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Memo To Draghi: We, The People, "Don't Trust You One Inch"

Tyler Durden's picture





 

It was early February when we called out Mario Draghi for his blatant lies regarding the stigmatizing effect that the LTRO program would have on European banks. Now, two months later, even the members of the European Parliament are openly questioning their belief in the sociopath ECB chief. After laying out the apparent reasons for the LTRO scheme (at a recent European Parliament hearing) to keep banks well-funded, Godfrey Bloom (MEP) describes the implicit reason - or so-called reach-around (sic.) Sarkozy-carry trade to fund governments circumventing Maastricht and article 104 of the ECB's Treaty - explaining the simple math means surely LTRO3 is inevitable and soon; as Spain (and Italy tomorrow remember) hits the wall with its issuance as banks are unable to serve their masters. Seeing right through this plan, the Yorkshire-man sums up his feelings towards mad-Mario right in line with our own: "I don't trust you one inch!" noting that Draghi's comments on 'buying time' means hours or days not months.

 

 


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Thu, 04/26/2012 - 22:07 | Link to Comment WonderDawg
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Almost as good as Nigel Farage.

Thu, 04/26/2012 - 22:24 | Link to Comment ACP
ACP's picture

So how much is the bounty on this guy's head now?

Don't they have a European equivalent of LIESman to put together an economic "analysis" to show how much Draghi is "helping" the economy? Stephan LIESendrucker?

Thu, 04/26/2012 - 23:43 | Link to Comment dannyboy
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http://www.youtube.com/watch?v=tqERtQfYZdI&feature=g-all-u

Daniel Hannan on how the euro is a mechanism for recession. Love Hannan, so good.

Fri, 04/27/2012 - 08:06 | Link to Comment King_of_simpletons
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Shouldn't it be "I don't trust your one inch"

Thu, 04/26/2012 - 23:52 | Link to Comment SilverDoctors
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Unrelated to this thread but Tyler doesn't have it up yet: the House passed CISPA tonight in an unexpected last minute vote.
It's been nice reading Zerohedge.

http://www.silverdoctors.com/cispa-passes-house-in-unexpected-last-minut...

Thu, 04/26/2012 - 22:09 | Link to Comment q99x2
q99x2's picture

Keep this in mind f'r: when the SHTF you better find a rock to crawl under.

Thu, 04/26/2012 - 22:10 | Link to Comment Cursive
Cursive's picture

There is a point in most thriller movies where the protaganist can save the day if he/she would drop all pretenses of adhering to social norms and just kill the antagonist; alas, the protagonist never takes the necessary measures and we are treated to watching the guy(s) in the white hat try to snatch victory from defeat.  Every day that the wider society allows these banking sociopaths to continue in power, we get farther from the solution to our problems.

Thu, 04/26/2012 - 22:34 | Link to Comment DeadFred
DeadFred's picture

It never works that way even in the movies. They good guy attacks the bad guy then stumbles around in shock until the bad guy gets up and regains controls. They never remember Zombieland Rule#2- The Double Tap. Gotta put zombies and vampire squids down for good.

Thu, 04/26/2012 - 22:12 | Link to Comment Sandmann
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Little Emperors don't care about trusting The People whom they see as a giant blancmange - it is only the threat of RIdicule and Physical Violence that scares these Little Emperors and where - oh where - does real biting satire humble these fools ?

Thu, 04/26/2012 - 22:14 | Link to Comment dannyboy
dannyboy's picture

Tyler i'm pretty sure that link isn't what it's supposed to be..

 

Could it be one of these bud?

Here, Here

Thu, 04/26/2012 - 22:16 | Link to Comment YesWeKahn
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How can someone trust the descendent of Mosolini.

Thu, 04/26/2012 - 22:16 | Link to Comment giggs
giggs's picture

"We have to restore the market confidence so the banks can fund themselves"  By giving them more debt when they're already drowning in it and forcing government austerity?

 

Absolutely comical!

 

Thu, 04/26/2012 - 22:18 | Link to Comment Caviar Emptor
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Once the banksters have gorged themselves on QE money, they'll cut off all support through "austerity" and half the country will be out on the street. Good plan. 

Thu, 04/26/2012 - 23:08 | Link to Comment Bicycle Repairman
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"they'll cut off all support through "austerity" and half the country will be out on the street."

