This page has been archived and commenting is disabled.

Presenting Deutsche Bank's Pitchbook To The ECB To Go "All In"

Tyler Durden's picture


Say you are the CEO of Deutsche Bank (whoever that may be these days following Ackermann's stunner of an announcement yesterday), and you have so much dirty laundry that if the market so much as looks at you funny, you know very well it is game over the second you have to engage in reactionary damage control. After all your assets are 84% if not more, of total German GDP and there is no way that you can be bailed out by one country alone, even if that country is the only one that is not a complete Banana republic. So what do you do? Why you tell your bankers to write the best, most persuasive pitch book they can come up with, addressed to none other than Goldman Sachs alum and ECB head, Mario Draghi, and you tell him the truth: "Europe has hit its Tipping Point" and it is now or never. In other words, in 51 slides, your task is to convince the ECB that unless they terminally break away with their traditional stance of not monetizing, not only they, but the entire European status quo will cease existing. And that's precisely what you do. Behold: "The Tipping Point - Time To Call The ECB" - Deutsche Bank's definitive attempt to encapsulate the Mutual Assured Destruction that we are "certainly" all going to suffer, unless the ECB prints, and prints, and prints. The bottom line, you would tell Draghi, is "do nothing, and pull the cord now; or do something, risk hyperinflation which may or may not come, but at least extend and pretend for a few years." And one wonders why Crude is about to pass $100...

Cutting straight to the chase, here is Deutsche Bank's summary conclusion on why the Tipping Point is here:

  • Markets have lost confidence in the EU's institutional structures and framework
  • Italy represents a critical new and dangerous phase of the crisis (the "Tipping Point")
  • Italy and Spain have € 300 bn and € 120 bn of 2012 issuance (€ 930 billion combined over next 3 years)
    • Italian sovereign bond market is broken
  • The "stakes" have never been higher (including the fate of the Euro itself)
  • Politics has become “the” obstacle: All 5 "peripheral" countries have had leadership change in 2011
  • The economy (recession) has become “the” unknown variable
  • Continued Euro bank sector de-leveraging likely under almost any scenario (over $2 trillion estimate for next 18 months)
  • Longer term, external (current account) deficits matter more than fiscal deficits

And here is what DB thinks has to be done right now.

  • More progress on credible fiscal austerity (especially Italy)
  • Rapid resolution of the EMU's original sin - lack of fiscal integration (Dec 9 EU Summit meeting)
  • Restore confidence to re-open bank funding markets
  • Time to expedite the "Grand Plan"
    • Larger Greece debt restructuring
    • Bank capital raises and debt guarantees
    • Additional bail-out funds for Greece
  • Time to call the ECB
    • Investor reluctance on EFSF € 1 trillion leverage plan
    • Ineffectiveness of ECB monetary policy transmission mechanism to keep bond yields low
    • Adjustment away from current bond purchase program needed (away from temporary, limited and sterilized)
    • ECB should announce large, targeted buying plan (i.e. € 200 bn over 12 months)

Or advice (as always): buy. gold. now. (and not the MF Global paper version, please)

Takeaways from the SNAFU are hardly surprising:


But the risks remain considerable:

And returning to a much discussed topic - why has the EUR held up so strong?

But there is plenty of downside risk to come potentially:

 DB Tipping Point Nov 2011 FINAL


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 11/15/2011 - 15:06 | 1879835 Commander Cody
Commander Cody's picture

The rats keep begging for their spiked cheese knowing that sooner or later its gonna kill 'em.

Tue, 11/15/2011 - 15:14 | 1879863 gmrpeabody
gmrpeabody's picture

"And one wonders why Crude is about to pass $100..."

Amen, brother.

Tue, 11/15/2011 - 15:23 | 1879894 Mike2756
Mike2756's picture

Looks like that $100 oil isn't sitting too well with mr. market.

Tue, 11/15/2011 - 15:37 | 1879931 BaBaBouy
BaBaBouy's picture

Print Yo Bitchez, Print ...


And Run To Pappy, eh, GOLDie ...

Tue, 11/15/2011 - 15:49 | 1879958 BaBaBouy
BaBaBouy's picture


  Fed's Fisher repeats call to downsize big banks



AND no-ones listening.

Hehehe, hell they are piling on more TRILLIONS of OTC Toxic SHIT as we speak.


Same SHIT as 2008, except its not GWB, butt The Bummah that will bail out all the banks again.

Tue, 11/15/2011 - 16:05 | 1880012 DoChenRollingBearing
DoChenRollingBearing's picture

Tyler above himself just said:

buy. gold. now. 

Tue, 11/15/2011 - 16:56 | 1880198 Texas Ginslinger
Texas Ginslinger's picture

Silver bullion or gold, right...???????

Tue, 11/15/2011 - 15:36 | 1879933 GeneMarchbanks
GeneMarchbanks's picture

$100 will be crossed this week followed by a sovereign downgrade(can't say which one) then all bets are off... literally. All this begging for € QE makes me want to put on some Lehman 2.0 trades... just to be contrarian. That's right, Hendry style bitchez.

Tue, 11/15/2011 - 15:56 | 1879938 Hard1
Hard1's picture

Translation of the reaserch piece (from German):  Dear all at the ECB:   As you are well aware, we, the german banks, as well as our french counterparts hold so much italian debt that we are insolvent as of a couple figures ago.   If you don't monetize this debt now, you will be personally responsible for our bankruptcy.



