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Wall Street Journal Lays It Down: "Merkel And Sarkozy Have Lost Credibility"

Tyler Durden's picture


The WSJ becomes the first mainstream media publication to say what is obvious to all. Thank you Simon Nixon for the honesty.

"Six weeks to save the euro," European leaders promised the world in September. That deadline passed at last week's Cannes G-20 summit with the goal looking further away then ever. Nothing of substance was agreed on the French Riviera to aid the cause of euro survival, but one giant decision was taken that could hasten its demise. Angela Merkel and Nicolas Sarkozy's announcement that Greece is free to leave the euro has transformed the nature of the euro.

The United States fought a bloody civil war in the nineteenth century to stop states seceding from the union. Yet the German and French leaders have decided the euro zone will be a voluntary union, not because of an attachment to the principle of national self-determination but to protect the principle that euro-zone countries should not become liable for each other's debts.

The significance of Ms. Merkel and Mr. Sarkozy's Cannes declaration is immense. At a stroke, they have introduced foreign-exchange risk into a sovereign-debt market still grappling with the realization that euro-zone government bonds contain unexpected credit risk. Worse, throughout the crisis, the two leaders said they will do whatever it takes to save the euro. Yet the assurances they've given haven't been worth the paper they were written on: First, there were to be no sovereign defaults; then the first Greek haircut was a "unique situation;" the second Greek haircut followed 12 weeks later; now euro-zone exits are possible. No wonder the markets won't lend and China won't invest in Europe's bailout funds. Nothing these leaders say any longer carries any credibility.

Continue reading here.


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Mon, 11/07/2011 - 09:10 | 1852562 Sudden Debt
Sudden Debt's picture

Against who? Obama?


Mon, 11/07/2011 - 09:15 | 1852584 paarsons
paarsons's picture

For the sake of grammar, you should have typed "Against whom."

But what the fuck do I know?

I'm a stupid cunt.

Mon, 11/07/2011 - 09:19 | 1852602 Global Hunter
Global Hunter's picture

paarsons...fuck off you silly little twit.

Mon, 11/07/2011 - 09:26 | 1852636 jeff montanye
jeff montanye's picture

and i thought you were going to go for "twat".   the 50% haircut is the absolute last one.  that's why the greek one year yielded 140% last monday and 210% friday.

Mon, 11/07/2011 - 09:33 | 1852661 Life of Illusion
Life of Illusion's picture



That’s what happens to leadership when you’re told by lenders to give up real assets (gold) collateralizing bailout loans.

Mon, 11/07/2011 - 10:44 | 1852886 i-dog
i-dog's picture

Except it's not Germany that's borrowing!

It doesn't get any more bizarre than the spendthrift southern European states needing to borrow more ... and asking Germany to put up its gold as collateral for their loans. It's like me asking the bank to put up the collateral if I wanted to borrow a large sum for spending on coke and hookers!!

The sole objective of the bankstas is to get Germany's gold stash - by any means, fair or foul. I first mentioned this here more than a year ago.

Mon, 11/07/2011 - 10:48 | 1852912 Paul Bogdanich
Paul Bogdanich's picture

Not being able to speak nor read German the thing that I don't understand is why save the Euro at all costs?  An irrational fear of resergent nationalism is the only thing I can think of.    I think it's pretty clear that unless you are fighting a big foreign war or running an empire where you needed the population base that the American civil war was a mistake and not worth fighting.     

Mon, 11/07/2011 - 12:23 | 1853368 Ghordius
Ghordius's picture

"why save the Euro at all costs?"

it's political rethoric - nobody "wants to save the Euro at all costs" here in the EMU

- there is a very practical reason why Merkel and Sarkozy put it this way: it catches the imagination of the voters. 

- The hard truth of the EUR: speculative pressure is harder when you have several smaller currencies, we had decades of speculation "à la hausse" on the DM and "ä la baisse" on all the other currencies

- the EUR is not what has to be saved, it's the current setup of sovereigns with their own Treasuries and debt - even if the ECB monetizes much more

- I see with delight that the WSJ is practically endorsing a military solution!

I'd say we definitely need some idiot-journalists from NY to come over here and show us how to run things so that Wall Street is satisfied.

