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Guest Post: The Uncredible Dog And Pony Show: Merkel And Sarkozy

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Submitted by Charles Hugh Smith from Of Two Minds

The Uncredible Dog and Pony Show: Merkel and Sarkozy

Does anyone take the Merkel-Sarkozy dog and pony show seriously any more? Perception management is not a solution.

For the past 18 months, every time reality threatens to intrude in Europe, Merkel and Sarkozy rush onto the global stage for a repeat performance of their dog-and-pony show. The global media declares it an artistic triumph and the "solution" to Europe's insolvency.

The fact that we've seen the exact same performance repeated again and again appears to be lost on the financial media, which never tires of declaring "this is the solution that will end the European bank crisis."

A few days or weeks later, reality once again intrudes, the ugly truth of systemic insolvency rears its frightening head once again, and the Dynamic Duo of Eurozone political theater rush onto stage for another tiresome performance of their cliche-ridden dog-and-pony show.

Few in the corporate media stop to even ask if the dog and the pony even have the power to summarily re-capitalize banks and all the rest of their grandiose pronouncements. Few dare observe that Merkel and Sarkozy might as well demand the seas divide; the situation is out of their control, and their theatrics are all in service of percepotion management, i.e. to foster the illusion they still grasp some meaningful control over the situation (they don't) and the the situation is controllable by manipulation of perception (it isn't).

Merkel and Sarkozy's dog and pony show is perception management ripped right from the Federal Reserve's playbook. The ontological foundation of the Fed's playbook is this: the problem is all perception. If the great unwashed populace of debt-serfs perceives that all is well and secure, and the Mommy State has tucked them safely into bed, then they will once again start borrowing and spending without a care for either reality or the future.

This is a fundamental ontological error. The problems of the global economy are not based in perception, but in the reality of prices, balance sheets and income statements, vast concentrations of wealth and power, precarious systemic imbalances, ruthless exploitation, and command economies mismanaged by Central State/Bank policy and manipulation.

Sarkozy and Markel's absurdist theatrics--"we have a secret plan right here in our pockets"--are not just incredible, they are uncredible. How many more times will the global financial media fawn over the same idiotic comedy staged by haggard amateurs?

The day the global audience finally tires of the bumbling act of the Merkel and Sarkozy dog-and-pony troupe, then real solutions--writing off trillions of euros of uncollectable debt and illusory assets, breaking up the dysfunctional Eurozone, etc.--can proceed.

 

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Mon, 10/10/2011 - 06:49 | 1756768 papaswamp
papaswamp's picture

When are the people of Europe (and the US) going to get tired of being bank slaves? Too bad we don't function in a capitalistic market anymore...then there would be no such thing as TBTF.

Mon, 10/10/2011 - 07:03 | 1756778 TheLooza
TheLooza's picture

I was right when I predicted on Friday that this dirty slut would headfake and end red. 

Since I'm 1 for 1, I now have more credibility than most analysts out there who are 0 for lifetime.

This fucker is going to late day fade to red. You can trade that shit.

And btw, you must try two hookers at once.  Game changer, really.

 

 

Mon, 10/10/2011 - 06:50 | 1756770 GeneMarchbanks
GeneMarchbanks's picture

Getting old already. Anonymous can't erase the NYSE fast enough...

Mon, 10/10/2011 - 08:20 | 1756912 mvsjcl
mvsjcl's picture

Yeah. Site's still up. Perhaps waiting for the opening bell.

Mon, 10/10/2011 - 07:00 | 1756776 Cognitive Dissonance
Cognitive Dissonance's picture

The Uncredible Dog and Pony Show: Merkel and Sarkozy

Do me a favor. Stop rolling over and just be dead. Have some dignity for crying out loud.

Mon, 10/10/2011 - 07:20 | 1756812 GeneMarchbanks
GeneMarchbanks's picture

Dignity left the Europeans centuries ago. This will sink in... sometime next year. That's when the Molotov cocktails become the weapon of choice. It will, of course, be bullish according to Bob Pisani.

Mon, 10/10/2011 - 07:39 | 1756836 HD
HD's picture

It's not Pisani's fault...he's been exposed to dangerously high levels of Jim Cramer.  Pity the man. He's doomed.

Mon, 10/10/2011 - 07:00 | 1756777 TradingJoe
TradingJoe's picture

This dog and pony show will go on as long and until someone GETS REAL! Which won't really happen, too much fiat at stake for the algo owner!!!
Am certain WS KNOWS the real state of things, money to be made on the easy is just too tempting!

Mon, 10/10/2011 - 07:01 | 1756780 D.O.D.
D.O.D.'s picture

I don't care what kind of show it is, if Angela Merkel is in it, I'm paying to watch... mmmmm mmmm good...

