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Hyper Mario And Germany On Verge Of All Out Warfare

Tyler Durden's picture




 

Back in March we wrote "Mario Draghi Is Becoming Germany's Most Hated Man" for one reason: a few months after the former Goldman appartchik was sworn in to replace Trichet with promises he would not "print" Draghi did just that in a covert way via $1.3 trillion in LTROs, that immediately hit the economy and sent inflation across Europe soaring. We said that: "Slowly but surely the realization is dawning on Germany that while it was sleeping, perfectly confused by lies spoken in a soothing Italian accent that the ECB will not print, not only did Draghi reflate the ECB's balance sheet by an unprecedented amount in a very short time, in the process not only sending Brent in Euros to all time highs (wink, wink, inflation, as today's European CPI confirmed coming in at 2.7% or higher than estimated) but also putting the BUBA in jeopardy with nearly half a trillion in Eurosystem"receivables" which it will most likely never collect."

It now appears that the simmering hatred between the two is about to upshift to a whole new level, with the threat of open escalation finally arriving. Because if Sueddeutsche Zeitung is correct, via Reuters, in precisely 12 hours, Draghi will proceed with a plan that has neither Germany's nor Buba's blessing, in the process effectively isolating the only remaining solvent country in Europe, and its de facto paymaster, and forcing Germany to take a long, hard look at the exit sign (which, however, as reported earlier, with each passing day that drags Germany's economy is becoming less of an unthinkable outcome). To wit: "Draghi is planning concerted action using both the ECB and the future euro European Stability Mechanism (ESM) to purchase sovereign debt from Spain or Italy in order to help push down borrowing rates for those two countries." There is one problem: "highly doubtful that the German government would agree to Draghi's approach. The Bundesbank also is likely to reject the idea, the paper added."

In essence what Draghi will do tomorrow is what Monti did a month ago when together with Rajoy, he presented Germany with one option, and would not back down else risk disintegrating the Eurozone. Merkel then took the diplomatic way out and pretended to agree that the ESM would lose its seniority status, something which as Finland confirmed today, never actually happened after the Nordic country said the ESM still and will always have explicit seniority status. The problem however is that the June summit was political theater. What happens tomorrow will have all too real consequences if and when Monti injects another €1 trillion into the economy. How soon afterward can Germany again expect to once again pay a record amount for a liter of unleaded. And how quick until the latest iteration of attempted inflation fizzles and has to be replicated with a €2 trillion bond monetization episode. Then €4 trillion. Then €8. Etc.

You get the picture.

More from Reuters: which doesn't tell us anything really new, but merely confirms (allegedly) that Draghi will indeed openly go where so few have gone before - openly against the will of Germany, its Chancellor and banking head, Herr Weidmann:

The ESM would purchase sovereign debt in smaller amounts directly from both countries while the central bank would resume its purchase of debt in the secondary market, the daily wrote in an advance released on Wednesday evening. The Bundesbank has opposed further ECB debt purchases.

 

The ECB Council will meet on Thursday and the Sueddeutsche Zeitung said it looked like a majority was emerging in favour of the ECB resuming its purchases of sovereign debt. It added there will most likely not be any official decision on such a measure.

The ECB's role would be a stopgap until the ESM is approved by the German constitutional court. Which it very way may never happen.

There is a greater likelihood that Draghi will spell out in more concrete terms what he said last week - that the ECB will do everything within its mandate to support the euro, the paper said. A final decision is not expected until after Sept. 12, after the German Constitutional Court rules on the ESM.

 

The daily said Draghi's plans could lead to the ESM taking part directly in the auctions of state debt by those countries affected, leading to a reduced interest rate for the auction.

 

The ECB's task would to be to work before the auctions to push the interest rates down to an acceptable level and to keep them fixed at that lower level for the longer term.

The delusion continues because not only have we shown that the impact of each SMP episode is weaker and weaker, but that absent the ECB officially denouncing its senior status, and thus fears of bondholder subordination, the ECB will achieve absolutely no incremental interest in bond purchases by private investors who are convinced both Spain and Italy will conclude merely as yet another Greece.

Sueddeutsche said it is hoped the plan would restore private investors'
confidence in the bond market. The ESM would probably only have to allot
relatively small sums of money for this or could bow out of bond
auctions at the last minute if the interest rates had fallen to an
acceptable level.

Finally and most crucially:

The daily said it was at the same time highly doubtful that the German
government would agree to Draghi's approach. The Bundesbank also is
likely to reject the idea, the paper added.

And with that the open warfare between the ECB and Germany will begin. The only question remaining is does Draghi, even if he is truly merely a figurehead for Goldman, really want to launch all out war against Germany?

Especially with his office located in downtown Frankfurt.

Oh, and don't call him Super Mario any more. The proper prefix now is HyperTM.

Then again, just like today's violent disappointment by the Fed, all of the above could be merely well positioned media propaganda, and the reality is that Draghi will do absolutely nothing.

 

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Wed, 08/01/2012 - 19:35 | 2670605 reader2010
reader2010's picture

"By 2050—earlier, probably—all real knowledge of Oldspeak will have disappeared. The whole literature of the past will have been destroyed. Chaucer, Shakespeare, Milton, Byron—they'll exist only in Newspeak versions, not merely changed into something different, but actually contradictory of what they used to be. Even the literature of the Party will change. Even the slogans will change. How could you have a slogan like "freedom is slavery" when the concept of freedom has been abolished? The whole climate of thought will be different. In fact there will be no thought, as we understand it now. Orthodoxy means not thinking—not needing to think. Orthodoxy is unconsciousness."

George Orwell (1949). Nineteen Eighty-Four.

Wed, 08/01/2012 - 19:35 | 2670610 Future Tense
Future Tense's picture

There is $15 trillion in government debt that must be rolled over in the next 3 years. That money must be printed Weimar style in order to be funded. The following article goes through the details. The numbers are staggering:

http://www.ftense.com/2012/08/the-15-trillion-adjustable-rate-loan.html

Wed, 08/01/2012 - 19:53 | 2670649 reader2010
reader2010's picture

It is one of the most important parts for them to bring out the NWO.

Wed, 08/01/2012 - 22:21 | 2670976 FreedomGuy
FreedomGuy's picture

I have never been a fan of worldwide conspiracies but the linkage of central banks and all of us tieing our sinking ships together in socialist desperation may well bring it about. With the final fall of the USA to collectivism there really won't be any significant places to run nor anyone big enough to make a way out.

Wed, 08/01/2012 - 23:16 | 2671081 engineertheeconomy
engineertheeconomy's picture

Don't shoot until you see the whites of their eyes...

Wed, 08/01/2012 - 23:45 | 2671111 The Monkey
The Monkey's picture

Crude, soft commodities and precious metals.

Either the Fed or the ECB has to print now. Global PMI's are too poor. Even Germany's economy is getting hit.

Thu, 08/02/2012 - 00:50 | 2671181 reader2010
reader2010's picture

It's all about the artificially-engineered Depression 2.0 that is designed to devastate the world's proles financially so that they would be willingly begging for the scrapes that the NWO promises them. Welcome to the Hotel Oceania, where "WAR IS PEACE, FREEDOM IS SLAVERY, and IGNORANCE IS STRENGTH."

Thu, 08/02/2012 - 01:00 | 2671187 The Monkey
The Monkey's picture

Don't you mean to say:

Janet Yellen and the California Fed need for the United States of America to conduct open market operations on behalf of CALPERS and state budget assumption for trickle-down Facebook tax revenue?

Fuck you if you live in Mississippi. You are all southern trash (white, or black).

Thu, 08/02/2012 - 02:49 | 2671261 Joe A
Joe A's picture

Don't let them take your guns then.

