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Just Say Nein - Bundesbank On European QE: "Abandon The Idea Once And For All"

Tyler Durden's picture


While it will hardly come as a surprise to many that after making it abundantly clear that Germany is in total disagreement with ECB monetary policies, culminating in the departure of Jurgen Stark from the European central printing authority, Germany will not permit irresponsible, Bernanke-esque monetary policies, it probably should be noted that even following the most recent escalation of adverse developments in Europe, which are now on the verge of unwinding the entire Eurozone and with it the affiliated fake currency, that the German central bank just said that any European QE could only come over its dead body. Today channeling the inscription to the gates of hell from Dante's inferno is none other than yet another Bundesbank board member, Carl-Ludwig Thiele, who said that "Europe must abandon the idea that printing money, or quantitative easing, can be used to address the euro zone debt crisis...One idea should be brushed aside once and for all - namely the idea of printing the required money. Because that would threaten the most important foundation for a stable currency: the independence of a price stability orientated central bank."

In other words, the best Europe can hope for is massive liquidity provisioning as has been the case in recent months, when the ECB's balance sheet has soared by almost $1 trillion in 6 months (perhaps someone should ask the Bundesbank just what they think of that). However, for that to happen, banks have to continue to be on the brink, even more than now one could add, which simply means that the ECB will reactively provide liquidity to insolvent banks (at cheap rates) which will immediately turn around and redeposit the cash back at the ECB, but unlike the US, will not inject the monetary system with unsterilized cash. Which means one thing: Bernanke is and will continue to be stuck as the only source of marginal "Austrian" cash (i.e., market moving) in the world, and once the current episode of EUR-hatred passes, and it will, the revulsion will once again turn to where the next imminent money printing episode will come from - the 3rd subbasement of the Marriner Eccles building.

Reuters explains why the Bundesbank Just Said Nein:

Thiele called for euro zone countries to exercise fiscal discipline and said that boosting the resources of Europe's rescue funds would buy time to address the bloc's debt woes.


"But lasting confidence cannot be bought with money alone," he added in the text of a speech for delivery in Hamburg.

Thiele said the ECB's decision in May 2010 to buy Greek sovereign bond was a breach of a ban on monetary state financing in the euro zone.


He added that he believed the ECB's decision last August to extend its bond-purchase programme to Italy and Spain was driven by a majority view on the ECB Governing Council that the cost of borrowing was too high for the Italian and Spanish governments.


Bundesbank President Jens Weidmann also opposes the ECB's bond-buying programme, which he feels takes the central bank into the real of fiscal policy.


However, ECB figures released earlier on Monday showed the central bank more than trippled its bond purchases last week to the highest level since late November, spending 3.77 billion euros as a calm start to the New Year gave way to an intensification of the euro zone debt crisis.

And yet the market still continues to be convinced that the ECB will print in the conventional sense, "just because."


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Mon, 01/16/2012 - 15:00 | 2069123 Doctor Doom
Doctor Doom's picture

Wait and see

Mon, 01/16/2012 - 15:10 | 2069150 camaro68ss
camaro68ss's picture

O come on, just a little bump of hopeum

Mon, 01/16/2012 - 15:33 | 2069208 Chief KnocAHoma
Chief KnocAHoma's picture

Damn these Germans sure are touchy when it comes to printing funny money. It is almost like they have experienced something similar in their past like hyper inflation, mass murder and World War.

Lighten up you Huns. It's only paper. What's the worst that could happen?

Mon, 01/16/2012 - 15:42 | 2069231 BaBaBouy
BaBaBouy's picture

WOW - Unbelievable ... IS This TYPICAL EURO THINKING ???????????


Cruise disaster: captain neared rocks in stunt for friend's family  

In a stunt advertised on Facebook, captain of The Concordia Francesco Schettino allegedly sailed perilously close to the coast of Giglio so that the ship's head waiter could salute his family on land.


Deserves Execution ???

Mon, 01/16/2012 - 15:45 | 2069247 BaBaBouy
BaBaBouy's picture

Most Paper FIATS are Also Headed for the Rocks just off Giglio Isle...


GOLD Bitchez, GOLD ...

Mon, 01/16/2012 - 18:38 | 2069439 Ahmeexnal
Ahmeexnal's picture

when she say NEIN, she means JAWOHL MEIN KOMMANDANT !!

Mon, 01/16/2012 - 23:58 | 2070107 StychoKiller
StychoKiller's picture

Giglio looks an awful lot like "Gigolo" -- must be my sidslyxia! :>D

Mon, 01/16/2012 - 15:47 | 2069254 walküre
walküre's picture

Anyone with a mullet deserves to be executed or at least not be allowed to breed.

Mon, 01/16/2012 - 16:37 | 2069348 Chief KnocAHoma
Chief KnocAHoma's picture

A law like that could severly fuck up the demographics of Alabama.

Mon, 01/16/2012 - 16:54 | 2069378 MrBinkeyWhat
MrBinkeyWhat's picture

Easy now...Well maybe you are right. Never mind. Keep saying things like that.  Thanks a bunch!

MBW living in his "bug out location" in Deep South Alabama ;-)

Stay away, thank you very much.


Mon, 01/16/2012 - 17:29 | 2069387 TuesdayBen
TuesdayBen's picture

Hey, being the head-waiter is a big deal over there.  Speaking of which, I'd like to order a burger.  And, by the way, of the three cruises I've been on, on all three I was having to compete against the captain for the attention of the choicest ladies on the ship.  I'm betting the captain of this ship was distracted by some tail.

