Interactive Infographic Of The Doomed European Financial System

Tyler Durden's picture

With Europe set to open in a little over 12 hours, and with rumors of Greek default once again flying around in their private taxpayer funded jets (only to turn back to their point of origin shortly after take off), we wish to remind readers that a chart is worth a thousand words. In this case several charts, courtesy of Reuters, which has created the ultimate in interactive data presentations on the Euro crisis. The data aggregates exposure across public debt, bank and non-bank private sectors, debt maturity, default risk. Note that the charts (based on BIS data) only include external-looking debt held on the books, and not debt subsequently repoed back to the ECB, for which the intermediary exposure is back to domestic banks, and the final is to Europe's taxpayers themselves.

First, the doomed periphery...






and on to the core:




and France:

And Germany:

Whose debt matures when, on an absolute basis:

And proportional:

Bank default risk is close to all time highs across the board:

And last, and certainly most important, is the chart Zero Hedge created back in February 2010 explaining why Europe is doomed.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
oogs66's picture

Great to get some details. Something big seems to be up this weekend One last gasp to save it all?

markmotive's picture

Although most think I'm crazy, I believe the hyperinflation case is stronger than ever.

In fact, there is a meaningful risk that the entire Western World hyperinflates at the same time.

maxmad's picture

It is called Hyperstagbiflation, bitchez!

espirit's picture

Time to be handed a hot potato or an empty bag.

Timmah tried to convince everyone else the hot potato was the best choice, as long as he didn't become the recipient.

eisley79's picture


goldm3mb3r's picture

All those countries, borrowing so much money, to spend on total bollocks.

falak pema's picture

Oligarchical golden bollocks...that grow like water mellons.

Vampyroteuthis infernalis's picture

No, no it is called debt-deflation bichez!!

Careless Whisper's picture

<======== NOT going to feel sorry for France.

Spitzer's picture

debt deflation is a myth you fool. Show me a debtor country who's currency rose in value as their economy imploded...

Vampyroteuthis infernalis's picture

@Spitzer, 1990's to present Japan. 1930-1933 USA. Deflation is what happens before the currency collapse takes hold.

nasdaq99's picture

look at the US.  bernanke has been printing like a madman trying to stave off debt deflation here and is barely getting 1%.  this could be the big one, now that all developed markets are broke.  it won't be inflationary.

Troy Ounce's picture



Krugflation, I would say.....

Snidley Whipsnae's picture

oogs66... "Something big seems to be up this weekend "

I got that feeling Friday. About 3am Fri, prior to LBMA opening, gold moved up sharply from $1770 range to about $1820 range...on little news that I could find. Of course there is the ongoing banking/soverign crisis around the world so extracting signal from noise is not so easy.

Next week could certainly see fireworks. Benny is having a 2 day meeting with fraudster pals so who knows what new schemes the thieves might dream up.

LawsofPhysics's picture

I got the same feeling as well.  Moved back to cash and put another 50K in a 1 year CD at 3.5%  figured what the fuck, another chunk that I don't have to worry about and that will generate some income without thinking about it.  Does anyone think that a world default might be an option?  I mean, even China will default when there are no paying customers left.  I say America should invite them access to resources at a mega premium and pay off our debt with gold (if it exists).  They will build some new infrastructure for us in the process and employment will shoot up.  We did a similar thing with the railroad expansion in the 1800's.  Funny how that was also a chaotic period.


Oh regional Indian's picture

LOP, are you suggesting the JooBilly? Unlikely. Verrrrry unlikely.

Till there is a public that can be squeezed, public will be squeezed. All this HUGE< BIG< SCREAMING HEADLINE< END OF THE BANKING WORLD noose is only because they will suggest a system that will replace these horrible, irresponsible banks with a transnational Bank (and that is no BiS). 

I have another thought though, one that me makes me a leedle more nervous, sitting where I am. And that is, that Asia will take the brunt one more time in a can-kick a la 1997.

Asia (minus China) is so far in the hock or on the carry trade funded, credit fueled hig that they can be played one more time with no significant blow-back.

Then, maybe by year-end, the Faust (I mean First) world will really get it in the nuts.

But that is just a conjecture. I'll say this though, things on the ground are not good. In any dimension except what is magically being reported in the MSM.

Just a crappy situation all around.


Where do we fit?

Snidley Whipsnae's picture

"We did a similar thing with the railroad expansion in the 1800's. Funny how that was also a chaotic period."

I would characterize the railroad expansion era as more than 'chaotic'. It was rife with cronyism, crooked pols, monopolists and thieves, much as we see today.

