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The Real Tragedy Of The Euro

Tyler Durden's picture


The realization that the European debacle is much more an issue of political harmonization and Empire-building than one of pure economic band-aid provision should be clear to any- and every-one who has followed the words and deeds of the various European factions for the past year or two. Yesterday, we discussed the dithering and competing camps but what is really critical is to understand how we got here and what the underlying social and political wills are among all of the players. There is no better summation of the formation, driving forces, and tensions among European leaders and central bankers than Phillip Bagus' 'Tragedy Of The Euro'. From the simple divergence of the dual visions of Europe with northern libertarians and southern socialists to the Bundesbank's fearsome reputation for showing up weak governments, Bagus offers a clear perspective on why the EMU is a 'self-destroying' and 'conflict-aggregating' system but counters that with some views on what the outcome will be and how French governmental pressure remains the cornerstone of the establishment of a European Empire for better or more likely for worse.

The Tragedy of the Euro explains why the Eurosystem almost collapsed in May 2010 when the Greek sovereign debt crisis spread to other PIIGS countries.

It explains how the system creates money out of nothing and creates perverse incentives for governments that lead to its own destruction. Without a reform, the Eurosystem is doomed for failure.

Beside the European monetary institutions, the book also describes the political interests behind the euro. The single currency was an important strategical tool in the plan of European socialists. It served to get rid of the Bundesbank and the DM that served as brakes on European inflation.

In his conclusion, Bagus points out that:

The institutional setup of the EMU has been an economic disaster. The Euro is a political project; political interests have brought the European currency forward on its grievous way and have been clashing over it as a result. And economic arguments launched to disguise the true agenda behind the Euro have failed to convince the general population of its advantages.


The Euro has succeeded in serving as a vehicle for centralization in Europe and for the French government’s goal of establishing a European Empire under its control—curbing the influence of the German state.

...and in response to what the future will bring for a system whose incentives destine it for self-destruction, he sees three possibilities: first, the system will break up; second, the Stability and Growth Pact (SGP) will be reformed and finally enforced; and third, incentives toward having higher deficits than other countries will lead to a pronounced transfer union. In the current crisis, it seems that governments are hovering between options 2 and 3 - what scenario will finally play out is anyone's guess and with Greece's March deadline looming, perhaps now is a good time to read and understand what is really at stake for the Eurozone.


The book has been generously released on pdf by The Mises Institute:



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Fri, 12/30/2011 - 13:16 | 2021912 Mongo
Mongo's picture

Tyler, just admit it, at least we got a good laugh out of the Euro... especially thanks to WilliamBanzai7

Fri, 12/30/2011 - 13:38 | 2021962 Silver Bug
Silver Bug's picture

Good article, I will quite surprised if the Euro survives in its current form through next year.

Fri, 12/30/2011 - 14:01 | 2022012 Oh regional Indian
Oh regional Indian's picture

In this whacky world we inhabit, a Political Union would have been much easier to hold than this crazy monetary one (especially with England getting Hanging Chad status, very suspicious, all the benefit, none of the price?)...

No major war action till march, so looks like politics and money will continue to have center-stage for a little while longer.



Fri, 12/30/2011 - 14:41 | 2022096 MillionDollarBonus_
MillionDollarBonus_'s picture

The tragedy of the Euro has been a complete lack of leadership and sound governance. Europe has been blessed with one of the most iconic leaders of our time, President Herman Van Rompuy, who has worked tirelessly to promote fiscal and monetary union. However, his efforts have been met with childish discourse and indecision from national leaders and cold indifference from the European citizenry. This saga has gone from tragic to pathetic, and I pity those who still fail to show any interest in creating a truly united Europe.

Fri, 12/30/2011 - 14:48 | 2022116 Azannoth
Azannoth's picture

Makes me wanna PUKE everytime I glance over what you write(I guess I won't do that anymore)

Fri, 12/30/2011 - 15:29 | 2022235 BaBaBouy
BaBaBouy's picture

GRANDICH Raises His GOLD Wager Offer ...


Having not thoroughly spooked all the horses with that first bet, Grandich has today raised the ante, directing all of his ire at Nadler and challenging him to another bet, now $2 million, that gold will hit $2100 before it hits $1000:

I hereby challenge Mr. Nadler again, this time raising my wager to $2 million — still not anyone’s “life savings.” I’ll increase the bet’s target price by $100: that gold will see $2,100 before $1,000. The winnings are to be donated to charity.

It’s a shame that someone can continue to be so wrong without being questioned. When Mr. Nadler resorts to misrepresenting me, it’s time for him to put up or shut up.

If Mr. Nadler’s forecasts have been so profitable to him and his readers, why wouldn’t he accept this challenge?

I have arranged for the law firm of Lomurro, Davison, Eastman & Munoz of Freehold, New Jersey, to hold the wagered funds in trust. My offer to Nadler is good until 12:01 a.m. ET January 9, 2012. And since my side of the wager is derived from my personal funds, Mr. Nadler’s $2 million match to my wager shall also be certified as deriving from his personal funds or funds derived from the assets of his immediate family.

Fri, 12/30/2011 - 15:45 | 2022238 BaBaBouy
BaBaBouy's picture

"" Europe has been blessed with one of the most iconic leaders of our time, President Herman Van Rompuy, who has worked tirelessly to promote fiscal and monetary union. ""


Ha Ha Ha Ha Ha, NOW Thats Fucking Funny...


(Who Says Tyler's Site Is Always TOO Serious...)

Fri, 12/30/2011 - 16:03 | 2022310 Dugald
Dugald's picture

AFTER Jan 9 1000 ???????

Fri, 12/30/2011 - 15:33 | 2022239 macholatte
macholatte's picture

MDB is really Keith Olberman


Fri, 12/30/2011 - 15:21 | 2022214 WonderDawg
WonderDawg's picture

Van Rumpoy is a clown that looks like a pedophile with a drinking problem.

Fri, 12/30/2011 - 17:20 | 2022502 jacekp5
jacekp5's picture

MillionDollarBonus_ hahahahhahahah U just made my day :) hahhahahahahahah

Fri, 12/30/2011 - 18:03 | 2022639 bigerny
bigerny's picture

Makes me feel good just to stick a red arrow up his ass.

