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Merkel Crushes Hopes For German-Funded Pan European Socialism Once Again

Tyler Durden's picture


UPDATE: Nowotny just confirmed ECB's lack of confidence in the EU Summit and stomped on Greece's hopes for negotiation.


As we noted over the weekend, there really is only one voice on which to act in Europe (and plenty of noise that should be ignored) and that is Germany. This morning we already heard from Herr Schaeuble and Herr Siebert, but Frau Merkel has just come over the top with her hope-crushing reality that (via Bloomberg):


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Mon, 06/25/2012 - 09:11 | 2557416 SeverinSlade
SeverinSlade's picture

It's okay.  We still have Hopium to look forward to.  Crack addicts unite!

Mon, 06/25/2012 - 09:15 | 2557431 Harlequin001
Harlequin001's picture

There is no 'joint' in 'union'...

Mon, 06/25/2012 - 10:00 | 2557594 gmrpeabody
gmrpeabody's picture

There is no 'i' in..., oh, wait.

Mon, 06/25/2012 - 11:05 | 2557918 potlatch
potlatch's picture

legalize weed; the Germans may get so high they just go, "oh shit, numbers, ah fuck it dude, we cool."

Mon, 06/25/2012 - 09:19 | 2557447 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I truly hope the German electorate will respond by removing Merkel from office. As its exactly this kind of selfish thinking that lead to the rise of a certain Mr Hitler and WW2. Not every nation can be as productive as it's neighbor. But with the correct incentives, with the chance of borrowing, southern europe can become a competitive export powerhouse too. Germany needs to recognize this and recognize that no good ever comes from hoarding all ones cash and resources for oneself. They need to share the wealth, That way europeans can look forward to a spiraling success story, rather than an economic death spiral...

Mon, 06/25/2012 - 09:21 | 2557453 Ignorance is bliss
Ignorance is bliss's picture

I'll give the Southern Europeans exchange for a BJ. I am sure Germany doesn't want to give something for nothing either.

Mon, 06/25/2012 - 09:50 | 2557535 Nussi34
Nussi34's picture

Mee too. Only virgins qualify!

Mon, 06/25/2012 - 22:03 | 2560283 StychoKiller
StychoKiller's picture

Experience counts in BJs! :>D

Mon, 06/25/2012 - 09:26 | 2557461 Harlequin001
Harlequin001's picture

You're just 'not cracking' it dude. MDB is just so much better...

and he's thick as fuck...

Mon, 06/25/2012 - 09:43 | 2557512 smb12321
smb12321's picture

He's being sarcastic.  Nobody could be that damn dumb and still manage to walk.

Mon, 06/25/2012 - 09:51 | 2557546 Freddie
Freddie's picture

He could be a union "worker" - specialfically and unionized govt worker.   The joke is none of these broke countries wants to cut their incredibly bloated govt workers payroll or benefits.  Govt workers are the sacred cow.  

Same with the USA unionized govt leeches starting with Wisc, IL, Calliepornia, NY, Detroit and the list goes on and on.

Sat, 06/30/2012 - 00:55 | 2575448 MeelionDollerBogus
MeelionDollerBogus's picture

unionized SNORGTEE inspector.

Mon, 06/25/2012 - 09:29 | 2557470 Cranios
Cranios's picture

Wrong, worng, and wrong. Hitler rose because external countries imposed fines and reparations upon them. In the present case, Germany is simply saying they aren't going to bail out countries that have spent themselves into oblivion with vote-buying socialist programs. Good for Germany and Merkel. You don't create wealth by spreading it around, you create wealth by investing it in the most productive use available, and that isn't buying daddy time off with pay, free healthcare and 6 week vacations for Frenchmen, Italians, and Greeks.


Try again.

Mon, 06/25/2012 - 09:51 | 2557547 smb12321
smb12321's picture

Actually the Hitler part is not true since the Locarno Treaty (1925) normalized relations and essentially gave the green light to Germany for plundering eastern Europe.  Hitler obsessed with Germany's defeat but it was Liebenstraum that obsessed Hitler.

