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The Monster Has Awakened

Tyler Durden's picture




 

Via Mark J. Grant, Author of Out of the Box,

 

"I was answered through the stillness of night by a loud and fiendish laugh. It rang on my ears long and heavily; the mountains re-echoed it, and I felt as if all Hell surrounded me with mockery and laughter."
 
                                              -Mary Shelley, Frankenstein
 
The most significant event of yesterday was not the Spanish banking system unlocking the door to the horror chamber and clicking the melt-down button that it found on the wall but what happened at the European Union. That which had been created woke and in its new found consciousness sat upright and staring into the void it turned upon its Master. It should not have come as a surprise, I suppose, but the mockery of the beast was a frightening sight.
 
For thirteen years the nations of Europe had worked, slaved, propped up their egos with their ministrations and yesterday the Creation came into its own mind and threw off the shackles in which it had been bound and leapt up upon the table and announced that it no longer belonged to any man and that the chains that had held it would not enslave it any longer. Brussels turned, and looking Berlin squarely in the eye, it used impolite words and gestures and essentially said:

"Stick it."

Those living in Belgium, created and paid for by the nations on the Continent, cast off their shackles and announced themselves free men. To some extent it was the fruition of them believing their own proclamations and to some extent it was their believing the dreams that had been foisted upon them but in the end, which occurred just yesterday, they demanded their own Manifest Destiny and announced it to the world.
 
Brussels has now called for Eurobonds, has called for the ESM to fund the European banks and it a sign of their new felt independence, has thrown all of this squarely in the face of Germany, the Netherlands, Finland et al who are providing the money. Firstly, and most humorously, there is no ESM at present; it does not exist. The markets spiked initially yesterday when Brussels made its grand pronouncement until the collective mind realized that what was called for was only resident in the imagination of those living in Belgium and was not a reality yet, if ever, in the real world. It was rather humorous to be frank, watching billions of Dollars and Euros change hands based upon a fantasy tossed out and written in officialdom for all to read. This was not even reliance upon some contingent asset or promise to pay because the mechanism, while much discussed and surely endorsed by most, had not yet come into existence so that it was rather like talking about what present you would like to get on your next birthday.
 
Finland emerged from the thaw first and said, “No,” to be followed by Germany that woke up and said “No” and the markets quickly came back to their senses but Brussels had already let the cat out of the bag and it remains to jump up now at any time and scratch everyone rakishly across the face. The European Union, like some amoeba dividing, is itself dividing with the nations needing funding, joined by the bureaucrats in Belgium, demanding total equality where everyone in Europe is to live exactly the same and with the exact same standards of living. This plays out well in Portugal, Greece, Spain et al but not so much in Germany, Austria and the Netherlands. However it all goes down I can assure you, one hundred percent, that in the end Berlin will not allow itself to decline to the extent that their lifestyle is exactly the same as those in Athens and Lisbon. That will NOT be happening in this lifetime!
 
France, the middle player and the supporter of Germany in times past is now firmly aligned with those demanding cohesion. The game has changed. It will no longer be push and shove and muddle through but convictions and ideology that are in stark opposition so that surprises and inflamed statements will become the order of the day and not the exception. If it is to be either Germany for the Germans or Germany for the citizens of Athens, make no mistake in your thinking; Berlin will prevail regardless of the outlying costs to either the nation or to the future of the Union that theoretically governs Europe.
 
"Mingled with this horror, I felt the bitterness of disappointment; dreams that had been my food and pleasant rest for so long a space were now become a Hell to me; and the change was so rapid, the overthrow so complete!"
 
                                                              -Mary Shelley, Frankenstein

 

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Thu, 05/31/2012 - 10:25 | 2479334 Ahmeexnal
Ahmeexnal's picture

War and Pain

Thu, 05/31/2012 - 10:26 | 2479342 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Frankenstein, bitches!

Thu, 05/31/2012 - 10:30 | 2479366 redpill
redpill's picture

The beast has turned on its master, and it's going to eat its face off like a transient on bath salts.

Thu, 05/31/2012 - 10:35 | 2479400 Ahmeexnal
Ahmeexnal's picture

Ahmeexnal thinks eurusd will break the 1.22 handle this week.

Thu, 05/31/2012 - 10:41 | 2479444 resurger
resurger's picture

FB will break the 25 handle tomorrow if not today

Thu, 05/31/2012 - 10:56 | 2479523 Nothing To See Here
Nothing To See Here's picture

After that, let the FaceGate begin...

Thu, 05/31/2012 - 12:08 | 2479869 metastar
metastar's picture

Captain Angela Merkel: Computer, this is Captain Angela Merkel of the U S S Enterprise; DESTRUCT SEQUENCE 1 code 1-1-a.

Computer voice: Voice and code 1-1-a verified & correct Sequence 1 complete.

Captain Angela Merkel: Mr. Hollande?

Mr. Hollande: This is Commander Hollande, Science Officer; destruct sequence number 2 code 1-1-a-2-b.

Computer voice: Voice and code verified & correct Sequence 2 complete.

Captain Angela Merkel: Mr. Draghi?

