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Slovakia On Why It Votes "No" To EFSF Expansion: "The Greatest Threat To The Euro Is The Bailout Fund Itself"

Tyler Durden's picture


Yesterday we reported that tiny Slovakia's refusal to ratify the expansion of the EFSF 2.0 (even though a 4.0 version will be required this week after the "Dexia-event"), may throw the Eurozone into a tailspin as all 17 countries have to agree to agree to kick the can down the road: even one defector kills the entire Swiss Watch plan. Yet an interview conducted between German Spiegel and Slovakia party head Richard Sulik confirms that tiny does not mean irrelevant, and certainly not stupid. In fact, just the opposite: his words are precisely what the heads ot the bigger and far less credible countries should be saying. Alas they are not. Which is precisely why the euro is doomed.

From Spiegel:

Only two countries, Malta and Slovakia, have yet to ratify the expansion of the euro bailout fund. Its fate may be in the hands of a minor Slovak party headed by Richard Sulik. In an interview, the politician explains why he hopes the fund will fail and what he sees as the only way to save the euro.

SPIEGEL ONLINE: Mr. Sulik, do you want to go down in European Union history as the man who destroyed the euro?

Richard Sulik : No. Where did you get that idea?

SPIEGEL ONLINE: Slovakia has yet to approve the expansion of the euro backstop fund, the European Financial Stability Facility (EFSF), because your Freedom and Solidarity (SaS) party is blocking the reform. If a majority of Slovak parliamentarians don't support the EFSF expansion, it could ultimately mean the end of the common currency.

Sulik: The opposite is actually the case. The greatest threat to the euro is the bailout fund itself.


Sulik: It's an attempt to use fresh debt to solve the debt crisis. That will never work. But, for me, the main issue is protecting the money of Slovak taxpayers. We're supposed to contribute the largest share of the bailout fund measured in terms of economic strength. That's unacceptable.

SPIEGEL ONLINE: That sounds almost nationalist. But, at the same time, you've had what might be considered an ideal European career. When you were 12, you came to Germany and attended school and university here. After the Cold War ended, you returned home to help build up your homeland. Do you care nothing about European solidarity?

Sulik: If we now choose to follow our own path, the solidarity of the others will also crumble. And that would be for the best. Once that happens, we would finally stop with all this debt nonsense. Continuously taking on more debts hurts the euro. Every country has to help itself. That's very easy; one just has to make it happen.

SPIEGEL ONLINE: Slovakia's parliament is scheduled to vote on the bailout fund expansion on Oct. 11. How do you predict the vote will turn out?

Sulik: It's still open. The ruling coalition is composed of four parties. My party will vote "no"; the other three coalition parties intend to say "yes." What the opposition says is decisive.

SPIEGEL ONLINE: The Social Democrats have offered your coalition partners to support the reform in return for new elections. Do you think the coalition is in danger of collapse?

Sulik: I don't see any reason why it would.

SPIEGEL ONLINE: What will you do should the EFSF reform pass despite your opposition?

Sulik: For Slovakia, it would be best not to join the bailout fund. Our membership in the euro zone, after all, was not conditional on us becoming members of strange associations like the EFSF, which damage the currency.

SPIEGEL ONLINE: If the euro only causes problems, why doesn't Slovakia's government just pull the country out of the euro zone?

Sulik: I don't see the euro as the problem. It's a good project. Everyone involved can benefit from it -- but only if they stick to the ground rules. And that's exactly what we're demanding.

SPIEGEL ONLINE: Which ground rules should we be following?

Sulik: We have to observe three points: First, we have to strictly adhere to the existing rules, such as not being liable for others' debts, just as it's spelled out in Article 125 of the Lisbon Treaty. Second, we have to let Greece go bankrupt and have the banks involved in the debt-restructuring. The creditors will have to relinquish 50 to perhaps 70 percent of their claims. So far, the agreements on that have been a joke. Third, we have to be adamant about cost-cutting and manage budgets in a responsible way.

SPIEGEL ONLINE: Many experts fear that a conflagration would break out across Europe should Greece go bankrupt and that the crisis will spill over into other countries, including Portugal, Spain and Italy.

Sulik: Politicians can't allow themselves to be pressured by the financial markets. Just because equity prices fall and the euro loses value against the dollar is no reason for giving in to panic.

SPIEGEL ONLINE: But do you really believe that politicians can calm the financial markets by stubbornly sticking to their principles?

Sulik: Let's just ignore the markets. It's ridiculous how politicians orient themselves based on whether stock prices rise or fall a few percentage points.

SPIEGEL ONLINE: You're not afraid that a Greek insolvency could mark the beginning of the crisis instead of the end?

Sulik: No. There's not going to be a domino effect along the lines of "first Greece, then Portugal and finally Italy." Just because one country goes broke doesn't mean the other ones automatically will.

SPIEGEL ONLINE: Nevertheless, banks could run into significant problems should they be forced to write down billions in sovereign bond holdings.

Sulik: So what? They took on too much risk. That one might go broke as a consequence of bad decisions is just part of the market economy. Of course, states have to protect the savings of their populations. But that's much cheaper than bailing banks out. And that, in turn, is much cheaper than bailing entire states out.

SPIEGEL ONLINE: Does one of your reasons for not wanting to help Greece have to do with the fact that Slovakia itself is one of the poorest countries in the EU?

Sulík: A few years back, we survived an economic crisis. With great effort and tough reforms, we put it behind us. Today, Slovakia has the lowest average salaries in the euro zone. How am I supposed to explain to people that they are going to have to pay a higher value-added tax (VAT) so that Greeks can get pensions three times as high as the ones in Slovakia?

SPIEGEL ONLINE: What can the Greeks learn from the reforms carried out in Slovakia?

Sulik: They have to make cuts in the state apparatus. The Slovaks could also give them a few good ideas about the tax system. We have a flat tax when it comes to income taxes. Our tax system is simple and clear.

SPIEGEL ONLINE: One last time: Do you honestly believe the euro has any future at all?

Sulík: I believe the euro has a future. But only if the rules are followed.

Interview conducted by Maria Marquart


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Sun, 10/09/2011 - 12:53 | 1754909 Silver Bug
Silver Bug's picture

"The greatest threat to the euro is the bailout fund itself."


