to mix my rock and roll metaphors).

Thanks for your comments. We are all strange bedfellows, former Dems, former Repubs, disenfranchised Libertarians, Black, white, yellow, brown and red, and more.

Fri, 08/05/2011 - 20:55 | 1528808 New_Meat
New_Meat's picture

Ms, u b a darlin'!

And I'm glad that you have enough time to post.  I hope that you have time to hang around these parts.

I'd hope that (despite our previous backgrounds) we'd have several straightforward conversations.  I find myself a) teasing without mercy, b) blowing up stupid comments, and c) responding to/attempting to iniatiate sorta' real discussions.

Thank you madame for a discussion.

- Ned

And shall we continue?

Fri, 08/05/2011 - 14:50 | 1527839 Franken_Stein
Franken_Stein's picture

 

Had the Nazis sent Henry Kissinger to the ovens, then probably America would have been spared the Vietnam war.

 

Another thing is this:

When the Nazis assimilated Austria in 1938, ithey captured the local Rothschild guy there.

 

But instead of sending him to the death camp, they let him go and flee to England after he had handed them the whole possessions of the Rothschikld Bank of Austria.

 

What is the point of that ?

Why didn't they just just take his possessions and send him to the gas chamber anyway ?

 

That is very strange, indeed!

 

Fri, 08/05/2011 - 14:55 | 1527859 fuu
fuu's picture

Awww so sad. You should go get a hug from JW in FL.

Fri, 08/05/2011 - 15:13 | 1527881 youngandhealthy
youngandhealthy's picture

Now, will  Rush Limbaugh use Mr Franken_stein's?....I have no doubt

Fri, 08/05/2011 - 15:37 | 1527996 treemagnet
treemagnet's picture

Pull your head outta your ass - it'll only sting for a second or two.

Fri, 08/05/2011 - 15:50 | 1528047 MsCreant
MsCreant's picture

I wonder if doing that is kind of like a vaginal birth? First there would be a lot of pressure on his head, then a squeeze, then he would see the light, take a deep breath, and start crying. Then you'd have to wipe the shit off him but I think it would be worth it. Do you have to smack him when he gets out?

Fri, 08/05/2011 - 16:03 | 1528084 eurusdog
eurusdog's picture

No worries, it will just be another asshole within an asshole, no harm done!

Fri, 08/05/2011 - 17:25 | 1528309 New_Meat
New_Meat's picture

Stein:

"Had the Nazis sent Henry Kissinger to the ovens, then probably America would have been spared the Vietnam war."

... er ... u b confuzed, dude.  But I'll help u with it.

Start with Halberstam:

http://www.abebooks.com/servlet/SearchResults?an=halberstam&sts=t&tn=bes...

will only cost you like 4 bux, but you'll need a credit [ed.] card.

There, you'll learn all about Dean Rusk and Bobbie Kennedy and Veet-Nam and LBJ.

Ol' Hank came along a long time later, you know, when it was all baked into the cake.

- Ned

{Stein?  Am I sensing self-loathing going on?  Happening a lot with all of the Isreal news, don't cha' know}

 

Fri, 08/05/2011 - 20:36 | 1528699 Pay Day Today
Pay Day Today's picture

"Why didn't they just just take his possessions and send him to the gas chamber anyway ?"

They probably gave him important things to do there. Or more likely to save his skin he told them he could do important things there for the Germans, based on his contacts and his knowledge.

Fri, 08/05/2011 - 14:55 | 1527858 besnook
besnook's picture

so what does germany get in exchange for the backstop? is china involved through some back door mechanism? how come russia has not weighed in? or have they a back door?

Fri, 08/05/2011 - 14:56 | 1527861 besnook
besnook's picture

oh, and everyone knows the usa is somehow involved.

Fri, 08/05/2011 - 17:34 | 1528339 New_Meat
New_Meat's picture

Swap program in place and well.

http://online.wsj.com/article/SB1000142405311190388560457648667170924240...