L Cmdr. Montgomery 'Draghiy' Draghi: This is L Cmdr. Draghi, Chief Engineering officer of the U S S Enterprise. Destruct sequence number 3: code 1-b-2-b-3.

Computer voice: Voice and code 1-b-2-b-3 verified & correct destruct sequence completed and engaged. Awaiting final code for 30 second countdown.

Captain Angela Merkel: Mr. Hollande, has the ship returned to the course set for it by my orders?

Mr. Hollande: Negative captain, we are still headed directly for Financial Calamity

Mr. Hollande: Destruct sequence engaged. Awaiting final code for 30 second countdown.

Captain Angela Merkel: Computer, this is Captain Angela Merkel of the U S S Enterprise; begin 30 second countdown. Code zero-zero-destruct-zero.

Computer voice: 30 seconds... 29... 28... 27...

Thu, 05/31/2012 - 12:26 | 2479958 Citxmech
Citxmech's picture

Well done, sir.

<applause>

Thu, 05/31/2012 - 22:20 | 2482234 mjcOH1
mjcOH1's picture

"Brussels turned, and looking Berlin squarely in the eye, it used impolite words and gestures and essentially said: "Stick it."

Brussels had damn well better come up with a few million productive workers and savers and a current account balance, or Brussels will be kissing the asphalt.

Thu, 05/31/2012 - 16:23 | 2481047 mkkby
mkkby's picture

Indeed, nothing to see here...  the age old story.  The socialists feel entitled to someone else's money.  The producers say I'll keep what's mine, fuck you very much. 

It will go on until they run out of other people's money, or the producers get smart and fire all the leeches.

Thu, 05/31/2012 - 11:04 | 2479550 Precious
Precious's picture

"Dinosaur" is a more appropriate metaphor.  Heavily centralized structures like EU are helpless against the new forms of organization that the internet is spawning.  Loosely organized, autonomous networks are the future, not centralized bureaucracies.  

Ants, in their colonies, are the most populous creature on land, not dinosaurs and Frankensteins.  The sounds you hear are the dying cries of the obsolete institutions.

Thu, 05/31/2012 - 11:14 | 2479613 justinius1969
justinius1969's picture

will get bumholed to $10 by end of summer...

Thu, 05/31/2012 - 14:43 | 2480698 Cupid Stunt
Cupid Stunt's picture

The beast turning on it`s masters...http://www.youtube.com/watch?v=7xnNhzgcWTk

 

 

Thu, 05/31/2012 - 12:48 | 2480088 noses
noses's picture

Frankenswine, to be more precise.

Thu, 05/31/2012 - 11:11 | 2479604 somecallmetimmah
somecallmetimmah's picture

They've done 'war'.  'Pain' ends when Germany decides they've had enough of this childish, euro-trash nonsense.

Thu, 05/31/2012 - 11:14 | 2479616 Precious
Precious's picture

The Germans invented Eurotrash.

Thu, 05/31/2012 - 11:33 | 2479683 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I doubt there will be war.  The Europeans got that out of their system in the 20th century.

Thu, 05/31/2012 - 10:26 | 2479339 taniquetil
taniquetil's picture

I seem to remember that Germany declared unified Eurobonds to be a violation of its constitution. Can anyone confirm?

Thu, 05/31/2012 - 10:26 | 2479344 slaughterer
slaughterer's picture

26 handle for FaceShit in site.  

Thu, 05/31/2012 - 10:28 | 2479359 ArrestBobRubin
ArrestBobRubin's picture

Shorties be wildin'

Thu, 05/31/2012 - 11:23 | 2479645 Ahmeexnal
Ahmeexnal's picture

EuroBONGS for all!

Thu, 05/31/2012 - 10:49 | 2479480 Soul Train
Soul Train's picture

FaceShit, or FartBook, what's the difference?

Just another example of greed, fraud, stupidity and bankster jerks lacking professionalism.

Imagine, just a few short weeks ago, all the expert talking heads were offering analysis support for the stock to sell in the upper 30s, 40s and some even 50-60.

Ha ha - bunch of blowhards JPM, MS, GS, the whole lot.

Thu, 05/31/2012 - 11:26 | 2479655 A Nanny Moose
A Nanny Moose's picture

ShaceFit

Thu, 05/31/2012 - 10:31 | 2479387 misterc
misterc's picture

Yes, but more in a "offer us corrupt constitutional judges who we are all official individual members of the ruling political parties a superficial workaround so we can have our cake and eat it too"-way.

Thu, 05/31/2012 - 10:41 | 2479449 BandGap
BandGap's picture

That is true, and the follow up with german judges gave it a snowballs chance in hell of being constitutional.

Thu, 05/31/2012 - 15:57 | 2480969 ConfederateH
ConfederateH's picture

Germany is learning just who exactly controls the printing presses.

Thu, 05/31/2012 - 10:26 | 2479343 the not so migh...
the not so mighty maximiza's picture

Eurobonds are illegal

Thu, 05/31/2012 - 10:30 | 2479364 Ahmeexnal
Ahmeexnal's picture

It's OK as long as you don't inhale them.