DB management.

PS We are sending this letter through our reaserch arm to mantain the formalities.

PS2: According to our calculations, if you don't act now US banks will indirectly go bust based on the exposure they have to us and our aforementioned french colleagues.  You will be also responsible for that.

Tue, 11/15/2011 - 15:27 | 1879908 Eally Ucked
Eally Ucked's picture

It passed 100$ long ago, just thanks to Canadian Gov. you have it so cheap. If they decide to sell it West and East by building pipelines to the left and right you'll enjoy much higher prices. But it takes few years. For now Canadians play old time idiots which is is consistent with their gov mind set. 

Tue, 11/15/2011 - 15:33 | 1879925 SheepDog-One
SheepDog-One's picture

All it takes for oil to go up $50-$100 overnite is 1 sunken carrier in the Straits. We're living in times now where thats entirely likely.

Tue, 11/15/2011 - 15:43 | 1879951 hunglow
hunglow's picture

Much easier to turn a tanker into a submarine.

Tue, 11/15/2011 - 15:44 | 1879954 SheepDog-One
SheepDog-One's picture

Sure even easier.

Tue, 11/15/2011 - 16:50 | 1880178 High Plains Drifter
High Plains Drifter's picture

so easy to with sunburn sea skimming anti ship missles..........

Tue, 11/15/2011 - 15:40 | 1879945 Oh regional Indian
Oh regional Indian's picture

Very interesting, this oil subsidy gimmickery. PPP is a joke. A total joke.  And agro subs in USSA.

Anyways, on topic, very interesting, Ackerman is bieng replaced by two people? And one of them is an Indian.

"Ackermann will step down as chief executive as planned in May, to be succeeded by Juergen Fitschen and Anshu Jain."

What is with all these Indians in high finance positions?



Mandelbrot Magic


Tue, 11/15/2011 - 16:00 | 1879999 topcallingtroll
topcallingtroll's picture

You guys work cheap and are good at math.

The first generation or two out of poverty think computers or engineering or medicine is a good career. Families quicklie realize that is just another form of wage slavery.

The next couple generations with dads and moms who are engineers and doctors will skip the bullshit and go into finance/money related operations.

Tue, 11/15/2011 - 16:15 | 1880046 Eally Ucked
Eally Ucked's picture

Bravo! The American way, not only the fittest will survive but costs will be cut to minimum.

Tue, 11/15/2011 - 15:16 | 1879867 nope-1004
nope-1004's picture

The banksters have 2 choices:

Print -> inflate -> continue pillaging -> disintegrate


Do nothing -> relinquish control -> give up.

Kinda obvious what they'll do.


Tue, 11/15/2011 - 16:28 | 1880080 NotApplicable
NotApplicable's picture

Don't forget, ZIRP4EVA. Otherwise, the pillaging quickly consumes itself.

ZIRP is the can made for kicking!

Tue, 11/15/2011 - 16:36 | 1880117 vast-dom
vast-dom's picture


Tue, 11/15/2011 - 17:07 | 1880236 Caviar Emptor
Caviar Emptor's picture

Get it yet? They want ECB (the public) to become the bag holders for their worthless crap. Just in time for Xmas too

Tue, 11/15/2011 - 21:42 | 1880990 philipat
philipat's picture

DB (Douche Bag?) knows it can't appeal to Merkel, because she wants to get re-elected. So instead they appael to the un-elected transnational ECB. Isn't democracy a wonderful thing?

PS. It's almost bonus time so would you please move quickly.

Tue, 11/15/2011 - 15:51 | 1879841 CPL
CPL's picture

So this is why the market bounced like a rubber ball on no news and no volume.


Thank goodness our betters are here to aid us in our time of need.


If anyone cares, FAZ and TZA are at their entry a the markets are stupid.

Tue, 11/15/2011 - 15:09 | 1879844 The Axe
The Axe's picture

Hate to go off topic, but has anyone else been watching the big divergence in the price of Nat.Gas and crude.  Natural Gas is falling all year in price and just hit a 52 week low, yet still a lot of very rich natural gas stocks out there. This is the biggest spread I have seen between wti and ung in forever...?  strange

Tue, 11/15/2011 - 15:32 | 1879921 Mike2756
Mike2756's picture

You're right, sell uso and buy ung?

Tue, 11/15/2011 - 16:16 | 1880048 kaiserhoff
kaiserhoff's picture

Not surprising at all.  Supply of NG is essentially unlimited in North America.  Pubama and the tree huggers are fighting a losing colonial war against the conversion, because they prefer windmills and unicorn farts for fuel.

Tue, 11/15/2011 - 15:09 | 1879845 TheFourthStooge-ing
TheFourthStooge-ing's picture

Hey, if it worked for Hank Paulson (and he's not in jail) ...


Tue, 11/15/2011 - 15:13 | 1879848 Sudden Debt
Sudden Debt's picture

Just a few more seconds...
..... ....

I'm save, my family is save and I'll move out if the shit hits the fan. Somewhere warm. Azia.

Tue, 11/15/2011 - 16:19 | 1880051 kaiserhoff
kaiserhoff's picture

Save Russian Jews.  Win valuable prizes;)

I've always wanted to see the South Pacific...

Tue, 11/15/2011 - 15:23 | 1879849 GeneMarchbanks
GeneMarchbanks's picture

Leeroy Jenkins.

'Or advice (as always): buy. gold. now. (and not the MF Global paper version, please)'

Speaking of MF, Jesse has been all over it like a fat kid on cake.