Well after all moral hazard must be considered.  Can't spoil the people.

Thu, 04/26/2012 - 23:16 | Link to Comment Rynak
Rynak's picture

At this point, i don't even think that there is a "well thought through" long-term plan..... a quasi-well-though-through plan was back when they were mainly "farmers" (of humans) and coordinators.... employing a parasitary relationship, in which the serfs were granted just enough niceties to not get really angry.

Now, it almost seems as if they're either desperate and impulsive.... or are hoping that the "big global grap" works, just because the (illusionary) numbers are in their favour.... after all, they can lend forever at nearly no cost... so no matter how much of that they get back, they must be better off, right? And if people decide to pull the material card, the military will keep them in check?

Wasn't part of the reason for the current world order, to AVOID open global conflict, BECAUSE it the risks and destruction is even disadvantageus to them (bit like you don't want a massacre among your lifestock AND be not totally outside of the arena.... much more profitable, predictable and safe to just "farm").

What's my point? I don't buy into the "uber-doomer"-theories of them actually having a desire to risk everything via a global conflict. Thus, the only possibilities left i can imagine are: Wishful thinking that "it will just work out because of the numbers" regardless of the risk.... or they have at least partially lost controle and are just desperately trying to hold what is together. Of course, with "them" not neccessarily being homogenous, those two ideas do not exclude each other.... which makes it even more of a mess.

Fri, 04/27/2012 - 04:50 | Link to Comment NorthPole
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My thoughts exactly! The current predicament is not the creation of TPTB. It is a threat to them, a threat things will collapse and their lies will be exposed. I also agree TPTB are not homogeneous and, for example, the Russian branch is in real competition with the Anglo-Jewish-Saxon branch.

That being said, I do not agree war is not on the table. They would like to avoid it, but at one point the unfolding crisis can very well force their hand. There is simply no other way to reset the system. It's either that or decades of austerity, malaise and inflation which leads straight to revolution - and that's even more dangerous to TPTB than a war controlled by them.

Fri, 04/27/2012 - 01:41 | Link to Comment HarryM
HarryM's picture

Bingo - I figure 2-3 more rounds of QE max, before the meltdown

Thu, 04/26/2012 - 22:19 | Link to Comment Yen Cross
Yen Cross's picture

 Memo to Mario ( Italian connection) Draghi:   You just got " DONKEY KONKED " ...

Thu, 04/26/2012 - 23:54 | Link to Comment i-dog
i-dog's picture

Not in the least. The way Bloom rolled a few questions in amongst rhetoric, polemic and insult just gave the "precious" Drago about a half-dozen options of which was the most convenient for him to answer. "What was the question? ... giggle...sngger" will get the most press coverage.

Absolutely typical way to get nowhere fast in the vacuous stage play that is central government!

Fri, 04/27/2012 - 00:27 | Link to Comment Yen Cross
Yen Cross's picture

 Just Gave the " precocious question" idog?   Nice quote!

Thu, 04/26/2012 - 22:27 | Link to Comment lizzy36
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It is not the banks that need to fund themselves it is the soverigns.

With respect to the banks, someone might want to explain to super mario the difference between liquidity and capital. 

Thu, 04/26/2012 - 22:40 | Link to Comment disabledvet
disabledvet's picture

INDEED! Abraham Lincoln called it "necessity"...and that is ALL the "why the Fed is doing what it's doing" here in the states. THEY MUST! (the irony is that it also happens to be the right thing to do as well. go figure.) Having said that...the THEY MUST moment is coming "fast and furious" upon Europe. The fact that it is precisely the WRONG thing is IRRELEVANT. "Necessity dictates their actions" in order...ironically enough "to hold the Union together." Here endeth the lesson.

Thu, 04/26/2012 - 22:42 | Link to Comment Yen Cross
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 I nominate "  Lizzy36" ! 

Thu, 04/26/2012 - 22:36 | Link to Comment dasein211
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So when does it end? When does the ability to print money fucking end? Ever? Fuck this shit could take... 50 years!! 100 years?!?! When does the goddamn band stop?! I'm so sick of this dragging on. We all know it comes apart- cant argue with math- but fucking when?!?!?!?!

