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More Gruel, More Gruel

Tyler Durden's picture




 

From Mark Grant, author of Out of the Box

Pathos

It is really rather pathetic. The Prime Minister of Spain today called for a deposit guarantee fund, pleaded for the EU to take over the budget of Spain and said Spain would cede its sovereignty over its banks. This is all just one thing; a cry for money and money at any cost. The poor fellow has obviously lost whatever self-respect that he had and is behaving no differently than some street urchin begging for alms. What can be seen from this kind of behavior is the desperate state that Spain is in and it is reflected in his desperate pleas for help. I would speculate that so much has been hidden and so many balance sheets falsified that Spain has suddenly found itself in a sea of their own making which could be termed, “Dire Straits.” When Rajoy termed the bailout for Spain as a “Victory for Europe” I knew that he had left “sense and sensibility” behind and headed into the land of Don Quixote where windmills were imagined to be giants and fantasy had replaced reality. The problem is, unlike the creation of Miguel Cervantes, this guy is the Prime Minister of Spain and not some aged senior chasing after the Knights Templar in his later years.

More Gruel Please Sir

I am reminded of that famous scene in Oliver where a second serving is asked for and the commotion that it causes. The European Union can now be viewed as three distinct groups. The bailed-out countries that are trying to renegotiate their agreements, pleading for more money, and asking for more integration in the hopes of getting more gruel. This is all characterized by some grand plan of course so that they can con the wealthier nations out of their money under the banner of the Three Musketeers, “All for one and one for all” which really just means; “give me your money so I can live just like you do and thank you so much.” Then the second group is the Brussels Sprouts which want to take over power from all of the national governments and run Europe out of Belgium and wave flags, have parades and dine on Beluga caviar accompanied by splits of champagne. They believe their own rhetoric and think that Europe is going to be some commonality where the people in Berlin and the people in Lisbon have the exact same standard of living and I think there will be a revolution in Germany before that is allowed to happen. Then the final category is Germany, the Netherlands, Finland and Austria which everyone else wants to pay for this enterprise as Germany passes out just enough to maintain control and makes certain well defined noises to keep everyone begging for more while they refuse to partake in any of the nonsense bandied about by the poorer nations as they are not going to destroy their own economy for the sake of some grand scheme that would raise their cost of funding to an average of Europe while lowering their standard of living to a mean of Madrid and Athens; it is just not going to happen and no delusions should be maintained.

It is not that hard to figure out, this dis-jointed Europe, just watch what the Germans actually do and don’t pay too much attention to what they say; that is the trick of it. The whole thing is a double con game but the people with the money, as in the rest of life, are who is in control and not the beggars with outstretched hands hanging about on the corner. Spain has fallen, Italy is under siege and France wants to join the have-nots in the hope that Germany will pay for all of the promises made by Hollande to the French people during their election. As Italy falters France may be the next nation to come under closer inspection especially if Hollande proceeds to implement more government spending and the lowering of the retirement age along with his other Socialist programs. Again I remind you to pay little attention to the rhetoric but watch what Germany does and that will set the program for the future. They can vote all they want in Brussels and draw up all kinds of grand plans they desire but if Germany does not want to accept them then it is little more than semi-polite conversation over well-dressed cucumber sandwiches in various capital of Europe.

June 17

This is the day of the elections in Greece as Democracy rears its ungainly head. One way or another; the outcome is likely to be unsettling. If the leftist party wins then a game of chicken will ensue with Germany doing a down and dirty calculation on how much it will cost them and offering just that much and no more. Then the young leader of the new Greek government will probably overplay his hand and Germany will turn off the monetary spigot. This will then lead to a second game of chicken where Germany tries to get Greece to leave as Greece dares them to throw them out. The rhetoric will get quite testy and we will all watch to see who blinks first. Greece will regain the spotlight but the cost of the performance will be high. There is $1.3 trillion riding on this bet which is the total amount of Greece’s unpaid bills and a default will cause havoc past what I think the Germans will calculate. Europe seems to believe its own jargon these days and I fully expect any EU offers to miss the mark by a wide margin and then the demons will leap from the Trojan horse.

 

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Wed, 06/13/2012 - 07:55 | 2520843 Colombian Gringo
Colombian Gringo's picture

"When Rajoy termed the bailout for Spain as a “Victory for Europe” I knew that he had left “sense and sensibility” behind and headed into the land of Don Quixote where windmills were imagined to be giants and fantasy had replaced reality. The problem is, unlike the creation of Miguel Cervantes, this guy is the Prime Minister of Spain and not some aged senior chasing after the Knights Templar in his later years."

 

 

 Rajoy may be the PM of Spain, but in reality he is a clerk sent to deliver the butchers bills to the spanish people by the banksters, nothing more. 