Fri, 12/30/2011 - 14:11 | 2022030 AnAnonymous
AnAnonymous's picture

Good article, I will quite surprised if the Euro survives in its current form through next year.


Be surprised right now because US citizens love surprise. So instead of being disappointed by your own sham, be happy right now.

It will be no surprise the Euro is still next year.

Fri, 12/30/2011 - 23:42 | 2023163 Schmuck Raker
Schmuck Raker's picture

I can't believe someone's actually paying you to post this stuff.

Fri, 12/30/2011 - 15:10 | 2022182 Potemkin Villag...
Potemkin Village Idiot's picture

I will quite surprised if the Euro survives in its current form through next year

I'll take the other side of that bet (with a hedge)...

The Euro is (was) always a NWO construct... It represented the first stepping stone to a "one world currency"... TPTB aren't going to let that dream die without a fight...

So THE HEDGE I refer to is where you say "in its current form"...

As all PUSSY 'elites' are prone to do, they NEVER ADMIT FAILURE... They just strip out what parts appear to still work, package it back up, and re-sell it to the public... Euro:Gold is the "proxy du jour"... THE EURO isn't a "widget" & this ain't your grandaddy's capitalism... It's not going to die until they're ready with another IDEA... I'm not sure they're ready with a new idea just yet... Perhaps they thought "Barry" would buy them 8 years of time but it's not working out... & Ron Paul is kind of messing things up at the moment...


Fri, 12/30/2011 - 15:45 | 2022264 Captain Kink
Captain Kink's picture

I just read the frist 30 pages of the book, and man is this a great read.  The ultimate and only question is whether Merkel will sell out her people and their future for the benefit of the profligate governments of club med (and France).  The socialist future of Europe benefits, in a (Ayn) Randian sense, those who will never produce at the level of the real engines of Europe.  If Merkel cares a whit about her country, she will elect to leave this whole sorry experiment behind.  This is really their last chance to divert from the Central state, socialism forever model that the less disciplined states should be clamoring for.  I used to feel sorry for the people of Greece and the rest, as I believed that Germany would be the beneficiary as they would ultimately be in control...and that the citizenry of the profligate states would not have any say over their loss of soveriegnty.  the truth of the matter is that under one European fiscal and ultimately national govt, a Spaniard, or Greek or Italian will be able to while away the afternoon taking a nap or watching pretty girls go by outside the sidewalk cafe while his "countrymen" to the north produce engineering marvels and real products with value.  The whole thing is F-ing nauseating. MERKEL/DEUTSCHLAND SHOULD QUIT THE EURO.  BRING BACK THE DM.

Fri, 12/30/2011 - 17:00 | 2022460 sgt_doom
sgt_doom's picture

This is also a good article from Prof. Blyth (Brown University) and Matthijs:

Fri, 12/30/2011 - 20:27 | 2022741 Ghordius
Ghordius's picture

"...dual visions of Europe with northern libertarians and southern socialists..."

this sentence is a perfect example for the fact that our dear Yank cousins just project the US political and social paradigm on Europe - not understanding the real political environment of the EU and the EZ.

Mix some UK anxiety on France "getting back to imperialism" and the angst of the resurgence of the Third Reich and the mix is perfect.

I'm laughing myself silly about any Finn or Swede or German realizing they are seen as "typically or majority-wise" libertarians.

Libertarianism - and I'm talking here as an avid follower of the Mises Institute - is an American "Brand" of the Classical Liberal tradition.

I know, I know, in the US the liberals are what we usually call the socialists or the social democrats. Call it another form of American Exceptionalism.

Seriously, friends, get a grip on reality. I read this comment "Good article, I will quite surprised if the Euro survives in its current form through next year."

next to it, a link to the blog ""


He has a very good book out about the Currency Wars - and NOTHING in it is about this UK/US fancy of a "breakup" of the EUR - in the way you get this idea across.

I quote from the blog "Awkward how the British press keeps bashing the euro when the next crisis is the sterling. - Jim Rickards, Twitter Update"

Or here, an interview where he wraps up his book

Please, you have now made so much easy-to-digest-and-therefore-simplified-anti-FED-propaganda that you simply equate Europeans with your US liberals, the ECB with the FED, the EU northeners with your libertarians, the EU southeners with your socialists/liberals, the current currency war as a conspiracy against US citizens, and so on.

Even Bagus says at the beginning "this is the only Austrian/Libertarian book - that is the Austrian School reflects a theory valid for the whole human species while the libertarian part caters to your tastes.

Perhaps you do need a veil over your eyes? Or is it really that much effort to aknowledge that you are not the whole world and that other continents tick differently? I don't know. But it looks really, really silly - a bit like calling a Football trophy the World Cup (or whatever it's called) when there is only one country playing football in this exceptional typically American form.

Fri, 12/30/2011 - 13:17 | 2021916 GeneMarchbanks
GeneMarchbanks's picture

Some sweet-ass colors on those notes though, you gotta admit.

Fri, 12/30/2011 - 13:49 | 2021986 redpill
redpill's picture

We'll always have


Fri, 12/30/2011 - 14:49 | 2022119 Urban Redneck
Urban Redneck's picture

I'm shocked, shocked to find that gambling is going on in here!

Fri, 12/30/2011 - 14:11 | 2022032 DoChenRollingBearing
DoChenRollingBearing's picture

@ Gene

+ 1

And I have always liked those colors on the 500 Euro note...

Fri, 12/30/2011 - 14:35 | 2022092 SAJ
SAJ's picture

Gene -- Not as sweet as you might think.


The original red coloured dye on the 10-Euro note turned out to be an allegen for approximately 9%  of the population, and outright toxic to about a third of that 9%.  The most prominent of the early sufferers, unluckily for the Eurocrats, was the lead partner in Germany's largest tort law firm.

Setting an all-time record for speed in a bureaucracy, it only took ECB 3 weeks to designate a new dye and reprint the tenners.

Also, the 1- and 2-Euro coins as issued originally had a high enough nickel content to trigger nickel allergy in roughly 8% of women and 6% of men.  The amount of nickel in these coins was quietly reduced in 2003. 

