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Merkel Strikes Back Against Hollande

Tyler Durden's picture


Some thought that German chancellor Angela Merkel would quietly take the abuse heaped on her, and her program of "austerity" (or deleveraging as we call it, but that just does not have quite the negative connotations of a word that has become symbolic for all that is wrong with a massively overlevered world) by the new French president and Germany's increasingly more insolvent "partners", without much of a fuss.

That changed over the weekend, following a Spiegel article titled "Merkel prepares to strike back against Hollande." Now, as Bloomberg reports, the German retaliation is picking up speed, following a thinly veiled threat from the former German finance minister, who basically said that French bonds are unlikely to continue seeing the flight to safety bid they have been enjoying recently, once the rating agencies cut France even more from its one vaunted AAA rating, where Moody's and Fitch still have the country (following the S&P downgrade to AA+ in January), but likely not for long now that Germany has spoken.

From Bloomberg:

Former German Finance Minister Peer Steinbrueck said French President Francois Hollande’s proposals may have an impact on the country’s credit rating, Bild newspaper reported, citing an interview to be published tomorrow.


Investors and rating companies will naturally take a close look at the course France sets,” Bild quoted Steinbrueck as saying in response to a question about French proposals to lower the retirement age and tax top earners at a higher rate. “That can have consequences for France’s credit rating.”

No need for blustery rhetoric or pompous oratory: two sentences and the French ego balloon just got popped.

What is more important than whether or not France gets an official downgrade warning, is that Germany refuses to pursue some form of Nash equilibrium, so critical for Europe attaining a conciliatory middle ground, and instead continues to defect at every opportunity.

And now, with Hollande presumably silenced, it is Mario Monti's turn.


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Mon, 05/28/2012 - 18:13 | 2470225 Shibumi2
Shibumi2's picture

Was your best friend Made-off?

Mon, 05/28/2012 - 18:26 | 2470257 Handyman
Handyman's picture

Hmmm...I don't like these loafers. I think I'll bring my jack boots to the next neck stomping.

Mon, 05/28/2012 - 18:53 | 2470276 Fortunate Fool
Fortunate Fool's picture

bla bla bla... Hollande's election was supposed to be a disaster for France, which was supposed to be downgraded immidiately. etc.


The truth is, and to the big shock of most here, Jospin, the last socialist prime minister, was the only one, with Villepin to a certain extent, to decrease the french public debt as a % of GDP. Those that are waiting for armaggeddon in France will have to wait a bit longer. Don't hold you breath.


By the way, one fact that is ignored. The largest trading partner of Germany is France, and the largest trading partner of France is also Germany. These two countries will be forced to find an agreement. Everything else is political theatre.

Mon, 05/28/2012 - 19:32 | 2470348 walküre
walküre's picture

You're forgetting one crucial aspect.

France is NO LONGER in control over her own currency and CANNOT print, print, print and devalue as much as they used to.

By 1999 the New Franc which had to be introduced in the Sixties when the Old Franc was so rotten and worthless, had devalued over 80% !!! already.

10+ years into the Euro model and the French can't pull their currency like chewing gum anylonger.

No Eurobonds! No Euro! Everyone go back to cooking their own books and do whatever the hell they've done before to making it "work" for them.

Mon, 05/28/2012 - 20:45 | 2470457 Element
Element's picture

He also forgets that counterparties will do what they must.

And I don't remember anyone saying Hollande would be instant Armageddon for France.

What I remember, is people pointing out that the political atmosphere would become even more dysfunctional, as the European people's voting responses to the unacceptable status-quo, swung to extremes, greatly complicating the situation, and frustrating all attempts at any unified front, policy or viable stable agreements.

And this article indeed reflects that process.

The reality is France was and is already fucked (as Reggie Middleton makes very clear) it's just got to play out.  What ratings agencies do is what they always do, come late to the table with a load of pompous bullshit that everyone paying attention already knew.

This is why today the French upper-class Neo-Aristocrats are preoccupying themselves with more overt discussion of an allied (globalist) intervention in Libya, and of the desperate need for direct intervention  and another NATO-We-Fly-And-Bomb-You-Zone, over Syria so that France and the rest of the EU pro-zionism thugs can in kill 40k to 50k of the Syrian people instead, and create yet another radicalised insurgent-controlled failed-state, for the region to cope with.

Got to keep those chattering-class from discussing the parlous state of France's finances and the smelly decomposing zombie banks that are about to become involuntary state 'assets', for the taxpayers to pay, and to pay again, to finally bury them.


Mon, 05/28/2012 - 20:54 | 2470492 slewie the pi-rat
slewie the pi-rat's picture

the photo looks like it was taken at a fashion show to benefit the special0lympics

Mon, 05/28/2012 - 23:08 | 2470699 franzpick
franzpick's picture

The reality of the euro collapse won't come until germany formulates and announces its own version of the Herman Cain plan:  "Nein-Nein-Nein".

Tue, 05/29/2012 - 03:54 | 2470922 jez
jez's picture

Merkel is still showcasing that swingin' East German fashion industry, I see. This is what the well-dressed Stasi informant is wearing in Karl-Marx-Stadt this summer. Mismatched colors in shapeless manmade fiber is in.

She actually looks deformed in this photo. It must be the ever-increasing psychic weight of all the lies she tells every day, bearing down on her shoulders. That's why her posture is so awful.

