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The Full "Three-Days-To-Eurocalypse" Soros Interview
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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If bankers were really in full control as you say, think we would see this anti-banking sentiment on the rise everywhere? Hell, there`s lots of ppl on CNBC even bitching about banks these days.
If they trully are in control they`re doing a shitty job at damage control and propaganda.
Regarding Soros... Keep in mind that most people on this board dislike him cos of what trolls like Glenn Beck used to spew on Fox neocon propaganda network. You and I may not agree with his line of thinking but he`s not the monster some propaganda networks try to paint him as.
Soros, Buffett are investors more politically connected to the Democratic party and have been bashed a lot by Republicans. Just a case of pot calling cattle black.
Soros comes from the London School of Economics and believes in keynsianism. I`d put the guy in same boat with Nouriel Roubini.
There`s too much collectivist shotgun bible wielding, alex jones burger flipping herd mentality here disguised as libertarianism.
"Keep in mind that most people on this board dislike him cos of what trolls like Glenn Beck used to spew on Fox neocon propaganda network. There`s too much collectivist shotgun bible wielding, alex jones burger flipping herd mentality here disguised as libertarianism," SAYS JUICYGRABS
Riiiiiight....
Troll elsewhere.
spoken like a true sheep
just for the record to address your subtle implied BS. I`m not Jewish, not that it would have made your comment even less idiotic if were so.
What part of the facts reported are wrong? "Follow the money", as they say.
F soros
but I have to say Bloomberg Europe is one of the last vestiges of decent financial reporting now that Tom Keene has gonge CNBC (figuratively speaking) with his new fluffstravaganza morning show
double F tom keene (cause he knows better)
for the low bandwidth crowd this is the best link
http://www.bloomberg.com/streams/video/LiveUK_nb.asxx
Forgotten how many complete morons troll this site. Thank goodness Tyler sees the benefit of reality vs. ideology sometimes.
Wow! This is historic!
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_25/06/2012_448919
The president of Greece will actually be doing something! This has to be a first...just hope the old ceremonial geezer doesn't have a heart attack from all the stress...
Soros sounds just like Greenspan. Who can base any decisions on what this double-talking globalist says? Why does his contradictory nonsense still make news?
Unbelievable, how this asshole Soros still sitting on his stolen money and accusing others for not giving him more free lunches. This bastard is long the PIIGS and want Germany to bail him and his criminal buddies out. Fuck off to hell, Soros.
Ah yes. One of our greatest social engineers at work. And a great humanitarian. I think George will benefit greatly no matter what happens. George is looking good for 81. He could easily go another 20-30 years with a careful organ harvesting and replacement program. Long enough to be emperor of New Europe? Go get'em George!! (raises glass)
What happened to good old default. When it is no longer in the interests of the Greek, or Spanish, or Italian people to suffer the debt, they should default. Clear the debt and live with the fact nobody will lend to them for a long time. That is the path out of debt servitude. What is the obsession with keeping these countries under the yoke of crushing debt.
Complete and utter bullshit.
First Soros says
It would lead to Germany being in permanent domination. It would become like a German empire, and the periphery would become permanently depressed areas.”
then that the Euro zone needs various rescue mechanisms
and Euro bonds are not possible because Germany would not consider euro bonds until you have a political union
but rescue measures are needed whatsoever but however This would be a temporary measure
Yeah sure.
The Germans are sure going to bailout everyone as long as it's called temporary.
What a shill.
just wasted five minutes of my life reading the comments.......
Now I know the meaning of reflexivity. It is knee jerk violent reaction of the Zerohedge crowd to any mention of George Soros, who apparently is the Devil Incarnate.
Some want to eviscerate the man for actions some believe he took as a terrified 13-year old under Nazi Occupation in WWII. Would that all of the commenters put their own teen years on display for all to see, which of course occurred under absolutely peaceful circumstances and where the sole threat to their well-being was excess hormones or too much self-diddling.
Soros has donated about $8 billion to various charitable endeavors, though many here seem to KNOW exactly how each dollar was spent and how Soros spent each of his days, and it‘s all bad. You know, they read about it on the internet, so he must be the Devil. Apparently trying to broaden internet access in the post-Soviet world, assist in the transition from communism to capitalism, providing assistance to the impoverished everywhere from Africa to war-torn Yugoslavia, funding scientific research, standing up for free speech and every accuser’s right to counsel, and other such things is not only bad, but it pales in comparison to all the great deeds the Zerohedge comment’s crowd has performed in this world.
