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The PIIGS Are Rapidly Losing Their Leverage Over Germany
While everyone awaits Germany's bowing to European pressure to share in the supposed wealth, the sad truth is that the clear line between core and peripheral economies is blurring every day as the lead-boots of Portugal, Spain, and Greece, drag 'until-recently high-fliers' Germany and France down to the bottom. The release this week of European Manufacturing Confidence data shows that all the nations are now contracting as core converges DOWN to periphery in a vicious circle. This is critical as suddenly the clock for a Euro-break-up is speeding up: every day that Germany delays to intervene and acquiesce bailout the PIIGS, the PIIGS implied-leverage declines as Germany is being dragged to their level - and thus 'unable' let alone 'unwilling' to share some burden.
At the end of December 2010, the difference between the weakest and strongest (Greece and Germany) manufacturing confidence was 35 points apart - easily the widest on record - as hope for a decoupling and strong core supporting the periphery prevailed.
Now that difference is down to a measly 12 points and rather notably all the euro-are members are now negative.
Charts: Bloomberg
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....and yet the Euro remains strong, stupid sheep.
You are quite clearly forgetting draghi has promised to do everything possible, the fact he has failed every other time means this time he'll suceed, markets love tryers.
Mittenwalde about to sue Germany for trillion euro debt from 1562. Mittenwalde's claim on the debt is PERFECTLY legal.
This is the dark swan that will sink the globalist pipedream.
Mittenwalde will collect the money and break away from the Eurozone, declaring itself an independent city-state.
every day that Germany delays to intervene and acquiesce bailout the PIIGS, the PIIGS implied-leverage declines as Germany is being dragged to their level
I keep thinking about MBIA, ACA Capital and the rest. Eventually, guarantors meet the same fate as their clients.
The best part is that the debt is denominated in gold and silver.
Very true. Since the debt was issued in GOLD guilders, it must also be paid back with GOLD!
Those medieval contracts tended to have clauses which made town mayors collateral too.
In a Biflationary spiral every one ends up on the floor save for those with big capital
Is Knight Capital what you consider one of "those with big capital"?
yes, so were all city/county officials and citizens. To be offered as endentured servants until the debt was repaid. It seemed to actually work best with unarmed/uneducated societies.
Actually it also went both ways. If the rich burghers lent to clerics and aristocrats, the loans were also expected to be secured by their person - in reality mostly some unimportant relative or underling.
Funny, you use the word "legal" as if it meant something real.
Simply put, EVERYTHING is subjective. Especially when it is all based upon the ideology of "might is right."
Oh, and neither Mittenwalde or Germany exist, but rather they are just labels for different groups of individuals with shared fantasies.
Correct. Moreover, in the absence of any rule of laws and contract, possession is the fucking law.
From what I understand, they have been trying to collect on the debt for years and have a paper trail with receipts going back for centuries. This is brilliant! It's like the old Woody Allen joke that intellectuals are like rats as they eat their own kind.
OT somewhat, perhaps someone can answer a question I've always had. A German municipal city hall is a Rathause. A beer hall under said city hall is a Ratskeller. Are these expressions, ie the diminutive of German politicians, from where we derive the term "rat"?
Seems an appropriate question these days.
No it comes from council/counsel.
I am however fascinated by the 'ratking' phenomenon which could be an appropriate metaphor for our situation.
The German word "rat" has the same indogermanic roots like the English "read". It meant "reading the future out of the runes and draw a decission". In English this word became "reading" in a general sense. In German the word is still pretty close to it´s original meaning. The English "rat" is a "ratte" in German and pronounced differently.
They will not see a penny. Simple as that.
Uhm, Germany did not exist back in 1562.
Germany exists since the year 843.
https://en.wikipedia.org/wiki/Treaty_of_Verdun
The Mittenwalde claim was settled in June, the little commune was loaned a gulden from 1539 for six weeks. It was displayed in the local museum and returned to the Bode Museum in Berline. The Mayor Pfeifer said it was all over, and there is no trillion Euros outstanding. He added in a Press statement that his commune had no debts, unlike Berlin today.
how many troops has mittenwalde?
how many troops has the esm?
enough said.
