This page has been archived and commenting is disabled.

Guest Post: The End Of The Euro: When Will It Happen?

Tyler Durden's picture


Submitted by Tim Staermose of Sovereign Man blog,

My 2-year old nephew in Australia loves getting postcards.  He already associates me with frequent traveling.  I’m referred to as “Tim Hong Kong jet plane.”

So before leaving Italy today, after a fantastic week in the Umbrian countryside with our Sovereign Man Total Access members, I set out to mail him some postcards. What I got, among other things, was a useful lesson in Italian bureaucracy.

In Hong Kong, on the rare occasion I need to mail a letter, I put a few coins in the vending machine on the outside wall of the post office. Space is a prized commodity that costs a lot of money in Hong Kong, so post offices are small and efficient.

Here in Rome, the main post office at Piazza San Silvestro is in a majestic old building with imposing architecture.  There were acres of cavernous space inside that could have been much better used by high-end retail shops earning a profit. Instead it goes to Italy’s famously slow, inefficient, loss-making postal service.

It was a procession just to buy a few stamps. Stand here, stand there. Take this ticket, fill out this form, print that form. What should have taken 10 seconds took 10 minutes. I finally got what I needed, but the process it took to get there was a real eye opener.

They have all these fancy IT systems—the mail clerk was in a clicking frenzy moving from screen to screen with all sorts of dropdown menus and product codes. But I get the sense that this ‘technology’ just gives the post office a veneer of modernity and sophistication without actually being necessary or adding any value.

This is typical of bureaucracy: take a simple task, make it unnecessarily complicated, then spend a bunch of money on technology that makes it even more complicated.

Given my experience this morning, Italy has clearly mastered the art of unnecessarily complicating the simple. It’s no wonder they have serious problems paying the bills.

Moreover, the country’s demographic challenges indicate the country’s fiscal situation cannot improve.

Robust economies are productive… and productivity is typically not associated with the elderly. Italy has one of the world’s oldest populations concurrent with one of the lowest birth rates.

This trend drives an unsustainable fiscal quandary: bloated public sector bills with lots of old people to pay pensions to, coupled with a rapidly shrinking population devoid of young workers to pay taxes.

At this point, Simon and I both agree there can be little doubt that Italy will exit the eurozone… most likely voluntarily. A return to the lira means the Italian government (probably to be headed by Berlusconi once again) would be free to print currency at will. This is the only reasonable solution remaining.

(Simon thinks they’ll probably even make up some silly patriotic-sounding name like ‘new strong lira’…)

When will it happen? Probably sooner than we think. Look at the European bond market— making a loan to the Italian government for three years yields just 3.642%… an absurdly low figure given the country’s untenable finances.

screen capture 1 1 300x140 The end of the euro: When will it happen?

Meanwhile the same loan made to the German government yields less than one one-hundredth of that amount (0.034%…) Yields on shorter duration bonds (2-year and below) are all negative.

screen capture 2 300x141 The end of the euro: When will it happen?

In other words, you lose money loaning to the German government for up to two years.  This is the period of time that the bond market is sensing maximum risk, and it may be worth considering as a final window for the euro’s demise.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 08/31/2012 - 17:15 | 2753880 Wolferl
Wolferl's picture

It will never happen. The Euro will be the next major reserve currency soon, even crude oil will be priced in Euro.

Fri, 08/31/2012 - 17:22 | 2753885 Ahmeexnal
Ahmeexnal's picture

How do you say KOOL AID auf douche?

Your thousand jahre reich will NEVER happen. Now please ROT OP!!

Fri, 08/31/2012 - 17:30 | 2753913 slaughterer
slaughterer's picture

Tnis "sovereign man" site, is this concept of sovereignty related to Georges Bataille's concept or Carl Schmitt's concept?  The answer will detertmine if I buy you "sovereign man" riters out for $5billion.  Also, why not a "sovereign woman"?  Please, be so daring as to PM me or respond on this reply thread.  Otherwise you guys are not so sovereign as ai thought.  

Fri, 08/31/2012 - 17:35 | 2753923 BKbroiler
BKbroiler's picture

In Italy, it can take months to just get your electricity and landline turned on.  MONTHS.  Getting a day in court can take decades. The level of bureaucracy in every part of life is absolutely stifling and unbelievable.

Fri, 08/31/2012 - 17:49 | 2753950 malikai
malikai's picture

..And I thought Britain was bad. The word that comes to mind is 'untenable'.

Fri, 08/31/2012 - 20:26 | 2754235 Ahmeexnal
Ahmeexnal's picture

Even german sheeple are "wising up" to franco-greek-italian union muscle flexing:  in a country where strikes were pretty much non-existent, welcome to the new normal.

Air traffic in and out of Frankfurt airport, Europe’s third busiest, struggled to normalise on Friday afternoon after hundreds of flights were cancelled due to a Lufthansa cabin crew strike. The effects were felt throughout Europe.

Lufthansa....the new IBERIA.