Of course you are correct about wealth.  Redistribution has been going on since markets began and always for the same reason (it "helps" the little guy).   In the end you run out of money (as the West has done) and the cries for spreading the wealth grow even louder.  Exactly like the French facing economic disaster so they shorten the retirement age.

Mon, 06/25/2012 - 16:17 | 2559336 noses
noses's picture

Liebenstraum. Yeah. Right.

Moron. Use a dictionary.

Mon, 06/25/2012 - 11:26 | 2558050 Dismal Scientist
Dismal Scientist's picture

The Germans also have 6 weeks holidays. They are competitive because they tooka cut to real wages over the last 10 years while the rest of Europe didn't. Now its the rest of Europe's turn...

Mon, 06/25/2012 - 09:34 | 2557480 TWSceptic
TWSceptic's picture

You really couldn't be more wrong. Germany didn't get where they are by asking and receiving money from others. Your socialist view on the world has never solved anything, you are trying to solve problems with solutions which are responsible for the problems.

Mon, 06/25/2012 - 09:35 | 2557486 bagehot99
bagehot99's picture

What an absolute load of bollocks. Upon WHAT do you state that Southern Europe can be an economic powerhouse? They work 35 hour weeks, they take 8 weeks vacation and they retire at 57 on insanely generous pensions. I'm sorry to bring you into the real world but your assertion is based upon uninformed fairy stories of the kind that created the Euro. 

Mon, 06/25/2012 - 10:05 | 2557615 gmrpeabody
gmrpeabody's picture

You simply must pay attention for SARC if you want to survive around here, Grasshopper.

Mon, 06/25/2012 - 09:37 | 2557494 MillionDollarBonus_
MillionDollarBonus_'s picture

Totally agree Maxi. Merkel is JUST like Margaret Thatcher - stingy, mean and brutal. Countries like Spain and Portugal are literally being conquered by austerity. This is the beginning of World War III, but this time it is a FINANCIAL war, not a physical war. Join the twitter revolution and fight back now: 




Mon, 06/25/2012 - 09:51 | 2557543 pods
pods's picture

Sock, meet puppet.

Mon, 06/25/2012 - 09:58 | 2557583 Harlequin001
Harlequin001's picture

Dick, meet head...

Mon, 06/25/2012 - 09:46 | 2557518 njrod
njrod's picture

you forgot "/sarc off"

Mon, 06/25/2012 - 09:52 | 2557549 GCT
GCT's picture

MDB is Zerohedge's form of free entertainment njrod.  Almost everytime MDB posts a thread we all get a good laugh. Every internet forum must have its own clueless joker and MDB is ours!  Read his thread get a good laugh!

Mon, 06/25/2012 - 09:50 | 2557542 bigwavedave
bigwavedave's picture


Mon, 06/25/2012 - 10:29 | 2557729 Hayabusa
Hayabusa's picture

I have a friend who thinks we should all pay more taxes to help others... I told him he could volunteer to pay more taxes and give a much larger percentage of his income to the IRS if he felt that way, but added like him I was free to choose.  He became furious and insisted I pay as much as he, it was my "duty."  I pointed out he was attempting to take freedom from me by telling me how to allocate money I earned... he looked confused.  I wasn't confused, his cry for the haves to pay for the have nots free lunch is always the same... it falls under the heading of entitlement programs and those receiving the free lunch I've found are even more stingy with the entitlement money they receive than those who earned it in the first place - ironic isn't it?

Mon, 06/25/2012 - 11:08 | 2557935 potlatch
potlatch's picture

I work 2 jobs and barely make my bills.  I apologize for being troublesome.

Mon, 06/25/2012 - 10:33 | 2557758 BadKiTTy
BadKiTTy's picture


Is that you MDB?


Mon, 06/25/2012 - 09:11 | 2557417 mrktwtch2
mrktwtch2's picture

merkel.."momma didnt raise no fool"

Mon, 06/25/2012 - 09:15 | 2557432 SWRichmond
SWRichmond's picture


Well, of course they did, they're politicians aren't they?