Completely true, but don't expect the beaurocrats to believe it.

Sun, 10/09/2011 - 16:18 | 1755464 Cynical Sidney
Cynical Sidney's picture

what's mentioned below in my post, is meant as a mocking parody of der spiegel's interview of richard sulik. please see poe's law.

Tue, 10/11/2011 - 01:11 | 1760165 strannick
strannick's picture

When you hear the truth told like in that article, it sure makes the half truths and ephemisms of the interviewer sound pathetic.

Sun, 10/09/2011 - 16:19 | 1755471 navy62802
navy62802's picture

I, too, am glad to finally hear someone in Europe say this. But coming from Slovakia, it doesn't mean much. It's like the scrawny kid who decides to stick up for himself during recess ... then promptly gets the shit beat out of him.

Sun, 10/09/2011 - 16:34 | 1755502 ISEEIT
ISEEIT's picture

Exactly. This means jackshit for now. Most likely just bear feed.

Sun, 10/09/2011 - 16:35 | 1755504 SheepDog-One
SheepDog-One's picture

Or, the straw that breaks the camels back.

Sun, 10/09/2011 - 16:45 | 1755522 kaiserhoff
kaiserhoff's picture

Let's give Sulik an Hawaiin birth certificate, get him a 2 week gig as a community organizer, some fake ivy league shit, and like, y'know?

Sun, 10/09/2011 - 18:17 | 1755701 BurningFuld
BurningFuld's picture

I was going to say Sulik for POTUS.

Sun, 10/09/2011 - 18:47 | 1755762 Western
Western's picture

Sulik is basically the Don Draper of the EU.

Spiegel "Are you not afraid that the markets might go down?", Sulik "Fuck the markets."


Sun, 10/09/2011 - 18:58 | 1755780 Pure Evil
Pure Evil's picture

Damn straight.

Obama set the pecedent that a non-natural born citizen can become POTUS.

Who would think that a straight talking, truth telling individual could even make it into politics, whether in Slovakia, or in the country running the greatest ponzi scheme the world have ever known.

So, if we elect Romney will we get Obama's second term, while a Perry win would just be Bush's third term.

Primaries pick the party's Presidential candidate, while the November election picks the President.

So get out and vote during the primaries and choose Sulik's American counter part.

Sun, 10/09/2011 - 21:02 | 1756000 See in the pink
See in the pink's picture

<quote>So get out and vote during the primaries and choose Sulik's American counter part.</quote>

The last time we had someone like that, he was taken out during the last year that most of our coins contained silver. How blatantly fucking transparent...

Sun, 10/09/2011 - 21:21 | 1756030 tarsubil
tarsubil's picture

You know what else. Reagan was shot just 69 days after his first election. Kinda didn't follow his own tune after that.

Sun, 10/09/2011 - 21:35 | 1756056 phyuckyiu
phyuckyiu's picture

"It's ridiculous how politicians orient themselves based on whether stock prices rise or fall a few percentage points." This guy Sulik is my fucking hero. Yeah I wouldn't be surprised if he got death threats. Notice how as soon as Sulik says, "How am I supposed to explain to people that they are going to have to pay a higher value-added tax (VAT) so that Greeks can get pensions three times as high as the ones in Slovakia?", Maria's tone changes from confrontational to asking for his opinion. She got Pwned.

Sun, 10/09/2011 - 21:33 | 1756053 123dobryden
123dobryden's picture

i am from slovakia, reforms he talked about, were really painful, unemployment jumped over 20pc, costs of bank bailouts were over 3bl of euros.....


the fall of soviet empire was also very unexpected, none believed that someone like Havel, Walensa can in few months or weeks be elected president, no one now knows how this crisis will play out, and thats why a majority of people will be again caught by surprise when theirs savings will evapourate, then someone will definitelly get beaten the shit out of him, and it will not be Sulik, nor Slovakia

Sun, 10/09/2011 - 21:53 | 1756108 eureka
eureka's picture

European banks will take haircuts. Maybe not as much as they should, and as Sulik - and all free market believers - want them to - but they will take haircuts.

And Merkozy et al will spit in, one way or another. As it must - EU & EUR will prevail.

Too bad for the US elite, who rigged Europe to fail with weapons of financial mass destruction - i.e. toxic US Wall Street garbage paper stuffed down EU banks..

Next chapter: watch US finance collapse over next 6 months.

As you sow, so you reap. US goes down.

Sun, 10/09/2011 - 13:08 | 1754920 Cynical Sidney
Cynical Sidney's picture

"do you want to go down in European Union history as the man who destroyed the euro?"

YES I DO, that's exactly what i want to be known for going down the history books! I want to be remembered as the man who destroyed greece, spain, italy, portugal, ireland uk france belgium! I am the harbinger of debt war, I will deliver wholesale debt default across the continent! put your faith in me and you will never be afraid of banksters again!

Sun, 10/09/2011 - 13:41 | 1755077 Zero_Sum
Zero_Sum's picture

Yeah, that was quite a combative tone for Spiegel to take at the beginning of the interview. Then there was the accusation of Nationalism, which is the European equivalent of Democrats implying that all Republicans are racist. I thought Sulik acquitted himself quite well. I wish more American politicians would stick to their convictions like this when actually in power, rather than only when running for office.

Sun, 10/09/2011 - 13:49 | 1755101 Thomas
Thomas's picture

Ambush journalism at its finest.

Sun, 10/09/2011 - 15:07 | 1755298 Lord Koos
Lord Koos's picture

No, it's actually the way journalists are supposed to work -- they are supposed to ask tough questions.  The problem is that they don't ask them equally of everyone.

Sun, 10/09/2011 - 16:11 | 1755455 HoofHearted
HoofHearted's picture

What surprises me is that Germany seems to have lost all its Austrian economic ideas. I have a degree in economics from one of the top German universities. I learned a whole lot of Austrian values there. Keynes was taught...with derision. And it wasn't all that long ago that I earned that degree....

Obviously, Merkel and Der Spiegel have changed.

Sun, 10/09/2011 - 17:28 | 1755591 reload
reload's picture

Money printing eventually corrupts almost everything.

