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Merkel Is Baaaaaaack

Tyler Durden's picture





 

Hold on tight boys and girls, cause Merkel is back from vacation, and she is not happy despite that healthy Santorini due diligence-inspired tan (as deputy-Chancellor Fuchs telegraphed earlier today, when he made it quite clear what his boss thinks about Greece, and about more printing). Per Bloomberg: "German Chancellor Angela Merkel returns to the front line of the European debt crisis this week as the bloc’s leaders squabble over measures including bond purchases to relieve concerns the single currency may fragment. Merkel ends her summer vacation and travels to Canada Aug. 15-16 for talks with Prime Minister Stephen Harper as a spiraling euro crisis threatens to constrain the global economy. With the region’s leaders awaiting a German high court decision on bailout funding next month, they’re struggling to smooth divisions over a European Central Bank plan to buy the bonds of indebted nations."

Bloomberg proceeds to recap what we already have explained over and over: the lack of an impetus by soon to be bailed out governments to act if they are bailed out, coupled with the impetus to cheat and do nothing, as well as the inevitable arrival of the German referendum.

"It makes no sense for the ECB to start financing” Spain and Italy, ECB Governing Council member Luc Coene said in an interview with newspapers De Tijd and L’Echo published on Aug. 11. “It would only lead to the ECB taking on the whole public debt of Spain and Italy onto its balance sheet.”

 

The possibility that Germany’s high court will demand greater elector participation in euro decisions raised the prospect of a referendum in the euro area’s biggest economy, placing the country’s commitment to the currency in the hands of voters at time that polls show rising discontent with the costs of the crisis.

 

The policy maker said the central bank’s experience a year ago demonstrates why the ECB is reluctant to step in. 

 

"We haven’t forgotten what happened in August of last year: We bought Italian bonds and right after that the Italian government reneged on its pledges,” Coene was quoted as saying. “The conclusion is clear: When you take away the market pressure, you take away the pressure on politicians to act.” 

 

While Merkel has resisted the notion of a referendum, Rainer Bruederle, the parliamentary caucus leader of her Free Democratic coalition partner, told Hamburger Abendblatt last week that Germany’s role in the crisis might need to be put to a vote.  

 

“We may come to a point where a referendum about Europe becomes necessary,” Bruederle told the newspaper. “The future development of the debt crisis will show how much the EU countries will be asked to give up sovereignty.”

Finally, just because it has not been on the front pages in over a month, does not mean that Europe's basket case, Greece, has been fixed. Far from it.

The monthlong wait for the ESM decision will be paralleled by anticipation on whether Greece continues to receive euro rescue funds. Greece’s troika of international creditors -- the ECB, the European Commission and the International Monetary Fund -- will return to Athens in early September to resume talks as Greek Prime Minister Antonis Samaras seeks to hammer out 11.5 billion euros in budget cuts for 2013 and 2014.

 

German Vice Chancellor Philipp Roesler, who drew international criticism last month for resurrecting the possibility of a Greek exit from the euro, told Focus magazine that such a scenario would be “manageable,” echoing a statement by Luxembourg Prime Minister Jean-Claude Juncker.

 

“Hardly any of our offers have been taken up by the Greeks,” Roesler told Focus Aug. 11, referring to economic support put forward by the German government and industry.

 

The ECB’s Coene said a Greek exit “would be the worst solution,” adding in the interview that “it would raise a question about euro membership for everybody, not only for Greece.”

Oh well - the vacation was fun while it lasted. And now, as a complete tangent, here is a montage of Hitler repeating "nein" for 10 hours straight.

 


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Sun, 08/12/2012 - 20:03 | Link to Comment Precious
Precious's picture

"Things were so much simpler in East Germany."

Sun, 08/12/2012 - 20:12 | Link to Comment old naughty
old naughty's picture

When they are in the Soviet blog.

Cold war. External enemies.

No muddle through.