Mon, 01/16/2012 - 17:15 | 2069410 Spigot
Spigot's picture

And please understand how this perfectly illustrates the current "leadership" of the financial and political worlds as they dine on exquisite lunchen danties while the world is tearing straight into the jaws of the singularity.

A perfect portait if I do say so...

Mon, 01/16/2012 - 17:21 | 2069423 Chief KnocAHoma
Chief KnocAHoma's picture

It has been some time since we have had a report from our insider, but today he sent over this transcript from a conversation taped inside the White House just last week.

VALERIE JARRETT: (Pacing in the Oval Office as she reads the latest polls. She has a very worried look on her face.) Mr. President you still have strong support with blind homosexual dog groomers, but unfortunately every other demographic is fading.... even the media.

OBAMA: Valerie, Valerie... you worry too much. Everything will be fine we just need to shake up our team a little bit.

JARRETT: Yes Mr. President that is exactly what we need. Have you decided to call Hillary?

OBAMA: Yes, but in order to make this transition appear legit I had to convince Joe that his talents are needed more in another position of great importance.

JARRETT: Where are you moving him? State? Defense? No... Treasury?

OBAMA: Well I thought about Treasury, but came up with a better idea.


OBAMA: You're gonna love this. Not only is the position similar to Treasury, but we will get friends and family discounts.

JARRETT: Well what is it Mr. President? You have me very excited!

OBAMA: (Smiling as he let's out a drag from his cigaret.) I got him a job as a cruise ship captain in Italy.

Mon, 01/16/2012 - 20:57 | 2069778 Cabreado
Cabreado's picture

"WOW - Unbelievable ... IS This TYPICAL EURO THINKING ???????????"

No, it is typical thinking of the Self-Absorbed, protecting their illusion.
They live and die, and in-between breathe, protecting their illusion.

It ain't Europe. 

It is a sickness that has finally brought the so-called modern world to its knees.

Mon, 01/16/2012 - 18:47 | 2069591 living on the edge
living on the edge's picture

The game is over, period.

Plan accordingly.

Choose your options wisely.

Mon, 01/16/2012 - 19:38 | 2069678 GOSPLAN HERO
GOSPLAN HERO's picture

The use of 'Hun' or 'Huns' as an offensive nickname for the Germans was popularized by British propaganda and sections of the British media in World War 1.

... not taught in public schools.

Mon, 01/16/2012 - 21:33 | 2069852 UP Forester
UP Forester's picture

How about Kraut?

Ist das Verboten?

Mon, 01/16/2012 - 15:12 | 2069156 Popo
Popo's picture

Exactly.  Saying they're not going to print the money is one thing.

But as long as European sovereigns can create unlimited debt -- and Germany *doesn't* accept haircuts -- it sure looks like printing is still on the table one way of another.





Mon, 01/16/2012 - 15:19 | 2069174 Sandmann
Sandmann's picture

and if Germany refuses to backstop the ECB it looks a bit like an Italian cruise liner owned by a Florida-based corporation

Mon, 01/16/2012 - 15:30 | 2069213 redpill
redpill's picture

This just means they haven't had enough summits/agreements/Merkozy meetings yet.  The ECB will print eventually in some form, it's only a matter of how many of these bureacratic gyrations they have to go through before Germany finally capitulates.

Mon, 01/16/2012 - 19:38 | 2069681 Triple A
Triple A's picture

Printing will not happen, eurobonds by the end of 2012 will be in order. They are not giving up on the Euro.

Mon, 01/16/2012 - 19:51 | 2069696 DaBernank
DaBernank's picture

Printing has been happening, just look at the ECB balance sheet, 20billion per week. Not printing would actually be giving up on the EUR. German politicians don't realize that money is created when a loan is made, the money has been created over the last 10 years. If the CB does not provide liquidity the asset/debt (same thing) must be destroyed. I'm not saying this is how things should be, I think it's bullshit but that's how it is today in tooth fairy bank land.

Mon, 01/16/2012 - 15:39 | 2069228 walküre
walküre's picture

With Captain Guido Mullet at the helm I'm surprised she didn't crash somewhere sooner.

Mon, 01/16/2012 - 16:36 | 2069344 Mister Ponzi
Mister Ponzi's picture

Hmm, let's see. A ship with a proud name; an Italian captain paid by a US based company; a lot of Italian, German and French passengers on board; the ship hits a rock off Italy and sinks. Does this better describe the ECB or the Costa Concordia???

Mon, 01/16/2012 - 17:46 | 2069484 Ahmeexnal
Ahmeexnal's picture

And they sink off the coast of the island of Gigolo.

Mon, 01/16/2012 - 23:09 | 2070048 Tompooz
Tompooz's picture

"Shipwrecked off the Island of Ponzi" has the right ring to it.

Mon, 01/16/2012 - 15:34 | 2069219 GeneMarchbanks
GeneMarchbanks's picture

Um, you hear what you want to hear in this post-Minksy moment world of ours. You'll get a battered, volatile € or local currencies.

Mon, 01/16/2012 - 15:47 | 2069258 LawsofPhysics
LawsofPhysics's picture

You really believe the printing has stopped?  Not familiar with a liquidity trap are you?  The printing has never stopped and neither has the destruction of capital through misallocation (banker's bonuses and paper-pushing) and debt servicing.  Lots of money being printed, none of it is finding it way to productive ventures.

