The Full "Three-Days-To-Eurocalypse" Soros Interview

Tyler Durden's picture

In a no-holds-barred interview with Bloomberg TV's Francine Lacqua, the increasingly droopy-faced George Soros remains as sprite-minded as ever in his clarifying thoughts on Europe. His diagnosis is spot on: "Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt - they are Siamese twins, tied together and you have to tackle both" and summarizes the forthcoming Summit 'fiasco' as fatal if the fiscal disagreements are not resolved (and as of this afternoon, we know Germany's constant position on this). His solution, however, is unlikely to prove tenable in the short-term as he notes "Merkel has emerged as a strong leader", but "unfortunately, she has been leading Europe in the wrong direction". His extensive interview covers what Europe needs, the Bund bubble, GRexit, post-summit contagion, and Mario Monti's impotence.

 

 

Soros on Europe’s crisis:

“Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt - they are Siamese twins, tied together and you have to tackle both. It's recognized that you have to do that and there is no widespread agreement on what to do on the banking side. It's the beginning of a banking union and there is a disagreement on the fiscal side and unless that is resolved in the next 3 days then I am afraid that the summit could turn out to be a fiasco, and that could be fatal, because you are facing the possibility of Greece leaving the euro and perhaps the European Union and you need to strengthen the remaining euro structure to withstand that shock.”

 

On Angela Merkel:

“Well actually Angela Merkel has emerged as a strong leader. Unfortunately she has been leading Europe in the wrong direction. I think she is acting in good faith and that is what makes the whole situation so tragic and that is a big problem that we have in financial markets generally - that you could have a false idea, a false ideology, a false interpretation which is reinforced by reality. In other words it works for a while until it stops working and that is what is called a financial bubble - which, you know, looks very good while it is being formed and everyone believes in it and then it turns out to be unsustainable…The European Union could turn out to have been a bubble of this kind unless we realize there is this problem and we solve it and the solution is there. I think everybody can see it, all we need to do is act on it, and put on a united front, and I think that if the rest of  Europe is united, I think that Germany will actually recognize it and adjust to it.”

On whether yields there’s a risk of contagion continuing if a strong proposal doesn’t come out of the EU summit:

“That is right, and there is then a serious threat of the euro breaking down and that is not to be neglected because it's quite serious. But even if you manage to avoid, let's say an 'accident' similar to what you had in 2008 with the bankruptcy of Lehman Brothers, the euro system that would emerge would actually perpetuate the divergence between creditors and debtors and would create a Europe which is very different from the Europe as an open society that fired people's imaginations and led to the creation of the European Union. It would transform it into a hierarchical system where the division between creditors and debtors would become permanent…It would lead to Germany being in permanent domination. It would become like a German empire, and the periphery would become permanently depressed areas.”

On what Europe needs:

What you need is a European fiscal authority that will be composed of the finance ministers but would be in charge of the various rescue mechanisms, the European Stability Mechanism, and the one that preceded it and it would be empowered to issue treasury bills, to set up a debt reduction fund and actually buy up the excess stock of that that has accumulated in the hands of particularly Italy and Spain and finally combine issuing treasury bills. Those treasury bills would yield 1% or less and that would be the relief that those countries need in order to finance their debt.”

 

Euro bonds are not possible because Germany would not consider euro bonds until you have a political union, and I think it's actually quite justified, it should come at the end of the process not at the beginning. This would be a temporary measure, limited both in time and in size, and thereby it could be authorized according to the German constitution as long as the Bundestag approves it, so it could be legal under the German constitution and under the existing treaties. What it means is the political will by Germany to put it into effect and that would create a level playing field so that Italy and Spain could actually refinance its debt on reasonable terms.”

On whether he believes Germany would be content with a smaller euro zone:

“I think Greece leaving the euro zone or being pushed out is now a real expectation and this is what is necessary to strengthen the rest of the euro zone because the way the financial markets work they can actually push a country like Italy into default - see this is what the weakness of the euro as it is currently structured because a developed country has no reason to default because it can always print money. By printing money it can devalue the currency and people can lose money by buying debt but there is no danger of default, but the fact that the individual members don't now control the right to print money - they have given that right over to the central bank you see, and that has created this situation with a European country that could actually default and that is the risk that the financial markets price into the market and that is why say ten-year bonds yield 6% whereas British 10-year bonds yield only 1.25%. That difference is due to the fact that these countries have abandoned the, surrendered their right to print their own money and they can be pushed into default by speculation in the financial markets.”