It's really too bad because the era and it's thieves doomed railroads in the US to a bleak future once the public had the alternative of autos/trucks and highways. Outrageous freight rates, imposed on farmers, oil producers and other manufacturers caused a great hatred of railroads to arise. Many producers would pay more to move their product by truck ... For instance if you were a small time oil producer and moved your oil by rail, you were subsidizing Standard Oil, your competitor in the oil biz...who happened to own the rail road.

bid the soldiers shoot's picture

Where does one get a CD at 3.5%?  The Bank of Athens?

Corn1945's picture

You don't. He's lying. I've seen three year CDs that are much lower than that.

LawsofPhysics's picture

No dipshit, you do.  most people do not ask or even manage their company's 401K.  As it turns out some financial company's, Valic is one, offer special fixed interest rate accounts to members (basically CDs - caution they also have some of the same stupid rules) that allows you to park funds while you are waiting for conditions to improve.  So yes, while this was done through a retirement plan it is basically a CD.  In my case the only funds that can be removed from the account are those that were not put in via my retirement contribution and can not exceed 80% of my total holdings in that fund.  Most people don't even realize that there are ways to take advantage of your retirement plan providers.  Another perfect example is free trading accounts (look, they WANT you to gamble).

In regard to any fixed rate investment, there are the problems;  1)  most sheeple don't even manage their own 401ks, so they completely miss stuff like this.  2)  These "fixed interest" accounts are disappearing as banks now want to be the only entity "entitled" to collect compound interest.

How do the sheep expect to get ahead when they don't even use tools that may be at their disposal already?  Stupid is as stupid does I guess.

11b40's picture

Wondering the same thing.  I just let some roll over.....1%.

matrix2012's picture

Do you mean the Chinese workers, the best railroad builders in the world, who built the Transcontinental Railroad (and the Canadian Pacific Railway as well) under the very harsh conditions in 1800s, linking America's east and west coasts?

These "coolie" labor trade in the mid 1800s were made possible as China lost the opium wars for the second time, one concession was the right of foreign powers to recruit Chinese for overseas work. Britain was the first to use coolies. With the prohibition of the slave trade, it needed to replace freed Black slaves on colonial plantations. As it turned out, the depraved conditions aboard coolie ships and of their work were not unlike slavery. More:

However, China today and China in 1800s are totally different! So you just dream on and live continuously under your daylight dreaming illusion!! Some opium may help indeed :D

Pegasus Muse's picture

Time For Europe’s Bond-Burning Party

Jeff Nielson


In 1948, with Europe a smoldering and financial ruin, the United States bankrolled the “Marshall Plan” – a comprehensive “reconstruction” plan for Europe. The program was an unequivocal success. After the four-year plan had run its term, the economies of Europe had surpassed their pre-war economic output, and it was the beginning of the greatest economic boom in European history.

In 2011 Europe is once again in financial ruins, however this time the cause is not a war, nor even some form of natural catastrophe. Rather, the architects of this destruction were multinational bankers and the shadowy bond-parasites lurking behind them, holders of $10’s of trillions in sovereign debts. Their tools were fraud and deceit, and their original victims were the corrupt and/or weak-willed “leaders” of Europe who were ensnared by the banksters’ “revolutionary” new ways for these governments to (supposedly) finance their growing debts.

Now the victims of these arch-villains are virtually all the peoples of Europe – either facing their own, imminent bankruptcy, or being strong-armed into squandering their wealth through utterly futile “bail-outs”. I have already chronicled in a multi-part series this mass “economic rape”.

The bail-outs are obviously and inevitably futile, because the moment another infusion of loaned money is advanced to one of the debt-sinners, Wall Street’s economic terrorists quickly claw-back every penny of it – by driving up the interest rates on that nation’s debt through their fraudulent manipulation of the credit default swaps market.

A year and a half ago, I suggested it was time for “benign default” in Europe. What I meant by that term was interest forgiveness – since it is the interest on these debts which is bankrupting all of these nations, not the “principal” itself. Bond-holders would be made whole (since they would recover their principal), while the debtor nations would be rendered solvent.

That was then and this is now. A lot has changed over the past eighteen months. Wall Street’s economic terrorism now literally threatens to lay waste to the economies of most of Europe’s population. Interest rates on Greek debt have been pushed up to more than ten times the interest which the United States pays on its debts – despite the fact that the U.S. is at least as insolvent as Greece.

Meanwhile, the economies of Ireland, Portugal, Spain, Italy, and even France are now also at risk. Put another way, every time (over the past two years) that the U.S. propaganda machine has “mused” that a particular European nation might be about to have a “debt crisis” credit default rates have magically begun to spike higher (in the rigged casino which Wall Street calls “the derivatives market”) – which directly leads to higher interest rates on that nation’s debt. Et voila! A “debt crisis” becomes a self-fulfilling prophesy.