Mon, 01/16/2012 - 19:38 | 2069682 Bam_Man
Bam_Man's picture

Yes, this is the perfect recipe for stagflation, which is exactly what we see both in Europe and to a slightly lesser extent in the US.

Mon, 01/16/2012 - 15:12 | 2069157 Ahmeexnal
Ahmeexnal's picture

The recent trend in avoiding both the dollar and the euro as currency by many countries who are now trading in their own currency pairs is necessary and sufficient proof that both the euro and the dollar are shackled to a concrete block and plunging to the bottom of the ocean.

Mon, 01/16/2012 - 15:42 | 2069239 walküre
walküre's picture

The Rupee maybe? The Rublette or the Yuan? Let them trade in their own currencies for the time being until they all realize that they cannot trust each other either.

Mon, 01/16/2012 - 15:38 | 2069227 slaughterer
slaughterer's picture

Yet another article where our hero Tyler Duren assumes the only inevitable consequence is QE3.  What if he is wrong?  

Mon, 01/16/2012 - 15:43 | 2069245 GeneMarchbanks
GeneMarchbanks's picture

Not sure anything is being assumed but you'll get notional GDP targeting in the not too distant future. It'll be glorious... for a while.

Mon, 01/16/2012 - 16:44 | 2069363 Hacksaw
Hacksaw's picture

If Europe continues to fall apart, if Asia follows them down, the Fed could be in a position where they either won't or can't QE enough to keep the dollar down. If the dollar goes up and stays up the possibilities could be grim. 

Mon, 01/16/2012 - 15:51 | 2069263 mattu13048
mattu13048's picture

Holy Batman, this is the shit:

Mon, 01/16/2012 - 15:00 | 2069126 LawsofPhysics
LawsofPhysics's picture

Apparently the plan is to keep levitating here indefinately.  The world is turning Japanese.

Mon, 01/16/2012 - 15:28 | 2069202 redpill
redpill's picture

I really think so... dee duh duh dut dut duh....


Mon, 01/16/2012 - 15:02 | 2069130 agent default
agent default's picture

I think the German game is becoming clear, they are not going to print in order to throw good money after bad like the FED.  They will force the defaults, and allow for controlled printing once the need to recapitalize the system and restart it from a healthy basis arises.

Mon, 01/16/2012 - 15:25 | 2069189 Ropingdown
Ropingdown's picture

Yep.  And the key word is "controlled."  What an encouraging reaction the Germans have provided.  They fought off the Sarkozy-organized gang (Spain, Italy, et al) over the last year.  They did it without going into hysterics.  Quite a calm sensible course of action under the circumstances.

Mon, 01/16/2012 - 16:08 | 2069296 Beastmanager
Beastmanager's picture

The Germans never get it right, do not forget history, Germans are traditionally the biggest enemies of european welfare.

Tue, 01/17/2012 - 00:05 | 2070120 StychoKiller
StychoKiller's picture

welfare == irresponsible, childlike wards of a Nanny State -- just die already!

Mon, 01/16/2012 - 15:48 | 2069131 GeneMarchbanks
GeneMarchbanks's picture

"And yet the market still continues to be convinced that the ECB will print in the convention sense, "just because.''

You hear what you want to hear. Bb walks the walk.  


'France said to seek faster execution of EU's Iran oil embargo, said to seek three-month phase-in sanction'

So they're sticking to the script. Good luck with that.

Mon, 01/16/2012 - 15:03 | 2069133 Irish66
Irish66's picture

Can we have the dove/hawk chart please?  Its hard to keep everyone straight.

Mon, 01/16/2012 - 21:37 | 2069864 UP Forester
UP Forester's picture

Does it matter?

The Bernank still thinks he has more tools on his belt than Flietermausmann....

Mon, 01/16/2012 - 15:03 | 2069134 Kaiser Sousa
Kaiser Sousa's picture

like my mom used say....

"they lyin...."

Mon, 01/16/2012 - 15:13 | 2069158 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's priced in.

Mon, 01/16/2012 - 15:25 | 2069191 GeneMarchbanks
GeneMarchbanks's picture

Is that your new thing now or are you just muttering to yourself?

Mon, 01/16/2012 - 16:16 | 2069305 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

My new thing?  I heard it on CNBC.  The downgrades are priced in.  They kept saying it over, and over, and over....

Mon, 01/16/2012 - 17:00 | 2069388 MrBinkeyWhat
MrBinkeyWhat's picture

"CNBS"  There fixed it for you.

BTW, "12 Monkeys " is a genuine classic. Whenever I get a little "up beat" I watch it. Clears my mind.

Mon, 01/16/2012 - 15:04 | 2069137 Sudden Debt
Sudden Debt's picture

I didn't ask the germans for their opinion.... SO STFU!

Print like the Americans do and get this stuff over with!
Just wait untill all the pension funds go belly up and old the old farts hit the streets!

Mon, 01/16/2012 - 15:18 | 2069168 FubarNation
FubarNation's picture

The old farts will be easy to arrest and/or take down. 


Mon, 01/16/2012 - 15:40 | 2069233 Schmuck Raker
Schmuck Raker's picture

Water Cannons & Walkers? Oh, the humanity!

Mon, 01/16/2012 - 16:19 | 2069309 Beastmanager
Beastmanager's picture

Agreed. The Germans never get it right, do not forget history, Germans are traditionally the biggest enemies of european welfare.