Thu, 08/02/2012 - 03:18 | 2671283 RobertMugabe
RobertMugabe's picture

For as great a site as ZH is, its comment section is populated with more jackasses than Yahoo finance. I +1 you btw because your delusion seems sincere and it makes me giggle

Thu, 08/02/2012 - 06:45 | 2671350 tocointhephrase
tocointhephrase's picture

Racist scum!

Just sayin!

Wed, 08/01/2012 - 19:53 | 2670650 flacon
flacon's picture

What time is Hyper-Draghi  supposed to make his announcement?

Wed, 08/01/2012 - 20:15 | 2670705 flacon
flacon's picture

I found this (Eastern time USA):

 

0700 am Bank of England rate announcement

0745 am European Central Bank rate announcement

0830 am Initial claims

1000 am Factory orders

Wed, 08/01/2012 - 20:51 | 2670777 flacon
flacon's picture

Here's the famous speech from Draghi last week. 

 

Listen to the whole thing, especially at 7:00, and again at 10:15.

 

Global Investment Conference - Mario Draghi, President of the European Central Bank

http://www.youtube.com/watch?v=hMBI50FXDps

 

 

Wed, 08/01/2012 - 22:13 | 2670959 JohnG
JohnG's picture

Leeeeeeeroy Jenkins!!

Thu, 08/02/2012 - 02:51 | 2671257 Element
Element's picture

lol .. like they're going to come up with some other 'solution', but to print trillions of a rapidly depreciating cognitive meme ... called the 'euro'.

The death of a really bad idea.

Wed, 08/01/2012 - 20:18 | 2670715 roadsnbridges
roadsnbridges's picture

Try 11:30:01 am EST.

Wed, 08/01/2012 - 20:19 | 2670718 AbelCatalyst
AbelCatalyst's picture

Draghi: there are these sovereign bonds... Yadda, yadda, yadda... Germany says no... Yadda, yadda, yadda. Can hits the wall... Yadda, yadda, yadda... It's all good... See, that was easy!!

Details are not needed. Math is irrelevant. Things always work in the end. No worries... Life is good!

Wed, 08/01/2012 - 20:24 | 2670731 dark pools of soros
dark pools of soros's picture

"Orthodoxy is unconsciousness."

Corporate Culture 101

Wed, 08/01/2012 - 19:35 | 2670607 TruthInSunshine
TruthInSunshine's picture

+1 If you think Germany doesn't relent and tells PIIGS to get bent

-1 If you think Germany relents and radically debases living standards of Germans

 

Wed, 08/01/2012 - 19:39 | 2670619 LetThemEatRand
LetThemEatRand's picture

Merkel relents because German bankers will benefit.   They own the place (by which I mean bankers own/control the world).

Wed, 08/01/2012 - 19:45 | 2670635 SHEEPFUKKER
SHEEPFUKKER's picture

Isn't Angie on holiday?  I find it hard to believe that Draghi does anything tomorrow unless she has already signed off on it, which, is highly unlikely. Check back to B. Bernanke. Your move. 

Wed, 08/01/2012 - 19:53 | 2670644 TruthInSunshine
TruthInSunshine's picture

Maybe.

However, consider that there is a long running battle between England & Germany, whereby England supports destroying real economic growth and things of actual value (subsidizing London banks & financial institutions at the cost of massive taxation/parasitic draining of the rest of Brits is but one example) to keep the fractional reserve banking fiat Ponzi scheme alive, and Germany is genuinely more hostile to this system, instead preferring to see actual, real economic growth created by companies that make tangible things of value, whether optics, chemicals, vehicles, semiconductors, etc.

England is an example of the parasite-host economic model of starving/penalizing the general population to keep the banking/financial wards of the state and central ponzi bank propped up (just as the U.S. has become, with New York City as our London), while Germany has historically preferred a model based on real economic output based on the merit of real goods drawing real purchasers based on the natural laws of supply & demand.

England (and increasingly, the U.S.) has perfected the production of derivatives, while Germany has mastered the craftmanship and production of tangible things.

 

When was the last time England made anything of actual value that the world clamored for? 

Jaguar, Rolls Royce, Bentley, Land Rover, Mini - all foreign owned.

Hell, even Dyson vacuums are overrated pieces of shit made in Chinese sweatshops.

Wed, 08/01/2012 - 19:54 | 2670651 LetThemEatRand
LetThemEatRand's picture

Agreed in that there are at least competing factions in Germany.  We shall see soon who is the strongest.  I'm guessing the bankers win out.  They have a good track record of destroying real economies and enriching themselves.

Wed, 08/01/2012 - 19:59 | 2670666 TruthInSunshine
TruthInSunshine's picture

This could be the reason England only half-footed into the Eurozone and kept the pound as its "own" currency, and explain the deep friction between Cameron and Merkel (or their respective underlings) at all stages Eurodebtocalypse.

Cameron wants any ECB rescue of the EU (and euro), that will necessarily have to financed by German taxpayers, predominately, to bail out London banking and financial institutions (that are severely impaired), first and foremost.

Wed, 08/01/2012 - 20:03 | 2670680 LetThemEatRand
LetThemEatRand's picture

Growing up in small town U.S.A in the 60's, who would have thought a guy like me would ever be rooting for Germany's industrial complex to win a "war."

Wed, 08/01/2012 - 21:28 | 2670780 TruthInSunshine
TruthInSunshine's picture

Every rational person should wish for and work towards the goal of curbing all subsidization by government (i.e. taxpayers, present and future) of all banking, financial or Wall Street institutions, which at present represent disproportionately massive % of GDP,  and that are collectively tantamount to a massive, parasitic drain on the real and productive sectors of the economy that produce real and beneficial products and services.

In 1968, which one of the last periods of time whereby the U.S. did not run national deficits, and actually had a fiscal surplus, manufacturing accounted for 41% of U.S. gross domestic product.  Financial services and banking accounted for 14% of U.S. gross domestic product at that time.

Today, flip those numbers around, which is where things stand in terms of respective share of gross domestic product, and it becomes easier to see exactly how and why the U.S. is following Britain path to debt servitude.

Wed, 08/01/2012 - 22:30 | 2670989 FreedomGuy
FreedomGuy's picture

TruthInSunshine, I think you are correct. I have seen arguments that are persuasive that it is the financial shenanigans we play with money that destroy real wealth and move real production overseas. Oversimplifying the argument it goes that money is relatively cheap and easy to create and things are difficult and expensive to produce. Therefore, in economies like the USA it is more profitable to play with money here which is cheap and move manufacturing overseas where it is cheaper. If you look at how much Wallstreet, banks, and the financial sector have risen as a part of economy since that 1968 you tend to give credence to the argument. Money comes here, manufacturing goes "there". It is all a fraud and a result of our monetary policies including fractional reserve banking.

What we see now in the USA and most of the world is the visible divorcing of the financial-monetary world from the real world of products and services.

Thu, 08/02/2012 - 03:04 | 2671274 CompassionateFascist
CompassionateFascist's picture

Terminal Jewification.

Wed, 08/01/2012 - 21:01 | 2670792 knukles
knukles's picture

Same background (albeit 50's) whodathunk that our Arch Nemesis and Central Bastion of Unholy Turrderism, Iran, which the West is Trying to Destroy, would be the folks committing bankers to death for fraud.... and some Great Financial News would be Provided by RT (Russian Telly)

The NWO is doing a magnificent job, Hegelian Dialectic wise.
Bloody Brilliant

 

Wed, 08/01/2012 - 21:55 | 2670910 crawldaddy
crawldaddy's picture

sorry to break it to you, there is no plan, there is no NWO.  The world is going into the shittier because there has been no long term planning, just drunken spending on debt.  All that is happening now is the credit lines are being closed and the bill is coming due.

