Super Mario Brothers Super Denied: Schauble Tells Italy, ECB We Like You Just The Way You Are

Tyler Durden's picture

It took a few hours for Germany to tell not only Italy, but the ECB, to shove it. Earlier we reported that the Super Broke Mario Bros came begging on Germany's footstep, kindly requesting their daily allotment be doubled. Germany has now kindly responded. From Reuters: "German Finance Minister Wolfgang Schaeuble on Sunday rejected pressure to beef up the euro zone's permanent rescue facility, saying Berlin would stick to the agreement made in December for a lending capacity of 500 billion euros ($646 billion). "We are sticking to what was agreed in December," Schaeuble told public broadcaster ARD. "In March we will check whether that is sufficient." The draft treaty establishing the European Stability Mechanism (ESM) will be discussed by euro zone finance ministers on Monday and is likely to be approved by EU leaders at their summit on Jan. 30, euro zone officials have said." As a reminder, minutes ago when we reported the first leg of this now closed transaction we said: "Poor Mario apparently fails to grasp that for Germany a plunging Euro, and thus a surging export market to offshore trading partners, is the only thing that matters now that its endogenous mercantilist import, pardon, trading partners of the past decade, the PIIGS, have no more debt capacity to buy German exports. Although even a technocrat probably understands that one does not get a weak currency by bailing out the weakest links over and over. Expect the European crisis to be with us for a long time. After all, that's precisely what Germany wants." And what Germany wants, Germany gets.

More for those who missed it the first time around:

Leaders from the single-currency bloc will review in March whether the limit of 500 billion euros is sufficient.


Markets and the European Commission, the European Central Bank, the United States, Canada and Japan, have been calling for the euro zone to bolster the capacity of its bailout funds.


But the euro zone's main paymaster, Germany, remains opposed. Schaeuble said Germany was doing more than its fair share to resolve the euro zone's debt crisis, and it was apparent that markets were beginning to regain confidence.


"We are not yet out of the woods but over the last few weeks, many (debt) auctions have shown that the markets are beginning to regain confidence."


Schaeuble said debt-stricken Greece was having difficulty implementing reforms but would have to; "otherwise, the situation cannot be resolved".

But didn't the Marios say you could double the fun and double the confidence simply by doubling the bailout money? In fact, by that logic, an infinite bailout amount would lead to infinte confidence? Or was somebody lying here?

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Fips_OnTheSpot's picture

I am getting shizophrenic on all this shit - on the one hand the gollum is somewhat defeating the people claim, on the other hand parliament is pressured into real shizzles -- and the next will be ESM.

brewing's picture

the original 500mm is 500mm more than they should spend on this sinking cruise liner...

zilverreiger's picture

500 Billion  (miljard in mainland europe)

Sudden Debt's picture

500 billion is stil a heck of a lot of money and they talk about it like it's peanuts.


And for what Germany wants Germany gets....

that's right untill the PIGGS tell the world to shove it un their ass...


emsolý's picture

How many lives do the Marios have left? They'll need some stars and power-up...but will it be enough to make it to the next level?

Sudden Debt's picture

I do remember there was a cheat code for infinite lives.....

falak pema's picture

yes, but mine is bigger, i demand retribution, who cares about attribution, thats like fighting to collect on CDS. I take the short cut, no rights but all the bites like those vulture HFs. 

Blank Reg's picture


Hey look at me! Look at me!

roy10's picture

It's impossible for Germany to commit more money in the current climate. Just not happening. Not to mention that markets are going up, so there’s zero pressure on them to act.

Draghi will continue his printing on steroids. That’s the only game in town.

P.S. – you can forget about anybody agreeing on any meaningful “fiscal compact” either. When markets go up by 20% in a month, nobody will commit to anything.

Eally Ucked's picture

What kind of money Germany has? As far as I know they're in debt, maybe less than Italy, Spain or Greece, but still in debt. So how they can commit something they don't have? That's miracle of western financial system. Everybody borrows money from somewhere and nobody knows who the lender is (I know it's just electronic book entries). 

delacroix's picture

It's like listing your unused credit card limit, as an asset on a loan application

Rynak's picture

I think, the money they (actually "we", i'm german) "on paper" supposedly "have".... is that money they did lend to the junkies.... you know, that money that at least OFFICIALLY has not been defaulted yet.

(Yeah, THAT pretty much IS the entire farce of pushers supposedly being better off than junkies... (mainly based on the popular illusion, that in an abusive relationship, the "master" is better of than the slave, in the midterm).... sorry, but nope :) Pushers aren't better off than junkies, exporters aren't better off than importers, when the bill comes home.... the only one who is better off, is those individuals who got bailed out for nothing, as well as lenders who actually did get back some of the shit money at al, by naive suckers (read: population). It's those 3RD PARTIES that benefit, not the supposed "masters and slaves".... they, just ruin each other in vain.