We need some zero hedge "Sulik" merchandise. The man is a heroic truth speaker, despite the viscious smear campaign doubtlessly just about to kick off.

Sun, 10/09/2011 - 18:23 | 1755689 Pinto Currency
Pinto Currency's picture



That article was one of the best articles by der Spiegel to date as it showed that publication for what it was.


Best use for der Spiegel is under a beagle.

Sun, 10/09/2011 - 19:59 | 1755475 Bring the Gold
Bring the Gold's picture

Your point is somewhat valid as we surely don't see equal questioning of bankers, but those weren't tough questions they were designed to shape the thinking of the reader. They put him in a harsh light. It wasn't a challenging question, it was psychologically directed propaganda.

That's not good journalism, it is akin to journalists this past summer asking Tea Partiers why they hated America by not raising the debt ceiling, or the same of war protestors against the Iraq invasion circa 2003 "Making America vulnerable to terrorists".

It's not a tough question, it is pure propaganda intended to skew the viewpoint of the reader, not to get the interviewee to dig deeper for an answer.

Mon, 10/10/2011 - 00:03 | 1756420 Xaqaria
Xaqaria's picture

A good Journalist knows how to play the devil's advocate to pull the truth out of someone. No one answers more vehemently than someone who is defending their principles, and no one shows their true colors more clearly than someone who is put on the spot. I think the journalist asked the right questions that allowed Sulik to produce the right answers.

Sun, 10/09/2011 - 14:00 | 1755126 Cynical Sidney
Cynical Sidney's picture

i thought it's hilarious that spiegel accuse this one politician in the slovakian opposition of bringing down the euro. isn't it convenient that spiegel fails to mention, germany's trade benefit tremendously from using the same currency as much weaker countries, german exports are cheaper and go further in the international trade, they get to buy more imports. then they come to slovakia, the country with the second lowest gdp per capita in the eu, and expect slovakians to bail out greece which have a much higher gdp per capita. disingenuous and disgraceful indeed.


Sun, 10/09/2011 - 16:03 | 1755440 defencev
defencev's picture

Sulik, Shmulik who cares? Only idiots can believe that insignificant politcian in Slovakia may change anything. Just sheer nonsense.

Sun, 10/09/2011 - 15:03 | 1755283 macholatte
macholatte's picture

Yes. The comments and questions asked by the interviewer are quite revealing.  They tell me the story of how the propaganda machine is brainwashing the sheeple (including the MSM Sheeple). However, I cannot fault the interviewer for parroting what has been flooding the media for many, many weeks. I can, however, extend a Hat Tip to Mr. Sulik for his cool and logical approach to the emotional situation. I wish him success.



Nearly all men can stand adversity, but if you want to test a man's character, give him power.
Abraham Lincoln


Sun, 10/09/2011 - 15:10 | 1755287 macholatte
macholatte's picture

and one more thing...... Good Job, Tyler.

Many more thousands of people will read that interview now.

Sun, 10/09/2011 - 15:52 | 1755416 Manthong
Manthong's picture

"It's a good project. Everyone involved can benefit from it -- but only if they stick to the ground rules."

If just a few more important politicians in the US took that position about the American Experiment and the Constitution, we might not have to be totally flushed down the tubes of history that we are sluicing down now.

Sun, 10/09/2011 - 21:07 | 1756003 TheFourthStooge-ing
TheFourthStooge-ing's picture

"It's a good project. Everyone involved can benefit from it -- but only if they stick to the ground rules."

If just a few more important politicians in the US took that position about the American Experiment and the Constitution, we might not have to be totally flushed down the tubes of history that we are sluicing down now.

Absolutely agreed. Fortunately for Sulik, he lives in Slovakia, a nation with a multi-party political system. He'd never make it to a position of influence in a single-party system like the United States.

What Sulik has done in this interview is far more interesting and significant than is readily apparent. In most nations, politics at the national level has attained two Nash equilibria: one with truthfulness and the other with TBTF finance.

Politicians of all parties know that the truth is dangerous and so the unwritten rule is to avoid it if at all possible. At best, they can accommodate a truth from a parallel universe Earth if forced to do so. The tacit agreement is that the game is played by hurling well rehearsed cartoon-like talking points about wedge issues at each other.

They also know that elections are bought, not won. The TBTF financiers control big media, big advertising, and big public relations via multiple redundant backchannel money conduits. When it comes to financial shenanigans at the TBTF level, politicians prefer to ignore it, minimize it, and/or blame the victims. In a worst case scenario, they will pass hollow legislation like Frank-Dodd and then, with a wink and a nod to Wall Street and/or the City of London, trumpet it as significant reform.

Sulik must have expected this line of questioning because his answers were rational and precise. He spoke the unspeakable truth when he said that going broke as a result of poor decisions is a consequence of the market economy. He also named those who must not be named when he pointed out that the beneficiaries of the bailouts are the TBTF banks.

If Sulik succeeds with the radical strategy of telling the truth and naming names, the Nash equilibria mentioned above could easily fall apart. In their place would be a Prisoner's Dilemma where the greatest political advantage would go to those who are first to admit to mistakes and embrace the truth.



Sun, 10/09/2011 - 18:47 | 1755761 lewy14
lewy14's picture

This interview would be amazing as an xtranormal cartoon.

Sun, 10/09/2011 - 20:44 | 1755970 CrazyCooter
CrazyCooter's picture

Excellent idea!



Sun, 10/09/2011 - 16:41 | 1755515 ISEEIT
ISEEIT's picture

As the EURO RIPS. I'm tired off this bullshit.

Sun, 10/09/2011 - 12:20 | 1754805 surrational
surrational's picture

Green shoots!

Sun, 10/09/2011 - 12:21 | 1754806 GeneMarchbanks
GeneMarchbanks's picture

Who woulda thunk Slovakia so sober?

Sun, 10/09/2011 - 12:57 | 1754924 Motley Fool
Motley Fool's picture

Yes. That was unexpected.

Sun, 10/09/2011 - 15:40 | 1755370 Bob
Bob's picture

That was a breathtaking exhibition of sanity, I thought.  What a shock! 

