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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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Mon, 09/26/2011 - 11:38 | 1711359 tmosley
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.

Mon, 09/26/2011 - 11:53 | 1711436 tsx500
tsx500's picture

From TSX500 translate :          BTFD

Mon, 09/26/2011 - 12:18 | 1711561 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The system will collapse.  It was built to.

Mon, 09/26/2011 - 12:57 | 1711774 nope-1004
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.

 

Mon, 09/26/2011 - 11:56 | 1711457 Greyhat
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?

Mon, 09/26/2011 - 15:17 | 1712423 Smiddywesson
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.

Mon, 09/26/2011 - 17:59 | 1713069 Real Estate Geek
Real Estate Geek's picture

Collateral?

I got your collateral . . . right here!

www.youtube.com/watch?v=-zJlsc8GU50


Mon, 09/26/2011 - 12:02 | 1711492 He_Who Carried ...
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.

Mon, 09/26/2011 - 12:29 | 1711669 rpboxster
rpboxster's picture

don't you mean "udder"?

Mon, 09/26/2011 - 12:35 | 1711698 Ahmeexnal
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.

Mon, 09/26/2011 - 12:50 | 1711751 Cast Iron Skillet
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.

Mon, 09/26/2011 - 12:38 | 1711707 George the baby...
George the baby crusher's picture

Are you calling him a cow?

Mon, 09/26/2011 - 12:53 | 1711758 He_Who Carried ...
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 ---- ?

aUsTrIaNs, YOU MADE ME LAUGH vErY hArD ONCE MORE... :-D

Mon, 09/26/2011 - 12:02 | 1711494 AD70
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.

Mon, 09/26/2011 - 12:29 | 1711671 boiltherich
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. 

Mon, 09/26/2011 - 12:31 | 1711676 Cliff Claven Cheers
Cliff Claven Cheers's picture

From thin air.

Mon, 09/26/2011 - 12:06 | 1711522 PulauHantu29
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?

Mon, 09/26/2011 - 12:39 | 1711713 bigdumbnugly
bigdumbnugly's picture

KLINK!!!!!

getten zee assenheimer in heir mach schnell!

Mon, 09/26/2011 - 12:43 | 1711735 Hedgetard55
Hedgetard55's picture

You used German when you should have used Austrian.

Mon, 09/26/2011 - 12:46 | 1711745 Shvanztanz
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. 

Mon, 09/26/2011 - 13:10 | 1711766 Shvanztanz
Shvanztanz's picture

 

 

 

Mon, 09/26/2011 - 13:20 | 1711823 Shvanztanz
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. 

 

Schwanz-tanz.


 

Mon, 09/26/2011 - 13:23 | 1711869 jdelano
jdelano's picture

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

Mon, 09/26/2011 - 13:37 | 1711918 Shvanztanz
Shvanztanz's picture

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

Mon, 09/26/2011 - 15:24 | 1712451 gmrpeabody
gmrpeabody's picture

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

Mon, 09/26/2011 - 15:49 | 1712610 Shvanztanz
Shvanztanz's picture

how did I miss that?

(smacks forehead)

here it us, 

 

"Uber-benden mussen Sie Alle!" 

Mon, 09/26/2011 - 15:12 | 1712402 covert
covert's picture

hyperinflation is the fiat way.

http://expose2.wordpress.com

 

Mon, 09/26/2011 - 11:38 | 1711363 luna75
luna75's picture

Oro mis amigos!

Mon, 09/26/2011 - 11:40 | 1711364 The Fonz...befo...
The Fonz...before shark jump's picture

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

Mon, 09/26/2011 - 11:40 | 1711365 gratefultraveller
gratefultraveller's picture

Tyler, you're da man

Mon, 09/26/2011 - 11:41 | 1711370 mayhem_korner
mayhem_korner's picture

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

Mon, 09/26/2011 - 11:46 | 1711399 cynicalskeptic
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

Mon, 09/26/2011 - 11:55 | 1711446 buzzsaw99
buzzsaw99's picture

you forgot the washed out bridge

Mon, 09/26/2011 - 12:25 | 1711655 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

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

Mon, 09/26/2011 - 11:42 | 1711372 kurzdump
kurzdump's picture

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

Mon, 09/26/2011 - 12:54 | 1711765 NoClueSneaker
NoClueSneaker's picture

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

Mon, 09/26/2011 - 11:42 | 1711373 kito
kito's picture

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

Mon, 09/26/2011 - 11:43 | 1711380 Yamaha
Yamaha's picture

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

Mon, 09/26/2011 - 13:10 | 1711831 Catequil
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)

 

Mon, 09/26/2011 - 11:43 | 1711381 SheepDog-One
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.