Via Jesse Cafe:


'MF Global has the wafting odour of scandal that keeps on intensifying.

I cannot wait to find out the whole truth. But that might have to wait for kingdom come, if it is in the same justice delivery system as the silver manipulation inquiry.'

Tue, 11/15/2011 - 16:31 | 1880094 NotApplicable
NotApplicable's picture

I wonder how the take-down of MFG has affected the depletion of physical from the Comex?

Tue, 11/15/2011 - 15:13 | 1879852 Ponzi Unit
Ponzi Unit's picture

And gold still trades under 1900+

WTF? When will JPM quit this shit?

And when will the CME scumbags step up? Even if their obligation is not statutory they have a moral responsibility, and an enlightened self-interest in making good on MFG. Do they really want to kill their own market? Are they secretly unable to fulfill the obligation?

This country fucking deserves to go right down the drain.

Tue, 11/15/2011 - 15:20 | 1879882 nope-1004
nope-1004's picture

WTF? When will JPM quit this shit?

Never.  Don't you see what's happening?  They've got one of their own now as the PM of Italy, and the new leader of Greece is also an ex ECB stool pusher.

This is how priates do it in the 21st century.  You are seeing international theft and confiscation of sovereign assets right before your eyes, and no one gives a shit.  Quaddaffi, Berlusconi, etc.... next will be Sarkozy.  Mark my words.  Then Merkel.  Then ALL of the Eurozone gold will be "missing", just in time for a new currency.



Tue, 11/15/2011 - 15:25 | 1879898 SheepDog-One
SheepDog-One's picture

YEA exactly and meanwhile everyone just sits waiting for the next rumor driven ramp up....WTF it was nice knowin ya, human race....guess you had a pretty good run anyway.

Tue, 11/15/2011 - 15:28 | 1879910 JoBob
JoBob's picture



correctly spelled as "yeah"


At least we can leave a literate legacy.

Tue, 11/15/2011 - 15:31 | 1879917 SheepDog-One
SheepDog-One's picture

Right, cant even get that right oh well are we really THAT much better than the Dodo bird?

Tue, 11/15/2011 - 15:34 | 1879928 s2man
s2man's picture

Pet peeve of mine, too.  But he could have meant the Old English yea, which means yes.

fwiw, the other one is yay = hooray, which often gets typed as yea.

Tue, 11/15/2011 - 15:57 | 1879985 Ponzi Unit
Ponzi Unit's picture

all right, never -- maybe better phrasing would have been:

"When will PM longs overwhelm JPM's capacity to control price?

Tue, 11/15/2011 - 17:01 | 1880220 Bicycle Repairman
Bicycle Repairman's picture

As DB put it: "Politics has become “the” obstacle: All 5 "peripheral" countries have had leadership change in 2011"

So the gold won't be the only thing missing from the Eurozone.

Tue, 11/15/2011 - 15:59 | 1879911 s2man
s2man's picture

LMAO.  Moral responsibility.  That's a good one. 

Still laughing.  Oh geez.  ahahahaha. Oh, man.  I can't stop laughing. Oh, I"m crying. oh. oh. oh. oh.  hahahahahahaha.  Ahahahaha. I can't see to type.

Okay.  I think I'm over it.  Thought about TEOTWAWKI to stop the laughter.  Phew.

Do I really have to ask if you think they have any morals?

Edit: Yes, they do have a moral responsibility.  Not making fun of your post.  Just the thought of the CME or bankers having morals struck me as sooo funny.  I haven't laughed like that in a long time.  Thanks.

Tue, 11/15/2011 - 16:10 | 1880003 Ponzi Unit
Ponzi Unit's picture

My comment goes to their traditional role - they are expected to perform. The fact that they don't suggests short-sighted sociopathic corporate response. CME was once a non-profit mutual deal. Bigger question is of their recklessness. Covering the bets is in their interest. Why don't they protect their franchise? Can they?

I worked on the Merc before it went public, long before it became the CME Group, fuckball. Save your adolescent laughter. Ask yourself, if you are capable of reflection: What happens to CME's business plan if investor confidence is destroyed?

Tue, 11/15/2011 - 16:37 | 1880119 NotApplicable
NotApplicable's picture

What makes you believe that TPTB who are ushering in the "death of Capitalism" have any plans for a commodity futures market?

One man's franchise is another's honeypot, to be eaten until gone.

The only markets that will survive are the black markets. All others will be targets for confiscation by criminal cartels hiding behind various acronyms.

Tue, 11/15/2011 - 17:05 | 1880230 Bicycle Repairman
Bicycle Repairman's picture

If the markets become and venue for "politics" and work against the aims of the state (i.e. the state's owners) they will be manipulated and, if necessary, terminated.

Tue, 11/15/2011 - 15:32 | 1879920 Hearst
Hearst's picture

Has the CME lowered Silver or Gold margin requirements since their blitz of raises earlier this year due to 'volitility' they initiated??

Tue, 11/15/2011 - 15:58 | 1879987 Gief Gold Plox
Gief Gold Plox's picture

Yes! Yes, they have indeed. /unicorns

Tue, 11/15/2011 - 16:01 | 1880001 css1971
css1971's picture

Say thank you to Mr. Dimon.