Tue, 05/29/2012 - 04:20 | 2470933 supermaxedout
supermaxedout's picture

Sarko is gone, Yeah, Yeah, Yeah

Hollande is there, Yeah,Yeah, Yeah,Yeah

Mon, 05/28/2012 - 21:15 | 2470520 Fortunate Fool
Fortunate Fool's picture

The Euro didn't happen overnight. It was introduced officially on January 1, 1999, but it took years in the making (see european monetary system). Josping was prime minister from 1997 to 2002, so the euro didn't prevent him to reduce the debt...


Your point is moot.


France is in no worse shape than most western countries, and certainly in better shape than the US or UK. Whether you like it or not is not the problem. Just look at the facts.

Mon, 05/28/2012 - 22:33 | 2470657 Sandmann
Sandmann's picture

certainly in better shape than the US or UK

It simply has not done anything to reduce State Deficits at DCN, SNCF, Health Care, Pensions and runs State Corporations like EDF et al. France simply fails to address reducing the State so underwrites massive overspending like the Us and Uk

Mon, 05/28/2012 - 23:31 | 2470730 Fortunate Fool
Fortunate Fool's picture

US and UK share a similar weakness that France doesn't: an over-bloated financial sector, hence my comment.

Tue, 05/29/2012 - 07:29 | 2471024 Element
Element's picture

I read your comment again.  The first time I read it, it just came across as though you were overly discounting the situation with France.

I personally think we may need a third-'recession' (great plunge) before the system actually topples due to massive unresolvable (and statistically 'hidden') unemployment and inflation in daily-needs, because clearly the financiers and politicians intend to break every rule (and then some) to try and delay the collapse, they know will come.

It's now a game of economic and social survival and manageable stability, for as long as possible.

What we'll get during recession (plunge) #2 will seem really bad, and it will be, but TPTB will paper-over it and apply lots of duct-tape and copious propaganda lies, etc.  For one thing the USD is going to look like a comparitive beauty-queen in the leper colony, as the Euro is gutted and China stumbles along the bottom.  And in many places where this still can work, it may work for another cycle.

Where it can't work though, due to the preceding intensity of real economy collapse and demand dissolution, it won't work and plunge #2 will finish them off.  But we'll do our best to disdain their frailty, and kick them into the gutter ... until we all join them there.  It's possible France will avoid the gutter in this cycle.  I'm sure they'll all try to stop it crashing too early.

But if the system freezes ... all bets are off.

Mon, 05/28/2012 - 21:53 | 2470571 Arnold Ziffel
Arnold Ziffel's picture
Tue, 05/29/2012 - 01:37 | 2470858 Blammo
Blammo's picture

Hey Arnold !!!You were always my favorite chauvanist.

Mon, 05/28/2012 - 20:03 | 2470407 RoadKill
RoadKill's picture

You really are a "Fool". Everyone knows the rating agencies are 3 years behind every downgrade.

And as for France and Germany being big trading partners lets look at US vs China, Canada or Japan. If one of them were on the verge how much $ would Congress authorize for them and under what terms?

Tue, 05/29/2012 - 02:46 | 2470899 Knobbius
Knobbius's picture

That was also true in the summer of 1914....


Mon, 05/28/2012 - 19:25 | 2470341 Silver Bug
Silver Bug's picture

The German people need to get out of that mess called the EURO asap!

Mon, 05/28/2012 - 23:42 | 2470745 Treason Season
Treason Season's picture

German Author Says Berlin Is Hostage to Holocaust in Euro Crisis

Sarrazin writes that supporters of euro bonds in Germany "are driven by that very German reflex, that we can only finally atone for the Holocaust and World War II when we have put all our interests and money into European hands,

Tue, 05/29/2012 - 10:04 | 2471404 falak pema
falak pema's picture

Sarrazin is hardly a good reference to quote for an experienced journalist; why don'y you quote Marine Le Pen's take on what's the real threat to Europe/France : Islamisation! Not financial turmoil and economic decline.

In this day and age, quoting Sarrazin is like waving a red flag by making his opinion appear as something respectable. Which it certainly is not, its far right and xenophobic like Marine; not that he doesn't have a right to express it. But responsible journalists should not echo it like it was "run of the mill", unless you happen to share it as your own personal take. 

And I do not myself feel that's Europe's problems with its currrent demographic trend require it to nitpick who enters its haloed frontiers based on pigment of skin or cultural origin and religious background. I would humbly propose that cultural adaptation potential and education, something easier with younger people,  would be better criteria for welcoming potential new citizens. Not race and creed as this indicates a prejudiced, biased mindset for host country, a sign of ancient continental disease based on its past history. We don't need to go back there, but to move forward, on values of enlightenment. 

The young of this continent are more broad minded; something years of economic downturn and hardship could wipe out if those in power do not take the necessary measures to not encourage this regression socio-political trend, like we saw in the Balkans in the 90s, when Yugo collapsed so tragically.

Mon, 05/28/2012 - 18:17 | 2470235 WhiteNight123129
WhiteNight123129's picture

Let us come back to the French franc vite-fait, default, print a bit and come back to the Golden coins with the Coq gaulois, let us rewind back into time an erase this abomination of first world war, which has led to all sorts of abuses....


Mon, 05/28/2012 - 18:17 | 2470236 Bill D. Cat
Bill D. Cat's picture

Merkel > "See that stain on the floor ...... your balls are gonna look like that when I'm done with them . "

Mon, 05/28/2012 - 19:16 | 2470241 Royal Fleming
Royal Fleming's picture

thanx ZH for not letting spam on your site...edited out the rant..