On the chances today of Greece leaving the euro:

“It's very hard to see how Greece can actually meet the conditions that have been set for Greece, and I think the Germans are determined not to modify those conditions seriously so I think one has to now calculate on Greece being forced out of the euro - that's what we have to prepare for.”

On how the treasury bill would be priced:

“It would be sold on a competitive basis but right now there are something like over 700 billion euros are kept on deposit at the European Central Bank earning a quarter of one percent because the interbank market has broken down so then right then you have got 700 billion that would be very happy to earn let's say three-quarters of a percent instead of one-quarter, and the treasury bills by being truly riskless and guaranteed by the entire community would yield current conditions less than one percent.”

On whether he believes Greece will exit the euro forever:

“No, actually it's quite possible that it could actually, depending on how it is arranged and whether it's orderly or disorderly, it's possible that Greece could re-enter but what I am really afraid of and really most disturbed about is that the euro would hold together but it would create a Europe that actually nobody wanted. It would put Germany at the center of an empire which would actually be very beneficial in many ways to Germany but politically I think it would be unacceptable and it's not something that the majority of Germans want.”

On whether German bunds are in a bubble:

“Yes…Certainly they have benefited and they are far too low-yielding if you had no world conditions, in other words the high price or low yield of the German bonds is a fever chart measuring the distress in the financial markets.”

On the chances of Spain, then Italy, needing a full-blown bailout:

“If you have this thing, then the Spanish banks would be recapitalized which would add to the debt of the Spanish debt, but if the Spanish, the excess debt is financed at 1% then it's no problem then this will help that also and if you resume growth then the decline in the housing market would not be as severe as it would be if you have a folding economy so Spain would be also in a position to come out of the recession.”

On Mario Monti:

“Monti is a caretaker, he is a technocrat so he has no political base but I think that he would have to say that he cannot serve as a technocrat if there is no support from Germany and what would Europe do without Monti, so Monti can push Merkel but and this is in a strong position to do that because he has done his best in structural reforms and he could do more if actually this was something that didn't come out in the discussion, that, Germany is worried that if you provide this kind of support then countries like Italy would stop pursuing structural reforms and that is not the case because by having a great benefit from it and losing the benefit if you abandon the structural reforms is I think a stronger guarantee that they will not abandon it than anything else.”

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Mongo's picture

Is he talking about the United States of Goldman Sachs? (Europe)

battle axe's picture

Fucking Soros! What George, you found time from beating the shit out of one of your girlfriends to give an interview? Fuck George Soros, how much do you want to bet that this guy is talking up his book? I will take all bets. 

Ahmeexnal's picture

During the course of the interview, Soros clearly failed the Voigt-Kampff test several times.

Rahm's picture

Soros.  Die.

You want it funded?  Fork over a few billion into the pot to start, you fucking hypocrit!

Buckaroo Banzai's picture

They don't call Soros "The Black Hand" for nothing.

Pay no attention to what he says, pay attention to what he does.

DoChenRollingBearing's picture

Even simpler:

Take money out of the banks and buy some gold with it.

You do not have to be All Inn re gold.  Only 1% - 3% of Americans own non-jewelry gold.  Even a little will go a long way.

Michael's picture

Complete and total worldwide economic collapse will benefit all free people all over the world if done right.

It's imperative to make the elites, oligarchs, aristocrats, and banksters choke themselves to death on the massive world debt they created.

Paul Atreides's picture

I would prefer to see them hang from the gallows.

LowProfile's picture

Boys, boys, don't fight...

We can easily accommodate you both, as long as Paul agrees to go second.

Popo's picture

Note that unlike other Bloomberg interviews which are conducted on a first-name basis, he is "Mister Soros".    Why not just call him "Your lordship"?

I'm sorry.  Who the fuck is George Soros really?  You're a fucking pigman, "George".  Fuck you, "George".   When they start marching people to the guillotine I hope they take you and your Open Society trash to the blade first.

 

TruthInSunshine's picture

Soros, one of the lieutenants of TPTB, putting himself out there and highly visible to add to the illusion of credibility to what they're selling as a "Hank Paulson Tanks in the Streets & Martial Law" v2.0 moment.

Soros is keeping his pimp hand strong, reminiscing of his glory days of taking down the pound sterling. He's no Mayer Amschel, but he is still a playa'.

Never let a good crisis go to waste, by not magnifying the actual risks by a factor of at least 100x, so as to bring about an even more rigged, criminally operated, racketeering mechanism, that creates panic and uses fear to subjucate the actual producers of wealth, and add yet another intraveneous needle into their veins by which more of their blood can be stolen and given to the CronyCapitalists (i.e. non-capitalistic, best friends forever of the New York Branch of the Federal Reserve & Bank of England).