Time for some "technical issues" to happen on the other side of the Atlantic.
I wonder who is next.
probably us
http://www.ecb.int/ecb/orga/decisions/govc/html/index.en.html
Governor, Nationale Bank van België/Banque Nationale de Belgique
President, Deutsche Bundesbank
Governor, Central Bank of Ireland
Governor, Bank of Greece
Governor, Banco de España
Governor, Eesti Pank
Governor, Banque de France
Governor, Banca d'Italia
Governor, Central Bank of Cyprus
Governor, Banque centrale du Luxembourg
Governor, Central Bank of Malta
President, De Nederlandsche Bank
Governor, Oesterreichische Nationalbank
Governor, Banco de Portugal
Governor, Banka Slovenije
Governor, Národná banka Slovenska
Governor, Suomen Pankki - Finlands Bank
At least the Snorg Tees camel toe girl is back! See, if you just take the time to look around, there is always something good to be found.
they have some natural, sexy models for sure. my fave is Ashley Pridgen. Mmmmmmm.
Dammit.. my pages are only showing "Happy Birthday Obama" No camel toes anywhere???
I'm so tired of hitting refresh to get that crap off my screen. I hope it cost them to load it each time, they should have to pay me to look at it.
Free on-tap porn is just two clicks away, man!
Has anyone clicked on the Tuc and Wes broke chicks add? I've been worried that I'll click on it and find out they're lady-boys or something.
I wonder if I can still get a Spider-Man beach towel.
http://www.traddr.com/video/traders-life-24-7-the-cvx-trade
Germany is in a codependent relationship with dysfunctional Euro members. The only two options for Germany are to leave the Euro or stay in and be dragged down to the common dysfunctional level and then get beaten by experience.
Exactly right.
Germany is the enabler of the club Med holiday resort.
Tough love is the only answer.
Germany will not be able to save the PIIGS. Germany might have enough money to save itself and that's it. It's time to break up the EU. These nations need to try to save themselves on their own. It's time for the powers that be in these countries to "man up" and do what needs to be done. But will they? They know what they have to do, but these leaders lack the courage and/or will to do so. If they can't do it then they deserve to crash and burn. Idiots!!
I just flip the chart upside down and everything is good.
I like to turn it sideways and visualize how we're muddling-through.
But it's also very possible Germany wants to own the PIIGS. A lot easier than going to war.
Germany in truth was simply less worse off than neighbors. As far as debt to GDP, deficits and banking issues, there was never lots of room for maneuvering. They were in it like everyone else. And the economy being heavily export dependent didn't help
But the good thing is that the Tylers have started writing about it. That Germany of today is only a hollow promise, a country with vast ghettos, decaying infrastructure and a completely failed immigration policy.
Good luck with that.
just turn up the "melting pot" heat another notch, emeril?
One month until S Gorog's 'three months to save Europe' D-day. I can't wait!
Don't count Germany out, it's way too early. I stay awake, waiting for their rabbit out of the hat trick.
(correct thread, this time, once in a lifetime...).
debt bomb:
http://www.youtube.com/watch?v=GXcLVDhS8fM
I would like to suggest ZeroHedge to write an article on the true state of the AAA countries of Germany, Netherlands and Finland. There would be a lot to write about so people would realize that even these countries have utterly failed with their finances. The window dressing still works, but that is pretty much it.
I think the MSM and even ZH is giving too much attention to the Club Med, while they should review the Club AAA.
Btw, I read today that since Merkozy is past, the new Power-Duo is Hollande and Monti, HoMo.
european aaa countries are actually in a much better shape than the us, japan and england which are basically the ugliest pigs of all!
they will get their attention as well.
only stupid people believe that there is something like manufacturing in greece.
stupid statistics from stupid eurocrats.
Germany exists since the year 843.
https://en.wikipedia.org/wiki/Treaty_of_Verdun
Obama's fault
Angela Merkel: "Squeal like a PIIGS!!!"
Deutchland Uber Alles bitchez!! ;}