Video Explanation Of How The ESM Is Europe's Uber-TARP On Steroids

Tyler Durden's picture

Three years ago, Congress balked at the mere thought of giving Hank Paulson's (so lovingly portrayed in Andrew Ross Sorkin's straight to HBO Too Big To Fail) proposed TARP, which came in an "exhaustive" 3 page term sheet with limited bailout powers however with virtually unlimited waivers and supervision, and voted it down leading to one of the biggest market collapses in history. Curiously, a more careful look through Europe's €500 billion (oddly enough almost the same size as America's $700 billion TARP) European Stability Mechanism or ESM, reveals that in preparing the terms and conditions of the ESM, Europe may have laid precisely the same Easter Egg that Paulson did with TARP, but failed. Because at its core, the ESM is like a TARP... on steroids. It is a potentially unlimited liquidity conduit (only contingent on how much cash Germany wants to allocate to it - which in turn means how much cash Germany is willing to let the ECB print), with no supervisory checks and balances embedded, and even worse with no explicit or implicit liability clauses - in essence it is a carte blanche for its owners to do as they see fit without any form of regulation. As the following brief but must watch video explains, the ESM "is an organization that can sue us, but is immune from any forms of prosecution and whose managers enjoy the same immunity; there are no independent reviewers and no existing laws apply; governments can not take action against it? Europe's national budgets in the hands of one single unelected intergovernmental organization? Is that the future of Europe? Is that the new EU? A Europe devoid of sovereign democracies?" Ironically even America's feeble and corrupt Congress stopped a version of TARP that demanded far less from the taxpaying citizens. Yet somehow, Europe has completely let this one slip by. Is it simply to continue the illusion of the insolvent Walfare State for a continent habituated by zombifying socialism, or is Europe by now just too afraid and too tired to say anything against its eurocrat class? One thing is certain: when the people voluntarily give up on democracy, out of sheer laziness or any other reason, the historical outcomes are always all too tragic.

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redpill's picture

I guess Europe wanted a Federal Reserve of their own!

YBNguy's picture

Christmas came early!


spiral_eyes's picture

European Sieg Heil Mechanism

r00t61's picture

"...there are no independent reviewers and no existing laws apply..."


The "law" is a tool used to prevent the poor and ignorant from taking back by violence what the rich have stolen through cunning.

flacon's picture

They are so jealous of America! Research the Exchange Stabilization Fund (ESF). They even use almost the same acronym - copy cats!:


The Exchange Stabilization Fund and The Gold Reserve Act


Exchange Stabilization Fund (in detail)



Michael's picture

I can think of no better fate for European socialists. It's a natural progression. Once their economic socialism experiment failed, the next logical step in the progression is fascist feudalism. The Europeans deserve what they get for being morons and having such low IQ's. They weren't capable of figuring this oligarch capture move out even though history is replete with examples. They should have listened to Alex Jones. 

Michael's picture

Ron Paul tells you what the problem with Europe is and how to solve it.

Ron Paul's Texas Straight Talk 12/19/11: European Bailout Will Make Crisis Far Worse!

Ghordius's picture

blablabla - so you guys have had TARP and TALP and waste your breath on an up-to-now empty promise?

the video highlights the very problem of this stupid scheme - at the very moment Brussels calls for money the govs involved just show the middle finger...

European Socialists? How do you define "socialist"? By measuring what percentage of the population get a transfer payment from the state?

Sandmann's picture

There are no "Europeans" just as "Americans" could be Brazilians or Chileans rather than Canadians or inhabitants of Massachussetts.........Europe goes beyond the Urals and is a big area with lots of very different people with vastly different history

Sandmann's picture

Except that the US in 1934 copied the British EXchange Equalisation Account created in 1932 which the US forced Britain to discontinue after 1947

peekcrackers's picture


+1 .. E U Fed with more power . Plus now they can ware socks with sandles on the beach and not feel silly.

economics1996's picture

Check out the man boobs on the human walking pos Barney Frank.  This is why ugly women should not be allowed to breed.

Teamtc321's picture

Barney has bitch tits. There, helped you out a bit. lol

walküre's picture

it says he was wearing a sling due to an operation on his thumb..

I won't go there...

Mr. Mandelbrot's picture

Time to refresh on the "Protocols of the Learned Elders of Zion" to see what happens next . . .

Joseph Jones's picture

I like Jesus' words to the Pharisees who hung him on the tree (among many other juicy tidbits): "your father is the devil...say not that you have Abraham as your father...God is able to raise up children of Abraham from these stones...beware the 'traditions of the elders' (washing of hands, Kosher laws, etc.)"

And from the real OT: "the borrower is slave to the lender".

Remember, when the Rabbis mention the "Torah", they have two Torah.  One is the normal written OT with which many are familiar.  The Rabbis describe this OT as of little value, and it is a fairy tale only rightly interpreted by a Rabbi.

Per the Rabbis: The other Torah, the one the Rabbis update regularly, is the spoken word god gave to Moses, not put to writing till 3C AD when the Rabbis wrote the Talmud.  This is what Jesus speaks of as "the traditions of the elders".  The noose around the necks of Jews, put there by the Rabbis (such as the religious laws that prevent orthodox Jewish women from driving a car in ultra-liberal NYC).  The Talmud identifies Jesus as "Pantera", the name of the Roman guard who fathered Jesus by the prostitute Mary...Jesus now boils in excrement for eternity for embarrasing and taking power from the Rabbis.

The Rabbis are the ones who state they are God's chosen people by DNA birthright.  They are above goyim by birthright and nothing else.  They trace their DNA back to Abraham.  The teaching mentioned in the 1991 US Public Law 102-14, that you are responsible to uphold under punishment of Rabbinical death sentence (coming soon enough).   