So, an asteroid 9,000 miles in circumferance will hit the earth in 3 days if the bad debts of the PIIGS  aren't made whole by sucking a good chunk of the savings (present savings and what would have been many decades of future savings) of the citizens of Germany and a few other northern european nations, so that New York and London based TBTF banking and financial institutions holding the toxic debt of the PIIGS can be bailed out and made whole (does Europe have someone similar to Bernanke or Geithner who will insist that the banks not only not take haircuts, but get compensated at a rate of 175% on their PIIGS portfolio?), yet again...and again....and again.

Never mind curing the disease or even treating the disease that brought the failure that is the Eurozone to this place in the first place. Just 'paper over' the losses, and then do it again...and again........and again......

macholatte's picture

 

........so as to bring about an even more rigged, criminally operated, racketeering mechanism, that creates panic and uses fear to subjucate the actual producers of wealth, and add yet another intraveneous needle into their veins by which more of their blood can be stolen and given to the CronyCapitalists.......

 

The PIGGS did exactly what should have been expected; they gave up the right to print money in exchange for becoming welfare recipients. The tit is running out of milk so the parasite is whining and the mother is supposed to feel guilty for not providing more milk but Germany is putting on a good show.

 

They gave up the right to print but not their sovereignty which is the hole in the EU universe.  That will be changed so that the Euro can become the new reserve currency and fuck over the USA big time.

Soros discusses the issue of sovereignty in one of his books. He certainly knew this day would come. That means others knew as well. There are no accidents.

 

Lore's picture

 

Never mind curing the disease or even treating the disease that brought the failure that is the Eurozone to this place in the first place. Just 'paper over' the losses, and then do it again...and again........and again......

Well said.

This man is clever, but his priorities are upside down. He is concerned more with banks than with human beings. Where is the conscience? 

"Political union" has been the dream of control freaks for longer than any of us has been alive. They fabricate slick narratives to justify the psychopathic rationalization that "The greatest threat to humanity is humanity itself." BUNK! The greatest threat is these self-ascribed "elites" whose parasitic constructs, intended to compensate for their own unbalanced psyches, bring us to ruin AGAIN AND AGAIN AND AGAIN.  

FOR THEIR OWN SAKE, LET'S HOPE THAT NATIONS STAND UP.

Carl Spackler's picture

Only in the end, the vanguard of crony-capitalism and puppeteer of unsuspecting socialists has opened his mouth.

 - YAWN -

A day late and a dollar short...Eurocalypse now.

 

Karl von Bahnhof's picture

Plastic surgery junkie. Hey George ! Watch your nose!

 

You SOB

OttoMBMP's picture

I think he doesn't act in good faith. That is not tragic. But he should pay for it.
We will invite him to Nürnberg II.
The day of reckoning will come, also for good old George.

Carl Spackler's picture

Jawohl zu Nürnberg II.

Sollen wir Draghi und Trichet einladen? 

piliage's picture

I was about to ask if that was really Soros or jocelyn wildenstein

Milton Freewater's picture

Right then, what's you plan?

 

Bloodstock's picture

Or we could send them a pic of me neked as a jay bird. Possibly they would puke and choke on their own vomit.

Bloodstock's picture

Or we could send them a pic of me neked as a jay bird. Possibly they would puke and choke on their own vomit.

Kitler's picture

The "Dark Pools of Soros" are probably making a killing right now.

He just doesn't want the game to end yet. And it takes a long time to safely move all the physical Au he owns.

Kitler's picture

Looks like you've been feeding yourself so well that your infinite mass has turned you in black hole, although it is a rather rectangular one at that! ;)

who-is-john-galt's picture

I think you misspelled Satan

AbelCatalyst's picture

When Soros said, "...Merkel has emerged as a strong leader. Unfortunately [he] she has been leading Europe in the wrong direction." he actaully called Merkel a "he."  I laughed out loud when I heard it!!  

El Oregonian's picture

Guys like Soros are rotting in hell. This POS deserves a kick in the nuts just for enjoying his part in sending people to concentration camps in Hungary.

Tirpitz's picture

Maybe he believed in free housing of his chosen ones even then?

Iwanttoknow's picture

Tirptitz,

The actual chosen ones are luciferan and sabbatean,not regular jewish people.Read Israel Shahak to see how luciferans have exploited rank and file jewish people.

Clashfan's picture

+1

and everyone else, too

CPL's picture

George the tortoise is lying on it's back.