And the new normal in europe: stiff your elderly, but keep cashing their retirement checks.
German traffic police who stopped a car for driving erratically found the body of the driver’s father stuffed behind the back seat. It appears he starved to death.
But wait, hope is not lost yet!  German engineering brings to the world the latest marvel of technology that will pull europe out of recession and turn the eurozone into a export behemoth.  Behold...the 190 euro....PAPERBAG:
German fashion house Jil Sander has launched a men’s hand bag which is not only designed to look like an ordinary brown paper bag – it is a brown paper bag. But at a price of €190, throwing it away after one use would be a mistake.
If this fact alone does not scream out "failed society", nothing will.  Meanwhile, accross the Maginot Line, french collectivist politicians proclaim that citizens have the right to inject themselves in comfortable "opium dens" paid by the moronic taxpayer:
A socialist politician has made an appeal for supervised “shoot-up rooms” to be made available to drug users in towns across France. In an interview with daily paper Le Parisien, socialist party MP and health minister for Paris, Jean-Marie Le Guen, called for the government to create legal injection rooms in light of figures revealing an increase in heroin use in Paris.

Le Guen, who is also a doctor, said: “90,000 kits containing among other things two syringes were distributed between January and June, which is a 7 percent increase on the same period in 2011.”

You can't make this shit up!
Fri, 08/31/2012 - 20:28 | 2754265 nmewn
nmewn's picture

A €190 brown paper man bag? the bum who has everything ;-)

Fri, 08/31/2012 - 20:37 | 2754284 Ahmeexnal
Ahmeexnal's picture

for the bum who has everything....except a brain ;-)

There, fixed it for you.

Fri, 08/31/2012 - 20:49 | 2754312 nmewn
nmewn's picture

lol...maybe I was looking too far into the future...theres a subsidy on the horizon ;-)

Fri, 08/31/2012 - 23:09 | 2754503 AldousHuxley
AldousHuxley's picture

end of euro = rise of yuan


Chinese will make that decision when the time comes. but right now they got this worthless dollar problem.

Sat, 09/01/2012 - 04:03 | 2754657 Maghreb
Maghreb's picture

On the shooting galleries front they actually save money. Socialized health care means if some smack head gets AIDs he has to receive a full course of meds that are very very expensive. Also you can basically ID the fuckers and keep track of them, opium dens act as a magnet so as to keep them all in one place. 

Keep your freinds close and your junkies closer.

Fri, 08/31/2012 - 17:53 | 2753955 kito
kito's picture

at least their food is simple.........pasta al dente......fresh marinara sauce.....sprinkle of aged parmigiano of chianti................cant improve that......................

Fri, 08/31/2012 - 18:05 | 2753971 BKbroiler
BKbroiler's picture

cant improve that................

unparalleled. and life is still very good there, but things are changing quickly.  my uncle's pension was cut in half a few years after retiring in his late 60's from a government job.

Fri, 08/31/2012 - 18:42 | 2754036 smiler03
smiler03's picture

This article was written by Simon Black.


Simon Black ALWAYS writes with just one or two sentences per paragraph. BUSTED.

Fri, 08/31/2012 - 18:46 | 2754048 NewWorldOrange
NewWorldOrange's picture

So, Grammar Queen, why don't you contribute an article to ZH Your Heiness?

Fri, 08/31/2012 - 19:30 | 2754151 smiler03
smiler03's picture

You missed my obvious point, picky twit. The article was written by Simon, his style gives it away. His name is not at the top. Maybe you haven't spotted his style?

Simon Black is a pillock and is stupid enough to use one of his "colleagues" names at the top so that those accustomed to his "I just happen to be in gagaga Land doing good to the world and my investors and my anecdotal point is... I know best and I love it."

But you interpreted it differently, that's your choice.

And anyway, where did I say his grammar was bad?

Fri, 08/31/2012 - 19:43 | 2754170 smiler03
smiler03's picture

I said his grammar was bad lower down, fairys muff.

Fri, 08/31/2012 - 18:51 | 2754061 brettd
brettd's picture

Na...The French know how to cook.

The Italians know how to live.

Fri, 08/31/2012 - 19:14 | 2754114 Vet4RonPaul
Vet4RonPaul's picture

brettd, the Italians know how to cook and live better than the French.  I've been to both countries numerous times and dined in style.  The Italians have it all over the French.  The French use too much butter and sauces.  Italian cuisine is simply the best in the world and I've been around (sort of like a whore but not as classy).

Sat, 09/01/2012 - 04:26 | 2754664 MisterMousePotato
MisterMousePotato's picture

"Too much butter?!?" There's no fucking thing as 'too much butter'.

Case in point ... popcorn or English muffins made by yours truly.

And/or, well, anything else.

"Too much butter?"

Shakes head.

p.s. After I wrote this, I gave you a down arrow. Wish I could give you 20.

"Too much butter."

Mutters to himself.

Third edit: I just realized ... I am French. Well, sorta. First generation American, but my parents are native born French.

Wonder if that ...

Fri, 08/31/2012 - 18:59 | 2754081 brettd
brettd's picture

The former US ambassador to Italy recently said (paraphrase):  Europeans tend to manage problems, while Americans tend to fix them.  (At least that used to be the idea...)

Fri, 08/31/2012 - 19:15 | 2754117 Vet4RonPaul
Vet4RonPaul's picture

now there's a non too smart diplomat

Fri, 08/31/2012 - 20:10 | 2754229 Ghordius
Ghordius's picture

+1 excellent comment. The very phrase "is europe fixed now?" is utterly repellent to my ears. "Fix your own >insert dear female relative<" comes quite spontanuosly to my lips.