Thu, 05/31/2012 - 10:30 | 2479376 redpill
redpill's picture

The Choom Gang used to smoke fffaattt eurobonds

Thu, 05/31/2012 - 10:46 | 2479479 brooklynlou
brooklynlou's picture

If this keeps up, Joker rolling paper will be worth more than Euros

Thu, 05/31/2012 - 10:50 | 2479501 EverythingEviL
EverythingEviL's picture

Oh god that story is still making me laugh....You can't make that shit up.  Choomwagon FTW

Thu, 05/31/2012 - 10:57 | 2479524 Hugh_Jorgan
Hugh_Jorgan's picture

The best is when you and you bros smoke the a fat eurobond in the car and then crawl around amongst in the candy wrappers and dried french fries to suck up "floor hits" off the smoke collects down there on the bottom.

Or at least I've read that is how it works... ahem. Yes.

Thu, 05/31/2012 - 10:27 | 2479350 Cognitive Dissonance
Cognitive Dissonance's picture

It seems that even when Germany loses a battle (or two), it often wins the financial war(s).

Thu, 05/31/2012 - 10:48 | 2479492 brooklynlou
brooklynlou's picture

Actually its the other way around. Historically the Germans have a short sighted view of strategic goals. As a result they tend to win the early battles but lose the war*

* See WW1, WW2 and we may just add the Euro [WW3] to the list.

Thu, 05/31/2012 - 11:37 | 2479705 ParkAveFlasher
ParkAveFlasher's picture

I'll see that comment and raise you 10 Bavarian castle vaults brimming with plundered gold. 

Thu, 05/31/2012 - 10:27 | 2479351 slaughterer
slaughterer's picture

Eurobonds sind VERBOTEN!

Thu, 05/31/2012 - 10:27 | 2479352 ArrestBobRubin
ArrestBobRubin's picture

No one could have seen this coming!

Thu, 05/31/2012 - 10:27 | 2479354 Al Capowned
Al Capowned's picture

My mommy always said there were no monsters - no real ones - but there are.

Thu, 05/31/2012 - 10:31 | 2479384 ArrestBobRubin
ArrestBobRubin's picture

Get Mommy a Remington 870 Tactical 12 gauge slide action shotgun to help clean up the real ones.

Thu, 05/31/2012 - 10:37 | 2479414 Al Capowned
Al Capowned's picture

I dont think they sell those in the UK, most you can get here is a gun which has a 'BANG' flag come out the barrel when you pull the trigger,

 

Thu, 05/31/2012 - 11:01 | 2479542 LFMayor
LFMayor's picture

Then make her a ransuer, volgue or a spetum.  It takes weapons to fight for your freedom.

Thu, 05/31/2012 - 16:25 | 2481056 Things that go bump
Things that go bump's picture

You can make your own, you know.  Look up z i p _ _ n.  They were widely used in the states in the 50s.  Money was hard to come by in those days, so people just used a length of pipe and made do.  They did the job, but were occasionally known to blow up in the users hand.  I don't know how you would get the lead for it.  I imagine that is controlled too.   Unfortunate incidents involving guns are the price that is paid.  

 

Once you let your government disarm you, you are screwed.  The urge is always for greater and greater control of the subject population.  Soon enough they want to regulate every aspect of everyone's life.  They'll regulate the number of children you can have, like China.  I'm surprised they haven't demanded that children be raised by the state so that they can be properly indoctrinated. 

Thu, 05/31/2012 - 10:36 | 2479409 CrashisOptimistic
CrashisOptimistic's picture

Newt!

Thu, 05/31/2012 - 10:37 | 2479424 IAmNotMark
IAmNotMark's picture

I love that quote.  I love that movie!

Game over, man!  Game over!

Thu, 05/31/2012 - 11:27 | 2479661 ZeroHour
ZeroHour's picture

"I say we take off and nuke the entire sight from orbit"

Thu, 05/31/2012 - 13:58 | 2480482 EINSILVERGUY
EINSILVERGUY's picture

"only way to be sure"

Thu, 05/31/2012 - 13:33 | 2480355 RealFinney
RealFinney's picture

Newt, these men are Ivy League economics professors, they're here to help.

Thu, 05/31/2012 - 10:28 | 2479356 AccreditedEYE
AccreditedEYE's picture

Berlin! Please show the world that profligate behavior has consequences!! Stand strong!

Thu, 05/31/2012 - 11:08 | 2479588 ThirdWorldDude
ThirdWorldDude's picture

Starv the f#cking beast! Let the Eurocrats eat Lagarde!

Thu, 05/31/2012 - 10:28 | 2479358 q99x2
q99x2's picture

Bring back mood rings.

Thu, 05/31/2012 - 10:29 | 2479361 CrashisOptimistic
CrashisOptimistic's picture

Eurobonds are euphemism for someone else pays for our vacation.

For God's sake, people.  They are arguing . . . NOT ABOUT GETTING TO SURPLUS AND PAYING DOWN DEBT . . . they are arguing about who will lend them more debt.

They are insane.  

Thu, 05/31/2012 - 10:31 | 2479378 slaughterer
slaughterer's picture

Aber die freundliche Chinesen wird uns alle in Europa retten!  Oder?

