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If Greece Was California...

Tyler Durden's picture


For all its rhetoric, the current situation in the Eurozone should be very familiar to most Americans: after all it is merely a Federalist organization just missing one key feature: Federalism. At least for now. Whether Europe will succeed in reversing 20 centuries of nationalist pride, a multitude of languages, religions, cultures, histories, and superficial solidarity and friendliness covering generations of broad-based enmity, blood feuds and hatred, which is precisely what will be required (because the monetary union was merely half of the game) remains to be seen. It is likely that the stock market will force this resolution sooner than most expect. Then the question becomes: will Europe truly become the United States of Europe. And if so, what would the current Greek travails look like if they were transplanted to the state of California: another place which may soon be in dire need of a bailout. Luckily Jefferies' David Zervos has performed just the thought experiment: "let's assume the European monetary system structure was in place in the US. And then imagine that a US "member state" were to head towards a bankruptcy or a restructuring of its debts - for example California." The results are below.

Separation of Bank and State

The Euro monetary system is flawed. It is a system that was cobbled together for political purposes; and sadly it was set up in such a way that each member state retained significant sovereign powers - most importantly the ability to exit the system and default on debts in times of stress. There is virtually NO federal power in the Union, as witnessed by the complete breakdown of the Maastrict and Lisbon treaties. In fact, what we are seeing today is that the structure of the monetary system is so poorly designed, it actually creates perverse fiscal linkages across member states that incentivize strategic default and exit. Our new leader of the Greek revolt - Mr CHEpras - has figured this one out. And in turn he is holding Angie hostage as we head into June 17th!

To better understand these flaws in the Eurosystem let's assume the European monetary system structure was in place in the US. And then imagine that a US "member state" were to head towards a bankruptcy or a restructuring of its debts - for example California.

So let's suppose California promised its citizens huge pensions, free health care, all you can eat baklava at beachside state parks, subsidized education, retirement at age 45, all you can drink ouzo in town squares and paid 2 week vacations during retirement. And then assume the authorities never came after anyone who didn't pay property, sales or income taxes.

Now it's probably safe to further assume that the suckers who had bought California municipal debt in the past (because it had a zero risk weight), would quickly figure out that the state finances were unsustainable. In turn, these investors would dump the debt and crash the system into crisis.

So what would happen next in our US member state financial crisis? Well, the California governor would head to the US Congress to ask for money - a bailout. Although there is a "no bailout" clause in the US constitution, it would be over run by political forces as California would be deemed systemically important. The bailout would be granted and future reforms would be exhanged for current cash. The other states would not want to pay unless California reformed its profligate policies. But the prospect of no free baklava and ouzo then sends the Californians to the streets - rioting, looting and protesting ensue.

The agreed reforms by the Governor then fail to pass the state legislature. And as the bailout money slows to a trickle. The fed up Californians finally elect a militant left wing radical, Alexis (aka Alec) Baldwin, to lead them out of this mess!

When Alexis gets into office, the US officials in DC worry. They cut off all the Californian banks from funding at the Fed. But luckily, the "Central Bank of California" has an Emergency Liquidity Assistance program. This gives the member state central bank access to uncollaterized lending from the Fed - the dollars and the ouzo keep flowing. But the Central Bank of California starts to run a huge deficit with the other US regional central banks in the Fed's Target2 system. As the crisis deepens, retail depositors start to question the credit quality of the California banks; and everyone starts to worry that the Fed might turn off the ELA for the Central Bank of California. In turn they worry that California banks will not be able to access dollars. The depositors in California banks then start to pull their funds, and send them to internet banks based in "safe" shale gas towns up in North Dakota. Because in this imaginary world there is no FDIC insurance and resolution authority (just like in Europe), the California banks can only go to the Central Bank of California for dollars, who in turn continue to lend dollars to an insolvent banking system to pay out depositors. In order to reassure depositors, California might announce a deposit guarantee program - but with the state's credit rating is at CCC, the guarantee does nothing to stem the deposit outflow.

In this nightmare monetary structure, with regional central banks, ELA, Target2 and no FDIC, the prospect of a state default FORCES a bank default. The banks automatically fall when the state goes into financial turmoil because of the financial structure. A bank run is the only equilibrium in this system.

There is sadly no separation of member state financials state and bank financials in the European financial system. So what's the end game in our little US example above? Well, after the Californians take all the their dollars out of the California banks, Alexis realizes that if the central bank of California, along with the state and the banks default, the citizens will still have their dollar wealth preserved and the state could start all over again by issuing new dollars with Mr Baldwin's picture on them (or maybe Che's picture). This California competitive devaluation/default would then leave a multi-trillion dollar hole in the Fed balance sheet and the rest of the more responsible US states would have to pick up the tab. So Alexis goes back to Washington to threaten exit unless the ouzo and baklava keep coming. And here we sit in the current battle in Europe!

Can anyone in the US imagine ever designing a system so fundamentally flawed? Its insane! Without some form of FDIC insurance and national banking resolution authority, the European Monetary System will surely tear itself to shreds. In fact, as the Target2 imbalances rise, it is clear that Germany is already being placed on the hook for Greek deposits and other peripheral deposits. The system has de facto insurance and no one in the south is even paying a fee for it. Crazy!

In the last couple days I have spent a bit of time trying to find any legal construct which would allow the ELA to be turned off for a member country. I can't. It doesn't mean it won't be done (as the Irish were threatened with this 18 months ago), but we are entering the twilight zone of the ECB legal department. Who knows what happens next?


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Sun, 05/27/2012 - 18:44 | 2467854 devo
devo's picture

It should be if Greece were California.

Sun, 05/27/2012 - 18:45 | 2467856 Colombian Gringo
Colombian Gringo's picture


Sun, 05/27/2012 - 18:47 | 2467863 SilverTree
SilverTree's picture

If I wanted America to fail...

Sun, 05/27/2012 - 19:08 | 2467908 nmewn
nmewn's picture

...what would I do different?

Sun, 05/27/2012 - 19:12 | 2467918 Hulk
Hulk's picture

Absolutely nothing...

Sun, 05/27/2012 - 21:14 | 2468202 markmotive
markmotive's picture

Greece is Cali and Cali is America.

Welcome to the land where nothing's free.

Cue Niall Ferguson: Austerity vs. Stimulus

Mon, 05/28/2012 - 02:32 | 2468593 Oh regional Indian
Oh regional Indian's picture

Every truth-seeker here should study this web-site in and out.

Then sit-back and re-examine all of the foundation stones of your belief-systems.

The ensuing cog-diss will be the darkest before dawn, I assure you.

good luck. Seriously, it's all a scam.


Key Word CAFR

Mon, 05/28/2012 - 03:34 | 2468617 The Big Ching-aso
The Big Ching-aso's picture



All I know is that it's getting so bad in California San Francisco is issuing I.O.U.B.J.'s.

Sun, 05/27/2012 - 19:13 | 2467920 knukles
knukles's picture

Fuck all nothing.