There isnt some fucking dr. evil is some evil lair plotting all this.  Its rather a bunch of o greedy fucking humans being stupid.

Wed, 08/01/2012 - 22:35 | 2670999 FreedomGuy
FreedomGuy's picture

Crawldaddy, I am inclined to agree with you. I tend not to go for the conspiracy theories. However, I would see the world's central banks, therefore governments uniting in some fashion to "fix" this when it all breaks.

I would add to your observation of "greedy humans being stupid". I would add "and we gave them power over the rest of us."

Thu, 08/02/2012 - 02:21 | 2671239 Renewable Life
Renewable Life's picture

I think I fall somewhere in the middle, there is without question an organized "war" against independent sovereignty, planet wide......but on the other hand, if you think these idiot bankers and Ivy league elitist, who don't speak the same language, have somehow formed a workable conspiracy, that would lead to a governorable NWO, your smoking some good shit!!!!

It's one thing to sit at Davos and Jackson Hole and talk about fantasy dreams, while you get blown by a super model, it's quit another to execute and fund a planetary coup!!!!

Thu, 08/02/2012 - 02:57 | 2671269 CCanuck
CCanuck's picture

AGENDA 21

Wed, 08/01/2012 - 22:39 | 2671011 Haager
Haager's picture

Err, not exactly. The conspiracy-theory about illuminati is one issue, but the new world order is more or less planned, to some extend. Just look at the think-tanks AEP and Heritage about it, look at their theories about the middle east, look at the paragraphs of the UN-convent.

Furthermore, the european union tends to create one big europe, with one souvereign (the EU-government) and heavily reduced national souvereignity. At the end of the road any souvereignity other than the EU will be vanished.

Wed, 08/01/2012 - 23:42 | 2671107 decon
decon's picture

In total agreement crawldaddy, this is all the result of billions of humans individually acting on their greed and fear.  Not to say that certain individuals or groups don't have an outsized influence on outcomes but this is enabled by leadership always taking the short-term path of least resistence.

In a system that is even partially open to flows of capital between countries/cultures, wealth acts like water and seeks equilibrium.

What we're lacking are true leaders willing to make short-term painful decisions but with long-term sustainable benefits.

Thu, 08/02/2012 - 09:48 | 2671943 rwe2late
rwe2late's picture

Crawldaddy

There is confluence of interests between the heads of global corporations, certain global organizations (such as NATO and the IMF), various corrupt politicians, dependent dictators and sheikhs, and the world's wealthy elite.

The "conspiracy" element enters in when their plans and policies are formulated behind closed doors, out of the public eye, and typically presented in a deceitful manner to the public.

Wed, 08/01/2012 - 21:21 | 2670829 canardo
canardo's picture

Same here, my dad fought against the Germans in WWII, he hated their guts, and now here I am hoping the Germans will win this one. It feels weird.

Thu, 08/02/2012 - 03:11 | 2671279 CompassionateFascist
CompassionateFascist's picture

Your daddy was a sucker: WW II was a deathblow to Western Civilization. And Hitler didn't start it. Churchill and his Zionist handlers forced Chamberlain to backstab the Germans when they, as per prior instructions, went East.  

Wed, 08/01/2012 - 22:54 | 2671049 Calmyourself
Calmyourself's picture

LTER, make up your mind guy or gal??  We need to know how to ridicule you properly..

Wed, 08/01/2012 - 21:05 | 2670798 Nassim
Nassim's picture

Correction: "impaired" should be "impaled"

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

Thu, 08/02/2012 - 09:57 | 2671998 rwe2late
rwe2late's picture

LetThemEatRand

lest anyone forget, one of the "competing factions" in militarily-occupied Germany is the USA. US banking/financial interests will certainly demand consideration.

On a lighter note, perhaps Obama can use his popularity among Germans to convince them to "take one for the team."

Wed, 08/01/2012 - 19:59 | 2670667 Tippoo Sultan
Tippoo Sultan's picture

I clamour for a wedge of Stilton upon occasion, served with a box of Carr's.

Wed, 08/01/2012 - 20:25 | 2670734 Apostate2
Apostate2's picture

I crave a chunk of nealsyard Wigmore with a hunk of St John's sourdough. Far East doesn't do edible cheese or bread.

Circuses yes.

Thu, 08/02/2012 - 00:29 | 2671159 TruthInSunshine
TruthInSunshine's picture

London banksters crave spotted dick.

 

 

Thu, 08/02/2012 - 06:01 | 2671332 Apostate2
Apostate2's picture

Dysphemism is bankers' blood. I crave a good local cheese and bread-staff of life. But lamb shanks and spinach ricotta tonight. Jeuk (congee) for breakfast. Da da mien for dinner or jeu yim sha (only phonetics available).

Bon appetit.

 

Wed, 08/01/2012 - 20:19 | 2670716 Son of Loki
Son of Loki's picture

TIS, funny you bring this up. My friend was in China, and he tells me people prefer firstly German made goods...then Dutch....lastly, Hecho in USA saying, "they break too easily." 

 

As the World Turns, eh.

Wed, 08/01/2012 - 23:24 | 2671094 moonstears
moonstears's picture

Notice China made goods didn't make the list.

Wed, 08/01/2012 - 23:50 | 2671120 stocktivity
stocktivity's picture

Doesn't matter...China is at the top of Walmart's list

Thu, 08/02/2012 - 04:07 | 2671299 debtor of last ...
debtor of last resort's picture

Dutch goods are German goods in fact, we just trade them.  Sssttt...

Wed, 08/01/2012 - 20:48 | 2670768 fonzannoon
fonzannoon's picture

I was in high school in 1994 when Germany played Ireland in some big soccer (football, whatever) game. It was early 1990's anyway. Both of these kids were born and raised in the US. No real family abroad. They got into a fistfight during the game. Civilized kids....it's like in their DNA or something.

 

Wed, 08/01/2012 - 22:17 | 2670969 neptunium
neptunium's picture

Despite all the shit about Germany being the land of manufacturing remember that the only reason they're doing well out of it at the moment and for the past few years is because of their artificially cheap Euro thanks to all other Eurozone states (except for their besties) living in penury, the EURO is about 25% cheaper than the DM would be if it were to exit.

They have a ~70% service-based industry. 

 

 

Wed, 08/01/2012 - 22:25 | 2670980 TruthInSunshine
TruthInSunshine's picture

Cheap euro?

Germany's done extremely well as an exporter even when the euro bought 1.6 federal reserve notes, which wasn't that long ago.

If you want to talk cheap currency boosting exports, you need to look elsewhere.

Germany's done well as an exporter despite an expensive currency, not because of a cheap one.

Wed, 08/01/2012 - 22:42 | 2671019 neptunium
neptunium's picture

But 1.6 isn't expensive for Germany as an exporting nation - 2.0+ is where they'll be soon enough. I do agree with the premise of your statement but their traditionally strong export industries are also particularly vulnerable to pricing shocks - automotive especially. 

Wait till they go it alone and see how quickly their economy goes back to the pre-euro era. Germany's economy has done well out of the Euro, they got an undervalued currency just as the Italians, Spanish etc have an overvalued one, which is actually the proximal cause of this mess - this guff about "structural reform" is obscuring the reality that they'll be priced out of the market across a whole range of their strong export sectors the moment they decide to wave a fond goodbye to their weaker eurozone neighbours. 

They're damned if they do and damned if they don't, either way the notion of Germany as "golden boy" of Europe is soon going to be put out to pasture.