There were an unbelievable series of screwups in the creation of Euro coins and notes, including but not limited to copyright infringement, frangible coins, duplication of size & weight, coins too small to handle effectively, and easily forgeable holograms.  And then there's the story (quite true) of the robbery of approximately E 0.4 million by dint of some clever chaps taking a crane and wrecking ball to the roof of a Bologna bank, then climbing down the chain and helping themselves, a couple of weeks before the Euro was to begin circulating.

Fri, 12/30/2011 - 13:19 | 2021920 Squishi
Squishi's picture

a political project living on the economic projects! 

Fri, 12/30/2011 - 13:21 | 2021926 lolmao500
Fri, 12/30/2011 - 13:50 | 2021987 redpill
redpill's picture

It is enough that the people know there was an election. The people who cast the votes decide nothing. The people who count the votes decide everything.

--Joseph Vissarionovich Stalin

Fri, 12/30/2011 - 14:18 | 2022055 DoChenRollingBearing
DoChenRollingBearing's picture

There it is.  

Fri, 12/30/2011 - 14:28 | 2022075 SillySalesmanQu...
SillySalesmanQuestion's picture


Fri, 12/30/2011 - 15:13 | 2022190 Potemkin Villag...
Potemkin Village Idiot's picture

That wasn't actually a STALIN quote... It is debatable WHO actually said it, but it is assumed to be a paraphrase of some thoughts that were eventually credited to Stalin...

Nevertheless... Touche' (it's always been a great line)...


Sat, 12/31/2011 - 10:21 | 2023489 bank guy in Brussels
bank guy in Brussels's picture

Apparently authentic from Stalin -

"You know, comrades," says Stalin, "that I think in regard to this: I consider it completely unimportant who in the party will vote, or how; but what is extraordinarily important is this - who will count the votes, and how."
Joseph Stalin, quoted in 'Memoirs of Stalin's Former Secretary' (1992), by Boris Bazhanov

Fri, 12/30/2011 - 14:03 | 2021931 Mercury
Mercury's picture

Bagus offers a clear perspective on why the EMU is a 'self-destroying' and 'conflict-aggregating' system...

...when it was supposed to be a conflict eliminator. It's like a giant CDO of social and cultural relative pathology except that the countries who thought they were in the top tranche suddenly discover that they're the ones who eat shortfalls first.

Shit, tiny Belgium, the capital of Euro-harmony, can barely hold itself together as a country. All so clear in retrospect.

Looks like culture and tribal ties matter after all and news of history's demise has been a bit premature.

Fri, 12/30/2011 - 14:15 | 2022046 Whoa Dammit
Whoa Dammit's picture

The bigger they are the harder they fall...Or the harder they come (Jimmy Cliff)



Fri, 12/30/2011 - 15:27 | 2022221 WonderDawg
WonderDawg's picture

The Euro came into being near the peak of the world's most pervasive bull market (optimism/hope), and will be destroyed in the world's most pervasive bear market (pessimism/fear).

Fri, 12/30/2011 - 16:10 | 2022328 11b40
11b40's picture

"..the countries who thought they were in the top tranche suddenly discover that they're the ones who eat shortfalls first."

Just like the old story about owing money to the bank.  If you owe the bank $10,000 and can't pay - you have a problem.  If you owe the bank $10,000,000 and can't apay - the bank has a problem.  The promblem has not gone away for you, but you now have company in your misery.

Mayhaps we soon re-learn what all our old tribal instincts are really all about.

Fri, 12/30/2011 - 16:45 | 2022427 Ropingdown
Ropingdown's picture

Being neither for nor against the Euro, I have found the arrangement a contradiction of its intended purpose.  It was supposed to unify Europe?  What could more thoroughly divide Europe into two opposing factions with the Germans leading one side and the French the other?  How could Germany possibly stomach it when France organized the Portuguese, Spaniards, Italians, and Belgians into a block to throw repeated proposals for a Euro-bond forward despite Germany refusals?  What is worse is this, that no solution will leave Europe peaceful, harmonious:  If the Germans withdraw or force others out, the bitterness will be enormous.  If the Germans are coerced into a transfer union, the voter rage in Germany, Austria, and the Nederlands will never end.  The hate and resentment are guaranteed to follow in the wake of either path.  Awful.  Just awful.

Fri, 12/30/2011 - 13:31 | 2021947 vegas
vegas's picture

The real tragedy of the euro is the subrogation of individual sovereign states to the apparatchik elites who sit in Brussels and tell them how to live their collective lives all the while skimming the countries treasury for vast sums of money. Like most governments out of control, if this happened in the private sector there would be lengthy prison sentences.

The likes of DSK. Rehn, etc. make me sick. These guys couldn't run a fucking hot-dog stand, yet somehow in their hubris, they think they can centrally plan the world. This is a sick tragedy and the people of Europe are the true losers at the hands of banksters and politicos.

Fri, 12/30/2011 - 13:31 | 2021948 disabledvet
disabledvet's picture

What happened TD? Has our Revolution passed us by? Are our Days of Rage now devolved to Days of Sage? Instead of Storming the Barricades must we be content with Twirling Candycanes in Our Hot Cider? Where is the angst I ask you! Where is the total loss of inhibition? To the triumph of the Supercilious! Happy New Year Everybody!

Fri, 12/30/2011 - 14:13 | 2022037 Oh regional Indian
Oh regional Indian's picture

To the triumph of the supercilious may I add the victory of the vapid?

Happy Renew year to you.


Fri, 12/30/2011 - 13:34 | 2021952 Piranhanoia
Piranhanoia's picture

I thought the northern most Euro nations were the only ones with real democratic/socialist governance.  Norway, Sweden, Finland, Denmark, Germany, Netherlands.  All these nations are keeping their social network and jobs.  

The southern ones are more into bribery and controlled by the religion business.

 Guess it is no secret that democratic socialism is the only stable form of governance and the onlyone that offers any democracy at all.


Fri, 12/30/2011 - 14:08 | 2022025 AnAnonymous
AnAnonymous's picture

I thought the northern most Euro nations were the only ones with real democratic/socialist governance. Norway, Sweden, Finland, Denmark, Germany, Netherlands. All these nations are keeping their social network and jobs.


What you think is irrelevant. What is is irrelevant.

What matters is what kind of propaganda this US citizens audience wants to read and pays for. Demand, offer.

Yes, better to read that northern european countries are libertarian rather than being blind.