"If U.S. dollar funds become scarce for foreign banks, they potentially could use a swaps program between the Federal Reserve and the ECB as a source of funding. Under this program, the Fed makes U.S. dollar loans to the ECB, which can in turn lend dollars to European banks that need dollars. The program was used heavily during the financial crisis, but as of July 27 it had been untapped."

I'll look around for what I think I heard today that the swap lines had been exercised, after increase in debt ceiling.  I'll need to confirm this.

- Ned

Fri, 08/05/2011 - 14:58 | 1527866 stpioc
stpioc's picture

This is simply nonsense. As if Italy and Spain are 100% insolvent. As it happens, they're far from it. This is a big bazooka but only a fraction is going to be used. It has to have massive fire power to scare off the speculative attack against Spanish and Italian bonds, but it's hardly going to buy up every Spanish and Italian bond on the market.

Fri, 08/05/2011 - 14:58 | 1527868 monopoly
monopoly's picture

This is insanity and so is this market. I cannot even imagine being on margin with swings like this.

Fri, 08/05/2011 - 15:07 | 1527886 Franken_Stein
Franken_Stein's picture

 

Why do you Americans watch this Jew made crap from Hollywood ?

 

William Shatner, Leonard Nimoy, both Jews of Eastern European descent.

 

80% of Hollywood is Jewish.

Blow the whole place up and planet Earth will be better off !

That's for sure.

 

Marlon Brando, born in Nebraska, who is of German ancestry, becuase his family name is originally Brandau, always said:

 

Hollywood is controlled by Jews.

And therefore Hollywood hated him and vice versa.

 

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

 

All the stinking Jewish producers there.

 

And when Mel Gibson said the same thing, they also fired him.

 

Well then just burn down the whole fucking place.

Burn down L.A. too.

 

It's a worthless city anyway, and you can just ascribe it to the local scorching heat.

 

Hahahahaha !

 

Fri, 08/05/2011 - 15:07 | 1527890 Rodent Freikorps
Rodent Freikorps's picture

Does anyone think the Germans won't pay?

Really?

Fri, 08/05/2011 - 15:11 | 1527893 bob_dabolina
bob_dabolina's picture

This kind of trading is reflective of the credit crisis 

Absolutely nutzo

All we need is Bob Pisani saying "victory for the bulls" every 5 seconds for it to be complete

Fri, 08/05/2011 - 15:14 | 1527894 falak pema
falak pema's picture

Well, by the looks of it the Euro has become sacred cause at planetary level to succor support to a world alternative reserve currency other than the evil, knievel 'pump n dump' USD fed on Qe infinity steroids. So every sovereign country is now rallying around the flag  of the Euro to fight those speculating Hfs who are taking down the world economy in the name of the sacrosaint market; the same market players that have allowed this current crisis to occur; when USA and their own home market dynamics were uber alles. A market which is not a market now but a manipulated oligarchy play since the ZIRP FIRE economy emerged since thirty years. 

Lets see how this plays out, the ultimate game of 'free market capitalism' and their nemesis, 'the Keynesian ponzi' as perceived from the shores of the land of the free. 

I've lost all perception of truth in this sterile dialogue amongst 'mad protagonists' of financial capitalism. We, the people who are not participants of this incredible game of greed and shame, must now watch as the soufflet of risk asset cake starts to deflate whereas the pile of inflated fiat will sky rocket like those  skyscrapers that the Oligarchs are building in their own glory all over the world. 

Mad new world.

Fri, 08/05/2011 - 15:21 | 1527929 zebrasquid
zebrasquid's picture

DB puts look like the way to play all this.  How can it turn out good for one of the most leveraged banks in the world in this Euro meltdown?

 

 

Fri, 08/05/2011 - 15:25 | 1527944 Franken_Stein
Franken_Stein's picture

 

Therefore I sincerely hope that acts of aggression and bruutality against Jews will rise again in Germany, no matter how much Angela Merkel, this Jew-friendly sellout whore is opposed to it.

 

Who cares what this ugly pig thinks ?

