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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Wed, 05/23/2012 - 12:37 | 2455334 GeneMarchbanks
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Wed, 05/23/2012 - 12:40 | 2455344 Cojones
Cojones's picture

I sure as hell won't pay either.

Wed, 05/23/2012 - 12:42 | 2455354 BKbroiler
BKbroiler's picture

I got this. Check's in the mail.

Wed, 05/23/2012 - 12:44 | 2455372 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 | 2455387 BKbroiler
BKbroiler's picture

- Angela S. Merkel

Wed, 05/23/2012 - 12:51 | 2455411 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 | 2455566 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 | 2456352 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 | 2455420 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 | 2455369 alangreedspank
alangreedspank's picture

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

Wed, 05/23/2012 - 13:22 | 2455627 WatchingIgnorance
WatchingIgnorance's picture

Thank you!

Wed, 05/23/2012 - 12:48 | 2455390 Piranhanoia
Piranhanoia's picture

Like "Fritz the Cat"

Wed, 05/23/2012 - 12:52 | 2455415 Boston
Boston's picture


Wed, 05/23/2012 - 12:58 | 2455458 Eireann go Brach
Eireann go Brach's picture

They missed the part showing bankers hanging from lamposts!

Wed, 05/23/2012 - 13:50 | 2455810 RSloane
RSloane's picture

It befits the scenario.

Wed, 05/23/2012 - 12:38 | 2455339 PrintingPress
PrintingPress's picture

Are russian missile tests priced in?

Wed, 05/23/2012 - 15:30 | 2456222 noses
noses's picture

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

Wed, 05/23/2012 - 12:41 | 2455350 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 | 2455365 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 | 2455352 Hopeless for Change
Hopeless for Change's picture

"Eurocalypse".  Love it.

Wed, 05/23/2012 - 12:58 | 2455457 brooklynlou
brooklynlou's picture

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

Wed, 05/23/2012 - 12:43 | 2455358 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


Wed, 05/23/2012 - 13:17 | 2455583 blunderdog
blunderdog's picture

They're all already dead!

Wed, 05/23/2012 - 12:43 | 2455360 Sophist Economicus
Sophist Economicus's picture

Gold revaluation coming soon....

Wed, 05/23/2012 - 12:44 | 2455373 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 | 2455368 jus_lite_reading
jus_lite_reading's picture

I thought WB made this! LMAO


Wed, 05/23/2012 - 12:50 | 2455407 NotApplicable
NotApplicable's picture

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

Wed, 05/23/2012 - 12:46 | 2455380 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 | 2455383 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 | 2455472 Joshua_D
Joshua_D's picture

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

Wed, 05/23/2012 - 12:46 | 2455385 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 | 2455908 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 | 2456827 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 | 2455395 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 | 2456127 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 | 2455402 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 | 2455403 Undecided
Undecided's picture


Wed, 05/23/2012 - 12:53 | 2455418 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 | 2455429 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 | 2455435 Bobby Lee
Bobby Lee's picture

Where have you figured in the inevitable military coup?

Wed, 05/23/2012 - 12:58 | 2455455 skepticCarl
skepticCarl's picture

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

Wed, 05/23/2012 - 13:06 | 2455504 kralizec
kralizec's picture

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

Wed, 05/23/2012 - 14:00 | 2455856 Nachdenken
Nachdenken's picture

its on page 2.

Wed, 05/23/2012 - 13:07 | 2455515 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 | 2455549 fuu
fuu's picture

<-- Pro-bailout

<-- Anti-bailout

Wed, 05/23/2012 - 14:02 | 2455869 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 | 2456059 fuu
fuu's picture

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

Wed, 05/23/2012 - 13:20 | 2455609 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 | 2455557 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 | 2455695 Pancho Villa
Pancho Villa's picture

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

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