Sun, 08/12/2012 - 20:24 | Link to Comment macholatte
macholatte's picture
Angie http://www.youtube.com/watch?v=rXRExocnpUw .......... Songwriters: JAGGER, MICK/RICHARDS, KEITH

Angie, Angie, when will those clouds all disappear?
Angie, Angie, where will it lead us from here?
With no loving in our souls and no money in our coats
You can't say were satisfied
But Angie, Angie, you can't say we never tried
Angie, you're beautiful, but ain't it time we said goodbye?
Angie, I still love you, remember all those nights we cried?
All the dreams we held so close seemed to all go up in smoke
Let me whisper in your ear:
Angie, Angie, where will it lead us from here?
Oh, Angie, don't you weep, all your kisses still taste sweet
I hate that sadness in your eyes
But Angie, Angie, ain't it time we said goodbye?
With no loving in our souls and no money in our coats
You can't say were satisfied
But Angie, I still love you, baby
Everywhere I look I see your eyes
There ain't a woman that comes close to you
Come on baby, dry your eyes
But Angie, Angie, ain't it good to be alive?
Angie, Angie, they can't say we never tried

Sun, 08/12/2012 - 20:26 | Link to Comment Colombian Gringo
Colombian Gringo's picture

Gosh, you must be a real masochist to want to whisper into Angie Merkels ear. Even a liter of shnapps couldn't improve her looks :)

Sun, 08/12/2012 - 22:44 | Link to Comment Thomas
Thomas's picture

She looks really hot. The vacation has done wonders.

Sun, 08/12/2012 - 22:52 | Link to Comment StychoKiller
StychoKiller's picture

That picture looks like she caught a whiff of the Sh!t-sandwich that Draghi's been 'narfin' on... :>D

Mon, 08/13/2012 - 01:25 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Italian newspaper said: "Ciao, ciao, culona!"

Bye, bye, fatass!   LOL!

Mon, 08/13/2012 - 06:13 | Link to Comment AldousHuxley
Mon, 08/13/2012 - 08:07 | Link to Comment TWSceptic
TWSceptic's picture

Is that a silver necklace around her neck?

Sun, 08/12/2012 - 20:48 | Link to Comment azzhatter
azzhatter's picture

Somehow I always pictured Mick's Angie a little more petite

Sun, 08/12/2012 - 21:38 | Link to Comment mick68
mick68's picture

+10000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

Mon, 08/13/2012 - 00:16 | Link to Comment tenpanhandle
tenpanhandle's picture

your comment is somewhat outside the box.

Mon, 08/13/2012 - 03:28 | Link to Comment Peter Pan
Peter Pan's picture

"Things were so much simpler in East Germany."

I agree. The hot water tap was colder than the cold water tap.

Sun, 08/12/2012 - 20:05 | Link to Comment Uncle Remus
Uncle Remus's picture

I knew you'd be surprised...

Sun, 08/12/2012 - 20:06 | Link to Comment erg
erg's picture

Bowel movement? Bed face? On second thought don't tell me.

Sun, 08/12/2012 - 20:06 | Link to Comment HD
HD's picture

Excellent use of the photo Tyler. Screams to be an Avatar...

Mon, 08/13/2012 - 00:17 | Link to Comment tenpanhandle
tenpanhandle's picture

I'm still screaming.

Sun, 08/12/2012 - 20:06 | Link to Comment fonzannoon
fonzannoon's picture

Whatever...Merkel is angry....Merkel shows signs of giving in....Merkel is angry....Spanish yields up....Spanish yields drop. Any crisis that can go on vacation is not a crisis.

Sun, 08/12/2012 - 22:02 | Link to Comment taniquetil
taniquetil's picture

I'm confused. Is this bullish for Facebook?

Sun, 08/12/2012 - 20:07 | Link to Comment ShortTheUS
ShortTheUS's picture

I get it: She's 'Frau'-ning.

Sun, 08/12/2012 - 20:10 | Link to Comment LoneStarHog
LoneStarHog's picture

Gawd! She looks like she just passed a Janet Napolitano!

Sun, 08/12/2012 - 20:58 | Link to Comment TrainWreck1
TrainWreck1's picture

or caught an eyeful of a Hillary nip-slip

Sun, 08/12/2012 - 21:12 | Link to Comment francis_sawyer
francis_sawyer's picture

Well if you see something like that ...

"I say hurl. If you blow chunks and she comes back, she's yours. But if you spew and she bolts, then it was never meant to be..."

