Front Page Of Main Austrian Business Press: "Politiker Riskieren Hyperinflation"

Tyler Durden's picture

Now, we admit our German is a little rusty, but we are fairly confident we get the gist of it. Also, it appears that Die Presse says "Hyperinflation" not "Hyperdeflation" - have even the Austrians realized that no government, political system or social regime in the history of mankind ever imploded due to hyperdeflation?

We present the first two paragraphs for our German speaking readers in their entirety. We are confident everyone else will also grasp the hatred toward the creeping bailouts that now seeps everywhere, and why the alternative is, as Die Presse, says hyperinflation.

Der (offenbar zu kleine) Euro-Rettungsschirm ist von den nationalen
Parlamenten noch nicht einmal abgesegnet, da ist schon von einer
gewaltigen Aufstockung die Rede: Am Rande der laufenden Weltbanktagung
in Washington wird darüber geredet, wie man dem mit 440 Milliarden Euro
dotierten Rettungsschirm EFSF im Falle des Falles „mehr Feuerkraft“
verleihen könnte.


Einfach aufstocken geht schwer: In „Zahlerländern“ wie Deutschland
oder Österreich ist der Unmut in der Bevölkerung über die Riesensummen,
die für die Rettung der Eurozone aus Steuermitteln bereitgestellt werden
müssen, schon jetzt groß. EU-Währungskommissar Olli Rehn spricht
deshalb schon offen darüber, dass es notwendig werden könnte, die Mittel
des EFSF zu „hebeln“, um „aus einem Euro fünf“ zu machen. Angelpunkt
dieses Finanz-Kunststücks soll die Europäische Zentralbank (EZB) werden.
Druck dazu kommt unter anderem von den USA, deren Finanzminister
Timothy Geithner gemeint hatte, die Eurorettung werde nur funktionieren,
wenn der Rettungsschirm unbegrenzte Haftungen übernehme.


Die wildeste Variante sieht so aus: Der EFSF kauft Anleihen von
Pleitestaaten wie etwa Griechenland auf und hinterlegt diese als
„Sicherheiten“ für weitere Kredite bei der EZB. Mit diesen Krediten
kauft er wieder Staatsanleihen, die er als Sicherheiten für neuerliche
Darlehen bei der Notenbank hinterlegt. Das wäre eine wesentliche
Änderung der bisherigen Pläne, die vorsahen, dass sich der EFSF mithilfe
von Staatsgarantien auf dem Kapitalmarkt finanzieren müsste.

Full thing below:

h/t Open Europe

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tmosley's picture

From Google translate:

The (apparently too small) euro rescue package is the national
Parliaments have not even approved, there is already a
tremendous increase in the speech: On the edge of the ongoing World Bank meeting
Washington is talking about how the 440 billion euros
endowed rescue EFSF in extreme cases "firepower"
could give.
Simply top up is difficult: In "payer" countries such as Germany
and Austria is the resentment among the population about the enormous sums
provided for the salvation of the Euro zone by taxes
must already large. EU Monetary Affairs Commissioner Olli Rehn says
therefore been open about the fact that it might be necessary, which means
to "pry" the EFSF to make "one of five euros." fulcrum
this financial piece of art is to be the European Central Bank (ECB).
Pressure to come by, inter alia, the United States, whose finance ministers
Timothy Geithner had said that the rescue will work only ,
if the bailout assume unlimited liability.
The wildest variant looks like this: The EFSF buys bonds from
Bankrupt states such as Greece and deposited them as
"Collateral" for further loans from the ECB. With these loans
he buys back government bonds as collateral for his recent
Loan with the bank deposit. That would be a significant
Changes in current plans, which stipulated that the EFSF using
financing of government guarantees on the capital market would have.

tsx500's picture

From TSX500 translate :          BTFD

Mr Lennon Hendrix's picture

The system will collapse.  It was built to.

nope-1004's picture

These types of articles can't be good for the Fed's new "social media whatchdog".

Oh, and, Fuck you Bernanke.


Greyhat's picture

"The wildest variant looks like this: The EFSF buys bonds from Bankrupt states such as Greece and deposited them as "Collateralfor further loans from the ECB."

This is the real meaning of collateral damage... ;)

The German constitutional high court has set strict limits to future bailouts, so they need to take the ECB train now. Or openly break the constitutional limits. Trust me, nobody wants revolting Germans, the ECB will have to pay.

But our friends from the City of London and the other non-euro share holders in the ECB , do they want to take the risks collectively with the rest of the euro-europeans?

Smiddywesson's picture

"Trust me, nobody wants revolting Germans"
YOU might not be attracted to them, but it's a little over the top to call them revolting.

Real Estate Geek's picture


I got your collateral . . . right here!

He_Who Carried The Sun's picture

This is utter nonsense.

The moment the ECB would try something like this, the Germans would mobilize.

Its that simple.

Ahmeexnal's picture

The only mobilization you'd see is them packing the beer gardens in a year long Oktoberfest to be instituted by the power elite.

Cast Iron Skillet's picture

don't know about that ... there have been protesters in the streets against the EFSF in a number of German towns. And in Stuttgart, they have been holding Monday night protests attended by thousands of people against a new train station for over a year. Germans are not as complacent as you seem to think.

He_Who Carried The Sun's picture

Given were he's grazing, you must not wonder....

Seriously, do you believe that S&P would allow this clunkers for cash game without sending it all down to C ---- ?