Thu, 04/26/2012 - 22:46 | Link to Comment disabledvet
disabledvet's picture

"why would we want it to end?" do any of us truly gain any personal benefit from the demise of the EU? i say no...of course not. GREAT for the smallest of the small subsets of the American populace (equity traders.) For the population as a whole? That would be China...not "Europe flying apart." Their goal is NOT to be subjected to Wall Street (and all the other) traders but to run their businesses...and their economies...in a way that "self-finances." And they are very wise to do so! Since US based companies are trying to do the same thing...PRESTO! "Chimerica."

Fri, 04/27/2012 - 00:04 | Link to Comment JPM Hater001
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I do.

Of course the really hard part is it still may not end The Fed.

Oh, and stop speaking for me. I have every right to profit from stupid. That, my friend, is free market capital and survival of the fittest at its best!

By the time I got to the bottom it was clear you were being facecious.

Fri, 04/27/2012 - 04:06 | Link to Comment The Swedish Chef
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It can go on for quite some time if we look at recent history (Japan). But no one really knows, this is quite a new situation with paper regimes in all of the worlds CBs and the printing presses running hot everywhere. 

 

What we do know is that an awful amount of wealth is going to get destroyed before it´s all over.

Thu, 04/26/2012 - 22:50 | Link to Comment l1b3rty
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All this talking! it is great seeing wielders of power stand up to the .00001%, but how do we transfer the power? Us ZeroHedgers gotta ZeroBalance the powers-that-be!

http://silvervigilante.com

Thu, 04/26/2012 - 22:53 | Link to Comment NOPOMO
NOPOMO's picture

So what..he lied...they all do.  All for the ramp in Global equities so the elite can sell it to the ponzi 401K holders.  Remember, everytime the market goes up...mutual funds are forced to buy at higher prices.  This is the method they selected to off load it to the public. 

The market volume is very telling, market increases with volume decreases does not follow the laws of supply & demand.

Benny is lying to us all.  You can fool some of us some of the time, but not all of us all of the time.  Ben is a broken record and has taken predictability to a whole new level.  It all works until it doesn't.

 

 

Thu, 04/26/2012 - 22:58 | Link to Comment chump666
chump666's picture

Beautiful. 

Mario is mad

Thu, 04/26/2012 - 23:05 | Link to Comment CURWAR2012
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Mariocart is either caught in a huge lie or he is so damn deranged that he does think "market conditions" can be restored. 

Thu, 04/26/2012 - 23:12 | Link to Comment chump666
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He is deranged.  The ECB threw the rulebook away and he set the ECB up as a huge speculation engine.  It needs to be funded -  that being the EURO printing press and/or Fed and IMF. 

When Sarkozy gets thrown out, Merkel will go next.  The ECB is going to be in a world of hurt as Europe goes back to the right.

Fri, 04/27/2012 - 05:27 | Link to Comment NorthPole
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Goes back to the right? Are you mad chump? Both Sarkozy and Merkel will be replaced by candidates from the Print Party. And then it's fiesta time. Until it ends.

Hollande may be campaining on the anti-bank anti-ecb stance, but in the end of the day what counts is that he is against austerity. And if not austerity, then what? Why printing, of course. Same goes for whoever ends up replacing Merkel.

Thu, 04/26/2012 - 23:08 | Link to Comment chump666
chump666's picture

"Whats the Question?"  F*ck me, the LTRO was the biggest con this side of the Fed...which funds the ECB/EZ bank re-caps and their bs backstopping.

What a dumbass, in fact that dumbass sounds like that Krugman maniac.  These butnut determinists using this most archaic economic theory known to man are about to smash the global economy intro oblivion. 

Point is, Europe is zombie that its people are now realizing is completely dead.  So cue riots you academic fools.

UK go for the jugular, your GBP is bid at the moment and your gilts could get a lift if the EU/EZ falls apart.

 

Thu, 04/26/2012 - 23:11 | Link to Comment Yen Cross
Yen Cross's picture

Chump, you 75% correct.  Trickie times we live in.  In times past the ECB & BIS would sterilize

Thu, 04/26/2012 - 23:15 | Link to Comment chump666
chump666's picture

That is right.  But France and Germany allowed Mario free reign.  Now that French idoit is done, the German is next...Mario only support will be the Fed and IMF.

We get equities rally and the EZ banks are still sh*t!  Put it this way I aint going to Europe for awhile.  Even Holland looks shaky, that was the coolest place for a long time.

It's actually really sad.

