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Merkel Facing German Revolt Over Greek Bailout

Tyler Durden's picture





 

A few days ago, when summarizing the key weakness of the second European bailout, we suggested that the fatal flaw in the entire package (which is predicated upon the expansion of the EFSF to about €1.5 trillion for full efficacy) are the "82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of German GDP." Specifically, we explained, "by not monetizing European debt on its books, the ECB has effectively left Germany holding the bag to the entire European bailout via the blank check SPV. The cost if things go wrong: a third of the country economic output, and the worst case scenario: a depression the likes of which Germany has not seen since the 1920-30s. Oh, and if France gets downgraded, Germany's pro rata share of funding the EFSF jumps to a mindboggling €1.385 trillion, or 56% of German GDP!" Sure enough, as the Telegraph's Ambrose Evans Pritchard confirms, the backlash has now officially begun.

German Chancellor Angela Merkel is facing a storm of protest at home after yielding to EU calls for radical action to shore up Spain and Italy, raising doubts over her ability to implement the package.

Frank Schäffler, finance chair for the Free Democrats (FDP) in the ruling coalition, said the summit deal threatened "the castration of Germany's parliament" by shifting budget power to Europe.

Jens Weidmann, the Bundesbank's chief, said the accord exposes Germany and other creditor states to "sizable risks" and greatly alters the EU's constitutional landscape.

Yes, that would be the head of the Bundesbank... The German Fed... The bank which, unlike the ECB, is actually putting the interests of the German people up front and center:

"The euro area has taken a big step toward a collectivisation of risks. This weakens the foundations of a monetary union where each is responsible for its own budget.

In the future, it is going to be even harder to uphold incentives for solid fiscal policies," he said. The choice of words undercuts claims by Ms Merkel, who has specifically denied that there is a "collectivisation of risks".

The outburst may complicate a forthcoming ruling by Germany's Constitutional Court on the legality of the bail-outs, though most legal experts expect the judges to tread carefully.

"Weidmann is like Thomas à Beckett," said David Marsh, author of a book on the Bundesbank. "He is no longer a Merkel man. He has gone over to the institution and is now sworn to defend the sanctity of German monetary conservatism."

It has gotten so bad in Germany that Merkel is now relying on the Social Democrats to endorse ger agenda. This is akin to Obama expecting the republicans to demand tax hikes for the uber wealthy.

Jacques Cailloux from RBS said EU leaders are at last "getting the message" but the deal is not enough to halt the crisis at any level. Greece's debt burden will fall by just 10 to 20 percentage points of GDP, still leaving it "unsustainably high" near 140pc next year.

Ms Merkel is relying on support from opposition Social Democrats to push the deal though the Bundestag, but this is politically dangerous and may threaten her grip on power if Germany has to put yet more money behind the summit pledges, as appears likely. Mr Schäffler said there is already talk of a "third rescue package" for Greece.

Jacques Cailloux from RBS said EU leaders are at last "getting the message" but the deal is not enough to halt the crisis at any level. Greece's debt burden will fall by just 10 to 20 percentage points of GDP, still leaving it "unsustainably high" near 140pc next year.

Cailloux looks one step ahead and reaches the same conclusion we derived last week: that the EFSF will need to get a place where more than a third of German GDP is tied to backstopping this particular CDO:

While the bail-out fund (EFSF) will be able to intervene pre-emptively to cap Italian and Spanish bond yields, it lacks the €2 trillion (£1.8 trillion) funding to be credible. "Nice tools but no firing power. A rolling crisis is still likely," Mr Cailloux said.

Translation: while FX markets have already opened in Australia, and the dollar has dropped to 78.1 against the JPY, and under 0.81 against the CHF, on ongoing uncertainty over the debt ceiling , it is once again the EUR whose role will be put into question this week once the market realizes that the "cohesive" European bailout may not be quite as cohesive as previously thought.

 


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Sun, 07/24/2011 - 15:27 | Link to Comment rajat_bhatia
rajat_bhatia's picture

Schadenfreude Bitchez!!!

Sun, 07/24/2011 - 15:47 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Schadenfreude?

Nein!

Merkel knew this was coming, as does Sarkozy.

There have been many trial balloons floated by the EU as to who will bail out whom, when and how...

...ignoring the issue that absent massive printing of trillions in euros by the ECB, which is what must happen if the EU is to avoid sovereign defaults (Greece, Portugal and Ireland, together, are a fraction of the debt in jeopardy represented by Spain, let alone Italy...or....yep - France [I'd bet few know how awful France's own internal economic problems are]).

That's the problem. It's not that anyone necessarily wants to see anyone do badly in the EU, but saving those in trouble for the sake of holding the EU together is akin to placing a surcharge on Arizona, New Mexico and Washington State in order to bail California out.

Good luck to the governors of AZ, NM & WA if they were to do that.

A flood of EUR will either be produced in very short order or there will be defaults.

And Merkel is toast. She can't have her bratwurst (trying to represent Germans) and eat it to (imposing burdens on Germans so as to make PIIGS+UK+?France? bond holders whole - if even in devalued EUR).

Sun, 07/24/2011 - 15:56 | Link to Comment Bill D. Cat
Bill D. Cat's picture

In Canada they're called transfer payments .  Good for the transferee ..... not so good for the transferor . 

Sun, 07/24/2011 - 16:47 | Link to Comment Dempster
Dempster's picture

98 Red baloons so far

Sun, 07/24/2011 - 16:50 | Link to Comment CassandraDoomsday
CassandraDoomsday's picture

Guess why there are so much fuddle muddle in the announcement  and no real figures - the only reason being so that Merkel can pretend that there is no more money needed. Germany is vacationing, so no trouble.