~Wayne Campbell

Sun, 08/12/2012 - 21:32 | Link to Comment eaglefalcon
eaglefalcon's picture

For some women, such facial expression indicates severe constipation, for others it's a sign of orgasmic ecstacy

Sun, 08/12/2012 - 23:30 | Link to Comment knukles
knukles's picture

Anal Prolapse Orgasm

Sun, 08/12/2012 - 20:12 | Link to Comment pleseus
pleseus's picture

For some reason the markets are acting like Europe is fixed.  Sorry, QE doesn't fix the problem.  Fixing a debt crisis with more debt won't work.  This fiscal union ain't gonna happen.  You don't marry the person you hate.

Sun, 08/12/2012 - 21:30 | Link to Comment A Lunatic
A Lunatic's picture

You do if you want a lifetime commitment on all you can take forced anal intercourse.............

Sun, 08/12/2012 - 23:47 | Link to Comment LibertarianX
LibertarianX's picture

Also..btw...as the € falls the bank with the largest balance sheet in the world sees its traded risk as measured by its VaR rise as it is significantly positively correlated with a falling €....which is not ideal....

Just saying...

Mon, 08/13/2012 - 08:02 | Link to Comment oogs66
oogs66's picture

Blah, blah, rolling debt isnt adding debt on debt and the consensus view is it doesn't work. Cnbc and zh 100% on same page.

Sun, 08/12/2012 - 20:13 | Link to Comment Bay of Pigs
Bay of Pigs's picture

NEIN! Please stop...

Sun, 08/12/2012 - 20:14 | Link to Comment gwar5
gwar5's picture

I heard that swallowing schnitzel in the morning would cure Merkel's facial expression.

 

Sun, 08/12/2012 - 20:14 | Link to Comment buzzsaw99
buzzsaw99's picture

CAPTION TIME!

Well, which one is it baby, Spitz or Swallows? [/austin powers]

Sun, 08/12/2012 - 20:18 | Link to Comment gwar5
gwar5's picture

you read my mind buzz....

Sun, 08/12/2012 - 20:36 | Link to Comment Manthong
Sun, 08/12/2012 - 20:22 | Link to Comment Bobportlandor
Bobportlandor's picture

Well I guess that means 6 more weeks of turmoil.

Sun, 08/12/2012 - 20:26 | Link to Comment JohnKozac
JohnKozac's picture

Canada is very expensive these days with the oil sands Boom and their Uber-Loonie Housing Bubble.  She better bring a big purse.

Sun, 08/12/2012 - 20:30 | Link to Comment fonzannoon
fonzannoon's picture

What are you talkin aboooot?

Sun, 08/12/2012 - 20:44 | Link to Comment Nadaclue
Nadaclue's picture

Merkal is going to Canada not to ask for beer, as we all know Germany brews some of the best dark beers, nothing the Canooks can even quarter less match, but to ask for loonies.

Being fellow socialists but selfish as they are, they may give her a Salmon and send her on her way.

Thanks for the fish and fuck you will be her reply.

I'm lovin it, being a PT Canook.

 

Sun, 08/12/2012 - 22:43 | Link to Comment canardo
canardo's picture

The Belgians make the best beer

Sun, 08/12/2012 - 20:58 | Link to Comment erg
erg's picture

lol We've all heard of a double-negative. In newfinese there is something best described as a quadruple-negative and it goes like this.

You don't know nobody who don't want nothing done? Someone looking for work.

Edit: Some of the friendlest people on the continent and no I am not from there nor live there. Shirt off their back type of people.

Sun, 08/12/2012 - 23:53 | Link to Comment tenpanhandle
tenpanhandle's picture

Northern Ozarks.

Sun, 08/12/2012 - 20:30 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"...here is a montage of Hitler repeating "nein" for 10 hours straight."

I can die happy now.

Montage, mmmm...fade out...

Sun, 08/12/2012 - 23:56 | Link to Comment tenpanhandle
tenpanhandle's picture

After eight hours my shift at the CFTC was done and I had to turn it off.  Can you tell me how it ended?