 

Thu, 04/26/2012 - 23:26 | Link to Comment Yen Cross
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  I'm a bit confused ( chump666) , Mario Draghi was part of the Italian reallignment, and the new ECB appointment.

 The world has been laughing, because of Draghis' record with Italian banks. Italy has just under 2 $ trillion of debt, and 1.4  trillion to roll in the next 18 months.

Thu, 04/26/2012 - 23:46 | Link to Comment chump666
chump666's picture

He tore up the ECB rulebook, Sarkozy and Merkel allowed that to happen. Type in Goggle all the German ECB members that resigned, all were pissed with where the ECB was heading.  Now Bundesbank is getting more pissed.  IMO once France and Germany change political leaders the ECB is going to be put under huge amount of pressure.  Essentially it's operating like a rogue goverment with it's polices. It's completly out of control, I'd say worst than the Fed.

Yen, you see the EUR bids when EZ went was selling hard?  That was Germany freaking out and it's banks buying up EUR, why?  Inflation.  If Mario goes all out and prints if Spain/Italy/France/Holland implodes...And Sarkozy loses the election, Merkel loses all power.  Total chaos.

Getting closer now.

Thu, 04/26/2012 - 23:58 | Link to Comment Yen Cross
Yen Cross's picture

 Excellent work ! The EU has roughly (3 Trillion € ) to liquidate over the next 2.5 years.  Where is " Berlusconi"?

  Mario is all about printing! You are 100% correct!   ( GREECE) is my answer!  Chump, you are a pleasure to speak with!

  ALWAYS have been! ( from day1)! Stay sharp!

Fri, 04/27/2012 - 00:42 | Link to Comment chump666
chump666's picture

Thanks Yen.

But yes good point Berlusconi or similar is waiting for their moment. Riots all summer in the EU?

Fri, 04/27/2012 - 04:19 | Link to Comment noses
noses's picture

Merkel ad Sarkozy allowed that to happen? Sorry guys, that's "demo-crazy" for you. The majority decides and the rest has to pay for the fools' decision. Of course Germany and a few other northern states could just call it quits and let the rest rot in its misery...

Thu, 04/26/2012 - 23:25 | Link to Comment Dre4dwolf
Dre4dwolf's picture

Faith has been lost in the banking system..... when an engine blows a piston in your race car, does the driver get out, get a towe truck and towe his car to the victory line?

Highly unlikely, but thats exactly what all the central banks - individual institutions and government are doing.

 

More than likely your just driving yourself to the junk yard... and thats where bonds are heading, to the junk yard.

 

The outcome is predictable.... a war ... a war so that they can invoke nationalism and sell bonds to their own citizens..... who would be the worst for it after the inflation essentially makes it a negative investment worst than if you shoved the cash under the mattress. . . .  "liberty War bonds" here we come.... "uncle sam wants YOU to buy useless paper because thats how we win wars!!!!" lol the posters would probably gain more value than the bonds in 10 years.

 

New banks

New bonds

New currency

New Government

Hold the war and propaganda please.

Thu, 04/26/2012 - 23:34 | Link to Comment TWSceptic
TWSceptic's picture

I have more trust in a car salesman than Mario.

Fri, 04/27/2012 - 00:08 | Link to Comment nathan1234
nathan1234's picture

I would rather trust a rattlesnake than Mario Draghi

He is presiding over the rape and pillaging of Europe and the world as per his instructions from his cabal.

 

 

Thu, 04/26/2012 - 23:36 | Link to Comment bigdumbnugly
bigdumbnugly's picture

the people don't trust his one inch you say?

now how much damage could he possibly do with that?

 

guess he needs a theme song to bolster his image:

http://www.youtube.com/watch?v=KC5j0dTw1BI&feature=related

Thu, 04/26/2012 - 23:41 | Link to Comment Thomas Jefferson
Thomas Jefferson's picture

Greece will default next month.  Gold bitchez!  You have no choice.

Thu, 04/26/2012 - 23:49 | Link to Comment Piranhanoia
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Draghi thinks he's god.  He creates things.  Worthless things.

Fri, 04/27/2012 - 00:01 | Link to Comment Change-In-Trend
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    Fri, 04/27/2012 - 00:17 | Link to Comment Yen Cross
    Yen Cross's picture

     My limit orders got hit! Finally..<>  Took partial profit.

