Flowcharting The Eurocalypse

Tyler Durden's picture

We have laid out in great detail over the past few months the contagious paths, game-theoretical endgames, and transmission channels that would occur should a nation (Greece for example) leave the Euro. Yet the covered matter is not simple, which is why sometimes the best representation is the visual one. The Financial Times has outdone themselves with the best graphical (and audio walkthrough) representation of this process. From the collapse of the domestic banking system (and its possible social implications) to the creation of a new 'local' currency absent foreign capital aid, to the obvious 'who's next?' question that leads inevitably to exaggerated bank runs across other weak European nations and ultimately more pressure on already weak economies to exit the Euro - hastening a wholesale Euro-breakup. Eurocalypse now indeed.



Source: The Financial Times

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Cojones's picture

I sure as hell won't pay either.

BKbroiler's picture

I got this. Check's in the mail.

Mr Lennon Hendrix's picture

I got this. Check's in the mail.

- Ben S. Bernanke

Doubleguns's picture

I think  there is one glaring error in the charts. "We wont pay" should read "We cant and wont pay".

sunaJ's picture

Just like with any totalitarian (or oligarchical) system, there is a sense among the population that we NEED the caretakers just as much as the caretakers believe that we NEED them.  It is perpetuated by the Hegelian Dialectic, but it is an unhealthy circle of dependence that is not necessarily real (think Stockholm Syndrome).  It is perpetuated by both sides for failure or unwillingness to look outside the cycle. 

Greeks will break the cycle once they are able to see and believe that, while breaking the cycle will be messy, chaotic and yes, perhaps painful, it is best (or a matter of survival) to seek solutions outside those provided by the caretakers.  When they refuse the debt-backed solutions of these caretakers, it will represent their first positive step to break the cycle.  The breaking of the cycle will not come from the caretakers.

Leopold B. Scotch's picture

I think it is "they won't pay".  Basically, the Greeks could all actually start producing stuff other nations' want, while the populace suffers as debt slaves under the whip of their debt masters in order to meet their debt obligations.

Who wants to live under that? Especially when you know, if you are one who actually produces something, that the arranged payment structure coddles as much as possible the politically connected deadweight structure that needs a lot more austerity than it's getting??

Meanwhile, the unions and government workers refuse because they're all delusional and think they actually have some clout.

redpill's picture

It's tough to assume logical flows of action when the finances of the world can be impacted in a moment's notice by a handful of central bankers performing "coordinated" action. 

alangreedspank's picture

Solving debt problems with more debt creation and shuffling sounds very cartoonish as well.

Eireann go Brach's picture

They missed the part showing bankers hanging from lamposts!

PrintingPress's picture

Are russian missile tests priced in?

noses's picture

"In Russia you not tests missiles. In Russia, missiles test you."

lasvegaspersona's picture

I would have expected more from the FT....did they go tabloid while I was otherwise occupied?

GeneMarchbanks's picture

The British one did, yes. Seems you've been occupied the better half of the decade.

Hopeless for Change's picture

"Eurocalypse".  Love it.

brooklynlou's picture

"Eurocalypse"? Is that like more brutal than a "Metalocalypse"?

Wheninfinance's picture

Fucking get this sshit over with, if I were to put my bet on whether Greece exits or not, I would say this shit will repeat in an episode in Sepember.  I feel like I'm watching a rerun of Lost year after year


Sophist Economicus's picture

Gold revaluation coming soon....

ForWhomTheTollBuilds's picture

The windfall profit tax is gonna bite even more if the revaluation happens from $1000 than at $2000 though

jus_lite_reading's picture

I thought WB made this! LMAO


NotApplicable's picture

That's what I thought. I wonder, how much for this fine board game?

francis_sawyer's picture

This is like giving me a complete chemical description of how the lethal injection is going to kill me...


Just stick the fucking needle in me & get it over with...

tahoebumsmith's picture

Greece is merely the scapegoat.. As the printed ponzi props fail across the globe and economies retrace their trail back into the Abyss, little ol Greece with its 300bl in euro debt is going to take down the system? LOL If you want to know the real truth just forget about Greece and look at the 700 TRILLION DOLLAR DERIVATIVE leaning tower of ponzi...

Joshua_D's picture

Nothing to see here. Move along please. Look! A drachma!

insanelysane's picture

It just makes more sense for Germany to leave the Euro and set the mark close to the british pound.  Then the rest of these countries can stay in the Euro and push the EURUSD to 0.75 or below.  Germany has the resources and will to recreate their currency and distribute it in an orderly manner.

nawerdenn's picture

Then, NL, FI and A have to leave too, else they will have to hold the bag full of dog poo, just, that in this case, the bag will bury them with a brown mass and they will be screwed too so if there's a FIGANL EUR exit, we'll be lucky if the EUR is as stable as the Zimbabwe dollar. 

brunoaa's picture

When Germany goes back to the DM they will only transform into the new DM deposits of German residents/companies, thus minimizing the target 2 impact.

Mercury's picture

Where's the big circle that says:

Citizens re-examine what purpose they expect government to serve, at what price and under what conditions

BigJim's picture

The FT couldn't even begin to conceive that the 'citizens' have any choice in the matter.

Undecided's picture

all we need now is for Apple to have a bad quarter, and presto, kaboom!

Jason T's picture

1 can't pay 2, 2 can't pay 3, ...... 999,999,999 can't pay 1,000,000,00,000.  


Collapse.  no?

stoverny's picture

Translation: A bunch of bankrupt countries all owe each other money.

The entire system is AIG on a macro scale... no one can pay anyone else unless they get paid by someone who can only pay if they get paid by someone who can only pay if they get paid...


But don't worry they have all "managed risk" with CD swaps

Bobby Lee's picture

Where have you figured in the inevitable military coup?

skepticCarl's picture

William Banzai7 would have done a much better job.....

kralizec's picture

Exit ramp?!  Where's the exit ramp?!  LOL!

Milton Waddams's picture

[bailout] -> [rainbows and unicorns]

[no bailout] -> [bad stuff] ->  [terrible stuff] -> [stuff you absolutely do not want] -> [worse stuff] -> [chaos] -> [apocalypse] -> [everyone you care about dies]

So, where do you stand?

[ ] pro-bailout

[ ] anti-bailout

fuu's picture

<-- Pro-bailout

<-- Anti-bailout

WAMO556's picture

For real? Damn, how about one for "Don't Care"??? But I didn't junk you though. I am still laughing my ass off to your ingeniuty!!! For Real!!!

fuu's picture

Cheesy Bastard's idea about a year ago actually. Used to be pretty vogue.

blunderdog's picture

Most folks don't know that Cabin in the Woods is just an allegory for the banking system.

sockratte's picture

i still wonder whether the resulting political tensions would also lead to a breakup of the eu?

Pancho Villa's picture

Very nice chart. But it should be rearranged to look like a mushroom cloud.