 

 

Wed, 08/01/2012 - 22:51 | 2671040 neptunium
neptunium's picture

And by that I mean they're either on the hook for trillions of dollars of debt that PIIGS will never repay or they leave and find themselves trying to export luxury mercs that are now 20-30% more expensive in real terms, worse, their industrial export industries will now find themselves competing with comparable products from across the Eurozone that are now 20-30% cheaper.

The model of an export-led economy is a good one, but for economies with the sorts of unionisation and employment law that encumber Germany it's a mixed blessing, it was only a few years ago that it was called "the sick man of Europe" and now it is hailed as some sort of economic model we should all be proud of, the Euro is the piece of the jigsaw that fits the required timespan.  

Thu, 08/02/2012 - 02:58 | 2671266 Ghordius
Ghordius's picture

TruthInSunshine is correct.

The "sorts of unionisation and employment law that encumber Germany" is in the past and over - the German Left, headed by Chancellor Gerhard Schroeder, reformed their labour laws with the Agenda 2012, as a flanking measure for the introduction of the EUR.

This is what transformed the "sick man of europe", not the EUR.

Thu, 08/02/2012 - 00:44 | 2671175 emersonreturn
emersonreturn's picture

does the royal firm count?

Thu, 08/02/2012 - 01:22 | 2671204 terryfuckwit
terryfuckwit's picture

As a patriotic Brit myself basking in Bradley Wiggins glory today I have to agree with yuoranalysis Truth... but hell leave the hoovers alone. I have had an origial Dyson for 10 year and they are simply superb

Thu, 08/02/2012 - 02:55 | 2671267 Joe A
Joe A's picture

De Gaulle was right when he opposed UK's entry to the EEC back in the 70s. They then introduced direct influence of Anglo-American financial system into the EEC and later EU. You know, the one that is preying on individual countries through speculation, CDS and interest rate fixing. They want the Euro to fail because if the Dollar loses its status as the world's currency, it is game over for the Anglo-American dominance.

Thu, 08/02/2012 - 02:25 | 2671242 GtownSLV
GtownSLV's picture

Merkel may relent but doubtful the German Constitutional court or Bundesbank will allow the charade. But before that's worked out, Denmark, Finland or maybe the Neitherlands jumps ship and leaves the EU.

Wed, 08/01/2012 - 19:41 | 2670627 fonzannoon
fonzannoon's picture

What about the option where Draghi announces that they have come together and are working on a plan to rabble rabble rabble. This unprecedented plan will show the true unification of all of Europe. The details are being hammered out. Just shut up and celebrate the announcement.

Wed, 08/01/2012 - 19:58 | 2670664 SHEEPFUKKER
SHEEPFUKKER's picture

Nice call. More plans about plans to save the Euro. This time, it's different. 

Wed, 08/01/2012 - 20:03 | 2670676 fonzannoon
fonzannoon's picture

I think it's from "Office Space" right? "Planning to plan"

Wed, 08/01/2012 - 20:14 | 2670702 fonzannoon
fonzannoon's picture

Someone junked "Office Space"?

wow.

Wed, 08/01/2012 - 21:57 | 2670918 crawldaddy
crawldaddy's picture

Its time to call in the Bob's

Wed, 08/01/2012 - 22:05 | 2670938 fonzannoon
fonzannoon's picture

" I celebrate his whole collection"

 

Wed, 08/01/2012 - 19:36 | 2670614 Phat Stax
Phat Stax's picture

No matter how much money there is, borrowing is harder than ever due to stricter lending standards.  

And there is not much money.

Yeah, that'll work.

 

Wed, 08/01/2012 - 19:40 | 2670624 Wags
Wags's picture

You have to admit those Goldman Sachs boys stick together.. It's going to hell in a wheelbarrow

Wed, 08/01/2012 - 19:44 | 2670634 runlevel
runlevel's picture

I love that picture.. 

Wed, 08/01/2012 - 20:06 | 2670687 Shizzmoney
Shizzmoney's picture

He should take that to the Casino and put every single dollar on "0"

 

:whynot

Wed, 08/01/2012 - 19:46 | 2670637 Snakeeyes
Snakeeyes's picture

Bet he does nothing and follows Dr Evil at the Fed. 

http://confoundedinterest.wordpress.com/2012/08/01/dr-bernanke-to-invest...

Wed, 08/01/2012 - 19:49 | 2670642 bigwavedave
bigwavedave's picture

Smart move by Hyper I think. Sometimes when your being moved into a box the only escape is to bite your handler. Fuck ze Germans. Lets print.

Wed, 08/01/2012 - 19:52 | 2670648 lolmao500
lolmao500's picture

And in other WW3 news...

Obama authorizes U.S. to support Syrian rebels (Reuters)

http://english.pravda.ru/russia/politics/01-08-2012/121804-russia_army_b...

The Russian Federation has fulfilled all terms of the agreement. And even more. I shut down not only the Cuban Lourdes but also Kamran in Vietnam. I shut them down because I gave my word of honor. I, like a man, has kept my word. What have the Americans done? The Americans are not responsible for their own words. It is no secret that in recent years, the U.S. created a buffer zone around Russia, involving in this process not only the countries of Central Europe, but also the Baltic states, Ukraine and the Caucasus. The only response to this could be an asymmetric expansion of the Russian military presence abroad, particularly in Cuba. In Cuba, there are convenient bays for our reconnaissance and warships, a network of the so-called "jump airfields." With the full consent of the Cuban leadership, on May 11 of this year, our country has not only resumed work in the electronic center of Lourdes, but also placed the latest mobile strategic nuclear missiles "Oak" on the island. They did not want to do it the amicable way, now let them deal with this," Putin said.

Wed, 08/01/2012 - 20:15 | 2670701 Son of Loki
Son of Loki's picture

"shovel ready" job creation....called war.

Thu, 08/02/2012 - 02:42 | 2671250 Renewable Life
Renewable Life's picture

Nuclear weapons my ass........what a joke and distraction!!! Russia, China, and every other leader on this planet knows what the game is about going forward.......land and resources!!!!

The Russians are headed back to Cuba, so they can start drilling for oil in the Caribbean, and open up that market to Russian grains, fuel, and goods!!! And while their at it, establish a naval and shipping center to refuel and regroup, so they can start easily moving arms and trainers into Latin Ametica ( Venezuela, Boliva, Argentina, etc).

America better wake up, our fantasy world is about ready to shatter!!! The Chinese and Russians are here to play ball!!!!

Wed, 08/01/2012 - 19:54 | 2670654 Jlmadyson
Jlmadyson's picture

EU broiling over day by day.

Fun times ahead!

Wed, 08/01/2012 - 19:56 | 2670656 Melin
Melin's picture

Mario elicottero

Wed, 08/01/2012 - 19:58 | 2670661 roadsnbridges
roadsnbridges's picture

But what of the children?

Wed, 08/01/2012 - 20:01 | 2670668 magpie
magpie's picture

Italy has no birth rate

Still, i have no reasonable idea why they kept the market propped so long even causing that KCG meltdown.

Wed, 08/01/2012 - 20:01 | 2670672 Cdad
Cdad's picture

They shall be served in gravy poured over crusty bread.

Wed, 08/01/2012 - 20:01 | 2670673 fonzannoon
fonzannoon's picture

Last night we all sat up debating QE and today we all watched CNBC (Or bloomberg). Tonight we will all debate Draghi and tomorrow am we will all watch CNBC. Tomorrow night we will all stay up and debate the NFP, then Friday we will all watch CNBC.

Next week when nothing changes and ZH posts an article showing CNBC viewership increasing we will all yell "Who the Fk watches cnbc!"