Sun, 05/27/2012 - 20:21 | 2468085 Spitzer
Spitzer's picture

The auther is a fuckin fool

Sun, 05/27/2012 - 20:44 | 2468133 Troll Magnet
Troll Magnet's picture

obamney would never allow california to fail. too much money...holy shit, is teh gays gettin' married?!

Sun, 05/27/2012 - 20:57 | 2468159 sessinpo
sessinpo's picture

That could have been said about Greece and it was by certain Europeans. At some point, entities become to big to bail out as Greece is. The truth is, there was little to gain by keeping Greece in the game. It became a politican and economic headache not worth the billions. To much money. Not much money in a bankrupt state.

Sun, 05/27/2012 - 23:41 | 2468433 Augustus
Augustus's picture

The married Gay Life is so much simpler.  They have no worries about the future of their children.  Spend it Now or Never has so much more appeal.

Sun, 05/27/2012 - 21:55 | 2468262 BlueCollaredOne
BlueCollaredOne's picture

Don't know if you're trying to be ironic or not. Author is spelled this way. Spitzer is the man though, it's a shame the public can't accept the fact that some men just like hookers. I'm sure some bankers would be in jail if they could.

Sun, 05/27/2012 - 22:21 | 2468302 Ahmeexnal
Ahmeexnal's picture

Even Jesus Christ surrounded himself with hookers.

Many say he married one.

Sun, 05/27/2012 - 23:11 | 2468376 Ahmeexnal
Ahmeexnal's picture

T.J. Hooker.

How could a cop series with a name like that become the most succesful role for James Tiberius Kirk?

Mon, 05/28/2012 - 04:57 | 2468651 The Alarmist
The Alarmist's picture

You are really giving short-shrift to Denny Crane! IMHO, that was his finest role, and he looked like he enjoyed doing it.

Mon, 05/28/2012 - 00:20 | 2468490 prole
prole's picture

Show me the ZHer who complained of Spritzer's dalliance with his courtesan?

I believe our scorn is earned by the fact that the POS hypocrite jailed and ruined other men and women for  participating in the same flesh trade as the fake lying two-faced politician himself.

Spritzer is the epitome of government: "Rules for thee, not for me" I condemn him to the lowest circle of the inferno

Mon, 05/28/2012 - 05:00 | 2468525 Harlequin001
Harlequin001's picture

Shouldn't you be dead by now?

What happened to the 'if I can't live free I'd rather die' bullshit you were complaining about?

yeah, suuure you would... evidently you're full of it, hypocrite.

So you condemn him to 'the lowest circle of the inferno' for.... wait for it... paying for sex, the oldest game in the history of mankind.

Do me a fucking favour... Prole, that's obviously an anagram of thick fucking twat.

Mon, 05/28/2012 - 11:01 | 2469257 prole
prole's picture

You are the hypocrite and the proof is you are an open liar and defending the hypocrite Spritzer.

I did not complain of his whoring at all, yet you straw man me as such? You are a liar and you use lies to score small talking point hits on me. Go ahead and lie your character shows.

And why should I be dead? Maybe I'll live for a thousand years.

Read my post liar, and you will note I condemn him to Hell for hypocricy, and for lying and bearing false witness against his ZH neighbor I'll toss you in with him.

Go back and read all my posts on ZH and see if I ever comdemn anyone for whoring, or even mildly complain? I think it should be legal you dolt, but Statists like you and Spritzer lock men and women up for the flesh trade. Probably just another hobby you share with your co-religionist Spritzer

Mon, 05/28/2012 - 12:14 | 2469427 Harlequin001
Harlequin001's picture

Woah there hoss. Spitzer, his name is Spitzer. If you're going to have a go at someone you should at least be able to get some basic facts right, and his name would be a good start that way at least we know we're both singing from the same fucking song sheet eh. What you're referring to is a soft drink.

'why should I be dead? you said if you can't be free, which you clearly feel you aren't that you'd die, yet here you are gobbing off at a good man with your I'm-holier-than-thou-attitude for doing nothing more than what is clearly legal in most parts of the civilised world' Stop point scoring, it just makes you look like what you are, a prick. You make up these statements as you go along without any intention of justifying or keeping to any of them. You said if you can't be free, you'd die, and we can all tell from your incessent fucking whining that you aren't, yet here you still are, ever the hypocrite.  

Every time you type a word I know you just reneged on a deal. Now if you wouldn't mind going doing what you said you'd do and topping yourself for us, slave boy I'm sure the world will be a much better, and much quieter place. and we won't all need to wade waist deep through your bullshit anymore either. You lied, pure and simple, you make false statements on a daily basis to whatever suits your whim, and it's no good denying it now. You lied. You're still here therefore you lied. Clearly you have a problem with the English language but maybe I can help. '...for  participating in the same flesh trade as the fake lying two-faced politician himself" - sounds pretty clear to me.

This bit, however, does not ...'lying and bearing false witness against his ZH neighbor' honestly, what the fuck are you talking about? I only restate back to you the bullshit you said to me and everyone else.

And as for this, 'Maybe I'll live for a thousand years.' you truly are a fucking nut job. I give up!

Mon, 05/28/2012 - 02:27 | 2468584 BlueCollaredOne
BlueCollaredOne's picture


This isn't a forum for people to try and display spectacular vernicular (It rhymed) They are missing you here.

Spitzer vindicated himself when he appeared in the documentary "The Inside Job"

Fuck you

Sun, 05/27/2012 - 21:24 | 2468220 Freddie
Freddie's picture

Callie-PORN-ia is Greece.

Sun, 05/27/2012 - 19:13 | 2467919 WmMcK
WmMcK's picture

Greece:California::Germany:________ NH?

Sun, 05/27/2012 - 19:23 | 2467945 Manthong
Manthong's picture

It's just a good thing for us that the people in Texas don't mind picking up the tab for the Governor Moonbeam and Mexifornia.

Sun, 05/27/2012 - 22:36 | 2468221 AssFire
AssFire's picture

Oh, we mind...In fact; we feel Germany's pain.


Mon, 05/28/2012 - 02:11 | 2468580 Manthong
Manthong's picture

Comparatively, the good news for Texas is that while Spain will cost Germany more than Greece, Illinois will cost Texas less than California.

                    So cheer up!   : )


Sun, 05/27/2012 - 19:24 | 2467946 TJ00
TJ00's picture

New SAT question

Greece is to the EU what California is to the _______.

Sun, 05/27/2012 - 20:02 | 2468055 dougngen
dougngen's picture



Sun, 05/27/2012 - 20:15 | 2468074 jekyll island
jekyll island's picture

California is MUCH larger than Greece, much more important economically.  And just as screwed, faceplant IPO aside.  

Sun, 05/27/2012 - 20:23 | 2468095 Spitzer
Spitzer's picture

California is the biggest state in the dollar bloc and Greece is the smallest state in the Euro bloc. There you go...

