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Guest Post: What's Lost With the Demise of the Euro? Only What Was Unsustainable

Tyler Durden's picture




 

Submitted by Charles Hugh Smith from Of Two Minds

What's Lost With the Demise of the Euro? Only What Was Unsustainable

Scaremongering aside, the demise of the euro does not end European integration. It only means that which is unsustainable has been relinquished and a return to stability is finally possible.

So the euro is doomed. Toast. History. This will lead to:

1. the end of civilization

2. the end of European integration

3. the start of new Dark Ages

4. the return to a sustainable reality

The correct answer is 4. The euro was an unsustainable, self-destructing extension of the integration that has long simplified trade, travel and work throughout the EU (European Union).

At the risk of over-saturating you with more euro-related material, here are the basics we need to keep in mind as the third act plays out.

A common currency seemed like a good way to simplify trade and lower transaction costs. As I noted yesterday in Some Heretical Thoughts on the U.S. Dollar, such "folk" convictions rest on "sole-source causation": in this case, that a single currency would only offer more benefits of integration because it lowered complexity and transaction costs.

The euro supporters forgot or ignored the primary purpose of national currencies: to account for differences in transparency, productivity, trust, money creation and risk between nations' economies and their Central Banks/States.

If you remove this means of accounting for these fundamental differences, then you have removed a feedback loop from a dynamic system, and thus removed an absolutely essential flow of information and transparency.

What you're left with is a system of lies, officially sanctioned opacity, misinformation, disinformation, cooked books, artifice and propaganda, i.e. exactly what Europe has become. With the euro, there was no way for the system to account for thr vast differences in debt loads, credit risks, transparency, productivity and a dozen other fundamentals that are expressed in foreign exchange rates.

By all accounts, Greece and Italy have painfully dysfunctional national finances and political Elites resistant to admitting the dysfunction is unsustainable. Once those nations revert to national currencies, then their currencies will reflect the market's assessment of their economy and their national/Central Bank policies.

The same will hold true for all the other EU member states: the market will shift through the various metrics and feedback loops and reach an equilibrium around the value of each nation's currency.

Profligate, over-indebted nations with dysfunctional Elites and systems plagued by political corruption and gridlock will see their currencies devalued and the interest rates they must pay to borrow money raise to the point that borrowing will no longer be an option to escape the consequences of profligacy, and the devalued currency will preclude buying imports from strong-currency nations.

These feedback loops are essential to providing the citizenry and their economy with the transparency and information they need to adapt to reality. The euro has erased all that vital information, leaving only interest rates as the sole expression of differences between economies.

Interest rates are simply not a rich enough source of information and market feedback to express the differences between national economies; the global markets need the information and feedback loop provided by currencies.

As I attempted to describe yesterday, currencies are not explicable with "sole-source causality" or "folk" understandings; they are distillations of numerous information feeds and feedback loops that only a transparent market can generate.

I have little doubt the euro is being held aloft by cloaked Central Bank intervention; the Elites are desperately attempting to cloak the system's intrinsic dysfunction and stop the market from repricing the euro based on the inevitable return to national currencies.

Rather than fear this return to transparent feedback, we should welcome it and hurry it along. Systems which cut off feedback and choke transparency with artifice and lies are doomed to implode. If Europe ditches the failed "folk" experiment called the euro, then the process of recognizing and pricing dysfunction can begin, and the stability that only transparency and feedback can provide will soon return to the EU.

This may sound counter-intuitive, but it's the only way forward to a sustainable, stable reality. The immense hubris of Europe's dysfunctional Elites precludes their recognition that reality eventually trumps artifice and intervention. Their feeble, addled cries cannot turn back the tide, even if their bloated self-importance is infinite.

 

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Tue, 11/22/2011 - 11:24 | 1902484 BeerGoggles
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yeah yeah, euro will never collapse. this is a buy signal.

Tue, 11/22/2011 - 11:27 | 1902496 High Plains Drifter
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cramer said this morning that netflix was a bad stock..........

Tue, 11/22/2011 - 11:30 | 1902512 Spastica Rex
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That's good, right?

Tue, 11/22/2011 - 11:31 | 1902516 High Plains Drifter
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he was saying last night on his mad money show that it was not a good time to be in the markets....

Tue, 11/22/2011 - 11:43 | 1902548 hedgeless_horseman
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What's Lost With the Demise of the Euro?

I'll go with answer number 5 (and TurboTax Timmy FTMFW).

5.  most of the OPPORTUNITY RISK of investing in U.S. Treasuries and the USD

 

 

Tue, 11/22/2011 - 11:46 | 1902584 Ahmeexnal
Ahmeexnal's picture

Merkel threatens war unless Germany is handed over taxation in Greece, Italy, Ireland (and all of europe to follow):

http://euobserver.com/19/114075

http://lemonlimemoon.blogspot.com/2011/10/merkel-threatens-war.html

Historically, the order was reversed.  Countries went to war, and if they won, the defeated would then and only then pay tax to their new masters.  Time for Italy to stand up and fight!

Tue, 11/22/2011 - 11:50 | 1902594 hedgeless_horseman
hedgeless_horseman's picture

 

 

Time for Italy to stand up and fight!

I will bet Italians can remain passive longer that Europe can remain solvent.

Grandpa fought the Italians (on their own soil) and they weren't much trouble for him and his friends.  Frankly, the Italians haven't fought worth a damn since before the Vandals.

Tue, 11/22/2011 - 11:53 | 1902616 redpill
redpill's picture

Why don't they replace the Euro with gold and silver? Then we can stop playing Pretend Economics.

Tue, 11/22/2011 - 12:03 | 1902649 Hard1
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Has Angela received this post? She seems the one that would benefit the most from leaving and the least interested in doing so.

Tue, 11/22/2011 - 12:25 | 1902726 Manthong
Manthong's picture

"a system of lies, officially sanctioned opacity, misinformation, disinformation, cooked books, artifice and propaganda,"

Anybody got a better way of describing the US Federal Reserve Banking System?

Tue, 11/22/2011 - 12:03 | 1902650 Hard1
Hard1's picture

Has Angela received this post? She seems the one that would benefit the most from leaving and the least interested in doing so.

Tue, 11/22/2011 - 12:23 | 1902715 steve from virginia
steve from virginia's picture

Europe is broke, the euro is a way for Europeans to fool themselves into believing they aren't.

Yes, stability is at the other end of the tunnel. What kind? Getting there is a bitch, retracing the usual 'hate and kill other Europeans for fun' territory the Europeans seem unable to escape.

CHS leaves out the euro as an energy hedge. He also leaves out the euro as a means to amplify German mercantilism, creating a captive market for German goods (automobiles).

The other energy hedges -- asset price bubbles, excess credit creation, inflation of finance sectors over manufacturing -- have all proven to be failures. Energy hedges are also ways for Europeans and the rest (Americans) to fool themselves into believing that infinite economic 'growth' and prosperity can be built on a foundation of capital exhaustion.