Merkel has not yet understood - otherwise she would have reacted differently (unless this kicking the can was only to gain time for Plan R (etreat). - how much money Germany is expected to provide. She wants to be re-elected in 2013.

I want to see what they think their announcement mean, and I guess the devil is in the detail.......

There will be a next crisis meeting when they find out that they understood their agreement differntly - four week max.

 

 

 

Sun, 07/24/2011 - 17:33 | Link to Comment Popo
Popo's picture

Merkel understands. Zerohedge does not.

There will be no revolt. Germans are sheep, just like Americans. They will complain at home (and the occasional useless blog discussion) and they will allow themselves to be exploited for the sake of the Eurocracy.

The Germans have been serfs once, and they will be serfs again. They will pay for the Greeks to retire early and live in paradise. Meanwhile the German bankers will be saved, and the German people will work extra long hours to save their precious bankers and preserve their bonuses.

There will be no protests and no riots. Such things are not German by nature. Silently eating the bitter pill of bondage is what is culturally proscribed, and what we will see.

Zerohedge is dreaming with this whole "revolution" crap. Not in any Germany I've ever known...

Sun, 07/24/2011 - 17:47 | Link to Comment Kayman
Kayman's picture

Popo

 Not in any Germany I've ever known...

You must have studied German Mythology not German History.

Yes, Germany meekly accepted the Treaty of Versailles as just and reasonable. 

Get a fucking brain.

Sun, 07/24/2011 - 19:36 | Link to Comment Popo
Popo's picture

Please point my tiny brain to the nearest German riot. I would like to attend.

Sun, 07/24/2011 - 20:08 | Link to Comment Bringin It
Bringin It's picture

Tiny indeed.

http://en.wikipedia.org/wiki/Joseph_S%C3%BC%C3%9F_Oppenheimer

 

BTW - great [biggoted] call on the Norway tragedy.  How do you show your face around here after that?

Sun, 07/24/2011 - 20:50 | Link to Comment Popo
Popo's picture

Lol. Again: point me to the nearest German riot. Nice attempt to change the subject.

(why are you posting a link re: Oppenheimer? Do you just throw unrelated links like that out there whenever you can't back up your points?)

We were discussing today's Germans not having the stomach for revolution. That was your follow up??? Good lord...

Here's a link you may also enjoy:
http://en.wikipedia.org/wiki/Non_sequitur_(logic)

Sun, 07/24/2011 - 21:18 | Link to Comment JoeSexPack
JoeSexPack's picture

They don't riot much, too disorganized.

 

They have gone to war in the past, call it organized rioting.

 

If they put their minds to that, you will wish they stopped at rioting.

 

What does the news always say about mass-murderers? He was a quiet neighbor.

 

People have limits.

Sun, 07/24/2011 - 21:25 | Link to Comment Bringin It
Bringin It's picture

Dream on Popo the bigot.  I'm not changing the subject.

"The Germans have been serfs once, and they will be serfs again."

The people of Stugart rebelled and hung the court banker Oppenheimer, when they could no longer bear the oppressive tax burden. 

 

Fri, 10/21/2011 - 12:05 | Link to Comment dugorama
dugorama's picture

here you go, riot in Berlin:

http://youtu.be/ZPl5bFKizv0

Mon, 07/25/2011 - 04:20 | Link to Comment CassandraDoomsday
CassandraDoomsday's picture

Stuttgart 21- peaceful protest

Merkel told them the decision would be made in the next election.

It was. They voted out the centre-right government (there since WW2).

Not that has yet stopped the project, to be fair.

However, my main issue is that there is no main-stream party that is against Merkels selling out Germany (the centre-left want to issue Euro Bonds).  All "alternatives" are at best fishy, or outright outside the German constitution.

As said, everybody is currently on holiday. Let's what happens when they are all back.

 

 

 

 

 

 

 

Mon, 07/25/2011 - 06:37 | Link to Comment feelingspicy
feelingspicy's picture

I would agree. I study economics in Berlin and if you go around asking other students about the bailouts they either have no opinion at all or they are suporting it. There are very few politicians like Frank Schäffler who have a clue about what is going on. I would guess that less then 5% of the parliament is against the bailouts. These whole matters are not playing a very great role in the decision making process when it comes to the vote. You see that when the Social Democrats and Green Party openly supporting the bailout while gaining in polls.

Sun, 07/24/2011 - 15:28 | Link to Comment SwingForce
SwingForce's picture

Guzüntheit!

Sun, 07/24/2011 - 15:32 | Link to Comment rajat_bhatia
rajat_bhatia's picture

I really like white people, So can we have white whores here in the Third World please? I'll pay you in rice and wheat, We grow plenty of that here :D

Sun, 07/24/2011 - 15:41 | Link to Comment Franken_Stein
Franken_Stein's picture

 

Do you use seed by Monsanto ?

Just a thought, LOL !

 

http://healthfreedoms.org/2011/04/28/monsantos-great-seed-robbery-of-india/

 

Sun, 07/24/2011 - 15:47 | Link to Comment traderjoe
traderjoe's picture

I have to say you are super-annoying. Short gold, covered gold, short gold, long silver, blah, blah, blah. Long India, short white people, blah, blah, blah. Yea, if one fiat goes, they all go. 