Mon, 05/28/2012 - 18:26 | 2470247 falak pema
falak pema's picture

this is not a rumble in the jungle nor a thrilla in Manila; this is shadow boxing from the Charlie Chaplin tramp movie on boxing; probably the most hilarious boxing match ever filmed. Wait for this to play out; in the end ECB and Super Mario will probably cast his vote. And we know which way that will go; as he reports to the Squid. 

Frau Merkel will put up a good faked fight and Monsieur Hollande will spring around like a ballerina and jump up like Charlie every time he catches it on the chin. He will throw his wild punches and steam roll the referee in the process; but the match will end like it should, poor Charly Hollande carried out on a stretcher  and winner Merkel cheated out of her purse; by the matchmaker Super Mario and the man behind the curtain, the good ole Squid!  More can kicking in 2013 once the 2012 drama of Euro zone is over. Until in all folds, slowly and then all at once. 

Charlie Chaplin Boxing (HQ) - YouTube

Mon, 05/28/2012 - 18:25 | 2470254 insanelysane
insanelysane's picture

Germany's plan B has to be to leave the euro first and leave all of the crazy countries in the euro.

Mon, 05/28/2012 - 18:29 | 2470260 gdgenius
gdgenius's picture

Be first, be smarter or cheat...

Mon, 05/28/2012 - 23:07 | 2470697 Surly Bear
Surly Bear's picture


Mon, 05/28/2012 - 18:57 | 2470272 CClarity
CClarity's picture

Agree Germany should just leave (part of why bid sooooooo high in bund cuz think of what you'd rather hold debt in after a German exit from the EZ - definitely deutchbonds, not euro denominated).  Would actually have a better outcome for periphery AND Germany - still painful for both, but probably less terrible than Greece and eventually Italy, Spain and Portugal, perhaps Ireland, etc etc etc slowly being hung out to dry by being forced to leave or choosing to leave so can have devalued currency a-go-go.  Germany leaving would put things in motion to hit skids then start improving much more quickly.

Not a good plan to be long anything denominated in Euro meanwhile.

An aside, given his name, will Hollande try to align with Holland?  Nederland/France nuxys?

Mon, 05/28/2012 - 19:19 | 2470323 noses
noses's picture

It really reminds me of my fifth birthday party. Everybody wanted to play musical chairs (which I already regarded as seriously boring) so I got out first and had a lots of cake without anyone disturbing me while the rest battled for a piece of chocolate or something similar.


It's easy. Define goals. Define strategy. Execute.

Mon, 05/28/2012 - 19:35 | 2470355 walküre
walküre's picture

If you seriously remember what happened on YOUR fifth birthday party, you are DEFINITELY too YOUNG to have an opinion in the matter.

Either that or you have discovered a way to keep memories in your databank alive forever.

Mon, 05/28/2012 - 19:56 | 2470392 barliman
barliman's picture


Or ... he just makes them up


Mon, 05/28/2012 - 21:47 | 2470561 post turtle saver
post turtle saver's picture

Jedem das Seine...

Mon, 05/28/2012 - 18:26 | 2470256 CreativeDestructor
CreativeDestructor's picture

Can we just admit that Germany ain't just fuckin'stupid. Can we just admit that best and most rational play will be to let the whole fuckin'periphery crumble along with few other countries and only after that to step in with a rescue mission?

That's a mistake IMF and ECB have made, those institutions (especially IMF) step in once the debt has fallen apart, and they pick up the body parts from the floor. But this time they were duped by the Goldman"".

Germans can see through that crap and are gonna hold out till the very end when they can buy shitt very cheap (I fuckin' hope so), and that is the only way it can work. I fuck Goldman Morgan(s).

Mon, 05/28/2012 - 18:39 | 2470265 Bobbyrib
Bobbyrib's picture

It would be like China forcing the US to default. It would crush their economy.

Mon, 05/28/2012 - 18:50 | 2470274 Mark123
Mark123's picture

So just increase vendor financing that will NEVER be paid back?  Is that your solution?


The world has to accept that what seemed like wonderful prosperity was just a big party on the credit card.  Germany will of course suffer when the consumers credit line is shut down, but doing that now is a hell of a lot easier than extending more credit and then pulling the plug.


Save the core.

Mon, 05/28/2012 - 20:08 | 2470413 RoadKill
RoadKill's picture

Didnt that work for Cisco and Intel in the 90s?

Mon, 05/28/2012 - 18:54 | 2470279 bank guy in Brussels
bank guy in Brussels's picture

GIIPS countries blow up ... means German banks and insurance companies collapse, loaded up with GIIPS debt ... German workers pension funds blow up, also loaded up with GIIPS debt ... leading to German revolution as German workers are told half their pension money has 'vaporised'.

As various ZH pieces of pointed out, a good chunk of Germany's wealth is from selling to other euro-zone countries, buying German company stuff with money lent to them by Germany. - Greece buying German submarines one of the gross examples. - Vendor financing, like China with the US.

No painless way out of this mess -

But the hard part psychologically for Germans, is the fact that the typical 'best' solution to this debacle is to inflate currency, which they might even have to do for a new Deutschmark (because of German bank etc. collapses) ...