Sun, 08/12/2012 - 20:33 | Link to Comment mktfizx
mktfizx's picture

"It makes no sense for the ECB to start financing” Spain and Italy, ECB Governing Council member Luc Coene said in an interview with newspapers De Tijd and L’Echo published on Aug. 11. “It would only lead to the ECB taking on the whole public debt of Spain and Italy onto its balance sheet.”

Or, it makes all the sense depending on your plan.  When you hold of the debt, you have control. 

Sun, 08/12/2012 - 21:38 | Link to Comment AbelCatalyst
AbelCatalyst's picture

Yeah, total control until they default... Then what? Take it by force? War? Bank collapse? You only have the power if there are underlying laws that protect your interests and in a default the country simply stops paying... Then what? Hmmmm.... Your move...

Sun, 08/12/2012 - 23:37 | Link to Comment knukles
knukles's picture

Makes no sense to start?
They already started buying that crap.
Jesus....

And BTW, the newspapers De Tijd and L’Echo loosely translated into Ehglish mean The Turd and The Fart smell.

Don't blame me, it was Googledegook

Sun, 08/12/2012 - 20:34 | Link to Comment booboo
booboo's picture

This pretty much sums it up

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

Sun, 08/12/2012 - 22:33 | Link to Comment canardo
canardo's picture

+ one million

Mon, 08/13/2012 - 00:01 | Link to Comment tenpanhandle
tenpanhandle's picture

I'll second that.

Sun, 08/12/2012 - 20:37 | Link to Comment Dareconomics
Dareconomics's picture

No one is letting any of these countries default, because no one wants to be blamed for the catastrophic depreesion that would follow the exit or default of a member. The logic in my two posts on Greece applies to all of the countries.

dareconomics.wordpress.com/2012/08/11/greece-is-insolvent/

dareconomics.wordpress.com/2012/08/11/greece-is-insolvent-ii/

Sun, 08/12/2012 - 21:43 | Link to Comment AbelCatalyst
AbelCatalyst's picture

What do you mean, letting someone default? These are sovereign countries who can choose to stop paying whenever they want... That is why interest rates rise to cover this risk. At some point one of these countries will say screw it and stop paying... They just need to suffer sufficiently and realize that default will result in the least amount of pain... That day is approaching...

Sun, 08/12/2012 - 20:37 | Link to Comment GS-DickinDaMuppets
GS-DickinDaMuppets's picture

Well, I see in the beginning of the article it mentions "...as deputy-Chancellor Fuchs telegraphed earlier today,...", and I wouldn't be a bit surprised if the Head Chancellor fuchs too.  For that matter I'm pretty sure Merkle fuchs if you get a few beers down her, and while I have your attention I think the whole EU and all of it's crony politicians fuch.  They ALL FUCH!

Oh WTFuch!  I always wondered how the Europeans spelled that word....

 

...doing GOD's work...GS-DickinDaMuppets

Sun, 08/12/2012 - 20:42 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Yes, yes, the Germans "are angry". LOL. They will bail, and bail again and then again. All the "anger" and "outrage" is the stuff of high-school drama class. Reality is they will never ever vote to disturb their cozy little arrangement for the sake of an ideal, a theory, a slogan or a philosophy about what's "right and wrong". 

Sun, 08/12/2012 - 21:07 | Link to Comment disabledvet
disabledvet's picture

at 6 percent unemployment "so far so good." the "sucks to be you" recovery.

Sun, 08/12/2012 - 21:10 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Panzer tank, Stuka dive bomber, V2 rockets.

Sometimes it just gets really weird and cozy had little to do with it.

The vision of where the money is to be made becomes hazy.

Sun, 08/12/2012 - 20:42 | Link to Comment Wakanda
Wakanda's picture

Angie is back from summer holiday and not looking rested or relaxed.  Will she be able to string the markets along until the end of August?

Adolf says nien.

 

Sun, 08/12/2012 - 20:46 | Link to Comment vertexa
vertexa's picture
CNBC Stand-In Reporter Admits Financial System Changeover: “They’re Going to Put the Old System In a Coma”!

Separately, I have personally heard from several different sources in the past two days, that big things are about to happen this coming week with regards the world’s financial system. A good weekend indeed!

Sun, 08/12/2012 - 21:34 | Link to Comment A Lunatic
A Lunatic's picture

Troll garbage.....

