Visualizing Europe's "Ponzi Patriotism"

Tyler Durden's picture

Zero Hedge has a habit of trying to simplify that which is otherwise unnecessarily complex, convoluted and opaque. Today, we wish to explain the primary reason why Europe has still not be engulfed in fire and brimstone and collapsed straight to the 9th circle of overlevereged Hell(as). The reason, as we henceforth dub it, is Ponzi PatriotismTM.

What is Ponzi PatriotismTM you may ask? Good question - instead of providing verbal explanation we will demonstrate it visually, courtesy of the two Reuters charts below. The bottom line is that since everyone else is rushing far and away from Europe's doomed countries, it is up to the countries themselves to double, then triple, then quadruple down on their own terminal insolvency, until, finally one day, it's all over. That day has not come yet, but it is fast approaching: that will be the day when the eligible ECB collateral (which in the last iteration included banana peels and condom wrappers, so even that is fast running out) is completely gone, and the ECB has no more pretext to fund various regional ponzies. Of course, by that time the youth unemployment will have hit 120% (based on BLS seasonal adjustments), and there will be other problems, but you get the idea.

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Badabing's picture

I'm a yankey doodle dandy

Do or Die!!!

redpill's picture

The wings have torn off and the tail's on fire, but for some reason the Germans still think they can land this plane.

knukles's picture

No more EuroVision Song Contests.

Chaffinch's picture

They can always show repeats of the old Eurovision Song Contests - as long as we can't remember who won of course - cos that would really spoil it.

Manthong's picture

How do you say Ponzi Patriotism in Japanese?

French Frog's picture

"Zero Hedge has a habit of trying to simplify that which is otherwise unnecessarily complex, convoluted and opaque"

So true. And you've done it very well for many years now. A big bravo and thank you (I'm one amongst the many in here who have learnt so much over the years).

piliage's picture

Eurovision Song Contest. What all international culture would have been if the Nazi's won the war...

francis_sawyer's picture

Official "Europe" song contest winner (forevermore)...


Whiner's picture

EU, my dahling. You effeminate, degenerate amalgamation of queers. May NATO (USA) continue it's benevolent protection of your precious welfare state. Whaayagonna do when Uncle Sam bankrupts? Call out the Boy Scouts? Germany and Russia will eat you for lunch.

Svendblaaskaeg's picture

Not even one last EuroVision Swan-song Contests?

Chaffinch's picture

Well Redpill you've got to admit the Germans make damn good cars - and they coped with the pain and cost of re-unification when everyone else was doubting them. That Weimar thing still haunts them though!

pkea's picture

at least they will get out of it sooner 


perfect illustration actually: dark blue line CHase trade, light blue-  the ecb support....the monumenetal question in this battle of titans is

who will get killed first?

Rynak's picture

"Nun, wenn das Flugzeug mit folgendem Vektor und Geschwindigkeit, an jenem Hang dort aufprallen würde, so kämen wir wohl mit 20% Verlusten davon, tops... Errrrm, abhängig von den Brüchen unserer Zahlen natürlich!"

magpie's picture

Achtung, Spitfire !

pkea's picture

well, why is their ponzi worse than the one in the US? at least it is smaller. why can't they do what bernank did via other routes. they have their own patriotism and luckily it helped chase to eat their own medicine and get a taste of reality

Zola's picture

again it all comes down to Bernanke, without his BS swap lines etc , this thing would be over already. Notice the timing October/November 2011... Coincidence? NOT...

pods's picture

This will make the fall all that much worse, as the effects of default will be doubly felt inside the country.

This also gives the government some protection, as the people will be slitting their own (pensions) throats if they clamor for default.


LawsofPhysics's picture


For most a response to your post would be "What Pension?  Default motherfucker and let compensation find it's way back people who are actually worth a shit."

pods's picture

Sure pensions were not sustainable from the get go.  But they were a contract.  

I guess we here in the states will see this when we pay our final payment for our mortgage payment and anticipate receiving our clear title.

Then the banker will say "What title?"

I think that seeing this shift of the debt holders was certainly engineered to keep the truly unproductive (banksters) in power.

I am with you on default, because if we do not ALL default, the ponzi will have to continue.

Notwithstanding all the fake talk of balanced budgets, etc.

In order for the pensions, etc to return their target rate there must be a continued expansion of credit money.  Well, I should say notional return.

All the while the banksters live high on the hog off the skim.


Rynak's picture

Bingo.... it's one thing to create something unsustainable (which IMO is fraud from the getgo... pensions should be handled so that everyone at least gets back exactly what he paid in, with a bonus only being optional)... and until today failing to introduce an alternative and slowly fade out the old model.... yes, that's total incompetence, but it's own incompetence....

...transfering the pension funds to credit sharks who shit money, on the other hand, that is plain theft. Then again, everything they do is theft.

Just because they steal from something one dislikes, doesn't make it non-theft. You know, that old saying "First they came for the..."

Xkwisetly Paneful's picture

.....the Chrysler bond holders? Steal their money, pervert the capital hierarchy for a healthcare plan?


Anything and everything to prop up the hundreds of trillions of unfunded worldwide social obligations.

Blame the banksters, the military spending which is virtual nil where most of these obligations exist,

call it a perpetual revenue problem et al.

Anything and everything to prop up the largest fraud in the history of mankind.

LawsofPhysics's picture

Military spending is virtually nil?  What fucking drugs are you on?  Yeah all those planes, boats, ships and military personnel are just "parked at home".  What a maroon.