Mon, 09/26/2011 - 11:44 | 1711393 kito
kito's picture

sounds like deeeeeeeeee-flation to me sheepie

Mon, 09/26/2011 - 11:47 | 1711405 SheepDog-One
SheepDog-One's picture

'Deflation', similar to the Hindenberg.

Mon, 09/26/2011 - 11:58 | 1711465 I did it by Occident
I did it by Occident's picture

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

Mon, 09/26/2011 - 12:11 | 1711573 fyrebird
fyrebird's picture

Well everything burns. Of course.

Mon, 09/26/2011 - 12:35 | 1711696 Gene Parmesan
Gene Parmesan's picture

Immoflation

Mon, 09/26/2011 - 11:50 | 1711418 JailBank
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.

Mon, 09/26/2011 - 11:59 | 1711478 fyrebird
fyrebird's picture

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

Mon, 09/26/2011 - 12:11 | 1711572 I did it by Occident
I did it by Occident's picture

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

Mon, 09/26/2011 - 14:03 | 1712038 Steel_Preacher
Steel_Preacher's picture

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

Mon, 09/26/2011 - 15:56 | 1712633 dxj
dxj's picture

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

Mon, 09/26/2011 - 11:50 | 1711419 JailBank
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.

Mon, 09/26/2011 - 11:57 | 1711464 Ahmeexnal
Ahmeexnal's picture

You will never get your money back.

But rest assured you will at least have the gratifying experience of taking many...MANY turns at the bat while the banksters/politicians and their families are foisted like pin~atas for the masses to beat to a pulp.

Mon, 09/26/2011 - 12:32 | 1711680 kito
kito's picture

hey ahmeexnal, re: ecuador-- it is no secret that correa despises the dollar. but he is an economist first, and has not tried to replace it, knowing it has brought stability to ecuador. that being said, there have been rumors floating around for quite some time that he has the mechanism in place should he be required to re-introduce the sucre.

as far as salinas, it has seen some booming construction for quite a while. a hot coastal area these days is bahia de caraquez--very good for surfing.  my only concern about the coast is security. over the past several years, crime in ecuador has been on the upswing, much of it as a result of colombia cleaning up and the roaches moving across the border. the coastal areas tend to have a higher concentration of it than the andean region. correa is taking meaningful steps to reduce it though.

Mon, 09/26/2011 - 12:41 | 1711721 Ahmeexnal
Ahmeexnal's picture

Thanks for the info. My guess is even if there's not a fast enough sucre backup plan, people would continue to trade with colombian/venezuelan/uruguayan currency.

Another question, do you know how hard is it for foreigners to buy real estate in Ecuador? I've searched and I get many links about how easy and great it is to buy real estate there compared to other South American countries. But if I change the name of the country on the search, I get similar results.

Mon, 09/26/2011 - 13:02 | 1711794 kito
kito's picture

no, its not hard, especially if you are a cash buyer. that being said, things generally move at a snails pace in most of latin america, so you can expect alot of "manana" (which literally means tomorrow, but really means next week or next month.....). if you are looking at the coast, i would definitely say bahia is the way to go now. its really flourishing, and its got a great vibe. and remember, there is the ecuadorian price, and the gringo price, so dont accept what price you see as reality depending on the medium that advertises.

Mon, 09/26/2011 - 11:43 | 1711386 Kina
Kina's picture

 The EFSF buys bonds from Bankrupt states ...

 

Thye don't know what bankrupt means??

 


Mon, 09/26/2011 - 12:06 | 1711521 fyrebird
fyrebird's picture

Niether do you.

"Bankrupt" has linguistic and cultural roots traced back to 8th century BC Sumeria, where the invading Hittites introduced the idea that when your neighbor owes you money you forgive the debt and marry his sisters. The Sumerians called it Ban k'Ruupeen which loosely translates as "Marry the bastard's sisters, he's a lousy Hittite and ain't gonna pay anyway at least you'll get some tail."

Just kidding. You're right, they don't know jack about bankruptcy.

Mon, 09/26/2011 - 11:44 | 1711394 Bokkenrijder
Bokkenrijder's picture

Hyperinflation? Don't let Karl Denninger hear it, he'll instantly ban you!