Tue, 11/15/2011 - 15:11 | 1879855 ItsNotYouItsMe
ItsNotYouItsMe's picture
  • ECB should announce large, targeted buying plan (i.e. € 200 bn over 12 months)
  • I like their definition of 'large' ... enough to put in a headline but nothing really worth while.

    Of course, if this were a TAX INCREASE, it would be classified as nothing or a "minimal" or "nominal" increase in taxes ... BUT ... spending/printing purposes, this classifies as a huge or 'large' plan!


    Tue, 11/15/2011 - 15:12 | 1879856 terryfuckwit
    terryfuckwit's picture

    perhaps a picture of a clock might help drive the message home

    Tue, 11/15/2011 - 15:26 | 1879902 Elwood P Suggins
    Elwood P Suggins's picture

    Only if it's a cuckoo clock!

    Tue, 11/15/2011 - 15:43 | 1879942 SheepDog-One
    SheepDog-One's picture

    A picture of a clock means 'OK you guys, this time we're super serial! See we got a scary clock'.

    Personally, I would have put some dynamite taped to the clock.

    Tue, 11/15/2011 - 15:13 | 1879858 sabra1
    sabra1's picture

    0 Rumours only on week-ends.

    Tue, 11/15/2011 - 15:14 | 1879862 Ag1761
    Ag1761's picture

    I now have so much physical silver I am truly stuffed if I have to run somewhere in a hurry. Suggestions please for safe storage! I may only have a week or two to dig....

    Tue, 11/15/2011 - 15:23 | 1879896 Commander Cody
    Commander Cody's picture

    Buy a truck and take it with you.

    Tue, 11/15/2011 - 15:30 | 1879916 Commander Cody
    Commander Cody's picture

    On the other hand, steal or rent a truck and take it with you.  Don't forget the beans, guns and ammo.

    Tue, 11/15/2011 - 17:28 | 1880299 CrashisOptimistic
    CrashisOptimistic's picture

    At $200 oil, the truck won't be much good.

    Tue, 11/15/2011 - 15:58 | 1879989 s2man
    s2man's picture

    Congrats on your stash.

    One article today recommended taking physical possesion of your PM's (duh!), noting that a safe or safety deposit box was a small price to pay compared to trusting someone else to watch your PM's for you.  They forgot to mention a hole cost nothing but a little time. ;-)

    I couldn't resist.  I literally put an X over some of my silver.  Discrete, but yep, X marks the spot.  I keep a little in the safe as a decoy.

    Suggestions?  In a framed house, there are lots of 1-1/2" gaps where things can be stashed and covered with more "framing".  Hollow legs of furniture work for stashing rolled up cash and other small items. Electrical outlet boxes. Stereo speakers...

    There are several books on hiding things on Amazon.

    Tue, 11/15/2011 - 16:27 | 1880076 Nigh Eve
    Nigh Eve's picture


    Rolled-up cash vs fire ?

    Be sure the furniture is non-combustible.

    Nevertheless, the rest of the advice sounds good.

    Tue, 11/15/2011 - 16:29 | 1880084 Ag1761
    Ag1761's picture

    Thanks s2man, that just got me looking. I will NOT be storing any stash with a bank or safe deposit co. Anywhere that they can order to open the doors I think is out.

    That leaves the home and burying the stuff. I can't believe it, there are fucking videos on the tube about burying silver etc and best places to hide things. It's opened up a whole new world for me now.

    Tue, 11/15/2011 - 16:34 | 1880105 Financial_Guard...
    Financial_Guardian_Angel's picture

    There is only one firm rule on stashing your shiny and other valuable stuff--use multiple locations.

    If its all in your home and that bad boy burns to the ground, your fiat paper as well as other stores of wealth are gone. Your silver will not look the same either. Remember--multiple locations, multiple family members, and never more than 20% in one place. This way even if your brother-in-law sticks you, 80% is still intact.

    1. Fireproof safe

    2. Dig a hole in your yard

    3. Trusted family member's home

    4. Safe deposit box

    5. Another hole somewhere in the woods

    Tue, 11/15/2011 - 16:51 | 1880181 Potemkin Villag...
    Potemkin Village Idiot's picture

    I'll hold it for you...

    I'll write you some nice lightweight paper notes so that you can come & redeem it anytime you want...

    Sound good? 

    Tue, 11/15/2011 - 15:14 | 1879865 EZT
    EZT's picture

    sounds like a shit storm,but hey ES moving up...


    If the print we all know what will happen to WTI and Brent, catch 22..

    Tue, 11/15/2011 - 15:14 | 1879866 e-man
    e-man's picture

    And here is what DB thinks has to be done right now.

    • More progress on credible drug/alcohol austerity (especially Italy)
    • Rapid resolution of the EMU's original sin - lack of drug/alcohol use integration (Dec 9 EU Summit meeting)
    • Restore confidence to re-open heroin markets
    • Time to expedite the "Grand Plan"
      • Larger Greece drug/alcohol restructuring
      • Heroin raises and alcohol guarantees
      • Additional heroin for Greece
    • Time to call the ECB
      • Investor reluctance on new heroin leverage plan
      • Ineffectiveness of ECB heroin policy transmission mechanism to keep drug/alcohol yields low
      • Adjustment away from current heroin program needed (away from temporary, limited and sterilized)
      • ECB should announce large, targeted buying plan (i.e. € 200 bn of heroin over 12 months)
    Tue, 11/15/2011 - 15:17 | 1879872 Ag1761
    Ag1761's picture

    Whats the current spread on Afghan T's

    Tue, 11/15/2011 - 15:15 | 1879868 devo
    devo's picture

    Great article.