Sun, 10/09/2011 - 14:24 | 1755183 bartek
bartek's picture

We should breed people like that. Let's get him to impregnate a few hundred women around the world so that we can spread around some good genes.

Sun, 10/09/2011 - 15:06 | 1755293 CharlieSDT
CharlieSDT's picture

Slovakia is a good place for that.  I remember several years ago on my first trip to eastern Europe I was just astounded at the number of smoking hot chicks walking the street in Bratislava.  Eastern Europe is really where it's at in that regard.

Sun, 10/09/2011 - 15:24 | 1755333 Randall Cabot
Randall Cabot's picture

Plenty of hot Slovak chicks around Wilkes-Barre, Pa-still have some Arthur Treacher's Fish and Chips joints there too!

Sun, 10/09/2011 - 17:30 | 1755599 CharlieSDT
CharlieSDT's picture


Mon, 10/10/2011 - 07:28 | 1756824 BorisSDT
BorisSDT's picture

What the hell are they doing there?

Sun, 10/09/2011 - 17:46 | 1755630 LooseLee
LooseLee's picture

Most women, the world over, are not interested in good genes or intellignce, but some pretty boy who has a lot of income or popularity (e.g. one long line of bullshit). Those rare women who think otherwise are few and far between.

Sun, 10/09/2011 - 17:49 | 1755636 reader2010
reader2010's picture

every one of them is a whore basically.

Sun, 10/09/2011 - 21:23 | 1756034 Bring the Gold
Bring the Gold's picture

I'm shocked by your sexism given your feminist avatar. It is a pro-breast feeding pic right? Right?! Riiiiiiiiight.

Sun, 10/09/2011 - 19:55 | 1755881 cnsteph
cnsteph's picture

Speak for yourself.  I chose well.    Geeks/Nerds rule.

Mon, 10/10/2011 - 15:37 | 1758736 SilverTech
SilverTech's picture

Hohoho. Here's a guy who hasn't gotten any action for a long time. If all the women are rejecting you, maybe it's you.

Adrian Cronauer: "You are in more dire need of a blowjob than any white man in history."


Mon, 10/10/2011 - 15:37 | 1758737 SilverTech
SilverTech's picture

Hohoho. Here's a guy who hasn't gotten any action for a long time. If all the women are rejecting you, maybe it's you.

Adrian Cronauer: "You are in more dire need of a blowjob than any white man in history."


Sun, 10/09/2011 - 14:38 | 1755210 dark pools of soros
dark pools of soros's picture

does that country have an invisibility cloak??  how come they haven't been suicided, attacked by 'rebels', bribed, drugged, blackmailed or framed for sex crimes???


Sun, 10/09/2011 - 16:40 | 1755513 Mr Pinnion
Mr Pinnion's picture

The correct term is ,cloaking divice. Obviously made some sort of pact with the Romulans or Klingons.



Sun, 10/09/2011 - 12:21 | 1754807 Seasmoke
Seasmoke's picture

a flat tax and follow the that cant work....that makes too much sense

Sun, 10/09/2011 - 13:14 | 1754991 RemiG2010
RemiG2010's picture

like RP and follow the Constitution

Sun, 10/09/2011 - 15:05 | 1755291 SheepDog-One
SheepDog-One's picture

Right, cant have doesnt funnel free billions to the top .5%.

Sun, 10/09/2011 - 12:21 | 1754810 pauhana
pauhana's picture

Diogenes, I believe you have found him.

Sun, 10/09/2011 - 12:44 | 1754883 taraxias
taraxias's picture


Sun, 10/09/2011 - 12:21 | 1754811 DoChenRollingBearing
DoChenRollingBearing's picture

Go Slovakia!  Be the Iceland of the EU.  Someone has to, at least try, to stop the insanity.

Sun, 10/09/2011 - 13:21 | 1755021 chaartist
chaartist's picture

I think he would not change his mind. But here in Slovakia the opposition is now considering voting for the passage.  So I hope that it would not pass, but you never know, SAS party is the only one here against this bullshit EUROFail, so I m still cautions...corruption all over here as in every other country.

Sun, 10/09/2011 - 12:23 | 1754814 magpie
magpie's picture

There is no credibility to restore. Who is still volunteering to join the EuroFiatscoDebtClub now ? Turkey ? Poland ? Hungary ? The Czechs ?

Sun, 10/09/2011 - 13:14 | 1754986 dasein211
dasein211's picture

Yep. Game over.
Right now sark and merk are arguing whether to use efsf to either bail out banks or countries. France wants to recapitalize banks. Why? Because in order to nationalize dexia, socgen, they cant risk their own governments money. To do so would automatically lead to a french downgrade.
Germany wants to use it to bail out greece and the other countries.
I have a feeling that france's banks are at immediate risk now and germanys could afford to kick the can a little longer.
Its really now french vs german banks with dexia(part french) taking it first. Germany knows this.
Slovakia see's no benefit either way so they stay out (unless that payoff purse gets bigger;)). Greece is also going down at anytime. Something tells me that 167 billion the US borrowed this last week went directly to MS, BofA, and greece.
Dexia is too big to save and too big to let fail. The eurozone either prints to cover the losses or takes the losses. Borrowing more wont even work for a month because the efsf is not big enough. And not everyone can agree on how to do eurobonds.
Sounds like checkmate to me. Any thoughts?

Sun, 10/09/2011 - 14:56 | 1755260 Marco
Marco's picture

Dexia is not too big to let fail, the senior bond holders are too influential to allow the politicians to let it fail (until the current ones manage to sell it to central banks and specially orchestrated honeypots for retail investors and pension funds).


That there is no such thing as TBTF is the whole point mr. Sulik is making ... there never was. The financial industry is overrated and overgrown, if push comes to shove the central banks can jump into the bond market to keep the big companies going and government can nationalize some banks AFTER bankruptcy and fund them to keep small business loans and mortgages going ... all while the financial industry is collapsing into a firy death around us. The productive part of the economy is not reliant on the 95% of the financial system which would be dying.