 

It's time that we see some Synagogues burn again.

 

And I also sincerely hope that there will be acts of terror against the Jew bank number one, Goldman Sachs.

 

 

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

Send Blankfein to Auschwitz NOW !

 

We need to repopen Auschwitz again and send the international financial Jewry there !!!

A world without Jews is a better place for everybody.

 

Just ask the 1.5 billion muslims.

 

Fri, 08/05/2011 - 15:35 | 1527991 mess nonster
mess nonster's picture

Ah yes, from an avatar whose real name is

Iosif Vissarionovich Dzhugashvili

You do know how to pronounce that last name...Jew-gashvili.

...how ironic...

 

Fri, 08/05/2011 - 15:40 | 1528020 youngandhealthy
youngandhealthy's picture

R U from Norway?

Fri, 08/05/2011 - 15:30 | 1527966 freethinker4now
freethinker4now's picture

nein nein nein ja ja ja

http://youtu.be/qfr9gMbjPco

Fri, 08/05/2011 - 15:32 | 1527973 Overflow-admin
Overflow-admin's picture

Oops... fortunately I have some more cash to buy phyiscal silver. I'll keep some cash for a one-way ticket to Argentina too. Not kidding here, it's the plan.

 

I don't know for you but I feel something like the average Weimar republic citizen (aka boiling frog) -> still more pain coming.

Fri, 08/05/2011 - 15:47 | 1528034 CrashisOptimistic
CrashisOptimistic's picture

Most people with one way tickets to places don't understand visas and regulations in various countries regarding them.

Your one way ticket to Argentina probably will be for 90 days.

Fri, 08/05/2011 - 15:49 | 1528043 WoodMizer
WoodMizer's picture

The boiling frog analogy is incorrect; the frog feels no pain until it dies.

Fri, 08/05/2011 - 15:33 | 1527984 Threeggg
Threeggg's picture

The market has been exposed today as the biggest ponzi scheme that ever was. There will be some kind of announcement this weekend as the 400 point swings have to be addressed. Anybody with the balls to stay in this market over the weekend is a fool.

Whats the saying......................................

Fool me once !

Shame on me.

Fri, 08/05/2011 - 16:11 | 1528108 I Got Worms
I Got Worms's picture

I think the correct saying is: "Fool me once, uh, shame on, shame on you. Fool me, uh, you can't get fooled again."

Fri, 08/05/2011 - 15:43 | 1528012 honestann
honestann's picture

Dear Germans.

It is time for your Declaration of Independence!

Hang your ruling predators who ruin your lives, and get free!

Fri, 08/05/2011 - 15:58 | 1528071 Franken_Stein
Franken_Stein's picture

 

Just start with the Rothschild family.

Everything else will fall in place then.

 

Nathaniel Rothschild.

 

I wonder why Putin didn't have him killed.

Putin also jailed Chodorkovsky, another Rothschild front man.

 

Fri, 08/05/2011 - 16:01 | 1528080 Shell Game
Shell Game's picture

Erklärung der Unabhängigkeit, Hündinnen!!

Fri, 08/05/2011 - 15:53 | 1528056 mess nonster
mess nonster's picture
The Markets (with apologies to Edward Lear)

User Rating:

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- vote - 1 2 3 4 5 6 7 8 9 10

  Print friendly version   E-mail this poem to e friend   Send this poem as eCard   Add this poem to MyPoemList     They went to sea in a Sieve, they did,
In a Sieve they went to sea:
In spite of all their friends could say,
On a winter's morn, on a stormy day,
In a Sieve they went to sea!
And when the Sieve turned round and round,
And every one cried, `You'll all be drowned!'
They called aloud, `Our Sieve ain't big,
But we don't care a button! we don't care a fig!
In a Sieve we'll go to sea!'
Far and few, far and few,
Are the lands where the Goldmans live;
Their heads are green, and their hands are blue,
And they went to sea in a Sieve.