Mon, 01/16/2012 - 16:32 | 2069338 Uber Vandal
Uber Vandal's picture

@Sudden Debt:

Aren't you a bit worried about going back to the Belgium Franc?

I have friends in the Netherlands, and they told me that when their Guilders became Euros, they had 1/2 the money they used to, but the prices were more.

If the Euro is dismantled, how much more money is everyone going to lose converting back to Francs, Deutschmarks, and Guilders again?

Most importantly, where did the money go in the translation?

Mon, 01/16/2012 - 17:03 | 2069393 MrBinkeyWhat
MrBinkeyWhat's picture

Oh that is only because you live in Belgium. God knows you don't have any grudges with Germany...Right?  /Sarc

PS: SD, love your stuff. In a kind of funky is personal.

Mon, 01/16/2012 - 15:05 | 2069138 Dick Darlington
Dick Darlington's picture

Someone should ask the Bundesbank whether they are comfortable with their Target 2 exposure. They NEVER talk abt it, NEVER. It's getting closer to 1 trillion day by day. Very politically sensitive issue...

Mon, 01/16/2012 - 15:27 | 2069198 Ropingdown
Ropingdown's picture

Do you really think that isn't the reason for Germany's firm opposition to printing?  Do you think they are not counting the growing cost?  They're Germans, dude.

Mon, 01/16/2012 - 16:41 | 2069355 Dick Darlington
Dick Darlington's picture

Oh they're counting all right. And they're scared because of it. Was just saying that it's probably the least spoken "public secret" out there.

Tue, 01/17/2012 - 02:09 | 2070284 Ahmeexnal
Ahmeexnal's picture

That would certainly explain the massive explosion of GERMAN MAIL ORDER BRIDES all over the internet.

Mon, 01/16/2012 - 15:06 | 2069139 SheepDog-One
SheepDog-One's picture

No QE? Well I must say, I'm SHOCKED!

Mon, 01/16/2012 - 15:06 | 2069140 SillySalesmanQu...
SillySalesmanQuestion's picture

Nein...vecause et es alveady priced vin you ninkampoops...

Mon, 01/16/2012 - 15:07 | 2069143 Irish66
Irish66's picture

that made me laugh

Mon, 01/16/2012 - 15:06 | 2069141 SDRII
SDRII's picture

US and UK working in concert; CNBC interview with central bank head of Cyprus suggesting the very idea of a haircut is what caused this entire problem (he was trained at NYFed, not unlike BOE Qe pusher Posen). ECB options narrowing to one thing - gold bid?

Mon, 01/16/2012 - 15:18 | 2069171 Sandmann
Sandmann's picture

Cyprus is so lucky, it has so much Russian funny money flowing through its letterbox companies that Vladimir Putin cannot let it collapse. Just how much Gazprom and Abramovitch money runs over invoicing centres in Cyprus before washing into Hong Kong and Singapore is unclear. Why would a dodgy banking centre like Cyprus want people running bond portfolios through dubious Cypriot entities want them to take a haircut when German taxpayers can be robbed blind ?

Mon, 01/16/2012 - 15:29 | 2069209 Ropingdown
Ropingdown's picture

That game, Russian money through Cyprus, has already fallen apart.  Hence Cyprus rated to junk.

Mon, 01/16/2012 - 21:40 | 2069874 UP Forester
UP Forester's picture

Is that why the military base blew up there?

Boris got pissed that they wouldn't launder his rubles?

Mon, 01/16/2012 - 15:07 | 2069142 misterc
misterc's picture

Germany will never abandon the Euro. Period. Forget about it. Unrealistic.
We have a valkurian approach to endgames and always fight until the world lies in ashes. 

Mon, 01/16/2012 - 15:15 | 2069163 Sandmann
Sandmann's picture

You are so very wrong. The German political elites think they can make any demand in Europe, pursue any crackpot dream, impose any Cartel; so long as it is wrapped in Euro-packaging........but the German Volk has no regard for its self-serving business and political elite. It does not think Susanne Klatten rules their lives because she bankrolls Angela Merkel; nor does it think Diekman and Ackermann dictate the terms of German national policy simply because they fund Angela Merkel. Germany is not the USA where Money Buys Everything and Goldman funds Obama and Romney. German Citizens are not prepared to be led off a cliff by another group of hubristic politicians - so the Euro may not be abandoned by Germany, but 12 other nations may choose to leave the Euro

Mon, 01/16/2012 - 16:23 | 2069319 misterc
misterc's picture

You are so very wrong. 95% of the German population don't know who Susanne Klatten is. Don't extrapolate witty opinions from a financial blog onto the majority of the population. I promise you, Germany will be the very last country to leave the Eurozone. The stupid dream of a united Europe is deeply planted into the hearts and souls of the intellectuals, the elites & the opinion leaders that it will never be abandoned, come what may.

(Personally I'd love to see my Deutsche Mark make a comeback, but I know it's never gonna happen).

Mon, 01/16/2012 - 16:47 | 2069370 Chief KnocAHoma
Chief KnocAHoma's picture

Yeah but they make some pretty fucking good cars!

Mon, 01/16/2012 - 21:10 | 2069803 DosZap
DosZap's picture

Chief KnocAHoma

Uh Huh, IF your checking acct is blessed w/unending funds, their great.

Along with those Wunderkins comes hellacious service charges, and service interval charges.As you may know,if the books are not kept up, your FOOKED,for resale.

Mon, 01/16/2012 - 15:17 | 2069166 Vergeltung
Vergeltung's picture

Volk ans gewehr!!

