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

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

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
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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
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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
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"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
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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 - 12:23 | 1902715 steve from virginia
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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
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Excellent post.


Below video details the FED & fractional reserve banking scams:



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


Enjoy, & stack silver/gold.

Tue, 11/22/2011 - 13:40 | 1903080 eureka
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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
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It gets worse with every minute:

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

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
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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
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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
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Tue, 11/22/2011 - 14:35 | 1903352 the tower
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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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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
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Wipe the semen from the gun, pervert. The Yids know what you do, they watch you. You better hurry and hide.


Tue, 11/22/2011 - 11:57 | 1902633 High Plains Drifter
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is that all you got?

Tue, 11/22/2011 - 12:02 | 1902648 whstlblwr
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Tue, 11/22/2011 - 14:33 | 1903337 the tower
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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
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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
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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
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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...
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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
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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 all goes back into the environment.  Man with his short-term wisdom has created the ability for interest to occur due to this relationship:



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
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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
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+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 

Tue, 11/22/2011 - 13:34 | 1903048 Peter K
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But the universe is infinate. I think your problem is that you are not thinking BIG:-)

Tue, 11/22/2011 - 13:52 | 1903139 azusgm
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Hmm...bartering and local economies...

Sounds good to me.

Tue, 11/22/2011 - 11:26 | 1902485 Popo
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I was sort of hoping for option 1.

Tue, 11/22/2011 - 11:27 | 1902497 pupton
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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
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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
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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
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Janet Napolitano?

Tue, 11/22/2011 - 12:42 | 1902769 The Big Ching-aso
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I had a very disturbing dream recently.  

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

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