Germany Pulls The Punchbowl As Usual

Tyler Durden's picture


If yesterday was a repeat of the market action from that day three weeks ago before the last FinMin conference, when everyone expected Germany to announce it had agreed to a bank deposit guarantee, then today is, logically, day after. Because just like back then, so now, Germany has once again made it clear that it will first see the EUR crushed, and all off Europe begging for a bailout (as in the case of Spain - when presented with reality, they all will beg the one with the cash to come to the rescue). To wit from the German Finance Minister, via Stern magazine:

  • Schaeuble Rejects European Redemption Fund: Stern Magazine
  • German finance minister says redemption fund would violate EU treaties, in interview with Stern magazine

So contrary to the ridiculous hopes floated yesterday, and the even more ridiculous market levitation in response, there will be no banking union, no deposit guarantee, and no redemption fund. Well, there will be: on either of two conditions. European countries give up their sovereignty, which will likely never happen - this is, after all Europe - or it may if the respective local stock market are trading just north of zero, or if the bailout targets pledge their gold as decribed before. After all, it is quid pro quo Clarice.

Everything else is merely noise to make the required market crash to activate Germany's grand master plan, gentle and orderly.

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Wed, 06/13/2012 - 06:25 | 2520729 It is a bargin ...
It is a bargin my friend's picture

Nigel sorting them out again this morning I see

Wed, 06/13/2012 - 06:30 | 2520733 Colombian Gringo
Colombian Gringo's picture

Why should Germany take on trillions of euros of debt to support Greeks retiring at 50, french at work doing nothing, spanish  wasting time, italians partying..etc?

Wed, 06/13/2012 - 06:34 | 2520739 maxmad
maxmad's picture

ruh roh!  Collapse Bitchez!  Ensuring a Grexit on Sunday!

Wed, 06/13/2012 - 07:02 | 2520780 fourchan
fourchan's picture

How do you say enough is enough in german?

Wed, 06/13/2012 - 07:15 | 2520791 Imminent Collapse
Imminent Collapse's picture

Genug ist genug

Wed, 06/13/2012 - 07:37 | 2520817 farmjohnny
farmjohnny's picture

Its universal, "Fuuuuuck"

Wed, 06/13/2012 - 10:07 | 2521398 Instant Wealth
Instant Wealth's picture

"Heckler & Koch"

Wed, 06/13/2012 - 07:02 | 2520781 ONO47
ONO47's picture

Followed by Spexit, Italexit, Porexit, etc.....


PIIGS on a spit

Wed, 06/13/2012 - 07:33 | 2520814 tocointhephrase
tocointhephrase's picture

porexit or should that be a poor exit lol

Wed, 06/13/2012 - 08:53 | 2521020 ZeroAvatar
ZeroAvatar's picture


Wed, 06/13/2012 - 06:38 | 2520749 Peter Pan
Peter Pan's picture

Regardless of whether your statements about each nationality are true, it is a well known rule in finance that personal guarantees for third parties are a poison to be avoided.

Wed, 06/13/2012 - 06:40 | 2520752 YuropeanImbecille
YuropeanImbecille's picture

If they don't take on trillions in debt they are ANTISEMITES!!!!! it is as easy as that with todays 1984-doublespeak-psycho-zionist-satanist world.

Wed, 06/13/2012 - 07:37 | 2520818 tocointhephrase
tocointhephrase's picture

Anti Semite: One who discriminates against or who is hostile toward or prejudiced against Jews

WTF has that got to do with bailouts?

Wed, 06/13/2012 - 07:55 | 2520848 GMadScientist
GMadScientist's picture

Have you scrutinized the demographics of "the bailed out" recently?


Wed, 06/13/2012 - 10:30 | 2521579 tocointhephrase
tocointhephrase's picture


Wed, 06/13/2012 - 07:21 | 2520801 my puppy for prez
my puppy for prez's picture

They probably won't...and the result will most likely be a strongly centralized power base of globalist puppetmasters.

Wed, 06/13/2012 - 07:53 | 2520846 GMadScientist
GMadScientist's picture

"Why should Germany..."

Because they have a banking system that is wholly dependent on that DIP arrangement (just as China is dependent on the continued rapacious self-cannibalization of the US).

Wed, 06/13/2012 - 06:32 | 2520735 GeneMarchbanks
GeneMarchbanks's picture

To be fair, he was using a teleprompter. Brought to you by HSBC.

Wed, 06/13/2012 - 06:55 | 2520773 LULZBank
LULZBank's picture

Some people HAVE to slip, everytime they see a banana peel.