As a matter of simple arithmetic (and compound interest) any nation with a large debt can be rendered “insolvent” if their interest rates are forced (manipulated) high enough. Now France is the latest “target of speculation” by major U.S. media sites.

Consequently, we are long past the time for a “benign default” for Europe. I offer instead “the Nielson Plan”: nothing but “scorched Earth” – or should I say scorched bonds? A new, economic Golden Age can be ushered in for Europe, and all it requires is to put a torch to some of the bankers’ paper.

Here’s a question for all the “math whizzes” among readers. If Greece burns all its bonds, how much money will it cost the Greek government (and the Greek people) if the Wall Street terrorists push-up interest rates on 10-year Greek bonds from the already usurious 20+% to 50% or 75% or 100%? Congratulations to all of you who answered “zero”.

That’s right, burn the bonds and the “terrorist threat” is over. And it wouldn’t even be necessary for anyone to drop bombs on the head of anyone else. Hmmm, if Barack Obama can win a Nobel Peace Prize for the bomb-dropping, maybe I should submit my name (and the “Nielson Plan”) to the Nobel Prize committee?

At this point it would have been nice to simply wrap-up this commentary (and then just wait for my Nobel Peace Prize to roll in). Unfortunately I can already hear the deafening cacophony of the ‘Chicken Littles’ (i.e. the friends of the bankers).

“Europe can’t default on any of their bond debts, because all these bonds are spread out among nearly every major bank in Europe. If European nations defaulted on these bonds, virtually all of these banks would be wiped out.”

Yes. Quite right. While it isn’t as just (and as satisfying) as wiping-out all of the Wall Street fraud factories which were directly responsible for this scenario, it would exterminate all of their brethren. For performing such an enormous “public service” for Europe, I should probably get “knighted” – or get some sort of title (“Baron of Bond-justice” perhaps?). For the enormous financial relief of having all of those massive leeches detached from the various treasuries of Europe, that should be enough to earn me a Nobel Prize for Economics (as a book-end for my Peace Prize).

Sadly, the Chicken Littles haven’t yet winded themselves, and they seem to be becoming a little more sly.

“These nations can’t default on their debts or they won’t be allowed to borrow any more money. And with the large deficits these nations have, this would crush their economies.”

Let’s start by reminding the Chicken Littles why these nations have “large deficits”: because of all the interest they pay each year to the bond-parasites. Currently, somewhere over half of every dollar of revenue taken in by the Greek government now goes directly to the bond-parasites as interest – nothing less than permanent, absolute, debt-slavery.

Burn the bonds and those interest payments magically disappear – and so does the Greek “deficit”. Here’s another question for the math whizzes: how much money does the Greek government need to borrow when it’s now running a surplus? Right again with “zero”!

In fact, burn the bonds and (thanks to “austerity”) virtually all of the Euro “debt-sinners” will now be in surplus. Terrorism over. Debts gone. People free.

Annoyingly, the Chicken Littles aren’t finished yet. In fact they are now trying to sound seductive, which is perhaps even more grotesque than their previous screeching.

“They can’t default on their bonds. Some of that debt is held by pensioners, public institutions, and other innocent, domestic holders of these bonds. Even if you wanted to punish the banks and the billionaires, you can’t do so without targeting innocent victims.


Very possibly, once we subtracted the usurious interest payments which these European governments would no longer be making after their bond-burning party, many/most/all of the “innocent victims” could be immediately indemnified by their own governments. If that wasn’t possible, then for all the innocent domestic victims they could be issued new, “domestic” bonds by their government (billionaires and bankers need not apply).

These would be bonds which would not be transferable or made available to any non-domestic holders. Consequently, while Wall Street could still play their devious games with their fraudulent credit default swaps, the individual Euro governments could simply ignore any further attempts at this economic terrorism – since their new debt market would be a closed system, immune to credit default swaps (and Wall Street terrorism).

It is long past the time for half-measures for Europe. As I have warned previously, the latest and most-evil “proposal” by the bankers (and the bond-parasites for whom they front) is for a “Euro bond”: one bond to immediately enslave all of Europe. Should the “Euro bond” ever become a reality, then the Wall Street terrorists could simultaneously do to all of Europe what they are now doing to Greece (and Ireland, and Portugal, and Spain, and Italy) – for there would be only one credit default swap market to manipulate.

With Wall Street’s economic terrorism now an “existential threat” to Europe (certainly in financial terms), it is time for nothing less than a European bond-burning party: where the slaves free themselves from their shackles. The bankers and bond-parasites would have no one to blame but themselves.