Sun, 08/12/2012 - 20:45 | Link to Comment lolmao500
lolmao500's picture

She's sexually frustated... all she needs is a good fucking... now the difficult question... who wants to tap that?

Sun, 08/12/2012 - 20:50 | Link to Comment booboo
booboo's picture

ask the crew after about 12 beers and two minutes till last call, "She leally wooks nery vice"

Sun, 08/12/2012 - 21:30 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

In America, there is always some black guy ready to holla at that. Aw SNAP benefits baby!

Sun, 08/12/2012 - 23:23 | Link to Comment bigkahuna
bigkahuna's picture

Really?

Sun, 08/12/2012 - 22:39 | Link to Comment canardo
canardo's picture

Venizelos maybe? Earn his keep so to speak?

Sun, 08/12/2012 - 20:57 | Link to Comment Cabreado
Cabreado's picture

There is a big huge disconnect between Merkel's relative power and her behavior.

That's what happens when false leaders end up in the driver's seat, enabled by lies, and driven by aspirations unbefitting real needs...

and now, awaiting orders from those who of course have no answers.

 

Sun, 08/12/2012 - 20:58 | Link to Comment Atomizer
Atomizer's picture

 

 

Clearly, Ménage à trois is in full Global effect. Largarde, Merkel and Janet Napolitano. Who is wearing the strap on. Inquiring minds what to know? 

Update on the Middle East with IMF Managing Director, Christine Lagarde

Sun, 08/12/2012 - 21:09 | Link to Comment caimen garou
caimen garou's picture

I would guess they all are, playing odd man out.

Sun, 08/12/2012 - 21:07 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Zee summer is over my friends. Now let the real games begin ...

 

Sun, 08/12/2012 - 21:09 | Link to Comment km4
km4's picture

New CIA paper: Goal of US-UK Mossadegh overthrow in  was to protect UK currency reserves. Wow.  cc:

Sun, 08/12/2012 - 21:25 | Link to Comment BudFox2012
BudFox2012's picture

You forgot to mention that he was being interviewed by Lauren Lyster on Capital Account.  That alone would be worth 50 up arrows on your comment...

 

Sun, 08/12/2012 - 23:26 | Link to Comment bigkahuna
bigkahuna's picture

Thats a pretty good channel for the most part. Keep in mind that RT is the Russians airing everyone elses dirty laundry.

Mon, 08/13/2012 - 03:15 | Link to Comment Sandmann
Sandmann's picture

Not a bad policy when the Corporatist Channels in the GE, Time-Warner, Murdoch, etc stables all air WHITEWASH

Mon, 08/13/2012 - 10:20 | Link to Comment bigkahuna
bigkahuna's picture

Agreed. Just saying that the people behind the channel are not necessarily the most benevolent themselves.

Mon, 08/13/2012 - 03:14 | Link to Comment Sandmann
Sandmann's picture

I wouldn't mind Lauren Lyster either - we have a lot to discuss

Sun, 08/12/2012 - 21:13 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

is that the face of risk0n?

sell, BiCheZ, sell!

Sun, 08/12/2012 - 21:26 | Link to Comment disabledvet
disabledvet's picture

She just needs to channel her inner "Evel Knievel" and my view is "it's all good from here." You don't even need to stick the landing...per se...but boy it look's good when you do:http://www.youtube.com/watch?v=hZoz9-LEIDo&oref=http%3A%2F%2Fwww.youtube...
they didn't call him "the last gladiator" for nothing. they say during the Portland jump...probably one the greatest spectacles in history...that a bunch of biker gang Hell's Angel types tried to take over the facility and start charging people money they didn't have...at least until Evel told the crowd the kick their ass...which is precisely what the crowd did! Pin the Edelweiss Angela...now is not the time to be squishy.http://www.youtube.com/watch?v=IUdDm_6gQxc

Sun, 08/12/2012 - 21:30 | Link to Comment monopoly
monopoly's picture

 the ECB, the European Commission and the International Monetary Fund -- will return to Athens in early September to resume talks as Greek Prime Minister Antonis Samaras seeks to hammer out 11.5 billion euros in budget cuts for 2013 and 2014.