Wed, 06/13/2012 - 08:04 | 2520866 LULZBank
LULZBank's picture

Downtick WTF?

I was just agreeing with Gene, that some people have to fall for the demagoguery everytime?!

Wed, 06/13/2012 - 07:09 | 2520737 Cupid Stunt
Cupid Stunt's picture

Thanks for that Bargin +1

Puts a spring in the step to start the day at Fight Club.

Wed, 06/13/2012 - 06:27 | 2520731 lolmao500
lolmao500's picture

Germany, using their classic NEIN NEIN NEIN catchphrase...

European countries give up their sovereignty, which will likely never happen

Wanna take a bet on that?

Wed, 06/13/2012 - 07:19 | 2520799 my puppy for prez
my puppy for prez's picture

TPTB, which are NOT the European figure heads, are simply using the strongest member (Germany) to achieve their ultimate Hegelian objective, which is a more federalized Europe.  Much panic and handwringing must happen first.

Here is how it works:  EU goes into severe crisis (problem).  Europeans want help but resist losing their sovereignty (reaction).  The REAL and HIDDEN powers use Merkel to play hardball, the threat of complete destruction and severe chaos looms over Europeans, and eventually they are convinced that they must give up their sovereignty to even survive (solution).

PROBLEM/REACTION/SOLUTION.  That's how this world works....always has, always will, as long as humanity doesn't realize how they've been played.

I know this is not the popular or consensus view as to what will happen, but I try to not underestimate the chicanery of the evil bastards.  All heads of state are merely PUPPETS, actors on a stage....

Wed, 06/13/2012 - 07:28 | 2520808 lolmao500
lolmao500's picture

I know this is not the popular or consensus view as to what will happen

I think this is the consensus on ZH...

Wed, 06/13/2012 - 08:02 | 2520865 ThirdWorldDude
ThirdWorldDude's picture

Remember, it's Europe we're talking about. We have a 2000 year history of wars that have been waged on more trivial issues than sovereignty and class struggle... 

The project United States of Europe is never going to happen. They pushed, but didn't succeed with that agenda during EU's "golden days" some 10 years ago just because nationalism runs deep on this continent. 

Wed, 06/13/2012 - 08:19 | 2520896 Vince Clortho
Vince Clortho's picture

  I think many here agree with the basics of your post.  The Globalists will unquestionably try to manipulate the Euro Crisis to support their goal of a single political entity comprised of former sovereign states, and ruled of course by the parasite club.

Merkel is in their pocket, as are many of the key players.  An ongoing media propaganda blitz is the primary tool of choice.  They would love to see the people of Europe accept slavery without any resistance, or even better, without the realization that they have given up their freedoms to a group of kleptocrats.

Wed, 06/13/2012 - 06:34 | 2520738 Peter Pan
Peter Pan's picture

Germany is posturing from a position of relative strength but minus Germany's strength, one wonders what strengths Europe has left.

Europeans have fallen out of the plane only to find that Germany will not open her parachute because she knows that opening it will only weaken her.

Moreover the clever men in Germany have extrapolated the present European situation and I suspect they know that Europe is on borrowed time unless Europe submits to German rules and controls.

A dangerous game of chicken in my view.

Wed, 06/13/2012 - 06:38 | 2520747 LULZBank
LULZBank's picture

Fine planning with blinders on.

But what will happen when German exports take a hit, which they will, and Germany itself needs stimulus' and growth?

Wed, 06/13/2012 - 07:17 | 2520794 Peter Pan
Peter Pan's picture

Perfectly valid observation unless Germany has other customers in mind. The other problem is that even if Germany was supportive of imports from other European partners as a means of sharing her good fortune and management, how much can she import anyway? There are dead ends and conflicting issues no matter which way you turn.


Wed, 06/13/2012 - 06:36 | 2520743 LULZBank
LULZBank's picture
  • German finance minister says redemption fund would violate EU treaties, in interview with Stern magazine
  • Atleast someone cares about EU TREATies.

    Wed, 06/13/2012 - 06:37 | 2520745 Wakanda
    Wakanda's picture

    Angie seems less and less willing to party.

    I think she misses Sark and is throwing a hissy fit.

    Wed, 06/13/2012 - 06:41 | 2520753 Peter Pan
    Peter Pan's picture

    And her party will in time be less and less willing to party with her.

    Wed, 06/13/2012 - 07:02 | 2520783 Herodotus
    Herodotus's picture

    Angie is reported to have booked a railway carriage in a forest outside the town of Compiegne as the site for the next Euro Summit.