Thu, 05/31/2012 - 10:33 | 2479394 CrashisOptimistic
CrashisOptimistic's picture

That was 2011's bogus rumor.  Put it back to bed.

Thu, 05/31/2012 - 14:22 | 2480630 Mysteerious Roo...
Mysteerious Rooshian Vooman's picture

 

 

Unwahrschleinlich.

Thu, 05/31/2012 - 10:29 | 2479365 GCT
GCT's picture

Nothing is illegal to the financiers!

Thu, 05/31/2012 - 10:30 | 2479372 midgetrannyporn
midgetrannyporn's picture

the abyss staring back into germany

Thu, 05/31/2012 - 10:31 | 2479379 I am a Man I am...
I am a Man I am Forty's picture

Let the banks burn!

Thu, 05/31/2012 - 10:32 | 2479388 williambanzai7
williambanzai7's picture

FRAU MERKEL

Thu, 05/31/2012 - 10:33 | 2479393 redpill
redpill's picture

*cue the horses*

Thu, 05/31/2012 - 10:35 | 2479399 Byte Me
Byte Me's picture

Oooh! Oooh! Do Merkenstein pls William B7

Thu, 05/31/2012 - 10:37 | 2479406 AccreditedEYE
AccreditedEYE's picture

What big KNOCKERS you have.... http://youtu.be/Y4Kbyte51MY

Thu, 05/31/2012 - 10:37 | 2479421 BlandJoe24
BlandJoe24's picture

WB7, have you done something yet with "EuroBonds"...as in Euro(style)Bond(age)... could go sexy or slavery...

Thu, 05/31/2012 - 10:45 | 2479472 duo
duo's picture

"Eurobonds.  Very dangerous.  You go first."

Thu, 05/31/2012 - 11:09 | 2479594 fredquimby
fredquimby's picture

We are still waitng for a WB7 Mitt R-money vs. Max Headroom too!!!

Thu, 05/31/2012 - 11:29 | 2479668 A Nanny Moose
A Nanny Moose's picture

Give her the Sed-a-give

Thu, 05/31/2012 - 10:32 | 2479389 slaughterer
slaughterer's picture

BUY the close of EZ markets!  RIGHT!!!!!!  Now even CNBC has a clock to count off when Europ closes.  

Thu, 05/31/2012 - 10:32 | 2479390 semperfi
semperfi's picture

Which is EXACTLY what Berlin wants !!!!   They want the rest of the EU to kick them out of the EU/Euro so that they don't look like the party-poopers.  They want to look like the abandoned son, orphaned, pushed out of the nest in disgrace, and then having to go it alone - so that they can then join up with China & Russia without pissing everyone else off.  Nobody gets pissed-off at a downtrodden victim.  Playing right into Germany's hands. 

Thu, 05/31/2012 - 10:45 | 2479468 BandGap
BandGap's picture

That's like kicking the kid with the only football off the team. No stay, no play.

This is forcing a choice between staying in the EU or securing a future for your populace. Germany can fall back on the FACT that Eurobonds are ILLEGAL.

Thu, 05/31/2012 - 10:33 | 2479395 supermaxedout
supermaxedout's picture

Brussels is a toothless monster, if at all. Baroso has no power at all. Its the heads of the different member state which are making together  politics and decisions. Brussels and Baroso are executing these decisions taken by the  now regular meetings of the heads of member the states or their finance ministers. This is how it works in Euroland nowadays. Forget Brussels and Baroso, who is just a puppet of his masters in Washington and London.

 

Thu, 05/31/2012 - 11:08 | 2479584 fredquimby
fredquimby's picture

They are all toothless because the EURO has cut it's ties to a nation state.

They CAN'T do anything!

Thu, 05/31/2012 - 10:35 | 2479401 q99x2
q99x2's picture

From CNBC 'Europe needed new tools to fight bank runs'

Obama just gave the predator drones last week. What more do they want.

Thu, 05/31/2012 - 10:45 | 2479475 BandGap
BandGap's picture

No shit, the craziness continues.

Did the Vatican get in their order?

Thu, 05/31/2012 - 11:05 | 2479563 brooklynlou
brooklynlou's picture

I think the butler ate the sell order ...

Sell Benedict! SELL!!!

 

Thu, 05/31/2012 - 11:17 | 2479627 Convolved Man
Convolved Man's picture

Order pending outcome of OT results for newly developed GPS-guided Holy water cluster bombs effectiveness against zombie hordes.

Miami, FL chosen as the OT site.

 

Thu, 05/31/2012 - 11:13 | 2479609 ThirdWorldDude
ThirdWorldDude's picture

Send in storm-troopers to guard the ATM's.

Thu, 05/31/2012 - 11:37 | 2479711 nodhannum
nodhannum's picture

CNBC needs new tools to fight off reality.  Fire up the Choom Wagon bitchez!

Thu, 05/31/2012 - 10:35 | 2479402 Bugsquasher
Bugsquasher's picture

When the Nazis marched across Europe the first thing they did was seize the gold from the banks and the artwork from the museums.  This time Germany won’t need an army, they will just have the bankers do it for them!