Mon, 10/10/2011 - 07:43 | 1756847 TheFourthStooge-ing
TheFourthStooge-ing's picture

Don't miss what's coming next, my friend, because I know you'll love it: the Merkel and Sarkozy donkey show.

 

Mon, 10/10/2011 - 07:01 | 1756781 MiningJunkie
MiningJunkie's picture

I love the smell of bull markets in the morning....great to be long and strong with the presses operating on MAXIMUM.

Never underestimate the replacement power of stocks within an inflationary spiral.

Mon, 10/10/2011 - 07:04 | 1756788 chirobliss
chirobliss's picture

Today all is sweetness and light because on Friday Slovakia said no way, to the EFSF, and the market tanked.  Then today there was a commitee vote that recommended approval so the markets have gone into party mode but here is the full story...

 

A vote on Monday by the Slovak parliament's budget and finance committee recommending the full chamber ratify a plan to give more powers to the euro zone's EFSF rescue fund may have been invalid, the committee's head told reporters.

 

Jozef Kollar said that while a majority on the committee had voted for the measure, the committee later realised it needed one more vote in favour for the vote to be valid and asked the parliament's constitutional committee for an opinion.

 

The committee's recommendation is not binding for the full house, which will vote on the EFSF plan on Tuesday. Leaders of the ruling coalition were due to meet later on Monday to try reach an agreement to ratify an expanded mandate for the European Financial Stability Facility, the euro zone's main tool to fight the spreading debt crisis.

In other words, don't pop the champagne corks yet boys n girls!!

 

Mon, 10/10/2011 - 07:07 | 1756791 Gandalf6900
Gandalf6900's picture

We are so lucky to live in this world of coherent, uplifting and innovative societies held together with shit and debt...

Mon, 10/10/2011 - 07:46 | 1756851 TheFourthStooge-ing
TheFourthStooge-ing's picture

Shit and debt are the mortar of modern economics.

 

Mon, 10/10/2011 - 07:16 | 1756792 pacdm
pacdm's picture

It works markets up and have got Europe 2-3 more weeks.

We will get the same story out of the G20 meeting to.

It goes on and on.

Money makes the world go round BUT

The wheel of Debt is coming to a stop ( the world of debt ) 

 

Mon, 10/10/2011 - 07:16 | 1756806 yabs
yabs's picture

how can the markets fall for such crap

Mon, 10/10/2011 - 07:20 | 1756811 moriarty
moriarty's picture

Which is the dog & which is the pony?

Mon, 10/10/2011 - 07:25 | 1756820 Linus2011
Linus2011's picture

As probably none of you know: Berlusconi said during recently wiretapped phone calls "Merkel has an ass that fat so it cannot be fucked". Although Berlusconi is a criminal moron which runs italy he is probably right about that.

Merkel runs the CDU in insanity mode. Don't believe anything to come out of these numerous meetings. Things here in Europe will go its way to hell.

Mon, 10/10/2011 - 07:37 | 1756833 Volaille de Bresse
Volaille de Bresse's picture

"Dignity left the Europeans centuries ago."

 

Giving us a lesson? Wounded Knee, Hiroshima, My Lai, Guantanamo, Private Lynndie England and her Abu-Ghraib freak show... Shall I go on?

Mon, 10/10/2011 - 07:45 | 1756849 GeneMarchbanks
GeneMarchbanks's picture

Assuming I'm an American, eh? Carry on, I certainly won't defend the Yanks.

In your heart of hearts you know it's true.

Mon, 10/10/2011 - 08:04 | 1756876 Linus2011
Linus2011's picture

Peanuts in comparision to major european i.e. german fuck ups!

Mon, 10/10/2011 - 09:48 | 1757189 eurogold
eurogold's picture

Yes Germany f+*ked up in paying so much into this whole EU circus already.

Mon, 10/10/2011 - 07:41 | 1756842 supermaxedout
supermaxedout's picture

Its fun to see Mrs. Merkel operating on her full "wait and see mode".

She has no intention to do anything. She just waits till the French and others have nationalized their banks thus taking the burden of Germany to save these banks. Once the nationalization spree is over then Greece can go bankrupt and then the French and other taxpayers have to swallow the losses of their banks, now owned by the people. 

Lucky UK the BOE is just printing some more money. Poor French! The ECB is not starting to print for the troubled French government. So next thing: Downgrade of France and Belgium.

This stupid Merkel. Everything could be so easy. Just print money and everybody is happy, except the savers and the others who played by the rules. This thing could go on for ever like in Japan and nobody would be hurt except the ...