Mon, 06/25/2012 - 09:39 | 2557458 bdc63
bdc63's picture


Mon, 06/25/2012 - 09:51 | 2557545 Nussi34
Nussi34's picture

She likes fisting gay ClubMed politicians

Mon, 06/25/2012 - 09:56 | 2557569 Uncle Remus
Uncle Remus's picture

For A Few D-Mark More...

Mon, 06/25/2012 - 11:09 | 2557945 potlatch
potlatch's picture

Freddie Mercury crossed a lot of line swhen he started favoring the Berlin night life.  Merkel was a ruthless dom in one club that he favored.  I blame her for Freddie's decline.

Mon, 06/25/2012 - 09:14 | 2557419 LawsofPhysics
LawsofPhysics's picture

Leave the Euro Germany and let's focus on the U.S.S.A., that is when the real fun begins.  Moreover, if everyone in the world becomes a "producer" like Germany, who will be the "customers", a colony on Mars?  FAIL.

Mon, 06/25/2012 - 09:12 | 2557422 achmachat
achmachat's picture

this gives a whole 'nother meaning to "soup nazi"


Mon, 06/25/2012 - 09:12 | 2557423 monopoly
monopoly's picture

A Grandmother that says NO to the children. Very rare.

Mon, 06/25/2012 - 09:15 | 2557430 kralizec
kralizec's picture

But refreshing.

Mon, 06/25/2012 - 09:21 | 2557452 augustusgloop
augustusgloop's picture

Grandmother says no to the Snopes' begging children. If only our politicians hadn't rolled over when Goldman et. al came begging in 2008. 

Mon, 06/25/2012 - 09:12 | 2557424 mrkolice
mrkolice's picture

please don't use the word socialism in this context. true, it's socialism for bankers, but we are seriously dying here.

Mon, 06/25/2012 - 09:15 | 2557429 LawsofPhysics
LawsofPhysics's picture

Correct, the only welfare here is welfare for the banks and other broken and failed business models.  FYI, that is called fascism and not socialism.

Mon, 06/25/2012 - 11:11 | 2557952 potlatch
potlatch's picture

but it's so much easier to blame lazy poor people.  can't we just blame lazy government workers and call it a day?

Mon, 06/25/2012 - 09:17 | 2557439 Cranios
Cranios's picture

Government-paid healthcare, 4-6 weeks of vacation per year, and daddy time off for babies, and you think Europeans haven't had socialism up to now? What planet are you on?

Mon, 06/25/2012 - 09:19 | 2557448 LawsofPhysics
LawsofPhysics's picture

This farce can't end fast enough if you ask me.  Burn it all the fuck down and let's find out precisely what the real value of everyone's labor really is.  Fucking bring it.

Mon, 06/25/2012 - 09:48 | 2557527 mrkolice
mrkolice's picture

yes. whatever it brings.

Mon, 06/25/2012 - 09:41 | 2557508 Cast Iron Skillet
Cast Iron Skillet's picture

that's the kind of socialism we have in Germany. Seems to work OK as long as it's paid for up front and does not increase debt.

Mon, 06/25/2012 - 09:50 | 2557538 Blammo
Blammo's picture

Germany has plenty of debt.... No clean governments anywhere that I'm aware of

Mon, 06/25/2012 - 11:13 | 2557970 N. B. Forrest
N. B. Forrest's picture

Singapore and Canada are close.

Mon, 06/25/2012 - 11:12 | 2557959 potlatch
potlatch's picture

sounds civilized to me.  you do realize, the wealthy never work, right?  Or do you think everyone works except people at departments of motor vehicles, who are the cause of our ills?