The outcome of Euro-collapse -- which appears inevitable -- is a car-free Europe. Add planes, skyscrapers, high-speed rail, 'modern' military: Germany's customers are already bankrupt and German trade is faltering. Exit the euro leaves the 'Peans' rooting around for dollars.

As the customers fail, the risk will seek Germany unraveling its economy. What the analysts miss is that there is no 'safe haven' anywhere in any euro-zone. The group of states missed the opportunity to federate. The light at the end of the tunnel is a reactor melting down.

Gold currency is a possibility, the problem is the waste, not the currency. Here is the stability of the graveyard: there is nothing left but the conservation, like it or not.

Tue, 11/22/2011 - 12:56 | 1902794 TruthInSunshine
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None of this is about the euro, dollar, yen, etc.

Debt is and has been the world's currency for two and a half centuries now, we're using debt as money because of fractional reserve banking, and it truly is as simple as that.

Fiat is one of the most powerful tools of economic, social and political control ever developed.

Allowing private entities to have a legal monopoly on producing the only recognized currency, conjured from thin air, at zero cost basis to the fractional reserve alchemists (but at great, great cost to alleged sovereign nations),  which can then be use to contol political, economic and social currents (currency is the way things get done and people/lawmakers/institutions get corrupted and purchased), and with which they can literally make infinite amounts of return and seize inherently valuable real assets (whether the loan made in the fiat conjured from thin air and leveraged up many dozens of times, or even if most of the loans default - what does it matter as the cost of creating the fiat and loaning it out was $0, and if even a fraction of loans are repaid, it's pure profit, not to mention that the securitized loans that go bad result in the harvest of REAL & INHERENTLY VALUABLE ASSETS - they want those loans to default), allows for the greatest and most prolific Ponzi Scam, all supported and backed by the alleged sovereigns that are aupposed to have a moral social contract with their citizins protecting them from such acts of rape and tyranny, of all time.

Anyone who thinks that my words are hyperbolic doesn't understand the gravity of how fractional reserve banking genuinely does put honest and capable men in positions of having to beg for food in order to ward off starvation due to the practices of the Money Masters.

Never go into debt unless you've decided to gamble it all and put your very life and that of your children in the hands of the Money Masters.

It's time Zero Hedge does a refresher course on the world's greatest legalized Ponzi Scam, to wit, Fractional Reserve Banking (aka Modern Money Mechanics), though Zero Hedge is among the few places online that frequently puts the ultimate scam that is frb front and center.

*p.s. Groupon bagholders are seeing their magnificent equity asset fall back towards the IPO price today - in normalized, non-Bernank'd markets, that equity would already be trading far closer to the its real, inherent value of $0 fiatskis.

Tue, 11/22/2011 - 13:21 | 1902968 JoeSexPack
JoeSexPack's picture

Excellent post.

 

Below video details the FED & fractional reserve banking scams:

 

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

 

 

This vid is a funny animated short on the same subjects:

 

http://www.youtube.com/watch?v=ZPWH5TlbloU

 

Enjoy, & stack silver/gold.

Tue, 11/22/2011 - 13:40 | 1903080 eureka
eureka's picture

Amen, Truth! And CHS is a tool and US Empire is the biggest FRB fiat mafia in the history of the world, who depends on EUR destruction - to enable continued USD/Pentagon dominance.
One FRB FIAT uber alles: USD, USD, USD...
THAT was and is the plan.

Tue, 11/22/2011 - 11:53 | 1902619 Ahmeexnal
Ahmeexnal's picture

It gets worse with every minute:

Berlin issues tax demands to Belgians deported to Germany in WWII to work as slaves for Nazis

http://www.dailymail.co.uk/news/article-2064266/Berlin-issues-tax-demand...

Belgians deported to Nazi Germany in World War II to work as slaves for the Third Reich have now received tax demands from Berlin.

Belgium's finance minister Didier Reynders has vowed to confront Germany over the 'morally indefensible' tax demands which have been arriving in the mailboxes of elderly war survivors over the past few weeks.

'It is shocking that people who during World War II were forced to work by the Nazis have now received tax demands from the authorities related to the compensation eventually paid for that work,' he said.

 

And the eurosheeple are still asleep!

 

Tue, 11/22/2011 - 12:36 | 1902755 palmereldritch
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The Banksters will always take a piece of anything they can get their hands on.  They would tax the air we breathe if they could, er...wait

Tue, 11/22/2011 - 13:16 | 1902922 i-dog
i-dog's picture

So, the UK and other EU presstitutes are ramping up the xenophobic pressure on Germany. Who wouldn't have expected it?

BTW, your other link is already a month old.

Tue, 11/22/2011 - 13:35 | 1903051 Ahmeexnal
Ahmeexnal's picture

Or it could be 70 years old.

Or it could be one hundred years old.

"Uber Alles"

When you are carted away to a concentration camp, maybe... just maybe, will you regret not taking heed and rising up against them.

 

 

Tue, 11/22/2011 - 14:06 | 1903210 i-dog
i-dog's picture

...*sigh*...

Tue, 11/22/2011 - 14:35 | 1903352 the tower
the tower's picture

What do the "Germans" in your trailer look like? How old are you actually?

 

You probably don't even have a passport, moron.

Tue, 11/22/2011 - 14:31 | 1903325 the tower
the tower's picture

give it up already, it's so obvious you hold on to any little piece of anti-europe propaganda...

Tue, 11/22/2011 - 11:37 | 1902550 whstlblwr
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THEY YIDS ARE COMING TO GET YOU!

Tue, 11/22/2011 - 11:45 | 1902586 High Plains Drifter
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oh poor baby. still got your panties in a wad over that yiddy conversation , yesterday morning.........harde har har har.........

Tue, 11/22/2011 - 11:47 | 1902595 whstlblwr
whstlblwr's picture

Wipe the semen from the gun, pervert. The Yids know what you do, they watch you. You better hurry and hide.

THE YIDS ARE COMING TO GET YOU!

Tue, 11/22/2011 - 11:57 | 1902633 High Plains Drifter
High Plains Drifter's picture

is that all you got?

Tue, 11/22/2011 - 12:02 | 1902648 whstlblwr
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THE SUPER YID IS COMING TO GET YOU!

Tue, 11/22/2011 - 14:33 | 1903337 the tower
the tower's picture

give it up already, it's so obvious you hold on to any little piece of anti-jew propaganda...

 

r u a religion? there is no god. period.

 

r u a race? then you should keep your race clean, i.e. inbreed like hell.

Tue, 11/22/2011 - 11:45 | 1902587 Socratic Dog
Socratic Dog's picture

That would be a buy signal.

Tue, 11/22/2011 - 15:10 | 1903550 Robot Trader's ...
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If Cramer said this is not a good time to be in the markets, then there is no reason to watch him, right..??

Leonard the Wonder Monkey may eventually be the only one watching Cramer.  

 

Tue, 11/22/2011 - 12:23 | 1902714 FMR Bankster
FMR Bankster's picture

Yeah, tough call now. Facts indicate you should be out or short but with such a strong contrary indicator I'm not sure what to do.