LawsofPhysics's picture

Yep, it is the excessive usury that needs to be ended.

StychoKiller's picture

One Bond to rule them all, One Bond to find them,
One Bond to bring them all and in the darkness bind them.

With Apologies to J.R.R. Tolkien

matrix2012's picture

A very clear description, pinpoint to the darkest realities! This message needs to be transmitted to the masses of European and the rest of world (though the facts that they also grip most if not all of the mainstream media, TV stations, publications etc...they've strong & big trumpets using the MSM) to open the people's eyes of the devilish acts of the banksters and their accomplices: those corrupt politicians at the helm of govts, representatives and central banks. People need to wipe out all the devilish plots and punish them severely!!!

matrix2012's picture

I do hope that some one (or several) will put this Jeff Nielson's writing in better highlighted places than this commentary section only to reach more and wider readers, have stronger impacts!  It's too good to go unnoticed! Thanks for sharing here.

Addition, indeed it's placed in a highlighted place :-) just try to search for it

Meanwhile, here's the original article:

Long-John-Silver's picture

Bank Apocalypse Bitchez!

Manthong's picture

What they don't want to recognize is that their chutes have very large holes..

they are just keeping the show going as long as they can.


Buckaroo Banzai's picture

All these charts and graphs are so confusing. I think I'll just buy some more gold.

wombats's picture

Jeez.  How incestuous can it get?

Long-John-Silver's picture

Like going to a family reunion to pick up women.

wombats's picture

Just like in West Virginia...Incest is best!...Keep it all in the family.

Forget about the gene pool.

Don't worry about anything.

Gubmint will take care of me.

JW n FL's picture



the Rockefellers of West by God Virginia are in bred.

other than that there are Great People in those hills!

where are you from dumb fuck?

IMA5U's picture

note the healthy US Capital Ratios vs The Euro Trash


U S A!  U S A !  U S A !!


wait, aren't there those massive mortgage law suits?  BAC?  Yoikes!  Those aren't our banks' real capital ratios.....

way to go Obama.  

GeneMarchbanks's picture

Three magic words: OFF BALANCE SHEET

falak pema's picture

Derivatives stash...when netted out...

daxtonbrown's picture

To me this looks really, really, really bad, but I'm an engineer and only do the economics thingy of necessity. How many "reallys" should I be putting before "bad"?? And it looks like the US has 800 billion in total exposure, but not counting off the books stuff. How hosed are we when the avalanche begins?

Long-John-Silver's picture

It matters not where in the rope line your tied when everyone starts getting dragged over the cliff.

Al Huxley's picture

Funny, I was thinking exactly the same thing. All roped together, all going down together.

Cliff Claven Cheers's picture

Isn't that why Tim is in Europe?  Trying to get them to print Euros out of thin air because it works so well here in the US.

Snidley Whipsnae's picture

"How hosed are we when the avalanche begins?"

Think Niagra Falls

"How many "reallys" should I be putting before "bad"??"

Three isn't enough.


Not to worry... Benny has a printing press and can print up another $trillion or so to paper over this little problem.

Problem is, the problems continue to arise... Anyone with a proven success record in crisis management sould report immediately to the Fed for possible employment...

Your country needs you! (insert poster of Unkle Sam pointing finger)


Nate H's picture

That last chart is pretty misleading. 

Fist -you need a measure of the total money supply inclusive of all debt in relation to GDP or some metric of production - this goes beyond Govt or banking sector and includes private, household etc debt. The reality is that just about ALL OECD countries, when viewed by such a metric are between 300-600% of GDP -so debt deflation across the board MUST occur - it just depends on what form.


Also -he China numbers are in big need of update (they are much higher).


Nate H's picture

read it.

I don't doubt there is huge systemic risk and that its the domino nature of banks at heart of it - just that the ranking of countries risk due only to banks exposure is misleading. My opinion is all OECD nations (including China) are joined at hip financially. Whatever happens is likely to impact us all (or almost all) due to complex interdependent supply chains and lack of import substitution over past 30 years.


And no - I don't think Euro can survive, but hope it does for a few more years so institutions/govt (not the public cheerleaders) can get some things changed/prepared on physical side of economy

AnAnonymous's picture

Looking at the situation through financial instruments is doomed to fail.

The euro is a political issue.

The US political philosophy has it that power is exerted institutionally and that the legitimacy of the institutions is renewed each x years.

Once the legitimacy of the institutional power is renewed in key european countries, political decisions will be taken.

LeonardoFibonacci's picture

Canadian Maple Leaf gold 1 ounce coins .9999 purity.  Good for the soul & tranquility.