    Scary how much that sounds like Paulson circa 2008.

    Tue, 11/15/2011 - 15:29 | 1879912 SheepDog-One
    SheepDog-One's picture

    Similar to Paulsons 'Hand over the checkbook or you get tanks in the streets' speech...and they didnt even need the big market plunge to wheel it out this time either. 

    Tue, 11/15/2011 - 15:47 | 1879962 devo
    devo's picture

    I know, right? Ironic thing is there will be tanks in the street anyway.

    Tue, 11/15/2011 - 15:16 | 1879870 semperfi
    semperfi's picture

    INFLATE  or  DIE

    Which one do you think The Global Bankster Syndicate will chose, hmmm?   My bet (with a shitload of silver & gold) is that they will choose not to commit suicide. 

    Tue, 11/15/2011 - 15:16 | 1879871 SheepDog-One
    SheepDog-One's picture


    Tue, 11/15/2011 - 15:18 | 1879875 Comay Mierda
    Comay Mierda's picture

    I'm sure Deutsche Bank would like to get bailed out by some of that newly printed money.  gotta keep paying those bonuses!

    Tue, 11/15/2011 - 16:30 | 1880088 Nigh Eve
    Nigh Eve's picture

    ...and remember, this is not DB's first dose of help from the gubmint.  

    They were also a big beneficiary of the AIG bailout.

    Tue, 11/15/2011 - 15:22 | 1879877 SheepDog-One
    SheepDog-One's picture

    Step 3- 'Restore confidence in banks'....

    WTF thats easy! Peaches and cake! Hell they got this in the bag, boys!

    Tue, 11/15/2011 - 15:20 | 1879881 Mister Ponzi
    Mister Ponzi's picture

    Zimbabwe, bitchez! Mario Draghi as Dr. Gideon Gono and Jose Barroso as Robert Mugabe.

    Tue, 11/15/2011 - 15:22 | 1879884 devo
    devo's picture

    25-50% gold in case they print; the rest in cash in case they don't. Short the hell out of equities if they near the yearly high (~1350ish) via puts, which hopefully will have lower IV by that point.

    I don't see another viable strategy. Do this and sleep well.

    Tue, 11/15/2011 - 16:09 | 1880025 Gief Gold Plox
    Gief Gold Plox's picture

    Sound strategy I believe. Thank you.

    Tue, 11/15/2011 - 15:21 | 1879885 KandiRaverHipster
    KandiRaverHipster's picture

    funny, i was just in frankfurt.  i took about 13 pictures of the deutsche bank building.  this was after i ate about 13 bratwurts.

    Tue, 11/15/2011 - 15:27 | 1879906 tim73
    tim73's picture

    Doener Kebab is the national German food now :)

    Tue, 11/15/2011 - 15:26 | 1879887 JR
    JR's picture

    Ah, the European tyrants now admire the US “system.”

    The central banks, after saddling sovereign nations with massive red ink and threat of national bankruptcy as they manipulate then into wars and into debt, now are looking to “super-committees” to override “polarized” dissent by elected representatives as they steer both the US and EU toward a one-world central bank and a single currency.

    Mario Monti, in a symposium he spoke at just a few weeks ago sponsored by the Polish presidency and the Bureau of European Policy Advisors ( the European Commission’s in-house think tank), lavished praise on the US Congress’s so-called “super committee”, according to an FT Brussels Blog piece, Monti Looks to Washington Super Committee?

    Said the Goldman-connected Italian Prime Minister Monti:

    “By the way, in the US – a country which, of course, has a degree of lack of [ability] to arrive at concrete solutions, relative to which the European Union recently is a relatively smooth decision-making machine – you know, this recent invention of the supercommittee in Congress I find fascinating, because they are trying to create, in that hugely bipolar context some premises for a bipartisan agreement.” 

    Says Brussels Blog: “The tough work of getting consensus amidst polarised political debates is a topic he comes back to time and again at the October symposium, and as we point out in the newspaper story, cutting pensions (a sacred cow for the centre-left) while raising taxes on the wealthy (a show-stopper for the centre-right) was specifically mentioned as a potential ‘package deal’ for Italy.”

    And the continued "smooth' operations of asset-stripping and lying schemes by the banksters continues merrily along.

    Tue, 11/15/2011 - 17:24 | 1880283 RockyRacoon
    RockyRacoon's picture

    I could think of a few "concrete solutions" and most of them would involve a body of deep water.   That stuff don't float.

    Tue, 11/15/2011 - 16:46 | 1879890 Canucklehead
    Canucklehead's picture

    If the ECB prints, who backs the losses?  Germany has cut their check.  There won't be any more.  Any additional losses will be the result of nationalizing the German banking system after they have blown up.

    This all reminds me of the scene in the movie Blazing Saddles where the "Nigger Gets It".

    It's good to see that Europe is finally "Getting It".  Now is the time to pull the trigger.

    Tue, 11/15/2011 - 15:25 | 1879899 Mister Ponzi
    Mister Ponzi's picture

    "Ineffectiveness of current ECB monetary policy transmission mechanisms to keep bond yields low"


    What a clown! Bond yields are low, look at the German curve. It is spreads that are high - and for good reason.

    Tue, 11/15/2011 - 15:26 | 1879903 bluehorsesandal
    bluehorsesandal's picture

    perfect timing for a "wake up" call!