Xkwisetly Paneful's picture

Uh yea, most of these obligations exist in countries that have already decimated their military in favor of propping up the scam or at the state and local level where there is no military.

hundreds of trillions in unfunded social obligations are at the bottom and it is not close,

and there is only hundreds of trillions of total wealth in the whole world.

$130trillion between Europe and the US which wouldn't cover it if every asset was sold tomorrow and used to pay for them.

I do thoroughly enjoy the pretend if they eliminated all military spending and just raised taxes alll would be well moronic notion though.   Hundreds of trillions in worldwide unfunded social obligations,

get it?  That is more than any banksters, military or anyone else could possibly steal in a 100 lifetimes. Yea maroon.

WTFU and assess blame where it is due and cease pretending to the contrary.

These obligations are the biggest scam in the history of mankind and yet they continued unabated for decades at an obviously unsustainable pace. It is obvious fraud unless dumb as a moonbat. 



SheepDog-One's picture

Actually guarantees complete and total collapse. That was Bens mission.

sunny's picture

Really?? Condom wrappers and banana peels will work for collateral?  Shoot, I can get a bunch of them, we live near a college town.  What can I buy with all the bucks I'll get.....


narnia's picture

The "capital" behind the vast majority of government debt in the world is 0% reserve deposit insurance.    

Xkwisetly Paneful's picture

It comes back to Bernanke.

Has nothing to do with the world flooded over in unfunded social obligations,

not a thing to do with the underlying purpose of a vast majority of the debt, contrary to zerobrains idiotic notions that the lionshare's is going to the banksters or for that matter anywhere else.

in the end it all comes back to Ben.

If there was no Ben or central banks, there would be no problem,

instead of printing money for these unfunded obligations,

they would wait for a unicorn to shit out some value laden skittles.

In the end it all comes back to Ben.



GeneMarchbanks's picture

Strangest haiku ever or you're just *thinking* out loud?

flacon's picture

Yep. And “In the long run, we are all dead" ~ John Maynard Keynes

crawldaddy's picture

but are destined to return unless we reach a higher peace according the eastern thought.  So for most people, its back on the ride bitchez.

pkea's picture

for real clarity it should be called" the BEN company"

GMadScientist's picture

Who the fuck are these Spaniards that can absorb 150B zooro in paper?

I guess it makes it that much less difficult to default on the payments (or exchange them for bonds denominated in pesetas...<wink>).

nasdaq99's picture

This is the unwritten rule of "All Bonds Go Back Home" rule whispered by Germany.  Once, you pick a number, 80-90% of all bonds return home Germany will pull the plug and it will be all rats overboard.

piliage's picture

And the DAX today, which at 3:30pm was sitting at a .7% loss, suddenly, and with no reason, shot up to finish with a 1% gain. All members of the DAX moved at roughly the same time, and with the same percentage gain. Nothing to see here, move along.

flacon's picture

It's the "invisible hand" of Satan.

spastic_colon's picture

gotta keep markets in line for FB IPO dontcha know

pkea's picture

DAX today, which at 3:30pm was sitting at a .7% loss, suddenly, and with no reason, shot up to finish with a 1% gain.


well, europeans unite against chase. so it's good depenning what side you are playing ha

distopiandreamboy's picture

Lmao at the trademark on Ponzi Patriotism.

Dr. Engali's picture

Looks completely stable and sustainable to me... Now where did I leave that lat 1000  rounds of ammo I bought?

Whatta's picture

Staggering, really.

How does that end with a whimper and not a bang though. A lot of people hurt will insist on BANG.

Non-overlappingMagicCereal's picture

Honest question: in the ZH world view, is there anything in the universe that is not a Ponzi scheme?  As far as I can tell, the biggest threat to the US Ponzi is that the imminent collapse of the various European Ponzis threaten to undermine the efforts of the Federal Reserve Ponzi (led by Ponzimaster Bernanke).  Meanwhile, the S&P Ponzi bizarrely fails to reflect this threat, although most of that is due to the aberrant (and sure to be short lived) success of the Apple Ponzi.  Did I get all that right?

Some folks could stand to learn a new word every now and then.

flacon's picture

I went outside for a walk. I saw birds eating worms, squirrels scampering around looking for nuts. I even saw a chipmonk picking up little seeds and eating them.


Their life is not a ponzi. They don't beg, borrow, or steal. They are not in debt, and do not borrow from their future to fund today. 


The world needs to learn from nature. :)

Non-overlappingMagicCereal's picture

Not sure the worm would agree.

Non-overlappingMagicCereal's picture

Yea, but see how he has to save half - no doubt for Uncle Sam.  Down with the worm ponzi, I say.

crawldaddy's picture

the squirrels dont get to make up nuts, they either exist or they dont. Humans just make up shit all day and act as if its real.  One day we wake from the bullshit.

Non-overlappingMagicCereal's picture

The romanticization of nature is adorable, but you guys do understand that nature is more violent and cruel than any hell you could imagine, right?  Being eaten alive and dieing from starvation aren't a heck of a lot of fun.  Animals do not die from old age.

ThirdWorldDude's picture

 Animals do not die from old age.


It depends on how high up the foodchain you are, and oddly enough it's reminiscent of the civilization.


However, you seem to miss the point, which is the manipulation that has been going on for quite a while now and most of the ZHers are sick and tired of it. I'd rather live in the cruel and violent nature with rules that are pretty much constant, than taking part in this giant decadent fraud called modern society.