Mon, 07/25/2011 - 02:40 | Link to Comment ZeroPower
ZeroPower's picture

He jealous

Sun, 07/24/2011 - 16:25 | Link to Comment Sudden Debt
Sudden Debt's picture

Whats the matter? Did all the Thai love you longtime  girls run off with all those fat German tourists? :)

 

Sun, 07/24/2011 - 17:46 | Link to Comment Popo
Popo's picture

No. Their new Prime Minister doubled the minimum wage and promised them free housing, iPads and cheap gasoline. Now they're all middle class... Didn't you hear?

Thaksinomics is back baby.

Sun, 07/24/2011 - 17:30 | Link to Comment sun tzu
sun tzu's picture

Thank you, try again!

Sun, 07/24/2011 - 19:37 | Link to Comment madbomber
madbomber's picture

although racism and hate can be tempting, whether you're the victim of it, or the person  who can freely practice either without consequence,the end result is what?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sun, 07/24/2011 - 19:45 | Link to Comment madbomber
madbomber's picture

 

also is history cyclical?   I have a lot of geniuses I know from Harvard who say so and I'm scared.

 

should I believe in it?   they're smart and the argument sounds right, so it must be.

Sun, 07/24/2011 - 22:21 | Link to Comment hangemhigh
hangemhigh's picture
TO: madbomber (Total Score:1)   Sun, 07/24/2011 - 19:45 | "also is history cyclical?   I have a lot of geniuses I know from Harvard who say so and I'm scared.should I believe in it?   they're smart and the argument sounds right, so it must be."   mb: basic rule of the road: these inbred, incestuous ivy league deals always work for them and never for you unless you, too, are willing to do a deal with the devil.  what's your soul worth, dawg???...........
Sun, 07/24/2011 - 15:35 | Link to Comment HungrySeagull
HungrySeagull's picture

Jawol!

 

Edit Rajat, you edited out your first comment! "FUCK! Does this mean I have to cover my Gold Shorts?"

Sun, 07/24/2011 - 15:35 | Link to Comment Popo
Popo's picture

The entire world is watching as Merkel tosses her people under the bus for the banking cartel. Simply unbelievable. Way to go Angie. You're a two bit slut,

Sun, 07/24/2011 - 17:51 | Link to Comment Kayman
Kayman's picture

Don't besmirch 2-bit German sluts.

Sun, 07/24/2011 - 15:36 | Link to Comment misterc
misterc's picture

Sorry to curb your enthusiasm, but there will be no "revolt over here.
Peasants don't understand what's happening, the intellectuals are 100% brainwashed PRO eurocracry, members of parliament (not only Merkel's CDU, literally ALL members of parliament) are supporting her ways.

Our German answer to Ron Paul, Frank Schäffler, is a political outsider with little to no influence.

This zerohedge-headline = fail. 

Sun, 07/24/2011 - 15:41 | Link to Comment Black Forest
Black Forest's picture

True. I do appreciate ZH tho.

Sun, 07/24/2011 - 17:43 | Link to Comment Popo
Popo's picture

Exactly. +1.

Where is this fantasy of German revolt coming from?

The Germans are going to suck down banker cock just like the Americans. They will welcome their serfdom and believe, all the while that their politicians are averting "disaster".

Mon, 07/25/2011 - 05:39 | Link to Comment Azannoth
Azannoth's picture

Germans have it too good ATM, if you walk the streets of a german city you will see people calmly walking the streets windowshopping and sipping latte at all the Restaurants,

there is no discontent and no Revolutionary attitude far and wide, until an severe Depression or War touches the Germans directly there will be no change and certainly no Revolution

And I bet most Germans quietly accept/support Merkel's give money away policy even if they speak otherwise, they are too clueless to see the ramifications

and there is this thing called willful ignorance that the  Germans are as guilty of as any1

Sun, 07/24/2011 - 15:44 | Link to Comment Franken_Stein
Franken_Stein's picture

 

Hallo Kollege,

 

es kann nicht schaden ein wenig Silber und Gold im Haus zu haben.

Man kann ja mal mit nem Optionsschein short auf den Euro gehen, wenn es denn unbedingt sein muß.

Laß die Deppen einfach quasseln hier,, was juckt es die deutsche Eiche, wenn sich eine Sau an ihr reibt ?

 

Sun, 07/24/2011 - 15:47 | Link to Comment misterc
misterc's picture

Na klar, bin im Goldigen drin (physisch). Keine Abgeltungssteuer & Hartz IV-sicher. Was will man mehr?
Zertifikate etc. überlasse ich anderen. Hab' mich mal mit CFDs verbrannt, nochmal lange ich nicht auf die Herdplatte :-)

Sun, 07/24/2011 - 16:04 | Link to Comment Crisismode
Crisismode's picture

Viel vergnügen!

Sun, 07/24/2011 - 16:28 | Link to Comment Pectoralis
Pectoralis's picture

ach, wird schon. wieviele leute fangen in den letzten wochen urplötzlich diskussionen an, was sie mit ihrem geld machen sollen? in meinem umfeld definitiv mehr als mir lieb sind. zum glück (für mich) rümpfen sie bei edelmetallen noch die nase, dann kann ich noch ne weile billig nachkaufen.

aber: wenn ihr mich fragt, tut sich langsam was beim volk.

Sun, 07/24/2011 - 16:15 | Link to Comment molecool
molecool's picture

Ganz genau :-)

Sun, 07/24/2011 - 16:17 | Link to Comment Ghordius
Ghordius's picture

Oink, oink!

What does the German oak care about the PIIG rubbing it's skin at her bark?

Never heard before, from H. Hesse?

Sun, 07/24/2011 - 16:04 | Link to Comment pesamystik
pesamystik's picture

I don't see why everyone thinks Germans and Europeans are any different than Americans. ZeroHedge likes to run these "OMG, look, the Germans are going to revolt," and other disaster headlines every few hours. Guess what, it never happens. The safest bet you can make is to take whatever disaster scenario ZeroHedge does to get a few page views and bet against it.