Mon, 01/16/2012 - 15:37 | 2069223 wandstrasse
wandstrasse's picture

hey, the last time we won a (military) war was 1870. Feel free to add more 250 victory-free years.

Mon, 01/16/2012 - 17:07 | 2069399 CapitalistRock
CapitalistRock's picture

Germany will never abandon the euro? Ha! Are you telling us that the world's first ever fiat currency with a life of more than 100 years is going to be the euro? After thousands of years of failed fiat currencies we finally have one that is here to stay?

Read some history. All fiat currencies are designed to be temporary. This illusion people have that they are designed to be permanent stores of value is sold to you by your central bankers. The historical reality is much different than a Bernanke speech.

Mon, 01/16/2012 - 17:58 | 2069510 Struan
Struan's picture

Indeed you are right, just look at the value of the $$ now, 1 $= 0.25 cents (1913)

So if you take at look a the inflation rate in a 100 years you will realize its temporary(the fiat currency) because its an exponential function, which quicly climbs to infinity. Like the story with a grain on the first cell of a chessboard, two on the next, four on the next, doubling everytime, by the time you reach the 64th cell, you`ve doubled 64 times, and all the grain production of an arab country could not cover that(was a wager between a wise man and a prince). Now thats an exponential function.

And one thing that ZHers learn is that the economy is coupled with energy. A video was posted here not long ago:)

So yeah, I think the "Golddd BITCHEZ!" sayn stands.


Mon, 01/16/2012 - 21:48 | 2069901 UP Forester
UP Forester's picture

Indeed you are right, just look at the value of the $$ now, 1 $= 0.25 cents (1913)


Uh, yer figgers are a little off, Sparky.

Last I checked, a Silver buck is 30x, more or less, $1.

Dollar goes from 1/18.92 an ounce in 1913 to around 1/1650th now?


But I get your drift.

Mon, 01/16/2012 - 15:11 | 2069151 wandstrasse
wandstrasse's picture

Als ob wir irgendeine Wahl hätten...

As if we had a choice...

Mon, 01/16/2012 - 15:26 | 2069193 walküre
walküre's picture

Piratenpartei !

Mon, 01/16/2012 - 15:29 | 2069207 wandstrasse
wandstrasse's picture

Piratenpartei = Fachschaft Informatik. Schüttel, graus, würg.

Mon, 01/16/2012 - 15:34 | 2069220 walküre
walküre's picture

I thought they were true pirates going after the loot of the banksters. That's the only way to get rid of the banking cabal. Take all they've got and let them live to see another day but work for minimum wages.

Mon, 01/16/2012 - 15:29 | 2069210 The Reich
The Reich's picture

The loud "NEIN" has been sooo mighty that ECB only printed $1 trillion in the last 6 months.

Mon, 01/16/2012 - 15:12 | 2069155 The Deleuzian
The Deleuzian's picture

What alternative do they have?  Oh Ya...A total deflationary collapse where the banks go bust and the European people turn into a starving pitchfork touting ball of warm goodness!!

Mon, 01/16/2012 - 15:16 | 2069164 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Let's see....inflationary melt up, or deflationary collapse?

Decisions, decisions.

Mon, 01/16/2012 - 15:32 | 2069216 SheepDog-One
SheepDog-One's picture

Theyre at the point they have to choose 1 or the other, now.

Mon, 01/16/2012 - 20:26 | 2069730 Rynak
Rynak's picture

No, the world will not end, if we do not do what you say. GFY.

Mon, 01/16/2012 - 15:14 | 2069162 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It looks like the Bundesbank is forcing the Fed to speed up the presses.

Mon, 01/16/2012 - 15:18 | 2069170 wandstrasse
wandstrasse's picture

waah... that is just some popular hawkish talk to collect votes / political support, or to endorse one's company, like Wolfgang Reitzle from Linde recently.

Mon, 01/16/2012 - 15:26 | 2069196 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's fine.  Bernanke will cherish "saving" Europe.

Mon, 01/16/2012 - 15:17 | 2069165 Randall Cabot
Randall Cabot's picture

Achtung Alles Lookenpeepers!

Dies Machine is nicht fur gefingerpoken und mittengraben. Is easy schnappen der springenwerk, blowenfusen und poppencorken mit spitzensparken. Is nicht fur gewerken by das dummkopfen. Das rubbernecken sightseeren keepen Cotten-pickenen hands in das pockets - relaxen und Watch Das Blinken Lights.

Mon, 01/16/2012 - 15:22 | 2069180 wandstrasse
wandstrasse's picture

WTF? beziehungsweise WZT = Was zum Teufel???

but it really made me laugh.

Mon, 01/16/2012 - 15:40 | 2069232 kaiserhoff
kaiserhoff's picture

I've seen variations since the seventies, and it always works;)

Mon, 01/16/2012 - 16:22 | 2069314 francis_sawyer
francis_sawyer's picture

I just spit out my apple strudel

Mon, 01/16/2012 - 18:21 | 2069550 Randall Cabot
Randall Cabot's picture

I first saw it on a machine at a workplace years ago and never knew who wrote it or where it came from. I always assumed some jokester who worked on German equipment and with German technicians came up with it but thanks to the internet I found out that it was one of Werner von Braun's men who came over with Operation Paperclip and who jokingly liked to butcher the English language who wrote it and placed it on some equipment at a NASA building where visitors were coming and going.