Sun, 10/09/2011 - 12:24 | 1754818 english serf
english serf's picture

No way is he a politian- he speaks too much sense

Sun, 10/09/2011 - 12:37 | 1754850 dwdollar
dwdollar's picture

Sounds like it's about time for him to be embroiled in a scandal or die with a "totally plausible" explanation. We should all know how these things go by now.

Sun, 10/09/2011 - 12:43 | 1754881 Cynical Sidney
Cynical Sidney's picture

richard sulik watch out, smear campaigns will be going your way

Sun, 10/09/2011 - 14:47 | 1755240 dark pools of soros
dark pools of soros's picture

they'll have to import all the smut and lies.  their women are very much reserved



Sun, 10/09/2011 - 12:45 | 1754884 wandstrasse
wandstrasse's picture

they will find skulls of babies in his closet for this kind of statement. The cure for too much debt is more debt, period. Everything else is heresy.

Sun, 10/09/2011 - 12:46 | 1754891 narnia
narnia's picture

He made a tremendous amount of sense.  I especially liked the way he responded to the whole- if you don't believe in morally hazardous taxpayer bailouts you are a selfish nationalist pile of pure garbage fallacy.

He did leave out something important.  These countries need to reverse the stupid & unnecessary EU legal tender restriction.  There's no reason these countries cannot have tender trading side by side with the EUR. 

Sun, 10/09/2011 - 12:59 | 1754933 nonclaim
nonclaim's picture

He made a tremendous amount of sense.

Especially the "we agreed to a known set of rules and nothing else". There's no arguing against that.

Sun, 10/09/2011 - 14:49 | 1755244 dark pools of soros
dark pools of soros's picture

made sense and has a voting share in the debate = a bullet soon nearby his head

Sun, 10/09/2011 - 13:26 | 1755037 chaartist
chaartist's picture

He was a former business man. His party was the biggest surprise here in Slovakia because he targeted the young online community and get huge support. He was a former businessman, build succesflull printing company here and he also engineered the flat tax for Slovakia few years ago. I support his stance of NO support for the bullshit fund. But its still a polititian...

Sun, 10/09/2011 - 13:43 | 1755086 papaswamp
papaswamp's picture

I hope the Slovakian people come out in droves to support him and pressure the others. He will at least save your country from eternal bank slavery.

Sun, 10/09/2011 - 17:12 | 1755561 chaartist
chaartist's picture

fighting for this for a long time here in Slovakia !! my last, I have a group of 60 people on FB here in Slovakia where I send and explain them most of ZH stuff. Was head of analytics team here in a small financial company, I m fed up with this FEDonism society, hope normal, honest and creative people get their chance in new system. Bought more gold this weeek, of course only physical. 

Sun, 10/09/2011 - 14:54 | 1755262 Pseudo Anonym
Pseudo Anonym's picture

don't forget the Czechs were smarter than Slovaks by staying out of Euro and keeping their koruna to manage their own affairs after the break up of czechoslovakia

Sun, 10/09/2011 - 17:28 | 1755572 chaartist
chaartist's picture

you nailed it, Klaus helped them to avoid this euro tragedy. 

Sun, 10/09/2011 - 17:41 | 1755613 Motley Fool
Motley Fool's picture

It's too early to say which country chose correctly.

Sun, 10/09/2011 - 12:27 | 1754823 Earl of Chiswick
Earl of Chiswick's picture

in the end they will obey, though the slightest miscalc could create an Archduke moment

for now it's political brinksmanship against the backdrop of the possibility of extorting for personal or national gain


Who can forget the Senator named Landrieu who "bragged about receiving $300 million for her state in exchange for her vote on the Senate health care bill"

Sun, 10/09/2011 - 21:31 | 1756049 Dave
Dave's picture

Don't get me started on that bitch. I live in Louisiana. Perhaps I should stop now before it turns ugly.

Sun, 10/09/2011 - 12:28 | 1754828 Carpathia
Carpathia's picture

TPTB will peel off some votes from the opposition parties.  They will be made an offer they can't refuse.  Mr. Sulik makes a lot of sense to Zerohedgers.  The system is going down, but Slovakia's vote on Monday will not be the modern equivalent of the assassination of Arch Duke Ferdinand.

Sun, 10/09/2011 - 12:28 | 1754829 Conman
Conman's picture

Richard Sulik for US  Prez '12 !

Sun, 10/09/2011 - 12:43 | 1754880 Tucson Tom
Tucson Tom's picture

With 300,000,000 people here,one would think that a viable choice like him would emerge.I allow myself to think"what if" sometimes,but get promptly jolted back to reality.Our success will only come when and if a clear thinker emerges after the SHTF.

Sun, 10/09/2011 - 12:56 | 1754918 Conman
Conman's picture

Judging by his background (studied physics, started his own company) he is way over qualified to be a politician in the US. Too bad most of the politicians in the country are lawyers, career politicians, or partisan aholes. We need more clear thinkers in government period.

Sun, 10/09/2011 - 14:51 | 1755253 dark pools of soros
dark pools of soros's picture

read their recent history..  JPMorgan bribed and crooked lots of assets from them..  this new group emerged from the ashes and know 'the worst' is not as bad as being debt bitches

Sun, 10/09/2011 - 12:29 | 1754830 edotabin
edotabin's picture

The overlords want a different outcome.  We saw them circumvent logic with the "Euro Constitution" and I am sure something similar will happen again.  Granted, their power may be somewhat weakened  and their plans very grand but it would be surprising to see Mr. Sulik be the hurdle that made it all crumble.

Sun, 10/09/2011 - 13:19 | 1755008 scatterbrains
scatterbrains's picture

or maybe a major player is encouraging him to take a stand and be the fall guy so after it all implodes there will not be a direct connection/pointed fingers and target for WW3. It was all  Slovakia's fault don't you know.

Sun, 10/09/2011 - 15:07 | 1755296 edotabin
edotabin's picture

Truth is nobody knows for sure.  On the other hand, why would they try so hard and use so many subversive and underhanded techniques to squeeze through the "constitution"?  So that it could all fall apart and start ww3?  Seems like there would be easier ways to start ww3.