Comply with the Ministry of Truth or begone.

US world order.

Fri, 12/30/2011 - 17:52 | 2022601 bombimbom
bombimbom's picture

finally two people who make sense... I was lost amid big LOLs and astonished incredulity reading most of the comments.

Fri, 12/30/2011 - 18:04 | 2022642 Ropingdown
Ropingdown's picture

I can only speak to the Swedish experience, but your line of reasoning, that only social democracy works, is meaningless.  Only democracy works.  The Swedish budget and debt are in such good shape only because voters acceded to reality beginning in 1989-90-91.  They cut taxes, provided escapes (capitalförsäkring), lowered rates for financial income, and so forth.  They put pensions on a sounder "you get out in accordance with what you put in" basis.  They forced banks to become more responsible.  The confiscation of wealth no longer was the purpose, but rather the growth of an economy while preserving public goods, health and education. The values are democratic. The socialism receded.

Fri, 12/30/2011 - 19:43 | 2022842 bombimbom
bombimbom's picture

"preserving public goods, health and education" ... ouch, you showed your ugly european socialist face! you showed you care for the society. you eurocommie. see, society - social welfare - socialism. repent!


Fri, 12/30/2011 - 20:41 | 2022933 Ghordius
Ghordius's picture

tell this bastard eurocommie we won't relent until the Swedish poor are hungry on the streets

I can't savor my filet mignon with champagne if they have some social security net rewarding them for nothing

Fri, 12/30/2011 - 19:32 | 2022821 Ghordius
Ghordius's picture

LOL - you are getting there, but sideways

the typical european setup is the product of compromise between several political parties. that's the real difference to the US - where we typically have some four to ten parties, you have two

just too much US "projection", I would guess...

Fri, 12/30/2011 - 13:35 | 2021953 lookma
lookma's picture

Hmm, a whole 160 or so pages about the Euro with no mention of its most important asset, its marked-to-market gold?

And he's an "expert?"




Fri, 12/30/2011 - 14:14 | 2022039 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

The report missed a biggie!

Fri, 12/30/2011 - 14:53 | 2022125 NotApplicable
NotApplicable's picture

Why would anyone believe that any sovereign still holds gold? I would assume it's all been stolen by the private CBs by now.

Fri, 12/30/2011 - 15:21 | 2022215 Potemkin Villag...
Potemkin Village Idiot's picture

That's what "DECOUPLING" means my friend...

On one hand, you have reality... On the other hand, you have "managed perception of reality" (during the process of theft)...


Fri, 12/30/2011 - 15:16 | 2022197 Potemkin Villag...
Potemkin Village Idiot's picture

Hmm, a whole 160 or so pages about the Euro with no mention of its most important asset, its marked-to-market gold?


Bingo... We have a winner!

Fri, 12/30/2011 - 16:27 | 2022372 Catullus
Catullus's picture

Please share the insight.  Their marked-to-market gold has to do with what exactly?

Fri, 12/30/2011 - 17:52 | 2022529 kennard
kennard's picture

" its most important asset, its marked-to-market gold?"

The French central bank holds US$135 billion market value of gold bullion against an annual budget deficit of US$178 billion.

The Italian central bank holds roughly the same amount of gold against an annual budget deficit of US$94 billion.

The Germans have more gold, but you're not going to dip into either that or the balance of their credit capacity.

So, please explain why EU gold is relevant?

Fri, 12/30/2011 - 19:34 | 2022827 Ghordius
Ghordius's picture

lookma is coming from FOFOA's book - the theory states that at a certain point of inflation + gold revaluation the CB's would be "floating" again...

Fri, 12/30/2011 - 13:35 | 2021956 jomama
jomama's picture

they're just following the hyper-leveraged US model.  except with a bunch of semi-sovereign nations with their own cultures.  

assuming of course that the EU wasn't a ploy for a financial takeover of all these countries from the onset.

Fri, 12/30/2011 - 13:39 | 2021965 bbelux
Fri, 12/30/2011 - 13:41 | 2021969 Zola
Zola's picture

The future of the free world rests on the US election in 2012 - may Ron Paul prevail. Iowans will hopefully usher 2012 under good auspices.

Fri, 12/30/2011 - 13:51 | 2021989 bbelux
bbelux's picture

the future of the free world? Wowww! Nothing less!


Errr, where will the Alien attack then? Is Bruce Willis on duty for the new year eve or? I have not Will Smith cell phone number... Errr

Fri, 12/30/2011 - 14:11 | 2022031 JLee2027
JLee2027's picture

Just vote for Ron Paul, thanks

Fri, 12/30/2011 - 14:15 | 2022043 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Yes, please vote for Ron Paul, thanks from me as well.

Fri, 12/30/2011 - 16:06 | 2022314 youLilQuantFuker
youLilQuantFuker's picture

When Obama ran for president he stood for human rights, he was bright and principled, but then during the campaign certain things happened.

First of all the top financiers of the Democratic Party half of them are Jewish and almost all of those are quite Zionist and quite involved with the Israelis. At the time when Hilary Clinton and Obama were competing for support AIPAC had its annual convention. On that day Obama gave a speech and he gave more than what was expected. Lee Hamilton who was on Obama’s advisory board said to me that he went too far – he shouldn’t have said what he said about Jerusalem – we’re going to be correcting it. After the speech, behind the scenes, he was taken to meet the Board of Directors of AIPAC. Rahm Israel Emanuel, former White House Chief of Staff escorted him upstairs to the hotel room.

This is very unusual, presidency candidates don’t usually get interviewed by boards of directors like this, but AIPAC is different. The way the Israeli community signaled that they were going to support Obama, without actually announcing that they had even had a meeting with him, was to have Rahm endorse Obama. So a few hours later Rahm came out in public and did that, which was the signal to the rest of us that Obama had made his peace with this lobby and that he wasn’t going to be able to do anything they weren’t going to approve of.

Fri, 12/30/2011 - 14:06 | 2022017 SheepDog-One
SheepDog-One's picture

Anyone thinking that they would ever allow their plans for 1 world domination to be upset by Ron Paul is dreaming. He'll never make it, just watch and see.

You assume that 

A- The elections are not totaly rigged from start to finish? 