And the Germans were promised all along the euro would be as stable as the Deutschmark ... now they are slowly being forced to understand their lifelong habit of keeping savings in German currency, is one more thing that may have gone 'poof'.

Germany leaving the euro may be the best solution, if they can be bold enough ... at least that way they could eventually work back toward their traditional currency stability.

Mon, 05/28/2012 - 19:18 | 2470317 Marco
Marco's picture

In theory if the production now used to feed the trade surplus is instead redirected to internal consumption then with government intervention in the market the present standard of living could actually be improved ... which would of course entail bailing out the banks and pension fund and raising taxes to pay for it.

In practice, chaos ...

Mon, 05/28/2012 - 19:17 | 2470318 Bobbyrib
Bobbyrib's picture

Thank you for stating my point, which I should have stated in my first post.


To quote Full Metal Jacket: "'s a huge shit sandwich and we're all going to have to take a bite."

Mon, 05/28/2012 - 19:37 | 2470347 Alpacanio
Alpacanio's picture

Great Post Bank Guy, agree 100%. Germany should leave the EURO. This is the best solution for crap sandwich that everyone must eat.

The Euro has failed. Every country should go back to their own currancy.

Mon, 05/28/2012 - 19:47 | 2470377 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

Don't mean to stalk, but just in case you didn't see it, I left a question for you in earlier thread. 


Mon, 05/28/2012 - 19:48 | 2470379 Joe The Plumber
Joe The Plumber's picture


Tue, 05/29/2012 - 03:40 | 2470919 trebuchet
trebuchet's picture

@Bankguy in brussels: good points.

Re article in general:

1. Hollande, since being elected, has NOT mentioned fiscal pact renegotation, just " all growth options are to be discussed". 

2. ALL at EU meeting and G8 agreed that "growth" is needed, fiscal stimulus now becomes a matter of negotiation and timing.

3. Monetary stimulus is still on the cards. BOJ just upped its 100bn tickler to 350bn.  

However, a REAL discussion about exit does appear to be taking place, and EU finds it doesnt have the institutions to deal with it. ECB and central banks have to come up with a way to Refi/unwind Target 2. The imbalance are so horrendous that both sides will lose. 

Biggest Problem in Germany leaving the Euro is that their exports to Euroland and financial assets denominated in Euros get halved in value. Recession in Germany, Target 2 losses.   Germany is the biggest loser. 

in the meantime, Grexit, Iberian bailout II and/or Italian rehash all point to Eurolan meltdown, vs the alternative which is Ctrl +P.





Mon, 05/28/2012 - 19:05 | 2470292 sessinpo
sessinpo's picture

With that line of thinking, things would revolve forever. But we know it doesn't. Eventually, things come to ahead and these little squabbles turn into something much more.

Mon, 05/28/2012 - 19:14 | 2470307 Bobbyrib
Bobbyrib's picture

Creative Destructor was saying how much better off Germany would be if they seceded from the EU before every other nation. I was just stating the reality that when the EU eventually falls apart, every country in the EU is fucked. Germany sank all that money into the PIIGS and their export economy (which is how Germany's economy was doing so well) would get crushed. It's going to be ugly anyway you look at it. It's a no win situation that they created in Europe.

Tue, 05/29/2012 - 03:50 | 2470921 trebuchet
trebuchet's picture

most people dont take their thinking that far. 

"split from euro"  "get rid of weak countries" "let strong countries exit"  -> Germany ends up on the hook with foreign assets DEVALUED and its EXPORTS OVERPRICED.  

Only hope for euroland is across the board devlauation.

China, smart enough to realise this, is devaluing NOW. 

The US with currency appreciating, will face an econoic slowdown as a consequence. 



Mon, 05/28/2012 - 19:24 | 2470340 noses
noses's picture

You wish. But it won't. China has been living on a relatively low level not that long ago. They could do it for another decade or two, even if that means shooting some ten thousand protesters and invading a few neighbors. On the other hand I can already smell the smoking guns of another civil war if the US economy breaks down for good. The Kingdom of California, ruled by some aging actor as a puppet for the super rich, some Republic of Texas, a few brain-dead theocracies in the mid west... You get that picture.

Mon, 05/28/2012 - 20:21 | 2470436 RoadKill
RoadKill's picture

That is idiotic. The US has the BEST demographics / culture to survive this. Everyone is an immigrant here and we have all been mixed tograther for hundreds of years. We all solidly identify ourselves as Americans first and States second. The possible exceptions being a minority of people in Texas and a small group of racist asshats (many of which seem to be on ZH).

Meanwhile China has how many separatist movements going on right now? If you know anything about China's history you know its made up of several distinct cultural groups that have taken turns subjecting each other to horrible things. Manchurians, Mandarins, Huns, Turks, Ugurs, Tibetians, Nepalease, Hong Kong (Very European compared to the rest of China) etc... The peasentry is already VERY upset with the cirrupt communist bosses for taking their land without payment and siphoning billions offshore. One day they will wake up and find out $1 trillion of those reserves are missing and GDP growth is <0% for the 1st time in 30 years and their will be hell to pay.

Mon, 05/28/2012 - 21:26 | 2470531 Real Estate Geek
Real Estate Geek's picture

We all solidly identify ourselves as Americans first and States second.

¿En serio?  ¿Dónde vive usted, hombre?

Mon, 05/28/2012 - 23:04 | 2470694 Lednbrass
Lednbrass's picture

Everybody is an immigrant here? WTF are you smoking you idiot? Most of the population was born here dumbass. Read a dictionary and find out what the damn word means.