Sun, 05/27/2012 - 20:59 | 2468166 sessinpo
sessinpo's picture

And if TPTB can't and aren't willing to continue playing with Greece, how long will they throw money in a bigger hole?

Sun, 05/27/2012 - 21:07 | 2468184 goldfish1
goldfish1's picture

Answer: Diebold bails them out.

Polls: Greek's pro-austerity parties gaining  sure sure

Sun, 05/27/2012 - 21:34 | 2468236 Spitzer
Spitzer's picture

Eventually they go bankrupt like Iceland and greek bond holders get shafted. That doesn't mean the Euro currency is doomed.

Sun, 05/27/2012 - 22:25 | 2468304 Ahmeexnal
Ahmeexnal's picture

Greek bond holders have already been shafted.

And the euro was doomed from it's inception.

Only a matter of days until fraulein Merkel's charred remains are found near the entrance of her bunker.

Mon, 05/28/2012 - 00:36 | 2468516 Spitzer
Spitzer's picture

And the euro was doomed from it's inception.

Its no coincidence that the US lost control of the gold market months after the Euro was introduced. Notice what the price of oil has done since the Euro came out ?

Bond holders are shafted and the Euro is still worth more then the USD.

Mon, 05/28/2012 - 02:06 | 2468572 Tom Green Swedish
Tom Green Swedish's picture

Markets are retarded. All stock basically move in lock step (besides ones with low volume, and dividends), because the bankers commditized stocks and they all move the same way except for higher and lower prices from the mean (beta).  Its really quite dull.  How is the Euro worth more than the USD?  Can you get more from a Euro than a dollar?  Who gives a crap about money besides women?  You all act like a bunch of little whores crying over money.

Sun, 05/27/2012 - 23:23 | 2468404 jekyll island
jekyll island's picture

That is baked in all ready.  No fiat currency is ever doomed, until it is.  California going the way of Greece would capsize the economy.  It would be 2008-2009 on steroids. 

Mon, 05/28/2012 - 00:04 | 2468465 Weimin
Weimin's picture

Exactly! and worst case eurozone would just let Greece go and live with the (manageable) consequences and Greece will suffer big time. the US on the other hand is very unlikely to kick Cali out for the right reasons.

Mon, 05/28/2012 - 02:40 | 2468598 ChickenTikka
ChickenTikka's picture

Istanbul was Constantinople.

Greece was never California.

If I were Tyler Durden then I wouldnt care about grammar.

Sun, 05/27/2012 - 18:48 | 2467858 Tom Green Swedish
Tom Green Swedish's picture

Greece, Facebook, Politicians and Bankers suck. Gold, Silver and Oil are cool. I'm a Zerohedger.

Sun, 05/27/2012 - 18:47 | 2467860 Colombian Gringo
Colombian Gringo's picture

If greece were california, instead of lubricants, they would use Tziki sauce before performing backside sodomy.

Mon, 05/28/2012 - 00:01 | 2468462 Augustus
Augustus's picture

Tziki sauce with jalapenos if used in California sodomy.

Sun, 05/27/2012 - 18:47 | 2467862 ThisIsBob
ThisIsBob's picture

Actually Greece is Dallas-Ft. Worth (economy size) with a stock market capitalization smaller than Facebook.

Sun, 05/27/2012 - 18:49 | 2467867 Mark123
Mark123's picture

You seem to suggest that deposit insurance is a great thing?  All it has done in USA is to lull the public into ignoring the problems in their banking system and making the problem all that bigger.


I think in the long run Europe will be in better shape that the USA because they will have to fess up sooner and deal with REAL issues. 

Sun, 05/27/2012 - 19:13 | 2467921 narnia
narnia's picture

These clowns are doubling down on big government. They aren't close to facing the music. Neither are Americans. The people controlling the guns are no where near giving up either. I don't see any winners here.

Sun, 05/27/2012 - 19:15 | 2467924 Joe The Plumber
Joe The Plumber's picture

In the long run european demographics are worse than the usa

Europe will not be recognizable in 200 years as it becomes the Western Caliphate

Sun, 05/27/2012 - 19:19 | 2467938 Joe The Plumber
Joe The Plumber's picture

As one example Spain was populated by eastern european visigoths among other early roman peoples and the original native populations now are small isolated and live mostly in mountainous rwgions.

Huge population transfers abound in european history. Nothing more to say

Sun, 05/27/2012 - 23:20 | 2468395 takinthehighway
takinthehighway's picture

Anyone who has ever played Risk knows the truth of your statement.

Mon, 05/28/2012 - 02:06 | 2468574 Ghordius
Ghordius's picture

+1 Spain was already once part of the Western Caliphates. Visit the great mosques that where converted to cathedrals after the "Reconquista".

Mon, 05/28/2012 - 04:59 | 2468653 falak pema
falak pema's picture

what we call blacks and browns and whites will be as relevant to the world in two centuries and being a Marylander or Californian in the USA of the 50s. Don't look at pigment look at the awesome evolution of human culture, good and bad, that is in the pipeline. Tipping times means big changes ahead. Our yardsticks are outdated just as newspapers don't make sense to the Internet generation. Just as Gutenberg and Columbus changed the world then. 

Mon, 05/28/2012 - 05:34 | 2468675 Psyman
Psyman's picture

Yes, the future of humanity is one ugly mess of mud people ruled by the Jews from their seat of power in Greater Israel.  Global genocide via the destruction of all unique cultures and peoples.  All while claiming to embrace diversity and multi-culturalism.

Mon, 05/28/2012 - 08:59 | 2468925 hornster
hornster's picture

Europe does seem to reinvent itself every 50 years.

Mon, 05/28/2012 - 05:06 | 2468658 Psyman
Psyman's picture

The Jewish genocide of whites is going exactly according to plan.  Western Europe and North America will be devoid of white power blocs well before the 200 year time frame you speak of.  Seems whites are just a little too smart, and much too rebellious for the Jews to let them live.  Thus the past century has seen a genocidal war against whites by the Jews.


Luckily for the Jews, whites are very obedient to authority, so long as it is not heavy handed.  So the environmentalism/birth control propaganda has effectively gutted white birth rates.  And mass immigration from the third world combined with "Democracy" ensures that whites will be powerless and victimized by the new majorites in their own lands within just a few decades.


Russia and Eastern Europe are the only long term hope for survival that the white race has.  Short term, Australia is still 93% white, but that will be rapidly altered as the Anglosphere is under the iron heel of the Jews (just look at immigration policies and demographic shifts in the U.S., U.K. and Canada).

Sun, 05/27/2012 - 20:22 | 2468088 Whiner
Whiner's picture

And their private sector, non-bank debt is just a smidgin of ours! Still, it's gonna hurt, hurt bad for a long time.

Sun, 05/27/2012 - 20:28 | 2468111 natty light
natty light's picture

+1 mark123


Sun, 05/27/2012 - 21:03 | 2468178 sessinpo
sessinpo's picture

No one knows at this point. It's to early to tell what will develop on the other side. For all we know, we could have Europe implode and Russia and China picking up the pieces. It's all conjecture at this point. Maybe they bleed themselves slowly like Japan or maybe they make real reforms.