B- Even if Ron Paul WERE to be president, they'd allow him to take down the world banking system puppet masters that control it all? Ask JFK how that goes.

Never happen.

Fri, 12/30/2011 - 14:16 | 2022049 DoChenRollingBearing
DoChenRollingBearing's picture

I hope you are wrong, but I think you are right.

Fri, 12/30/2011 - 14:57 | 2022148 mick_richfield
mick_richfield's picture

You may say that I'm a dreamer

but I'm not the only one.

Fri, 12/30/2011 - 16:11 | 2022333 Captain Kink
Captain Kink's picture

Didn't work out so well for JL either....  R.I.P.

Fri, 12/30/2011 - 15:24 | 2022218 Potemkin Villag...
Potemkin Village Idiot's picture


You lost me at "FREE WORLD" there Neil Young... (hey - but you'll always have Mary Decker to beat up on)...

Sun, 09/02/2012 - 22:16 | 2756951 WallowaMountainMan
WallowaMountainMan's picture

bad news from the future...

RP is RIP....i'm gonna write him in, but he ain't gonna show on the big ballot this nov....

back to the now.

Fri, 12/30/2011 - 13:44 | 2021974 bbelux
bbelux's picture




the simple solution for the euro : the RESPECT of the Maastricht treaty. This should be STICKED in all the member states CONSITUTION !!!!!



Fri, 12/30/2011 - 14:59 | 2022152 mick_richfield
mick_richfield's picture

This should be STICKED in all the member states

I think you meant to say gestucken bleiben sein gewesen.

Or something like that.

Fri, 12/30/2011 - 13:45 | 2021978 Snakeeyes
Snakeeyes's picture

Here is my bond, mortgage and housing market 2011 review. I discuss the Euro crisis.

2011: A Year In Review For Bonds And Mortgages – Treasuries Big Winner, Europe Big Loser, U.S. Housing Flat-lined

Fri, 12/30/2011 - 14:25 | 2022069 economics1996
economics1996's picture


Here is a little blog I did showing how to smoke out "hopium and dopium" in Florida and our drop in unemployment from 11.9% to 10.0%. `

After you been around the block with the politicians smoking out their crap isn’t that hard.

I always try to use their government information against them.  It makes it that much sweeter.

Keep up the good work and smoke out some locals once in awhile.

Fri, 12/30/2011 - 16:43 | 2022409 earleflorida
earleflorida's picture

check this out economics1996:

Florida's Gov. Rick Scott's low cost health [aug/11?] care on state tab:

taxpayer-subsidized health ins. plan offered by the state-of-florida as a perk,  only available to high-ranking state officials,... which includes top management at all state-of-florida agencies --- approximately 160 state legislators are also enrolled in the program that cost $8.34/month for individual coverage, and $30/month for the entire family coverage [because good help is hard to come by nowadays] !

PS. This is the same Gov. Rick Scott that defrauded the gov't of Billion's $$$ while a former hospital chain CEO executive,... but, per usual his triumph as the newly crowned governor of florida put a wet-blanket over the past smoldering charges!


Fri, 12/30/2011 - 13:46 | 2021981 Bull_Colapse
Bull_Colapse's picture

Everyone hates each other in the euro, too much history, it was never going to work but it wount stop them form trying everything they can. 

Fri, 12/30/2011 - 13:53 | 2021995 bbelux
bbelux's picture

hates? in the EMU?


Well they're all politicians :-) they hate themselves during the day and sleep together at night! Every politician have the same method : throw money by the window and hope tommorrow will be better, or if shit happens, manage not to be elected at that time :-)

Fri, 12/30/2011 - 13:47 | 2021983 Iconoclast
Iconoclast's picture

Er...anyone fancy putting up their hands to admit that they want the shared currency to survive and the united states of Europe likewise..? I'm Spartacus!

Fri, 12/30/2011 - 15:02 | 2022162 mick_richfield
mick_richfield's picture

They're not waving.  They're drowning.

Fri, 12/30/2011 - 19:38 | 2022836 Ghordius
Ghordius's picture

err... here? Shared currency, yes, thanks. Does this make me Crassus?

"United States of Europe"? Why? What for? This is just another UKUS fancy...

Fri, 12/30/2011 - 20:27 | 2022909 bombimbom
bombimbom's picture

I am Gaius Julius Caesar and I want the USofE but unfortunately I know it will take time and many careful steps ahead. anyway I think both you and me will see it at least in its first incarnations. the name will be EU.

BTW I am happy you're not Marcus Brutus. :)

Fri, 12/30/2011 - 13:50 | 2021988 JPM Hater001
JPM Hater001's picture

Im sorry, I missed a big part of his speech...I was busy watching my toast cook.

Fri, 12/30/2011 - 13:53 | 2021993 youngandhealthy
youngandhealthy's picture

Bagus is bogus....he is a clown. Absolutely no one listen to him.

Fri, 12/30/2011 - 14:01 | 2022009 granolageek
granolageek's picture

Libertian Germany? Libertarian Netherlands?


Yup, that's what passes for scholarship among Austrian economists.

Fri, 12/30/2011 - 17:36 | 2022551 TK7936
TK7936's picture

Most people dont even know that the German social security system is out optable, very similiar to what Ron Paul demands on Obama care.

Fri, 12/30/2011 - 14:02 | 2022014 SheepDog-One
SheepDog-One's picture

These 'scholars' just dont get it, this is not like a jalopy theyre desperately trying hard to repair and keep on the road at all. The whole thing was PLANNED to fail so that a 1 world bank could rise from the ashes. 

Fri, 12/30/2011 - 16:31 | 2022382 Catullus
Catullus's picture

I don't think that Dr. Bagus would disagree with you.

The institutional setup of the EMU has been an economic disaster. The Euro is a political project; political interests have brought the European currency forward on its grievous way and have been clashing over it as a result. And economic arguments launched to disguise the true agenda behind the Euro have failed to convince the general population of its advantages.

The Euro has succeeded in serving as a vehicle for centralization in Europe and for the French government’s goal of establishing a European Empire under its control—curbing the influence of the German state.

A vehicle for centralization in Europe sounds like a plan to establish one world bank.