Wed, 06/13/2012 - 08:16 | 2520889 ThirdWorldDude
ThirdWorldDude's picture

Spanish miners couldn't agree more, it seems this time they'll be the ones to start the revolution.

http://www.rt.com/news/spanish-miners-clashes-cuts-646/

Wed, 06/13/2012 - 09:30 | 2521218 kikkoman
kikkoman's picture

If there's anyone ballsy enough to stand up, I'd put my money on the Spaniards (or the French, depending on what's on the menu for them).

Revolution in Germany? What you're seeing is more than the usual angst, but the common people are way too confused and divided (and disarmed for that matter) that I don't see it happen anytime soon. I see a lot of anger all across the comments pages, currently the focus is on the islamists who are seen as a more direct and tangible threat. One pot that could boil over in the near future IMO.

More likely is some sort of revolt against the "energy revolution" (or Merkel's "Great Transformation", sounds very Mao-esque, doesn't it?) by both the energy and heavy industries sector. That the government isn't backing away from its plans makes me think me Merkel is shitting in her pantsuit, hoping she can keep at least this one lie afloat until the elections. 

 

It always looks different (even sensible?) from the outside, but everything's on full retard over here.

Wed, 06/13/2012 - 11:45 | 2521967 Broomer
Broomer's picture

More likely is some sort of revolt against the "energy revolution" (or Merkel's "Great Transformation", sounds very Mao-esque, doesn't it?) by both the energy and heavy industries sector. That the government isn't backing away from its plans makes me think me Merkel is shitting in her pantsuit, hoping she can keep at least this one lie afloat until the elections.

German government is shitting its pants because of that report made by their military on peak oil.

There are two things the Germans fear: running out of fuel (they lost WW2 because of this) and lack of democracy.

Wed, 06/13/2012 - 08:39 | 2520967 The trend is yo...
The trend is your friend's picture

a month ago Rajoy stated they hadno need for any money

Yesterday Monti of Italy stated the same exact thing.

The Author is not following the script. It will be 4 weeks before the italian's need their 100, 200. 300, 500 ....whatever billion

Wed, 06/13/2012 - 07:55 | 2520851 GeneMarchbanks
GeneMarchbanks's picture

To call your "analysis" superficial, would be to give you too much credit.

Wed, 06/13/2012 - 07:59 | 2520859 LULZBank
LULZBank's picture

Hes there just to fill in space while the Tylers come up with something useful. :D

Wed, 06/13/2012 - 07:56 | 2520852 BeetleBailey
BeetleBailey's picture

Spain went "big Green" (windmills, solar, "green" jobs which overpaid).....during the last PM regime...

This doofus is pulling a "reverse Obama" by blaming them (in this case, justified).

Nonetheless, ceding over sovereignty to the EU is a watershed.

Meirda~

Wed, 06/13/2012 - 08:06 | 2520872 boogerbently
boogerbently's picture

Chasing after the Knights Templar might not be so far off.

Wed, 06/13/2012 - 09:03 | 2521072 Offthebeach
Offthebeach's picture

Bailout with "Templar Bonds" based upon yet unfounded Templar gold. ( Library research already underway with the very best people. Expedition ship keel going to be laid in Greek shipyard with rugged Irish design and recruiting Portuguese crew and very experienced Italian cruise ship captain. )

Wed, 06/13/2012 - 07:56 | 2520853 Alejandrito
Alejandrito's picture

Mariano Rajoy letter to Barroso:"a centralized finance manager, in addition to being the manager of European debt"
Definitely the Spanish prime minister has entered panic.

Wed, 06/13/2012 - 07:57 | 2520855 saturn
saturn's picture

goal achieved: human society irreversibly addicted to money.

Wed, 06/13/2012 - 08:37 | 2520962 eddiebe
eddiebe's picture

Read 'addicted to debt.'

Wed, 06/13/2012 - 09:46 | 2521309 tabasco71
tabasco71's picture

Really...?  I'm certainly not addicted to debt.  I have been conditioned to lust for money as if it were a drug and the corresponding come-down is an extra balance on the credit card, but I don't wake up every day hurting to increase my debt (maybe I'm old-fashioned/too responsible?)

I'm actually weaning off the gear - deleveraging.

Tried quitting cold turkey, couldn't. Had to enter into a rehab programme

It's going well - I aim to be clean by end of 2012.

Wed, 06/13/2012 - 07:59 | 2520857 LULZBank
LULZBank's picture

I think the Greek govt. acted more gracefully in their begging than the Spanish.

Wed, 06/13/2012 - 08:06 | 2520871 youngman
youngman's picture

"Victory for Europe"...that makes me sick..is this what it really comes too...

Wed, 06/13/2012 - 08:09 | 2520878 boogerbently
boogerbently's picture

Better them than us (USA).