Mon, 01/16/2012 - 16:11 | 2069301 exartizo
exartizo's picture

lol... no german required

Mon, 01/16/2012 - 15:21 | 2069173 Pretorian
Pretorian's picture

Germany says thank you for euro/$ 1.26 pls keep keep moving lower ! lol


Mon, 01/16/2012 - 15:32 | 2069215 walküre
walküre's picture

Oil in $ is not helping that theory. Been there, done that.

Hitler's loss was a supply side issue.

Mon, 01/16/2012 - 15:19 | 2069175 FubarNation
FubarNation's picture

Time for the 4th Reich to start marching on the rest of Eruoland.

Mon, 01/16/2012 - 15:27 | 2069176 Cult_of_Reason
Cult_of_Reason's picture

Germans keep on saying one thing (European QE could only come over our dead bodies) but doing another (it is OK to print hundreds of billions of euros out of thin air to pay the Fed for USD swaps, it is OK to print a trillion+ of euros out of thin air via LTRO)...

The German central banksters are losing all credibility fast.

Germany's Bundesbank has Quietly Lent Half a Trillion Euros to the ECB

"The bottom line: Germany’s Bundesbank—BuBa for short—has quietly, automatically lent €495 billion to the European Central Bank via Target2. That lending has balanced correspondingly huge borrowings from Target2 by the central banks of weaker nations including Greece, Ireland, and Portugal—and lately Spain, Italy, and even France."

Mon, 01/16/2012 - 15:23 | 2069183 The Reich
The Reich's picture


Mon, 01/16/2012 - 15:55 | 2069265 Schmuck Raker
Schmuck Raker's picture

They're not losing credibility, so much as getting ready. Maybe it's time for Germany to bow out gracefully from the EMU. Or, that time is getting closer as they approach balanced accounts.

Mon, 01/16/2012 - 16:31 | 2069311 Cult_of_Reason
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They're playing games – printing as much as possible and at the same time pretending they are against printing (to fool German public/voters and to preserve hard-money Bundesbank credibility).

Most of them are classic European champagne socialist hypocrites; they always say one thing but doing another.

Bernanke tried the same Clintonian semantics trick in 2010 (money printing electronically vs. actually using the printing press to print paper money) to fool the public too, by making statements on CBS that "the Fed is not printing any money" at the same time as he was electronically "printing" $600 billion out of thin air.

Mon, 01/16/2012 - 15:20 | 2069177 Quinvarius
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Now all they have to do is cut off FOREX ties with the USA to keep Bernanke from dumping digital Euros all over them.

Mon, 01/16/2012 - 15:25 | 2069190 Snakeeyes
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But they will print eventually.

Mon, 01/16/2012 - 15:26 | 2069192 roy10
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LOL - what exactly is the LTRO? That's QE squared. ECB is printing like mad regardless of what they call it.

Mon, 01/16/2012 - 15:29 | 2069206 walküre
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LTRO was the money they found under a mattress perhaps? Then LTRO funds got gobbled up in a matter of days and parked at the ECB to stimulate the buying of equities and sovereign debt. Circle Jerk.

Mon, 01/16/2012 - 15:43 | 2069248 falak pema
falak pema's picture

ah, but its sterilised

Mon, 01/16/2012 - 16:04 | 2069283 roy10
roy10's picture

LTRO is not sterilized.

Mon, 01/16/2012 - 16:33 | 2069339 trebuchet
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its collateralized   :)

Mon, 01/16/2012 - 16:37 | 2069347 walküre
walküre's picture

yes. but has it been rehypothecated yet?

Mon, 01/16/2012 - 17:10 | 2069403 MrBinkeyWhat
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Has it been rehypothecated AND subordinated yet?

Got to stay up if you want to play on ZH... ;-)

Mon, 01/16/2012 - 17:04 | 2069395 roy10
roy10's picture

Collateralized by Portuguese debt. The next best thing to Egyptian debt.

Mon, 01/16/2012 - 15:27 | 2069199 tekhneek
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Mon, 01/16/2012 - 16:06 | 2069290 Westcoastliberal
Westcoastliberal's picture

EXACTLY what I was thinking!

Mon, 01/16/2012 - 17:08 | 2069400 4horse
4horse's picture

das Zeichnung Nein von äußere spatien

Mon, 01/16/2012 - 15:40 | 2069236 fiftybagger
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Silver For The People – The Blog

The Doc Interviews Jim Willie: UniCredit Failure is on Tap, Euro Debt Crisis, and Gold Disconnecting from Futures Markets
IRAN, WW3 & RON PAUL: “What Have We Allowed Ourselves To Become?
Greece – Number of homeless people has increased by 25 percent in the last two years
Jim Rogers:On emerging markets and commodities
Truth About Middle East is Spreading
TruthNeverTold – The Rigged Game
Total Collapse In Rail Traffic To Start The Year
Three Reasons Why 2012 Is Shaping Up To Be a Disaster
Silver Update 1/15/12 Super Troll
Michael Panzner – Financial Armageddon: In Good Company
Pat Buchanan on Ron Paul, the Internet and Ethnic Politics in the 21st Century
Cashless Society: India Implements First Biometric ID Program for all of its 1.2 Billion Residents
A new Reserve currency to challenge the dollar – What’s really going on in The Straits of Hormuz
Dead On Arrival: SOPA Shelved Indefinitely, Obama Succumbs to Pressure, Issues Official Veto Threat
Fund sees Zimbabwe-style inflation if Greece exits euro
Greek 1-Year Bond Yield Tops 408 Percent; Hard Default Appears Imminent
Osborne abandons eurozone as he calls for stronger links with the East
Saudi, Chinese oil giants ink joint refinery deal
Presenting Mitt Romney’s Top Campaign Contributors
YOUSEARXCH – Silver & the Dollar (14-Jan-12)

Mon, 01/16/2012 - 17:31 | 2069446 4horse
4horse's picture


 tiabbi. again

Verschleiser undermined due diligence in other ways. One good one was to demand that his due diligence people operate at speeds that made genuine due diligence impossible.