Fri, 12/30/2011 - 21:30 | 2023025 Peter in wonderland
Peter in wonderland's picture

I've planned many things that haven't gone according to plan. So have Europe in the past, like it's written in the history books. I guess this scholar is trying to say that we are on the same path where planning goes for one government and one currency while reality leads us to war. I don't think he was trying to repair anything, more going through the stuff that has lead us this black hole where we are.

Fri, 12/30/2011 - 14:14 | 2022040 High Plains Drifter
High Plains Drifter's picture


the rothschild cartel and the european union.............


the flag, 12 golden stars  on a sea of blue.............hmmmm

esoteric meanings in judaism..



Sat, 12/31/2011 - 10:29 | 2023495 bank guy in Brussels
bank guy in Brussels's picture

Another thought circulated ... is that the EU blue flag with the circle of golden stars is a symbol of Christianity, or even particularly the Vatican and Roman Catholicism, taken from the usual background of traditional religious art of Mary the mother of Jesus ... typically a lot of blue, and the golden stars around Mary's head, just like on the EU flag.

Might be subconsciously borrowed from those images.

Fri, 12/30/2011 - 14:26 | 2022070 Monedas
Monedas's picture

Twelve golden stars of David on a field of for each CB !  My Jews always find the action, Jackson !  Monedas 2011  Comedy Jihad Imagine Our Congress To The 12th Power....EuroZone !

Fri, 12/30/2011 - 14:29 | 2022079 devo
devo's picture

I found this hilarious:

Dennis Gartman, the economist and editor of the Gartman Letter, said he is “about to become bullish” on gold after being neutral since mid-November.

Gartman just can't seem to make up his mind! hahah

Fri, 12/30/2011 - 14:35 | 2022085 High Plains Drifter
High Plains Drifter's picture

yeh , gartman is one guy i sure would have absolutely no problem,  trusting,  to make my pile get bigger..............sarc off/

Fri, 12/30/2011 - 14:46 | 2022112 devo
devo's picture

It's like...on any given day, if gold is up, he's bullish. If it's down, gold is a bubble and he's bearish. Soo funny.

Fri, 12/30/2011 - 15:27 | 2022227 Potemkin Villag...
Potemkin Village Idiot's picture

I found this hilarious:

Dennis Gartman...


You could have stopped right there & WE ALL would have had a great belly whopper to end the year...

Fri, 12/30/2011 - 14:34 | 2022086 Magnum
Magnum's picture

Tragedy is that I paid US$1.65 per Euro on my last trip there.

Fri, 12/30/2011 - 17:18 | 2022497 earleflorida
earleflorida's picture

yeah,... well the euro sinking like a stone doesn't bode well for european vacationers -

the usa makes a huge pile of dole off these travelers now stuck in limbo - tourism equates to Big Bucks $$$ in the states,... and i mean Big Bucks!  

Fri, 12/30/2011 - 14:53 | 2022126 Georgesblog
Georgesblog's picture

The stage is set. The conflict between force of wills and ideologies will play out, to conclusion. There will be a gloating winner, and a resentful loser.  This is a classic split in the making.

Sat, 12/31/2011 - 09:43 | 2023474 Schmuck Raker
Schmuck Raker's picture

"For more equally fascinating insights visit my BLAHG."

Fri, 12/30/2011 - 14:55 | 2022134 Quinvarius
Quinvarius's picture

The reality is, the central bankers will set the Euro exchange rate where ever they want.  At this time, the range is about 1.30 to 1.50.  Because the market is a series of interventions, the next move will be to prop it to 1.50.  It doesn't matter who defaults or blows up.  The exchange rate is set by policy, not by free markets reacting to anything.

Fri, 12/30/2011 - 15:39 | 2022179 Zero Govt
Zero Govt's picture

"...he sees three possibilities: first.. break up; second, the.. SGP. reformed and finally enforced; and third, ....a transfer union - what scenario will finally play out is anyone's guess.."

Because Phillip Bagus is an academic (windbag) he is unable to weight an argument. All plausable options are logìcally possible (ie. he is clueless).

Mr Bagus, like all waffling academics, is only able to round-up the news/past (most of his ilk can barely do that accurately and without bias) but is unable to predict the future (ie. his output worthless)

To others that understand how the world works and are able to use experience as a guide the outcome is not a mulitple choice academic Q&A session. It is a piece of shit to predict

What is missing from Bagus' academic liberal news round-up is that even with the slackest of discpline amongst the bungling Brussels clown show the Eurocrats have still tripped all over themselves and each other like a fruitcake in a China shop. Any attempt to tighten rules amongst these dizzy indisciplined retards is going to go down like a capitalist at a Marxist rally

The other poignent point is the dye (debt) is set. The debt far outweighs anybodies financial ability to repay it. The debt also far outweighs anyones (in particular Germanys) stomach to repay it. The German Govt is between a rock and a hard place for decades of bankrolling the useless suicide socialist tossers around Europe

So that rules out completely Options 2 and 3

Leaving Option 1: break-up

If you like listening to windbagging air-headed academics, Phillip Bagus is your man. If you want to know anything of value, like a sound prediction on the future, he is clueless (like every academic and economist ever born)

Fri, 12/30/2011 - 16:36 | 2022397 Catullus
Catullus's picture

An Austrian economist is now a "liberal"?

And the word is "undisciplined" not "indisciplined".

Fri, 12/30/2011 - 17:24 | 2022510 earleflorida
earleflorida's picture

well,... a fine howdy-doody to[o], un[in]ion

Sat, 12/31/2011 - 05:32 | 2022877 Zero Govt
Zero Govt's picture

Catullus  -  i didn't know Mr Bagus was an Austrian economist.. now i do i have even less respect for Austrians

This is the 2nd instalment of Bagus on ZH where he's been billed as some academic 'Massiah' and sharp cookie. Both occasions have left me distinctly bored shitless with his trite academic waffle

His book sounds about as groundbreaking as listening to a round up of European newspapers of the past 3-4 years. If newsreaders is the best the Austrian School can come up with i hope the school gets shuttered

Academics (like economists, philosophers and politicians) are brain dead and Bagpuss here is no different. The only brain that works and provides anything worthwhile/productive is the commercially (drilled and experienced) brain

While i'm not too keen on Kyle Bass' more Statist views (eg. sending US immigrents to the TSA for 'screening') nevertheless he has predictive skills hardened from commercial neccessity. His brain would run rings around Mr Bagpuss' waffling academic peanut without breaking a casual stride

Bagpuss would piss his pants trying to predict USD/Euro next week or the price of popcorn in January ...he hasn't a clue (like most Austrians) and his contribution to the debate (a 3-way multi-choice answer) is fuking worthless

Fri, 12/30/2011 - 15:28 | 2022232 spastic_colon
spastic_colon's picture

o/t  3...2...1....ramp ES happy new year!