Fri, 08/31/2012 - 20:28 | 2754257 deez nutz
deez nutz's picture

Europeans tend to manage problems, while Americans tend to fix them.

Americans have something called a "printing press".  With this device america can hyperinflate itself to great magnitudes to solve problems.   Like sci-fi its mortal-to-hero to stop evil then hero-back-to-mortal metaphorphisis.  Think "ultra-man". 

The only difference is America can't turn off the press without killing the super hero.  

Sat, 09/01/2012 - 14:17 | 2755221 giovanni_f
giovanni_f's picture

"debt ceiling" comes into my mind. Fixed as can be.

Fri, 08/31/2012 - 18:13 | 2753993 RiskAverseAlertBlog
RiskAverseAlertBlog's picture

Excellent question, and no doubt rhetorical, too. Thus, was there any need for the challenge, or was this made knowing you could not go to either presidential campaign for the answer you already know? Hope you're an American. We could use more like you.

Fri, 08/31/2012 - 17:18 | 2753891 Rakshas
Rakshas's picture

The euro ..... didn't seem to get a mention yesterday at APEC i Heard Rubles and Yawn and maybe YEN and Sing ding

I think toilet paper is next the next reserve clownery

Fri, 08/31/2012 - 17:21 | 2753895 magpie
magpie's picture

I agree with a qualified "never", we might even see a peg with the Dollar as both are devalued into oblivion.

Fri, 08/31/2012 - 18:09 | 2753979 NewWorldOrange
NewWorldOrange's picture

It should be obvious to everyone by now that all fiats are going down. Might take years but it's inevitable. And what would happen if say, China, announced tomorrow that their currency will now float fully, and be even partially backed by gold? The U.S. government has placed us in this precarious position where any number of events can collapse our system and send us into a cannibalistic orgy with out of control debt our kids/their kids/etc can never repay. The Fed enabled that. What enabled the Fed to print unlimited money? Having no restrictions on it. What used to restrict it? The Gold Standard (at least a semi- Gold Standard.)

Yet most every American thinks that's a quaint, idiotic standard, and even when a few Republicunt mouth pieces pay it lip service, they do it only to try to appease Ron Paul supporters, and don't even believe their own words. The situation is the same throughout the western world. Where are they paying it more than lip service, and accumulating vast amounts of gold/precious metals? The east. China. India.

That's where we are. It's not going to change. i.e. WE'RE FUCKED. If there will be a new global reserve currency (at least for a time), it's going to be one backed by something tangible like gold/metals/oil. Countless politicians and economists etc in China have made it well known they intend to bring down the dollar. China has been buying up metals deposits all over the world for years. Go figure.

As for the Euro, or the dollar -- either could plug along for many years. Or a single black swan event like the announcement of a floating gold-backed Yuan could send them into a downward spiral next week. There is no calculus available to predict when. That sort of tea leaf reading is the fantasy of central planning Keynesian idiots. It's a complex variable as the Austrians would say. Only thing that's certain is that it WILL happen.

Fri, 08/31/2012 - 18:59 | 2754080 Ahmeexnal
Ahmeexnal's picture

Never mind a gold backed Yuan.
Black swan has a full name: SILVER BACKED DRACHMA.

Fri, 08/31/2012 - 17:26 | 2753902 sessinpo
sessinpo's picture

It will eventually happen, but not for some time. It is simply the current tool being used for wealth transfer and to gain power by central planners, EU, ECB, IMF. etc. This is really nothing new. This isn't the first time a single European currency was tried for the same reason, not the reason they gave, which was to modernize Europe and make it globally more competitive. Isn't it interesting how they had made the argument that Europe would be more competitive by reducing choices, by creating a monopoly. The left has truly mastered the art of changing definitions to suit their agenda - sometimes we call it political correctness.

Fri, 08/31/2012 - 17:51 | 2753952 malikai
malikai's picture

WTF? Was that today?

Fri, 08/31/2012 - 18:00 | 2753960 Daily Bail
Daily Bail's picture

No, it's from last September.  I reposted it on the front page because of the 5-month high for gold.

This is better:

Bring The Gold & Keep The Cash To Line Your Panties
Fri, 08/31/2012 - 20:50 | 2754314 Bring the Gold
Bring the Gold's picture

:D Hehe, a leprachaun after me own heart. I should use that as my user name. Oh right I did. ;) Love that video.

Fri, 08/31/2012 - 17:56 | 2753962 Rakshas
Rakshas's picture

Ok there has got to be a stupider statement out there  surely......... give this poor dumb clam a break already ,,,,,,,,,





Fri, 08/31/2012 - 20:30 | 2754269 GeezerGeek
GeezerGeek's picture

The USD is, in fact, backed by metals: lead and brass. They force us to use it. If the US scrapped the military and DHS - and I'm not suggesting this - then the dollar would fall rapidly, as the "full faith and credit" of the US government would no longer mean anything. How much faith can you have in an entity that is $16 trillion in debt if it has no way to enforce taxation on its citizens?

Fri, 08/31/2012 - 18:33 | 2754026 CrashisOptimistic
CrashisOptimistic's picture


An awful lot of people are calibrating their futures on the concept of eventually this and eventually that.