Did you see the Yahoo poll?

About 98% of the voters said the USA should help EU financially...."under NO circumstances."

Wed, 06/13/2012 - 08:19 | 2520886 GetZeeGold
GetZeeGold's picture

 

 

I was basking in the glorious glow of Victory........then my sparkler went out.

 

Oh well......it was fun while it lasted.

 

Wed, 06/13/2012 - 08:08 | 2520874 poldark
poldark's picture

I am looking forward to seeing what the German auditors find when they audit the books.

Wed, 06/13/2012 - 09:48 | 2521317 ssp2s
ssp2s's picture

Remember that episode of The Simpsons when the power plant is sold to the Germans...

Wed, 06/13/2012 - 08:10 | 2520879 aleph0
aleph0's picture

LOL ... "Brussels Sprouts" 

One wonders what would have become of Belgium if they hadn't created the EU .. in Brussels.
I remember the early 80's where 76% was the top tax rate in Belium .. while the country was effectively BK.
.... do they now have a Govt. BTW ?
Sort of curious as to what would happen to Belgium if the EU disappeared !
;-)

Wed, 06/13/2012 - 08:17 | 2520891 ZeroAvatar
ZeroAvatar's picture

In just a few years from now, this will read:  "The United States was crying (to China) for 'money at any cost, like some street urchin begging for alms.  So much was hidden, so many balance sheets falsified, that the United States found itself in a sea of it's own making, which could be termed, Dire Straits."

Wed, 06/13/2012 - 09:09 | 2521100 Doubleguns
Doubleguns's picture

touche and plus 100.

Wed, 06/13/2012 - 08:22 | 2520908 Vegetius
Vegetius's picture

Well Spain needs to raise Money how to do this? Well we must turn to FATHER TED!

Father Dougal: I know! Well lure them into a giant bingo game!
Father Ted: And how are we going to do that?
Father Dougal: We'll print up some bingo cards on our printing press and... oh.
Father Ted: Yes, it's the lack of a printing press that lets us down there. Or bingo balls. Or a PA system. Or in fact, any bingo paraphernalia at all.
Father Dougal: Damn. So near, yet so far.

Sounds very similar to the Spanish and EU solutions

Wed, 06/13/2012 - 08:23 | 2520912 akansemper
akansemper's picture

what i don't understand is that this whole issue can cost germany up to 1 trillion when all goes wrong. Just paying off the PIGS will add up to 500 billion. So why would they let this all go wrong?

Wed, 06/13/2012 - 09:17 | 2521137 GCT
GCT's picture

If Germany stays in this no matter what, they too will just default on the debt.  We are all broke.  Now if they were smart they will just leave the Euro as they are a producer/ manufacturer based economy.  Sure they will be screwed for a while but they are producers and can sell to other places.

Germans do make fine products.

Wed, 06/13/2012 - 08:37 | 2520960 azzhatter
azzhatter's picture

I'm quite sure Herman Von Rompoy could run Spain better. He should be installed as Prime Bank Clerk

Wed, 06/13/2012 - 08:44 | 2520982 eddiebe
eddiebe's picture

So Deutsche bank etc. gets Spains gold and choice real estate and Spaniards get sardines in rancid olive oil. The plan is working perfectly.

Wed, 06/13/2012 - 08:46 | 2520987 CommunityStandard
CommunityStandard's picture

Except we're supposed to feel sorry for Oliver Twist, but I don't feel sorry for Spain.  Stay strong, Germany.

Wed, 06/13/2012 - 08:49 | 2520999 tom a taxpayer
tom a taxpayer's picture

Is it the demons or the chickens coming home to roost who will leap from the Trojan horse?

Wed, 06/13/2012 - 08:55 | 2521029 eddiebe
eddiebe's picture

Which ever it may be, I can smell the stench from here.

Wed, 06/13/2012 - 08:57 | 2521046 Vince Clortho
Vince Clortho's picture

The Prime Minister of Spain is a tool of the Globalist Kleptos.

Wed, 06/13/2012 - 09:27 | 2521201 shovelhead
shovelhead's picture

This can all work out.

If Krugmans aliens show up looking for overpriced condos on Costa del Sol and little ugly Fiats.

Wed, 06/13/2012 - 10:25 | 2521549 theTribster
theTribster's picture

This is exactly how it is supposed to work out, that's why Rajoy and Monti were put there. They are there to make sure that Spain and Italy lose their independence completely, this is true for all members f the EU - this is the end game. If Greece is lucky they exit as fast as they can...

This was obvious and predictable.

Wed, 06/13/2012 - 19:09 | 2523807 Tunga
Tunga's picture

Uganda buys Spain. 

 

That was easy.

 

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