Fri, 12/30/2011 - 15:55 | 2022288 JR
JR's picture

The Euro has succeeded in serving as a vehicle for centralization in Europe and for the French government’s goal of establishing a European Empire under its control—curbing the influence of the German state. —Bagus

French President Sarkozy and Winston Churchill share one common goal – to stop “the strength of the German people.”

Sarkozy, in a New Year’s 2011 address on the danger of euro breakup said: “The isolation of France would be madness.”

In a little known remark, Churchill said of a Germany that had opted out of an Anglo-American debt-based monetary system: "You must understand that this war is not against Hitler or National Socialism, but against the strength of the German people, which is to be smashed once and for all, regardless whether it is in the hands of Hitler or a Jesuit priest." (Emrys Hughes, Winston Churchill, His Career in War and Peace p. 145)

At the time, England was poised to lose her empire to Germany; hence, Churchill’s aggressive stance as Lord of the Admiralty prior to WW I, urging every offensive action available against the German nation.  Prior to WW II, his aggressiveness became an obsession and when war came he made himself the only choice as a leader and refused peace negotiations with Hitler.

This fits in with what Bagus has been saying about the origination of the euro and France’s plans to not only dominate the region but, with the cooperation of other European states, to harness Germany’s power for the benefit of themselves.

Interestingly, David Howden in an earlier review of Bagus’ book had startling revelations about how this would proceed.  Here is an excerpt from this review:

“Philipp Bagus outlines how a post-war France constructed a powerful political plan to centralize control over a unified European future. In fact, as Bagus explains in chapter 5, during the hope-filled days of German reunification, several deals were struck which placed the German state at the mercy of its French neighbors. As Helmut Kohl’s own chief foreign policy advisor relayed to a French journalist just three weeks after the Berlin Wall fell: ‘[T]he German Federal Government [is] now in a position that it [has] to accept practically any French initiative for Europe.’

Indeed in a sense the Deutschmark became Germany’s sacrificial lamb – an offering to a new French-controlled centralized European state. Any united Europe could not be ruled by an increasingly powerful Germany. Indeed, a reunited Germany backed by a powerful currency would be an economic powerhouse, the likes of which Europe had not seen since before World War I. As Bagus writes:

“’[Then-French president] Francois Mitterand and Margaret Thatcher were horrified by the idea of a unified, “strong” Germany. Germany had to lose its keenest weapon…. The monetary union was a solution to this threat.’

“A German dominated Europe with a strong currency would set the state of financial affairs that other countries would largely have to follow...

“There was a two-fold reason for forcing Germany into a monetary union with its less economically powerful neighbors.

“First was that this currency union would allow increased ‘other’ European participation in economic, and especially monetary, affairs. German central bankers, long known as being prudent after learning their lesson with cheap money and loose credit during the Weimar hyperinflation of 1923, would be forced into reaching agreement with other European central bankers (and politicians) for compromised monetary policy. It is well-known that many European states – Italy, Spain, Greece, even France – prepared to pay for their public debts through enabling the inflationary printing press, rather than the good old fashioned way of saving. German prudence, one of the drivers of its incredible rise from the ashes of the Second World War, would be sacrificed at the hand of its less cautious European associates. The French, as the next biggest economy, would be the new domineering European force in the absence of this strong Germany.

“Second, Germany would create the financial backbone of Europe. As Sarkozy made clear as the clock struck midnight, exit from the Eurozone is not an option. Being forced to join a common currency with more proliferate countries – notably the PIIGS of today – the strong countries would all but be guaranteed to provide help to any of the weaker countries should a need arise. Today we see this being realized.”

Fri, 12/30/2011 - 16:06 | 2022318 youngandhealthy
youngandhealthy's picture

Yeeezzz...I need to stop reading this shit.... U people R nuts.

Fri, 12/30/2011 - 18:15 | 2022672 bombimbom
bombimbom's picture

france is going to conquer the world and to get there she will use the superior german arian blood. it's a plan! all this has been done to allow spaniards to make lenghty siestas and italians to look at pretty girls passing by while drinking their caffè.


Fri, 12/30/2011 - 19:45 | 2022844 Ghordius
Ghordius's picture

yuppee! now this is a world-conquering-plan I can subscribe to!

a world where I get my French food, have my lenghty Spanish siestas, drink my Italian coffee and ogle my pretty blond German girls...

wife! pass me the jackboots!

Fri, 12/30/2011 - 16:09 | 2022326 fiftybagger
fiftybagger's picture

Bill Bonner – Devil Deals
TF Metals Report – Revise and Extend
WealthCycles: The Calm Before the Storm
Ranting Andy Takes on Tyler Durden of Zerohedge!!!
Gata – ‘Financial repression’ is gold price suppression
China Daily – Nation urged to increase holdings of gold
Marketwatch – China gold move will cut risk, not appetite
Financial Sense – 2 “Back Door” Ways to a Swiss Bank Account
Forming a Silver Bottom – Need to Take Out First 28.50, Then 31.50
SGT interviews Chris Duane – “Nothing Shines Brighter Than SILVER”
Zerohedge – Foreigners Dump Record Amount Of US Treasurys In Past Month
Financial Sense – Antal Fekete – Mainstream Economists’ Monetary Insanity
Did Bankers Deliberately Crash MF Global to Crash Gold and Silver Prices?
Gold Volatility Increasing – Next Move Could be Orders of Magnitude Larger
Harvey Organ – Raid on silver and gold fails/rumours of global QE to infinity
King World News – Jim Rickards – US to go to War with Iran, Oil & Gold to Spike

Fri, 12/30/2011 - 16:38 | 2022401 fonzanoon
fonzanoon's picture

Some fuck on Cnbshit just said Spanish bonds have outperformed gold this year.