Sun, 05/27/2012 - 21:08 | 2468186 miro1a
miro1a's picture

I love it when sheep quote the fact that something is FDIC insured as an end all argument to the safety of an account.  Things really "don't compute" when you tell them FDIC is broker and can't evin begin to cover losses.

Sun, 05/27/2012 - 18:53 | 2467875 lolmao500
lolmao500's picture

Who cares, zombies have invaded Miami... Long ammo!

Naked Man Eating Victim's Face Shot And Killed By Miami Police: Report

The officer, who has not been identified, approached and saw that the naked man was actually chewing the other man's head, according to witnesses. The officer ordered the naked man to back away, and when he continued the assault, the officer shot him. The attacker continued to eat the man, despite being shot, forcing the officer to continue firing. Witnesses said they heard at least a half dozen shots.

Sun, 05/27/2012 - 19:04 | 2467897 Uncle Remus
Uncle Remus's picture

Wait - does Miami PD use .40 cal? 'Cause, you know, I be connecting the dots...

Sun, 05/27/2012 - 19:16 | 2467929 knukles
knukles's picture

Ha ha ha ha ha ha
The epitome of Conspiracy Theories.


Sun, 05/27/2012 - 19:14 | 2467911 Disenchanted
Disenchanted's picture



Someone emailed me that and when I saw it a little bit ago that's the first thing I said to my wife...fucking zombies.


I'm a stranger in a strange land.


btw didn't that cop watch the walking dead...ya gotta shoot em in the head. /sarc

Sun, 05/27/2012 - 19:42 | 2467952 Joe The Plumber
Joe The Plumber's picture

I saw a guy eat his own shit and smear it all over the seclusion room walls for around 30 hours or so. Family was mad that we didnt stop him. Yet it took six family members holding him down to get him to the hospital and i had three dainty little nurses on the unit

He later told us it was ecstacy. He was probably mildly hyperpyretic too like the miami zombie was theorized to be. Any of the stimulating hallucinogens, or even cocaine and amphetamine, , that act on dopamine or serotonin can do it

Mon, 05/28/2012 - 00:10 | 2468474 Calmyourself
Calmyourself's picture

Okay, fess up what the hell kind of plumber are you?  Urologist maybe?? You  know a bit more than payday is Friday and shit runs down hill at 7% grade..

Sun, 05/27/2012 - 19:21 | 2467941 nmewn
nmewn's picture

From all appearances this looks like a "pro-wrestler" on the skids, down on his luck, crying out for help.

Won't someone help?

For just a dollar a day you can sponser a retired pro-wrestler suffering the ravages of steroid withdrawl and popularity neglect.

Please call 1-800-88nmewn and make the most generous contribution you can...operators are standing by.

Thank you.

Sun, 05/27/2012 - 19:47 | 2468001 Uncle Remus
Uncle Remus's picture

Only if I can score an unused barf bag autographed by Mickey Rourke.

Sun, 05/27/2012 - 20:00 | 2468052 nmewn
nmewn's picture

lol...would you settle for a faked robo-signed Dusty Rhodes coffee mug?

Sun, 05/27/2012 - 23:14 | 2468384 Ahmeexnal
Ahmeexnal's picture

Why unused?  A barfed one would implicitly be autographed.

Sun, 05/27/2012 - 21:01 | 2468174 dbomb12
Mon, 05/28/2012 - 07:39 | 2468747 Disenchanted
Disenchanted's picture



excerpt from that...LOL!



Why a zombie apocalypse may be more real than you think


The average American consumer is already a half-zombie right now. They eat prion-infected meat; they drink fluoride in the water; they get vaccinated every year with neurological irritants (adjuvants); they watch network television news for "programming" and they take psychiatric medications that alter their brain chemistry. That pushes quite a large number of them into the "functioning zombie" realm of cognitive dysfunction.

In other words, they still manage to dress themselves, eat some food, use the toilet and punch a time card working some government job, but behind the apparent human face, they are already 50% zombie.

It won't take much to push these near-zombies over the edge into total zombiehood. A bit of radiation, a couple more winter flu shots, or even a series of neurologically-engineered red flashes broadcast on the evening news could activate the zombie brains of the American masses, causing them to spill out into the streets in their underwear, with Doritos crumbling down the front of their wife beater T-shirts, mouths gaping wide open as they stumble down the sidewalks of America's suburbs looking for fresh flesh to feed upon.

This part is not fiction, by the way. I'm serious about this. The zombie mind of the masses has already been prepped by mercury poisoning, pesticides, fluoride, aspartame and other chemical exposures. It will only take the right trigger to unleash the zombie masses, at which point you will definitely wish you went beyond the CDC's silly advice and got yourself a 12 gauge (or a really good pair of sneakers with which to flee).

The real question is: Do you have enough zombie ammo? And how fast can you reload? Sadly, the CDC did not address these questions. The truth is that most people do not have much zombie ammo at all, so after a few rounds, it's going to be like click... pause... gobble, gobble, slurp. And then suddenly you're a zombie and you'll be roaming the streets of a large American city looking for fresh flesh, much like a Congressman or the head of the IMF.

Learn more:
Sun, 05/27/2012 - 18:53 | 2467876 TrainWreck1
TrainWreck1's picture

It would call for something colossal, like a giant Yanni concert, to bring all fiscal parties together in harmony.



Sun, 05/27/2012 - 18:54 | 2467879 CPL
CPL's picture

It's the worst position to be in.  Broke and printing IOU's on political motivations that were demented to begin with.


Only parallel insane idea in the past century of history was the League of Nations, which is as useless as its more modern counter party the ECB/EU.  I would point out the UN but it's about to collapse on itself for an entirely different set of reasons along with the security counsel.

Sun, 05/27/2012 - 19:03 | 2467880 SgtSchultz
SgtSchultz's picture

Here is a potential theme song for the Eurozone........."Doomed"


Sun, 05/27/2012 - 18:57 | 2467881 tim73
tim73's picture

"Whether Europe will succeed in reversing 20 centuries of nationalist pride, a multitude of languages, religions, cultures, histories, and superficial solidarity and friendliness covering generations of broad-based enmity, blood feuds and hatred, which is precisely what will be required (because the monetary union was merely half of the game) remains to be seen."

That is just laughable bullshit. You visited Europe last time in the 1950's? The only time there is somekind of nationalist pride is during some sport event, football or ice hockey or during Eurovision maybe.

European youngsters used Interrail pass to visit other European countries via trains already in the 1960's. Today there are EVERY DAY 30000 flights inside EU, so it is quite interconnected, similar to US eastern seaboard. Both Baltic Sea and Mediterranean sea are filled with so many ships of all kinds that in some places they had to install air traffic like ship traffic control to avoid collisions! Just go look at 

Sun, 05/27/2012 - 19:05 | 2467902 The Alarmist
The Alarmist's picture

Funny thing ... we were watching Eurovision last night, and when the Shakira-looking Greek hottie came on, my better half said, "I hope Greece don't win, because if they do, they won't be able to afford to host next year's contest."