So far my conclusion is, they have propped everything up with absolute horsesh*t because of all the power and money.  People are starting to see through it and are reacting so everything has become an uphill battle for TPTB. The harder things become, the easier it is for the their soft underbelly to be exposed.  Their success is based strictly on ignorance. You need about 3 tons of lies and manipulation to counteract an ounce of truth.

Sun, 10/09/2011 - 21:44 | 1756082 Dave
Dave's picture

The stage is already set for WW3. Asia. We don't need no stinking Archduke for this one, Amigo.

Sun, 10/09/2011 - 12:30 | 1754835 DormRoom
DormRoom's picture

enter DeutscheMark printing presses

Sun, 10/09/2011 - 12:30 | 1754836 Long-John-Silver
Long-John-Silver's picture

Why do I suspect Sulík is going to have some sort of fatal accident in the very near future?

Sun, 10/09/2011 - 13:33 | 1755062 tsx500
tsx500's picture

yes, or a 'chance encounter' w/ a hotel maid maybe ?

Sun, 10/09/2011 - 12:31 | 1754837 nontaxpayer
nontaxpayer's picture

Sulik is showing some backbone and moral sense, unlike the Finnish thieving corrupt politicians.

Sun, 10/09/2011 - 12:31 | 1754839 DeadFred
DeadFred's picture

Here is a guy who needs to be vary of buses and hotel maids.

Sun, 10/09/2011 - 12:47 | 1754895 cbaba
cbaba's picture

.. When he travels to USA.

Sun, 10/09/2011 - 13:34 | 1755066 tsx500
tsx500's picture

and wary also !

Sun, 10/09/2011 - 12:32 | 1754841 M.B. Drapier
M.B. Drapier's picture

As polak potrafi mentioned, it looks as if EFSF can go ahead without the Slovak ratification...

Sun, 10/09/2011 - 12:56 | 1754919 Schmuck Raker
Schmuck Raker's picture

Yeah, I'm glad for Slovakian spine and all that but it doesn't seem to make any diff.

The inmates (Banks) are still running the asylum.

Sun, 10/09/2011 - 12:32 | 1754842 YesWeKahn
YesWeKahn's picture

Germans will invade them if they say no.

Sun, 10/09/2011 - 12:33 | 1754843 GoldbugVariation
GoldbugVariation's picture

What a rational dude. The ultimate. This interview should be on the front page of every paper in Europe.  Loving the English translation too, kind of conveys the dry but slightly humorous rationality of the guy.

There's a cool picture of him and his little steel-rimmed glasses on the Spiegel website btw.

I would imagine that 90% of German population think exactly the same way as he does.  There could be riots in Germany next week, except that the rational folk who think like this are far too sensible to riot.

Sun, 10/09/2011 - 12:57 | 1754925 Cast Iron Skillet
Cast Iron Skillet's picture

I want  to move to Slovakia

Sun, 10/09/2011 - 13:06 | 1754955 GeneMarchbanks
GeneMarchbanks's picture

For the women I presume? because the food is average and the climate shit-ass.

Sun, 10/09/2011 - 16:48 | 1755526 BigJim
BigJim's picture

No, so he can vote without feeling shame.

Sun, 10/09/2011 - 15:11 | 1755307 Rynak
Rynak's picture

Germans currently are pissed, yet not in riot-mode yet. The problem is just: You don't want to bring germans to the point of rioting (rather than just demostrations)... germans are comformists... they take a lot of built up anger to riot.... more than is healthy.....


Sun, 10/09/2011 - 12:34 | 1754847 No One
No One's picture

What does he mean when he says that issuing fresh debt will not solve the debt crisis? He obviously doesn't have an Ivy league PhD in economics.

Sun, 10/09/2011 - 12:38 | 1754864 Conman
Conman's picture

According to wiki.

The University of Munich has, particularly since the 19th century, been considered as one of Germany's as well as Europe's most prestigious universities; with 34 Nobel laureates associated with the university, it ranks 13th worldwide in terms of Nobel laureates.

I'd say he had a fairly good education?

Sun, 10/09/2011 - 12:59 | 1754931 TradingJoe
TradingJoe's picture

You can bet your ass he has, I have graduated there in 1990! It is one of the best in all Europe!

Sun, 10/09/2011 - 13:09 | 1754969 GeneMarchbanks
GeneMarchbanks's picture

Right. Solving a debt crises with more debt is a bad idea? [Stepen Colbert voice]   'Diploma please!'

Sun, 10/09/2011 - 15:55 | 1755418 RSloane
RSloane's picture

Yes, let's not upset TEH KRUGMAN!

Sun, 10/09/2011 - 17:51 | 1755643 s2man
s2man's picture

I was thinking of getting a PhD.  How long does that take, like a week?

Sun, 10/09/2011 - 12:37 | 1754856 trade the day
trade the day's picture

I'm sure this guy will manage to get arrested on charges that he sexually assaulted a coffee pot in some hotel room and then poof instant replacement.  Enter some other schlepp who will tag along with the EFSF.  That's how things get done now-a-days. 

Sun, 10/09/2011 - 12:37 | 1754858 Great Unwashed
Great Unwashed's picture

A voice calling in the wilderness. How refreshing to hear of a sensible politician that seems to have the interests of his consituents at heart.

Sun, 10/09/2011 - 12:37 | 1754859 trampstamp
trampstamp's picture

he'll 180* by tomorrow after his family is brought into this.

Sun, 10/09/2011 - 12:37 | 1754861 zhilber
zhilber's picture

He said the right words

Sun, 10/09/2011 - 12:54 | 1754914 mixle
mixle's picture

Hear hear. Watch what they do, not what they say.

Sun, 10/09/2011 - 12:38 | 1754862 Fix It Again Timmy
Fix It Again Timmy's picture

"How am I supposed to explain to people that they are going to have to pay a higher value-added tax (VAT) so that Greeks can get pensions three times as high as the ones in Slovakia?" - It would be easier to get a camel to pass through the eye of a needle.  Not even an infinite amount of bullshit can answer this question...

Sun, 10/09/2011 - 15:18 | 1755322 Restcase
Restcase's picture

But "they" did answer: Selfish nationalist!