Tue, 11/22/2011 - 12:06 | 1902546 whstlblwr
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I love HPD

Tue, 11/22/2011 - 11:57 | 1902632 Momauguin Joe
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As always, he's ahead of the curve.

Tue, 11/22/2011 - 11:52 | 1902607 The Big Ching-aso
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"the return to a sustainable reality" in context...............................

Is this anything like a sustainable nuclear reaction in your rectum?

 

Tue, 11/22/2011 - 12:30 | 1902742 SheepHerder
SheepHerder's picture

Yeah what is "sustainable" mean?  When the markets level out there are going to be some resentful poor countries in a few of the former EU countries (i.e. Italy, Greece, etc.).  How long before old pre-WWII and pre-WWI resentments start cropping up and the nationalistic war drums start beating? 

Within a decade, I'd bet Europe is at war within along with many other countries across the globe.  I'd expect a Southeast Asia theater with our buildup in Austrailia being recently announced and a Middle East theater with the continued conflict in the Middle East given countries like Syria, Egypt, Israel and Iran. 

History has example after example of how monetary and economic woes turn into armed conflicts.  If by "sustainable reality" the author means WWIII, then sure.

Tue, 11/22/2011 - 11:59 | 1902639 New American Re...
New American Revolution's picture

Dude,   Look at the currencies.   The FED is already in there floating the euro in a kind of QE III and everyone is syncronized swimming in matched devaluation of their currencies that creates this stastasis of a narrow trading range in the FX.   That's why they had Corzine screw MFG and tie up a lot of speculators and run a bunch more out.   The MFG money is there, well, its over at JPM and Hymie Dimon is swimming in it.

They have a plan for the eventual break up, but it will be controlled and they'll call it a 'gold standard', but it won't be a classical and true gold standard.   It will be a phony gold standard and really doesn't mean shit.  It just means that they'll keep doing what they're doing but it will be tougher to own gold.  

So fuck all you peons, what are you going to do about it?    How about a New American Revolution?

Tue, 11/22/2011 - 12:07 | 1902658 SRSrocco
SRSrocco's picture

I SAY ITS ALL 4 OF THOSE OUTCOMES

People need to realize that in order for a system to allow "INTEREST" on money, the ECONOMY MUST BE ABLE TO GROW.  There is no interest in natural ecological systems....it all goes back into the environment.  Man with his short-term wisdom has created the ability for interest to occur due to this relationship:

MAN'S INTEREST ON MONEY = +1

NATURE = -1

As we head into RESOURCE SCARCITY and ENVIRONMENTAL COLLAPSE (such as only 10% of the biomass of the great oceans remains), the abilty to charge interest on money will disappear.

We will be entering into a new stage of BARTERING and LOCAL ECONOMIES.  The Dollar and the Euro is dead.  The Euro is located on the end of the Titanic that is now sinking... The Dollar is being pushed higher as the passengers on the Grand Fiat Ship are running towards it to keep from drowning.  This is a last ditch effort to stay alive in a rapidly sinking system.

So today we have to be patient while listening to inept politicians and leaders blunder through the worst collapse in human history by offering pathetic superficial solutions.  We are much closer to a complete collapse of civilization than most realize.

God Hath a Sense of Humor....

 

Tue, 11/22/2011 - 12:25 | 1902727 jomama
jomama's picture

actually, most of the biomass in the oceans are microbes.  are you telling us that only 10% of the microbe population remains?

i'm not sure if i buy that one...

Tue, 11/22/2011 - 12:39 | 1902763 SheepHerder
SheepHerder's picture

+1  All the financial and economic problems are that simple.  In a closed finite system such as Earth, infinite economic production and growth models that rely on the planet's natural resources are foolish.  People can argue economic and monetary models until the cows come home, but at the end of the day there are limited economic inputs (i.e. oil, copper) supporting an economic mindframe of infinite output to service a debt based monetary system.  Zerohedge's frequent guest post author Chris Martenson goes in depth about this in his "Crash Course" lectures over at chrismartenson.com. 

Tue, 11/22/2011 - 13:34 | 1903048 Peter K
Peter K's picture

But the universe is infinate. I think your problem is that you are not thinking BIG:-)

Tue, 11/22/2011 - 13:52 | 1903139 azusgm
azusgm's picture

Hmm...bartering and local economies...

Sounds good to me.

Tue, 11/22/2011 - 11:26 | 1902485 Popo
Popo's picture

I was sort of hoping for option 1.

Tue, 11/22/2011 - 11:27 | 1902497 pupton
pupton's picture

We already have option number one in most of our inner-cities, with roving mobs of "young people" looting and pillaging as if they were vikings.

Tue, 11/22/2011 - 15:12 | 1903560 Cathartes Aura
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isn't it admirable how the "young people" like to emulate their heroes, the "older people" at the top, looting & pillaging as if they were Gods.

of course, what is liberated by the young is a mere pittance when compared to their role models.

Tue, 11/22/2011 - 11:25 | 1902487 pupton
pupton's picture

So with the Euro gone, how will the USD index value the USDollar?  Seriously, will gold be the new measuring stick? 

Tue, 11/22/2011 - 11:39 | 1902559 agent default
agent default's picture

They can always readjust the basket of currencies.  But The Euro is to certain extent acting like an immediate benchmark for Dollar value.  But since most of the new currencies will probably be softer than the Euro, expect the Bernank to really go printing crazy.

Tue, 11/22/2011 - 11:27 | 1902492 HD
HD's picture

With all due respect Tyler, you overlooked:

5. Dogs and cats living together...Mass hysteria!

...And when it happens - who you gonna call?

Tue, 11/22/2011 - 11:31 | 1902511 pupton
pupton's picture

Janet Napolitano?

Tue, 11/22/2011 - 12:42 | 1902769 The Big Ching-aso
The Big Ching-aso's picture

 

 

I had a very disturbing dream recently.  

Janet Reno was undressing Janet Napolitano.........................

Tue, 11/22/2011 - 12:35 | 1902750 Ahmeexnal
Ahmeexnal's picture

Ghostbusters!!!!

Tue, 11/22/2011 - 11:26 | 1902493 High Plains Drifter
High Plains Drifter's picture

Georg Wilhelm Friedrich Hegel at work here.   if the euro is lost, then it is lost by design and what is the reason for this?  world currency?  

Tue, 11/22/2011 - 11:31 | 1902517 GeneMarchbanks
GeneMarchbanks's picture

Hegel was a ponce. Read Schopenhauer.

Ask people in Namibia if they are ready for a 'new world currency'?

Tue, 11/22/2011 - 11:33 | 1902525 agent default
agent default's picture

World currency?  As in world government?  Like global domination?

Yeah Ok, Alexander the great failed, Napoleon failed,  Hitler (epic) failed, global proletariat revolution was a flop.  A bunch of wimpy suits will not succeed.  If the the bankers/elites don't give it  a rest and don't let go, all they will get is one world revolution and one  Mad Max world.  Good luck them surviving in that environment.  To tell you the truth I would prefer a Hellraiser world though.  I want to be Pinhead.