Sun, 05/27/2012 - 19:09 | 2467910 Uchtdorf
Uchtdorf's picture

Sorry, for your short-sightedness, that is. Ever heard of The Marshall Plan? US taxpayers financed that nonsense. The Western European nations effectively castrated their military strength because Uncle Sap was guarding them and giving them cash. Now the debt-financed, non-productive spending buzz is wearing off. Sobriety sucks and the old rivalries will again find themselves at war.

Sun, 05/27/2012 - 19:26 | 2467951 tim73
tim73's picture

Germany was bombed pretty much all to hell during WWII. München, Berlin, Köln...all almost totally levelled. How many US cities were firebombed? Not one.

Yes, Marshall plan was helpful but it did not even begin to cover the damages caused by the war. Europeans had to work 10 hard years before cities started to look somewhat normal again. Still, there are bombs in Berlin that sometimes require an evacuation of 5000 citizens, whole city blocks.

It is also a myth that Americans alone somehow guarded Europe during Cold War while we were just singing and dancing. Bullshit, most European men (also in the other side), today in their 30-70s, had to go to army unlike Americans, when they were about 20 year olds. Some liked it, some thought it was just a year wasted. Tens of millions of men. Except for Vietnam, YOU WERE the ones singing and dancing, behind your big de facto mercenary army.

Sun, 05/27/2012 - 19:47 | 2468002 Joe The Plumber
Joe The Plumber's picture

Yeah we all have our crosses to bear on either side of the pond

Its time to pull all the usa bases out of europe. Why does the usa need to finance 140 bases in germany?

Mon, 05/28/2012 - 05:13 | 2468666 Psyman
Psyman's picture

Because the Anglo-Zionist empire currently enjoys global hegemony.  We aren't there to "protect" Germany, we are there to occupy Germany.  Let's them know who's STILL boss (America and its Jewish masters).

Sun, 05/27/2012 - 19:53 | 2468030 SgtSchultz
SgtSchultz's picture

Myth that America guarded Europe during the cold war?

Let’s not forget the development, deployment, and maintenance of a highly credible nuclear deterrent against the Soviet Union and its Warsaw Pact allies; it can be argued that America offered Europe the stability to rebuild during the post war era and beyond.

Sun, 05/27/2012 - 20:12 | 2468066 Uncle Remus
Uncle Remus's picture

It might be argued that since the US taxpayers footed the bill for all the nuclear deterrence, we in effect subsidized European socialism.

Sun, 05/27/2012 - 20:24 | 2468098 knukles
knukles's picture


Sun, 05/27/2012 - 20:38 | 2468122 nmewn
nmewn's picture

Pretty much.

Maybe plant some trees as a parting gift.

Mon, 05/28/2012 - 01:26 | 2468558 e-recep
e-recep's picture

what usa did back then was for his own good. what usa is doing today is still for his own good.

go to europe and ask people if they are thankful to usa. i bet you'll be very surprised.

capitalism is greed no matter what. read marx, he predicted that things would come to this point. you think big capital cares about the middle class or the politicians can stop them? ridicilous.

capitalism is not free market, it actually hates it. wake up america, you are still daydreaming.

Mon, 05/28/2012 - 05:21 | 2468655 Rynak
Rynak's picture


Do people always have to throw in terms like "capitalism" or "communism" or "socialism" or whatever, to make their point, even though none of the premises of either one's proponents were ever implemented, yet all of the defects that every proponent of those ideologies despises about his/her enemy ideology?

What's my point? You had a pretty good argument based on simple facts, up to questioning how germans felt back then about the USA, and how they feel now about it..... and then you torpedoed yourself by hijacking that argument yourself, for the sake of another ideological fanboy rant.

Here's what someone living in germany, and who pretty much thinks that all those ideologues (no matter which camp) are idiots.... experienced in this regard:

Up to about 9/11, pretty much everyone in germany, and i suspect other european nations as well - was an USA-fanboy.... we looked up to the USA, saw them as "the ideal", and were thankful for what they did do, and were doing.... pretty much regardless of the dirty truths behind MSM TV education. USA == Hero .... HELL YEAH!

That was the state of populist opinion up to at least the middle of the 90s. Beginning in the 90s, the undisputed glorification of the USA, in germany (and i suspect europe) began to show first signs of significant dissent. It first was provoked, by globalist-style corporatism and massmedia aggressively (force-fed style) conquering europe. Up to that point, corporate culture, product brands and media still mainly had a strong local cultural stamp (even if that stamp was pro-usa)... but in the 90's this local corporate and media culture began to be full-frontally REPLACED by USA corps, as opposed to local corps glorifying the USA.

This created first significant counter-opinion.... not as a majority opinion of the country, but the sentiment was strong enough, for every citizen knowing of it's existence.

Phrased another way: up to that point, we were germans glorifying the USA. But then, it seemed as if we quite suddenly were made americans chanting  "USA yeah!", which provoked quite a bit of uncomfortable feelings (You can deduct from this, that "local pride" never was abolished... just made a slave to a master).

Then 9/11 happened, and from there in just a handful of years, the whole "USA-yeah!" went to the toilet. In a matter of years, the majority of the population, which for half a century glorified the USA, thought of it as "arrogant imperialist assholes, who's style now strangely reminds us about a shameful part of our own history".

Mon, 05/28/2012 - 08:10 | 2468790 THX 1178
THX 1178's picture

Bravo! +1

Mon, 05/28/2012 - 07:37 | 2468743 Tarfeather
Tarfeather's picture

Yes, I'm sure that if Russia had started a nuclear strike, all of Europe would have been spared. Taking and fortifying west-germany was done out of pure concern for its inhabitants, and the fact that it was the only thing standing between Russia and the US' european allies at the time had nothing to do with it. The germans should be so very thankful they hadn't been turned into a folk of peasants, because then they would have had no chance to be the US' bitches in the upcoming military conflicts. Oh wait.

Sun, 05/27/2012 - 20:02 | 2468056 joe6px
joe6px's picture

Your first argument is true, except for Hawaii, but unrelated to anything.  Your second argument is also true, however, without the military ability of the US, Europe would have fallen in a conventional assault.  As to your whining about compulsory service, an all volunteer force has proven to be very effective.

Mon, 05/28/2012 - 01:27 | 2468495 oldman
oldman's picture



The real "helpful' was the fact that US companies 'investments' were loans or loan guaranteed and we made a ton of money with this corporate wealfare 'backstopped' by the US taxpayer.

More importantly, we got the global market shares of the formerly two most productive economies in the world and owned those markets for 40 years.

This was big stuff, and I am glad we had the Marshall plan. My generation was the one that owned the world for most of its lifetime and benefitted enormously; and, even though we paid close to fifty per cent of our income for various taxes, we managed to acquire, through savings, a modicum of what now is considered wealth.