Im guessing you are a northeastern or left coast urban idiot with mininal comprehension of the culture outside your bubble. A sizable portion of the South would be more than happy to tell your sort to go fuck yourselves, and if there is an economic breakdown it becomes a strong likelihood. Most of the Midwest and non-coastal West dont like you either. You seriously underestimate how much you are despised in other parts of the country and the fact the most of the South that arent carpetbagging scum have their own distinct identity. The only thing this nation has in common is language, an ever more questionable currency and the pursuit of "stuff", once the last grinds to a halt and things get ugly there is really no reason left to tolerate you idiots.

Lessons were learned from 1865 and the weaknesses addressed, its a considerably different situation this time around when the wheels fall off. Expect secession to come back big when that happens, and there wont be a damn thing you can do about it- the best thing about ending the draft is that the flyover types ARE the fighting arm of the military at this point.

Tue, 05/29/2012 - 00:12 | 2470792 CharlieSDT
CharlieSDT's picture

Nah, people are going to be too busy watching Dancing with the Stars and sitting on their fat asses to secede.

Tue, 05/29/2012 - 02:32 | 2470889 Plumplechook
Plumplechook's picture


Mon, 05/28/2012 - 18:27 | 2470258 Rusticus
Rusticus's picture

At some point diplomacy will fail: the common currency worked in Germany's favor during a credit expansion, now not so much.

D-Marks uber alles !

Mon, 05/28/2012 - 18:33 | 2470263 Poor Grogman
Poor Grogman's picture

The Germans are doing the only workable thing telling these parasites to take a hike.

What part of "I wont lend  more money till I see some of your skin in the game"

Dont these Euro-peon banana republics understand.

Mon, 05/28/2012 - 19:03 | 2470289 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Germany has received just as much bailout cash from the ECB as Greece has, maybe more:

I'm coming to the conclusion that all these divisions, Dem/Repub, nation/states etc are just a sham, just smoke screen for the Uber Global Wealth Siphon: from the people to the global wealth maintenance cabal, which hides behind structures like "banking" and "government".

That's a pretty friggin' cynical view, I know.


Mon, 05/28/2012 - 19:06 | 2470293 sessinpo
sessinpo's picture

Another convert. About time.

Mon, 05/28/2012 - 19:22 | 2470333 Poor Grogman
Poor Grogman's picture


If the PTB can find an angle from which to lever these real divisions then they will.

If you  are a Grand Master and able to change the rules as you go. As well as actually sponsoring the whole tournament.

Then the game itself is really only for amusement, the outcome is already planned.

If you have to give away a few pieces during the match to make the game a bit more exciting then why not?

Let the people have some fun...

Its all part of the game.


Hows that for cynical?


Tue, 05/29/2012 - 07:04 | 2471013 IBelieveInMagic
IBelieveInMagic's picture

It's a symbiotic relationship that has gone sore -- both the parasite and host are going to hurt if this thing collapses. There is no black and white in this mess.

Bottom line is that fiat based global trading is good as long as no real value is provided by the powerful (only the militarily weak have to submit). The moment anyone attempts to extract anything of real value from the reasonably strong, they will repudiate all such claims. Look what the US did to China when Chinese company tried to buy oil company UNOCAL -- it went to the Senate who told the Chinese to fuck off. The reality is that the party with the trade surplus will be allowed to buy stuff that can't be carted away (like real estate -- ask the Japanese about their purchase of Rockefeller Center) preferably at an inflated price or trade surplus country has to pass the hot potato to some other sucker (which the Chinese have done/are doing in Africa). But, real assets will not be provided in exchange for reserve holdings...

Mon, 05/28/2012 - 18:42 | 2470267 Mark123
Mark123's picture

Sure....increase taxes on the rich (.0001%) and make even more commitments to the already unaffordable ones in place (welfare for all). 

Funny thing, but the really rich never pay taxes (since they control the system) and all this does is to crush the truly creative wealth builders so the .0001% become even more powerful.  And as for the welfare system, it will collapse and then all you are left with is ignorant masses ruled by a small, very rich elite.  Sound familiar?  It should, it is what we lived with until a few enlightened people sacrificed everything to create the liberty that pulled us out of the dark ages.



Mon, 05/28/2012 - 18:51 | 2470275 frenchie
frenchie's picture

since when masonic jews are enlightened people ?

and since when before "illumination" (wink wink illuminati) was it so dark ?

Mon, 05/28/2012 - 20:29 | 2470450 RoadKill
RoadKill's picture

Ohh another disaffected youth that hates Jews and just got done reading "Shadows of Power".. How cute!

Btw I used to be a Birtcher till I got an education and joined the world of high finance and realized most of the people there arent smart enough to be part of such a conspiracy and the ones that are simply arent interested becausr they can make so much money on their own.

Bte I know at least 6 billionaires personally (including 2 that have been in the top 10), many more people with 9 figure net worths and have even done business with a "Rothchild" (who at best was worth a few hundred million). Im surr other Bankers and Hedgies on here have the same experience. Ill bet none of you jew hating nut bag conspiratorialist do.

Mon, 05/28/2012 - 21:49 | 2470565 barliman
barliman's picture


I've never met a third generation or greater "old money" person who wasn't demonstrably dumber than a lamp post (i.e. the only thing they were adept at doing was making the family fortune much smaller) or a lot smarter than me.