What's a tortoise?

Ever heard of a turtle?

Yes.

Same thing...

Paul Atreides's picture

Rewatched the directors cut last week, for some reason I never caught the importance of the quote at the end of the rooftop scene until now:

Quite an experience to live in fear, isn't it? That's what it is to be a slave.

CPL's picture

Phillip K Dick, only Sci Fci author that not only wrote about the future in the 50's half out of his mind on pharma grade speed and mesculine while in bus stations on a portable typewriter.

Weirdly, he's been correct more often than not. 

ZeroAvatar's picture

Die, Soros, you fucking fuck!  Die!  Die, already!  (Uglier than Hitlary, too!)

 

Edit:  The above outburst was designed to alleviate internal stress brought about by too much Apocalyptic forward-thinking. It was in no way meant as a threat to any individual nor an incitement to physical harm.  I feel better now, and will return to my schedule of meds.  Side effects include chancroids, ulcers, dry-mouth, burning sensation of the eyeballs, diarrhea, and micro-vomiting.

janus's picture

PRAISE GEORGE SOROS!

janus will tell you why after he's listened to and digested the Great Man's words.  such fucking fools!  have you no goddam respect?  who the fuck are you, wittle bitchez?  let it be known that George Soros is an amazing thinker...he may not always be right, but he's most certainly great.  and you are small.  reason being?  you will not take in all.  you myopic little ants...think you're fit to weigh wrong and right?  do you know how petty and petulent you'd bee if God blundered and made you a 'wonder'...stupid mutha fuckahs -- you'd redefine evil; you'd make yourselves a cautionay tale.  

how many of you actually watched the interview?

stupid lil folk.

i'm reminded of a quote:

"little folk become their little fate." HORACE -- and, again, who da fuck are you?

janus does not necessarily agree with the words he's about to hear from Soros; but you bet your bottom dollah he's a gonna prick up his ears...cause it mattters, and you don't.

janus matters.  

there's a reason why...wanna know?  open your minds and your societies.  it's a big big big world; don't be so insufferably small.

http://www.youtube.com/watch?v=taf8fYP9Y-A

&

http://www.youtube.com/watch?v=O7XywuICl64

 

creature come creature, creature/

my own double-feature/

as i'm warmin the bleachers at home,

janus

 

Nussi34's picture

He is a jew. What do you expect?

duo's picture

substitute the D.C-NYC corridor for Germany and the rest of the US as the "periphery" (debt slaves) and you have some sort of analogy.  The difference being that Germany creates wealth with industry and exports, whereas our economy believes "banking" creates wealth.

tiger's picture

Soros playschool: "They can't default They can always print money" (with a lil' help of my goldman sachs buddies) 

Hmmm physical <commodity> is hard to print. Watch your back soros people have the rope ready

Chuck Walla's picture

Always the signal that Georgi has his positions in order. Time to start pushing the buttons to reap the rewards.  This must be phase 4, he's bought his postions and politicians and others. He's placed the mechanism of instability in place. The Carl Icahn of the world economy is ready to ready to reap and rape on the ultimate green mail.

 

Komrade Georgi learned much at the knees of his Gestapo masters.

 

Oh, and if Merkel is leading in the "wrong" direction, she must be doing the right things for the world, not sociopathic old buggers with Dr. Evil designs he actually intends to implement.

Jason T's picture

wide screen and everything.. getting the popcorn!

chiswickcat's picture

popcorn! ha ha ha... love this site!

Jason T's picture

I was just kidding, no popcorn.. i couldn't get passed 5 minutes of this guy.  Quickly read the summery instead.

THECOMINGDEPRESSION's picture

He wants OBAMA to win and owns the voting making machine company in Spain. There is something wrong here and I can't put my lying finger on it.

El Oregonian's picture

All you have to do is put your finger on the trigger when the time comes to defend your home and property, friends and family.

Panafrican Funktron Robot's picture

I'm actually pretty sure he doesn't give a rat's ass who wins.  To him and his ilk, Obama vs. Romney is like fucking awesome chocolate ice cream vs. fucking awesome butter pecan ice cream.  Either way, fucking awesome ice cream is in his future, and we're the dumbfucks behind the counter serving it to him for free, fighting over the crumbles and drippings left over.  

stock trout's picture

Of course you know, this means war.

Caviar Emptor's picture

Problem? Too many IOUs. 

Solution? Fresh IOUs. 

Ben, you hearing this?? Attaboy!!

CommunityStandard's picture

No, no, no.  You have to replace the existing IOUs with new IOUs backed by other IOUs.