Mon, 06/25/2012 - 09:39 | 2557502 knightowl77
knightowl77's picture

I saw a report over the weekend, that the EU high court had ruled; that if you got sick on your vacation, you were entitled to another vacation...To me that sums the mess that is Europe

Mon, 06/25/2012 - 09:56 | 2557573 smb12321
smb12321's picture

 I thought that was a joke at first.   It's like, "Hey, the house is on fire.  Don't forget to turn on the gas."   The perfectly illustrates that Europe is not serious in the competition department.  That is not a crime.  The PIGS should not try to compete with the powers that wannabe.

Mon, 06/25/2012 - 09:14 | 2557427 Cranios
Cranios's picture

Don't worry, Obama will have "more flexibility" after the next election is stolen.

Mon, 06/25/2012 - 09:16 | 2557433 Christoph830
Christoph830's picture

Yawn........All part of the script to force a market correction and open the door for coordinated central bank intervention.  Germany knows it'll have to cave in and accept Eurobonds eventually.  Pure soap opera at this point.

Mon, 06/25/2012 - 11:53 | 2558158 bdc63
bdc63's picture

Germany accepting Eurobonds? ... not the way I see it.

I suspect Germany has already figure out how to save their banks without bailing out any more of the lazy PIIGS ... Merkel's tone changed about 3 weeks ago -- there are no signs of compromise or urgency in her words.  They have this all figured out now, and are just waiting for the opportunity to make it official.  When Germany exits the Euro, the real 'fun' starts.

Mon, 06/25/2012 - 09:16 | 2557436 sudzee
sudzee's picture

Germany will leave the euro first and buy up the rest of the euro-area for phennings on the mark.

Mon, 06/25/2012 - 09:24 | 2557460 LawsofPhysics
LawsofPhysics's picture

Then what?  Why would I purchase a bunch of failed businesses that have no hope of turning around?  That is essentially what these sovereigns are.

Mon, 06/25/2012 - 09:57 | 2557580 smb12321
smb12321's picture

Worse, in Europe they are the underlying collateral for all those wonderful loans. 

Mon, 06/25/2012 - 12:46 | 2558449 Chaos_Theory
Chaos_Theory's picture

Just purchase the female part of the business, ages 18-40, 45-63 kilos in weight.  And maybe the historical landmarks for kicks. 

Mon, 06/25/2012 - 09:18 | 2557442 spanish inquisition
spanish inquisition's picture

Joint deposit insurance? So this little diddy is to allow banks to not only off load derivitives and borrow against their national taxpayers like the US, but also to get an extra bump by being able to backdoor leverage against German taxpayers?

Mon, 06/25/2012 - 09:17 | 2557443 BRIC-layer
BRIC-layer's picture

Not all is lost- she is offering (discounted) cornea transplants!

Mon, 06/25/2012 - 09:18 | 2557444 Alejandrito
Alejandrito's picture

Having reached the inevitable point where we are, with some structural differences between countries sharing the currency and that has led to the current unsustainable situation on the horizon just will see two options.

  • Or a total integration, with Eurobonds that means  transfer of fiscal sovereignty would include transfer of political sovereignty from PIGS to Germany...
  • Or back off at the monetary union, with the exit of euro of countries who don't want yield the sovereign monetary
Political events to date, including economic events that are not such, have been artificially created to reach the decision point with all the cards on the table. Continue in the EU represents for the PIGS cede sovereignty. This battle is  happening at present, while the  ECB and IMF prepare the new vehicle to capitalize monetary losses of countries and banking systems.
Mon, 06/25/2012 - 09:20 | 2557449 Doomer
Doomer's picture

Liar, liar, pants on fire!

Mon, 06/25/2012 - 09:56 | 2557571 ThirdWorldDude
ThirdWorldDude's picture

White spades hangin' on the telephone wire
Gamblers reevaluate along the dotted line
You'll never recognize yourself on heartattack and vine...


Tom Waits FTW

Mon, 06/25/2012 - 09:29 | 2557471 TrumpXVI
TrumpXVI's picture

Exackitickly how many time does Frau Merkel have to explain to everyone the German solution for dealing with "useless eaters"?

Reichskommissariat Europa.