Wed, 08/01/2012 - 20:03 | 2670678 magpie
magpie's picture

I watch more CNBC than BB, their European segment/coverage is more professional.

Wed, 08/01/2012 - 20:16 | 2670707 BeetleBailey
BeetleBailey's picture

CNBC world is much more professional; they have to be. Traders watch it, and the mass US audiences are still asleep.

Not much fluff and ka ka from them there over in Europe; just the facts.

Around 5am, if you watch continuously, it morphs into the US version, full of crap and bullshit talk and more crap.

CNBC US is simply shit. Period.

Wed, 08/01/2012 - 21:11 | 2670807 knukles
knukles's picture

I agree that the after hours Asia CNBS beat the Bloomblurt West program (reruns of the days tripe)
I watch the stuff for the ticker tapes and big screen recaps of market actions with the sound off... and Betty Li or whatever her names is...
BUT BUT BUT
CNBS just got into bed with Dow Jones (goodie, goodie, goodie, MSM interbreeding amongst the Providers of Propaganda) right?
And so, WTF happens?

Live streaming of all the closed market recaps by DJ ticket composition.

As Tony Soprano was fond of pointing out, that's about as useless "as an empty gun."

 

Wed, 08/01/2012 - 21:49 | 2670894 TruthInSunshine
TruthInSunshine's picture

Meh cnBSc and Bloomturd are both proxy mouthpieces of the too big to fail and too incompetent to succeed without taxpayer teat status. Chuck Schumer, Michael Bloomberg nor any other elected official representing the entity that is New York City (that's Schumer's real constituency) would never allow anything to happen that would thwart the financial parasitism that feeds Wall Street.

SSDD

Wed, 08/01/2012 - 21:55 | 2670912 fonzannoon
fonzannoon's picture

Dude if you have another option I am all ears. Please?

Thu, 08/02/2012 - 02:28 | 2671165 TruthInSunshine
TruthInSunshine's picture

As far as mainstream channels that are going to give unbiased, non-bankster influenced, non-status quo groupthink?

I'm not aware of any outlets in terms of networks, cable stations, radio stations or other media, all of which is owned by 6 corporations (in the United States; that's 6 corporations owning each and every television network, cable station, radio station, magazine, newspaper, etc.).

It's all fruit of the poisonous tree.

Thu, 08/02/2012 - 03:52 | 2671292 bunnyswanson
bunnyswanson's picture

http://princevega.com/2012/08/02/cnn-ratings-continue-to-hit-rock-bottom/

 

CNN was down double digits across the board in July. Compared to July 2011, the network is -20% in Total Viewers and -23% in A25-54 in Total Day. In primetime, CNN is down -23% in Total Viewers and -26% in the demographic.

The ratings for July 2012:

Primetime (Mon-Sun): 488,000 Total Viewers / 149,000 A25-54
Total Day (Mon-Sun): 355,000 Total Viewers / 109,000 A25-54

Compared to the July 2011, Erin Burnett‘s 7pm hour — home last year to “John King USA” — is down -21% in both Total Viewers and younger viewers. “Piers Morgan Tonight” is down -18% in Total Viewers and -24% in A25-54 viewers. The 10pm edition of “Anderson Cooper 360? is down -34% in Total Viewers and -36% in A25-54 viewers.

Read more: http://nation.foxnews.com/cnn/2012/08/01/cnn-continues-disintegrate?intcmp=fly#ixzz22MaECsso
Wed, 08/01/2012 - 20:11 | 2670692 roadsnbridges
roadsnbridges's picture

I keep CNBS on to facilitate the afternoon nap.

Wed, 08/01/2012 - 20:16 | 2670700 kito
kito's picture

fonz...really...i dont watch cnbc....i doubt most on this site do...trying unplugging your television...it adds absolutely nothing positive to your life...........and dont worry about the eu, it will not break up any time soon, if ever......no more of a chance than qe happening soon or gold hitting 2000 in the near future..........

Wed, 08/01/2012 - 20:18 | 2670713 fonzannoon
fonzannoon's picture

Kito agreed about the eu. I also agree completely now about QE and managed to not owe you a turkey sandwich in the process which I am proud of. I kind of have to watch cnbc which I agree sucks. I think more people than you estimate watch it as well, including all the Tylers.

Besides, what else is there to talk about?

 

Wed, 08/01/2012 - 20:27 | 2670740 kito
kito's picture

dr engali is hiding.......he owes me that sandwich........too easy of a bet.....people are now waking up to the fact that bernanke doesnt print as a reflexive action....even tyler has faced that reality..........lots to talk about...have you started a garden?.........

Wed, 08/01/2012 - 20:45 | 2670764 fonzannoon
fonzannoon's picture

I was at my vet with my dog last week. He started bitching about all this stuff. Turns out he is basically a prepper. Funny who  thinks what these days.

I will be honest I have no garden. I am not handy. If the shit hits the fan I am hoping that I will have warned enough people in advance that I have some credibility on the other side of this mess. I have taken some other precautions that I think others will find of value as well. It would be so much easier for me if this stuff did not come to pass. But there's a shit storm coming. The question is, is it a tornado, or just a slow rising tide?

Wed, 08/01/2012 - 20:53 | 2670779 ZeroAvatar
ZeroAvatar's picture

Wow, you should be able to make a fortune with that talking dog, though!  And a prepper, too?  Dayamm!

 

Just kidding, fonz.  I DO have a garden, but, believe me, it's a lot of time hoeing, chasing moles, deer, rabbits, chipmunks, watering, etc. 

 

The effort to keep a 'garden' up is substantial.  The payback is almost not worth it.  It's more of a hobby.  Nice to know if we go grid down, though.

Wed, 08/01/2012 - 21:03 | 2670795 fonzannoon
fonzannoon's picture

I spent 3 years messing around with a garden and got nowhere. My 2 year old sprinkled some watermelon seeds a few weeks ago and they are growing. Figures.

For anyone local to NYC I say we save some cash, some metals and other stuff we can carry. Fire Island has their own generator. If we go grid down during the summer I say we all head there and throw one last party. I will bring my talking dog.

Wed, 08/01/2012 - 21:22 | 2670828 knukles
knukles's picture

My dogs don't talk.
They like to fuck a lot.
But won't even tell me to piss off when I tell 'em bad jokes.

But maybe even better than a garden, I bought a generator and a big ass huge neon 5 color sign.  So when the SHTF, I'll drag the generator outside, take off the muffler, start the fucker up, and light upthe sign which says  

      Booze Ammo & Pussy

And then when the rubes come a calling holding onto their drunken peckers, rob their asses blind and press gang them into work details for His Big Sister's Navy.

Fuck this shit.

Older guile beats young inexperience any day.
(Voice of experience)

Wed, 08/01/2012 - 21:25 | 2670844 fonzannoon
fonzannoon's picture

Yes I admit you are several steps ahead of me. I will be in an argument with my dog while praying for rain for my watermelon plant.

Wed, 08/01/2012 - 21:53 | 2670902 kito
kito's picture

Fonz I am no handy man either...the key is to befriend one...as far as gardens, find what grows for you. Everybody finds at least one or two veggies that cooperate with them.find your crop and grow alot of it. You can then barter away the excess for other produce that you are less adept at growing......

Wed, 08/01/2012 - 22:06 | 2670924 fonzannoon
fonzannoon's picture

Kito (or anyone) do you ever try to rationalize the incredible technological advances that we (by we I mean not me) have come to invent and think that it's going to come full cirlce with people bartering eggplant  for tomato's at the local square?

I know things are going to get out of hand eventually. But thats where we are heading? It's hard to wrap your mind around that. For me anyway it is.