Mon, 10/10/2011 - 07:59 | 1756871 TheFourthStooge-ing
TheFourthStooge-ing's picture

I think that, behind the scenes, Merkel and Sarkozy are operating in "extreme panic mode". Next for Frau Merkel comes "full psychosis mode":

http://www.youtube.com/watch?v=_Z8JZnmW-fc

Auf Deutsch:

http://www.youtube.com/watch?v=tBzfDZ8lVoc

 

Mon, 10/10/2011 - 08:10 | 1756891 Linus2011
Linus2011's picture

this is BS. Merkel said in german television in 2008 "i guarantee for all german bank savings".

that means taxpayers have to pay for all bank accounts and insurance policies that never got a haircut like stock-holders.

this caused a lot of wondering at least by myself and friends and drove a lot of money into PM.

so inflation is basically a pretty fair & neccessary & unavoidable thing at least here in germany.

Mon, 10/10/2011 - 09:22 | 1757090 eurogold
eurogold's picture

Question: Why should the Germans be made to pay for the french banks? Or for anyone else's ongoing problems / incompetance? Haven't the Germans paid enough? Sorry but what Germany should be doing is to tell the rest of Europe to go F+*k themselves!

Mon, 10/10/2011 - 07:41 | 1756843 wang (not verified)
wang's picture

The chorus of hope and optimism from the pundits is loud this morning with only a few naysayers expressing skepticism. The timing is twofold, Dexia and G20.  The response will be a coordinated, leveraged, global dump of $4t of paper. Last Tuesday was March 2009

Mon, 10/10/2011 - 07:51 | 1756857 Wakanda
Wakanda's picture

Merk and Sark (and many others) are under very strict orders from their handlers to keep the balls in the air until next weekend.  Then all hell breaks loose.

The purpose is to maintain the status quo until certain long term cycles are completed.

7 days until Black Monday II

Mon, 10/10/2011 - 08:00 | 1756873 eddiebe
eddiebe's picture

Credit=debt=money. Wow genius.Til the slaves revolt. Then it's debt=hatred for the creditors+war and destruction.

Mon, 10/10/2011 - 08:02 | 1756874 somethingelse
somethingelse's picture

Wonder Twins power activate!!!  Form of a plan for a plan for a plan!

Mon, 10/10/2011 - 08:36 | 1756951 jbc77
jbc77's picture

Just more of the Twilight Zone...We have Euro banks folding up and collapsing and to this the market rallies and cheers?  This has been going on for a while, how is it that the markets in general haven't figured out this is just another helping of bullshit. This continues to be surreal. When my kids gets older I can sit them on my lap and tell them a story, "there was once a time when capital markets actually declined on bad news". Banks collpase, markets rally, this is just insanity and how can anyone trade this?

Mon, 10/10/2011 - 08:47 | 1756976 tomreagan
tomreagan's picture

In the FT article "Dexia Agrees to Belgium Bailout" there are several quotes that sum up the entire Eurozone mess:

1) Diagnosis of the wrong problem

"The forced divestment is the first step in the dismembering of the Franco-Belgian bank after it fell victim to a liquidity squeeze prompted by the eurozone debt crisis"

1a) Or is this the problem (in same article)

"Dexia's reliance on short-term funding from markets is ultimately the reason why it was forced to ask for state aid last week."

2) Doesn't matter, blame someone else

"Along with Pierre Mariani, current chief executive, he [former Belgian PM] blamed the pre-2008 management for saddling Dexia with short term debt."

3) Wash Rinse Repeat (with less firepower):

"France, Belgium and Luxembourg will jointly underwrite Dexia's financing needs up to 90bil EUR for 10yrs, in a repeat of 2008 when the three governments stepped in with 150bil EUR of guarantees to tide over Dexia after it ran into financing difficulties."....

4) The Rules of the Game must be adhered to or else:

"The staff of the head office will be offered jobs by the local subsidiaries being spun off."

Mon, 10/10/2011 - 09:16 | 1757007 eurogold
eurogold's picture

As someone who pays taxes in Germany, I can only say that from my observations.....the natives are getting restless. Angie's games and game playing will at some point result in the birth of an active far right movement. All that's missing is someone with some charisma to step up to the plate. You know, kinda like what happened after Weimar.

Mon, 10/10/2011 - 10:19 | 1757302 Cat On A Ledge
Cat On A Ledge's picture

Oh, getting religious are we?

Here's a cost-effective solution they can try:

1. At their next meeting, sit down and imagine a trillion € stash hidden deep within ECB's vault

2. Since something that is non-existing, cannot exist in reality nor in the mind

3. Therefore if they can perceive a trillion € stash in their minds (right down to the fine print), it must also exist in reality

4. If a trillion proves insufficient, take a nap and dream up some more!

 

Jokes aside, perhaps today's euro surge has as much to do with strong German data as their press release.

Mon, 10/10/2011 - 10:24 | 1757334 The Ram
The Ram's picture

"You know, kinda like what happened after Weimar."  Yep, the ghost of Adolph returns to a continent near you!

Mon, 10/10/2011 - 11:00 | 1757472 eurogold
eurogold's picture

I seriously dread the thought  / worry about that type of scenario. And yes I am bunkering my savings in PM's. Will that help? I doubt it.

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