Sorry people, the world is getting smaller. Each "crisis" has been used for the status quo not only to be perpetuated, but to be entrenched even further. Everyone keeps talking about how the European debt crisis is not solved. Yeah, that's probably true. But the next crisis that comes up will be used as another excuse to give the Eurocrats even further powers. Does anyone actually think the Germans are going to rise up? That is laughable. The German population is mostly neutered and whimpered into a corner, where the thought of taking any stand against the European "future" means the bad old Germans are once again throwing a wrench in the European utopia just around the corner.

Sun, 07/24/2011 - 16:47 | Link to Comment molecool
molecool's picture

I completely agree with where you are coming from - Germans have been shamed into making a long list of concessions in the past few decades and none of them have favored their own sovereignty or economic prosperity. I do however think that things have been pushed a bit too far at this point and that the German population has simply had it.

Die Eurokrats haben den Bogen überspannt.

Sun, 07/24/2011 - 17:56 | Link to Comment Kayman
Kayman's picture

Churchill said it best

the (German) is either at your feet or at your throat.

Sun, 07/24/2011 - 19:20 | Link to Comment molecool
molecool's picture

Churchill was a victim of his own period - just like us today. You cannot compare the Germans of yesteryear to the Germans today - a completely different people.

Mon, 07/25/2011 - 05:45 | Link to Comment Azannoth
Azannoth's picture

Mainly because of the social change that was forced on Germany past WWII, with all the 'immigrants' flooding in and a (multi)cultural revolution

Remember the Germans where always good people, very accepting and tolerant, just go to Namibia (the only former German African collony) and pretty much the only collony ever that still speaks of it's former collonial rulers positively

The Germans where anything but bloodthirsty racists, even at the time of Hitler

Sun, 07/24/2011 - 16:13 | Link to Comment Missiondweller
Missiondweller's picture

What is the average German's thoughts on the crisis? Do they not see the connection between their own economy and Greece? Does the media report what's going on?

As if it was not bad enough for Germany to lose its loved D-Mark, aren't they pissed they have to support all of Europe? Or do they still think they "owe it" to Europe to support the EU regardless of how bad the outcome?

 

A puzzled German-American

Sun, 07/24/2011 - 16:21 | Link to Comment Ghordius
Ghordius's picture

German politics is very " consensus-seeking", this makes their policies seem slow. Merkel's deal must first be debated for a while.

Wait for the boomerang, so around November (no shit).

Sun, 07/24/2011 - 16:31 | Link to Comment molecool
molecool's picture

Agreed...

Sun, 07/24/2011 - 16:28 | Link to Comment molecool
molecool's picture

From one German-American to another: Remember the expression: The Mühlen des Gesetzes mahlen langsam aber gründlich. (rougly translated: the wheels of government turn slowly but thoroughly). 

Germans are not one to make hasty decisions (at least these days) and they also do not like change, just like the Chinese. But once they arrive at a point at which an inconvenient decision that offers long term prosperity and averts their own demise seems their best option then they will not hesitate and do what it takes, EMU or Greece be damned. I can't say that about the United States unfortunately - decisions taken over here mostly seem to benefit Wall Street and China.

Sun, 07/24/2011 - 18:26 | Link to Comment Landrew
Landrew's picture

I think you are forgetting what that PIGS debt purchased! German goods and services is what that debt bought!To say Germans are without fault in allowing their banks along with French,British and American banks issue debt to people without the ability to pay is crap! This is a banking problem. I would imagine at the core is the IMF along with the World Bank at the center of this crap as well.

Sun, 07/24/2011 - 19:24 | Link to Comment molecool
molecool's picture

I didn't say the Germans are without fault - but if you want to go there then let's refer to 'German banks' not the 'German people'. I for one make a clear differentiation over here in the U.S. as well as I don't blame my blue collar neighbor for the exploits of Goldman Sachs.

Sun, 07/24/2011 - 19:59 | Link to Comment malek
malek's picture

Exactly the same as in the US:
The average German has no real clue what's going on, but believes that all problems will eventually be "fixed" by the government. Which means, and in accordance with Murphy's Law, that now reality will soon teach them that sometimes gov't cannot fix it.

Mon, 07/25/2011 - 06:40 | Link to Comment feelingspicy
feelingspicy's picture

agreed.

Sun, 07/24/2011 - 15:36 | Link to Comment Re-Discovery
Re-Discovery's picture

I also said at the time on this site the Merkel would be hanged in effigy.

Sounds like it may be in actuality.

A guy named Fred Merkle blew the 1908 World Series for the NY Giants on a play forever afterward to be known as 'Merkle's Boner.'

This Merkel just outdid him.

 

Sun, 07/24/2011 - 15:37 | Link to Comment monopoly
monopoly's picture

I did not think the German people would stand for this. A hard working productive populace in a sound, solid country that has been to hell and back are going to fund hairdresser retirement at 55, living in Athens. I don't think so.

You can fool and screw us clueless Americans, the sheeples who watch moronic TV, day in and day out, but Germans. Nope, not gonna happen.

Sun, 07/24/2011 - 15:39 | Link to Comment HungrySeagull
HungrySeagull's picture

What?

No one here is screwing you. Forget the Sheep.

Your Merkel is responsible for marrying Greece.

Fire her ass so that new boss does good work ja?