Wed, 08/01/2012 - 22:27 | 2670983 kito
kito's picture

nobody really knows....but progress in the universe involves destruction and rebirth....nothing can defy that law...i believe we are entering a new paradigm shift, and its the shift that gets me nervous......lots of possible chaotic movement during the metamorphosis.........before the transformation is complete.....

Wed, 08/01/2012 - 22:36 | 2671004 fonzannoon
fonzannoon's picture

I think that what will look like a blip on the screen will consume my whole adult life. That kind of blows.

Wed, 08/01/2012 - 22:59 | 2671055 Calmyourself
Calmyourself's picture

 

OT but funny..

This guy sees a sign in front of a house "Talking Dog for Sale." He rings the bell and the owner tells him the dog is in the back yard. The guy sees a mutt sitting there."You talk?" he asks."Yep," the mutt replies."So, what's your story?"The mutt says "Well, I discovered this gift pretty young and I wanted to help the government, the CIA had me jetting from country to country, sitting in rooms with spies and world leader, cause no one figured a dog would be eavesdropping. and now I'm just retired."The guy is amazed. He goes back in and asks the owner what hewants for the dog. The owner says "Ten dollars." The guy says he'll buy him but asks the owner, "This dog is amazing. Why on earth are you selling him?" The owner replies, "He's such a fucking liar, he didn't do any of that shit."

Wed, 08/01/2012 - 23:12 | 2671074 moonstears
moonstears's picture

funny

 

Wed, 08/01/2012 - 21:05 | 2670797 bunnyswanson
bunnyswanson's picture

http://www.youtube.com/watch?v=tTC2EgI4DJI&feature=player_embedded#!

 

My take is a category 5 hurricaine is one its way to the US. 

Thu, 08/02/2012 - 01:38 | 2671212 Dr. Engali
Dr. Engali's picture

Hey I'm not hiding anywhere. I've been here all day. You said no QE before the end of the year and I said there would be. Our bet is still on. There is still 95 days until election time, and that is an eternity in politics and markets.

Fri, 07/06/2012 - 12:54 | 2592367kito

Vote up!
0
Vote down!
0
"i will bet you a ham sandwich that there is no qe till at least december/january........and only then will gold hit 2000........."

Your words kito. I'll enjoy that turkey sandwich ;->

Wed, 08/01/2012 - 20:05 | 2670681 tao400
tao400's picture

Can he do that without Germany's permission

Wed, 08/01/2012 - 21:24 | 2670835 knukles
knukles's picture

A young fellow in my freshman dorm used to take the big dumb-ass football player's toothbrushes and rub them in his ass crack when the jocks were in the shower.

Do you think he got permission?

Wed, 08/01/2012 - 20:06 | 2670685 bigkahuna
bigkahuna's picture

oh YAWN!

Wed, 08/01/2012 - 20:11 | 2670693 disabledvet
disabledvet's picture

"Germany is solvent." HAHAHAHAHA. That's a good one. If those trade flows halt and UBS blows up and take Switzerland with her you'll see a whole new definition of insolvency! Stay with gold...stay with the dollar sheeple!

Wed, 08/01/2012 - 23:07 | 2671065 moonstears
moonstears's picture

Stay with gold..."stay with the dollar sheeple!"...for now, I'd agree, Sir. 


Wed, 08/01/2012 - 20:12 | 2670695 Son of Loki
Son of Loki's picture

Germans work and produce value for a living. They will do well no matter what happens.

The rest of Europe, maybe not so well.

Wed, 08/01/2012 - 20:15 | 2670698 ZeroAvatar
ZeroAvatar's picture

That fukker pushing the barrow looks just like Draghi.  They all look alike.  Bunch of inbred elitist bastards!

 

 

 

 

Serenity Now. Unicorns. Peace. Love. Happiness. Goodwill To All.  Every Day In Every Way I Am Getting Better And Better.  See me, feel me, touch me. When you're all alone, and you're on the phone, who ya gonna call? For a good time, call a Banker.  Bankers do it with interest.  No penalty for early withdrawel. Life is like a stream...you flow along your course all day, with two banks to assist you.  Merrily, Merrily, Merrily, Merrily, Life is But A Dream.  I scream, you scream, we all scream for ice cream!

Wed, 08/01/2012 - 20:31 | 2670703 q99x2
q99x2's picture

That's what technocrats do. They did it in Argentina and the EU. And the FED is doing it in the US. That is how they take over countries. What are the Germans Dummkopfs?

They need to leave that bankster raided cesspool of EU city states that have been stripped of sovereignity. And, they should kick that heap of Deushebagnk and Bundesbank bankster debt out of Germany as well.

Wed, 08/01/2012 - 20:17 | 2670710 absente reo
absente reo's picture

Oh come on.  Germany wanted an independent ECB.  They got one.  So, why the complaints?

Thu, 08/02/2012 - 01:25 | 2671208 TIMBEEER
TIMBEEER's picture

Because the ECB is breaking the contracts. They have no permission for this indirect or direct government financing.

Wed, 08/01/2012 - 20:18 | 2670711 Cult_of_Reason
Cult_of_Reason's picture

This is pure B.S. Draghi is not as independent as Bernanke.

Bundesbank is the largest and the most important central bank in the euro system. ECB depends on the German support. Draghi cannot ignore Weidmann.

In 2010, Weidmann caved in (quietly) to buying Greek bonds. This time he is categorically against it.

Draghi will present his plan tomorrow, but it does not mean it will be implemented without the German support.

 

Wed, 08/01/2012 - 20:23 | 2670726 roadsnbridges
roadsnbridges's picture

One wonders what the exposure of the Bundesbank is to DB.

Wed, 08/01/2012 - 20:51 | 2670774 Cult_of_Reason
Cult_of_Reason's picture

Bundesbank's exposure to DB is irrelevant.

Draghi ignoring Weidmann (Bundesbank) would be the same as Draghi ignoring the German public, such a move would antagonize the German public against the euro.

In addition, many ECB officials are still bitter over last year when, after ECB bought Italian bonds, Rome backed off its reform commitments.

Moreover, "the move, according to Weidmann, would violate the ECB's charter, which prohibitis it from funding government debt."

"We are the largest and most important central bank in the Eurosystem, and we have a greater say than many other central banks in the Eurosystem."

"This means that we have a different role. ... We are the central bank that is most active in the public debate on the future of monetary union."

" The [ECB] must be aware that its independence obliges it to respect its own mandate and not to exceed it."

http://www.ibtimes.com/articles/369155/20120801/bundesbank-euro-debt-crisis-ecb-draghi.htm

 

 

Wed, 08/01/2012 - 21:11 | 2670809 chump666
chump666's picture

you are right.  Mario will just jawbone like any idoit.  The Euro Zone is doomed. 

Wed, 08/01/2012 - 23:22 | 2671090 Cult_of_Reason
Cult_of_Reason's picture

The only question is Merkel.

It is possible she caved in, but pretending (to her people) as if she is still against it. She has an excuse, “I could not do anything about it because I was away on vacation.”

 

Wed, 08/01/2012 - 22:29 | 2670985 andrewp111
andrewp111's picture

Actually, the ECB is MORE independent than the Fed. There is no Federal Supreme Court or Federal Legislature  that can overrule the ECB.  They are truly the highest authority in Europe.  They are the only EU Federal Agency with any real sovereign power. The only leverage the Germans have is to quit the Euro, and that they will not do.

Bernanke can be impeached and removed from office. Draghi cannot.

Thu, 08/02/2012 - 00:33 | 2671032 Cult_of_Reason
Cult_of_Reason's picture

Actually, Draghi/ECB can be sued and fired. Also, Germany/Bundesbank can stop funding to the ECB.