As someone way up the commenting chain noted, the Euro is a scheme that benefits Germany (and France and to a lesser extent Italy). It basically eradicates "balance of trade" issues between importers and exporters within the zone and allows the industrial states to export their ever-lovin' asses off within the zone. As Euro critics predicted 20 years ago, this would lead to bad things - but the Euro has been the next best thing (for Germany) to having a world reserve currency.

In all these incipient trade areas around the world, the manufacturing powers will be driving unification of currency.

I do like his messaging the German readers  (speaking past the interviewer) with "follow the rules." Not to stereotype or anything, but good hit...

Sun, 10/09/2011 - 15:50 | 1755402 Rynak
Rynak's picture

Would people please stop confusing megabanks and multinational megacorps, with the local economy and population of nations? The former have as little to do with the nations as possible, which is precisely the problem.

German fucking multinationals and megabanks != germany. Actually, if it were about me, kick those parasite assholes out of the country. I'll gladly pass on all the "benefits" that "germany" has via the EMU.... you know, benefits like the population and domestic market getting sucked dry by vampires.

Sun, 10/09/2011 - 20:24 | 1755935 Restcase
Restcase's picture

People equate the American oligarchy with America. Welcome to the club.

Sun, 10/09/2011 - 12:38 | 1754863 Wooly
Wooly's picture

sadly, even the Slovaks will vot in favor of more can kicking.

we all know it, the article as much as says the opposition will vote in favor.

All just wishful thinking?

Sun, 10/09/2011 - 15:17 | 1755321 Rynak
Rynak's picture

Actually, no. The article says that the other parties of the RULING COALITION, will vote in favor, and that the outcome depends on what the opposition does.

Sun, 10/09/2011 - 12:39 | 1754865 Belarus
Belarus's picture


Merkel, Sarkozy reach agreement on bank sector

No, I can't believe it. They reached an agreement to kick the can down the road? Should be good for a few hundred points on the DOW tomorrow. Though virutally none of the undelying problems are fixed and France will quickly find it's way down the rating abyss while Gernany's debt/GDP goes from 80% to north of 100% (worse than the U.S.) all so the Greeks, Italians, Portugal, etc. can continue kicking back. 


Sun, 10/09/2011 - 13:07 | 1754961 TradingJoe
TradingJoe's picture

they have reached agreements in the past too but no details have been made, as usual!

"we have a deal" to not have a deal...just yet! Well until Oct 17 then we'll tell ya'all that we ain't doing shit!

Lets see how the bots respond tomorrow!

Sun, 10/09/2011 - 15:30 | 1755350 SheepDog-One
SheepDog-One's picture

Bots programmed for - Bad news is good news, no news is good news, good news is good news.

Sun, 10/09/2011 - 15:58 | 1755427 RSloane
RSloane's picture

Exactly, Sheepie. They also sing "LA LA LA LA" loudly if someone mentions the word 'reality'.

Sun, 10/09/2011 - 12:40 | 1754871 quark288
quark288's picture

Awesome, nice to see that there still are some politicians in Europe who speak the truth....

Sun, 10/09/2011 - 12:40 | 1754872 pain_and_soros
pain_and_soros's picture

I find it somewhat encouraging that a guy with these views actually got elected, even tho he's in the opposition - maybe the majority of populations in some countries isn't completely brain dead??

Go Slovakia

Sun, 10/09/2011 - 16:57 | 1755539 BigJim
BigJim's picture

I've been thinking a bit about this in relation to Ron Paul.

I LOVE Ron Paul. I pray he gets elected and I will vote for him.

Yes, he is unelectable - but we only need Ron Paul while he is unelectable, because the day he is voted into the presidency is the day a sufficient proportion of our voters 'get it'.

Sun, 10/09/2011 - 12:41 | 1754874 IH10
IH10's picture

I just want to see this dog and pony show end.  The Euro is done.  Euro countries that are savers, like Germany, want a stable currency and countries that have insurmountable debt want to weaken the Euro to make their debt managable.  It's the job of politicians to get countries like Germany to bend over and allow large objects to be inserted in their rectum.  This is just as oppressive to Germany as was the Treaty of Versailles in 1919.  How did that turn out?  Conflict of interests is the understatement of the decade when describing the Euro.  How in the hell is this thing supposed to make it?  When the Euro tumbles we are next and it's going to make Greece look like a piss in the ocean because we are going to take the whole GD world down with us. 

Sun, 10/09/2011 - 15:08 | 1755285 Marco
Marco's picture

That's not all Germany wants .... German corporations, and their bought and paid for politicians, don't want internal wage inflation either. Without the PIGS and without increased internal consumption they are fucked regardless. A stable single currency in an EU with persistent trade imbalances doesn't work ...


Germany is EU's China ... Greece is EU's USA.


PS. of course the real powers that be in and outside Germany know all this, the collapse is planned ... and they will come out owning all the really important stuff (arable land, energy, water etc).

Sun, 10/09/2011 - 16:03 | 1755441 RSloane
RSloane's picture

This is something I do not understand and perhaps you, or someone else, could explain it to me. Germans individually are also savers. Their policies now being enacted punish the people who save, just like in the US, in favor of people who don't save. In the US that circulation of forced responsibility stays in country. In the EU, the German saver is having his savings weakened to the betterment of citizens of other countries. I'm not sure how long I would tolerate that if I were a German citizen. Can you explain how this is sold to them?

Sun, 10/09/2011 - 12:41 | 1754875 no2foreclosures
no2foreclosures's picture

Maria Marquart, the Spiegel interviewer, is an absolute idiot.  Or a shill for the ECB/EFSF/IMF/WB/etc.

Sun, 10/09/2011 - 12:50 | 1754902 RSloane
RSloane's picture

Ultimately all shills are idiots.

Sun, 10/09/2011 - 12:54 | 1754915 no2foreclosures
no2foreclosures's picture

SPIEGEL ONLINE: That sounds almost nationalist. But, at the same time, you've had what might be considered an ideal European career. When you were 12, you came to Germany and attended school and university here. After the Cold War ended, you returned home to help build up your homeland. Do you care nothing about European solidarity?

ad hominem.

Does she work for the IMF or what?

Sun, 10/09/2011 - 13:33 | 1755059 JR
JR's picture

Der Spiegel is Germany’s Time magazine, mimicking it in everything, one of the Establishment’s favorite press organs.