Tell me how/why this teaching is not laughed off the face of the earth?    

WestVillageIdiot's picture

I've lived in this area a long time and I've never driven a car in NYC.  And I'm not even an orthodox Jewish woman.  I do feel bad for those women.  Have you seen the mutts they have to sleep with?  Those guys, with all of that black clothing on the subways in summertime, must stink something fierce.  It could bring tears to your eyes.  I do like how the orthodox are so able to freely discriminate.  That cracks me up.  I've been on the receiving end of their bigotry. 

Mr. Mandelbrot's picture

Who junked you without reply?!! Obviously, not everyone remembers that even Abraham (father to both Jews & Muslims) had a master/mentor, Melchizedek . . .

Ned Zeppelin's picture

Interesting for sure, but WAY off topic.

Mr. Mandelbrot's picture

or an attempt to get ON topic?

philipat's picture

Where are the UK-bashers today?

This is exactly what Nigel Farage has been saying forever. For instance:

walküre's picture

What Nigel Farage conveniently forgets to mention is that the UK has the highest debt load of anyone. The French however are starting to point towards that direction.

The UK is in a glass house and slinging boulders at everyone else..

philipat's picture

Not really. Most of the UK "Financial Debt" is in the form of derivatives, which actually goes back to th US. And, actually, I don't see the UK throwing many boulders, which actually seem to be getting thown from France, with the support of Germany of course.

DormRoom's picture

The ESM is a mechanism for authoratarian rule.


If the ESM body (technocrat) doesn't like a particular person, or party in a EZ, they can demand financial reforms, or budgets which could delay a solution, and end the chances of the party, or leader, from a down economy.


Could you imagine, if a unelected body, decided that the a US stimulus program was invalid, vetoed it, and that caused a president, Congress, to lose his/her/it relection, from a down economy?


Power is being concentrated to a very small elite group.  Giving them the ability to select the core personnel.  That is how Stalin rose to power.

ESM technocrat = EU politburo

itstippy's picture

Apparently the Eurozone countries (or at least the bankers & politicians that run them) are so desperate that they'll agree to any abomination if it gets the ECB to PRINT.  PRINT EUROS AND BUY OUR SHITBONDS!

Why on Earth would they agree to let Germany run their finances?  Why would they support crawling to the IMF for funds?  The IMF?!? That's for starving African nations, right?

Bottom line, the ECB cannot legally buy sovereign shitbonds directly and they don't want to anyway.  The dolts running the indebted Euro periphery think that if they agree to a conduit approach (ESM, EFSF, IMF, World Bank, whoever) that they will be saved via ECB printing.  Traitorous idiots.

Joseph Jones's picture

And why Plato places the USA's republican form of democracy one mere step above fascism.

Plato also outlawed all private forms of religious worship or expression, under penalty of death. 

earleflorida's picture

there are but two power's in the world today, such that only known foolish whisperer's dare sort their being's aloud,..."ESM's & Dystopiamokcrazy's" which unbeknownst prostrate too,... the almighty  "FRB & BIS" - ironically, and as fate would have it, they're a symbiotic anomaly lacking the fundamental, sine`qua`non,...


Careless Whisper's picture

A Europe devoid of sovereign democracies?

Yeah, that's what its all about. A stepping stone to a planet devoid of sovereign democracies. It's called one world government (aka new world order).

WestVillageIdiot's picture

The Congress of Vienna (I mean Brussels) is trying to reestablish the legitimacy of the monarchies (financial oligarchies). 

falak pema's picture

Metternich, Kissinger's model!

AurorusBorealus's picture

Then Kissinger failed to emulate his model.  Europe has no Metternich to thwart this uprising for 40 years.

Piranhanoia's picture

Everyone wishing to sign on, cue up here.  No,  over here please!   Where are you going?   Isn't anyone going to sign up?

agent default's picture

Not yet.  I would wait for silver  to hit $25-20 (mid 2012?) before getting in again.  From that point on, I don't think you will ever find silver bellow $40.  Ever.  Then again market timing is a bit of a gamble.

sampo's picture

There will be timers and timers. My timing was right, I've got the PHYZZZZ..

Mr. Mandelbrot's picture

Your risk tolerance is much higher than mine. I'm buying all I can afford at current prices, which are dirt cheap IMO . . .

WestVillageIdiot's picture

how does one get to be such a sick fuck that they can even think up such monstrous fucking ideas as these?  I just can't comprehend the level of evil that it takes to be behind this bullshit.  That is why evil so frequently wins.  We just can't believe that such evil fucks exist therefore we can't fight them. 

devo's picture

I'm just wondering where they find the energy. It's 3:30, and I'm still in my pajamas.

WestVillageIdiot's picture

I have always laughed about the thought of pot smokers.  They are portrayed as being dangerous because they are often unmotivated and lazy.  Shit, it seems to me that it is the motivated Type-A fucks that are destroying the world.  We should force these little Poison Ivy League stooges to smoke 10 one-hitters a day until that destructive motivation streak is knocked out of them. 

devo's picture

Oh, I don't smoke pot. I just have mild anemia, so I never have energy. It makes me fascinated by these guys who are naturally juiced and just intent on world domination. Just watching them makes me want to nap.

Anyway, they will win and we will lose, but we'll kick their faces in if it gets real bad, and we'll only bone like 15% fewer women (assuming we're all average looking and semi-funny). It seems like a lot of misguided effort on their part if Darwinism is the end goal. I can only assume these guys are all really ugly with small dicks.

Rainman's picture

the really, really good shit, I bet