    Why not making the call in the last year... 

    Banksters are panicking, all across the globe

    Ron Paul at the top would make it perfect

    Tue, 11/15/2011 - 15:27 | 1879905 SheepDog-One
    SheepDog-One's picture

    Only sticking point to this masterful plan will be the $200/barrel oil....but no worries we should be fully involved in WW3 in a couple months anyway so who gives a shit...smoke em if ya get em boys. Extra Hopium for me for sure.

    Tue, 11/15/2011 - 16:21 | 1880064 s2man
    s2man's picture


    Tue, 11/15/2011 - 15:29 | 1879914 SwingForce
    SwingForce's picture

    And for my next trick, I will pull a rabbit from my ass.

    Tue, 11/15/2011 - 16:10 | 1880031 sabra1
    sabra1's picture

    hey! that's the same rabbit that came out of janet napolitano's ass! butts bunny!!!

    Tue, 11/15/2011 - 15:33 | 1879924 walküre
    walküre's picture

    well, well, well....

    the cabal just ousted Ackerman

    Ackerman was probably a strong key defender of the "no print" position

    can WB7 please incorporate this image that is featuring today

    the cabal of course is going to stop at nothing and once again, the cabal will break Germany's neck

    fool me once, shame on me

    try and fool me twice, a bullet between your eyes

    Tue, 11/15/2011 - 15:35 | 1879930 Dick Darlington
    Dick Darlington's picture

    So fitting that the London's most ridiculous "buy periphery, the countries are fine AND solvent" -cheerleader, Douche Bank govie bond trading desk, is getting the support from their "analysts". Throughout the whole year the same cheerleaders have told over and over again to buy peripheral sovereign bonds "coz they cheap, man" and now the same idiots are screaming for stealth monetization. Same broken minds playing the same broken record: bail me out and fuck everyone else.

    Maybe it would be the high time to recognice that the project to build an EU-dictatorship has failed miserably. No double down anymore to save the elite's wet day dream. There's no winners, only losers. And printing money won't solve a damn thing. If it would solve everything then why do we work anymore? Let's just lay back, print money and spend it! Too bad there would have to be someone actually producing something for others to buy but since the order is coming from Douche Bank we can just ignore this nasty little nuisance right...

    Tue, 11/15/2011 - 15:38 | 1879936 williambanzai7
    williambanzai7's picture


    Tue, 11/15/2011 - 15:52 | 1879977 walküre
    walküre's picture

    check out this image

    looks like someone drew Maginot Lines?

    Tue, 11/15/2011 - 16:43 | 1880143 Sudden Debt
    Sudden Debt's picture

    WB7, YOu're the man! :)


    Nice work again!

    Tue, 11/15/2011 - 15:39 | 1879941 JR
    JR's picture

    More Goldman Sachs connections in Europe…

    Bloomberg ( Novembet 15, 2011) Deutsche Bank AG (DBK) Chief Executive Officer Josef Ackermann abandoned a plan to become supervisory board chairman in 2012 because Europe’s debt crisis hasn’t given him the time to win shareholder support.

    Deutsche Bank will instead nominate Paul Achleitner, the finance chief of insurer Allianz SE (ALV), the Frankfurt-based lender said in a statement yesterday. Ackermann will step down as chief executive as planned in May, to be succeeded by Juergen Fitschen and Anshu Jain….


    Dr. Paul M. L. Achleitner has been a Member of the Board of Management of Allianz SE since January 2000 and serves as its Head of Group Finance. Dr. Achleitner serves as a Director of Future Unit of Oesterreichische Nationalbank. He served as Vice President, Mergers & Acquisitions of Goldman Sachs & Co., New York, from 1988 to 1989. He was a partner of Goldman Sachs Group from 1994 to 1999. Dr. Achleitner served as Boston Manager, Strategy Consulting of Bain & Co. from ...\


    1984 - 1988

    Bain & Co., Boston: Manager, strategic management consulting

    1988 - 1989

    Goldman Sachs & Co., New York: Vice President, Mergers & Acquisitions

    1989 - 1994

    Goldman Sachs International, London: Executive Director, Investment Banking

    1994 - 1999

    Goldman Sachs & Co. OHG, Frankfurt: Managing Director (and partner, Goldman Sachs Group)

    Since 2000

    CFO at Allianz SE

    Tue, 11/15/2011 - 15:59 | 1879994 valley chick
    valley chick's picture

    dang, they do not even hide this shit anymore. 

    Tue, 11/15/2011 - 16:11 | 1880035 xcehn
    xcehn's picture

    GS is the ring leader of the global bankster conspiracy to enslave the masses.

    Tue, 11/15/2011 - 16:27 | 1880077 s2man
    s2man's picture

    Insert link to clip of "rogue" trader saying GS runs the world.

    Tue, 11/15/2011 - 15:40 | 1879943 ebworthen
    ebworthen's picture

    Is this a good time to buy equities?