Eally Ucked's picture

Yes, you're right that "the only one who is better off, is those individuals who got bailed out for nothing" and that's the essence of the whole scam. You as Germans get funny money for your exports (you lend money, they buy and then default) Greece gets some assets bought with funny money and then default and what happens with those assets, they end up for few pennies in hands of pirates. 

Rynak's picture

In the big picture - that whole scam can really just be understood via the "divide and conquer"-tactic... as the middle man create an artificial distinction of two polarities (usually in the form of a dichotomy).... that gives each of both sides the impression, that they are in the right, and the other polarity in the wrong... as well as them being in the advantage, and the other one being in the disadvantage.... or the other way around.... it doesn't really matter in how that shell game is played, as long as it is played.... for the very simple reason, that BOTH are played in a way to lose..... while you, the 3rd party middleman, gain the benefits of the suffering that both artificial sides impose on each other. You as the 3rd party middleman simply laugh your ass off, while those two sides with bipolar disorder, ruin each other for YOUR benefit.

disabledvet's picture

I've just looked up "how to say Rope-a-dope strategy" in German. And it's..."Rope-da-dumbkopf uber dunderhead" apparently.

GeneMarchbanks's picture

Germany 3 Goldman 1

Zero Govt's picture

Italy (turd) - Germany (toilet flush mechanism)

GeneMarchbanks's picture

Italy isn't a player. Policymakers are Germany and Banking Cartel. On it rages...

Ahmeexnal's picture

euro is being dumped as quasi-reserve currency before it ever got to be one.

Even people inside the eurozone are reverting to pesetas, lira, pinkstuff, etc.

Rynak's picture

That argument would almost make sense, if those currencies existed as significant alternative fiat in europe.

TL/DR: You're talking shit as usualy. Yeah, no doubt a lot of europeans would wish their national curerncy back, and no doubt there's a good chance of it happening in the future.... but you know, that doesn't make them exist NOW, idiot!

Ghordius's picture

How do you explain Iceland talking of adopting the EUR?

Zero Govt's picture

European Stability Mechanism (ESM)

European Suicide Mechanism

There, fixed it.

Lets Hang Parliament's picture

"In March we will check whether that is sufficient."

There's optimism (hopium/denial/osrichitis - perm one from any three...) for you. Try sticking a few noughts on the end... NOW!

Eclipse89's picture

People still don't get the difference from Greece/Spain/Portugal and Italy...

Italy is the second exporter in Europe, so a plunging euro is good for us too, because as internal demand obviously decreases a weak euro allow italian companies to balance the revenue by exporting.

This seems a not-so-important point, but it will allow Italy (take a big breath here...) not to default.

On the other side, the euro, with this status quo, can default and this is certainly not good for Germany because with the return of the glorious Deutschemark, they simply won't sell one fucking Volkswagen anywhere, so please stop with this low-level populism.

Not to mention the fact that by letting South Europe die, they will lose an important bunch of customers who cannot afford to buy german products anymore.

But hey, no problem, Germany will eventually wake up with Commerzbank collapse.

roy10's picture


Relax. Germany is simply responding to markets. Markets are now saying we're all clear, so there's no reason for politicians to do anything.

Italy has 120% of debt/gdp and it's going into a recession. Under what assumptions could the country repay its debts? Is it going to start growing at 8% per year now? An Italian default is inevitable. Don’t be fooled by empty words.

Besides - you guys have the guy who handles the printing press. What more do you want?


wandstrasse's picture

roy and eclipse, you both think that real economy still has any significance. I appreciate that and I wish that real economy means anything and I know some Italian factories / production sites and I can tell they are AT LEAST as thorough and sound workers and business people as Germans... but: you are wrong assuming real economy has any significance in todays insane elite banker driven world.

Eclipse89's picture

You are right, but elite bankers can keep doing the Über-Mensch as long as on the other side there is an enough percentage of "poor people" working the old way. The problem is, which is the downside limit of this percentage?

roy10's picture

Despite the headlines, the real economy is EVERYTHING that matters. Greece has no real economy, and that’s why they are in trouble. Germany has a real economy and that’s why they’re fine. The bankers are no more than a diversion. A painful one, but still a diversion.

Eclipse89's picture

First, a brief parenthesis of why Italy will not default and/or it will not be the cause of euro collapse, as there are some things that can be understood by looking at them from the inside;

Italy has one of the highest public debt in the world, but it also has an extremely low private debt. Why this?

Well, from the ancient adagio "vox populi, vox dei", you can understand why by hearing what the majority of the italian people says: <<Why should I give money to a state which do not guarantee me an acceptable level of services?>>.

That's why there is another 20% of the GDP which is literally invisible to the statistics, but it is injected into the economy creating a general level of private wealth which is one of the highest among the world. Almost every statistic on Italy has this enormous fallacy.

Going to the point, Italy has a very high potential margin because you can act on this "invisible wealth" to improve the balance sheet; a margin that Greece/Spain/Portugal do not have. And that's what the technocrat Monti is doing along with a ton of modernization processes that 20 years of TERRIBLE mafia-colluded politics didn't do.