    Fri, 04/27/2012 - 01:11 | Link to Comment tok1
    tok1's picture

    Its almost comical comming from England since BOE has been buying 70-80% of UK long bonds for last few years.. FED has been buying 90% of US long debt through  twist.. BOJ been buying for ever.. yet ECB will not buy any Spanish debt... and if they do the countries whose central banks are really the big buyers tell them whats going wrong..

     

    its a joke right..

     

     

    Fri, 04/27/2012 - 01:18 | Link to Comment wee-weed up
    wee-weed up's picture

    Memo To Draghi: We, The People, "Don't Trust You One Inch"

    Memo To Obama: We, The People, "Don't Trust You One Inch"

    Corrected... much more applicable to those of us suffering in America.

    Fri, 04/27/2012 - 02:34 | Link to Comment Jack Sheet
    Jack Sheet's picture

    Please ensure that the "best before" date on your shit sandwich is not exceeded before consumption.

    Fri, 04/27/2012 - 03:43 | Link to Comment Nussi34
    Nussi34's picture

    Draghi is an insult to the Institute!

    Fri, 04/27/2012 - 05:20 | Link to Comment Jack Sheet
    Jack Sheet's picture

    Mainstream financial economics - a disgusting abortion masquerading as an academically based discipline

    Fri, 04/27/2012 - 04:01 | Link to Comment The Swedish Chef
    The Swedish Chef's picture

    If you cklick carefully and stop at the right time you can hear Draghi say "...give money around so that banks can circumvent 1,2,3..." Which is pretty much what they do: Give money to the banks, banks fund deficit and make a chunk of tax payer money in the process. Wash, rinse repeat.

    Fri, 04/27/2012 - 04:59 | Link to Comment falak pema
    falak pema's picture

    I would believe Brit criticism of ECB shenanigans if it were accompanied by a call for ALL City banks to OPEN their books and show whats going on in their OWN back yard; where they are protected by BOE/FED "QE-in print as you like money" that is ZIRPed for them to attack the Eurozone. Its a beggar thy neighbour strategy and City and WS are up to their necks in it.

    SO its a two edged sword; this Euro crticism, as it hides the similar sleight of hand played out in Anglo lands on a much higher scale; thanks to BOE/FED-Banksta collusion of unparalleled magnitude. 

    All aboard the Titanic...and each defending his own shoddy capitalist structure of financialised junk yard, while the gaping hole gets bigger and bigger...

    Fri, 04/27/2012 - 05:19 | Link to Comment Jack Sheet
    Jack Sheet's picture

    Agreed FP but neither Bloom nor Farage are defending the City of London which is as immune as Manhattan against any litigation whatsoever. Where are the critical questions from the continental European MEPs? Why do we have to go to ZH to get viable news aggregation on the ECB and why is there nothing comaparable on a French or German website? My guess- collective anaesthesia.

    Fri, 04/27/2012 - 11:13 | Link to Comment Sandmann
    Sandmann's picture

    German Websites are lame and somewhat over-regulated. There are fewer independent voices in Germany or France and careers can be shortened by disrupting social harmony. The big problem for London and Frankfurt and I suspect Brussels and Amsterdam is that the toxic waste is not national toxic waste but daisy-chained foreign non-performing junk from Russian Oligarchs, Spanish condo construction groups, some very flaky LBO structures, and some fake bond portfolios.

    In fact, I would haxard a guess that the huge Fraud at RBS that noone wants to talk about or investigate is the tip of an iceberg that makes MF Global look like a teenage practical joke. I suspect that Banks merged and consolidated - say ABN/AMRO and RBS or BoA and Merrill without ever looking at whether Assets really weren't Liabilities, and where exactly they were parked.

    The whole sorry mess shows why Banks should simply have been taken into State Control and all Derivatives simply annulled, Credit Card Debts cancelled and Consumer Credit interest capped to force banks to do proper credit scoring in future. Banking is taking up too much of our time for a chronic loss-making business that cannot earn its cost of capital without high-wire leverage. There is too much overcapacity in the prop end of banking and too little competition in the utility end.

    Fri, 04/27/2012 - 07:18 | Link to Comment asteroids
    asteroids's picture

    The FED and the ECB are under the illusion that banks are required to reestore the market. You could wipe banks off the face of the planet and the market would continue the very next day.

    Do NOT follow this link or you will be banned from the site!