    </sarc off>

    Tue, 11/15/2011 - 15:44 | 1879953 lizzy36
    lizzy36's picture

    This is the only thing i needed to look at:

    Italian 10-year yields closed at 7.134%, up from 5.8% on 14 October and 5.03% on 15 August.
    Spanish 10-year yields closed at 6.36%, up from 5.25% on 14 October and 5.014% on 15 August
    Belgian 10-year yields closed at 4.91%, up from 4.41% on 14 October and 4.05% on 15 August
    French 10-year yields closed at 3.69%, up from 3.14% on 14 October and 2.96% on 15 August
    Austrian 10-year yields closed at 3.62%, up from 3.09% on 14 October and 2.833% on 15 August
    Netherland 10-year yields closed at 2.41%, down from 2.62% on 14 October and 2.67% on 15 August

    Tue, 11/15/2011 - 15:50 | 1879968 ebworthen
    ebworthen's picture


    Just wait until that snake slithers it's way across the Atlantic to the U.S.S.A.; what will the home markets look like when a 30-year creeps back up to 5, 6, 7%?

    Can you say "contagion"?

    Can you say "hyperinflation"?

    The printing presses are humming as we speak, and they are getting ready for 24 hour operations at the keyboards and databases.

    On our way soon:

    Gallon of milk = $5

    Gallon of gas = $7

    Tue, 11/15/2011 - 16:08 | 1880020 sabra1
    sabra1's picture

    how much for a burrito!

    Tue, 11/15/2011 - 16:25 | 1880059 ebworthen
    ebworthen's picture

    The price will stay the same, but the size will be 33% smaller (kind of like hamburger "sliders"). 

    Taco Bell instruction cards to be reprinted and re-laminated, one dollop of goo instead of two.  This is bullish for printers.

    Reference a "half-gallon" of ice cream which went to 1.75 quarts, and is now appearing at 1.50 quarts.

    A "bakers dozen" will be 10 eggs or biscuits, instead of 13.

    Tue, 11/15/2011 - 16:29 | 1880086 s2man
    s2man's picture

    The administration just announced they have officially redefined the word, dozen. 

    In other news, they have lopped two decimal places off of all currency.  100 now = 1. 

    Tue, 11/15/2011 - 16:31 | 1880096 Dr. Gonzo
    Dr. Gonzo's picture

    Only one dollop of imitation meat goo at Taco Bell? The people will not be happy.  

    Tue, 11/15/2011 - 17:29 | 1880302 RockyRacoon
    RockyRacoon's picture

    A "bakers dozen" will be 10 eggs...

    Wonder how Tyson is coming along on that breeding of midget chickens?   One thing that hasn't changed (or can be changed) is the size of the lowly egg.   I guess they could sell us the "pre-cracked" ones in cartons, like milk, and they could reduce the ounces of liquid eggs in those?   Rest assured the high-powered think tanks are working on this problem.

    Tue, 11/15/2011 - 15:56 | 1879984 Dick Darlington
    Dick Darlington's picture

    I'll add to this the fact that since Aug 4th when ECB started monetizing Italian and Spanish gubbmint bonds, the Institution of zee price stabeeleetee has printed roughly 100 billion euros. And before that when they tried to save the world by monetizing Greece, Portugal and Ireland, ECB printed roughly 80 billion. Ecb has also monetized 60 billion of covered bonds issued by banks and now started new program of 40 billion. And from Lizzy's list You can see how BRILLIANTLY the monetization works!

    Tue, 11/15/2011 - 15:47 | 1879959 bernorange
    bernorange's picture

    physical gold bitchez

    Tue, 11/15/2011 - 15:57 | 1879988 DoChenRollingBearing
    DoChenRollingBearing's picture

    + $55,000 bitchez

    Tue, 11/15/2011 - 15:47 | 1879961 wstrub
    wstrub's picture

    Playing out exactly as scripted..............GS taking over the world

    Tue, 11/15/2011 - 15:52 | 1879973 wstrub
    wstrub's picture

    MF Global taken out to the woodshed by Corzine....I think he knew what he was doing, why and the ramifications of his actions.  It's in the plan.

    Tue, 11/15/2011 - 15:55 | 1879981 tim73
    tim73's picture

    Going to be interesting race between US and Eurozone new debts. Either choose "safer for now" US debt but with issuance of new debt 5-10 times more per month than in Eurozone or "less safe" Eurozone debt.

    Tue, 11/15/2011 - 15:58 | 1879990 SDRII
    SDRII's picture

    Germany and Ruissia initiate Nord Stream pipleine

    Energy + Industrial base + Dmarc = ?

    Tue, 11/15/2011 - 16:03 | 1880002 Village Smithy
    Village Smithy's picture

    "And one wonders why crude is about to pass $100 per barrel" is the key IMHO. We the sheeple have no money to bid up the price of anything nor do we have any power to demand higher wages. There will not be inflation in the true definition of the term. Instead we will see the wealthy pour their money into liquid assts like oil, gold, Russel futures and other commodities. These rising prices will crush the global economy and what is left of this recovery. I believe that inspite of his retoric, Bernanke saw this happening during QE2 and that is why he turned off the taps. He fucked the rest of the world and now its time to return the favour. Thank you Central Bankers everywhere, it's been a lovely fuckin' war. 

    Tue, 11/15/2011 - 16:06 | 1880016 sabra1
    sabra1's picture

    350m vs 500 politicians! i don't see a problem unless, everyone stays home with drapes closed, lights off!

    Tue, 11/15/2011 - 16:02 | 1880006 clawfoot tub
    clawfoot tub's picture

    There is not a more fitting name for a ponzi bank: DB.