All of them, no exceptions, all of them think business as usual is as far as the eye can see -- largely because they do not begin and end all their thinking with oil, as they should.

Oil decides all this stuff.  It predates money.  Money has no meaning.  Oil means everything to a civilization of 7+ billion.

And before you say "bullshit, we got along without it for hundreds of years", note who "we" are.  Less than 1 billion.  That's how many there are going to be.  Soon.

Fri, 08/31/2012 - 17:46 | 2753945 Peter Pan
Peter Pan's picture

When Italy decides to exit the Euro, it will take another 10 years by the time the bureaucracy fills out the forms.


Fri, 08/31/2012 - 18:55 | 2754071 Silver Bug
Silver Bug's picture

All fiat currencies are a ticking time bomb. They all die eventually.

Fri, 08/31/2012 - 17:19 | 2753894 HedgeAccordingly
HedgeAccordingly's picture

Chicks! enjoy the weekend -

Sat, 09/01/2012 - 04:30 | 2754665 MisterMousePotato
MisterMousePotato's picture

My mother taught me that modesty is a virtue.

Fri, 08/31/2012 - 17:22 | 2753900 Newsboy
Newsboy's picture

Euro will end 5/1/15, but world will end 12/21/12.

Oh well...

Fri, 08/31/2012 - 17:32 | 2753915 Brazillionaire
Brazillionaire's picture

I don't think the world will actually end on 12/21/12... just gonna flip around a little bit, north becomes south... that sorta thing. 

We're opening Christmas presents on the 20th, just in case.

Fri, 08/31/2012 - 17:26 | 2753906 Element
Element's picture

Oh! ... I can answer this!

Not by the end of Summer 2012!

Fri, 08/31/2012 - 17:27 | 2753907 Hannibal
Hannibal's picture

Wishfull thinking is just that,...pure platonics, fabricated imaginary abstracts!

Fri, 08/31/2012 - 17:27 | 2753909 Cult of Criminality
Cult of Criminality's picture

Just pull the fricken plug already.

Glad I, do not have to watch any of this shit like those in the financial field have to.

As a long time commercial plumber I, would much rather deal with hospital fecal matter more than anything these people spew out their ass or face.

Fri, 08/31/2012 - 19:18 | 2754124 jumbo maverick
jumbo maverick's picture

The town I live in has JFK's quote "Ask not what your country can do for you but what you can do for your country." carved in a huge stone wall right out front of city hall.

I was thinking about that the other day and how far we have fallen as a country.

Now I have renewed hope after reading your above message, "I would much rather deal with hospital fecal matter more than anything these people spew out their ass or face."

This should be carved in stone in front of my city hall. I mean this without any sarcasm at all. When I see someone saying something like this then I know there are still rational people out there.

Fri, 08/31/2012 - 20:35 | 2754280 nmewn
nmewn's picture

Unfortunately, we have many here now who say...ask not what you can do for your country, ask what your country can do for you.

Fri, 08/31/2012 - 20:39 | 2754291 GeezerGeek
GeezerGeek's picture

That quote should be embossed on every SNAP card, Medicaid card and whatever other welfare freebie vouchers there are. Maybe it should also appear on any correspondence from Social Security and Medicare once the recipient goes beyond what he (+ employer) already 'contributed'. I would also suggest that everyone who received a bailout from the Feds should have it branded, in reverse, on their foreheads so they can see it every time they look in a mirror.

I wonder if Mitt will listen to such a proposal.

Fri, 08/31/2012 - 21:01 | 2754328 Zero Govt
Zero Govt's picture

not sure how much you can blame the spoungers can however attach as much responsibility without limit on the scum that set-up and perpetrate the system of Govt dependancy

Fri, 08/31/2012 - 17:27 | 2753910 Dr Benway
Dr Benway's picture

The point of this article is what? Two-year German bond yields are negative, so the euro will crash within two years?


I like the wideranging opinions the author has on subjects he is only barely cursorily acquainted with. So a five minute visit to the post office in Italy is enough to authoritatively write about Italy's inefficient postal service. LOL. He should be a consultant.

Fri, 08/31/2012 - 17:38 | 2753928 SilverNoob
SilverNoob's picture

It's the Sovereign Man blog. Take with extra large pinches of coarse grain salt.

Not submitted by Simon this time. Too busy getting his helmet polished by an impossibly blonde Norwegian banker....

Fri, 08/31/2012 - 18:48 | 2754052 smiler03
smiler03's picture

It was written by Simon. It is EXACTLY his style. Even the Homeland Security detection program would recognise it as him. In case you aren't familiar with SB's style. He always uses very short paragraphs, and wrongly. The grammar is shittily consistent.

Fri, 08/31/2012 - 19:20 | 2754131 Vet4RonPaul
Vet4RonPaul's picture

Is that you Sister Annuciata?

Fri, 08/31/2012 - 19:36 | 2754161 smiler03
smiler03's picture

I've no idea, I'll just fondle myself, I might be some time.

Fri, 08/31/2012 - 19:46 | 2754176 Dr Benway
Dr Benway's picture

Being able to distinguish different sovereign man writers by reading their articles is like being able to tell apart different rodent species by tasting their feces.