Tue, 11/22/2011 - 11:35 | 1902537 Dr. No
Dr. No's picture

There is a world currency today: oil and gold.  With either of these two, you are set, no matter where you are.

Tue, 11/22/2011 - 11:39 | 1902562 Ahmeexnal
Ahmeexnal's picture

sex has been the oldest currency in the history of mankind.

Tue, 11/22/2011 - 11:59 | 1902640 Smiddywesson
Smiddywesson's picture

And you don't get any without gold.

Tue, 11/22/2011 - 12:24 | 1902545 pupton
pupton's picture

Gold and silver are the world currency.  The world just forgot.

Tue, 11/22/2011 - 11:44 | 1902578 whstlblwr
whstlblwr's picture

@ High Plains Drifter,

Hegel, a YID? He control all the world currency from past, it is his fault that you flunk from ACC. Because YID controls you, makes you idiot, but the stink is your own fault.

THE YIDS ARE COMING TO GET YOU!

Tue, 11/22/2011 - 13:25 | 1903000 i-dog
i-dog's picture

Take your fight outside, you two. We don't want to hear it.

Tue, 11/22/2011 - 12:52 | 1902806 falak pema
falak pema's picture

Cause and effect. The world has gone global since 1990. Under US aegis. Now the cycle is coming to maturity. Only corporations are global, not governments and people. So who calls the tune and who then dances? 

Its the Corpocracy that calls the tune. Its not going to end. Far from it; we will be even more global as Internet and life styles mean we can eat, sleep and fukk at a drop of a hat from Montezuma to Hu flung dimsum land. As the global problems like ecological challenge and commodity/labour arbitrage world wide is beyond nation state governance, it has to be world government, as renewed people's power will require global solutions. It took three hundred years between Columbus's voyage starting American existence, subsequent suck-in into euro globalisation, before the USA became a nation and four hundred years before it could play ping pong as an equal to Britain, France and Germany. So politics always follows the commercial entrepreneur in the change process. We are there in the technology shift that has led to global integration of economies.

If the current corpocracy and globalisation dies in flames, we may be back to nation state toe scraping. But that is not the current corporate impetus and the politicians are following led by the money in their purses, paid slaves to gods of global change. I don't think once we have started this we will ever go back to nation state preeminence. Can't put the genie back into to the bottle. Athens led to Rome. ROme led to Europe...etc.

Tue, 11/22/2011 - 13:48 | 1903073 i-dog
i-dog's picture

Abject nonsense. The Roman hegemony failed, as have all other attempts to merge nations: USSR disintegrated; Yugoslavia separated; Wales and Scotland would still like a divorce from England; BC and Ontario would like to be rid of Quebec; Texas and California have little in common; Tuscany doesn't really want to be sleeping with Sicily (and vice-versa);.........

There are many more nation states now in the UN than ever before ... all because natural human tendencies are toward tribal and local cultures. Only the unnatural constructs of the WTO and state-sanctioned corporations are keeping the globalist 'Unions' together at the point of a gun. There are numerous secessionist movements around the world, but only one globalist one (and that is being promoted by just one hidden hand).

Even the large multinational corporations would go the way of the dodo without the guns of the UN, NATO and the US protecting them. China certainly doesn't want to merge with anyone else ... they just want to trade as one autonomous and homogeneous culture with other autonomous and homogeneous cultures. So, in their hearts, do the Germans.

Diversity and specialisation are the natural order.

Tue, 11/22/2011 - 13:56 | 1903124 falak pema
falak pema's picture

THat is the current trend. I do not adhere to it personally. But this is "where we are" as dictated by TPTB and where "they would like to take us". They have all the power and we know it.

The Jacques Attali thread above is basically saying the same thing. Its one thing saying your beliefs annd what you hope will happen, and another sayng "where the current power structures are taking us". The second is unemotional reasoning. Just saying. 

The Roman Empire did fail, after five hundred years, the Soviet union also after seventy years. Etc. But you can't stop powerful people from doing what they want to do if they think they can get way with it. As they "bestride the world like a colossus". The US Oligarchical structure is now there. ALL IN.  Try stopping them. Only their own failed impetus will stop them; if they end up like Madoff. But right now they will print to infinity to save the day. They OWN the money line and all the private profits. WE own the debts.

Bottom line for those who want to resist : know your enemy.

Tue, 11/22/2011 - 14:00 | 1903173 i-dog
i-dog's picture

The US is not behind this globalist push. They are a pawn (the mercenary army) and the prominent US leaders that are pulling the strings in the US have an allegiance to a power that is antithetical to the US citizenry.

The globalists will fail this time [again]. The disintegration of the EU at this time was not in their plans. In fact, they were hoping to extend it to cover Eastern Europe and North Africa while simultaneously demolishing the US as a viable nation. Now they are scrabbling for a Plan B (including Putin now pushing for an Eastern Union to encompass those former Soviet states that were previously expected to join the EU).

They will, as you say, print to infinity ... but their dream is falling apart, even as we speak. And good riddance to it.

Tue, 11/22/2011 - 14:29 | 1903312 falak pema
falak pema's picture

The US Oligarchs are the ones I refer to : the 1% or the 0.1% more likely. Not the citizens. You know that.

So Its US oligarchy that designed and built the global model. They own it. I don't see anyone capable of resisting to them. The current melt down is due to excessive greed and power going hand in hand.

But their ability to kick the can, privatising profit and socialising debt is unlimited, or nearly so, until it collapses. When will it collapse...maybe in five, maybe in ten maybe in twenty years.  

We don't know the time line as we can't see a challenger to their power. China is part of it. 

Tue, 11/22/2011 - 11:26 | 1902494 agent default
agent default's picture

I don't understand why everybody is so terrified of the end of the Euro and the ECB.  Europe was there before the Euro and Europe will be there after the Euro, and probably better off.  And yes the US will also be better off without the FED.

Tue, 11/22/2011 - 11:29 | 1902504 HD
HD's picture

True - when Nixon replaced the US dollar with monopoly money - no one even blinked.

Tue, 11/22/2011 - 11:58 | 1902544 agent default
agent default's picture

They didn't realize or feel the consequences back then.  Currency debasement can be nearly imperceptible in the first phase.  The masses will only react to immediate events or fast/violent changes to their environment.  Which tells me they are cold blooded, like frogs.

Tue, 11/22/2011 - 12:06 | 1902662 Smiddywesson
Smiddywesson's picture

It's a whole lot easier to make a monetary decision than it is to extricate oneself from the downstream repercussions of that decision.  (Leaving the gold standard is a great example.)  People will feel the pain when the Euro fails. There's no easy way out of this. 