At one point during these deals, Verschleiser reamed out his immediate subordinate, co-head of mortgage finance Baron Silverstein, over the "problem" of the due diligence department taking too much time to do its work. Silverstein responded by issuing the following tirade to John Mongelluzzo, Bear's VP for Due Diligence, demanding that he not get in the way of Bear's insane goal of funding 500 mortgages a day:

I refuse to receive more emails from [Verchleiser] (or anyone else) questioning why we’re not funding loans every day. I’m holding each of you responsible for making sure we fund at least 500 each and every day… I was not happy when I saw the funding numbers and I knew NY would NOT BE HAPPY... I expect to see 500+ every day. I will do whatever is necessary to make sure you’re successful in meeting this objective.

Whenever any right-wing loon, or Bloombergite, tries to tell you the mortgage crisis was caused by the government forcing the poor banks to lend to broke black people, please direct them to this passage. The banks not only wanted to give out these loans, they wanted to give them out at the speed of light. They wanted to crank them out so fast that their own auditors literally couldn't read the writing on the loan applications. This was greed, not policy. Anybody who says anything else is high on something.

Anyway, given that much of Verschleiser's questionable behavior is in writing, his case sure seems court-ready. But for whatever reason, he has not been indicted.

Read more:


Mon, 01/16/2012 - 18:30 | 2069572 proLiberty
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"Whenever any right-wing loon, or Bloombergite, tries to tell you the mortgage crisis was caused by the government forcing the poor banks to lend to broke black people, please direct them to this passage."

Very few indeed claim the banks are not without blame.  However, no bank would have ben in a position to have 500 mortages a day to process unless all the government ducks were in a row, and quacking the same tune.  

Blaming people for finding a way to make money even when the regulatory environment forced them to originate bad loans is like blaming gravity for the murder of someone who gets pushed off of a tall building.  Gravity was just doing its job.  And don't forget that one of the major originators of home loans in Chicago was a community activist organization who BHO himself was associated with.  Many government agencies were in on this, and at the top, every dollar was blessed by the Federal Reserve Corporation.  Barney Frank and Chris Dodd ran far more interference for Fannie and Freddie than they did for any bank.

Mon, 01/16/2012 - 18:36 | 2069588 Kinskian
Kinskian's picture

Thanks for the link FB. It led me to The Daily Bell's interview with Pat Buchanan...

Pat Buchanan on Ron Paul, the Internet and Ethnic Politics in the 21st Century

Mon, 01/16/2012 - 15:41 | 2069237 Rob Jones
Rob Jones's picture

Where is the LTRO money coming from? Isn't the ECB printing it?

There seems to be a huge disconnect between Mr. Thiele's statements and reality.

Mon, 01/16/2012 - 15:47 | 2069257 Tyler Durden
Tyler Durden's picture

LTRO is a loan priced at 1.00% and maturing in 3 years. It differs from excess reserves in that while the Fed pays interest on bank reserves (which don't mature) in the US, in Europe banks pay interest to the ECB.

Mon, 01/16/2012 - 16:01 | 2069278 Rob Jones
Rob Jones's picture

The thing I'm not clear about is where the ECB is getting the money for the LTRO loans. In order to loan money to someone, I need to get it from somewhere. Is someone loaning to the ECB?

Mon, 01/16/2012 - 16:11 | 2069300 Mark123
Mark123's picture

My understanding is that there is a vague concept that the states of Europe make a promise of some sort to set aside something somewhere to somehow maybe cover the bet should something kind of go wrong. 


That is all very technical financial lingo (roughly translated to "it's a confidence game").  Just like a poker game with USA, UK, Europe and China at the table....Europe runs out of cash so they write an IOU on a piece of paper and throw it in.  Since the USA and UK already did this nobody complains.  China keeps winning hands and starts to look a little nervous at the pile of IOU's written on napkins, but says nothing because they know Europe's wife is a hottie and maybe they can sleep with her is the IOU is worthless.

Mon, 01/16/2012 - 17:24 | 2069427 Iam Rich
Iam Rich's picture

This is a technically sound argument.  Can't seem to find any flaws.

Mon, 01/16/2012 - 17:36 | 2069463 TuesdayBen
TuesdayBen's picture

Europe's wife is Frau Merkel.

Mon, 01/16/2012 - 16:23 | 2069318 Vinz Klortho
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Central banks can create whatever amount of money they want to.
Inflation would be the effect of creating too much money, if in fact
it actually gets into the economy, rather than sitting in the ECB as


Mon, 01/16/2012 - 16:03 | 2069282 Mark123
Mark123's picture

True, but for 3 years the bankrupt states of Europe have been given access to subsidized loans (1% plus profit margin) through their "independent" banks.  The mother of all can-kicking.


Of course I am sure that all those banks will use that time to get their houses in order and rebuild a robust, competitive Europe that will thrive for another 1,000 years....or....maybe they will just be a wee bit self-serving and work frantically to transfer all remaining risk to the taxpayers?