Sat, 09/01/2012 - 08:23 | 2754771 Byte Me
Byte Me's picture

It was written by Simon. It is EXACTLY his style. Even the Homeland Security detection program would recognise it as him. In case you aren't familiar with SB's style. He always uses very short paragraphs, and wrongly. The grammar is shittily consistent.

So that would be a Pseud writing under a pseudonym.


Since "Simon Black" is almost certainly an alias... that'll be a triple leveraged pseud that 'his' clients are buying into. Who in their right minds would trust the monkey typings of such blatant, solipsistic pretentiousness?

Fri, 08/31/2012 - 19:24 | 2754141 SilverNoob
SilverNoob's picture

I defer to your analysis. If SB did pen this, it would not surprise me in the least!

Fri, 08/31/2012 - 17:50 | 2753951 Peter Pan
Peter Pan's picture

You are correct that a five minute visit to the post office should not be the basis for such a dramatic conclusion, but what we must all keep in mind is that the whole fiasco is made up of many small parts and if you look in Italy, Greece, the USA too many small parts are broken down, corroded, inefficient, bureaucratic, loss making. I don't see too many moving parts of the economy these days that give me hope.

Fri, 08/31/2012 - 17:51 | 2753953 defencev
defencev's picture

Unless you did not notice, this is how the whole thing (sovereignman) operates: every little fart is interpreted as the event of monumental importance and a lot of implications immediately derived. To answer your question though: the point of this article is to mention that there is a new class of sovereignman "donors":total access members. The guys from the site have almost unlimited fantasy when it comes to the creation of cash flow out of thin air. The only thing which really amazes me is essentially unlimited supply of idiots willing to part with their hard earned money to keep the site going...

Fri, 08/31/2012 - 18:03 | 2753978 Dr Benway
Dr Benway's picture

Haha of course... So these "members" pay to hang out with sovereign man assholes in the "umbrian countryside"? So it's like some sort of social travel club with pretenses?

Fri, 08/31/2012 - 18:49 | 2754057 smiler03
smiler03's picture

Well spotted defencev, he sneaked that plug of his business right past me. I feel abused :(

Sat, 09/01/2012 - 14:31 | 2755238 giovanni_f
giovanni_f's picture

Dr Benway: Your posts are compressed bullshit - usually. To the extent that even the pixels of my notebook screen refuse to light up exactly where traces of your "existence" would be manifest. But credit where credit is due: This time you are right and I won't miss this unique opportunity to +1 you.

Fri, 08/31/2012 - 17:27 | 2753911 wandstrasse
wandstrasse's picture

just a little mind game: If the EUR collapses vs USD and this remains for more than a few months or weeks... then oil would become VERY expensive in the Eurozone. The real economy (the rest of it), would get rid of its oil addiction as fast as it possibly can and no matter how painful it is. All remaining capital and entrepreneurship and engineering (Germany!) would develop away from oil. Then it would become foreseeable that oil is NOT needed in huge amounts forever and everywhere on the planet. That would be the end of the petrodollar, the end of the global fiat system, the end of the ponzi. This is why it will not happen. A big war and a small reset (turning back the ponzi clock some years or decades) is much easier for TPTB.

Fri, 08/31/2012 - 19:21 | 2753924 Ahmeexnal
Ahmeexnal's picture

All remaining capital and entrepreneurship and engineering (Germany!) would develop away from oil.

Trying to reinvent the wheel, are ya?  Good luck "engineering away from oil".  It's already been done. You'll get slapped with a 2 quadrillion fine (like AAPL patent lawsuit -of a rectangle- against SAMSUNG).

Hydrogen powered cars were already done back in 1972:

But peak oil fucktards will tell you "only oilpower can move the universe".

Fri, 08/31/2012 - 20:58 | 2754323 GeezerGeek
GeezerGeek's picture

Florida, where I live, should outlaw hydrogen-powered vehicles. I mean really, we already have too much humidity here. We don't need vehicles that add to the problem by yielding H2O as a waste product.

I did enjoy the first link, not for the serious content about hydrogen-powered vehicles, but for the ads. Nice to see WD40 is still around 40 years later, although the one for the Kodak Instamatic is a bit out of date now that Kodak is getting out of the photography business. I was also tempted to print a copy of the subscription form and try to get Popular Mechanics for $5 per year.Or how about the GE electrical switch that uses mercury? Where was the EPA? Didn't they know mercury is dangerous and should only be used in light bulbs? The most timely was the ad headlined "Who'd have thought I'd make so much money without going to college?" Kind of ironic, given the problems with student debt and a vanishing job market faced by so many of today's graduates.

How times change. I have some old issues of Analog Science Fiction/Science Fact with equally anachronistic ads. Like a fully electrical adding machine (subtracts too!) for only $200. Nothing shows how much has changed as a good set of old ads.

Fri, 08/31/2012 - 21:33 | 2754381 Ahmeexnal
Ahmeexnal's picture

I wouldn't trust "the EPA" with telling me what is dangerous and what isn't.
Truth is, mercury is a fine element which the power elite don't want the sheeple to fully comprehend.
They could get ideas about free energy and we all know old pops JPMorgan don't like things where you can't attach a meter to charge the sheeple.