Tue, 11/22/2011 - 13:15 | 1902667 LawsofPhysics
LawsofPhysics's picture

Mainly because the NWO (U.N., IMF, NATO) was setting up shop in America (New York N.Y. to be precise) and the sheeple were under the impression that by having the capital of the world and the ARMY of the NWO, they would somehow benefit.  To a certain extent, they have.  Now that it is time to pay the piper, let's see how that goes.  Same two choices that every single person born into this world has made throughout history.  1- accept that the promises made in your debt slavery will be delivered or 2- accept that no one can guarrantee your health and well except you.  Unfortunately this also requires that you accept the responsibility for poor choices and recognize the true value of your labor such that you can provide for yourself, family, commmunity and company you keep in general.

Tue, 11/22/2011 - 14:39 | 1903372 TruthInSunshine
TruthInSunshine's picture

agent default: I don't understand why everybody is so terrified of the end of the Euro and the ECB.  Europe was there before the Euro and Europe will be there after the Euro, and probably better off.  And yes the US will also be better off without the FED.

 

But....but.....but....

....I was told that Iceland was struck by a massive meteor creating a mass casualty event when they defaulted!

Is this not the case?!!!

Tue, 11/22/2011 - 11:28 | 1902500 GMadScientist
GMadScientist's picture
  • The end of civilization

Along the Med, anyway.

 

  • The end of European integration

And a lot of sweetheart deals for farmers and support of trade.

 

  • The start of new Dark Ages

Isn't that just repeating the Civ prediction from above?

 

  • The return to a sustainable reality

Are you new here? You know we're talking about humans, right?

 

Tue, 11/22/2011 - 11:32 | 1902521 Spastica Rex
Spastica Rex's picture

And I thought growth was the goal, not sustainability.

Tue, 11/22/2011 - 11:45 | 1902577 falak pema
falak pema's picture

growth is the goal to achieve entry in good status, as dictated by symbol; then when the kitchen gets steamed, she cries out, its hot but stay the distance if you want me to call you 'my man'. Sustainability then becomes the 'open sesame' to detente. You got part one right. That in itself is encouraging, given the state of things in the gender divide. Rinse and repeat please. We are talking about 'human reality'.

 

Tue, 11/22/2011 - 11:31 | 1902503 Landotfree
Landotfree's picture

All system based on the loaning and borrowing at a rate of interest are doomed to collapse.  Which is why they keep collapsing.  

110+ million died last time, this time I am willing to wager 1-2 billion.  

Chances are not the end of civilization just yet, unless nukes are used.

"The return to a sustainable reality"

Ha ha, whoever posted that must wear rose tinted glasses and have a unicorn in the back yard.  I agree with GMadScientist on this one.

 

 

Tue, 11/22/2011 - 12:15 | 1902689 Smiddywesson
Smiddywesson's picture

Nukes will be used, just hopefully not to knock down buildings and poison the environment.  Electro Magnetic Pulse weapons were one of the most significant inventions of the last century and they went virtually unnoticed.  Now that we live in an electronic society with our food stores hundreds of miles away from our people, EMPs will take care of those billions quite handily.

The end of civilization talk assumes we have ever had some sort of steady state civilization.  However, if you examine history, civilization is anything but a steady state.  We are lemmings.  We build it up only to knock it down, over and over again.  It's been a long run, but it's time to kick over the sand castle again.

Tue, 11/22/2011 - 12:22 | 1902704 jomama
jomama's picture

so who's gonna maintain the 441 active nuclear reactors around the world and their spent fuel?

the surivivors?  if not, then it's game over for all sentient beings on this planet in less than 100 years.

Tue, 11/22/2011 - 12:29 | 1902734 Landotfree
Landotfree's picture

All possibilities my friends, we'll see how it turns out.   Whoever wrote that article is going to find out first hand what a collapsed credit system will do. 

Tue, 11/22/2011 - 12:36 | 1902754 dark pools of soros
dark pools of soros's picture

less than 100 years??  so we never get to run out of oil??   woohooo!!!    take that peak oilers!!

Tue, 11/22/2011 - 12:49 | 1902800 fuu
fuu's picture

Just look at how many of them are on rivers and lakes. Minnesota has one right in the Mississippi River and another in a tributary. Wisconsin has two right on Lake Michigan and another on the Mississippi.

Tue, 11/22/2011 - 11:29 | 1902509 oogs66
oogs66's picture

great article...if we could stop the bankers from convincing the politicians that it is worse than it is, we would all be happier

Tue, 11/22/2011 - 11:33 | 1902527 Spastica Rex
Spastica Rex's picture

No need, bourbon works fine.

Tue, 11/22/2011 - 11:31 | 1902514 imsaul0968
imsaul0968's picture

For those of you who invest in an IRA or for long term goals, theres a better approach than buy,hold,hope. Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is a much more logical approach. And missing the major drawdowns is the only way to help ensure meeting your goals.  If you are interested in investing in a portfolio that tactically invests in equity and safe haven baskets via ETF's automatically, please email me at:

eclark@breakaway-partners.com

and I'll add you to the weekly market commentary & portfolio update distribution list.  Its free to add you and you can follow along our model and our views.  We have been RISK-OFF since 6/30 so have missed all this wicked volatility. Currently invested in short duration treasury baskets as flight to safety drives interest in our debt. 

Tue, 11/22/2011 - 11:34 | 1902532 Spastica Rex
Spastica Rex's picture

This is getting annoying.

Some sysadmin needs to shut this account down.

Tue, 11/22/2011 - 11:43 | 1902580 stop.snitching
stop.snitching's picture

Tyler please revoke Saul's membership!!!

Tue, 11/22/2011 - 12:17 | 1902696 jomama
jomama's picture

are you seriously calling for moderation on ZH?

why.

Tue, 11/22/2011 - 12:30 | 1902738 Max Hunter
Max Hunter's picture

There is a difference between moderation of comments and filtering spam.. Do I really have to explain?

Tue, 11/22/2011 - 13:01 | 1902847 dark pools of soros
dark pools of soros's picture

bring back the CAPTCHA!!

Tue, 11/22/2011 - 12:18 | 1902698 Smiddywesson
Smiddywesson's picture

Here, here.  Saul could become a contributor and prove himself, but he has chosen to annoy us with his unpaid for commercials.   Boot em

Tue, 11/22/2011 - 12:29 | 1902733 Spastica Rex
Spastica Rex's picture

His exact comment above is getting posted in robot like fashion all over ZH. That's spamming, plain and simple.

Tue, 11/22/2011 - 13:30 | 1903028 dark pools of soros
dark pools of soros's picture

isn't this how MadHedgeFundTrader started his illustrious career ??

Tue, 11/22/2011 - 12:29 | 1902735 pupton
pupton's picture

Yeah, Graham Summers sucks but at least is on the up and up about selling his BS opinions.  This guy is just a spammer who accidentally made it through the initiation process by deceiving the Tylers.  So he's good at math and persistence, great.  Does that mean we have to be subjected to his advertising in the comment boards?  It's not "moderation", it's keeping the comments to genuine commenters and not scumbag spammers.  If ZH wanted this in their board they wouldn't have any kind of initiation process, they'd just let everyone pcik a screen name and start posting.  Just my two cents.