WSJ, this is the same as this call for a EuroBond and EuroTaxes: it might be your preferred solution, but no thanks.

Sheeh, the sheer gall of requiring that EU and EMU should be enforcing membership is galactic!

No, thanks, nobody is going to be thrown out and nobody is going to be forced out, not Greece, not the UK, no, no, no.

Mon, 11/07/2011 - 12:45 | 1853464 candyman
candyman's picture

"why save the Euro at all costs?"

it's political rethoric - nobody "wants to save the Euro at all costs" here in the EMU.

I'll agree with this point as Obummer used the same tactic on the American people, which was bought hook line and sinker by the general population. Obummer never defined what he ment by "Hope and Change" so every voting person pulled the lever based on their own personal interpretation of the phrase. The general American public is now living the nightmare of this political rhetoric. Just like Pelosi said. "We will find out whats in the healthcare bill after it is signed". This political rhetoric is the signature foundation of the current Democratic party.

Mon, 11/07/2011 - 14:25 | 1853982 eureka
eureka's picture

Since when did the Wall Street Journal have any credibility?

I guess it takes one to know one. Non-credible entity, that is.

Mon, 11/07/2011 - 09:37 | 1852684 MillionDollarBonus_
MillionDollarBonus_'s picture

 The WSJ has nailed this one. Merkel and Sarkozy have FAILED to set up a firewall to ring-fence banks from sovereign default risk. Their pathetic pandering to voters in their respective nation states is simply sickening, and has lead to a serious delay in the EFSF expansion, the effects of which have been far-reaching and will be felt by financial equity investors across the globe. Their indecisiveness and political wrangling has been completely unprofessional at a time when the markets are CRYING out for some strong leadership and economic guidance.

Mon, 11/07/2011 - 09:39 | 1852687 oogs66
oogs66's picture

the EFSF CAN'T expand because there isn't enough money!!!  its not a lack of leadership, there just isn't enough money!!!

Mon, 11/07/2011 - 09:46 | 1852721 Big Slick
Big Slick's picture

European leaders are finally figuring out that the people shouting "eat the rich" actually mean 'eat the rich'

Mon, 11/07/2011 - 09:48 | 1852729 SheepDog-One
SheepDog-One's picture

Yea, they cant expand the bailout funds, because theyre all bankrupt. And dont look now, but German production just came in -2.7%.

Mon, 11/07/2011 - 09:51 | 1852734 MillionDollarBonus_
MillionDollarBonus_'s picture

This is simply false. The ECB has a RANGE OF TOOLS for combating deflationary pressures and peripheral default risk. In any case, I've long been an advocate of stronger integration between central banks, and have even floated the idea of creating a WORLD central bank to fund larger liquidity injections on a global scale. This would provide a serious boost to confidence in the global economy, helping to foster prosperity, peace and equality throughout the world.

Mon, 11/07/2011 - 10:32 | 1852846 Think for yourself
Think for yourself's picture

Dripping sarcasm, as always. Either that, or you really mean it; nobody can ever tell. Kudos!

Mon, 11/07/2011 - 12:34 | 1853423 NotApplicable
NotApplicable's picture

MDB is swinging for the fences today (or an anchor job on CNBS).

Quite a catch he's gotten, so far.

Mon, 11/07/2011 - 10:48 | 1852911 centipede
centipede's picture

I think you are totaly wrong. The only "tool" CBs have is to counterfeit money - legalized fraud. How can centralized power to do that globaly provide any "serious boost to confidence in the global economy, helping to foster prosperity, peace and equality throughout the world"? Your blind faith in central bankers and their honesty really baffles me. Is inflation by fraud better than deflation? What caused deflation, anyway? Wasn't it fractional reserve banking and as a result of it the rising debt bubble? Just another legalized fraud.

Mon, 11/07/2011 - 11:26 | 1853064 Pegasus Muse
Pegasus Muse's picture

"The only "tool" CBs have is to counterfeit money - legalized fraud."

Precisely.  It's time to re-educate the masses.  The Money Masters.  Share it.  Talk about it.

History records that the Money Changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.

 – James Madison, Founding Father,

Principle Author of the Constitution of the United States of America

Mon, 11/07/2011 - 09:47 | 1852725 Snidley Whipsnae
Snidley Whipsnae's picture

MDBonus... "the markets are CRYING out for some strong leadership and economic guidance."