    Tue, 11/15/2011 - 16:10 | 1880030 chaartist
    chaartist's picture

    So Deutsche tells us, they are unable to to control risk if only one fails. If it was so easy Greece would be out months ago. Counter-party risk in this derivative net is out of control and lots of high leverage funds are not under state umbrela so there is no way they could unwind this in orderly manner, thats why printing is only solution because there is no solution for them

    Tue, 11/15/2011 - 16:18 | 1880055 Ponzi Unit
    Ponzi Unit's picture

    good post

    Tue, 11/15/2011 - 16:14 | 1880040 tony bonn
    tony bonn's picture

    the ghost of punk financial terrorist hank paulson is back - follow my instructions or watch the world blow up...the only thing left out was the threat of martial law....

    fuck the banksters - let the world blow up....

    Tue, 11/15/2011 - 16:19 | 1880050 trader1
    trader1's picture  ;)


    b/c you can never get enough powerpoint and the paper it's printed on....

    Tue, 11/15/2011 - 16:24 | 1880068 Dr. Gonzo
    Dr. Gonzo's picture

    Dow Industrials seem to love the price of oil $100+ these days. They must be running their business on wind and solar in the Obama era...and their customers too.

    Tue, 11/15/2011 - 16:30 | 1880072 THE DORK OF CORK
    THE DORK OF CORK's picture

    Sure even Dorks knew the ECB destroyed the currency when it refused to turn the huge amount of euro bank bonds into equity - it was just a matter of time.

    In the event of non destruction of this crap they will have to monetize if they want both their precious Euro and their precious banks.

    Otherwise you have no currency to act as a medium of exchange and therefore you get a commerce / life support collapse.

    I am just surprised it took so fucking long.

    Its all about the stock and flows baby 

     - they destroyed real physical capital to sustain their "investments" just long enough to escape.

    The Bastards

    Tue, 11/15/2011 - 17:42 | 1880347 JR
    JR's picture

    It’s Bonnie and Clyde all over again, the central bankers are so trapped in their high risk game of financial corruption, they’re making so much easy money, they’ve committed so many crimes clawing their way to the top that they don’t even understand they’re hurtling toward destruction.

    They have become so bloated, they’re like the courtiers at the Versailles palace of Louis XVI, so pleasure committed that they’re unable to see beyond the multibillions of largesse that encases them – corrupted, as at Louis’ court, with gambling, court etiquette, festivals, games, hunting, and other “amusements”… their current destinies dependent upon their ability to please Goldman, the Rothschilds, et al.

    Louis brought in a financial expert when France couldn’t pay her war debts, and it looked as if the country was going bankrupt, who suggested the King needed to cut back on the perks the profligate nobles were getting.  Louis agreed. But Marie Antoinette and her family said No and talked the king into ignoring the message and getting rid of the messenger.

    That’s these people. They don’t know that they're headed for the rocks, or perhaps the hangman’s noose.

    As Charles Hugh Smith says, it is either going to break or they’re going to print money, and then it’s going to break.

    Tue, 11/15/2011 - 16:31 | 1880093 tim73
    tim73's picture

    We need cocaine backed currency, 50000 dollars per kilo for end users (in NYC). Steady supply year around everywhere, cut-throat competition is keeping prices relatively low and you can't even snort gold in your bunker! 

    Tue, 11/15/2011 - 16:44 | 1880147 The trend is yo...
    The trend is your friend's picture

    be prepared for the drop in the price of gold....i just bought some

    Tue, 11/15/2011 - 17:35 | 1880319 DoChenRollingBearing
    DoChenRollingBearing's picture

    Yeah, that happens to me about 80% of the time too.  Short term.

    Tue, 11/15/2011 - 16:48 | 1880166 ZeroPoint
    ZeroPoint's picture

    Translation: Deutsche Bank is about to collapse.

    Tue, 11/15/2011 - 17:06 | 1880234 undercover brother
    undercover brother's picture

    This ridiculous plan will never come off no matter what Draghi's boys think because Jens Weidmann of the Bundesbank thankfully isn't a Bernanke desciple, nor is he a politician. 

    Tue, 11/15/2011 - 17:12 | 1880251 terryfuckwit
    terryfuckwit's picture

    hope you are correct sir

    Tue, 11/15/2011 - 17:15 | 1880258 jmcadg
    jmcadg's picture

    €200 billion, is that all. Come on let's have it US stylee at least half a trillion, gotta get some trillion in there somehow.

    Tue, 11/15/2011 - 17:17 | 1880268 earleflorida
    earleflorida's picture

    russian set to enter "WTO" -

    europe's lifeline to energy,... so who cares about deficits?

    Tue, 11/15/2011 - 17:44 | 1880351 xcehn
    xcehn's picture

    Historic German hyperinflation for dummies:

    Tue, 11/15/2011 - 18:24 | 1880557 TheJokingJollyRoger
    TheJokingJollyRoger's picture

    When will the United States have it's credit downgraded again after all of this?

    Tue, 11/15/2011 - 20:23 | 1880949 Its_the_economy...
    Its_the_economy_stupid's picture

    Got my Washington Rats on speed dial. Usually I send an email, but a good and hearfelt felt rant on voice mail does me wonders and tells them I'm serious. Tonites rant: If you shift private bankster ponzi paper onto the backs of the American people via the Fed, mortgage giants, or any other POS scheme, I will work my fingers bloody volunteering to defeat your next bid for re-election. Oh, and please call me for clarifications if needed.

    Tue, 11/15/2011 - 21:35 | 1881092 grg
    grg's picture

    Why are germans (apart from DB) so reluctant to let the ECB print money, when that would debase the euro and benefit their exports?


    Do NOT follow this link or you will be banned from the site!