Thu, 05/31/2012 - 10:50 | 2479500 spine001
spine001's picture

You are misinformed. The Gold is long gone from the EU, it is in London and the US, very little physical remains. The funny thing is that since it is a repoable asset, title to that asset if it ever gets to that point (the music stops and assets need to be assigned a rightful owner), will be contested for hundreds of years (if we subsist that long without WWIII), since the dericative business has interconnected the risk in such a manner that when one goes down, they basically all do.

I now, I can be accused of making an assumption, given that NOBODY knows all the derivative contracts around, nor their exact terms, but from my experience in network topologies and failure modes, when you have uncontrolled connectivity and unknown dependencies, the only safe assumption to make is that it can all crash from a single point failure. That is why you plan it, you map it and you control the dependencies.

Until next time,

Engineer

Thu, 05/31/2012 - 22:02 | 2482173 StychoKiller
StychoKiller's picture

A steamin' plate of spaghetti-code springs to mind here...

Thu, 05/31/2012 - 11:06 | 2479572 A Man without Q...
A Man without Qualities's picture

It's such a simple argument.  They demand Germany underwrites their debts, but refuse to make any promises on spending and if they won't, call them Nazis and blame them for stealing all the gold.

 

Brussels is pushing for something in order to disguise their chronic failings.  While they were masturbating themselves into ecstasy over the vision of a Federal Europe they forgot to ask if the people wanted it, or it would work.  

They were happy to overlook the deficit spending and the fudging of statistics, although they were well aware it was going on, because they wanted to keep the masses quiet while they got on a built their empire, with their 3,000 page reports translated into 6 languages.

Now there is a crisis brought about as a consequence of the system they constructed and they tell us the only option is to press on "as we are all in this together".  But never once does one of them say, "we screwed up", and so the people hate them even more.

A case in point is the Irish referendum has a voter turnout between 10 and 20%.  That tells you everything about the peoples' enthusiasm for the great project.

 

Thu, 05/31/2012 - 11:22 | 2479644 Lednbrass
Lednbrass's picture

Quite so.

I certainly hope Germany hangs tough on this and refuses to be blackmailed, worst case scenario for them (as someone above noted) they can at least say they tried and the Southern Europeans pushed them out.

Thu, 05/31/2012 - 13:21 | 2480287 Ropingdown
Ropingdown's picture

Am I the only one who finds it missleading for the headline to say "Brussels says" when it was just the ever-feckless Borroso mumbling something?  Borroso feels quite clever issuing all his proposals and ganging up with France, Spain, and Italy.  Yet, as a writer above says, that plays directly into Germany's hand.  Let's see, does Germany want to become weaker and poorer for the sake of Spain, Italy, Greece, Portugal, and France, or stronger by filling an essential niche if it integrates a bit more with with a few resource giants, and sells to China/Asia and the Americas?

Thu, 05/31/2012 - 17:16 | 2481204 harposox
harposox's picture

All of this nonsense is not some sort of accident. No one "screwed up." It's not a bug of the system, it's a FEATURE. The plan all along has been to bury sovereigns in debt until they break, so that a "solution" - further consolidation - can be forced.

Thu, 05/31/2012 - 10:35 | 2479403 WaEver
WaEver's picture

Dear Mark

If Germany gives in within this lifetime will you retire from finance and donate all your money to a good cause.....

Thu, 05/31/2012 - 10:36 | 2479408 Apostate2
Apostate2's picture

“I, like the arch fiend, bore a hell within me.” Thus spoke Frankenstien....

Thu, 05/31/2012 - 10:37 | 2479415 ptoemmes
Thu, 05/31/2012 - 10:38 | 2479416 Kreditanstalt
Kreditanstalt's picture

There's nothing wrong with any of this honesty.  The truth is always best.   You can only hide so long...

The water's really murky and unclear, but shapes are coming into view.  Soon we'll see who has been swimming naked. 

Thu, 05/31/2012 - 10:37 | 2479420 the 300000000th...
the 300000000th percent's picture

This is the beginning to the end of this false pretense of the illusion that humans are civilized and separate from the animal kingdom. Once "money" fails their will be a period of war, this is where we are headed. There will be blood

Thu, 05/31/2012 - 10:42 | 2479448 LawsofPhysics
LawsofPhysics's picture

Psst, I will let you in on a little secret,  there has always been blood, don't act so surprised just because it has never been on your doorstep.  Covert operations have never stopped, wake the fuck up.  

Thu, 05/31/2012 - 10:44 | 2479461 the 300000000th...
the 300000000th percent's picture

The "blood" I'm talking about is WW3 and i am awake mr angry pants. You havent seen blood yet.

Thu, 05/31/2012 - 10:56 | 2479521 Sophist Economicus
Sophist Economicus's picture

You havent seen blood yet.

 

Of course he has!   He's in the 'agriculture' business.  He sells garden tractors to housewives.  You should see the boo-boos they come in with!

Thu, 05/31/2012 - 10:55 | 2479518 spine001
spine001's picture

As demonstrated in Pakistan, the USA has and has had for a very long time the capacity to go anywhere and hit any target without the local military's even noticing until it is too late.

Also, if I was the biggest exporter of military technology, I'd put backdoors in all hardware/software/firmware that I sold to anybody that would allow me to disable that hardware from being used against me. Obviously, I wouldn't use that capability unless I must since I'd disable most of its usefulness for the future.

