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Hungary Folds, Ready To Change Its Laws To Get European Bailout Money

Tyler Durden's picture




 

If there is any one more vivid confirmation of Mayer Rothschild words "Let me issue and control a nation's money and I care not who writes the laws" then we have yet to find it. Today Hungary, which had "valiantly" defied Europe and the IMF in ignoring pressure to make its central bank more "malleable" finally folded, following a recent explosion in its bond yields, a surge in CDS to records, and a collapse in its currency. And to think how easy it is to subjugate a state to slave status in our "globalized" days without shedding one drop of blood. Reuters reports: "Hungary's government is ready to consider modifying disputed legislation if the European Commission deems it necessary, Foreign Minister Janos Martonyi told the bloc's executive and European Union partners. "We fully respect the authority of the European Commission, the guardian of the EU treaties," Martonyi wrote in a letter dated January 6 and published by his ministry on Tuesday. "We stand ready to consider changing legislation, if necessary."" As Rothschild foresaw so effectively over 200 years ago, selling out your sovereignty only takes a few pieces of (paper) silver.

More:

Hungary, which wants to secure a multibillion euro financing deal with the International Monetary Fund and the European Union, is locked in a legal dispute with the European Central Bank and Brussels over a new central bank law.

 

The European Commission last month asked for the law, which it worried will compromise the bank's independence, to be repealed.

 

Martonyi said the government was ready to conduct dialogue with anyone who raised concrete concerns.

Hungary is merely the first case study of how the annexation of non Eurozone countries will proceed shortly, once it becomes clear that anyone who is not with a failed European experiment, is against it.

 

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Tue, 01/10/2012 - 11:09 | 2050092 ACP
ACP's picture

I'll change my laws to get bailout money.

And then squander it, of course.

Then change the laws back.

Tue, 01/10/2012 - 11:11 | 2050108 GetZeeGold
GetZeeGold's picture

 

 

I'm sure they'll feel pretty stupid when they find out it's not real silver.

Tue, 01/10/2012 - 11:14 | 2050134 LawsofPhysics
LawsofPhysics's picture

Exactly, more indebted slavery is NOT a bailout.  When is it America's turn?

Tue, 01/10/2012 - 11:17 | 2050151 Harlequin001
Harlequin001's picture

Treason.

Tue, 01/10/2012 - 12:39 | 2050510 trav7777
trav7777's picture

not exactly.  The global financial system makes it impossible to get energy without participating in a debt racket.  This is what happens when usurers control production and is WHY usurers have periodically been run out of countries throughout history.

So for Hungary, it's either starve and freeze or else knuckle under.  Iceland has its own energy and they even eat horses there.  They have had to belt tighten and become more autarchic.

It was either that or allow foreigners to take possession of their country as landlords. 

Sat, 03/24/2012 - 13:03 | 2286722 l.hauri
l.hauri's picture

it is the same issue all over the world. I am sure that we will see improvements in this area. timeline covers

Tue, 01/10/2012 - 11:18 | 2050155 francis_sawyer
francis_sawyer's picture

"Goodbye city life... Green Acres we are there!"

Tue, 01/10/2012 - 11:39 | 2050266 Muddy1
Muddy1's picture

Are there news reports out of Hungary about bank runs and bare shelves in grocery stores?

Tue, 01/10/2012 - 11:55 | 2050336 LawsofPhysics
LawsofPhysics's picture

One might ask what the standard of living was to begin with.  I know several Hungarians, none of which are in a rush to return.

Tue, 01/10/2012 - 11:42 | 2050277 Coast Watcher
Coast Watcher's picture

Greeks fleeing cities, going back to the land.

http://www.nytimes.com/2012/01/09/world/europe/amid-economic-strife-gree...

 

Tue, 01/10/2012 - 12:48 | 2050544 Ghordius
Ghordius's picture

Badly researched, Tyler - perhaps next time I go to Hungary I have to invite you

"Reuters reports: "Hungary's government is ready to consider modifying disputed legislation if the European Commission deems it necessary"

sheesh, it sounds too good to be true, eh? The IMF, the EU commission and SecState on one side and little Hungary on the other, of course you know where the baddies are, eh?

If you were Hungarian, you would be protesting for this law to change too. It's a new "Basic Law(s)" which is practically an Amendment to the Hungarian Constitution and is drawing protests among a population not known for protests. It has a lot of really unsavory (and illiberal) elements and for once the Commission is right.

http://www.globalpost.com/dispatch/news/regions/europe/120103/hungary-pr...

http://www.nytimes.com/2012/01/03/world/europe/rare-opposition-protests-...

http://www.bbc.co.uk/news/world-europe-16387117

I would add a zerohedge link but this time ZH is not "the source"...