In fact, Draghi has already violated ECB ethics by being a member of international banks lobbying group and attending its secret meetings. This is a good legal reason to fire Draghi.

 

German coalition member urges "unusual" legal action vs ECB

"The European treaties allow member states to sue the ECB," Hahn, a member of the ruling centre-right coalition in the state of Hesse, told Monday's edition of Die Welt newspaper, adding that Berlin should consider opening a lawsuit against the bank via the European Court of Justice.

"It's time to open the toolbox of the (EU's) Lisbon Treaty and see how one can ensure that the ECB is brought into line to focus on its original task: monetary stability..."

http://www.reuters.com/article/2012/07/30/us-eurozone-ecb-germany-fdp-idUSBRE86T06S20120730

 

EU investigates ECB's Draghi following complaint

"Draghi is alleged to maintain close ties with the group and to participate in closed meetings," the transparency group said last month.

"(G30) bears all the characteristics of a lobbying vehicle for big international private banks and the President of the European Central Bank should not be able to be a member, due to concerns over the bank's independence," it said.

http://www.reuters.com/article/2012/07/30/eu-ombudsman-draghi-investigation-idUSL6E8IUL4J20120730

 

 

 

Wed, 08/01/2012 - 20:20 | 2670722 TahoeBilly2012
TahoeBilly2012's picture

This will all be bigger than the fall of the Soviet Union, Vietman and any other modern day "event". This is the BIG ONE! Ugly door A or uglier door B.

Wed, 08/01/2012 - 20:24 | 2670730 Doublescythe
Doublescythe's picture

Merkel will relent because she knows that she's got a nice private sector bank/PE vice chairmanship job that will pay her millions of $ (or a DM equivalent) once she's trounced out of office.

Of course, there will be the usual legal challenge bullshit that takes place in German courts, but that's just for show to temporarily placate the german masses while their standard of living completely tanks.

Obviously, this is a  near term end game scenario - I think the ECB will disappoint tomorrow, markets will take a hit, and as the markets are falling, it will Draghi the "appearance" of leverage and Merkel will "relent".

It's all a game my friends,  we just need to understand and profit from it.

Print away.

Wed, 08/01/2012 - 20:26 | 2670739 Die Weiße Rose
Die Weiße Rose's picture

Nein, nein - Es gibt doch nix Neues -

der Mario Dräghi ist eben ein totaler Voll-Idiot

ja wo ist denn das Geld, Zero - Mario ?

Pleite !

wr;)

Wed, 08/01/2012 - 20:28 | 2670741 HD
HD's picture

Mario will fall short but will it matter? Market is so insanely hopium driven it will just say, "Ben will print in September"" and nothing changes.

God forbid we get a sell off...

Wed, 08/01/2012 - 20:37 | 2670754 roadsnbridges
roadsnbridges's picture

The -8K NFP coming Fri will cause a brief dip.

 

BTFD!

Wed, 08/01/2012 - 20:57 | 2670785 loveyajimbo
loveyajimbo's picture

Good!  I am still way short the Euro... this should tank it... although I never try to bet too much on the reaction of sheep... last time Mario farted out the same rank gas, the euro went way UP?!?!?  Debasing the currency in a big way INCREASES its value?  I think I got some bad linguine...

Wed, 08/01/2012 - 20:58 | 2670786 Deathrips
Deathrips's picture

So I was watchin the Lebowski and I saw a similarity here....doesnt John Goodman ...look like Merkel? I could envision her saying Mark it Zero to Mario (aka smokey in the movie).

Sucks when germany gets pissed.

 

Mark it ZERO.

https://www.youtube.com/watch?v=8BdT5mFAk-Y

this is a bit longer 2 minutes...but the best quality.

Wed, 08/01/2012 - 21:01 | 2670788 Calmyourself
Calmyourself's picture

Ohh, I see the Germans are going to stop the printing.. Not sure if your aware but increasingly German men piss sitting down like women as a result of societal pressure.  Seems such a small inconsequential thing, it is not.  Feminized men do not have the balls to block anything that will intrude on their leftists dream of peace, cooperation and non-aggression, the real Germans have been suppressed for a long time. When they are back they will be fearsome, but that time is not now, wake me when  German men wet a toilet seat or get hungry..

Thu, 08/02/2012 - 02:48 | 2671258 Gavrikon
Gavrikon's picture

Seriously?  Then why is there a line for the urinals after morning coffee in the German office where I work?  While the toilet stalls are empty?

Their lack of guts has more to do with WWII-Guilt and the fear of being called the "N" word.  I wish to God they'd wake up, grow a pair, and start telling the rest of Europe to fix their own problems, and stop being an asylum seeker's paradise.  Taxes are too damned high here already.

Wed, 08/01/2012 - 21:00 | 2670789 same old story
same old story's picture

Hi Tyler,

 

you posted a few days ago an article that showed the politicians did what the CB told them and showed that the CB 's worked together to make sure that was the case.  Even germany's bank was on board to keep gold at a certain price.

Now you publish this and it implies that the politicians, germany's no less, might have the final say.  Really, would it not be more likely they might huff and puff for the pundits, but reality is they will go along with what the CB does.  Also whatever mario does has approval from all the other CB's and merkel and co are just acting.  

 

or do you think they the politicians really have some power?  

Wed, 08/01/2012 - 22:36 | 2671003 andrewp111
andrewp111's picture

US politicians have some power. They created the Fed by act of Congress, and could dissolve or restructure  it the same way. The ECB is written into the EU Constitution, and the ECB is truly the highest authority in Europe. It cannot be overruled or abolished by any legislative act. The only leverage Germany has is to threaten to exit the Euro, and Exit is the one thing they will never do - at least Germany will never be the first one to exit. So, Draghi is King.

Thu, 08/02/2012 - 03:04 | 2671273 Ghordius
Ghordius's picture

+1 for remembering that an Act of Congress can change the FED, this is something that many forget

but Draghi is not "king", despite the propaganda. the ECB decisions are made by 17 Central Bank presidents from the member countries, all political appointees

Thu, 08/02/2012 - 06:51 | 2671353 Dien Bien Poo
Dien Bien Poo's picture

i totally agree. Nobody here seems to understand the EU. They all regard it as a quaint country club. Merkel will do her usual volte face and bitch for the voters but in reality Germany has NO choice but to agree. How many BMWs will they sell at a 40% premium under a DM fiat. 

The way to view the EU is as an economic bloc that counters the US and vies for consumers monies in EM demographics. The prize is countless contracts to build power generation and communication infrastructure, entrench european brand dominance and of course the fat margin military build up thru the transfer of technology and cheap finance.

The price of failing to win this 21st century battle is far too big to argue about billions of bailout euros. The ultimate prize is worth trillions and a cheaper Euro is going to enable this to manifest itself with prejuidice. 

Stop watching CNBC and their pathetic attemts to confuse the issue. Stop trying to argue that printing is going to all end in tears. Its the new reality and truly the only way to avoid a banking collapse. This is a temporary phase like many others and we must learn to live and trade with it.

Wed, 08/01/2012 - 21:00 | 2670791 lolmao500
lolmao500's picture

- US infrastructure doomed

http://www.youtube.com/watch?v=AC7WUWRLSXw

- AIPAC pushes bill that will establish virtual state of war with Iran

http://www.councilforthenationalinterest.org/news/israellobby/item/1851-... 

- Germany participates in war preparations against Syria

http://www.wsws.org/articles/2012/jul2012/gesy-j31.shtml

- How Did 21-Year-Old Chavis Carter Get Shot In The Head While Handcuffed In A Police Car?

http://thinkprogress.org/justice/2012/08/01/623681/21-year-old-chavis-ca...