Would you do less?

Until next time,

Engineer

Thu, 05/31/2012 - 11:38 | 2479717 The Paucity of Hope
The Paucity of Hope's picture

I'm sure the Chinese thought exactly the same thing when they started manufacturing all of our computers.

Thu, 05/31/2012 - 16:43 | 2481112 mkkby
mkkby's picture

Funny thing is bankrupt nations with tiny little armies can't wage war.  It takes an available credit line to do that.  So no war.  Just lots of poverty and decay.  Long soup kitchens and pawn shops.

Thu, 05/31/2012 - 10:39 | 2479434 Ted Baker
Ted Baker's picture

MS IN THE SAME BUCKET AS NETFLIX AS IMPLIED VOL SKY ROCKETED TO 65-68% - OUCHHH!!!

Thu, 05/31/2012 - 10:39 | 2479435 duo
duo's picture

When you travel in Greece, you see that there is an unfinished upper floor of most farmhouses, and many apartments.  I was told that the property taxes on a finsished house were many times that of one under construction, so you added on brick at a time to the upper floor and told the tax man to come back next year.

I don't think that would play well in Germany.

Thu, 05/31/2012 - 10:45 | 2479474 Winston Churchill
Winston Churchill's picture

Old game.

Were doing that 30 yrs ago when I lived there.

Tax evasion/avoidance probably originated in Greece with

the first tax.

Thu, 05/31/2012 - 10:49 | 2479493 duo
duo's picture

Then there would be cinder block on top of the Parthenon.

Thu, 05/31/2012 - 11:06 | 2479569 spine001
spine001's picture

Any social/economic model will show you that governments increase taxes to the maximum they possibly can without going beyond the threshold that triggers a revolution against them. That is also part of human history.

Greeks historically have found it easier to avoid taxes than to revolt. Same thing happens in Countries like Argentina.

Governments reaction has been to create crazier and crazier tax systems that basically assume people are evading. For instance in Argentina, companies are forced to pay "Pressumed" gain taxes, where if you own a supermaket, if supermarkets are presumed by the government to make 20% return, you will be taxed on that gain even if you loose money, that regressive taxation system creates other distortions, since you cant start a business and sustain it until it becomes profitable if the government is taxing your capital away from you. Distortions feed on distortions, where governments get to the point of taxing every check that anybody with a checking account issues (i.e. Argentina), restrictions on inflow of capitals, restrictions of buying foreign currencies, etc. etc.

It becomes a war between a society that doesn't accept the level of taxation that is being arbitrarily imposed on it and a government that is not actually representing that society but their own selfish interests.

Greece and Argentina, and many other Countries are shinning examples of this situation, where a war is ongoing.

Until next time,

Engineer

Thu, 05/31/2012 - 10:41 | 2479441 Winston Smith 2009
Winston Smith 2009's picture

"If it is to be either Germany for the Germans or Germany for the citizens of Athens, make no mistake in your thinking; Berlin will prevail"

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

I wonder if they changed the lyrics at all after WWII.

Thu, 05/31/2012 - 10:42 | 2479457 Sudden Debt
Sudden Debt's picture

I'm bored.... I think I'm going for a ride over the rainbow on my Unicorn...

Thu, 05/31/2012 - 10:44 | 2479464 spine001
spine001's picture

"Berlin will prevail regardless of the outlying costs to either the nation or to the future of the Union that theoretically governs Europe"

If this is true, and Germany doesn't budge, then we will have WWIII in our lifetime...

Until next time,

Engineer

Thu, 05/31/2012 - 10:45 | 2479470 alien-IQ
alien-IQ's picture

Would somebody PLEASE invade Brussels?

No need to destroy the entire country. Just one building...ideally...when it's fully occupied.

This really shouldn't be that difficult.

Thu, 05/31/2012 - 10:55 | 2479517 ArrestBobRubin
ArrestBobRubin's picture

Thing is, the Germans and the other solvent Northeners would be nuts to finance "Eurobonds" And it's not like Europe's poor sisters are going to have luck rasing on a busted flush. They got nuttin'.

Germany will face East. What they'll do with Putin and Russia will amaze. It's already started. They need to cut the rest loose and let the bankster's eurozone wetdream and Rothschild funny-money "euro" go the way of the Velociraptor.

 

Thu, 05/31/2012 - 10:58 | 2479528 deerhunter
deerhunter's picture

Is private citizen gun ownership indeed illegal in England?  I don't get out much internationally.

Thu, 05/31/2012 - 11:16 | 2479623 DanDaley
DanDaley's picture

You can own very limitied and highly restricted and regulated quantities of stuff.  Let's put it this way: It ain't Idaho!

Thu, 05/31/2012 - 12:57 | 2480148 dizzyfingers
dizzyfingers's picture

Deerhunter: sort of but not really: http://www.bbc.co.uk/news/10220974

Thu, 05/31/2012 - 10:59 | 2479533 Instant Wealth
Instant Wealth's picture

Monsters ?

Ask Nietzsche.

The State is the coldest of all cold monsters.