They sailed away in a Sieve, they did,
In a Sieve they sailed so fast,
With only a beautiful pea-green veil
Tied with a riband by way of a sail,
To a small tobacco-pipe mast;
And every one said, who saw them go,
`O won't they be soon upset, you know!
For the sky is dark, and the voyage is long,
And happen what may, it's extremely wrong
In a Sieve to sail so fast!'
Far and few, far and few,
Are the lands where the JP Morgans live;
Their heads are green, and their hands are blue,
And they went to sea in a Sieve.

The water it soon came in, it did,
The water it soon came in;
So to keep them dry, they wrapped their feet
In a pinky paper all folded neat,
And they fastened it down with a pin.
And they passed the night in a crockery-jar,
And each of them said, `How wise we are!
Though the sky be dark, and the voyage be long,
Yet we never can think we were rash or wrong,
While round in our Sieve we spin!'
Far and few, far and few,
Are the lands where the Bernankes live;
Their heads are green, and their hands are blue,
And they went to sea in a Sieve.

And all night long they sailed away;
And when the sun went down,
They whistled and warbled a moony song
To the echoing sound of a coppery gong,
In the shade of the mountains brown.
`O Timballo! How happy we are,
When we live in a Sieve and a crockery-jar,
And all night long in the moonlight pale,
We sail away with a pea-green sail,
In the shade of the mountains brown!'
Far and few, far and few,
Are the lands where the Geithners live;
Their heads are green, and their hands are blue,
And they went to sea in a Sieve.

They sailed to the Western Sea, they did,
To a land all covered with trees,
And they bought an Owl-go-rythm, and a useful Cart,
And a pound of gold, and a Cranberry Tart,
And a hive of Treasury Bills.
And they bought a PIIG, and some green margin calls,
And a lovely Obama with lollipop paws,
And forty bottles of cheap blended whisky,
And no end of QQQE's.
Far and few, far and few,
Are the lands where the Comex's live;
Their heads are green, and their hands are blue,
And they went to sea in a Sieve.

And in twenty years they all came back,
In twenty years or more,
And every one said, `How tall they've grown!
For they've been to Jackson Hole, and the Downgraded Zone,
And the hills of the Boehners galore!'
And they drank their health, and gave them a feast
Of dumplings made of Cesium yeast;
And every one said, `If we only live,
We too will go to sea in a Sieve,---
To the hills of the Boehners galore!'
Far and few, far and few,
Are the lands where the Fed POMO's live;
Their heads are green, and their hands are blue,
And they went to sea in a Sieve.

Fri, 08/05/2011 - 15:58 | 1528069 eurusdog
eurusdog's picture

Still holding my EURUSD shorts form 1.4329 The debt taken on by the ECB and possible interest rate downgrades is still worth the risk on this one.

Fri, 08/05/2011 - 16:04 | 1528088 MobBarley
MobBarley's picture

It's all OKIE DOKIE.

 

They can just print money, which they will do

and nobody even has to know! It's beautiful.

QE3 to infinity!

As long as your yuppy food stamps continue

to purchase Sushi, Saki, and Sex you'll all

be none the wiser!

 

Fri, 08/05/2011 - 16:10 | 1528107 sherryw
sherryw's picture

Couldn't figure out the last stat - I thought you were injecting a bit of sarc. Then I realised you meant 'TO' girls under sixteen!!!

Fri, 08/05/2011 - 16:19 | 1528129 nearvana
nearvana's picture

That’s exactly the plan!!! The Germans are probably the last one stopping ECB from "printing" money, because of their hyperinflation trauma. Well, in couple of months or an year, when they realize what is the amount of their debt   (through the guarantees for the insolvent ESFS), they will probably find it less painful to risk hyperinflation than to pay for everyone else in Europe.

The plan runs smoothly so far! Sad but troA ...

Fri, 08/05/2011 - 16:16 | 1528131 chump666
chump666's picture

nasdaq still neg and bear signals on the s&p and dow...what a session . violatilty central.  on EZ.  the ECB news was to keep the EUR bid.  the ECB is one massive unrealized loss, they are getting desperate, italy is going to implode very soon...actually the whole EZ.  not much hope there at all.