That's all history. Now, we have had to give up market share---give it back, I might say because it was only a borrowed asset----and learn to live on less, Actually, this is one the key reasons I left the US 20 years ago--I had made enough ($100,000) and thought someone else might like a chance. This is not a joke because even though I am not neccessarily so generous----sharing is the real deal if we are going to live in peace.


Mon, 05/28/2012 - 05:15 | 2468662 Psyman
Psyman's picture

Most Americans do not have passports.


Most Americans have never left the country.


Thier laughable knowledge of history and geopolitics comes largely from the history channel.


That's who you're dealing with here on Zero Hedge.  I see it in their comments about "Germany gonna invade France!"  And similarly stupid bull shit.  They have no clue just how cosmopolitan European youths are in their political outlook.  These people disagree with you about modern Europe are 60 year old imbeciles burying silver coins under the crawl space of their shitty house in some shitty part of America, pay them no heed.

Mon, 05/28/2012 - 09:59 | 2469089 BernankeHasHemo...
BernankeHasHemorrhoids's picture

You are SO right. Imagine the state of ignorance that a presidential candidate (Romney) was criticized for his ability to speak French by other candidates. Americans are the stupidest people on the planet. They do not travel so they continue in their ignorance to blindly insist "USA #1" even though the country is becoming a Third World shit hole.

Mon, 05/28/2012 - 12:39 | 2469511 BooMushroom
BooMushroom's picture

Ooh, lookit me! I'm WORLDLY! I woke up in Germany, and visited Liechtenstein and Switzerland on my way to Milan for supper. I've traveled, and am far superior to a boorish American!

Fuck you. I live in Central California, and do that much driving just to get to L.A. My state is bigger than most Euro countries. We're bordered by exactly two countries, and can fit most of your continent inside our one country.

I've traveled 7800 kilometers east to west, and never left the country. Hawaii>California>Maryland. That's further than Lisbon to Tehran.

Sun, 05/27/2012 - 18:59 | 2467888 carbonmutant
carbonmutant's picture

...they'd be building a high speed rail line from Athens to Mt Olympus

Sun, 05/27/2012 - 19:47 | 2468003 LeBalance
LeBalance's picture

would that be one way for the virgins and the other way for boons of the Gods?

how is MtO different from Berlin, in the present circumcision?

Sun, 05/27/2012 - 20:25 | 2468102 carbonmutant
carbonmutant's picture

It take a true visionary to propose building a High Speed Rail to Heaven when you can't afford to repair your roads...

Sun, 05/27/2012 - 21:09 | 2468188 Jena
Jena's picture

Are you back talking California again, carbonm?

Sun, 05/27/2012 - 23:29 | 2468417 carbonmutant
carbonmutant's picture


Sun, 05/27/2012 - 21:04 | 2468180 stocktivity
stocktivity's picture

If I am a really good boy, can I be the virgin inspector?

Sun, 05/27/2012 - 19:02 | 2467892 The Alarmist
The Alarmist's picture

I kind of get the impression that California is Greece on steroids. I hope Guv Brown has been taking good notes, because unlike the Eurozone, it is taken as settled law that CA's exit from the Union is out of the question, i.e. bailout is a certainty if and when the day of reckoning comes.

Sun, 05/27/2012 - 19:49 | 2468007 LeBalance
LeBalance's picture

I am Governor Jerry Brown...


CaliPORNia Uber Alles.


Oh Jello you SEER!

Sun, 05/27/2012 - 19:05 | 2467901 Bill D. Cat
Bill D. Cat's picture

All is well , futures are green .

Sun, 05/27/2012 - 19:11 | 2467904 tim73
tim73's picture

The difference between USA and EU is that EU is still quite loose FREE TRADING union. EU yearly budget is about 135 billion euros while US Federal budget is whopping 3800 BILLION DOLLARS!

US States are obedient little bitches to Washington DC, crying for new pork projects and federal money all the time. Eurozone nations are quite independent, despite having common currency. They still have many more tools available unlike US States in this crisis.

US States cannot tax independently so much because federal government is already taking most of the money to itself and where that federal money go? One trillion goes to finance idiotic wars and bloated military while even the basic US infrastucture (road, rails, bridges) is already in dire need of repairs.

Sun, 05/27/2012 - 20:13 | 2468068 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

Why do you have to turn every post into a pissing contest? You seem to have many good points. Don't kill your message by being such an angry, insulting and perpetual fog horn.

Sun, 05/27/2012 - 20:56 | 2468158 natty light
natty light's picture

Good analysis; hope he hears it because he has as you say good points.

Sun, 05/27/2012 - 20:49 | 2468147 nmewn
nmewn's picture

"US States cannot tax independently so much because federal government is already taking most of the money to itself and where that federal money go?"

Just as most Americans aren't up on Euro countries tax schemes, euros aren't up on ours.

Several of our states have income taxes to go along with federal income taxes. Then heap on property taxes, sales taxes, gas taxes, fees, excise etc. etc.

The cummulative effect is...for many...become a parasite, the initiative to earn a wage & be independent of anything or anyone is design or circumstance...take your pick.

Sun, 05/27/2012 - 22:30 | 2468314 Joe The Plumber
Joe The Plumber's picture

I kinda like a loose federation but they made a mistake and lost regional flexibility with a commOn currency

Mon, 05/28/2012 - 00:43 | 2468519 jekyll island
jekyll island's picture


You make some good points, but the bottom line is that both have a central bank and central planning.  Neither will be free until the charters for the central banks are canceled and we go back to using real money, not fiat. 

Sun, 05/27/2012 - 19:11 | 2467914 knukles
knukles's picture

Son, I'm from California.  The land of milk and honey.  The American Promised Land.  Land of Governor Moonbeam and Linda Ronstadt.  Home of Drugs, Sex and Rock & Roll.  Home of Hollywood and good solid clean Uber-Liberal Thinking.  I'm from the Land of Opportunity.  I'm from the land of Where America's Going and I can tell ya', it ain't pretty.  The land of free love and trendy thinkin'.  The land that mastered the 8 lane expressway perpetually trudging at 3 mph 24/7/365.  The Land of Eric Estrada and CHIPS, Batman, the Gong Show, the Real Housewives of Beverly Hills and Storage Wars. 
Alas, we can take no credit for Jersey Shore. 
That's where I'm from, son. 
The land where spectators are beat to death at baseball games and people are shot for wearing the wrong color hoodie.  The land where all the radioactive shit from Fukushima is gonna wash ashore and pollute the whole of America thereafter.  No son, it don't stop at the California border, just gets there, first.. 
The land where John Denver died.  They never found his head in Monterey Bay BTW, but to this day dive, still searching, looking.  Find his head, open a shrine on Cannery Row, Make a Million. 
Goddammit, the land of drive through churches and Sunday liquor sales.  The land of Disney, Callaway and hot rods.  The land where almost all America's green shit is grown.  Lots a cows, too.
Land of wine and populated by immature egotistical people taking themselves way the fuck too seriously and can't even take a joke.
Land of the consumer movement, feminism and plastic surgery.  The Land where 18 y/o birthday girls are gifted with breast enhancements from their loving fathers.
That's right son, I'm from the Real America.
And if this is where America's going, then spend all you got while you got it, live for the moment, pretend there is no God but yourself, vote for the Democratic party state super-majority thereby raining taxes with impunity, handing all your personal responsibilities over to the state thereby absolving yourself of any and all responsibility and party like it's fucking Armageddon.
Almost nobody has a sense of humor here anymore except those of us in Recovery, graduating from Fight Club.
Good luck grasshopper, as if being from any other place makes you any different.
And remember: "You are not special. You are not a beautiful or unique snowflake."(h/t Fight Club) "You're the same decaying organic matter as everything else".
Welcome to America.
America the Beautiful, Land of the Free and Home of the Brave.  Land of Eddie Bernays and most under-informed, over-entertained egocentric, spoiled, childish, immature people on earth.
Welcome to the Credibility, Liquidity and Dialectic Traps
Yes, welcome home, America.