AD70's picture

The gist of the article is that the EFSF will use the bonds it has already purchased as collateral at the ECB for future purchases of sovereing debt with a multiplier effect to get to 5:1 on the initial authorized amount of the EFSF fund.  I'm not sure where the ECB would get the resources to sterilize all that.

boiltherich's picture

Those bonds, which they paid full price for when nobody else wanted them at any price, how can you use "garbage" as collateral for more loans in the future?  It would be like me buying a huge house everyone knows I cannot afford and then using that as collateral for a Bentley everyone knows I can't afford. 

PulauHantu29's picture

Thanks for the translation. Looks like a stuggle between Bankers (who do not want to lose very Fat Bonuses) and Europeans working/retired Folks (mainly German speaking peoples) who have the burden and the pain.

It's gonna get pretty heated I suspect.

BTW, Anyone read the Faber article posted on ZH earlier?

bigdumbnugly's picture


getten zee assenheimer in heir mach schnell!

Hedgetard55's picture

You used German when you should have used Austrian.

Shvanztanz's picture

The (apparently too small) Euro rescue package has not even been approved and it is is being discussed at the periphery of a running World bank meeting in Washington how the EFSF could be granted the endowed, 440 billion Euro bailout, just in case. 

Shvanztanz's picture

Actual human being translation:


The (apparently too small) Euro rescue package has not even been approved and it is is being discussed at the periphery of a running World bank meeting in Washington how the EFSF could be granted the endowed, 440 billion Euro bailout, just in case. 


Simply stocking up will be difficult, In “Payer countries” like Germany and Austria, the displeasure of the population about the enormous sum, which must be provided in advance from tax revenues,  is already large now. Therefore, EU Monetary Affairs Commissioner Olli Rehn, says that it could be necessary to “pry open” the EFSF funds, in order to make “five euros out of one.”


TheEuropean Central Bank (ECB/EZB) should become the fulcrum of these financial tricks. Additional pressure comes, among others, from the USA, whose Finance Minister, Timothy Geithner, had mentioned, the bailout of the Euro will only work, if the bailout assumes unlimited liability. 


The wildest variant looks like: The EFSF buys up the bonds of bankrupt states, like Greece, and deposits them as “securities” for additional credit with the EZB (ECB). With these credits, it purchases additional governments bonds, which it deposits as securities for new loans with the Fed. That was an essential change from the previous plans, in which the EFSF had to  finance itself with the help of state guarantees on the capital market. 




jdelano's picture

Don't speak German, but intuitively I'd venture a guess that "Pry open" should be "lever up"

Shvanztanz's picture

I think you must be right. I know German, but not Finance. Thanks!

gmrpeabody's picture

Don't forget that "bend over" is also in there somewhere.

Shvanztanz's picture

how did I miss that?

(smacks forehead)

here it us, 


"Uber-benden mussen Sie Alle!" 

luna75's picture

Oro mis amigos!

The Fonz...before shark jump's picture

I demand anchluss between the euro and physical will make everything better.

mayhem_korner's picture

Why does it feel like we just passed the "it's getting ugly" sign on the SHTF highway?

cynicalskeptic's picture

Highway?   Feels like we're doing 80 mph on a washboard pothole filled gravel road......  one hell of a rough ride and it doesn't seem like the brakes are working....and we're on a LONG downhill grade - with lots of curves....  reminds me of this back road into Death Valley out of the ghost town of Rhyolite

buzzsaw99's picture

you forgot the washed out bridge

Au_Ag_CuPbCu's picture

That and the fact that there are at least 15 incompetent, blithering idiots all wrestling over the steering wheel.

kurzdump's picture

Ja ja, hierzulande redet man eben Tacheles! Jawohl, so sieht's aus!

NoClueSneaker's picture

Translate "jaja" to the audience ... :-P

kito's picture

is it just me, or does timmy sound like a guy trying to make a certain currency worse than his own?

Yamaha's picture

I'm just glad there is no civil unrest in the world! Then we might have more problems......

Catequil's picture

On the contrary, you have civil unrest!!! Be glad it's isolated in the middle East & Africa, for now.

Now with the protests in Manhattan things are getting ugly. As I come from a former socialist country I know the symptoms and believe me, this is just the start of a change for US. Two possible paths:

a) either those in real power at present guide the society into an immitation of a change (striving for the least possible dammage of the status quo)

b) or there is a real change

guess what's better for the middle class (currently under extinction) and regular Joe's

P.S. for (a) to happen they will create for you an enemy (needs to be more scary than the current... why not China or Russia)


SheepDog-One's picture

'Hatred of bailouts everywhere'...central banksters caught between a rock and a hard place. Its not 2008 anymore when people thought bailouts were cool, now they fool no one.

kito's picture

sounds like deeeeeeeeee-flation to me sheepie

SheepDog-One's picture

'Deflation', similar to the Hindenberg.

I did it by Occident's picture

combustive deflation.  I wonder what that looks like economics-wise. 

fyrebird's picture

Well everything burns. Of course.

JailBank's picture

Bail outs are not cool? BAIL OUTS AREN'T COOL!? Taking my money and to give it to private businesses that made horrible investments, and inflating profit margins over years of money priting is effing awesome. We should have been doing this as a nation for years. That debt needs to be up around $30-$40 trillion. There should be a $15 trillion bail out so everyone in the US can be a millionare-billionare that pays more in taxes and can buy more shit. All problems solved homie.

fyrebird's picture

And don't forget the ponies. Everyone gets a pony.

I did it by Occident's picture

Finally, finally after all these years of wishing,  I will get a pony!!  childhood aspirations vindicated! 

Steel_Preacher's picture

To hell with the Pony, I want a UNICORN that poops skittles!

dxj's picture

I want a pony that eats debt and shits bricks of gold ... ain't going to happen.