We know you're worried about your portfolio and you seem to have the oratory/writing skills to fix the problems in European Finance... Are you going to volunteer your services?

Mon, 11/07/2011 - 09:50 | 1852731 SheepDog-One
SheepDog-One's picture

I dont feel sorry for the 'leaderless markets' Snidely, for 3 years theyve LOVED non-leadership and irresponsible promises of free money and guarantees the corruption wont stop.

This is all 'cry me a river' to me.

Mon, 11/07/2011 - 10:56 | 1852931 Snidley Whipsnae
Snidley Whipsnae's picture

I don't feel sorry for 'leaderless mkts' either. I was simply pointing out a job opportunity for Million Dollar Bonus.

Not that the US has leadership that is worth a plug nickle.

The Germans have not forgotten their experience of Weimar hyper inflation and are more reluctant to trash the Euro than the US is to trash the dollar.

BTW, my long term WAG is that we will have both deflationary depression and hyper inflation. We will need lots of pop corn.

Mon, 11/07/2011 - 10:27 | 1852832 earleflorida
earleflorida's picture

yep,... just like the rating agencies

Mon, 11/07/2011 - 10:12 | 1852797 He_Who Carried ...
He_Who Carried The Sun's picture

This only proves that the guys at WSJ have the brains and wit of 5-year olds.

Please calculate Greek GDP over the last 15 years vs. France and Germany combined and all you will find is "insignificance". What is significant is this message to Greace: Stop trying to grease us immediately else you're out. 12 Years of lies and betrayal are enough!

I find this stark message rather bullish for the Euro - even if markets would be rather "shocked" (for 5 minutes) - so would be placing Greace on the ejector seat.

Now that is a contrarian position! Enjoy making money!

Mon, 11/07/2011 - 10:04 | 1852778 orangedrinkandchips
orangedrinkandchips's picture

Princ. Skinner: Ralph you are failing english

Ralph: that's unpossible!!!



Mon, 11/07/2011 - 09:20 | 1852607 ArkansasAngie
ArkansasAngie's picture

With whom have they lost credibility?  1%'ers?

What needs to be challenged is this idea that the saving of the 1%'ers from insolvency is better than foreclosing on them.

It's what has kept the masses calmed.  The fear of the unknown is scarier than the known.

Mon, 11/07/2011 - 09:24 | 1852627 paarsons
paarsons's picture

Brother!  You've displayed wonderful grammar.

By Jupiter's cock!  That's how you send a dog into the after-life.

Just saying.

Mon, 11/07/2011 - 09:29 | 1852649 jeff montanye
jeff montanye's picture

sister?  than that of the known.

Mon, 11/07/2011 - 09:40 | 1852691 Raskolnikoff
Raskolnikoff's picture

Barbecued pork, yummy. the Cantonese call it Cha siu but those statist snobs will laugh at you unless you pronounce it 'cha shao', nonetheless, it's delicious.

Mon, 11/07/2011 - 09:43 | 1852703 Snidley Whipsnae
Snidley Whipsnae's picture

"Nothing these leaders say any longer carries any credibility."


Other than the Keynesian Klowns, who thought 'they' had credibility from jump street?

We know it's getting down right nasty when they start eyeballing each other's gold.

This shit is coming to a country near you soon... so don't be smug about a European monetary collapse... the shock waves will be tsunamis.

Got Physical?

Mon, 11/07/2011 - 09:54 | 1852749 SWRichmond
SWRichmond's picture

Other than the Keynesian Klowns, who thought 'they' had credibility from jump street?


We know it's getting down right nasty when they start eyeballing each other's gold.

Yes, isn't that revealing, how in a crisis they covet each other's barbarous relic?

This shit is coming to a country near you soon... so don't be smug about a European monetary collapse... the shock waves will be tsunamis.

+ another 1,000,000

Got Physical?

Damned skippy.

Mon, 11/07/2011 - 09:37 | 1852681 e2thex
e2thex's picture

Obama who?

Mon, 11/07/2011 - 10:19 | 1852812 knukles
knukles's picture

The city in Kansas.