Sat, 09/01/2012 - 08:23 | 2754777 Marco
Marco's picture

Hydrogen is difficult/dangerous to store, you either have extremely high pressure tanks or metal matrixes with lousy storage density and energy to weight ratio. Sure you can build one, but it only makes sense in prototypes.

The future for mobile energy storage is methane, it can be stored liquid at relatively low pressure, petrol engines can be modified to run on it and it's the simplest hydrocarbon to synthesize (which is not to say it would always be burned in a combustion engine, it might make more sense to use it with a fuel cell, hell it might make more sense to reform it back into hydrogen and feed it to a fuel cell).

Sun, 09/02/2012 - 00:46 | 2755853 Ahmeexnal
Ahmeexnal's picture

Yes, that's why when it comes to hydrogen you want to store the precursor and have the hydrogen created on demand.

Then again, you could go the hydrogen peroxide route if you are looking for more bang for the buck.

Fri, 08/31/2012 - 17:36 | 2753925 Brazillionaire
Brazillionaire's picture

bullish for bicycles?

BTW, I'm no expert on solar jet airplane technology, but I have to admire your ability to wish oil away!

Fri, 08/31/2012 - 17:33 | 2753916 Cult of Criminality
Cult of Criminality's picture

Guest Post: The End Of The Euro: When Will It Happen?

Sorry, Toto is off for the weekend.

Fri, 08/31/2012 - 17:39 | 2753929 No Euros please...
No Euros please we&#039;re British's picture

Sorry, but I have difficulty with the credibility of someone who can't buy a fucking stamp in Italy!! Seriously, it just isn't that difficult.

Fri, 08/31/2012 - 17:53 | 2753956 JohnG
JohnG's picture

Yep.  Usually just mail something at the hotel.

Fri, 08/31/2012 - 17:45 | 2753944 kito
kito's picture

EURO DOESNT DIE OFF. IT WILL EMERGE LEANER AND MEANER.......(i cant wait to access the fed discount lending window,  open my own investment bank....even though i have no retail branches....on a side note, im still looking for the goldman sachs branch in the city, anybody know where it is?.....i digress...sorry......) and hire myself for seven figures per annum to make these predictions.....



Fri, 08/31/2012 - 17:55 | 2753963 JohnG
JohnG's picture

GS branches are everywhere.  Just open a manhole cover, they're in there.  The larger branches are in the sewer cleanouts.

Fri, 08/31/2012 - 18:10 | 2753989 kito
kito's picture

+1...............................and i hear their deposit accounts have a great interest rate....your money is in their interest, and nobody elses...........

Fri, 08/31/2012 - 18:20 | 2754009 lotsoffun
lotsoffun's picture

my brokerage account at ML and my moms retirement accounts at ml/bac earn .04% - until i closed them.


Fri, 08/31/2012 - 19:05 | 2754092 Ahmeexnal
Ahmeexnal's picture

I'm getting shafted by UBS with negative interest rates. But I keep the account open so I can later shaft them with the class action suit.

Fri, 08/31/2012 - 19:25 | 2754143 Papasmurf
Papasmurf's picture

You may want to confer with past MF Global customers to know how that works.

Sat, 09/01/2012 - 02:26 | 2754627 John_Coltrane
John_Coltrane's picture

Thanks for the best laugh on this thread.  Glad I wasn't drinking anything or I would have had a coughing fit!

Fri, 08/31/2012 - 17:54 | 2753957 Tirpitz
Tirpitz's picture

"Robust economies are productive… and productivity is typically not associated with the elderly. Italy has one of the world’s oldest populations concurrent with one of the lowest birth rates."

Mate, you may have forgotten the endless stream of well-tanned new Italianos swamping onto Lampedusa's shores day and night. Nature at its best: only the most able, only the strongest survive harsh days on sea sailing towards the blessed land of Conte Berlusconi and his honorable society.

These undesired but nevertheless spreading new citizen will make up for the elderly's deteriorating demographics, as they'll outbreed even the rats in the gutter. So not all hope is lost on that account, yet. As of productivity we shall see; rumor has it, they already invented many ways to make a living off the beaten track of taxed gainful employment.


"In other words, you lose money loaning to the German government for up to two years."

Not necessarily. Germany guarantees the money loaned to her, even if its origin is highly controversial. Capital, capital uber alles, after all, while the working class gets shafted for another turn.

Fri, 08/31/2012 - 17:54 | 2753959 Juan Wild
Juan Wild's picture

When Americans wake up. So I guess not anytime soon. End the Fed and end the Fed's propping up of the euro by its' murder of the dollar. ----->END THE FED<----- the most important way to make America strong again! Strong and Full of Light. Not like now...DARK and BULLYING.

Sat, 09/01/2012 - 08:36 | 2754784 Marco
Marco's picture

The Fed isn't murdering the dollar by propping up the Euro. The real economic value of the dollar has already been murdered a long time, what remains is military extortion and market irrationallity ... to preserve that is why the Fed props up the Euro.

The dollar would lose a huge amount of value if the status quo collapsed globally. Which would probably happen if the Euro collapsed, with no more theater across the Ocean to look at people might start to notice that the US's economy is in no better shape than Greece's.