    Wed, 06/13/2012 - 07:16 | 2520793 Wakanda
    Wakanda's picture

    If that rail car is rockin' don't bother knockin'.  Angie will be showin' the PIIGS who is boss of that shit pile.

    Wed, 06/13/2012 - 08:20 | 2520902 hedgehog9999
    hedgehog9999's picture

    Interesting, isn't that how Hiiler got the French to surrender in 1940 and how the Allies got Germany to surrender in 1918 and now Germany wants to meet again in a railroad car?

    Wed, 06/13/2012 - 10:00 | 2521360 StychoKiller
    StychoKiller's picture

    A joke isn't funny if you explain it...

    Wed, 06/13/2012 - 06:43 | 2520757 insanelysane
    insanelysane's picture

    The euro server Germany's economy well for 10 years but it has become clear to Germany that the euro will bring them down going forward.  They are just kicking the can now until they can get marks printed up for distribution.

    Wed, 06/13/2012 - 07:18 | 2520798 hedgehog9999
    hedgehog9999's picture

    Interesting that that company FTP from Canada who provide the paper for printing currencies shot up 50% up in the last few days. Now, I don'know who their clients are but it does not matter as EVERYBODY! will be printing, Marks, Dracmas, Francs, Dollars, etc. The end game is in clear view,


    Wed, 06/13/2012 - 07:57 | 2520854 GMadScientist
    GMadScientist's picture

    Ijo de puta!

    Wed, 06/13/2012 - 06:46 | 2520761 LTJ
    LTJ's picture

    This is same narrative for past 2 years with Greece fire - Greece saved - violates EU treaties.  Greece fire - Greece saved - violates EU treaties.


    ad infinitum


    I guess they figured it worked with Greece (Not really - but hey who cares that there are real people involved)  .....

    Wed, 06/13/2012 - 06:46 | 2520762 Genève Barbegazi
    Genève Barbegazi's picture

    From this mornings Gains, Pains & Capital newsletter:


    "I know, I know... Spain is saved thanks to a 
    €100 billion bailout. But no one is asking 
    just where this money will come from? 

    The IMF isn't involved. Nor is the ECB. 

    That leaves just the European Stability 
    Mechanism (ESM)... except for the little 
    known fact that only 3 of the necessary 17 
    EU members have ratified legislation to 
    even CREATE the ESM. 

    That's right... the ESM doesn't even EXIST 

    On top of this, Spain and Italy make up 
    30% of the ESM's supposed funding. So... 
    Spain is going to bail itself out? 

    And finally... Germany hasn't OK'd the 
    ESM.  In fact, German opposition leaders 
    have stated point blank that hoping for 
    Germany to ratify the ESM before its 
    due date (July 1) is "completely unrealistic." 

    So... Spain is going to be bailed out by 
    non-existent entity whose leading member 
    likely won't even have ratified its formation... 
    before July 1. 

    Again... WHERE is the money going to come 
    from? "


    Also read:



    Wed, 06/13/2012 - 06:52 | 2520769 LULZBank
    LULZBank's picture

    So... Spain is going to be bailed out by 
    non-existent entity

    It will be a non-existent cash anyway, unless someone has earned and saved it.

    Wed, 06/13/2012 - 07:06 | 2520786 falak pema
    falak pema's picture

    Its not a non-existant entity its the EFSF today, which means its the Euro governments, and their central banks; aka Deutsch Bank, Banque de Fr etc. Of course apart from Germany all these central banks have more private bank sector debts to sustain, if marked to market, than potential assets available; just saying...

    Wed, 06/13/2012 - 08:40 | 2520971 hedgehog9999
    hedgehog9999's picture

    No because it is the ESM that was to be used not the EFSM, that's how you get the subordination issue in play....................

    Wed, 06/13/2012 - 07:18 | 2520797 Imminent Collapse
    Imminent Collapse's picture

    When you have them by the balls, their hearts and minds will follow. - Charles Colson

    Wed, 06/13/2012 - 07:23 | 2520803 hedgehog9999
    hedgehog9999's picture

    ENTER BEN vith zee cash to protect zee system!

    Wed, 06/13/2012 - 06:56 | 2520774 Sudden Debt
    Sudden Debt's picture

    Oke.... if banks don't nosedive today I don't know...

    Wed, 06/13/2012 - 06:57 | 2520776 oldgasII
    oldgasII's picture

    You'll know that the Germans are getting serious when they start rounding up the Greens for "re-education."

    Wed, 06/13/2012 - 07:04 | 2520784 fourchan
    fourchan's picture

    when ponz goes hyperponz.

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