Tyler, you are indeed a lucky man to have attracted such an accomplished and magnanimous assemblage of open-minded truth seekers and compassionate souls.
Mr. Soros, the following is intended for you -- it may be in first, second or third-person; but i think you'll understand what's meant and how it should be ingested -- most of all, most of it isn't directed at you, just so ya know.
let us begin...BENE!
a lil of the ole jack white the black --
http://www.youtube.com/watch?v=rtMFtiKg3kw
all the flys git it/
and the frogs git it/
and all dem big jungle cats gits it/
and i bet ya lil dog gits it/
and i want cha to git wid it/
yeah come on and git wid it/
yeah i want you to git wid it...
everything in the ocean blue...
so, why don't you?
http://www.youtube.com/watch?v=lCgicPdsxxg
i'm a rollin stone/
all alone and long/
for a life of sin/
i have paid the price/
when i pass by/
all the people say/
there goes another boy/
on the lost highway...
http://www.youtube.com/watch?v=YCbs1qxRz4Y&feature=related
no, really, i do LOVE my boston...but still -- the LIFE lingers in janus all deep-like.
ahhhh. mr. Soros... the following was formerly, and properly, named for an associate of mine...do you know his name?:
http://www.youtube.com/watch?v=cHUY5U5_mFM
i guess i need one more cig and one more song before i let-in...what will work all proper-like? a lil of the ole mick/richards? that'll do all satisfactoryish:
http://www.youtube.com/watch?v=OagFIQMs1tw
make that 2 & 2...
http://www.youtube.com/watch?v=np0solnL1XY
okay make that 3 & 3...just to even things out...
http://www.youtube.com/watch?v=w9TGj2jrJk8&feature=related
(#4)
chevron up.
lift thy light, minerva.
at a certain point, i noticed that Soros said, "...it is what all true-Germans want." he went on to elaborate. but, if you don't mind, i'll here stand in for the rather monotone Georgie-boy (much-respect...mind ya, Mr. Soros). all german neighbors will, in semi-stupified alcohol inebriated flow, let you know that german...the deutch tongue...is, as far as languages go, a VERY commanding voice. and so it is. and janus understands such things -- certain things, languages in this case (other similar tongues could be likewise clumped in the 'fatherly' lump -- English, Latin, Greek, Hebrew...etc), the german tongue, as it now stands, is a threat to our way of life. the chinese gimick was just such...the german threat is a real menace. learn it well, ZHealots. these people know how to play...and play they will. but, it is again CHECK, german-fuckers.
what does germany want? what they feel they are entitled to: the whole world. all of you, rising at 5 am and arriving back home a tad bit later. this will not do. this aggression will not stand, man.
http://www.youtube.com/watch?v=4jUkW5wY2M8
i'm talkin about drawin a line in the sand, man...
am i the only one around here who gives a shit about the rules?
no, i do mind,,,the dude minds.
that's marvelous...
yes, they think their way is bettah. let me tell y'all otherwise...it's like this:
janus does not hate all academics...no, no, no. nearly one third of them deserve to continue drawing breath; many of them are here in boston. the best...ah, janus is with you serious-minded academiticians/alchemists. like you, prof. fergeuson...the six killah apps originator. LOVED IT! but.
but you neglected a seventh pillar (re: te lawerence)...an aspect to fill-out the contours of your structure, an investing element that gives definition and form to the whole of it...sorta made it all come toghethah. you know, the tie that binds it all alike -- Western Civ, just in case you forgot. that thing that we make our lot: grafting it all in, what's best of all the world's got. we take and make it our own...it's how we get along.
we adapt, did ya hear me? we adapt like an always mutating super-man.
looky here in america, world. we've got the best that you expelled under the rubric of idiology...thank you, fools! now go back to driving off your very best; so that we may unleash them on you. DON'T FUCK WITH AMERICA. but america, it's time to pause. it's time to think.
back to Soros:
do you imbeciles realize what kind of breaktrhough 'reflexivity' is in thought? well, if you don't, you aught. it is a milestone and a thunderclap. i don't much like 'media matters' either. it's a bunch of cluckin hens flustered at their failures and flappin over a peckin-order that ain't nevah gonna happen.
for example: yes, the short-the-female-ceo trade is a semi-hush-hush open-secret. and, btw, BIG TIME short on xerox. HOLY SHIT! what a muthah fuckin gaper. just beware timing and whatnot. but, 100%...no doubt.
and another thing, feminists...the first army that puts females in the front lines of real combat will be the last army that puts females in front line combat. are you fuckin ding-bats serious? i thought you were playin the game before i moved up here; but now i realize you're in earnest...can you be so goddam daft? i will arm-wrassle any of ya...just look in my pitiless left eye. but beware, your lost soul swims deep there within.