 

Oh good. They will be talking, now I feel much better that all will be solved in September. As long as they talk.

Sun, 08/12/2012 - 21:46 | Link to Comment Yen Cross
Yen Cross's picture

 The Spanish 10 year note is .005 bps from 7%. I hope Draghi loaded up on anal lube...  He's gonna need it with Fraulein Merkel back in town!

 I was expecting a little follow thru from Friday into the Asia open. The fact that China didn't do a RRR cut today, and those crappy #'s with the dead cat bounce today, is starting to look like a nice shorting opportunity.

Sun, 08/12/2012 - 21:42 | Link to Comment JR
JR's picture

And now, as a complete tangent, here is a montage of Hitler repeating "nein" for 10 hours straight.

Chancellor Andrea Merkel is not a Nazi; she does not wear insignias with swastikas; the use of Nazi symbolism with modern Germany has become synonymous with the Zionist message:  You know what? These are GERMANS, that’s who they are. They are a special kind of people, they are not even quite human. In fact, they are monsters; therefore, it’s only right to demonize them and take their private property.

I pray God Merkel says “nein” to the greed and grasp for power of these bankers who are devastating the peoples of Europe, where millions of the unemployed now haunt the streets both in Europe and America.

This is what happens when the prerogative over the issue of money is usurped by international bankers and they entangle you oh so harmoniously into a banker-contrived "union" – into a bankerzone. They are parasites that destroy their hosts.

Nein! Nein! Nein! If only Obama or Romney would say "nein" for 10 hours straignt.

Sun, 08/12/2012 - 22:28 | Link to Comment sabra1
sabra1's picture

"Nein! Nein! Nein! If only Obama or Romney would say "nein" for 10 hours straignt."

Obama does! c'mon who wants to play nein holes today? 

Mon, 08/13/2012 - 03:13 | Link to Comment Sandmann
Sandmann's picture

It is the Morgenthau Plan Mk II - a form of predatory Neo-Colonialism waged by New York and London against any group that resists Financial Strip-Mining

Sun, 08/12/2012 - 22:08 | Link to Comment Spastica Rex
Spastica Rex's picture

That picture is awesome!

Mon, 08/13/2012 - 00:14 | Link to Comment tenpanhandle
tenpanhandle's picture

typical passport picture, whats the big deal.

Sun, 08/12/2012 - 22:33 | Link to Comment q99x2
q99x2's picture

Rumor time.

Sun, 08/12/2012 - 22:39 | Link to Comment ptolemy_newit
ptolemy_newit's picture

Dear Ms Merkel, I have made a similar face when I think of the US federal reserve (WMD).

I think you are powerful , attractive and it would be my pelaseure to hold your hand, walk in the park and open the doors for you.

Call on me anytime!

John

 

Mon, 08/13/2012 - 00:13 | Link to Comment tenpanhandle
tenpanhandle's picture

you sir are a brave lad.  What would you do if she showed up at your door?

Sun, 08/12/2012 - 22:47 | Link to Comment jhm
jhm's picture

May i add that this man Michael Fuchs is not at all deputy chancellor, but only deputy chairman of the Christian Democratic Unions (CDU) parliamentary group at the Bundestag, the German Federal Parliament. He is one of 10 (ten) deputy chairmen- and women in the parliamentary group of the CDU. He is responsible for economy, Mittelstand (small and medium sized businesses), tourism and petitions. What he states publicly surely is at least as important as what the chairman of the federal german rabbit breeders association has to say.

Mon, 08/13/2012 - 03:12 | Link to Comment Sandmann
Sandmann's picture

This has been mentioned before by GERxit on another thread. It seems ZH is simply unable to learn from feedback and is ignorant of the political structures in a major European nation and economic power. It suggests the analysis is completely wacko.

Mon, 08/13/2012 - 03:20 | Link to Comment Ghordius
Ghordius's picture

+1 this was here 2698804 and I second that. without at least a cursory understanding how parliamentary multi-party systems function it's very difficult to make a sensible analysis.