Mon, 09/26/2011 - 11:54 | 1711438 Joe Sixpack
Joe Sixpack's picture

I imagine he is having a field day with gold/silver right now (though he is smart, and probably giving it a few more days).

Mon, 09/26/2011 - 12:04 | 1711507 Snidley Whipsnae
Snidley Whipsnae's picture

Bokkenrijder... Here is an interesting HYPOTHESIS from G Lira regarding hyper inflation and how it might happen... Interesting read...

http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html

 

Mon, 09/26/2011 - 11:46 | 1711397 TruthInSunshine
TruthInSunshine's picture

Don't worry.

Merkel & Sarkozy are meeting again, it is rumored, to do/say/imply/stare-at something, it is rumored.

09-26 11:17: Market talk of a joint statement from Merkel and Sarkozy at 1700BST - Unconfirmed

Market talk of a joint statement from Merkel and Sarkozy at 1700BST - Unconfirmed MARKET COMMENTARY

‘Market talk’ – Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.

Mon, 09/26/2011 - 11:55 | 1711445 Dick Darlington
Dick Darlington's picture

That and the bad data seemed good enogh for the equity momos to pump S&P 20 points up. Also the undemocratic nature of Merkozy secret joint meeting has so rotten smell on it that it must be worth at least 5 points more.

Mon, 09/26/2011 - 12:09 | 1711551 fyrebird
fyrebird's picture

Okay then, I'll start a rumor that Merkozy are having a torrid extramarital affair and are using the global financial crisis as a cover for their midnight flings at expensive hotels on the public dime.

You read it here first.

 

Mon, 09/26/2011 - 11:45 | 1711400 KlausK
KlausK's picture

The austrians have always been good for Germany. Well, almost always ...

Mon, 09/26/2011 - 12:25 | 1711649 Hearst
Hearst's picture

While I was in Austria three summers ago I kept asking everyone who was working there how they are enjoying the euro.  Everybody without exception - waiters, cab drivers, everybody hated converting to the Euro because it made all their costs more expensive.  All were in favor of getting out of the EU and getting the Turks out of Austria.  But that was another issue.. 

Mon, 09/26/2011 - 13:14 | 1711842 I did it by Occident
I did it by Occident's picture

And here I had thought they kicked the Turks out back in 1683.

 

Mon, 09/26/2011 - 11:49 | 1711411 SheepDog-One
SheepDog-One's picture

Im pretty sure the FED now just pumps stocks to make us pissed off here at Zerohedge. 

Mon, 09/26/2011 - 12:13 | 1711586 fyrebird
fyrebird's picture

That would represent about as sound a monetary policy as anything else they've tried so far.

Mon, 09/26/2011 - 11:49 | 1711412 fdisk
fdisk's picture

World-wide QE3, 440 billion euros
endowed rescue EFSF is a joke, they need at least couple TRILLION.

Mon, 09/26/2011 - 11:50 | 1711424 I did it by Occident
I did it by Occident's picture

Yes, that's just the tip on the bill.  Not even the main course.

Mon, 09/26/2011 - 12:04 | 1711485 TruthInSunshine
TruthInSunshine's picture

There was a report on NPR's MarketWatch this morning (yes, it's public radio, yes it's a scam, and yes, MarketWatch is nearly as bad as CNBS with the sell sider propaganda. Don't ask why I was listening to it; it wasn't by choice) that the EFSF will be funded with a minimum of 2 trillion EUR, though details on who will contribute what amounts were non-existent (big surprise).

In any event, given that Merkel is being pummeled in the court of German Public Opinion, and that Sarkozy's party just suffered massive losses in French elections (much as Merkel's party recently did), and given that Germany and possibly two other far smaller Euro States are solvent, while PIIGS+UK+France are all as technically as insolvent as Greece (since none of these nations will ever pay back their debts absent massive EUR printing and a TARP-like program to buy their bonds -  aka Suck It Up, Europeans who saved, have money, and acted responsibly - only to kick the can, and not restructure the fatal flaw in the EU), I'd imagine it would take multiples higher than 2 trillion EUR being printed and freely distributed to save the EU, if even temporarily.

The U.S. Treasury, aided by the Federal Reserve, injected 5.2 trillion USD to try and bail out banks and bad financial actors (on the backs of taxpayers), and even that isn't going to stop the full court depressionary economic press.