Tue, 11/22/2011 - 11:34 | 1902533 SheepDog-One
SheepDog-One's picture

Piss off troll!

Tue, 11/22/2011 - 11:40 | 1902554 pupton
pupton's picture

How about everybody just sign this deuche's email up for spam all over the damn internet and teach him to spam ZH?  Bomb the shit out of his email until it is dead!

http://www.ehow.com/how_6877466_register-email-address-spam.html

 

Tue, 11/22/2011 - 12:07 | 1902582 fuu
fuu's picture

I think calling him and explaining why he sucks is funner.

Breakaway Partners, LLC   1513 9th St  Santa Monica, CA 90401-2786. United States Phone: (310) 422-9001.

Ask for Eric M. Clark or Robo whichever.

Tue, 11/22/2011 - 12:43 | 1902776 FreeNewEnergy
FreeNewEnergy's picture


For those of you who actually have any money left, theres a better approach than buy,hold,hope. Stocks suck wind, specifically the momo stocks that Cramer likes and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is PRACTICALLY IMPOSSIBLE. And missing the major drawdowns is the only way to help ensure you'll blow your brains out.  If you are interested in investing in a portfolio that is a sure-fire way to lose all your remaining dough, take your first-born as collateral and help the eleites via ETF's automatically, please email me at:

eclark@breakaway-partners.com

and I'll add you to the weekly market commentary & portfolio update distribution list. I will also suck your dick every hour.  Its free to add you and you can follow along our model and our views.  We have been RISK-OFF since 6/30 so have missed all this wicked volatility but have been giving good head since 2004. Currently invested in short dick up my arse with treasury baskets, unicorn harnesses and glowing farts as flight to insanity drives interest in our debt, which will be forgiven, amen.

Just had to.

Tue, 11/22/2011 - 11:35 | 1902530 SheepDog-One
SheepDog-One's picture

Whats lost with the demise of the Euro? A shitload of banker elites, up in smoke, and thats ALL that matters in this world. 

Tue, 11/22/2011 - 11:36 | 1902540 Spastica Rex
Spastica Rex's picture

And really - what do bankers even care if all the leaders are their bagmen anyway? Do they need a Euro? I doubt it.

Tue, 11/22/2011 - 11:35 | 1902539 Big Corked Boots
Big Corked Boots's picture

IMHO - #4 is correct, however, in order to preserve the status quo, the PTB will make certain there is plenty of 1, 2 and 3.

Tue, 11/22/2011 - 11:36 | 1902541 mess nonster
mess nonster's picture

Yes, it is Hegelian. The economic "collapse" is designed destruction. All destructive propecies can come true if certain people work for the destruction that was prophesied. Communist Manifesto- coming true, but only by design. One World Goverment centrally-plannned global economy,  is just-about-here.

Tue, 11/22/2011 - 11:48 | 1902596 SMG
SMG's picture

You might be right, but I hope you are wrong.   I for one am not going to roll over and submit to a global scientific dictatorship, now if I could just convince my fellow citizens not to submit to a global dictatorship either.

Tue, 11/22/2011 - 12:00 | 1902643 LawsofPhysics
LawsofPhysics's picture

"I for one am not going to roll over and submit to a global scientific dictatorship"

 

Pssst, dude, if you actually pay your taxes then you already have.

Tue, 11/22/2011 - 13:01 | 1902783 JR
JR's picture

It’s interesting that most socialist theory is based on the desire to transfer wealth to a tiny minority of the financial elite.  Take away the U.S.A. superpower bully club wielded by the international banking cabal and they are helpless in their quest for world economic and political control. Ron Paul, if elected, would do just that and that is why in their view he must be stopped.

The only way the Soviet Union and its failed communist economic system with its slave-labor force and concentration on armament production survived as long as it did was with the help of the United States. Kissinger and the banking oligarchy who profit are applying the same formula in communist China.

Alexander Solzhenitsyn defined it: “It is American trade that allows the Soviet economy to concentrate its resources on armaments and preparations for war.  Remove that trade, and the Soviet economy would be obliged to feed and clothe and house the Russian people, something it has never been able to do.  Let the socialists among you allow this socialist economy to prove the superiority that its ideology claims.  Stop sending them goods.  Let them stand on their own feet, and then see what happens.”

When the international bankers exported America’s manufacturing base and capital to China; they exported Western capitalism, i.e., America’s strength, to Communist ideologues.

If America falters, there will be no United States to come to America’s aid and provide the banker oligarchy and its central planning and supporters the luxury of keeping their collectivist cake, while eating off the remaining fruits of capitalism.  Communism, i.e., central planning, does not work, except temporarily at the point of a gun, because there is nothing in it for the individual.  Let’s see how far the bankers get without superpower backing and the Fed in their “construction of a final centralized government in a country called Europe.”

Tue, 11/22/2011 - 13:23 | 1902984 Peter K
Peter K's picture

Excellant post.

There is a term for this type of phenomenon. It's called oikophobia. Oikophobia is defined as :fear of the familiar: "the disposition, in any conflict, to side with 'them' against 'us', and the felt need to denigrate the customs, culture and institutions that are identifiably 'ours.', as per the Urban Dictionary. And very self destructive.

Tue, 11/22/2011 - 11:36 | 1902543 falak pema
falak pema's picture

thelma and louise over the cliff : Euro and USD hand in hand, good bye Grand Canyon of Welfare state dream. Hello, corporate kleptocracy into doom and gloom.

Tue, 11/22/2011 - 11:37 | 1902551 AGuy
AGuy's picture

To get to Option four, they must endure hardship, aka another depression. Its not the break of the Euro, its the huge debts that need to be delt with. Recalll what happened to Europe during the last depression --> Rise of Fascist that ended in WW2. I doubt Civilization can tolerate another global deflageration.

Also to Boot, its not just a European problem, is a global problem, as virtually every industrialized nation is standing on a mountain of debt. And this is during a time of decliining resources (Oil) and excessive over population (7 Billion). We can not grow ourselfs out of debt, Nor can we sustain 7 Billion.

Tue, 11/22/2011 - 11:38 | 1902555 monopoly
monopoly's picture

This article makes sense. It can all come together both in Eruope and here. But first, we have to go through the pain for a few years to get rid of all the excess, false promises and get an entire new Congress. We can do it, but not in 18 months.

And off topic. Do you guys remember, Zero Hedge called GRPN at 30+. Another good call. 0

Tue, 11/22/2011 - 11:39 | 1902557 Caviar Emptor
Caviar Emptor's picture

Actually it could be 4) return to sustainable reality  via  3) start of the new dark ages

It's easy to wind a bad situation. Much harder is to unwind. Because there are too many parasites feeding off the host. There are too many hidden vested interests. And the have nots won't suddenly become the haves. 

It's a long process that can either be solved with lots of hard work, time and tough decisions and fights, or it can degenerate into a banana republic dystopia reality

 

 

Tue, 11/22/2011 - 11:39 | 1902561 LukeWorm
LukeWorm's picture

If Europe returns to "sustainable reality", what will happen to the US?
Will it remain " ...with its system of lies, officially sanctioned opacity, misinformation, disinformation, cooked books, artifice and propaganda" ?