Problem for the conspiracy monkeys: The ratio of morons to geniuses runs 99 to 1 over any statistically significant period of time. What number of offspring would the Rothchilds et al need to procreate every generation in order to be able to maintain control of the world's wealth?



Mon, 05/28/2012 - 21:07 | 2470511 Joe The Plumber
Joe The Plumber's picture

Jubilee will take care of those rich bastards that control us.

Sometimes you have to knock the chess pieces off the board and start all over

Mon, 05/28/2012 - 18:46 | 2470270 Mark123
Mark123's picture

Germany is doing a better job than the rest of the world, but I would still like to see them go after the banksters - THAT would be awesome (might even consider moving to Germany then).  If they still continue to support the banksters while forcing austerity on the public, then I think all their talk of austerity is just theatrics.

Mon, 05/28/2012 - 18:49 | 2470273 zerotohero
zerotohero's picture

remember the soup nazi ?

Mon, 05/28/2012 - 19:07 | 2470296 sessinpo
sessinpo's picture

He stole my recipe. Half eurine, half spitz

Mon, 05/28/2012 - 19:00 | 2470281 no life
no life's picture

Why not come up with a plan that is so completely and utterly insane that no one anywhere would accept it, and go with that?

Mon, 05/28/2012 - 21:16 | 2470521 CuriousPasserby
CuriousPasserby's picture

They tried that, it was called the Euro.That's what got us here.

Mon, 05/28/2012 - 21:57 | 2470586 Fred Hayek
Fred Hayek's picture

With Krugman around, such ideas are nearly impossible to conceive. Too insane for Paul "Let's create a housing bubble" in 2002 Krugman? Too insane for Paul -Paying any notice to crushing debt is for wimps- Krugman?

Mon, 05/28/2012 - 19:04 | 2470286 carbonmutant
carbonmutant's picture

I believe the game is called "Go"

And that piece was skillfully placed...

Mon, 05/28/2012 - 19:07 | 2470297 knukles
knukles's picture

Why in God's name anybody continues this charade, the perpetuation of an Imaginary Nash Equilibrium, a false front of united hands for, of and by the people, the illusion of all is well became beyond crdibile comprehension long ago.  

Please.  Just shoot it in the head and put the world out of it's misery.

Seriously, this is the epitome of Lunatics Capturing the Asylum.

The World is Gone Truly Mad.

Mon, 05/28/2012 - 19:14 | 2470306 Plumplechook
Plumplechook's picture

So now Tyler is shilling for the German bankers.   Merkel's whole  'austerity for southern peasants' is simply designed to protect the interests of the German creditors whose crazy lending to the EU periphery fueled this crises.

Sorry - but I'm not buying into Merkel's morality tale about the wreckless spending of the PIIGS.   How often does it have to be pointed out that countries like Spain and Ireland were in good fiscal shape prior to the 2008.  It was private debt, funded largely by German banks,  that created this mess.

Let Iceland be their role model. 

Mon, 05/28/2012 - 22:03 | 2470570 barliman
barliman's picture


Please contact any German bankers you know and tell them Zerohedge is "shilling" for them.

See how many offensive names they use in reference to yourself that you can keep track of before they hang up.



Tue, 05/29/2012 - 04:11 | 2470928 jez
jez's picture

But isn't this "wreckless spending" causing one wreck after another?

Tue, 05/29/2012 - 06:22 | 2470978 noses
noses's picture

wreck-less, not wreck-free.


"Greek economy is a wreck." "Ok, let's spend some more shit on them to keep them from wrecking ours, too."

Tue, 05/29/2012 - 06:27 | 2470983 honestann
honestann's picture

Without a doubt, both sides are guilty as hell.

And yes, Iceland is the model every country should adopt... except be even more aggressive about chasing out the predators-DBA-government and predators-DBA-banksters.  Better yet, hang them.

Mon, 05/28/2012 - 19:14 | 2470308 nmewn
nmewn's picture

So, is Hollande is going to sell off his real estate holdings (except one to actually, ya know, live in) and "sociably" donate the proceeds to the national treasury?

Place your bets ;-)

"The President-elect declared owning no stocks and no works of art or jewels, the document shows."


Mon, 05/28/2012 - 21:27 | 2470535 Matt
Matt's picture

If he really has no other assets other than $1.5 million worth of real estate, hell no he won't get rid of it. Whether all the other assets are in his partner's name, or whether that is all they have between them is a good question. He might sell it once out of office.

Ok, let's imagine this is back pre-Crisis. Let's say that $500,000 of the real estate is the primary residence. That leaves $1 million. Back then, a 7 percent annual return would seem fairly reasonable. That is $70,000 per year, re-investing $20,000 for inflation, for an income of $50,000: hardly wealthy.

This is assuming tax free income. If the government takes ~30 percent and you still reinvest the $20K, you're looking at $29,000 to live on. If that was for both of them, that would be very little.

Now, I seem to be having trouble finding out exactly how much pension a french president gets once he is out of office. I'm assuming that all the titles and positions he has held during his political career are going to pay out far more than the value of all his assets at this point.

Mon, 05/28/2012 - 21:56 | 2470581 barliman
barliman's picture


Be they ever so humble ...

... there are few bargains in life as delightful as a useful idiot who will work cheap.


Mon, 05/28/2012 - 19:15 | 2470311 q99x2
q99x2's picture

Monti Python

Mon, 05/28/2012 - 19:18 | 2470321 Agent P
Agent P's picture

Face your opponent...bow...ready...fight!!!

