This page has been archived and commenting is disabled.

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

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 05/23/2012 - 12:37 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Cartoonish.

Wed, 05/23/2012 - 12:40 | Link to Comment Cojones
Cojones's picture

I sure as hell won't pay either.

Wed, 05/23/2012 - 12:42 | Link to Comment BKbroiler
BKbroiler's picture

I got this. Check's in the mail.

Wed, 05/23/2012 - 12:44 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I got this. Check's in the mail.

- Ben S. Bernanke

Wed, 05/23/2012 - 12:49 | Link to Comment BKbroiler
BKbroiler's picture

- Angela S. Merkel

Wed, 05/23/2012 - 12:51 | Link to Comment Doubleguns
Doubleguns's picture

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

Wed, 05/23/2012 - 13:14 | Link to Comment sunaJ
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.

Wed, 05/23/2012 - 16:00 | Link to Comment Leopold B. Scotch
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.

Wed, 05/23/2012 - 12:53 | Link to Comment redpill
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. 

Wed, 05/23/2012 - 12:44 | Link to Comment alangreedspank
alangreedspank's picture

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

Wed, 05/23/2012 - 13:22 | Link to Comment WatchingIgnorance
WatchingIgnorance's picture

Thank you!

Wed, 05/23/2012 - 12:48 | Link to Comment Piranhanoia
Piranhanoia's picture

Like "Fritz the Cat"

Wed, 05/23/2012 - 12:52 | Link to Comment Boston
Boston's picture

Bullish!

Wed, 05/23/2012 - 12:58 | Link to Comment Eireann go Brach
Eireann go Brach's picture

They missed the part showing bankers hanging from lamposts!

Wed, 05/23/2012 - 13:50 | Link to Comment RSloane
RSloane's picture

It befits the scenario.

Wed, 05/23/2012 - 12:38 | Link to Comment PrintingPress
PrintingPress's picture

Are russian missile tests priced in?

Wed, 05/23/2012 - 15:30 | Link to Comment noses
noses's picture

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

Wed, 05/23/2012 - 12:41 | Link to Comment lasvegaspersona
lasvegaspersona's picture

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

Wed, 05/23/2012 - 12:43 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

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

Wed, 05/23/2012 - 12:41 | Link to Comment Hopeless for Change
Hopeless for Change's picture

"Eurocalypse".  Love it.

Wed, 05/23/2012 - 12:58 | Link to Comment brooklynlou
brooklynlou's picture

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

Wed, 05/23/2012 - 12:43 | Link to Comment Wheninfinance
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

http://wheninfinance.tumblr.com/post/23613535725/whenever-there-is-a-euro-g8-xyz-summit-for-leaders

Wed, 05/23/2012 - 13:17 | Link to Comment blunderdog
blunderdog's picture

They're all already dead!

Wed, 05/23/2012 - 12:43 | Link to Comment Sophist Economicus
Sophist Economicus's picture

Gold revaluation coming soon....

Wed, 05/23/2012 - 12:44 | Link to Comment ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

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

Wed, 05/23/2012 - 12:44 | Link to Comment jus_lite_reading
jus_lite_reading's picture

I thought WB made this! LMAO

 

Wed, 05/23/2012 - 12:50 | Link to Comment NotApplicable
NotApplicable's picture

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

Wed, 05/23/2012 - 12:46 | Link to Comment francis_sawyer
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...

Wed, 05/23/2012 - 12:48 | Link to Comment tahoebumsmith
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...

Wed, 05/23/2012 - 13:00 | Link to Comment Joshua_D
Joshua_D's picture

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

Wed, 05/23/2012 - 12:46 | Link to Comment insanelysane
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.

Wed, 05/23/2012 - 14:12 | Link to Comment nawerdenn
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. 

Wed, 05/23/2012 - 18:12 | Link to Comment brunoaa
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.

Wed, 05/23/2012 - 12:51 | Link to Comment Mercury
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

Wed, 05/23/2012 - 15:09 | Link to Comment BigJim
BigJim's picture

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

Wed, 05/23/2012 - 12:50 | Link to Comment Undecided
Undecided's picture

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

Wed, 05/23/2012 - 12:50 | Link to Comment Undecided
Undecided's picture

dupe

Wed, 05/23/2012 - 12:53 | Link to Comment Jason T
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?

Wed, 05/23/2012 - 12:54 | Link to Comment stoverny
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

Wed, 05/23/2012 - 12:55 | Link to Comment Bobby Lee
Bobby Lee's picture

Where have you figured in the inevitable military coup?