Sun, 05/27/2012 - 19:16 | 2467930 Hulk
Hulk's picture

Holy shit !!! I had no idea John Denver's dead head is missing...

Rocky Mountain High, Pacific Ocean Low. Children, always practice switching to your reserve fuel tank before actually needing to do so. Hulk is over and out...

Sun, 05/27/2012 - 19:19 | 2467936 knukles
knukles's picture


He panicked ....

I know, that's just wrong...

Mon, 05/28/2012 - 00:24 | 2468498 Calmyourself
Calmyourself's picture

I thought a seagull killed him, through the windshield... Great just great, even my green jokes get f'ed up around here...

Mon, 05/28/2012 - 02:24 | 2468586 jekyll island
jekyll island's picture

They found his head, but I think it was a closed casket funeral: 

On October 12, 1997, Denver was killed at the age of 53 when his experimental Rutan Long-EZ plane, aircraft registration number N555JD, crashed into the Pacific Ocean near Pacific Grove, California, while making a series of touch-and-go landings at the nearby Monterey Peninsula Airport.[33] National Transportation Safety Board]] (NTSB) accident ID is LAX98FA008.[34] As the crash badly disfigured Denver's head and body, making identification by dental records impossible, records of his fingerprints taken from his arrests for intoxicated driving were used to confirm that the fallen pilot was indeed the singer

Sun, 05/27/2012 - 19:20 | 2467939 Everyman
Everyman's picture

I think we ALL should drink a toast to knukles.  Well said, man, well said!

Sun, 05/27/2012 - 19:39 | 2467986 Bollixed
Bollixed's picture

Yes, as someone who spent 30 years in Lost Angelus I think Knukles nailed it. If God is ever going to give the world an enema she's going to stick it in California.

Sun, 05/27/2012 - 19:48 | 2468005 Amish Hacker
Amish Hacker's picture

Hear, hear! I'm from California too, and I think you about nailed it, knukles. I would add only the Summer of Love (and the Autumn of Antibiotics).

Sun, 05/27/2012 - 19:30 | 2467968 Rubbish
Rubbish's picture

I really do hate this place, but the money is good.

Sun, 05/27/2012 - 19:40 | 2467989 Mox E
Mox E's picture

What do you mean we can't take credit for Jersey Shore?  It's an LA based production company and one of my clients. 

Sun, 05/27/2012 - 19:50 | 2468014 knukles
knukles's picture

Is da Joisee culshur, uddah wize zid be Val goils

Sun, 05/27/2012 - 19:46 | 2468000 foxmuldar
foxmuldar's picture

Have you considered moving? Why would anyone want to live in California except perhaps Illegal aliens. 

Sun, 05/27/2012 - 21:11 | 2468193 stocktivity
stocktivity's picture

....and don't forget....OJ was found not guilty.

Sun, 05/27/2012 - 22:55 | 2468350 Let The Wurlitz...
Let The Wurlitzer Play's picture

Also, the land of fruits and nuts.


Mon, 05/28/2012 - 00:29 | 2468505 Calmyourself
Calmyourself's picture

Like my grandfather used to say, "the country tipped all the nuts rolled to California."

Mon, 05/28/2012 - 00:16 | 2468484 guinea
guinea's picture

The burning question is when is Mexifornia going to declare independence?  

Mon, 05/28/2012 - 00:35 | 2468515 oldman
oldman's picture

Goddammit, Knuckles,

You make me home sick with all those great memories of the 60's, 70's and early 80's!!!!

The leading edge of the planet----where nothing was ever impossible, and everyone was doing sooooo well.

All over---all gone---But that is not to say that it didn't happen----and we were a part of it!!!

Long live California!!!!!!!!!!!!!!

I would go back to THAT place rather than anyplace else in the world----           thanks       om

Mon, 05/28/2012 - 02:09 | 2468576 Raymond Reason
Raymond Reason's picture

Drive through churches?  Shit, i had to google that.  Incredible.  And land of the immigrants too.  But the immigrants that migrated to Cali aren't representative of the cultures they came from.  They are the fruits and nuts of their respective homelands, embracing the Cali culture, buying breast implants for their daughters and sons, joining the frontrunners of the human stampede to Hell.   

Mon, 05/28/2012 - 03:57 | 2468627 oldman
oldman's picture


I left florida in 1959 where mom and dad both had to work seven days a week just to pay rent and put food on the table. When I got to LA I found truck drivers working 60 hours in five days making enough money to buy a house, a car, a pick-up truck w/ camper and whatever else the family required while mom watched the kids and cooked and cleaned the house and was happier than any of the blue collar moms in florida.

One word was the difference: union---solidarity between workers to demand a fair price for their labor. Now, most here at ZH have little idea of that difference because 'solidarity' is just a word and they have been brainwashed(although, I don't know how this is possible) against a union, so it is a dog-eat-dog world---just like it was in good old right to work florida in 1959.

Also, it was OK to live next to people of other colors and beliefs-----and college was free----

and then reagan became governor and the later became president and California was completely fucked.

just a little history for you to put in your story---maybe you were too late to enjoy it, but THOSE were the good ol' days                    I was lucky enough to have been one of the fruits and nuts         om


Sun, 05/27/2012 - 19:25 | 2467948 Joebloinvestor
Joebloinvestor's picture

California, where the Obama administration fucks Nancy and the MJ dispenseries and says he can't do a thing about it.

Calif, where they pass a lottery with a fucking lie about how it is going to add to the schools budget.

Calif, where you get to meet the US equivelent of Tepco.



Sun, 05/27/2012 - 19:26 | 2467958 misled
misled's picture

i rarely comment, but damn knukles... you made your point. +1

Sun, 05/27/2012 - 19:33 | 2467972 engineertheeconomy
engineertheeconomy's picture

Invalid comparison, Greece is subject to unpayable usury in a Ponzi scheme, unpayable because there's no reciprocal exchange. California is subject to payable usury because it's a welfare state, a reciprocal exchange.