The point is that both Italy and Germany benefited from euro; the first to avoid a debt explosion, the other to increase exponentially its exports; and an euro collapse would damage both.

So, when Monti tells Merkel to do something more he's referring to Eurobonds, as all Europe has been telling her for months since the beginning of the crisis.

If I give you the printing press, would you give me some Eurobonds? :-)

roy10's picture


The printing press is far more valuable than Euro-Bonds. I’m still shocked Merkle was willing to give the keys to the printing press to an Italian. Talk about insanity…

RE the potential for Italy to increase receipts – I’ll believe it when I see it. The unofficial economy is a deeply rooted part of Italian life and I doubt Monti will be the one to change that. Italians/Greeks/Spanish simply don’t like to pat taxes. It’s a deeply rooted cultural problem that has no imminent solution. Increasing tax receipts during austerity is nearly impossible and I don’t think it’s going to happen – to the contrary, I think people’s views of the government will become only more negative, increasing the scale of the unreported economy and decreasing receipts.

I simply can’t see the miracle that will somehow push Italy to become a high growth country. The debt load is simply too large at this point and the sooner Italy would work to decrease it (via default), the better. Further Greek-style delays will only hurt the economy and prolong the deep recession which is already in play.

I don’t understand why Italy would want to walk in Greece’s path. I really don’t.


Rynak's picture

What, there are still zombies on ZH who think that exporting == master, and importing == slave?

Ya still believe that inflation == good for exporting POPULATIONS, and deflation == good for importing POPULATIONS?

You still are stuck in that FUCKING dichotomy? That ideology that defies basic school maths, and only serves to enrich parasites???

HAHAHAHHAA, fucking sheeple.


- some german who looked beyond the total insanity, and mathematical impossibility, that is current popular economic doctrine.

Rodolfito's picture

I had an extremely aggressive brain tumour and saw the doc in December. He treated me in January, when I had new symptoms of spread ... he said "We are sticking to what was agreed in December," and "In March we will check whether that is sufficient." I died in February, and the doc realised in March, when he reassessed the situation, that what had been agreed in December was insufficient.  :(

vocational tainee's picture

German savers bought 55ton`s of gold in the last quarter..

vocational tainee's picture

German savers bought 55ton`s of gold in the last quarter..That was physical.

DCon's picture

In the Blue Corner, Goldman Sachs (through their various stooge implants in teh ECB and select European Governments). Typically comes out swinging. Main strengths: Monetary Easing and control of printing presses


In the Red Corner, Germany. Main strengths. A strong defece backed up by a frugal populace who remember former losses at the hand of Monetary Easing and have developed Austerity and living within ones means as a counterattack.


My money is on the Blue Corner rigging the fight, buying off the ref and the judges and fighting dirty whenever needed.



roy10's picture

You forgot Sarkozy on the Blue croner. Also, virtually all the PIIGS.

falak pema's picture

We march to March, and a lot of things can happen on the way; as Greece can flee like a fly out of the jar. The USD can weep like drooping willow or it can soar to heights relative the EUro; so more the good for German exports. Merkel is not troubled either way. Germany holds all the cards in EUro land for the next ten years. No reason why it should hurry as the FED will never allow financial Armageddon and deep deflation in world economy for as long as it holds the reserve currency trump card; and as long as the Euro hobbles and the PIIGS burn. Germany sells, on weak Euro basis that this entrains in its wake, to BRICS, who adore her products that none can match. This could go on for the next five to ten years with US and other Euro economies lumbered in limbo like is Japan since 1990.

Only fair that Germany, having sacrificed for ten years its economy to achieve political unity after Berlin Wall collapse and then another ten to achieve balanced excellence in EUro zone, now leads the charge. With a good socio-industrial model; where big and small companies form a unified integrated eco system; where value added is religion; where the energy paradigm change is the most ambitious in the world, it should now reap the relative geopolitical harvest of this disciplined long term construct thanks its relative uber-alles economy in these gruelling times. 

Euro zone, with or without common money, is now a relatively stagnant and economically degraded zone; as world centre of power moves East. That is the big lesson of current collapse of first world capitalism :  of the five hundred year Atlantic age which is now losing its preeminence for this century in the making.

AbbeBrel's picture

what really isn't mentioned much is it seems that the Germans never wanted the Euro in the first place, still prefer the D-Mark.  They refer to the Euro as the "Teuro" as everything got more expensive after the conversion.   My understanding is that the French strong-armed the Germans into taking on the Euro, as a deal in the WDR / East German consolidation.   It will be Ironic if the Euro causes more pain to France in the end than to the Germans.    As everything tends to converge to the trend - perhaps in the end the Euro will indeed be the new DMark and those sovereigns who can't deal with this will have drop off (then get run over by) the EuroBus.   Meanwhile - for the next N years, the Euro will remain nice and cheap relative to other currencies...