Mon, 01/16/2012 - 16:10 | 2069285 The Deleuzian
The Deleuzian's picture

There's another key difference with the Fed and the ECB...In the US...Nobody cares or questions were the money comes from...Everybody knows that!...Thin air of course!...Those concerned are more curious of the uses and abuses of the Fed and what they're going to do with the money...

In the Eurozone...People know what they're going to do with the money...Question is, what channels and just who gave the go ahead to come up with the money in the first place...

If only they could take the best of both worlds...Utopia...Free money for all...Everybodies happy..............

Mon, 01/16/2012 - 17:09 | 2069402 roy10
roy10's picture

Yes, the LTRO is printed money. There is very little difference between outright buying the bonds (QE) and accepting them as collateral at face value. In fact, the latter is a far more aggressive manner to print.

Mon, 01/16/2012 - 18:30 | 2069569 Ghordius
Ghordius's picture

A *culturally acceptable* far more aggressive manner to print...
And it keeps the tab cleaner for some - which is also politically more acceptable. A bit like the US squatter/bank dilemma.

Mon, 01/16/2012 - 15:42 | 2069238 Joebloinvestor
Joebloinvestor's picture

So will they print before or after they start kicking the deadbeats out of the union?

Mon, 01/16/2012 - 15:53 | 2069267 Black Forest
Black Forest's picture


Mon, 01/16/2012 - 16:34 | 2069340 francis_sawyer
francis_sawyer's picture

So will they print before or after they start kicking the deadbeats out of the union?


Mon, 01/16/2012 - 15:53 | 2069266 Mark123
Mark123's picture

The real question is if Germany is anything other than a servant of the banking cartel.  To me it looks as if they just keeping the German people complacent while the bankers finish their looting.  As soon as their work is done, then and only then will the paper markets be allowed to collapse. 


Very similar to the Obama syndrome....give fiery speeches about helping the working poor while you shovel money into the pockets of wall street crooks. 

Mon, 01/16/2012 - 17:43 | 2069478 Richard Chesler
Richard Chesler's picture

"I did not run for office to be helping out a bunch of fat cat bankers on Wall Street"


Mon, 01/16/2012 - 18:30 | 2069576 RiverRoad
RiverRoad's picture

Exactly.  This is why this process is taking so long:  the bankers are looting and then some.

Mon, 01/16/2012 - 18:33 | 2069583 RiverRoad
RiverRoad's picture

And into your OWN pocket, Obummer.  That's why you got into this:  all those million dollar speaking fees for the rest of your natural life.....

Mon, 01/16/2012 - 15:54 | 2069269 gwar5
gwar5's picture

Meinst du Das, odor sagst du Das nur so?


No... they really sound like they mean it this time. But, does this mean Germany still likes the FED bailing out the EU, even if it makes the USD cheaper? Ya! Ya!



Mon, 01/16/2012 - 16:04 | 2069286 tedzeebear
tedzeebear's picture

Is the ECB secretly buying bonds to make the French, Italian, and Spanish debt auctions successful?  Is there a way to determine this?

Mon, 01/16/2012 - 16:14 | 2069303 Mark123
Mark123's picture

Yes....if they are selling ANY of their worthless bonds the ECB is behind it (and Fed behind them).

Mon, 01/16/2012 - 16:22 | 2069315 The Deleuzian
The Deleuzian's picture

The mechanism of this bond buying bailout is the question...Nobody in the Eurozone has specific permission to do anything like this...Atleast as far as I know?  As far as the Fed is involved...Who knows...Maybe there's 2 quadrillion in black box derivatives holding this bastard up now...What about all the interest rate derivatives holding those up...Seems like its derivatives all the way down...

Mon, 01/16/2012 - 16:04 | 2069287 Westcoastliberal
Westcoastliberal's picture

This spit and bailing wire doesn't seem to be working...

Mon, 01/16/2012 - 16:09 | 2069295 exartizo
exartizo's picture

Thus Thiele forgets the only real reason to have fiat money in the first place.. so you can print it when you want to.

Mon, 01/16/2012 - 16:10 | 2069298 balz
balz's picture

They will print. Whatever they say, they will print. There is no other option.

Mon, 01/16/2012 - 16:31 | 2069336 Zero Govt
Zero Govt's picture


the Germans won't want to be seen to collapse the Euro Project

better to ratchet up the pressure until the pips (Greeks) squeek

Mon, 01/16/2012 - 18:38 | 2069595 RiverRoad
RiverRoad's picture

Hey junkers, just because Balz said it doesn't mean he's for it. 

Mon, 01/16/2012 - 16:20 | 2069310 AnAnonymous
AnAnonymous's picture

So the Germans do not comply with QE but they have let one trillion QE slip through.

Cant wait for when they comply.

So US citizenish. Only posturing. Keeping the face. Unable to speak of what they are actually doing.

This is how they build uncertainty.

For they work to make something certain. They only speak of everything but something and in the end, well, that everything but is as uncertain as this something is certain.

US world order.

Mon, 01/16/2012 - 17:49 | 2069489 4horse
4horse's picture

repeat. mmeaning

repeat. mmeaning



. . . till the only haiku

       is just ffinally f u

Mon, 01/16/2012 - 16:22 | 2069313 xcehn
xcehn's picture

Let the Americans suck it up.  The US can't afford to let the Euro collapse.  Why would Europe need QE when they have the Fed for cover?

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