Thu, 05/31/2012 - 11:02 | 2479553 oldgasII
oldgasII's picture

Has Belgium gotten around to forming a government yet?

Brussels is just a city in Belgium where a theatere troup of madmen performs and has only the power audience give them.   Something like Washington DC only worse since the Yakuza in DC can be voted out....eventually. 

Thu, 05/31/2012 - 11:05 | 2479566 Tic tock
Tic tock's picture

Could be the swiis pushing Brussels,

Thu, 05/31/2012 - 11:07 | 2479581 1eyedman
1eyedman's picture

looks like a perfect opportunity for the first ever pan-european tax idea....brussels taxes teh countries directly for funds to use for a fdic or eurobond concept, germany could like it, and it allows the piiigfsd to have hope of more money.....

Thu, 05/31/2012 - 11:08 | 2479583 Father Lucifer
Father Lucifer's picture

Like wife #2 always said "Paybacks a bitch".

Thu, 05/31/2012 - 11:10 | 2479600 Satan
Satan's picture

Eurobonds will NEVER happen. Too many legal hurdles to negotiate through...it would take years to organize and by that point the leaders of the northern nations would have been voted out by a mighty pissed off electorate.

...and just who, by the way, are going to be buying these Eurobombs?

Time to start dealing with reality.

FOR FUCK SAKES WAKE UP.

Thu, 05/31/2012 - 11:10 | 2479601 Satan
Satan's picture

Eurobonds will NEVER happen. Too many legal hurdles to negotiate through...it would take years to organize and by that point the leaders of the northern nations would have been voted out by a mighty pissed off electorate.

...and just who, by the way, are going to be buying these Eurobombs?

Time to start dealing with reality.

FOR FUCK SAKES WAKE UP.

Thu, 05/31/2012 - 11:11 | 2479603 Catullus
Catullus's picture

This was very predictable. Their solution to this mess is Global Central Banking and eventually global governance. It starts with these regional unions. They've known the current state was never to be the end state. The euro was only ever a tweener solution.

Some brilliant political party needs to hit the nuclear button and propose a return to the gold standard. The first country to return to it wins. Everyone will immediately purchase their currency, import prices will collapse and that country gets to buy the world's supply of stuff on the extremely cheap. It would be a wealth transfer like you'd never imagine. You can sell low import prices to a popular movement.

A return to the drachma is just renationalization of currency. It's never going to happen. You'd rather just default, get kicked out of the euro, and peg the currency to someone else.

Thu, 05/31/2012 - 11:16 | 2479625 Offthebeach
Offthebeach's picture

u

Thu, 05/31/2012 - 11:21 | 2479639 Peter K
Peter K's picture

The problem is that the Monster is insolvant. Who will pay the salaries and beni's?

Thu, 05/31/2012 - 11:31 | 2479670 fearsomepirate
fearsomepirate's picture

I am getting really sick of these stories, and here's why:

If a government can't deliberately destroy the citizens' money, uh, I mean, engage in expansive monetary policies, it can't run perpetual, arbitrary deficits, period, end. The math doesn't work out, because in order to have a perpetually expanding debt, you need to have a perpetually expending money supply.  And if you don't control the money supply, then the money supply controls your debt, period.  There is literally no way to have what EU countries want, which is the ability to run whatever deficits they want AND have an independent currency (that is, independent of their legislatures' spending).  It is NO different than any US state or even a household or corporation, all of which MUST balance their budgets eventually (or at least restrain the growth of their debt load to below the money supply growth). Seriously, look at states. The bluest states in the country are cutting spending and taking on public employee benefits because the gods of the copybook headings do not give a shit what party you belong to. If you don't have a printing press and you don't balance your books, they chop your balls off.

This single fact is completely missing from 100% of the pointy-headed analysis I see in the press.  There is NO way for a government to (a) not print money and (b) run whatever deficits it feels like whenever it feels like running them. Eurobonds won't do it. "Calming capital markets" won't do it. Bailouts won't do it. Europe is trying to achieve the impossible, which is allow the member states to keep spending as though they could inflate at will while simultaneously having everyone on a stable currency.

It's getting annoying because everyone is so fucking retarded.

Thu, 05/31/2012 - 11:34 | 2479686 hotrod
hotrod's picture

At least gas is cheaper.  Amazing what they gotta do to reduce commodity prices.  G-8 plan going accordingly.  Kiss and make up soon once strong dollar has done its' trick.

Thu, 05/31/2012 - 11:36 | 2479703 EclecticParrot
EclecticParrot's picture

The 11:30 bell is ringing "Ding-ding ding-ding", and the soothing female voice says: "The European Union is closing now."

Thu, 05/31/2012 - 11:41 | 2479721 Centurion9.41
Centurion9.41's picture

Reason China is not announcing its own stimulus is she needs the cred to step into the EU fire sale and cherry pick what she wants in the Club Med.

Here's the macro that's been playing out:

1st phase, well under way, US/Fed print to create illusion of security - i.e. nominal wealth.  China "helps" EU by buying time for EURO;  really just looking to see what fire sale items are really valuable.  China knows history, e.g. Japan's land buying spree in US during 80s was useless, if one does not have the ability to actually take physical possession of hard assets.