Mon, 06/25/2012 - 09:38 | 2557497 TrainWreck1
TrainWreck1's picture

Soylent grün

Mon, 06/25/2012 - 09:40 | 2557505 CatoRenasci
CatoRenasci's picture

Deutschland Erwache!

No way Germany should bail out the PIIGS, especially with France cycling up for more socialism. mmmmmm! OPM!

Mon, 06/25/2012 - 09:48 | 2557526 njrod
njrod's picture

lasst uns deutschland!

Mon, 06/25/2012 - 09:56 | 2557567 GCT
GCT's picture

It does not matter what country you pick we are all broke!  The debt will never be paid off.  Patriotism has nothing to do with our finances in any of the countries we comment about.

Mon, 06/25/2012 - 09:56 | 2557572 Freewheelin Franklin
Freewheelin Franklin's picture

She's just mean. I hate mean people. She won't let me have purple unicorns.

Mon, 06/25/2012 - 10:10 | 2557637 slewie the pi-rat
slewie the pi-rat's picture

when money = debt, what the hell do people expect to happen?

when ZIRP = policy, what difference does it make?

frauBonecrusher!  her nylons remain unblowtorched

she nonchalantly struts about the ring, oblivious of the bad guy running up behind her to hit her with a NAT0 folding chair...

goldi just loves this exciting action!

Mon, 06/25/2012 - 10:14 | 2557654 nowhereman
nowhereman's picture

Lest we all forget, the soveriegns are in trouble because of the great bank bailout of 08. 

To blame social programs for this is extremely misleading, since Europeans are amongst the highest taxed people in the world.  Taxed to pay for the benefits they receive.

Simplistic arguements such as "it's socialisms fault" is banker speak for you're not giving us enough money to justify our bonuses.

Mon, 06/25/2012 - 10:21 | 2557684 Freewheelin Franklin
Freewheelin Franklin's picture

Bailing out failed banks is socialism. It sure-as-shit ain't Capitalism.

But then again, central banking is a throwback to 18th century Mercantilism.

So, there's your mixed economy: socialism, capitalism and mercantilism. You may as well be trying to mix oil and water.

Mon, 06/25/2012 - 11:14 | 2557976 potlatch
potlatch's picture

shh  the anti-union thing is supposed to be "the people themselves," not astro-turf agit-prop instilled by corporate organs among the lumpen prole...

Mon, 06/25/2012 - 10:22 | 2557688 Stormy Weather
Stormy Weather's picture

Well socialism is based here not on merit like they want you to believe (and has turned angry mobs into thinking I deserve this and that, oh boy the laugh an African would have if he saw you protesting for retirement at 60 or more unemployment money) but on debt.

Arguably, we would have enough money for all of this, or almost, without creating debt (which is nothing but asking for an advance on future work, thus gimping our own children) if we didn't make war, were spending wisely etc. but the world being what it is... the landing will be brutal when there's no more free lunch and we have to come back to a "natural selection" state. This is not the same as eugenism btw, only a reality principle. No more insuline (or money to pay) for a diabetic means his death, faire/unfair is not the question, we're talking reality here.

People better start realizing now it ain't sustenable and stop thinking about fair/unfair, it's the fault of the left, no, the right, fuck you I disagree, others pointless arguments, and start to be civilized again, which means solidarity (completely gone or almost in occident) or this will end in a blood bath.

Mon, 06/25/2012 - 10:24 | 2557701 hazek
hazek's picture

Well this sure sounds good, but will they actually follow through? I doubt it.

Mon, 06/25/2012 - 10:54 | 2557867 Vince Clortho
Vince Clortho's picture

Großmutter Merkel seems to be waffling a bit.

Distancing herself from Herr Schauble?

Mon, 06/25/2012 - 10:57 | 2557880 Overflow-admin
Overflow-admin's picture

NOWOTNY says ECB snake is eating its tail :D

Mon, 06/25/2012 - 10:59 | 2557887 walküre
walküre's picture

Latest is that Merkel's government is seeking absolute majority (min. 2/3 of parliament) to pass all matters related to bailout mechanisms including ESM, EFSF. Then the matter cannot be disputed by the legislative. It failed last time she tried. Time is of the essence now and I'm wondering why Frau Merkel is raising the stakes with this short cut move when it hasn't worked in the past.