For those of you that didn't get that... in Greece money goes out in insanely high interest payments to terrorist loanshark bankers, but no money comes in to Greece, so the money does not riciprocate and is unpayable unless they go back to those very same loanshark bankers to borrow even more money to pay it with.

In California, money goes out to pay the terrorist loanshark bankers, and is replenished by welfare, foodstamps, emplyment insurance, medi-caid, medi-cal, etc, etc, etc. This completes the cycle and therefore is reciprocal.

This article compares Apples to Oranges.

Dissapointing, I expected more from you Tyler.

Sun, 05/27/2012 - 20:02 | 2468053 Uncle Remus
Uncle Remus's picture

Macht nichts. Fuck California.

Mon, 05/28/2012 - 02:10 | 2468578 jekyll island
jekyll island's picture

You have captured the essence of how the financial elite confiscate wealth.  I'm sure there will be a lot of vampire squid with seaside Mediterranean mansions. 

Sun, 05/27/2012 - 19:33 | 2467973 Piranhanoia
Piranhanoia's picture

Shorter story;  We have managed to take everything of worth that isn't nailed down in our decades long attempt to loot your state, and now your assets and your asses are ours.  We have your gold, you have our railroads. We have managed to purchase your legislators so that they do our bidding and they assisted in the gang rape of your beautiful state.  We installed all our own banks, insurance companies, energy companies, finance companies in an attempt to control your every discovery and find a way to buy or steal it.

   Now it's your turn California,  we have taken all the hopes and dreams, you get the potholes, and they need fixing.  Please get out of our offices and don't come back.   

 Jeffries,  honestly.  

Sun, 05/27/2012 - 19:37 | 2467985 Arnold Ziffel
Arnold Ziffel's picture

Just keep the free Baklava, Booze and Babes coming and everythng 'll be ok.

Sun, 05/27/2012 - 19:42 | 2467992 Danielvr
Danielvr's picture

ZeroHedge really is the 4chan of finance isn't it?

The entire article is based on the premise that EU nations do not offer deposit insurance. That premise is wrong. See

Sun, 05/27/2012 - 22:30 | 2468315 css1971
css1971's picture

The premise is that the national deposit insurance from an insolvent nation doesn't mean diddly.

Mon, 05/28/2012 - 00:14 | 2468481 Augustus
Augustus's picture


that is the point, isn't it?  getting an insurance payment for the euro account at a Greek bank, paid in drachmas, will not be very satisfying.  One of the EU pols was honest enough to comment that when the bank run starts, getting the money out of that bank is only the only rational thing to do.

Sun, 05/27/2012 - 23:07 | 2468371 jomama
jomama's picture

dafuq did i just read?

Sun, 05/27/2012 - 20:21 | 2468083 natty light
natty light's picture

Why imagine it it is for all intents and purposes happening.

Sun, 05/27/2012 - 20:24 | 2468087 virgilcaine
virgilcaine's picture

where would cali be without porn, drug and pros related industries.?. they account for most of their Gdp.

Sun, 05/27/2012 - 20:25 | 2468103 surf0766
surf0766's picture

No EU contry/ financial institution thinks the Euro Union will collapse but the are all dam sure prepping for it. The can is no just foil.

Sun, 05/27/2012 - 20:27 | 2468110 Downtoolong
Downtoolong's picture

I’ve been having exactly the same comparative thoughts between the U.S. and Europe for the last year or so. I mostly agree with the post.  In summary, the Euro is more in jeopardy than the dollar primarily because Europe is attempting to overlay a central monetary system on a decentralized government system. You can’t have it both ways. It is fundamentally flawed. It seems to fly in the face of the old adage, money follows power. In the U.S. , the central monetary system is aligned with the central government. But, is it better, or just different than a decentralized government and monetary system. That’s the tough question to answer. I’m sure it depends in part on how much the central government feels a need to manipulate it’s money and currency; you know, like we do in the U.S.

Sun, 05/27/2012 - 20:57 | 2468161 spekulatn
spekulatn's picture

Time's Andrew Ferguson has an important piece in the current issue of the magazine that details the many signs of how the nouveaux-estatist feast off of taxpayer money as government continues to expand, despite the overall struggling economy. Here are key excerpts from the article that should shock you at to what is going on in Washington D.C. (And this report doesn't even include reports of the use of a date rape drug by a senior executive at a major D.C. think tank):

Sun, 05/27/2012 - 21:13 | 2468199 Stimulati
Stimulati's picture

The California hate on this site is odd in its intensity.  Long story short, California equals Germany if Germany decided to bail out Greece.  California gets back 86 cents for every dollar it pays into the federal government.  Small, poor red states are surviving on the largesse of California federal transfer payments.  Think about what those poor red states finances would look like if they didn't get federal transfer payments from wealthier states like California, New York, and Texas.

Sun, 05/27/2012 - 22:16 | 2468295 Jena
Jena's picture

While that is true, the continued state political incompetence is well-publicized and therefore California is held up for great mockery.  (Maybe other states are equally poorly run, I don't know.  I only watch this tragedy/comedy.)  Nothing is done to solve the budget problems, the educational system is going from awful to dismal and the legislature seems more interested in the perks of the job than doing anything substantive.  Tax dollars are funneled to public union pension systems and any of the tax increases proposed in the upcoming referenda will go there too, despite what the political ads say.

There are some inland pockets that are still pretty sane and not much like LA if one must live in the state for one reason or another.

Mon, 05/28/2012 - 00:24 | 2468496 Augustus
Augustus's picture

California receives a fee from everyone in the whole country.  All of the Import/Export offshore trade moves through the state.  There is nothing superior about California, except the location allows for the handeling charges to be imposed there.  The rules and regulation imposed have made it almost impossible for there to be actual goods production in the state.  They provide some unavoidable services and call it a superior contribution.  It is simply more Moonbeam Economics.  Somewhat akin to the Arabian Gulf countries including oil sales in GDP numbers and claiming that they have a productive population, highest in the world.

Sun, 05/27/2012 - 21:25 | 2468224 world_debt_slave
world_debt_slave's picture

live free and die, bitchez!

Sun, 05/27/2012 - 21:38 | 2468239 OC Money Man
OC Money Man's picture

In May 2009, I testified in front of Barney Frank as the only voice opposing the U.S. Government from guaranteeing all debts of the states.  There were seven "experts" giving testimony.  Four were Republicans and three were Democrats. I was the only person testifying against the bailout.  Essentially, I said guarantees would break the AAA credit of the United States.  Here is the YouTube clip:

Sun, 05/27/2012 - 22:32 | 2468316 Milestones
Milestones's picture

Knuckles--really got into to your narative post on California. I was one of the true fortunate ones into Cal. Move there from Pittsburgh in 1945 and stayed around for all the great music from Miles, Bruebeck, Mulligan to Big Jay McNeeley, Brazil 66 and had the good luck to move out in 1966 and see other places. 

Ya nailed it my man--right to the the 8 lane freeway. Thanks          Milestones

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