Mon, 05/28/2012 - 19:20 | 2470328 TheMonetaryRed
TheMonetaryRed's picture

How exactly is Germany "deleveraging" when it is running a budget deficit that's 1% of GDP?

There simply isn't enough money in "austerity" to get the job done. Europe will monetize and inflate because that's the logical thing to do when countries amass too much debt. History is clear. 


Mon, 05/28/2012 - 19:52 | 2470386 nearvana
Mon, 05/28/2012 - 20:03 | 2470405 Wolferl
Wolferl's picture

Growth of GDP is larger than new deficit. Result: Delaverage.

Mon, 05/28/2012 - 19:24 | 2470339 jmcadg
jmcadg's picture

Don't forget back in October:

Mon, 05/28/2012 - 19:34 | 2470350 Tom Green Swedish
Tom Green Swedish's picture

Germany 10 - PIGS / France 0

Mon, 05/28/2012 - 19:37 | 2470360 PLove
PLove's picture

Look for Russia and Germany to do a deal.

Which was Bismark's very sage advice.

Mon, 05/28/2012 - 20:13 | 2470425 Poor Grogman
Poor Grogman's picture


Then together they can bail out Uncle Sam in a few years time.

Rinse and repeat?

Mon, 05/28/2012 - 19:55 | 2470387 Joe The Plumber
Joe The Plumber's picture

The EU could solve this by letting Greece print out IOUs and use them internally for transaction purposes and taxes. Allow these IOUs to float against the Euro.

As long as no one dared call it a currency IOUs could be used internally and Euros or IOUs could be used for external trade

The internal devaluation greece so desperately eeds could occur while greece remains in the eurozone

The government pays people in IOUs and accepts them for tax payments

Mon, 05/28/2012 - 23:14 | 2470594 barliman
barliman's picture


You've never read anything about the Weimar Republic, have you?

Or Argentina. Or Zimbabwe. Or ....

One of the best sayings I have ever come across: "I have never met anyone smart enough to come up with a NEW way of making a mistake."


Mon, 05/28/2012 - 20:00 | 2470400 Element
Element's picture

Check it out:

Today Tony Blair gets labelled a war-criminal working for JPMorgue ... to camera ... in a court room ... by a protester.

Good call!

Mon, 05/28/2012 - 20:03 | 2470401 SwingForce
SwingForce's picture

The CHERADE Continues, all those who remain enthralled are fukking DOPES.

Tsipras has a VERY GOOD POINT. (Not to distract FR from G....)

Mon, 05/28/2012 - 20:02 | 2470404 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Who cares what the credit agencies say about France?  The question is what is the CDO market saying?

Mon, 05/28/2012 - 20:17 | 2470415 EclecticParrot
EclecticParrot's picture

Merkel:  "No, Francois, I'm absolutely sure  --  these floor markers are for the Watusi, NOT the tango.  (sighs)  Ah, such memories!  When I was little girl in Hamburg, we'd eat chocolates with Schnapps cream centres and dance all night ... "

Hollande: "Wunderbar !"  (then, muttering to himself)  "Fine with me, I'd rather dance solo than with the Great Pumpkin.  Somewhere, on the outskirts of Athens, office workers are flocking to the most austere pumpkin patch they can find, waiting for your Teutonic ass to arrive."

Merkel:  "I heard that !  Even a fool should know -- orange is the new blue."

Tue, 05/29/2012 - 03:29 | 2470915 WAMO556
WAMO556's picture

LEVITY!!! I would PLUS you what Bernanke has printed in the recent past. But alas, I am only allowed ONE. But, thank you. You just made a day of it!!

Many Regards!!!

Tue, 05/29/2012 - 08:18 | 2471096 EclecticParrot
EclecticParrot's picture

Many thanks.  My alternative choice was:  "Look, Francois, at how the cute little Greek ants are attacking that cookie crumb!   Why, I could just about cover them all with the bottom of my shoe . . ."

Mon, 05/28/2012 - 20:23 | 2470437 Piranhanoia
Piranhanoia's picture

Politicians and stand up comics work the same kind of room. Comics get better ligthing, but both are there to entertain.  They do their show, the audience decides what is funny.    Why do the politcs always bomb?  

Mon, 05/28/2012 - 20:33 | 2470458 BluePill
BluePill's picture

There will be no easy way out of this mess


Until then Indian immigrants will feed on other nations--These filthy parasites are destroying every nation 


Why on earth no one is willing to nuke these filthy vermin --i dont know 

Mon, 05/28/2012 - 21:04 | 2470507 Joe The Plumber
Joe The Plumber's picture

An Indian must have taken your job at half price

Mon, 05/28/2012 - 23:45 | 2470734 Element
Element's picture

Nah, one just charged him $87 for what should have been a $15 cab fare.  Happens all the time.   It is no exaggeration to say that first-gen immigrant Indians think there are no social or legal rules that apply to them.

In my experience the second gen Indians are different to this, and behave much more like a typical local (i.e. decently and honestly).

This problem is very much with the just-off-the-boat South Asians (Pakis and Sri Lankans are just as bad, if not worse ... Sikhs mostly seem to be the exception). They don't give a damn about anything you say unless they are fined, banned, jailed or threatened with deportation.