Is it desperation or is it a form of stalling tactic?

The German government seems to be in favor of the bailouts but there's little or no popular support. By now the story has reached every Stammtisch in Germany and consensus is that Germans are opposed to paying for anyone else's retirement or welfare.

Sentiment has shifted. 2 years ago only few Germans understood what was happening. Few were interested to find out. The story didn't leave the front pages over 2 years and by now, the popular opinion is that Germany is affording everyone else's European's socialism. This is a hot button topic and it can bring about a major power shift from moderate politicians to radical populists. Any party that would put on their banner to end the Euro, end Brussels, end the bailouts would get an instant recognition and perhaps be part of forming governments in Germany. Guaranteed. The people are just waiting for someone to step onto the scene and declare war on the EU.

Bottom line is that Germany is being asked to piss it all away. How did we get here? Let's look at Wall Street. Let's look at the US economy which was running on a massive expansion of cheap unsecured credit. Shitty debt that was bundled and sold across the globe with the stamp of approval from US rating agencies. That shit exploded in everyone's faces in 2008. So, it all goes back to the US and her failed policies during the Bush administration. That's where the blame belongs fair and square and I'm not even including the illegitimate wars against Iraq and Afghanistan which were supposedly the results of attacks that happened on 9/11 under more than dubious circumstances.

It's all shit, all the time from Washington and Wall Street. Their actions are hurting people all across the world. With or without shots being fired. Same as it ever was. The more things change, the more they stay the same. And now the endgame is approaching and we're all looking forward to a one world government, a new world order and America taking the top seat in that constellation?

Fuck that shit.

Mon, 06/25/2012 - 11:06 | 2557919 slackrabbit
slackrabbit's picture

See I knew that G20 caption was almost right....just waiting for the dmark announement. She may not have screwed them all yet, but they're all bent over...

Mon, 06/25/2012 - 11:22 | 2558029 michael_engineer
michael_engineer's picture

Germany knows very well that peak oil effects on the economy may be forcing austerity no matter what games are played in finance and debt structuring.

In English :

Maybe that is part of the reason Germany will be hard to budge on austerity. Growth requires cheap energy and cheap resource inputs.

From that report :

3.1.4 Intra-societal Risks of Peak Oil

Since modern national economies strongly rely on inexpensive fossil raw materials, in particular oil, peak oil would pose considerable challenges to most countries and societies in the event of an incomplete or insufficient post-fossil transformation process. These challenges could entail restrictions in the mobility systems, interruptions in economic structures as well as an erosion of confidence in state institutions.

At first glance, it seems obvious that a phase of slowly declining oil production quantities would lead to an equally slowly declining economic output.

Mon, 06/25/2012 - 11:37 | 2558102 covert
covert's picture

this is a polotical cover for royalism again.


Mon, 06/25/2012 - 11:34 | 2558093 Monedas
Monedas's picture

Hillary as POTUS ?  Think of a Merkel .... less attractive and even more hysterical !         Monedas     1929       Comedy Jihad Is There A Hillary In-Waiting In The Basement

Mon, 06/25/2012 - 11:43 | 2558133 Vince Clortho
Vince Clortho's picture

That a fanatical H Clinton is still in the Cabinet of the administration is a solid indicator of just how sick things are in the USSA.

Mon, 06/25/2012 - 22:23 | 2560360 StychoKiller
StychoKiller's picture

Nonsense!  Using the SWIFT system as a tool of statecraft can only reap dividends!  Get with the program...

Mon, 06/25/2012 - 12:34 | 2558403 giggler123
giggler123's picture


Mon, 06/25/2012 - 22:25 | 2560365 StychoKiller
StychoKiller's picture

Why should yer teetotalin' Aunty have to pay for your alcoholic Brother-in-law's booze?

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