Sun, 07/24/2011 - 16:33 | Link to Comment Pectoralis
Pectoralis's picture

WTF? we germans "learned" a whole lot of your, how do you say, "way of life". americans are looking for their new "idol", germans seek their "superstar". where's the difference?

Sun, 07/24/2011 - 19:12 | Link to Comment Lednbrass
Lednbrass's picture

60 years of occupation turned the Germans into something even worse then Americans- sheep without the distrust of government that runs through US history.  I have a fair amount of family there and their outlook is incomprehensible to me.

The US followed the same playbook there they did in the American south- distort history, shove guilt down the throat of kids, denationalize the population, and import vast numbers of outside ethnic elements.

Germans wont revolt until its OK'd by the government and broadcast on "Deutschland sucht den Superstar". Given the fact they they are even more placid then American sheep, I dont see much happening- at least here there are millions of people loading up on weaponry and ammo, not gonna happen in Germany.

Sun, 07/24/2011 - 19:32 | Link to Comment molecool
molecool's picture

"sheep without the distrust of government that runs through US history."

That's not the Germany I grew up in. I for one recall many clashes with the German police during political demonstrations in the late 80s, some of which I personally participated in. Germans are in general very critical of government and you see a lot of young people participate actively in the political process.

Sun, 07/24/2011 - 21:24 | Link to Comment Lednbrass
Lednbrass's picture

Well, you certainly have a broader base of experience then I do and I'll defer to that (I never lived there), but nowadays I only hear what seems to be a blind trust in "experts" and the EU political class from those I do know. Yeah, I know you cant base opinions only on personal experience, could be my relatives are all just idiots.

Sun, 07/24/2011 - 15:38 | Link to Comment Atomizer
Atomizer's picture

But, but only yesterday we had such strong promises of containment and failout. LOL

 http://www.imf.org/external/pubs/ft/survey/so/2011/CAR072211A.htm

Sun, 07/24/2011 - 15:38 | Link to Comment Eireann go Brach
Eireann go Brach's picture

Merkel who is really a half man half goat, will of course end up doing the right thing for Germany and make sure the bankers are well taken care of!

Sun, 07/24/2011 - 15:39 | Link to Comment Silverhog
Silverhog's picture

Promising to give away something you do not own has it's draw backs. German voters will be even less enthusiastic as their own economy contracts toward 2012.

Sun, 07/24/2011 - 15:46 | Link to Comment Sudden Debt
Sudden Debt's picture

IF this go wrong and IF that goes wrong.... Germany doomed...

 

IT WILL GO WRONG! THEY ARE GREEKS!! I CAN'T IMAGINE ANYTHING TO GO RIGHT!!

 

Sun, 07/24/2011 - 16:26 | Link to Comment Ghordius
Ghordius's picture

Beware of Greeks bearing gifts?

Sun, 07/24/2011 - 21:15 | Link to Comment StychoKiller
StychoKiller's picture

More like "Beware of Grifters bailing out Greeks!"

Sun, 07/24/2011 - 15:50 | Link to Comment apberusdisvet
apberusdisvet's picture

Extend and pretend is just the method by which the banking cartel will ultimately through onerous legislation, have sovereign nations agree to selling off assets at 10% of value to make balance sheets whole.  The only problem is that world wide debt, which many estimate to be over a quadrillion, can never be paid.  No different that the $500 trillion of US debt.

Sun, 07/24/2011 - 15:52 | Link to Comment john39
john39's picture

would have thought that the german people got screwed enough by the NWO after world war I...  lets see if they wake up to the fact that the NWO wants them to foot the bill for holding their global order together for another few months... 

Sun, 07/24/2011 - 15:53 | Link to Comment RobotTrader
RobotTrader's picture

Man, are these people stupid or what?

What's the point in bucking City Hall?  These protesters will get quashed one way or another, life will resume as before, and the Alpha-Dog PigMen and Plutocrats will once again be in full control.

Absolutely nothing is going to change as long as the Fiat Ponzi Pyramid of Fractional Reserve Banking remains in intact.

Infinite Fiat Forever, "Wash, Rinse, Repeat" cycles will continue indefinitely.

The only chance of anything changing is if a young, super athletic, and charasmatic figure emerges to take over the Ron Paul agenda.  Otherwise, old, frail guys like Ron Paul will simply get smashed like an annoying bug because the proles do not want to be lectured to by their school principal.

Sun, 07/24/2011 - 15:56 | Link to Comment km4
km4's picture


Hitler rants about the EU crisis

http://www.youtube.com/watch?v=h6Pg9u-88N0

Sun, 07/24/2011 - 15:57 | Link to Comment Flore
Flore's picture

the euro is backed by gold... you guys still don't get it...

Sun, 07/24/2011 - 16:10 | Link to Comment Lord Welligton
Lord Welligton's picture

It is in its arse.

Sun, 07/24/2011 - 16:28 | Link to Comment vamoose1
vamoose1's picture

Make that the Zeuro,    Churchill had it right,    they are either at your feet or at your throat.

Sun, 07/24/2011 - 16:40 | Link to Comment snowball777
snowball777's picture

Bwaahahahahahaaaaaa!

Sun, 07/24/2011 - 16:04 | Link to Comment franzpick
franzpick's picture

I hope a bank run, a currency crisis, a credit collapse, a trade collapse or a commerce interruption is the event that signals the end of the fiat debt-credit bailout charade, rather than the anarchy, store shelf emptying and rioting that more usually signify the end of corrupt government and financial regimes.

Everyone here this Sunday will be bbq'ing, drinking and relaxing outside, but I'll be slipping inside at 315 pdt to watch the metals, the other openings, and the real action that 99% of the world won't know about until they see the banner headline, disaster news some day.