Then suddenly, like magic, they completely understand what they were doing wrong, apologise profusely, tell a bunch of inconsistent lies, and promise never to do it again.

And then they do it again.

Warnings and rules won't work, you have to take a hardline with them, from the outset, because they ruthlessly exploit any sort of latitude or trust shown to them.  As a result many people here think South Asian sub-continental immigrants are a human equivalent of the introduced pest, the Myna Bird, i.e. they are increasingly not welcome here.

And then, after they have been given every fair chance and opportunity the country and society can offer them, and have spat on it, so are pulled into line for their serial bad-behaviour, they come back with their ridiculous cheek and assert that we're 'racist' toward Indians.


Stay in India then you arrogant theiving ungreatful disingenuous arseholes, we're over you.

Mon, 05/28/2012 - 21:57 | 2470587 Andy Lewis
Andy Lewis's picture

Nurse!!!  This patient is off his meds!!

Mon, 05/28/2012 - 20:35 | 2470460 world_debt_slave
world_debt_slave's picture

ahhh, Merkel misses her old squeeze, Sarko

Mon, 05/28/2012 - 22:28 | 2470643 Sandmann
Sandmann's picture

Funny that, she loathed Sarkozy at all levels

Tue, 05/29/2012 - 02:42 | 2470895 world_debt_slave
world_debt_slave's picture

loathing for the win~

Mon, 05/28/2012 - 20:40 | 2470466 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Hussman's Eurobond analogy from his latest newsletter (I found it quite amusing):

This is like 9 broke guys walking up to Warren Buffett and proposing that they all get together so each of them can issue "Warrenbonds." About 90% of the group would agree on the wisdom of that idea, and Warren would be criticized as a "holdout" to the success of the plan. You'd have 9 guys issuing press releases on their "general agreement" about the concept, and in his weaker moments, Buffett might even offer to "study" the proposal. But Buffett would never agree unless he could impose spending austerity and nearly complete authority over the budgets of those 9 guys. None of them would be willing to give up that much sovereignty, so the idea would never get off the ground. Without major steps toward fiscal union involving a substantial loss of national sovereignty, the same is true for Eurobonds.

Mon, 05/28/2012 - 21:55 | 2470579 post turtle saver
post turtle saver's picture

Bingo, +1

Tue, 05/29/2012 - 02:41 | 2470892 GernB
GernB's picture

This is the basic problem with the whole arrangement. It is wrong to ask one entity to pay for the liabilities for another, without any conrol over their behavior and decision making. This is true whether we are talking about infrastructure spending in the US, government run health care, or Eurozone bail-outs. If one person is going to be responsible for paying someone elses health care bills then they are owed a voice in what that person eats, how much they exercise, etc, so that they can control the limits of that liability. If Germany is going to make its citizens responsible for the over-spending of another nation then it owes it to its citizens to ensure thay have a voice in the spending of those nations. Agreements are entered into for mutual benefit. When there is no longer a mutual benefit they should be dissolved.

Mon, 05/28/2012 - 21:39 | 2470549 post turtle saver
post turtle saver's picture

Le travail rend libre!

Mon, 05/28/2012 - 23:48 | 2470755 StychoKiller
StychoKiller's picture

Hey!  How'd you get up there?  What're you DOING up there?

Tue, 05/29/2012 - 01:32 | 2470853 post turtle saver
post turtle saver's picture

Ancient Chinese secret

Mon, 05/28/2012 - 22:04 | 2470600 Jim in MN
Jim in MN's picture

Merde!  No one remembered to wind her up this morning.  Maybe it is better this way.

Tue, 05/29/2012 - 04:41 | 2470941 Olympia
Olympia's picture


Germans plunge Europe into a new Medieval Era. Are they ready to take that risk ?

So, there is a question posed to those who love accounting. How many hundreds of billions of Euros is a naval base worth in the middle of the Aegean? How many hundreds of billions of Euros do the Europeans make because Greece provides for their defense as well? Who is the deadhead in this case? Is it Greece which provides its aircraft carriers or The Netherlands that chips in a few crates of beer for the common defense? Things are simple. Until now, the Europeans could play it smart by paying a pittance. They know Greeks will protect their interests even if it means dying, so they hide behind these interests to pay a pittance. What will happen, though, if the Greeks decide to follow their example? What will happen if the Greeks decide to pay a pittance and they hide behind the Russian interests, which are anti-European by nature?


The Eastern gates of Europe at risk: How Northern Europe shoots itself in the leg





Tue, 05/29/2012 - 08:24 | 2471118 Sandmann
Sandmann's picture

Greece should link up with Turkey and Lebanon into a new economic area. They are former members of the Ottoman Empire and have similar business practices.

A Greek naval base is worth nothing to Europeans - France, Spain and Italy and Cyprus can provide such bases - as does Turkey. Europe has 3 aircraft carriers at most

Tue, 05/29/2012 - 06:50 | 2471000 Winston Churchill
Winston Churchill's picture

Warm up the panzers.

Fourth time is a charm.

Tue, 05/29/2012 - 08:15 | 2471089 Sandmann
Sandmann's picture

It would be so nice if it were true after all it was someone using that name that caused much of the sorry state we find ourselves in. Greece does have a very large tank army you are right....1723  vs Turkey 2317 and Germany 2368 and Ukraine 3784

Tue, 05/29/2012 - 21:46 | 2473979 pussum207
pussum207's picture

Go Angela.  I mean really go - as in exit the euro.

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