Fri, 08/05/2011 - 16:22 | 1528141 chump666
chump666's picture

...ZH is right eventually germany will tell the insolvant crap countries to shove it, starting with greece. 

Fri, 08/05/2011 - 16:36 | 1528178 Franken_Stein
Franken_Stein's picture

 

Good the ECB stands in Frankfurt.

So it will be easier for Germans to blow it up.

 

And not far away in the Messeturm, there you have Goldman Sachs.

The JEW bank.

 

Jews learn from early on that stealing is OK.

That's what they suck in with the mother's milk.

 

Working hard with their own hands is as foreign a concept to them as eating pork is for a muslim.

 

When will we finally see a 2nd Timothy McVeigh in the U.S., blowing up Marriner Eccles with its Jewish one-man show in it ?

 

Fri, 08/05/2011 - 17:04 | 1528254 Azannoth
Azannoth's picture

I agree with many things you say, but man you begin to scare me! Take your pills and chill out.

Besides a frontal attack is rearely the best strategy to defeat your enemies. Fully advertising your intentions and chargin head on is mostly just suicide with no damage done

Fri, 08/05/2011 - 17:22 | 1528308 falak pema
falak pema's picture

I hope your drink was worth this amazing confession...drunk as dracula

Fri, 08/05/2011 - 20:57 | 1528800 Hulk
Hulk's picture

We have found Mel Gibson's Doppelganger...

Fri, 08/05/2011 - 17:32 | 1528341 magpie
magpie's picture

So do we get to print out and wear Breviek's fantasy medals ? Before or after blowing ourselves up ?

Fri, 08/05/2011 - 17:41 | 1528351 New_Meat
New_Meat's picture

Stein-I think that your continued comments along these lines will a) keep this thread at the head of the line and b) if your pillz and noze manage to hold out, why you might drive the thread above the 1000 comment level.

TAKE IT TO THE NEXT LEVEL mano!

- Ned

Fri, 08/05/2011 - 17:09 | 1528263 Highrev
Highrev's picture

The blowups will come out of the U.S. and Japan (again).

You’re losing your money betting against Europe.

What is it that you don’t understand about that?

Fri, 08/05/2011 - 17:11 | 1528271 falak pema
falak pema's picture

jews must have a fascination for frankenstein. I think it goes back to a freudian slip, the original Europa that Zeus mated to populate Europe must have been a Jew. All true bred teutonic germans feel tectonic about having been born in the womb of a yiddish female. Original sin was born right there in Teutoburg forest where he mated her. "Warrom Zeus has tu fikkken ein yuden fraulein;  aaach mein gott!"

Fri, 08/05/2011 - 17:20 | 1528302 magpie
magpie's picture

harhar

funny but neither factually or mythologically correct

So, on to the next downgrade adventure of the three rating racketeers .

Belgium ? French Immos after the Norwegians started investing there, sure sign of the top.

Fri, 08/05/2011 - 17:24 | 1528312 falak pema
falak pema's picture

factually yawol, mythologically is anybody's guess!

Fri, 08/05/2011 - 17:27 | 1528328 magpie
magpie's picture

no, the myth says clearly that never was the case, the facts are even more in your favor
http://www.igenea.com/docs/bams.htm

Fri, 08/05/2011 - 17:46 | 1528366 Franken_Stein
Franken_Stein's picture

 

Are you Jewish ?

If so, shame on you !

 

If not, why do you care ?

 

Ask any muslim, and he will tell you:

Death to the Jews !

 

1.5 billion people cannot be wrong.

 

Fri, 08/05/2011 - 17:41 | 1528356 Franken_Stein
Franken_Stein's picture

 

And Nathalie Portman, another cheap ugly Hollywood Jew whore, is dating this Rothschild clown in London.

Thank God that this other worthless Jew whore, Amy Winehouse, is now finally dead !

 

Only a dead Jew is a good Jew.