Glad to have TD and ZH, who I believe are running at least 5 minutes ahead of u.s. intelligence.

Sun, 07/24/2011 - 16:04 | Link to Comment Crisismode
Crisismode's picture

dupe

Sun, 07/24/2011 - 16:06 | Link to Comment dcb
dcb's picture

bull shit, once the euro pack was announced the fiirst thing I stated was that we shall see how it comes down to the german people. Not you Me!!!!!!. Don't fucking high jack my intellectual property.  I was as far as I can tell on any thread on this site thee first to mentin voter backlash potential of the deal. This is bull crap, there may have been others before me, but I know ZH was well after me. Your article was well after my thread post!!!!! it was clear that that was the first thing that should come to mind. Search my threads!!!

Sun, 07/24/2011 - 16:28 | Link to Comment spdrdr
spdrdr's picture

Awww, you poorly done-by poster.

I'm  certain that you will be able to enforce your IP in your opinions in  any juisdiction of your choice.  Why don't you consult a lawyer straight away - the damages claim could be astronomical.

Sun, 07/24/2011 - 16:42 | Link to Comment snowball777
snowball777's picture

What do you want, a commemorative plaque?

Sun, 07/24/2011 - 16:59 | Link to Comment gwar5
gwar5's picture

So don't stop Nostradamus, tell us what's next.....

Sun, 07/24/2011 - 17:01 | Link to Comment gwar5
gwar5's picture

So don't stop Nostradamus, tell us what's next.....

Sun, 07/24/2011 - 16:11 | Link to Comment f16hoser
f16hoser's picture

Merkel, you sold-out your countrymen....

Sun, 07/24/2011 - 16:13 | Link to Comment molecool
molecool's picture

Not sure what's with the constant German bashing - seems a big swath of the U.S. population still views Germany through a perspective formed by watching too many episodes of Hogan's Heroes.

Since I speak German fluenty (grew up in Europe) I regularly catch up on the FAZ and Spiegel to get a feel for the general sentiment over there. I can tell you that the comment boards are rife with angry sentiment paired with constructive questioning of the value of the European Monetary Union. The German population is as happy about this as (informed) U.S. citizens are about Bernanke's money printing scheme. And no - no talk about a Blitzkrieg or about taking over the Acropolis. Germans want to live in peace, harmony, and relative prosperity - like the average Joe here in the U.S. They don't want this crisis and are mostly regretting the EU clusterfuck they now find themselves in. There are calls to bring back the Deutsche Mark and to leave the European Union. Will most likley not happen unless there's a huge crisis that clearly shows that EMU membership has little remaining value. Nothing is going to happen overnight - Germans have become extremely pacifistic and cautions when it comes to sovereign decisions. The lessons of the early 20th century are still fresh in their memory. Although every nation wants to dominate economically there is very little to no interest in 'recapturing old territory' or taking over Europe. If you believe that then you have not been to Germany in the past few decades or have no idea what you are talking about. Germans were pretty happy with where they were and they had their hands more than full with integrating the DDR (i.e. East Germany). That cost them a fortune and it was a difficult transition - thus there is no appetite for gaining any further territory or to 'run Europe' in any form or fashion.

Germans are people like everyone else - they don't want to find themselves constantly paying for the rest of Europe and in particular bailing out fat cat banksters. Politically Merkel is comitting suicide right now and she probably knows it - maybe she's 'taking one for the EU team' - who knows.

I moved away in 1991 before all this EU bullshit started - from what I have observed I don't think that Germany is better off for it. They had a very strong economy before it and they still do for the sole reason that Germans are categorically opposed to shipping all their manufactiring jobs to China. Which is a lesson we here in the U.S. obviously had to learn the hard way. Instead of constantly criticizing Germany and pointing toward the 3rd Reich it may pay to observe the economic powerhouse Germany morphed itself into within less than half a century. Without having huge energy resources, without a huge military supporting its economic aspirations, only with hard work, sacrifice, and focus.

The decision that German citizens will make in the coming weeks, months, and years will greatly affect the rest of the world, including the United States. Although Merkel and heir political ilk are caught up in their own political game I feel that at least German 'leaders' have to some extent the benefit of their own population in mind. I truly cannot say that about the decisions taken by both political parties here in the U.S. - it seems at every single turn there is a right as well as a politically easy short term decision - and without fail it is the easy way that is constantly chosen. 

As I said earlier - Germans are people like everyone else. BUT they do consider the long term prosperity and future of their own country and their own children when making important monetary decisions. The lessons learned in the first half of the 20th century still haunt them and they are not about to blow up their own economy to either save Greece or the EMU. I expect there to be significant pushback in the short term - OR - a thorough housecleaning in the next election season.

Thanks for putting up with my little rant ;-)

Sun, 07/24/2011 - 16:31 | Link to Comment Ghordius
Ghordius's picture

Gooooood rant, compliments.
A bit low on Nazis, Sturmtuppen and Panzer to captivate some, but good.

Sun, 07/24/2011 - 16:35 | Link to Comment molecool
molecool's picture

Alright, per popular request:

http://www.youtube.com/watch?v=h6Pg9u-88N0

It is tragically funny I must admit...

Sun, 07/24/2011 - 16:50 | Link to Comment Ghordius
Ghordius's picture

Danke, now I feel better!
The new ECB uniforms rock!

Sun, 07/24/2011 - 18:08 | Link to Comment Kayman
Kayman's picture

Let's not forget the Marshall Plan. Britain whithered while Germany and Japan were rebuilt.