I'd imagine that if the European Sadists who apparently want to punish Germany and solvent EU Member States are serious about kicking the can far down the street, they'll need to scrape together 3.5 to 4 trillion EUR, for starters. That amount, as an opening bid at can kicking, will be enough to crush the EUR by a minimum of 35%, and then, there are the contagion affects of that to consider, as well as what happens when they have to inevitably print even more EUR to kick the can again (not to mention that such an amount will break living standards all over Europe, and especially rile up Germans as they see their savings literally drained in a matter of a year or so).

Mon, 09/26/2011 - 18:23 | 1713118 Real Estate Geek
Real Estate Geek's picture

You got a green just for that first sentence!

Mon, 09/26/2011 - 11:49 | 1711413 I did it by Occident
I did it by Occident's picture

Do we really want to give the Germans "mehr Feuerkraft"? 

Mon, 09/26/2011 - 11:55 | 1711442 swissaustrian
swissaustrian's picture

Blitzkrieg gegen Spekulaten

Mon, 09/26/2011 - 12:15 | 1711602 I did it by Occident
I did it by Occident's picture

Jah, die "bösen" Spekulanten bezahlen müssen!

Mon, 09/26/2011 - 12:43 | 1711732 magpie
magpie's picture

Lafo, hol die Heuschreckenklatsche raus ! (olden but golden)

Mon, 09/26/2011 - 13:26 | 1711879 I did it by Occident
I did it by Occident's picture

große Heuschrecken!

Mon, 09/26/2011 - 13:34 | 1711908 wandstrasse
wandstrasse's picture

wasnt it muentefering who coined the lovely locust comparison?

Mon, 09/26/2011 - 11:51 | 1711425 Moneyswirth
Moneyswirth's picture

Reuters:  

There is a growing acceptance" that Greek default "is inevitable...Greece cannot pay its debt" 


Mon, 09/26/2011 - 12:22 | 1711643 Gandalf6900
Gandalf6900's picture

who cares if greece can't pay its debt...bankers bonuses can cover that, the REAL problem is that ITALY has absolutely no way of paying it

Mon, 09/26/2011 - 13:29 | 1711891 I did it by Occident
I did it by Occident's picture

...and Spain, Portugal, and throw in France for good measure

Mon, 09/26/2011 - 11:54 | 1711437 swissaustrian
swissaustrian's picture

Pan European Weimar, bitchez!

Mon, 09/26/2011 - 11:56 | 1711439 falak pema
falak pema's picture

the austrians make a brand of cake called sachertorte. Anybody who makes true  sachertorte does not cheat on chocolate, jam (marmalade) and butter content. I have a feeling that EFSF is not sachertorte. So its normal that the Austrians bitch about hyper...you don't get good value for money with this margarine and spartam cook.

Mon, 09/26/2011 - 12:42 | 1711729 magpie
magpie's picture

painted cardboard and wax icing

Mon, 09/26/2011 - 13:31 | 1711897 I did it by Occident
I did it by Occident's picture

Potemkin Sachertorte for Everyone!!!

Mon, 09/26/2011 - 11:54 | 1711441 BandGap
BandGap's picture

That descriptor is so good along so many fronts, not least of which is "look out below!".

Mon, 09/26/2011 - 11:56 | 1711454 fyrebird
fyrebird's picture

financial piece of art

I'm pretty sure that was a mis-translate. At least, into American english.

Mon, 09/26/2011 - 12:04 | 1711506 KlausK
KlausK's picture

Your feeling does not mislead you.

The right translation is "sleight of hand".

Mon, 09/26/2011 - 12:07 | 1711531 I did it by Occident
I did it by Occident's picture

better translation would be "financial trick."

Mon, 09/26/2011 - 13:04 | 1711797 fyrebird
fyrebird's picture

orly. I thought it was going to be financial piece of shit.

Glad you guys cleared that up.

Though it does reduce somewhat my respect for their journalists. I was all fyred up thinking those guys really say it like it is.

Mon, 09/26/2011 - 15:19 | 1712427 TJ00
TJ00's picture

Financial forgery perhaps?

Mon, 09/26/2011 - 12:03 | 1711500 bbq on whitehou...
bbq on whitehouse lawn's picture

Step one: dig hole.

Step two: toss money in hole.

Step three: profit.

 

Mon, 09/26/2011 - 12:10 | 1711554 pods
pods's picture

I am disappointed. I scanned that whole article and did not see:

Die Kacke ist am Dampfen.

pods 

Mon, 09/26/2011 - 13:06 | 1711817 fyrebird
fyrebird's picture

That was going to be the title.

Managing editors have no shame.