"my name is Legion..." and they went back and forth...then this was said, "and He cast the evil spirits into the swineherd."
and so they fled immediatly into the water, to suffocate themselves beneath the air around; down under the tide. and there they still abide...well, not so fast. the world is bristling with sprits like it hasn't in a couple millenia. ignore it at your peril. the swineherd now storm the earth...and they are ripe for the slaughter. sling-blade, bitchez.
anyway, on to happier things.
dreams are a funny thing. well, actually i wouldn't really know. i've spent too much time ponderin the dreams of others; really, aggregate dreams recorded in mind-shrinker's diaries. don't know much about my own, as i never seem to remember them. it's almost like i don't dream at all. i mean, for years and years and years i cannot remember having a single dream.
http://www.youtube.com/watch?v=pcvoFcJXsDQ
time out for fiona...lil sister, janus WILL someday fuck you six-ways from sunday. recognize.
http://www.youtube.com/watch?v=FFOzayDpWoI
i've done wrong/
& i wanna suffer for my sins...
what i need is a good defense/
He's all i evah knew of a love/
heaven help me for the way i am/
save me from these evil deeds before i git them done/\
i just don't know where i should begin/
...i keep livin this day like the next will nevah come/
i need to be redeemed...,
you-know-who
the dream we are now discussin is not one of my own...it was delivered to me; and at a young age, mind you. i was thirteen...1989, and early in it. i was a freshman. just fairly feelin around inside myself, not at all braced for what was about to transpire. it was an early hour; right before home-room and all. before anything was a stirrin...early in the mornin...like i said. so my homeroom/english teaher -- her name was henderson or something likewise or such-n-such -- she corners me when i was just rappin with my bros.
"janus, i had a dream about you..."
now, pay attention. this really happened. and it shook young janus. and, at this point, it was obvious that my young teacher was more-than-slightly astir. she was spooked.
"you were in front of this huge crowd..."
at this point she looked at me and my friends and, though she knew she was issuing something most entirely odd, she regained resolve...and did thus continue...
"and all the people were just magnatized...transfixed and swaying...it was like it was real-life."
at this point she caught herself...understood that she was totally out of place and whatnot. i will confess: though i was flattered, it was a bit disproportionate. my friends and i giggled...i never brought it up again. but, i'll bet anything if you asked her, she'd recall it all vivid-like. seemed to quake her foundations.
the rest of homeroom roll-call was strained...that's a fair way of putting it. so, that's one of the things that guide one eerily through youth. the rest is a narrative yet to be told.
apart from the doctrine of reflexivity, Soros has yeilded something else special: open socieites. there is no greater gift man can give himself than the option to get up and move where he pleases. the freedom of movement and the liberty therewithin is, and should be, our paramount concern. there is no more nettlesome dillema than the absense of an acceptable escape....God Bless Freedom of Movement. God Bless Freedom of Action wheresoever he goes.
please, haters, find some fault in the cause above. to be able to move where you like and live how you please? please! there is no greater liberty. and you call this man a demon?
"before your point out the speck in My EYE, remove the plank from your own."
http://www.youtube.com/watch?v=CaW4FciCdiQ
git behind me satan...
http://www.youtube.com/watch?v=Zi0zYDDz3Rk
i'm thinkin about my doorbell/
...all my friends are above me
http://www.youtube.com/watch?v=IlcMRq3gb1s&feature=related
your children belong to janus, america. i know what they need to hear. they step to my beat.
before i end, readers...know this well: you are, and have been, tastin from the tree of the knowledge of good and evil. beware all ye who go forward -- it will awe ya, and it will take ya. that's the nature of the arrangement. but you are most certainly invited.
take my hand.
http://www.youtube.com/watch?v=jeYyoU8kKPQ&feature=related
no mattah which way you go/
no mattah which way you stay,
janus
(the markets must fall, one and all...bear-season is upon us. correlation? yup! causation? yup! conflagation? yup! let's a git back to real-deal valuation...you know, where a dollah buys what it should. till we return to gold; let's let the honest man buy his bread and have a lil left over for beer, bitchez. don't fuck with the DXY. it's doin what it should. and, yes, germany, you must absolutely federalize -- the cost is far less than the wanton crime. und, angela, achtung, frauline! est heir janus a speakinseedin.)
Spoken like a true 1% er.
Never use your own money eh Georgie?
But keep that public-funds status-quo gig going huh?
And what would your cut be...?