Tue, 11/22/2011 - 11:40 | 1902565 JR
JR's picture

Zero Hedge found gold when it found Charles Hugh Smith.

Tue, 11/22/2011 - 13:02 | 1902849 flattrader
flattrader's picture

It found more click bait for the echo chamber.

Tue, 11/22/2011 - 11:42 | 1902570 hourglass86
hourglass86's picture

"The return to a sustainable reality"

Not sure if serious dude!

bAnkers w$n again...

 

 


Tue, 11/22/2011 - 11:55 | 1902571 Franken_Stein
Franken_Stein's picture

Slice me nicely.

Tue, 11/22/2011 - 11:49 | 1902605 Pullmyfinger
Pullmyfinger's picture

The eurozone is merely going to shed a few countries. This does NOT mean "the end of the euro." It simply means the euro is going to become the heir to the old German deutchmark --with all that that implies.

Tue, 11/22/2011 - 11:55 | 1902627 HungrySeagull
HungrySeagull's picture

It's only the generation that grew up with just the Euro have a big issue with this.

 

Not us old fucks who know how to change money in every nation we go to over there. USD, Pound, Pound to Marks and maybe a few extra dollars to something else should it prove profitable.

Tue, 11/22/2011 - 11:58 | 1902637 LawsofPhysics
LawsofPhysics's picture

Yep, and the best part is that you never seem to have a problem exchaning a PM for lots of paper, regardless of the flavor.

Tue, 11/22/2011 - 11:58 | 1902636 Whatsoever
Whatsoever's picture

The assertion about italian finances to be dysfunctional is grossly bullshit, as is their comparison with greek finances.

Disfuntionality can be attributed solely to the financial markets, which obviously are overburdened with the task of sound risk calculation.

For a sovereign it has become ridiculous to rely on private investors for its debt.

 

Tue, 11/22/2011 - 13:31 | 1903033 JR
JR's picture

Here’s the problem for countries in the euro zone such as Italy and Greece (corruption aside), as outlined by The Economist in July: “Despite a relatively small primary deficit projected for this year, Greece is peculiarly vulnerable because of the scale of its indebtedness and the fact that so big a chunk of it is held abroad, a characteristic also shared by Ireland and Portugal, the two other bailed-out countries. As important, in joining the single currency, these economies lost the ability to reduce debt by inflation and to spur growth and competitiveness through devaluation. That makes investors fear that the only way to relieve oppressive debt burdens is through default…”

http://www.economist.com/blogs/dailychart/2011/09/government-debt?page=1

I disagree, however, with The Economist's assertion that devaluation via inflation spurs “growth and competitiveness.”  As we're seeing, in the long run it spurs destruction for the nations' standards of living.

Sound money and economic freedom are inseparable. Devaluation represents a default against the average citizen. As Prudent Investor asks, “If devaluation causes economic growth, then why has Zimbabwe’s massive devaluation (hyperinflation) not spurred her economy into the stratosphere?”

Tue, 11/22/2011 - 12:19 | 1902687 falak pema
falak pema's picture

Here's a good joke for general detente :

A blonde gets on the flight to Toronto. She has economy class ticket; seeing first class empty she goes and sits there after take off. The flight stewardess gets suspicious, asks her for ticket, and tells her to return to economy on inspection of ticket.

"Im blonde, Belgian and going to Toronto" replies the lady defiantly. The stewardess go gets the co-pilot to assist in face of stubborn resistance. He assumes tough stance and the lady says to him : "I'm blonde, I'm Belgian and I'm going to Toronto."

He gives up after threatening her and talks to the chief pilot, who says, "Let me handle this I'm married to a blonde."

The chief pilot then goes to the blonde and whispers into her ear. She gets up immediately saying, "I'm sorry, I didn't know that."

When he comes back to cockpit his colleagues ask him bemused, "What did ya tell her to make her do that?"

The chief pilot replies, "I told her the first class wasn't going to Toronto."

Tue, 11/22/2011 - 12:34 | 1902746 slewie the pi-rat
slewie the pi-rat's picture

my bloated self-importance is finite

i just haven't gotten to the end of it, yet

Tue, 11/22/2011 - 12:34 | 1902748 Klazy Plick
Klazy Plick's picture

Don't forget about the Langoliers.  They haven't forgotten about you. 

http://4.bp.blogspot.com/_aqCjiYQXKAU/S9U9FwYhzjI/AAAAAAAABTg/XzENubZmv3...

 

Tue, 11/22/2011 - 12:38 | 1902760 Piranhanoia
Piranhanoia's picture

"The start of a new Dark Ages".  The idea that humanity has left the first one that we labeled is laughable. Religions still punish everyone and control discourse, greater and greater siege weapons are sought and created with more of our resources than ever, Medical science has been returned to voodoo by allowing companies to dictate their own test results to sell a product that will do no good and cause harm.  The witch doctor is in charge of the chief. The structure is built and maintained only so that the witch doctor and chief are allowed to continue their legacy by progeny.

If we can only get past the idea that we have grown smarter, we might accomplish something. Until then, we shouldn't be taking any bows for achievements that cause instability.  We need to get over ourselves first.

Tue, 11/22/2011 - 12:47 | 1902793 Clowns on Acid
Clowns on Acid's picture

"Rather than fear this return to transparent feedback, we should welcome it and hurry it along."

If it was only that easy....remember the EC Currency snake? remember the ECU? For years every iteration has been used to "unify" Europe financially and politically. Unfortunately every solution including the ultimate Euro currency"...."a currency to end all currencies" has proven to be Wilsonian.

Socialism pervades the core of Europe and will always be responsible for the boom and busts of Europe financially and politically.

Europe will ultimately fall under "strong man" fascism, and yes...dark ages.  

Tue, 11/22/2011 - 12:54 | 1902815 FreeNewEnergy
FreeNewEnergy's picture

I usually agree with CHS, but I found this article to be a little on the "happy" side. He conveniently left out the riots, death, destruction, devaluation, poverty, sickness, disease, filth, scum and human degradation that precedes 

4. the return to a sustainable reality.

Sure, CHS, Europe will have a sustainable reality, once it rids itself of about 100 million elderly, impoverished, malcontents and immigrants. Maybe some kids, too, for good measure.

Put down the Ouzo, CHS. It's affecting your thinking.

Tue, 11/22/2011 - 13:28 | 1903014 flattrader
flattrader's picture

FNE,

When you are a quasi-intellectual like CHS, you need not concern yourself with those pesky details.

You simply mouth some meme you've picked up from somewhere else.

I read quite a bit of financial news and commentary.  I've noticed certain themes make the rounds as usually bloggers have their nose firmly up each others butts.  By the time CHS pukes them out the are a day late and a dollar short.

Tue, 11/22/2011 - 12:59 | 1902834 Peter K
Peter K's picture

"If Europe ditches the failed "folk" experiment called the euro, then the process of recognizing and pricing dysfunction can begin, and the stability that only transparency and feedback can provide will soon return to the EU."