Sun, 07/24/2011 - 18:21 | Link to Comment molecool
molecool's picture

That's a very generic statement - how do you substantiate that the Marshall plan was solely or in part responsible for Britain's lack of economic progress? I distinctly remember Britain's highly productive post war auto industry which was systematically dismantled in the past few decades - just like here in the U.S. - that's just one example.

Mon, 07/25/2011 - 16:28 | Link to Comment Kayman
Kayman's picture

After WWII Britain was heavily indebted to the U.S. for Lend/Lease.   Germany and Japan were extended generous funding.

I don't know what is wrong with that statement.

 

 

Sun, 07/24/2011 - 18:51 | Link to Comment GCT
GCT's picture

Good comment mole.  I am American and lived in Augsburg for five years.  Once you got to know the German people they wanted the same life we do here in America.  I have several friends I still communnitcate with.  Most of them are frustrated but like the USA most have their heads in the sand.  Having lived all over thwe world I find most people want the same thing.  I was put off when I lived in Saudi Arabia but even alot of their populus once you got past their religion were alot like other people.  They were just always trying to convert me. 

When people's basic needs are being met and they have their TV most do not care.  Some of you Germen people ought to post what you all pay at the pump for a gallon or 4 liters of petrol.  Most here will be thanking their lucky stars.

Sun, 07/24/2011 - 19:34 | Link to Comment molecool
molecool's picture

Augsburg = hübsche Mädchen :-)

Sun, 07/24/2011 - 19:17 | Link to Comment Lednbrass
Lednbrass's picture

Hogans Heroes and a never ending stream of movies and video games with Nazi bad guys sum up the total knowledge of 95% of the US population when it comes to Germany.

Mon, 07/25/2011 - 02:35 | Link to Comment newworldorder
newworldorder's picture

RE molecool

Your comments are spot on. Thanks for posting a well reasoned and lucid explanation of what may be going on in Germany. Like you I believe that there are a lot less sheeple there than in our own coutry.

For  this bull in europe to be stopped, it will take the Germans, Nordic countries and the Brits to do it. If not, the bankers and City of London have won.

Sun, 07/24/2011 - 16:19 | Link to Comment israhole
israhole's picture

Merkel is an Israel-first rat.

Sun, 07/24/2011 - 16:19 | Link to Comment israhole
israhole's picture

Merkel is an Israel-first rat.

Sun, 07/24/2011 - 16:19 | Link to Comment AldousHuxley
AldousHuxley's picture

Pirates and Emperors (from SchoolHouse Rock makers of How a Bill becomes a law)

http://www.youtube.com/watch?v=mEO3RWnHb4E&feature=related

Sun, 07/24/2011 - 16:22 | Link to Comment AldousHuxley
AldousHuxley's picture
School House Rocks - Tyrannosaurus Debt (from SchoolHouse Rock makers of How a Bill becomes a law)

 

http://www.youtube.com/watch?v=_mfMG66LtVU&feature=related

Sun, 07/24/2011 - 16:41 | Link to Comment johny2
johny2's picture

another AEP euro doom article....yawn...I think he must have a short position on euro/gbp somewhere at 0.75

Sun, 07/24/2011 - 16:43 | Link to Comment AldousHuxley
AldousHuxley's picture
School House Rock - Great American Melting Pot   (from SchoolHouse Rock makers of How a Bill becomes a law)

 

http://www.youtube.com/watch?v=QpggZ9hDxC4&feature=related

 

They don't have a song and dance for Great European Union Melting Pot. They each have their own king and customs

Sun, 07/24/2011 - 16:53 | Link to Comment gwar5
gwar5's picture

German Taxpayers: "We was robbed!"

Trichet: "Why should Germans be upset they were just put on the hook for the coming EU collapse? Each according to their ability...."

PIIGS: "Work harder, nazi bitchez, we got needs...."

 

Sun, 07/24/2011 - 17:02 | Link to Comment AldousHuxley
AldousHuxley's picture

American TAxpayers: "Were we robbed? I don't know. I can't do math. Wait, shutup....Dancing with the stars is on"

Bernanke: "Why should Americans be upset they were just put on the hook for the coming American middle class collapse? Each according to their ability....or inheritance in offshore account..."

 

Banksters: "Work harder, private non-union bitchez, we got issues...."

Sun, 07/24/2011 - 17:01 | Link to Comment Don Diego
Don Diego's picture

the financial interests that have placed Merkel as Chancellor will find another job for her as director of a large German company making 200K euros per year. She is all set, she does not care losing the elections. The next chancellor is then selected from the ones that oppose the loudest to the bailout et voila..... until he betrays, again, the voters. Same M.O. as usual, we never learn.

Sun, 07/24/2011 - 17:01 | Link to Comment Don Diego
Don Diego's picture

the financial interests that have placed Merkel as Chancellor will find another job for her as director of a large German company making 200K euros per year. She is all set, she does not care losing the elections. The next chancellor is then selected from the ones that oppose the loudest to the bailout et voila..... until he betrays, again, the voters. Same M.O. as usual, we never learn.

Sun, 07/24/2011 - 17:05 | Link to Comment AldousHuxley
AldousHuxley's picture

you sure it is not a position at a large Greek shipping company after the bailout? She probably got a retirement pad on the Mediterranean already

 

Germany is going to elect Hilter #2 soon. Europe better watch out.

Sun, 07/24/2011 - 18:30 | Link to Comment molecool
molecool's picture

You sir are a fucking idiot. 