Mon, 09/26/2011 - 12:10 | 1711557 blueRidgeBoy
blueRidgeBoy's picture

<--- allow me to translate

Mon, 09/26/2011 - 12:17 | 1711614 anyways
anyways's picture

In Germany the 'Media', especially the TV, is nothing else than Propaganda: Nazi Goebbels at his finest. In Austria a few free Media try to hold the flag of free press and journalism. Though, it is too late.

Mon, 09/26/2011 - 14:12 | 1712096 Treason Season
Treason Season's picture

DW has this Euro sychophant named Meade, looks like one of Rumpoy's bumbuddies. The day the French voted against the EU constitution this EU buttboy was apoplectic, so revolting it was good kind of thing.

Mon, 09/26/2011 - 12:30 | 1711673 Cone of Uncertainty
Cone of Uncertainty's picture

Might as well be in a foreign language because god knows noboby here in the states grasps any of this shit.

Mon, 09/26/2011 - 12:34 | 1711692 gaoptimize
gaoptimize's picture

Just in time for Oktoberfest.  For this kind of bumpy ride, I think I need lederhosen more than a hard hat.

Mon, 09/26/2011 - 13:36 | 1711914 optimator
optimator's picture

Don't go to the fest, that's where they get rid of the bad beer.  Order my name anywhere else!

Mon, 09/26/2011 - 12:41 | 1711723 soopy
soopy's picture

Das kann ja nicht gut für Business sein.

Mon, 09/26/2011 - 13:09 | 1711826 monopoly
monopoly's picture

Anyone trading this market has a death wish. I cannot imagine any other reason for trying to time it.

Mon, 09/26/2011 - 13:32 | 1711888 Mr_Wonderful
Mr_Wonderful's picture

Nowadays hyperinflation is about as elusive as earth-destroying comets and asteroids, man-eating aliens and supervolcanoes suddenly waking up from a 500 thousand-year sleep to devastate a continent.

Deflationary forces are extremely strong: Runaway technological advances a wave that will rise for decades to come, extreme productivity increases, incredible overcapacity and oversupply of everything and totally endless supply of dirt cheap labor in Asia.

Add that the labor market in the west is very depressed. Wages and purchasing power are stagnant at best. You simply can´t have any meaningful inflation without employment participation. Hike prices and you´ll soon run into demand failure and corresponding downward adjustment of prices.

 

Mon, 09/26/2011 - 13:29 | 1711893 Dr. Gonzo
Dr. Gonzo's picture

Da word "hyperinflation" translated to english talk means dat stuff gets crazy expensive to buy with da money you gots in yous pockets. I don't know what dem other words says.

Mon, 09/26/2011 - 13:56 | 1711997 Mr_Wonderful
Mr_Wonderful's picture

You have seen the myth of scarcity being propped up in the U.S. with QE1 and 2. This creates temporary speculative inflation in commodities and stocks and depresses the dollar but once the tap is turned off the bubbles collapse and the dollar rockets up importing deflation into the U.S. That´s how strong the deflationary forces I mentioned are.

Presently a good bout of deflation would be very good for the import-dependent U.S. economy. Collapsing energy prices would be very stimulating for economic activity as would falling prices of foodstuffs and raw materials. This would increase purchasing power and spending of consumers and take down costs of small businesses, both spurring hiring. Also bear in mind that deflation is in effect a hidden tax cut which benefits everyone.

Of course a steady dollar at 100 plus would mean DOW at 4000 but that´s a small price to pay for jobs and increased purchasing power.

 

 

Mon, 09/26/2011 - 14:01 | 1712022 crosey
crosey's picture

Two things bother me:

  • TPTB can project enormous power, very quickly.  How will we respond (with any meaningful strength) when private gold/silver ownership become illegal?
  • Do TPTB have a global end-game goal?  What is it?  Feudalism?

Or is this simply the biggest coordinated fuck-up in the history of history?  Okay, 3 things bother me.

Mon, 09/26/2011 - 14:09 | 1712074 Mr_Wonderful
Mr_Wonderful's picture

I don´t see how ownership of largely useless stuff like gold could be made illegal. They could as well try to outlaw rare stamps, paintings, weird artifacts and exotic tulips.

Mon, 09/26/2011 - 14:26 | 1712180 Mr_Wonderful
Mr_Wonderful's picture

The so called precious metals have traded as a hedge against a myth, hyperinflation and are by now facing record price of cash waiting to pick them and other overpriced stuff up at pennies on the dollar.