-----

to repeat a recent rant of mine: we, in the Western World, just had 40 years of economy like never before. and this time is finishing. what you are witnessing is the return of the Political Economy, as all classical economist knew and took for granted

witness the hedge fund managers quitting in despair because they can't understand what drives politics, particularly in europe.

lots of young "financials" that grew up in a world where politics was not important for the markets will have to adapt. including trying to understand why parliamentary systems are important, if only because they are important to some

Mon, 08/13/2012 - 05:59 | Link to Comment Sandmann
Sandmann's picture

Very good comment !  It is clear that Political Economy is back after a few decades of pretending to be "Scientific" in a sort of Capitalist Antithesis to "Scientific" Marxism. This is an excellent book to reflect on -

http://www.amazon.co.uk/The-Jewish-Century-Yuri-Slezkine/dp/0691127603/r...

because it shows how fake the dichotomy really was and how much it was part of a particular era rather than having permanent features. Once the fake dichotomy is dropped it can be seen just how far off course Political Economy has veered

 

Mon, 08/13/2012 - 06:23 | Link to Comment Ghordius
Ghordius's picture

happy that you liked it. the meme is not from me, "Political Economy" is spreading a bit (google it) since a few years. The best way I have to explain the facts: governments, led by the US, did not have to economize like before (gold standards), and so had less reason to importune markets and the private economy (and no reason to be alarmed about private households following the example).

now that parts of the private economy (yes, my pet hate MegaCorps and so also MegaBanks) have put the public economy in a corner, there is a backlash coming. particularly since the "public households" are quite substantial and concern quite a lot of people.

this might even lead to a reconsideration of how limited the liability of a limited liability corporation should be - as seen from the governments' and public point of view

tried to put it as neutral as possible (though I'm used to the bastard "statist" call, here)

Mon, 08/13/2012 - 08:12 | Link to Comment i-dog
i-dog's picture

 

"though I'm used to the bastard "statist" call, here"

 ... with good reason! I just gasp in amazement that you can make the following unfounded assertion with a straight face, given the massive deficits racked up by overspending governments that now account for around 50% of developed economies (compared to just 5% during the time of the "robber barons" and "industrial magnates"):

"now that parts of the private economy ... have put the public economy in a corner"

WTF!!! Your "megacorps" and "megabanks" are simply catering to the deficit spending - on employees, dependents and armaments - of BIG GOVERNMENT!!!!!!!!

If governments weren't borrowing, then the banks wouldn't be lending to them. If governments weren't bailing out bad bets by the banks, then the banks wouldn't be making bad bets!

What exactly do you smoke, Ghordie?

Mon, 08/13/2012 - 11:26 | Link to Comment Sandmann
Sandmann's picture

Yes but what are they spending it on ? There are huge pork barrel projects for private corporations - just think of the US Defence Budget and Lester Crown over decades. Think of Texas Instruments and why GE wanted  RCA and Raytheon wanted Hughes Aircraft. Then look at the huge spending on Subsidies - Corporate Welfare.  When you break down the Spending of Sovereign States you see most flows to certain favoured groups - nowadays it is BANKS, BANKS, BANKS who have had more Subsidy that they have had Profits in the history of the world.

The biggest spending by Governments came in two World Wars neither of which were necessary.

The Robber Barons Era was unstable and protected by Tariffs - try McKinley Tariff 1890 that boosted the profits of US corporates at the expense of Consumers - especially since it covered items the US did NOT even produce. The history of US Capitalism is of Special Interest Groups getting Tariffs and Import Controls to boost pricing power - it still exists in Oranges, Cotton, Peanuts, Steel and a whole slew of products that US producers lobby to protect. How much does Wall Street spend on lobbyists ? How much is Hollywood spending to force ACTA on the world ?

How much of GM does the US Government own ?

Who says Banks are lending to the US Government ? It issues its own Bonds - noone has to buy them. It issues Bonds because people won't pay taxes in the same way Corporations use Debt instead of Equity because it is tax-favoured.

Mon, 08/13/2012 - 22:54 | Link to Comment i-dog
i-dog's picture

I think you have merely re-stated my own position ... that governments are over-spending on employees (excessive regulation and crowding out of the private sector), dependents (welfare payments and as well as corporate subsidies) and armaments.