Fri, 08/31/2012 - 18:01 | 2753973 magpie
magpie's picture

The most obvious reason this scenario is unlikely: can't Silvio be replaced by an EU/GS bureaucrat once again, after the election ?

Fri, 08/31/2012 - 19:26 | 2754145 Ahmeexnal
Ahmeexnal's picture

You have something against La Cicciolina?

Fri, 08/31/2012 - 20:18 | 2754248 Ghordius
Ghordius's picture

LOL +1 too old! You are a romantic!

Fri, 08/31/2012 - 18:14 | 2753998 Itch
Itch's picture

Mindblowing, he calls the end of the euro by visiting a postoffice, this guy is a genius, or autistic. Im going to visit my own post office tomorrow, and if i see one of them there complicated dropdown menu thingy's then im shorting the shit out of the pound.

Fri, 08/31/2012 - 18:54 | 2754067 smiler03
smiler03's picture



Methinks you haven't visited a British Post Office recently. They cunningly have the monitor facing the cashier. I think it helps them use it. As per usual, the Italians are just being "showy", an Italian Post Office screen is actually a Fisher Price toy computer.

Fri, 08/31/2012 - 21:41 | 2754396 Apostate2
Apostate2's picture

I'm having a laugh. The Royal Mail clerks can't add or subtract and the bagmen won't deliver anything heavier than a quid.

Paris is on par except for entertainment. Ever argue with a French post-fille? Made weekly visits just to have a good piss-up.

Fri, 08/31/2012 - 18:55 | 2753999 THE DORK OF CORK
THE DORK OF CORK's picture

There is currently a vast number of young people from Spain that have reached retirement age at the ripe old age of 18

Ireland has  the highest birth rate in the EU at 16.3 per 1000 in has produced 73,000 ~ babies a year since 2006 , 28,000+ people die a year.

The GDP & GNP per head is  crashing.

Both countries are Fucked

Youth & Age have very little to do with this macro situation.

We have both a energy and monetary crisis in Europe - both of which are interlinked , with the monetary envoirment & neo - liberal doctrine  preventing rational use of available resourses.

The PIigs function at the moment is to bail out the cores waste based industries - car production etc etc.


The labour theory of value only mattered when labour was a important part of the machine - ITS NOW ALL ABOUT CAPITAL ASSETS BABY or how useless much of those CAPITAL ASSETS are at $100 oil.

 Italy & Spain made some classic mistakes that goes all the way back to the oil glut  / EMU neo liberal era of the mid 80s

You must think long term when you build such capital assets.

Italy has a very large Nat Gas bill partly because of this.


Fri, 08/31/2012 - 19:15 | 2754116 LMAO
LMAO's picture

The PIigs function at the moment is to bail out the cores waste based industries - car production etc etc.

Hence our Greek friends purchasing (=misallocating bailout funding) those submarines from our German friends. Let me tell you my friend these Greeks are dzjeeenious, dzjeeenious to quote the illusive Mr. Panos.

It has been discussed here at ZH that the next step for Greece is to start selling some Greek islands. Guess who springs to mind. China of course! Aaaand who will need some submarines to go with their island to bring some much needed stability to this region and dampen the enthusiasm of the warmongering financial terrorists and their Zionist neocon friends..... Well again, China of course.

You see where this is heading?

Dzjeeenious these Greeks.


Fri, 08/31/2012 - 19:26 | 2754144 THE DORK OF CORK
THE DORK OF CORK's picture

Well they have already sold one island.


Me thinks some outside powers have a belief that  if they are prepared to sell one.....

Fri, 08/31/2012 - 19:40 | 2754166 smiler03
smiler03's picture

Come now Dork. You're better than that...


"It is mainly known as the private island of the late Greek shipping billionaire Aristotle Onassis. It was the site of his wedding to former US first Lady Jacqueline Kennedy on October 20, 1968."


Fri, 08/31/2012 - 19:17 | 2754125 smiler03
smiler03's picture

As ever, very interesting statistics and insight. Thanks ;O)

Fri, 08/31/2012 - 18:50 | 2754060 Yellowhoard
Yellowhoard's picture

Japan is the demographic time bomb.

As KBass said, "there's more people in adult diapers than baby diapers in Japan."

When Japan collapses look out.

Fri, 08/31/2012 - 19:20 | 2754108 THE DORK OF CORK
THE DORK OF CORK's picture

Me thinks Bass has faith in the Bangladesh method of economic can produce a almost endless amount of money to pay nurses as they don't consume much BTUs.

Japan has a problem with its Nukes off line and exposure to external trade death as the lights go out over the western world.

Diesel is what does the heavy work  


The young people get paid to do services.

In Spain for example they have a serious surplus of young service workers

European countries should adopt simple but effective fiscal solutions that attack the root of the problem -a shortage of liquid energy.

Produce interest free money to produce almost free train tickets......use the surplus diesel  from cars not moving to build more rail & tram lines.

Repeat steps one and two for the next 20 years and see what happens......

Fri, 08/31/2012 - 19:21 | 2754132 smiler03
smiler03's picture

Your links .. but clickable.....

I wish I could get them to be in black instead of grey.

Fri, 08/31/2012 - 19:40 | 2754156 THE DORK OF CORK
THE DORK OF CORK's picture

Marios function is to transfer the remaining Euro Diesel ration to Germany & France.