Silver seemed to get this message during the summer after illusions of grandeur earlier in the year. Since June it has traded like another industrial metal, check the three-month chart for platinum, they´re virtually identical.

Mon, 09/26/2011 - 15:06 | 1712382 Mr_Wonderful
Mr_Wonderful's picture

Mega does somehow sound more doomy than hyper but just barely.

Probably just a propaganda final exhaustive top about ready to give up the ghost.

Mon, 09/26/2011 - 14:58 | 1712350 VeritasEtAequitas
VeritasEtAequitas's picture

Love the line... "damit Mega-Inflation"!  Not just Hyperinflation bitchez!!!! , but Damit Mega-Inflation Bitchez!!!!!!!!!

Mon, 09/26/2011 - 15:20 | 1712433 pschwammerl
pschwammerl's picture

I dont buy this "germans will not put up with this" nonsense. Germans are not bleeding at the moment, not the least. Revolution happens only when they are really forced to pay for this shit, and then even with 10 years delay. So Germany has to be actually broke to allow any meaningful resistance here.

Mon, 09/26/2011 - 15:36 | 1712521 Mr_Wonderful
Mr_Wonderful's picture

RE: Industrial metals silver and platinum trading in lockstep for the last three months. That´s all well and good but still there is a question of price ratio between these metals. Platinum is very rare, I belive, probably 30 times rarer than gold. So, this is a problem. It costs maybe $5-10 per ounce to extract silver out of the ground and that may be inflated since there´s just so much of the stuff.

Being very generous I would posit that the platinum/silver ratio should be something like 100-1 in a real marketplace of price discovery driven by unmanipulated forces of supply and demand from the economy.

Mon, 09/26/2011 - 16:04 | 1712675 PulauHantu29
PulauHantu29's picture

Dollar Devalued 50% will be the Headlines one morning when wake up.

Larry Summers said the dollar needs to be much weaker so we can stimulate exports and get out of this recession.

He may be right after all.

Mon, 09/26/2011 - 16:54 | 1712908 Mr_Wonderful
Mr_Wonderful's picture

You have heard this spin from Wall Street and doomsayers a lot resulting in massive hoarding of cash waiting for falling prices.

Exports? Gimme a break. Did you visit a store today? Where did what you bought come from? Did you drive a car? Would falling import prices from a rising dollar hurt you?

A rising dollar is bad for U.S. multinationals since it results in fewer dollars to book back home as revenue and profits thus leading to lower stock prices. These multinationals dominate the archaic Dow Jones Industrial Average which then lead pretty much everything else. So you can see the agenda that drives this inflationary propaganda.

Mon, 09/26/2011 - 17:24 | 1712995 Mr_Wonderful
Mr_Wonderful's picture

But it gets worse. This inflationary mindset they have been peddling in the face of massive deflationary forces has allowed them to totally overissue the stock market. You can see those penny stocks everywhere. Major stock watering scams are still down 60-80% from dot com bubble high. About a third of the DOW needs to write off worthless stock via reverse splits right now.

Mon, 09/26/2011 - 19:08 | 1713210 Mr_Wonderful
Mr_Wonderful's picture

Reading these threads and as much of others as is within my capacity I´m somewhat belatedly moved to admit that the Federal Reserve and the powers that be and the illuminati and the aliens that control it all

are extremely oversold to say the least.

What if the FED is really trying to help the common man by maanipulating interest rates? Their newest twist clearly aims at lowering mortgage rates. They refrain from further capital injection to speculators blowing up impossible bubbles in economic input. Maybe they´ve seen the light. The economy desperately needs lower input costs. There are imbalances but it would be best to leave it to the marketplace to even those out. It will be painful for sure so you must concentrate on dissipating the pain of the many at the expense of the few. Poor vs. rich. That´s classic. Once the ratio of rich vs. poor reaches breaking point you have revolutions and mass executions. The only thing you the common man have in common with those masters of the universe is the urge of self-preservation. So it would be in both parts intersts to try to muddle through the present situation and avoid violent confrontation. It seems to me that the much maligned FED has been trying just that.

 

 

 

Tue, 11/01/2011 - 04:40 | 1831013 karmete
karmete's picture

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Thu, 08/02/2012 - 14:55 | 2673401 kall
kall's picture

We should try to build an independent business politics, independent from other states that are struggling with the financial crisis. I read some interesting information about that in one of Bradley Cohen's articles, I actually think that building this kind of independence is achievable.

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