Mon, 08/13/2012 - 12:32 | Link to Comment Ghordius
Ghordius's picture

I thought my comment was neutral: "governments, led by the US, did not have to economize like before". ergo governments did not economize - according to you since mid sixties, though I like to point out the qualitative difference that Nixon's decision of 1971 made on all graphs, followed by this other change 1994/5 that still puzzles me.

I only write this comment for a different angle: you mention the debtor's responsibility in knowing how much he is supposed to ask. Interestingly, our common culture seems to be currently shifting on blaming the creditor for not "knowing the customer" and giving to the inconsiderate (and who is more inconsiderate than politicians?). ;-)

Tue, 08/14/2012 - 00:00 | Link to Comment i-dog
i-dog's picture

 

"according to you since mid sixties"

Where did I say this?

The US began running up a national debt beginning in 1913 (what a coincidence)!

One-third of the $23bn debt built up in 1917-19 to fight WWI was repaid with small surpluses during 1920-1930, but from 1931-1946 it was deficit spending every year that saw the federal debt rise 15-fold to $240bn by 1946. Though this was reduced by just 11% to $214bn by 1957, it has been backs-to-the-wall debt accumulation by the US ever since - with just 2 years of small surpluses in 1960 and 1969, and another 4-year token reduction of the total debt during 1998-2001.

Other than Clinton, no US administration has reduced the accumulated debt during their term since Warren Harding's 8-year stint in 1922-29!

On your other point, we voluntarists believe in enforcement of valid contracts ... both the social contract of a politician's promise (via electioneering) and the voters' acceptance of that promise (via the ballot box), and the personal contract of a creditor's offer and the debtor's acceptance of that offer. It would seem that "the good old days" of due diligence and subsequent strict enforcement of contracts are long gone under this New World Order of moral relativism and blatant fraud by all parties to every contract.

Tue, 08/14/2012 - 02:48 | Link to Comment Ghordius
Ghordius's picture

+1 must have misunderstood something before, I thought you wrote something according to the increase in spending. agree on moral relativism of the "new age" - it's not the first time that this happens

Sun, 08/12/2012 - 23:18 | Link to Comment luna_man
luna_man's picture

 

 

MY MAIN MAN, you just may think of going into hiding after publishing that "MUG SHOT"!...WHEW!!

Sun, 08/12/2012 - 23:32 | Link to Comment bigkahuna
bigkahuna's picture

LOL! She's coming! NO - no pun - NO!

Sun, 08/12/2012 - 23:42 | Link to Comment Stuart
Stuart's picture

ya, whatever.  wax on, wax off... 

 

Sun, 08/12/2012 - 23:44 | Link to Comment ebworthen
ebworthen's picture

NEIN! 1,000,000,000,000,0002 !!!

Mon, 08/13/2012 - 00:43 | Link to Comment Lore
Lore's picture

 

 

"The future development of the debt crisis will show how much the EU countries will be asked to give up sovereignty.”

WHERE ARE THE CHARGES OF TREASON?

Mon, 08/13/2012 - 01:10 | Link to Comment Savvy
Savvy's picture

Angela Merkel vacations in Italy. At the border ...

 

Border guard: Name please

Angela: Angela Merkel

Boarder guard: what is the purpose of your visit?

Angela: vacationing

Boarder guard: Occupation?

Angela: No, just visiting

Mon, 08/13/2012 - 03:15 | Link to Comment zilverreiger
zilverreiger's picture

I dont get silly postings like this, does ZH have no redactor?

Mon, 08/13/2012 - 06:20 | Link to Comment Joe A
Joe A's picture

That face is the result of two weeks of withdrawl symptoms of not saying Nein!

Welcome back Mrs. Merkel. It has been boring without you.

Mon, 08/13/2012 - 06:53 | Link to Comment negative rates
negative rates's picture

Waaaaaa, wa, wa ,waaaaaaaaaaaa.

Mon, 08/13/2012 - 07:39 | Link to Comment Inthemix96
Inthemix96's picture

Well lets be honest, she is hardly the best looking women in the forth reich is she?

As my old an very wise grand father used to say when he was still with us,

"she has a face like a bulldog, licking piss off a nettle"

Very apt I do believe

Mon, 08/13/2012 - 09:58 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

In the picture she looks a bit like Margareth Thatcher.

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