Tue, 01/10/2012 - 14:33 | 2051023 Excursionist
Excursionist's picture

Laws are enacted to make a central bank more beholden to politicians and their wheelings and dealings.  People protest the power grab.  Supra-national entities like the IMF call bullshit.  Said politicians retreat with tails between legs.

I'd say the retreat was unfortunate if Hungary's politicians were cut from a cloth different from the rest of the world's elected officials.  No evidence suggests they are, however.  So I have to also agree with the IMF et al.'s coercive tactics.  Sometimes you have to force your kids to eat their peas for their own good.

Sat, 01/21/2012 - 20:32 | 2085323 1 Peng?
1 Peng?'s picture

I never believed force-feeding children has long-term positive effects.

Sat, 01/21/2012 - 20:30 | 2085316 1 Peng?
1 Peng?'s picture

Not really, Tyler was absolutely to the point! (maybe not as much due to deep research, as to good instincts)

Hungary is a typical case where you don't get the fair picture from MSM! In other words MSM is bluntly lying. The reason: 

The Hungarian government managed to find itself a lot of powerful enemies both internally and externally by trying to work in the interest of its people. For example, taxing German-French state monopolies operating in Hungary and commercial banks hasn't earned them too many friends, but a christian type of new constitution is also not too popular with EU-politicans. 

You are right that those who were in the street in early January 'were not known for protests' before, because they represent the leftist elite which is now affraid of losing (some of) its power. Yesterday there was a pro-government protest in Budapest with 10-times more participants than the protest you were refering to. I am looking forward to see the coverage on it in Western MSM.

Next time you visit Hungary try to speak with more people!

Tue, 01/10/2012 - 13:13 | 2050647 midtowng
midtowng's picture

Hungarians voted in a proto-fascist government and gave up their rights in the hopes that their government would stand up for them.

Instead they were betrayed twice over.

Tue, 01/10/2012 - 11:09 | 2050093 Dick Darlington
Dick Darlington's picture

Luckily Europeans have PLENTY of extra cash to spread around. Just one call to ponzimaster Rehn and it's fixed!

Tue, 01/10/2012 - 11:09 | 2050096 Cone of Uncertainty
Cone of Uncertainty's picture

Speaking of silver.

TIF down 11% as luxury spendig implodes globally.

Tue, 01/10/2012 - 11:13 | 2050129 GMadScientist
GMadScientist's picture

Good thing I didn't go long blue boxes.

Did you ever think that might be a function of their margins?

Tue, 01/10/2012 - 12:40 | 2050514 trav7777
trav7777's picture

well you pay $400 for $40 worth of silver.

But it IS a get out of a jail free card with your bitch

Tue, 01/10/2012 - 11:10 | 2050105 Mongo
Mongo's picture

Because, when it comes to the IMF, it just a matter who you pay and how much...

 

What a f***ing joke...

Tue, 01/10/2012 - 11:24 | 2050145 GeneMarchbanks
GeneMarchbanks's picture

Another confirmation that a default in a sovereign is never going to happen at least in name. CDS = clown shoes.

Tue, 01/10/2012 - 11:11 | 2050109 GMadScientist
GMadScientist's picture

I guess there's no Gyorgy Dozsa among them today.

 

Tue, 01/10/2012 - 12:18 | 2050437 Alienated Serf
Alienated Serf's picture

i now have a new hero.  awesome.

Tue, 01/10/2012 - 11:11 | 2050110 Dr. Engali
Dr. Engali's picture

We welcome our new European Lords and masters with open arms.

Tue, 01/10/2012 - 11:26 | 2050197 BennyBoy
BennyBoy's picture

Kneel down before your Financial Elites!

The vig will be paid.

 

Funny Financial elite cartoons:

http://financeall.tumblr.com/

Tue, 01/10/2012 - 11:12 | 2050113 cossack55
cossack55's picture

Way too long under the jackboot of the USSR.  1956 was when Hungary was de-balled.  Slaves ever since. Go long knee-pads.

Tue, 01/10/2012 - 11:12 | 2050119 GeneMarchbanks
GeneMarchbanks's picture

Eurozone or the IMF or both. These are the options for European nations...

Tue, 01/10/2012 - 11:16 | 2050143 slaughterer
slaughterer's picture

You forgot a third option: BK

Tue, 01/10/2012 - 11:17 | 2050150 GeneMarchbanks
GeneMarchbanks's picture

Burger King? WTF? That option doesn't exist. See: ISDA.

Tue, 01/10/2012 - 11:17 | 2050149 Gandalf6900
Gandalf6900's picture

Yes unfortunately we are old countries, that have bcome lazy and painfully unelastic...united rebellion is almost unthinkable in Europe...sigh!!!

Tue, 01/10/2012 - 11:18 | 2050152 ZeroPower
ZeroPower's picture

They dont even have the EUR yet and already this BS. Whoa...take heed non-Eurozone EU members!