Sun, 10/09/2011 - 12:41 | 1754876 markar
markar's picture

Can we rush a constitutional amendment through so Sulik can run for US President?

Sun, 10/09/2011 - 12:53 | 1754908 Money 4 Nothing
Money 4 Nothing's picture

Hell! They let Obama run so why not?

Sun, 10/09/2011 - 21:47 | 1756089 Yen Cross
Yen Cross's picture

 Good " GOD" , Gents<  You are not that old?    Yen CRoss > Yrooom>

Sun, 10/09/2011 - 12:49 | 1754899 RSloane
RSloane's picture

Bravo. Finally, there is someone in the EU political arena who isn't a complete and utter fool.  I wish him Godspeed, love, candy, flowers, rainbows, and anything else he and his family could want. His time as a politician now is short but for one brief moment he shined his light where few European politicians care to look.

Sun, 10/09/2011 - 13:17 | 1755000 pain_and_soros
pain_and_soros's picture

You forgot about Nigel Farage

Sun, 10/09/2011 - 16:05 | 1755442 RSloane
RSloane's picture

Very true. Thanks for reminding me there are others.

Sun, 10/09/2011 - 15:24 | 1755337 Rynak
Rynak's picture

Actually, most european countries have politicians like him - both left-leaning ones as well as right-leaning ones... however, most of the time they're minor parties and suffer from unexplainable media blackout. You can go into almost any european country, and find a party leader of some minor party saying stuff like in the above interview.

Sun, 10/09/2011 - 12:49 | 1754901 TK7936
TK7936's picture

The Euro isnt going to go away. The US Wetdream will not be served. Instead countries will stop making debt which will destroy another wetdream of the Goldmans. All the twitter down that path is completly irrelevant.

Sun, 10/09/2011 - 15:57 | 1755426 SheepDog-One
SheepDog-One's picture

'Countries will stop 'making debt' LOL good one!

Sun, 10/09/2011 - 16:27 | 1755485 TK7936
TK7936's picture

It will be unconsitutional in germany to do so as of 2016 and already is in some smaller countries. germany has been using the crisis to promote debt limitation in France and Spain and they are folding to the idea. The larger game here is the end of socialistic goverments.

Sun, 10/09/2011 - 12:50 | 1754904 holmes
holmes's picture

Let's get him a phony birth certificate and elect him President.

Sun, 10/09/2011 - 13:08 | 1754963 UBIGDummy
UBIGDummy's picture

NOW Thats f n funny.


Sun, 10/09/2011 - 12:51 | 1754905 nasdaq99
nasdaq99's picture

why would this work?  it makes way too much sense.

and i think we waaaaay underestimate the european will to keep it going.  for whatever reason, over here it's a math problem, over there...i'm not sure but they want this to work and even though they KNOW it's not working, they have the votes to keep going forward until one day, i guess it all implodes underneath them but they absolutely will not look at the cold hard facts about this.

the only reason why this will come apart quickly is if merkel & sarkozy cannot agree on socializing the loses.  france needs it to be first come, first serve with regard to the EFSF money(because they will be the first to come after it) and germany recognizes that is absolutley true and wants an equitable distribution of each countries contribution to the EFSF, but wait!, that puts them back to where they started....each country bailing out their own banks....but wait!  nobody can aford to do that but germany.....but wait!  we're a socialistic brotherhood and we have to prop this thing up.....

i'm getting dizzy, imagine how they feel going full circle every single day for TWO FREAKING YEARS NOW.......

Sun, 10/09/2011 - 15:27 | 1755338 Marco
Marco's picture

Why do you say the EU can't work when you say what mr. Sulik proposes can work? Nothing he said was Euro sceptic.


Just turn the EFSF fund into a depository/pension insurance fund for countries which default and are no longer able to do that themselves anymore (I have no problem with solidarity with small savers and people with small pensions, the rest can take care of themselves). Then let the "TBTF" institutions fail and the PIGS default, the Euro won't collapse ... just the financial industry and living standards in the defaulting countries. Problem solved.

Sun, 10/09/2011 - 16:49 | 1755520 Rynak
Rynak's picture

Unfortunatelly, without leaving the EMU, the "defaulting countries" will dump their living standards in the trashcan for no gain, because the EMU-structural issues that put them in their role, will continue to exist.

To get to the point: The EMU indeed cannot work with the current state of the involved countries. To get something like the EMU to work, you'd first have to dissolve it, let the countries built up a selfsustainable economy, with all of them having similiar wages and stuff - and THEN something like the EMU could work. But you see, for something like the EMU to work, countries would actually have to give up their economic souvereignity! And that was something which at least "officially" was never considered to be what the EMU and EU should be: The EMU was considered not a supernational government, but more like an alliance of nations that however is structured like an... union..... :)

TL/DR? The EMU is a oxymoron. An union can only work if souvereignity is strongly limited, and an alliance can only be, if souvereignity is NOT restricted. And: The cultures of europe are further away than ever, from being willing to restrict their souvereignity. Ergo, no union. End of story.

Sun, 10/09/2011 - 17:56 | 1755650 Marco
Marco's picture

The structural issue which put them in their role was the foreign accumulation of their debt ... you can be 100% certain that if we let them default that is not going to happen again any time soon.


Sun, 10/09/2011 - 18:36 | 1755742 Rynak
Rynak's picture

So, you think an export-addicted nation like germany almost bordering them, and no economic shields like tarrifs being available, has nothing to do with it? Also not the currency peg that is the EUR? If countries like germany sell out their populations to exporters, and countries like greece have no way to defend themselves against that.... then everything should work out fine?

Interesting. Right, it was just their accumulation of debt.... which they accumulated for..... no reason..... probably because they're lazy, yep, that must be it!

Mon, 10/10/2011 - 10:23 | 1757320 Marco
Marco's picture

I think it has everything to do with it ... but I also think that if we allow Greece to default it stops. If there is no one to buy Greek debt then the Greeks will have balanced trade, by necessity. Germany can try to export to them till it's blue in the face ... but if no one is buying Greek debt all the Greeks can pay for their imports is money made with their own exports.

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