Because he/she cannot steal from others anymore.

 

 

That Americans are harboring this genetically inferior scum is very surprising.

And it's also a reason why your stars-and-stripes loser nation sucks so much.

 

Americans like to be fucked in the ass by the Jews.

Why do you allow them to spread their worthless DNA and most importantly, their redundant and ridiculous religion.

 

Jews add no value to mankind, so let's collectively get rid of them.

 

Fri, 08/05/2011 - 17:52 | 1528374 Franken_Stein
Franken_Stein's picture

 

Next time some American proselytizing Christian is trying to push his religion on me in the street,

I'm gonne try to punch him or her so hard in the face, that not only his nose breaks, but that the complete facial skull will be cracked in hundred little pieces of bone.

 

That will teach this American motherfucker a lesson that he/she will never ever forget in her whole life.

 

Fri, 08/05/2011 - 18:10 | 1528386 MoneyWise
MoneyWise's picture

Interesting discussion. To be depressive and stay that way in purpose is very sick, you know what I mean.. Always concentrate on Negative, always.. That's what this site about.. All ZH members should be prescribed Zoloft or Prozac at least for FREE.. Staying positive, actually it's a human nature, not sure what kind of creatures running the show here.. What's wrong??? What is you message?

Say something positeve ones at least.. So? what are you saying? Depression?

I say, you are full of SSSSSt.. How about that?

 

Fri, 08/05/2011 - 18:26 | 1528392 MoneyWise
MoneyWise's picture

And for the record, I'm not Jewish, but why this Franken_Stein a.k.a Stalin Creep allowed to keep posting hate posts based on nationality and religion?

Look, Idiot, did you even know, that Jesus was a Jew??
Is that a surprise for you?

===
"And above His head they put up the charge against Him which read, "THIS IS JESUS THE KING OF THE JEWS.""
===
Yes, Jesus was a Jew in the earth live.. And that's no accident. Ask yourself why? And if you cannot answer that question, I'll help you.

Fri, 08/05/2011 - 18:35 | 1528400 Franken_Stein
Franken_Stein's picture

 

Jesus does not exist and didn't exist.

 

If you want to believe in a God who cannot be seen, heard, smelled, touched or tasted,

then you might just as well believe in invisible unicorns, invisible dwarfs, invisible spaghetti monsters.

It's all the same.

 

God is an invention of the human mind by human beings.

When will you ever get that into your thick American head ?!

 

Christianity, like every other religion, is a carefully thought out process of indoctrination, no different from brainwashing.

Is this so hard to understand ?

 

There are hundreds of examples from the Bible that violate the laws of physics.

The Bible doesn't make sense.

It's illogical.

 

Fri, 08/05/2011 - 19:37 | 1528525 MoneyWise
MoneyWise's picture

"If you want to believe in a God who cannot be seen, heard, smelled, touched or tasted" ========= He can be seen, touched and feel. It's only YOUR problem that you cannot communicate.. Can you see or touch or feel Radio waves? Your Hard is dead and you have no soul, that's why you CANNOT feel anything, but "real thing" like when someone hit you in your stupid face with the sledgehammer, that you going to understand and feel for sure. Just a small teen Nazi zombie, which drink too much beer and think he knows everything. Comeback in 20 years, kid or better shut up, before you hurt yourself, if you don't know what are you talking about..

Fri, 08/05/2011 - 21:45 | 1529069 jomama
jomama's picture

what would flying spaghetti monster do?!

Fri, 08/05/2011 - 19:05 | 1528436 honestann
honestann's picture

Wait one second here!!!

You claim saying "god is a fiction, an invention of the human mind just like Santa Claus" is "hate speach".

But it is somehow not hate speach to say, "if you happen to miss mass the day before you die (or some other arbitrary triviality), you shall suffer the pain of burning in fire for... not a second... not a minute... not an hour... not a day... not a week... not a month... not a year... not a decade... not a century... not a millennia... not a million years... not the age of the universe... but literally without end".