Before the EU elites ditch the EURO, they will have to ditch their '60's mentality. 1860's that is. Reality is that socialism es muerte.

Tue, 11/22/2011 - 13:00 | 1902840 johny2
johny2's picture

great economic troubles of the past have been closely followed by which of the following:

1. v shaped recovery

2. cultural advancements 

3. progress of human rights globally

4. war

Tue, 11/22/2011 - 14:40 | 1902876 steve from virginia
steve from virginia's picture

Remember two things about all industrial economies:

- Wealth = debt. (See exception below.)

- At some point in the economic cycle the debt exceeds the wealth (Steve's First Law of Economics).

Wealth is value's residue and is limited by physical constraints. Debt expands exponentially with no physical limits. Debt expands until it becomes absurd.

Europe is at the point of debt absurdity, it massively exceeds wealth. Restructuring even the smallest part of the debt destroys all of the wealth. The end of the euro and its debts means there will be no (modern, industrial) wealth at all.

This 'wealth destruction' hazards gold and silver as these items would lose their 'wealthiness' along with all other balance sheet entities.

This does not mean that gold/silver won't have non-industrial value. Keep in mind that most non-industrial value has already been destroyed by the race to modernize.

  - Industrial economies destroy value, which they do by converting some value to 'wealth'.

The cumulative loss of value is the reason for our current crisis, there is insufficient value for industries to destroy, they are victims of their own success.

It doesn't really matter HOW the de-wealthing process takes place but the fact that IT DOES. Chances are Europe will become like Detroit with some nicer ruins. Depopulation will take place as a result of pandemic. Europe will be car free.

Another bit to be aware of:

- Industrial economic systems amplify wealth disparity by design. This is why they are popular and are clung to until the bitter end of bankruptcy.

Industrial economies cannot be 'reformed' only buried with stakes through their hearts. What is needed is a new kind of economy not the current versions in drag.

Best case scenario has industrial economies 'ratcheting down' alongside resource availability leaving greater numbers on the 'outside' in extreme poverty.

 

Tue, 11/22/2011 - 13:18 | 1902941 Snakeeyes
Snakeeyes's picture

How is this sustainable? Or our debt growth at 2% GDP? But returning to reality wiill be painful.

U.S. Q3 GDP Revised Down To 2%, Europe Continues Down Ski Slope

http://confoundedinterest.wordpress.com/2011/11/22/u-s-q3-gdp-revised-down-to-2-europe-continues-down-ski-slope/

Tue, 11/22/2011 - 13:18 | 1902942 alfa
alfa's picture

A Brief History of The Future by Jacques Attali (2006) outlines the elite's agenda for the 21st Century.

 

A French Jew (he recently told the European Jewish Congress the world's Jewish population needs to rise to 200 million),  Attali is a high-level technocrat working to fulfill the New World Order.

Jacques Attali has a varied CV.  For ten years he worked as an adviser to former French President Francois Mitterrand. In 1980, he started the European program Eurêka (a major European program on new technologies that invented, among other things, the MP3).

In 1991, he co-founded the European Bank for Reconstruction and Development.  He is also at the origin of the higher education reform, known as LMD, designed to bring all European degrees into line.

He has published over 50 books, selling over 6 million copies worldwide. They include an adoring biography of banker Siegmand Warburg.

He has also written a glowing account of Karl Marx, arguing that Marx was a free-marketeer who favored capitalism as a stepping-stone to his Communist ideal and predicted globalization as we know it today (i.e. the New World Order).

In 'A Brief History of The Future' Attali predicts that this century will unfold in three distinct phrases.

1.   Super-empire = an era of privatization where corporations rule the day.  He writes, "money will finally rid itself of everything that threatens it- including nation states, which it will progressively dismantle." The market will become the world's only recognized law. A system of power whose 'structures remain elusive but whose goal is global.'


2.   Hyperconflict = super-empire will implode and there will be a period of worldwide chaos. Starting about 2030,  Attali foresees 'devastating wars, pitting nations, religious groups, terrorist entities, and free-market pirates against one another'.


3.   Hyperdemocracy (2060)= Exhausted by wars and social upheavals the world public will welcome with open arms 'the creation of a democratic world government.' It will be a collectivist system, with everyone working towards the 'common good.'

http://underinformation.wordpress.com/2010/12/22/a-brief-history-of-the-...

 

Tue, 11/22/2011 - 13:40 | 1903076 JR
JR's picture

Democracy is soft communism.

“Communism was solely the invention of the Jews.” — Sir Winston Churchill London Illustrated Herald
(February 8, 1920)

Tue, 11/22/2011 - 15:35 | 1903700 Raging Debate
Raging Debate's picture

It is easy to forecast collapsing sovereigns in the West as the wealth was mandraked for forty years East. Doesn't take a genius to figure out the model of the pyramid, this form of 3d Monarchy either. Neither Atali or nearly anybody else for that matter bothered to calculate the rate of business now vs. say the 1930's. Plans will go vastly awry based on minute variance, such is the nature of linear systems.

The ME war will begin in 2013, roughly by the third quarter. This regional war will go nuclear. Israel will win if such horror could be called victory. In 2015 is when war will begin in the Korean Peninsula and spread into the Sea of Japan and spread outward. It is a world war. A temporary EU/Russian alliance will break, reverse Hitler from Putin's Russia. Russia rules very temporarily and from the air. There will be some other game theory type betrayels between China and Russia. Every nation is an opportunist, forget this at your own peril.

It will be over by 2021. Nukes will be used along with black hole weapons, particle gas weapons and other new hardware I probably haven't even considered.

As for me, I understand that when elephants fight ants get trampled.Neither myself or sons will be the Banther Fodder fuel for Titans. Get involved in local government and community. Lots of room for advisors. Create opportunity to grow you local community and hedge at the same time.

Tue, 11/22/2011 - 13:50 | 1903129 Use of Weapons
Use of Weapons's picture

#4

You might have missed the last 500 years, but Europe since even before 1492 has been very fond of colonies. They've not been noted as sustainable nor particularly pleasant for the people participating in them.

Tue, 11/22/2011 - 14:25 | 1903283 dcb
dcb's picture

I predict that if the euro doesn't survive you will see cats and dogs sleeping together

Tue, 11/22/2011 - 17:05 | 1904134 AldoHux_IV
AldoHux_IV's picture

Unfortunately this message is lost on the corrupt politicians because they're systematically being replaced by bankers (why pay for the milk when you can get it straight from the cow?), and these people have only one thing mind: enslave by debt and control money and policy-- no matter how damaging it becomes to everyone else.

Tue, 11/22/2011 - 19:00 | 1904575 Montezuma
Montezuma's picture

Good first step, next we get rid of USD as the world reserve currency so it can reflect the true market value.

Only reason to buy dollars is because everybody needs them, which is also part of the whole problem.

Or we could just make it the world currency and give GS (and few others) their own printer? Its just a hassle to go trough FED anyway.

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