He is a good German.......      There is a series of massive public works projects in France and to a lesser extent Germany which is burning this stuff.   From the small......



Fri, 08/31/2012 - 22:26 | 2754195 ZH11
ZH11's picture

The Euro is not just a currency.

It is an ideology that elites have fought to establish since the end of World War 2.

Simple economic arguments will not defeat an ideology, they never have.

For the Euro to cease being it will take European wide systemic failure of the banking system, this will never happen so long as the people who want the Euro to continue are in charge of the ECB etc which will self sustain.

Devaluation? Yes which is the global game of choice at present anyway, but outright failure? Not in the lifetime of anyone on this site.


Sat, 09/01/2012 - 05:42 | 2754689 ebworthen
ebworthen's picture

Kind of like those marriage vows, eh?

No divorces here.  Nope.  All is tranquility and love in the house of Europe.

Right kids? 

Mom isn't hanging out with that Greek runner, is she?

Dad isn't hanging out with that Spanish dancer, is he?

By the way kids, you don't mind if we spend your inheritance on a new Porsche and a trip to Jackson Hole every year for ten years, do you?


Remember now, no fighting and no parties while we're gone.

Fri, 08/31/2012 - 20:22 | 2754256 THE DORK OF CORK
THE DORK OF CORK's picture

To the very large and  corrupt PPP The Tours - Bordeaux LGV (A 7.8 Billion project) of 3 such lines under construction in France.

This requires Diesel and a lot of it.

"Energy is defined as the ability to do work"

Sat, 09/01/2012 - 00:55 | 2754595 Monk
Monk's picture

FWIW, Hong Kong is also experiencing economic and even political difficulties:


Sat, 09/01/2012 - 05:50 | 2754694 Apostate2
Apostate2's picture

These are long standing problems. And yes the elections on the ninth will be interesting. However at the end of the day, the problems will remain, because the 'yi guo , liang zhi' has a sell-buy date.

Need to be renogotiated.

Sat, 09/01/2012 - 04:13 | 2754653 foxenburg
foxenburg's picture

I live in Spain, and it's the same here. The simplest task is made complicated. I can only think that it was originally set up that way in order to create as many jobs as possible. But now it's culturally ingrained. Just to use a credit card you need to provide supporting ID. As for buying a pay as you go SIM card for a cellphone in a supermarket, you'll be there all day with passport, citizen registration documents, proof of address, etc filling in forms. Anywhere else inthe world you just pick up the packet and pay at the checkout as if you were buying a can of beans. They recognise how useless they are, but shrug and say that's the way it is. On the other hand, weather, food and booze are great.

Sat, 09/01/2012 - 14:27 | 2755233 mkhs
mkhs's picture

Do they still sell stamps in the tobacco shops? I guess you could go to the post office for the hassle, but then, no pithy analysis of the euro.

Sat, 09/01/2012 - 05:28 | 2754684 youngandhealthy
youngandhealthy's picture

Mr Staermose. An answer to your question: "NEVER"!!! USA can dream on having monopoly over global currencies. Those times are over. full stop.

Sat, 09/01/2012 - 05:32 | 2754685 ebworthen
ebworthen's picture

"The End Of The Euro: When Will It Happen?"


Sat, 09/01/2012 - 14:56 | 2755271 supermaxedout
supermaxedout's picture


Robust economies are productive… and productivity is typically not associated with the elderly. Italy has one of the world’s oldest populations concurrent with one of the lowest birth rates.

Postoffice: In Germany you hardly find one . They are gone.  They are called post agencies and are often integrated in mom and pop shops. Its not uncommon that you can buy bananas and and cigarettes and do registered mail  in one room. In other locations its combined with a shop for school supply and office material.  What is left from the traditional post offices are the "Post Banks" which is owned in the meanwhile by Deutsche Bank. But they are rather rare.

Stamps you can buy via internet, print it out and glue it to your letter.

In Italy traditional postoffices do still exist but their main task nowadays is also the banking business.  Of course there is still some room to improve the service and to trim down the workforce (50% of the existing one could do easily the task). But as we know Rome was not build in a day and I#m sure the Italians will do their downsizing too because there is no alternative.

On the otherhand Italy is often very modern. Its stateowned Enel electricity utility has since many years a state of the art remote meter system. This allows to monitor the exact use of the electricity during day and night thus adding stability to their net. And Enel offers tariifs which fit well to the individual consumer of electricity.  To cut one off from the line is also done remote.  This is something quite unknown in Germany.


Sun, 09/02/2012 - 04:30 | 2755948 Bob Bercy
Bob Bercy's picture

HoHo! The only people in Post-Offices in Italy buying stamps are desperate Euro-bloggers looking for "evidence".

Normal people in Italy buy stamps at the tobacconists.

Incidentally, any one tried sending or receiving a parcel via the US Postal service recently??? The last three parcels I have sent in the US via the post have all been stolen en route. Maybe it is being run by Private Equity these days...

And have you ever tried to make a claim for a lost parcel with the US Postal service? When Americans set their mind to it they can beat the world at anything ...including incompetence, dishonesty and dare I say it plain dumb burocracy.


Do NOT follow this link or you will be banned from the site!