- Stockton CA is so bankrupt they don't have gas to fuel their cop cars

http://www.fox40.com/news/headlines/ktxl-cops-worried-about-empty-statio...

- Ron Paul kicking asses on the floor about Iran sanctions

http://www.youtube.com/watch?v=Bn1o2p9VBiw

- Postal Service set to default on payment

http://www.washingtonpost.com/politics/postal-service-set-to-default-on-...


Thu, 08/02/2012 - 05:33 | 2671321 toomanyfakecons...
toomanyfakeconservatives's picture

Those are some powerful headlines but they will pale in comparison to ** OBAMA, BRENANKE, AND HUNDREDS OF TOP TRAITORS TO THE CONSTITUTION ARRESTED! ** http://tinyurl.com/cd5cyjo/

Wed, 08/01/2012 - 21:10 | 2670803 chump666
chump666's picture

He'll do nothing.  Inflation, simple, it's the creeping death.

Wed, 08/01/2012 - 21:23 | 2670834 spanish inquisition
spanish inquisition's picture

In an earlier post I alluded to secret meetings without Germany as a joke. It looks like I was correct.

I have not read any of the EU documents. But in the fine print, listed under some sort of emergency powers will be extrajudicial power protocols. They are currently looking on how to trigger them......

Wed, 08/01/2012 - 21:34 | 2670862 banksterhater
banksterhater's picture

ARREST Draghi for ex-Goldman CONFLICT OF INTEREST, fumigate and cremate him afterwards. DO IT NOW!

Thu, 08/02/2012 - 05:24 | 2671320 toomanyfakecons...
toomanyfakeconservatives's picture

Agreed. The MASS ARRESTS are coming. Sure as the sun will cross the sky, they are coming... http://tinyurl.com/cd5cyjo/

Wed, 08/01/2012 - 22:17 | 2670967 Nawaralsaadi
Nawaralsaadi's picture

I certainly hope Draghi will teach Germany a lesson tomorrow, the ECB is not the German central bank, and it will do what is best for all its members. It is time to put Germany on the defensive, if they don't like it: there is the door, so much for the German pay master, they have paid zilch, they only loaned money with interest, and they are blocking the ESM. The UK/US is doing ok without a paymaster!. Getting Germany out of the Euro is the best thing that can happen for the rest of Europe, the Euro will devalue, and European industries will become competitive once again vs their German counter parts, the beauty of Germany exiting is that they will be no bank runs, Germany will still be able to owner its obligations to Europe with overvalued Dmarks, and cut their national euro debt oblifations significantly, of course over the long term their economy will suffocate with a strong currency, but this is what they want, so Europe should let them have it. Germany has a trading deficit with the rest of Europe, having them exit is a plus for everyone else except Germany.

God I am sick of the Germans and their dogma, every time this country has asserted itself it created chaos on the world, they should be fenced and locked out of Europe.

Wed, 08/01/2012 - 22:52 | 2671045 Lednbrass
Lednbrass's picture

I agree that they should get out- and when Greece, Spain, Italy, and finally France collapse they should laugh hysterically.

The US and UK are doing OK? I must be watching different countries, all I see are financial shell games to temporarily cover up very serious problems and delay the inevitable.

Thu, 08/02/2012 - 02:43 | 2671249 Gavrikon
Gavrikon's picture

Well, I am just appalled!  

Appalled that 3 people (at this point in time) have agreed with your idiotic rantings.

Do you really think that starting up the printing presses with Uncle Germany co-signing all loans for the profligate nieces and nephews is a GOOD idea?  It's not only a moronic notion, but immoral as well.

Some fucktards just can't stop fighting the Second World War.

Think I'll buy my German co-worker a beer in solidarity.

Wed, 08/01/2012 - 23:41 | 2671105 Tirpitz
Tirpitz's picture

Anybody read that article in the Sueddeutsche? It is mostly a play of words on whether Draghi gets will. At the start despite a broken coffee machine, and near the end at the 23 minds meeting tomorrow. I wouldn't take it too seriously.

Wed, 08/01/2012 - 23:46 | 2671114 boiltherich
boiltherich's picture

Hi all, speaking of inflation I just paid today $199 to get my computer out of the shop after being cleansed of viri.  Last time I had to do this it was $100, a couple years ago, that means in two years the price of looking at porn on the net has doubled, but they don't even count it because the bastards still do not have porn as a component of CPI.

Is there anyone here who does not do the shopping and bill paying for their household?  If so go away, you can have nothing to say about the cost of living that will add to the subject.

Most of you do not remember when hamburger went from 19 cents per pound to 29 cents per pound about two weeks before Nixon announced wage and price controls.  But I do, and I remember the gas wars in Lincoln NE in 1970 (I was 12) when I could put 10 gallons of gas in my Mom's car for a buck at this new fangled self service gas station thingy, you put a dime in the machine and you got a gallon of gas.  Six quarters for a fill up.  Across the street the Mobil station charged 18.9 and washed your windows, checked the oil, and gave you a set of 4 glasses with 10 gallons or more.  By 1973 we paid a buck a gallon and waited in line for that, a few years later they were rationing the stuff.  When it gets that bad you know the economy is off the rails, but, we had almost no debt then. 

Now, oil is at 88 and yet gas has gone up 40 cents.  The grocery isles are a living breathing nightmare of higher prices, the last time I saw food inflation like this was 40 years ago and I suspect it is all based on gouging related to news reports of drought.  Drought would raise prices a little, but it cannot explain the increases I have seen lately, what is really going on is preemptive price increases that probably are not justified, but man does it add to the profit margins.  Nothing new, world sugar prices have been under 20 cents a pound most of my life yet a 5 pound bag of sugar has skyrocketed to $3.48 at Slaveway.  That's one dollar for the sugar, and $2.48 for the bag I suppose.  More likely a buck for the sugar, 1 cent for the bag, 3 cents shipping and handling, and $2.44 for the profit and to pay a CEO millions for his genius at gouging the consumers without the government interfering with pesky RICO charges.

This is always how I envisioned the last few months of fiat, enormous inflation even as wealth craters, more and more of your disposable incomes just to eat and keep the lights on, but you can't keep up.  And it is not just that I am seeing 20% or so general unreported inflation out there, it is the rate of increase that is really scary.  Of course CNBS and the BLS will tell you there is NO inflation.  But then they have no credibility anyway. 

 

Thu, 08/02/2012 - 00:05 | 2671138 boiltherich
boiltherich's picture

By the way, the point is that there is no longer any connection between prices of anything be they debt, equities, food and energy/commodities, PM's, or the price of bribing your congressrat or local officials.  It is all measured in dollars (even FX and euro-anything) and the dollar has lost all meaning.  By the way, this is a great time to get your CPA/CFA, no rules means no wrong answers on your test.

Thu, 08/02/2012 - 01:02 | 2671190 Dr. Engali
Dr. Engali's picture

The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.

~Vladimir Lenin~

The best way to destroy the capitalist system is to debauch the currency.

~Vladimir Lenin~

Thu, 08/02/2012 - 00:15 | 2671146 boiltherich
boiltherich's picture

There is more than one way to collapse economies, one is to have everyone working but never enough money to pay for basics.  Daily pay raises, but price raises are faster.  Another is to have a lot of unemployment and elder fixed income people eating cat food because they have not had a raise in years. 

Bread can double, double again, double ten more times and then triple and the 1% just will not care, they own their housing outright so housing cost is no concern for them either.  People that can tag the taxpayer for $77,000 for a dressage horse do not even pay their own bills, they have accountants and assistants that do the dirty work of handling money.  Modern life looks more like Fritz Lang's Metropolis every morning I wake up and wonder what I have to cut from my budget this day. 

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