2nd phase, EU runs into human nature, can't print, collapses.  Collapse & nominal run in USD give Fed nominal to print against, i.e. O2 still flowing.  China has a choice, stimulate and create entitlement addicts like in the EU/US, or buy fire sale items and impose military backed austerity on its people.  Thus keeping children from becoming entitlement addicts, and keeping addicts alive to buy more of the material drugs.

3rd phase, China hits its human nature & Keynsian wall.  Thanks to informational dis-advantage, non-existent in the past, China's communist/mafia gov loses control of the situation and China literally tears itself apart like the FSU.  Meanwhile, the US has been muddling along, alive and a perceived "safe haven"... paying negative real interest on its loans.

US remains on the top of the economic, political and social food chain.

Ironically you can thank the moronic 99%ers and those who voted in the BO, for providing the looking glass that peered into the future and will result in the entitlement addicts known as Modernism & Progressivism losing political control.  

If you're under 40, start getting ready to buying every real asset, not "equities", you can get your hands on; when the recognition that the demographic entitlement wave is going to pass, when all these morons > http://youtu.be/6eS6isp7Uao realize their failure to actually pay for all the entitlements they voted to themselves will NOT be paid for by their grandchildren, THEN, when Cramer is sitting on the floor crying like a baby, then you walk up, wink, and hit his pathetic buy, buy, buy button.

Good hunting.

Thu, 05/31/2012 - 11:51 | 2479761 ElvisDog
ElvisDog's picture

Belgium telling Germany to issue Eurobonds is like the mailroom guy walking into the CEO's office and demanding a raise. Yeah, he can do it, but asking doesn't mean it's going to happen.

Thu, 05/31/2012 - 12:34 | 2479976 M.B. Drapier
M.B. Drapier's picture

Don't bet your life on "Germany" or the CDU winning this one. The German SDP oppposition supports Eurobonds, so Merkel may just end up getting one of the EU "democratic do-overs" that got rid of Berlusconi and Papandreou.

Also, where do convictions and ideology come into this? The PIIGS want the Germans to support their deficits; the Germans want the PIIGS to bail out the German banks for them. Looks like self-interest all the way to me.

Thu, 05/31/2012 - 13:11 | 2480230 rwe2late
rwe2late's picture

Mark Grant may be correct about rising nationalism, but will it be a reprise of the past?

Let me contrast two perspectives about the historical stage:

1) “Nations” are subsidizing other “nations”. “Germany” is being taken advantage of, and won’t longer tolerate it. This will lead to rising nationalism and increased strife between nations.

2) Owing allegiance only to themselves, a global elite few, (wielding power through global corporations, institutions, and associations) are taking advantage of everyone else, regardless of nation.

The first argument contends leaders gained power through, and owe allegiance to local populations, and their holding onto power is primarily based on local support.

The second argument contends leaders gained power through, and owe allegiance to elite sponsorship, and their holding onto power is primarily based on “international” acceptance and support (avoiding economic, financial, political sanctions, and backed by (military, MSM, etc.) assistance/intervention to maintain “stability” and to control alleged “terrorists”, militants, extremists, rebels, revolutionaries, radicals, dissidents, “criminals”, etc.

The first argument has historical precedent and will no doubt be operative to some extent. But the predominant movement will be explained by the second argument. The power and extent of global organizations has increased exponentially. Prior to WW1, it was mistakenly argued that the blood loyalties of the royalty would prevent the outbreak of war. However the royalty then still based their power locally, within the nation-state. Nowadays, the elite depend on and derive power from global organizations. National economic/political leaders are primarily beholden to sponsorship by a globally-connected elite and can only buck the system, the matrix, at great peril to themselves.

The time of independent nation-states is past. Though nationalism and jingoism may be manipulated to deflect attention away from the real problem, there are no longer individual nationalistic solutions. Germany will not go to war with France. The purpose of warfare will not, as in the past, be centered around obtaining territory or colonies for a “nation-state” - except in a limited extent when it serves the overall purpose of shock doctrine globalization.

Instead, their leaders (as in Japan, India, Poland etc.) will pursue militarization to participate in the global "anti-insurgent" war to achieve domination by international organizations headed by a global elite (of which their leaders wish to continue to belong).

Thu, 05/31/2012 - 13:45 | 2480422 dbTX
dbTX's picture

The Germans have shown the world time and again how accommodating they can be.

Thu, 05/31/2012 - 14:49 | 2480718 pissing_excellence
pissing_excellence's picture

Frau Merkel hahahaha, roll in zee hay

http://youtu.be/JZBqwHKm1LM

Thu, 05/31/2012 - 15:09 | 2480798 Joe A
Joe A's picture

Germany will kick the monster in the groin and it will crawl back with its tail between its legs.

Thu, 05/31/2012 - 15:34 | 2480893 Go Tribe
Go Tribe's picture

'Bout time. Germany started this mess and set up an EU that's unsustainable without fiscal collaboration and certainlyi without a banking system scheme that actually saves the banks. Bend over Merkel.

Thu, 05/31/2012 - 15:47 | 2480941 ivana
ivana's picture

fuck you brusells!

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