Sun, 07/24/2011 - 17:19 | Link to Comment papaswamp
papaswamp's picture

China becomes the wrlds super power via debt ownership. In the telegraph article:

"The EFSF's latest newsletter shows that the fund is deeply reliant on China, Japan and the Mid-East to buy its bonds. Central banks and sovereign wealth funds bought 54pc of the last issue in June. This offers stability, but leaves EMU prey to geopolitics."

Of course Asia is going to be really angry when the bonds come due and they can't be repaid.

Sun, 07/24/2011 - 17:50 | Link to Comment magpie
magpie's picture

"they can't be repaid."

May i join you in your non-fiat printing universe...

Sun, 07/24/2011 - 18:01 | Link to Comment Use of Weapons
Use of Weapons's picture

The £88m loan to the national transitional council (NTC) was secured against frozen Libyan government funds. The money comes as the rebels struggle to pay for essentials, a fact that was exacerbated on Sunday when government missiles struck the oil tanks that fuel the besieged city of Misrata's power generators.

"We have decided to provide the NTC with urgently needed funding for civil and humanitarian measures," said the German foreign minister, Guido Westerwelle, in a statement. "People are suffering more and more from this, particularly in eastern Libya."

Five months into the war, cash is running low and the rebels have tried and failed to get access to billions of dollars held in Libyan government accounts.

 

http://www.guardian.co.uk/world/2011/jul/24/germany-100m-loan-libyan-reb... 

 

Someone remind me... since when was funding rebels using the assets of the legitimate government still in power as collateral not a fucking huge violation of the UN charter? 

They're not even trying anymore - Bush at least had to do a little fakery to get into Iraq.

Sun, 07/24/2011 - 18:19 | Link to Comment Buck Johnson
Buck Johnson's picture

All are trying to find out who will be the one to pull the plug on this tub of dirty water called Western banking.

Sun, 07/24/2011 - 19:44 | Link to Comment gall batter
gall batter's picture

Merkel has just announced that she'd appreciate, even beg for, a shoulder massage from George Bush right now. 

Sun, 07/24/2011 - 20:04 | Link to Comment anyways
anyways's picture

There is and will not be a 'German Revolt Over Greek Bailout'. The german propaganda state owned channels and most printmedia serve the establishment. There will be other 'news' and the servile germans will work even harder... until they go bankrupt overnight.

As happened 1922 and 1948.

Sun, 07/24/2011 - 22:21 | Link to Comment SamThomas
SamThomas's picture

Sooooooooooooo...will Merkel sacrifice her own political prospects for the Euro Project?  Or will her own party rebel, drag her down, and torpedo the whole thing?

Everybody is acting as if this is a done deal, but I just don't see it that way.  What about the suit making its way through the German constitutional court?  Supposedly the Lisbon Treaty explicity forbids the establishment of a "transfer union" requiring any member of the union to be responsible for the debts of any other, which of course is exactly what the Brussels bureaucrats, and the French, want.  The Germans insisted on this provision since they knew that if push came to shove, every seedy second or third tier country would come with their hand outstretched to Uncle Deutche when the going got tough--only I don't think anybody saw this complete nightmare in their most overwrought dreams. 

Constitutional challenges and a furious and rebellious electorate.  What's not to like?  The opera ain't over, not by a long shot.  The fat lady is just warming up. 

Mon, 07/25/2011 - 00:10 | Link to Comment droper
droper's picture

Looks like communism is sweeping through europe again.. 

Mon, 07/25/2011 - 10:56 | Link to Comment fearsomepirate
fearsomepirate's picture

The auto workers at the Georgetown, KY Toyota plant might object to your description of the US auto industry as having been "dismantled."  It's simply moved away from states that punish productive industry and to states where producing goods is looked upon as a good thing.

Tue, 07/26/2011 - 11:41 | Link to Comment MichaelRivero
MichaelRivero's picture

The critical design flaw of all these private central banks issuing the public currency at interest is that debt is intended to always exceed money supply. Everything the banks or governments do increases the debt faster than the money supply. So the economy is essentially a boat with eleven holes in the bottom and only ten corks, and all this bailout nonsense really amounts to yanking a cork from one hole and pounding it into another while screaming "I am solving the problem" in full view of the media cameras.


But the water continues to rise, because in the end, that is the result the system is designed to produce.

Wed, 07/27/2011 - 08:45 | Link to Comment CassandraDoomsday
CassandraDoomsday's picture

Careful here......

The majority of Germans does not really get it and is scared - the plaster their roofs with solar power panels and say " I cannot change what I do not understand". There is a great sense of helplessness.....

Some are positive EURO philes, scared that leaving the Euro would break up the EU, and consider any economic truth as "propaganda", possibly from the right-wing, thus not to be taken seriously.

Some rant  - see Welt is worst, Spiegel or Handelsblatt - but do nothing.

Some more are quietly preparing for the inevitable.

And on the fringes there are groups that  not only say no to the EURO plus EU, but to a lot of other things..... (google parteiprogramm "partei der Vernunft") you will not believe it... 

So if anybody comes around to offer "a solution" out of the mess - a "Heilsbringer" many will follow....

@ Mole

Your analysis was a good observation, however, ..... Germans do not want to rule the rest of Europe, the majority just wants to be part of a "equal partnership" IMHO, and prosper.

Nobody can vouch for the day when the majority realises (may be later rather than sooner), that Merkel is selling out Germany.

Or have you seen it? According to ZH, Reuters has quoted Schaueble: There is no "carte blanche" for buying periphery debt.

Merkel and Schaeuble know that they are politically finished if they ask the German taxpayer for more money......

Wed, 07/27/2011 - 08:41 | Link to Comment CassandraDoomsday
CassandraDoomsday's picture

double, can be deleted...

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