Fri, 12/30/2011 - 16:49 | 2022439 youngandhealthy
youngandhealthy's picture

Timing ol chap

Fri, 12/30/2011 - 16:53 | 2022446 The_Emperor
The_Emperor's picture

I'm pretty convinced the EUR will drop to parity with the USD.

It's already testing multi years low against the JPY.

Fri, 12/30/2011 - 17:20 | 2022500 thegr8whorebabylon
thegr8whorebabylon's picture

Phil is cute, but here's how we got here;


Albert Pike in 1871:

"The Third World War must be fomented by taking advantage of the differences caused by the "agentur" of the "Illuminati" between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm which in all its horror will show clearly to the nations the effect of absolute atheism, origin of savagery and of the most bloody turmoil. Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view. This manifestation will result from the general reactionary movement which will follow the destruction of Christianity and atheism, both conquered and exterminated at the same time”. (Cmdr. William Guy Carr: Quoted in Satan: Prince of This World)

Fri, 12/30/2011 - 21:24 | 2023010 thegr8whorebabylon
thegr8whorebabylon's picture

lol plus 22

Fri, 12/30/2011 - 17:22 | 2022506 thegr8whorebabylon
thegr8whorebabylon's picture

Short version;  polarizing war with Islam to world economic exhaustion.

Fri, 12/30/2011 - 18:23 | 2022686 youLilQuantFuker
youLilQuantFuker's picture

Makes perfect sense. Why else would Freedom Group be buying up U.S. gun manufacturers?

Fri, 12/30/2011 - 17:47 | 2022569 Element
Element's picture

MISH 28th Dec 2011- "It's a Mistake To Pursue a United States of Europe" says German Supreme Court Justice in Spiegel Interview ; Interpretation of Interview from Saxo Bank Chief Economist

EY SENTENCE (p.2 top) : “….. Anyone who voluntarily agrees to something has to accept they will be checked to ensure that this contractual obligation is fulfilled. Such a veto could come from Karlsruhe, however, were a violation of the new debt brake (an amendment to Germany’s constitution that requires the government to balance its budget each year by 2016!" ... NOTE to ALL politicians – this is major, major, major statement – the new RULE is to BALANCE by LAW your fiscal imbalances.


Regardless of aggregate demand, sectoral re-balancing or automatic stabilisers.

i.e. the Keynesians are now going to discredit hardline Austrian economics, via imposing Depressionary and almost wartime-levels of austerity and rationing which will grind 99% into asset selling deflation, deep poverty and lasting unemployment levels

The question now is; when do the 1% of 'Europeans', trigger the wave of inflationary collapse, in the stuff you need to live, on top of the asset price deflation (in the stuff you don't need to live), before or after genuine Austrian budgets are imposed and enforced?

All of this will be wasted if the result is not also highly conducive to small business growth, due to greater affordability, that comes from much lower debt levels.

If the whole aim isn't to cause small businesses to flourish and employ people with a worthwhile relative wage level with a real currency, then Europe as a political project is finished.

Fri, 12/30/2011 - 20:55 | 2022961 AtomicWarhead
AtomicWarhead's picture

This is superb !!!



Sat, 12/31/2011 - 13:57 | 2023359 GreetingsFromGermany
GreetingsFromGermany's picture

Theo Waigel, former Finance Minister under Helmut Kohl and often considered as one of "the fathers of the Euro" (he also was the name giver of the currency and enforced the so called "stability criterias") contradicts this thesis. He maintained repeatedly in public television shows, that there had never been political pressure by French President Francois Mitterand as often suggested. For sure he would vehemently contradict to this remarks of Philipp Bagus. He also argues that the Euro-project was born long time before the German reunification took place.

From my point of view - looking back 20 years - I do not see France in the position to force Germany in a common currency market. The initiative seemed to be at Bonn/Berlin. At least this issue had never been in the focus of the medias at this time and for sure wouldn't give an answer why weak countries like Greece and Portugal also joined the Euro. As I remember in the 90th inreasing debts for the reunification became focus of attention and more than one time it was argued that a weaker Bundesbank (= Euro) would have benefits.

For sure there was a lot of economic calculus as quitting the DM also implied that millions of employees were not anylonger participated in economic success of the strong German export-industry due to permanent upvaluation of the German currency - from now on Greece & Co. offered new same-currency-output-markets and should guarantee lower exterenal value of the curreny for the world-market (those profits ended - as many grafics clarify very impressive - from then on in privat pockets of a minority and bank-casinos).

In this sense it was precondition to intended reforms like wage- and social-dumping (Agenda 2010) as other countries couldn't react by devaluation of their currency with the result we have today. Who cared about growth on tick? Private interests came first....profits were privatized - loss are to be socialised, that was/is the current device...

In Germany took place a huge paradigm shift. Away from demand-oriented policy of the social market economy (like Swiss) towards neo-liberal offer-oriented policy with a fast increasing disparity of incomes, for many decades unknown exploitation, out-sourcing ("working poor"), declining living standard, pensions and deprivation of working-rights. The whole process was escorted by heavy political debates and unfortunated was supported by a political absolutely clueless and unexperienced electorate in East-Germany which voted permanently against own interests - heavy manipulated by medias under control of the economy (...they simply changed social market economy with socialism, Oscar Lafontaine with Erich Honecker - and later Gerhard Schröder with Willy Brandt).


Sat, 12/31/2011 - 07:44 | 2023406 the tower
the tower's picture

I agree with Piranhanoia, the Northern countries have always tried to preserve a real democratic system in which community is more important than the individual. And with that I mean the "right" of the individual to become rich at the expense of others. They also are and have been the richest democracies on Earth. And with rich I mean the people: high income, high education, high living standards, personal freedom and good health.

Sat, 12/31/2011 - 23:39 | 2024277 Socratic Dog
Socratic Dog's picture

What's a "strategical" tool? 

-1 grammar.  Very disappointingal, Tyler.

Sun, 09/02/2012 - 22:30 | 2756964 WallowaMountainMan
WallowaMountainMan's picture

goin back in time to these (this) articles from the (my) past is a blast. i think few realize the richness available in the annuals of zh for later day revisits to add to the flavor future time posts  to the posts from the past.

since all posts are dated, i suggest openning up the 'ancients' to comments from the whenever 'now' it is.

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