Tue, 01/10/2012 - 11:53 | 2050328 slaughterer
slaughterer's picture

Hungary contained.  Greece soon to be contained.  Not one black swan let out of its cage.  

Tue, 01/10/2012 - 11:18 | 2050154 Kaiser Sousa
Kaiser Sousa's picture

the people of Hungary should prepare to go Hungry....

Tue, 01/10/2012 - 11:18 | 2050156 curbyourrisk
curbyourrisk's picture

BITCH SLAVE!!!

 

 

Tue, 01/10/2012 - 11:27 | 2050200 wandstrasse
wandstrasse's picture

former Goldmanite taking over Hungarian government in 5, 4, 3, 2..

Tue, 01/10/2012 - 11:28 | 2050205 Vince Clortho
Vince Clortho's picture

Has a time been announced for the official boot-licking ceremony?

Tue, 01/10/2012 - 11:29 | 2050209 EscapeKey
EscapeKey's picture

Hungary's main exports are porn stars and goulash, although I'm not too sure about the goulash.

Tue, 01/10/2012 - 12:20 | 2050447 Hippocratic Oaf
Hippocratic Oaf's picture

But we're def sure 'bout the porn stars and don't forget the strippers.

Tue, 01/10/2012 - 11:31 | 2050218 blueridgeviews
blueridgeviews's picture

And the monopoly money keeps coming for those who need it. We are now 2 years since the crisis in Greece and still no solution except printing/making up money to hand over to countries. For what? The illusion of no problems?

 

I just got a 1099 from an account I have and got paid $100 for loaning $8600 for an entire year.

 

When I grew up I was told to save your money and let IT work for you. I'm ready to FIRE my money for not working.

 

4 more years of Obuma and I'll be ready for suicide.

Tue, 01/10/2012 - 11:45 | 2050293 Vegamma
Vegamma's picture

You earned over 1%? Easy blueridge and back of the risk taking before someone gets hurt. Or were most of your returns early in the year when Tbill yields were non-negative?

Tue, 01/10/2012 - 11:50 | 2050314 EscapeKey
EscapeKey's picture

got paid $100 for loaning $8600 for an entire year.

Don't forget to pay your taxes.

Tue, 01/10/2012 - 11:35 | 2050240 BandGap
BandGap's picture

Junkies will do anything for a fix.

The real problem with this is that other governments are going to point this as an example of "cooperation" among the Eurozone and their sheeple. I mean, if Hungary can do it, why not others?

Tue, 01/10/2012 - 11:36 | 2050250 illyia
illyia's picture

I would love to see names: Follow the money; this is a crime scene.

Eh?

Tue, 01/10/2012 - 11:38 | 2050262 The Count
The Count's picture

The Hungarian are spineless idiots just like the rest of us.

 

Tue, 01/10/2012 - 11:39 | 2050265 niccolo and donkey
niccolo and donkey's picture

The socialists trashed the country and their leader (who was Premier at the time) was caught on tape admitting to repeatedly lying about state finances and the state of the Magyar economy.  Fidesz, led by Orban, was swept in through disgust with the socialists.

 

Unfortunately, global powers led by Hillary Clinton have been engaged in a full-court press on Hungary since Orban came into power with the banking laws being at the top of "western concerns".

 

Read all about it what's going on in Hungary here:

 

http://www.saloforum.com/index.php?threads/hungarys-orbanization-is-worr...

Tue, 01/10/2012 - 11:52 | 2050319 The Count
The Count's picture

Our government has been taken over by high finance and misuse that power to bully the rest of the world.

Tue, 01/10/2012 - 11:40 | 2050267 LookingWithAmazement
LookingWithAmazement's picture

So then. The next Black Swan, Hungary, saved and solved. No crisis. Next one, please.

Tue, 01/10/2012 - 11:41 | 2050274 fightthepower
fightthepower's picture

Losers

Tue, 01/10/2012 - 11:47 | 2050301 ricocyb13
ricocyb13's picture

the country of Hungary had a great advisor, hungarian jew Mr. George Soros.

http://en.wikipedia.org/wiki/George_Soros

Tue, 01/10/2012 - 11:53 | 2050325 The Count
The Count's picture

What else is new. What do you think Bernanke, Paulson, etc etc etc are?

Tue, 01/10/2012 - 12:09 | 2050388 SMG
SMG's picture

Oh you mean Illuminati, right?

Tue, 01/10/2012 - 12:39 | 2050506 Alienated Serf
Alienated Serf's picture

did you just say hank paulson is jewish?  LOL.  christian scienist loon, but thanks for trying.

Tue, 01/10/2012 - 12:50 | 2050554 The Count
The Count's picture

I quote wiki...

Paulson was born in Palm Beach, Florida, to Marianna (née Gallauer) and Henry Merritt Paulson, a wholesale jew-eler.