Wed, 05/23/2012 - 12:58 | Link to Comment skepticCarl
skepticCarl's picture

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

Wed, 05/23/2012 - 13:06 | Link to Comment kralizec
kralizec's picture

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

Wed, 05/23/2012 - 14:00 | Link to Comment Nachdenken
Nachdenken's picture

its on page 2.

Wed, 05/23/2012 - 13:07 | Link to Comment Milton Waddams
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

Wed, 05/23/2012 - 13:11 | Link to Comment fuu
fuu's picture

<-- Pro-bailout

<-- Anti-bailout

Wed, 05/23/2012 - 14:02 | Link to Comment WAMO556
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!!!

Wed, 05/23/2012 - 14:47 | Link to Comment fuu
fuu's picture

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

Wed, 05/23/2012 - 13:20 | Link to Comment blunderdog
blunderdog's picture

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

Wed, 05/23/2012 - 13:13 | Link to Comment sockratte
sockratte's picture

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

Wed, 05/23/2012 - 13:31 | Link to Comment Pancho Villa
Pancho Villa's picture

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

Wed, 05/23/2012 - 13:34 | Link to Comment BigPerm
BigPerm's picture

Does Greece still own its gold reserves? I havent heard much about the gold reserves lately?

Wed, 05/23/2012 - 13:35 | Link to Comment q99x2
q99x2's picture

Moe, Larry, Cheeze.

Wed, 05/23/2012 - 13:45 | Link to Comment TNTARG
TNTARG's picture

They missed the part of countries getting drone's attacks and other nice war machines dropping bombs all over their citizens, industries and infrastructure.

I'm sick of this shit. I think I'll spend my savings in hollydays somewhere far, somewhere wild. Fuck those subhuman banksters, fuck them all.

Wed, 05/23/2012 - 13:50 | Link to Comment earleflorida
earleflorida's picture

All this unnecessary fiscal destruction. If only the U.S. Free-Market-Capitalist-System had played by the rules and let the "TBTF's" fail. Surely, the U.S. Bankruptcy Courts could have by now, unwound all the unknowns and brought about closure to this ungodly travesty. Unfortunately, as the CB's logic has it - saving the minority [when it's the elite minority] rather than the whole, has now metastasized a monetary cancer upon the entire global free markets!

Question:  How is it that the 'Supreme's' Supremacy Court's haven't chimed in on a non-elected FRB Entity that literally and subjectively controls the countries fate? Oh! I think I've answered my own question. That being it would be a conflict-of-interest knowing that the Supreme's are a non-elected entity by "Special Interest". Quite nice - this Federalist Party? 

Wed, 05/23/2012 - 14:38 | Link to Comment Wood
Wood's picture

Greece will never leave the Euro. Germany will leave first. Believe it!!

How many welfar deadbeats have ever volunteered to give up the dole?

Wed, 05/23/2012 - 15:33 | Link to Comment noses
noses's picture

You can't "leave the Euro" anyway. To get out of the common currency system one has to leave the European Community and become something like Switzerland with Leprosy and HIV thrown in for good measure. If the rules weren't like that Greece would have sent to hang out and dry years ago. It's like talking about "California leaving the USD".

Wed, 05/23/2012 - 15:37 | Link to Comment zerozam
zerozam's picture

Prepare for Spaxit, Italixit, Porxit, Franxit, Irisxit as well...


Wed, 05/23/2012 - 14:38 | Link to Comment vh070
vh070's picture

It's all rather drachmatic.

Wed, 05/23/2012 - 15:38 | Link to Comment noses
noses's picture

And still I would miss the Euro a bit. Crossing the border to get some Belgian chocolates and some dope from the Netherlands has never been easier before. Of couse we could always agree on using Silver and Gold for that kind of transactions.

Wed, 05/23/2012 - 15:39 | Link to Comment Helix6
Helix6's picture

I never saw so much hand-wringing over the shape of ink spoots on paper in my life...

Wed, 05/23/2012 - 15:39 | Link to Comment Helix6
Helix6's picture

I never saw so much hand-wringing over the shape of ink spoots on paper in my life...

Wed, 05/23/2012 - 16:11 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

You'll note that fear-mongering FT put the "Move to restore national currency" very late in the default sequence.  If it's done early and in an orderly fashion, the negative effects are more muted.  But, of course, FT being a mainstream financial media rag wants the Greeks to fear the right thing to do (tell the EU banks to get stuffed like Iceland did) which would, in the long run, be better for them, but far worse for the banksters.

Mon, 08/20/2012 - 22:05 | Link to Comment serema
serema's picture

cheap wedding dresses sizes. In case you are a plus size junior, you could also order white celebration dresses for juniors. Mainly because our white party dresses for juniors are custom produced. If you select our white party dresses for juniors, it could fit cheap flower girl dresses your entire body shape

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