Boy, some people really need to get their brainwashed heads out of their unwashed butts and just for a few moments consider what they advocate and justify.  Holy smokes!

Fri, 08/05/2011 - 21:48 | 1529077 jomama
jomama's picture

am i really the only one who thinks the entire judeo-christian theology is based on egyptian mythology?

do i really need to point out the extent of plagiarism?

Fri, 08/05/2011 - 18:50 | 1528414 dcb
dcb's picture

central bankers rule. you knoew nthat when push came to shove the only thing that matters to the status quo is the status quo

Fri, 08/05/2011 - 18:51 | 1528415 MoneyWise
MoneyWise's picture

"Jesus does not exist." OK, end of the discussion.

You are dead walking man.. I don't think you are even 30 years old,

let see what you going to say into your 50th, but I don't care, anyways (somewhat)..

For saying that in public you did enough damage for yourself.

Just another lost soul..

You don't even understand how serious it is.. But

I'll pray for you, boy, whatever you say.

"So, Lord Please Have Mercy on His Soul" Amen..

The best I can do.. Please GOD help us..

Fri, 08/05/2011 - 19:04 | 1528431 Franken_Stein
Franken_Stein's picture

 

You are nothing but a descendent of white immiigrants from Europe, you clown.

You stole the country from the rightly owners of America, the Native Indians.

You have absolutely no right to be in America.

 

But here in Europe, we don't want you back either.

 

People here in Europe were believing in this religious shit 1492 years before any of you clowns or your ancestors ever set foot on this land named after Amerigo Vespucci.

 

You fools, your nation sucks.

Hollywood sucks.

 

Why don't you just accept the fact, that hhuman beings are nothing but complicated biological machines ?

 

Did you know that the human body consists to 70 % of water ?

 

And when your body is burnt in the oven one day, also called cremation, then you will end up as H20 vapor and gaseous CO2, because the carbon inside your body will be oxidized.

Everything that isn't burnt, say 15 % of your body mass, will end up as ash.

That's the simple truth.

Get used to it.

 

Ahahahaha !

 

Trust me, us Germans proved that in over 6 million cases.

The laws of physics always apply.

 

Fri, 08/05/2011 - 18:51 | 1528416 Franken_Stein
Franken_Stein's picture

 

Religion is opium for the masses.

to keep them stupid and dumbed down.

So they never question the system that they are living in.

 

So they replace knowledge with belief.

What a joke.

 

Do you also believe in Santa Claus ?

The same Santa Claus who was invented by Coca Cola Company in the 1930s and has nothing to do with Christmas ?

Please.

 

It's all a farce.

 

Fri, 08/05/2011 - 18:54 | 1528422 XRAYD
XRAYD's picture

So, could we then say that after two tries in the last century Germany finally, by economic means won the war to rule Europe? Something it could not do with all its military might?

Is there a lesson her for the USA about how to build empires?

Fri, 08/05/2011 - 19:04 | 1528440 iNull
iNull's picture

I know there's a Dylan song in this article somewhere. Not sure if it's...

1) This=> http://www.youtube.com/watch?v=fphDnT36W4w

2) Or This = > http://www.youtube.com/watch?v=FavBDpg91gA&feature=related

Fri, 08/05/2011 - 19:22 | 1528486 Use of Weapons
Use of Weapons's picture

Someone lost their pot, and is hitting rock bottom... time for an ancient meme. This is not your MSM milk fed veal, this is ZH:

 

http://www.youtube.com/watch?v=EmOH5f1J1Uc

 

 

 

Fri, 08/05/2011 - 19:30 | 1528510 iNull
iNull's picture

A timeless meme that still holds true.

Too bad that we have become so soft and effeminate ("boy lovers") that we no longer have the balls to take on TPTB. I think though that the pendulum swings both ways. It has swung very far to the left, and now, having reached its apogee, it is about to swing in the other direction. And unfortunately, it will probably go a little too far in that direction as well.

Wed, 09/14/2011 - 04:52 | 1667430 chinawholesaler
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