Presto!

Wed, 01/11/2012 - 12:14 | 2054723 Doe
Doe's picture

They didn't even have to go to Soros for advice. Martonyi, the foreign minister quoted in the article had the "honor" of participating in Bilderberg's 2008 meeting. 

 

http://newsworldwide.wordpress.com/2008/06/09/bilderberg-meeting-sorted-...

Tue, 01/10/2012 - 11:52 | 2050321 AldoHux_IV
AldoHux_IV's picture

How pathetic in what it takes to bend so many to so few's will via the same instrument that will blow up in their faces: debt.

While this development is bad for anyone not in the elite funded class, one wonders when Hungary will be blamed for troubles in the euro system.

Tue, 01/10/2012 - 11:52 | 2050322 Dcheeth2
Dcheeth2's picture

Humpf,

I had a bet with my mate, that Austria will be bailing out banks faster than speedy gonzales as a result of Hungary, before Ireland drops the Euro (his perception of the first cataclysm).

Oh well, that's me a tenner out of pocket then.

Tue, 01/10/2012 - 11:54 | 2050330 Non Passaran
Non Passaran's picture

Of course. The ruling party wants to stay on power.
And the main question is will they return the "borrowed" pension fund money... I think we know the answer. This was never about "Hungary" but about fight for power over the voters. It makes no difference. Actually the citizenry might be better off with the IMF involved.

Tue, 01/10/2012 - 11:55 | 2050340 MayerRothschild
MayerRothschild's picture

All according to plan.  Nothing to see... Please move along...

 

 

 

 


Tue, 01/10/2012 - 12:48 | 2050548 Snakeeyes
Snakeeyes's picture

Once again, Hungary submits to the bootheel of Germany.

 

Tue, 01/10/2012 - 14:33 | 2051017 steve from virginia
steve from virginia's picture

 

For Hungary to escape the euro Ponzi scheme they must be more forceful.

The UK is not a good example for Hungary as the country is too large for the Europeans to indimidate. It's also separated from the Continent by that damnable creek. It's also too prickly: that Hitler chap had problems with Brits during his attempt to unify the eurozone from 1940-on.

Best for Hungary to follow the example of Iceland. The Hungarians need to turn to themselves and let the rest of the Europeans fend for themselves. The conflation of economic interests and the ideal of political accomodation across the continent is intellectually dishonest. Ror the large countries in Europe to economically bugger the smaller is not solidarity but rape.

Hungary simply needs to default on its euro-denominated debts. This would be a PRIVATE set of defaults (Hungarian sovereign debt is largely denominated in forints). The Hungarian's problem is that the government is trying to support the Hungarian banking sector which is insolvent (like all the other banking sectors).

Of course, euro capital would flee the country but this would be a good thing (inevitable, under any set of circumstances. What is a euro? A European word that means 'zero'.) Right now, the cost in forints to buy euros (to service/repay euro-denominated debts) is increasing. Ditto the cost of Swiss francs which is the other currency of note circulating in Hungary. Budapest should simply order its banks to stiff both sets of lenders and watch what happens next.

A default is inevitable, nothing the IMF or EC can do to prevent it. A small euro loan will not fix what is wrong in Hungary as the same order of business cannot fix what is wrong with Italy or Spain. Once on EU country exits, so goes Germany.

Germany MUST exit or all of Europe's massive liabilities are fixed to its (Germany's) balance sheet as it is the only semi-solvent EU country. Even if tiny Greece defaults instead of Spain or Italy, the liabilites of the EU beginning with Greece's lenders will cascade. Germany will have little time to decide whether it will follow UK or become the bagholder/fool in the market for the rest of the Europeans ... all this with no euro as it would also vanish in a heartbeat.

 Wiping out the euro and leaving 'Mr Nobody' to owe trillions is the European strategy for dealing with its massive and increasing debts. In the meantime, kick Hungary and Belarus, Latvia and Portugal.

Paybacks are hell ...

Tue, 01/10/2012 - 15:04 | 2051187 hungarianboy
hungarianboy's picture

Don't trust us! We'll grab the money and change it back in another way. You pay we laugh... :D

Wed, 01/11/2012 - 02:15 | 2053571 johnjb32
johnjb32's picture

"Hungary is merely the first case study of how the annexation of non Eurozone countries will proceed shortly, once it becomes clear that anyone who is not with a failed European experiment, is against it."

LMFAO!... Pass the popcorn. Hungary goes fascist to get European bailout money, when Europe is dying. They do not grasp that they are fighting for a better berth on the Titanic. On the other hand, herein lie the clearly visible seeds of a bloody European shooting war. I am not the first to have seen that.

Someone needs to get the children out of the control room. -- Michael C. Ruppert

 

http://www.collapsenet.com/154.html

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