Mon, 11/07/2011 - 09:41 | 1852697 Big Slick
Big Slick's picture

Anyone hear Obama's post -G20 comments?  Made milk come out my nose.

Admitted nothing has been resolved.  Out loud he actually said the fact that they are working hard on this should be sufficient to calm the markets. 

Mon, 11/07/2011 - 09:10 | 1852565 navy62802
navy62802's picture

Looks like WSJ just went all-in.

Mon, 11/07/2011 - 09:50 | 1852732 Smiddywesson
Smiddywesson's picture

Now that's an interesting idea.  We've discussed here on ZH the process where politicians, sensing a crash, jump ship to salvage some political capital.  Grandstanding against gold transfers as collateral for deals they themselves brokered is one example.  Perhaps, as they see the end coming, we will start to get some truth out of a limited number of the MSM as they attempt to decouple themselves from the Ponzi game they have been so important in supporting. 

I see this as another canary in the coal mine

Mon, 11/07/2011 - 10:20 | 1852815 knukles
knukles's picture

choip choip  :)

Mon, 11/07/2011 - 09:10 | 1852566 the not so migh...
the not so mighty maximiza's picture

Merkozy are the best money can buy

Mon, 11/07/2011 - 09:52 | 1852739 GoldBricker
GoldBricker's picture

Agreed, but with the proviso that money doesn't buy much these days.

Mon, 11/07/2011 - 09:13 | 1852567 paarsons
paarsons's picture

Tyler, no offense, buddy.

But we've been waiting for the crash for the last three years.

It ain't gonna happen.

They're too smart.  Fuck them in their asses.

But they just might be smart enough to beat us.

They can keep the balls up in the air for a long long time.  The power is on their side.

Don't underestimate them.

They ain't as stupid as you think.

How do you defeat them?

Tune in, turn on, and drop out.  It's the only way.

Mon, 11/07/2011 - 09:15 | 1852583 Ethics Gradient
Ethics Gradient's picture

The balls are still in the air, but the jugglers are stumbling (which is a recent development).

Mon, 11/07/2011 - 09:17 | 1852596 paarsons
paarsons's picture

Brother, the jugglers stumble and stumble.

But they've got the power, the money, and the guns.

So what's a boy to do?

Mon, 11/07/2011 - 09:52 | 1852741 SheepDog-One
SheepDog-One's picture

Fuck off, spamboy.

Mon, 11/07/2011 - 10:41 | 1852883 Bad Lieutenant
Bad Lieutenant's picture

Predicting 'when' things truly go nuts is like predicting which snowflake causes the avalanche.  It's a game of deeply interconnected chaos with the certainty that as it the snow builds, the avalanche will only become more fierce and all-encompassing once it starts.  Sadly, as of 2008, we are well past an avalanche scale that can be controlled or at least contained and are on borrowed time.  The three years you speak of is just more snow that's been piled on that will come down with all the rest.  People being impatient at this point is like someone in early 2007 saying that it's been too many years of real-estate boom for it to possibly be wrong.

I believe that people are going to look back at the 2008-2011 time period and regard sovereign debt like we now regard MBSs during 2003-7.  Once sovereign debt repricing starts to really occur, people will kick themselves why they thought lending ANY of the western governments money for *10* years for 3-5 percent (let alone lending it countries like Greece, Spain, or Italy o rlending it more than 10 years). 

The world is about to rediscover what happens when a nation's financial affairs go unsupervised in government for decades.

Mon, 11/07/2011 - 09:22 | 1852619 Big Slick
Big Slick's picture

Is "never bet against the EMU" the new "never bet against the FED?"

Paarsons makes a good point.  Can anyone shed light on timeline here? (with historic precident?... "or some varm milk perhaps?") 

Mon, 11/07/2011 - 10:14 | 1852799 Smiddywesson
Smiddywesson's picture

Can anyone shed light on timeline here? (with historic precident?...

Read This Time Is Different, for over 800 years of precident as to what happens when societies overspend.  Unfortunately, economies were not always tied together in the process of global finance and globalization of their economies.  It used to be that a country would enter a recession with some countries yet to enter their own recession and others already emerging from their own, so that each economy served as a buffer to others in the overall world economy.  Back in the day, there were even large economies that were spared from widespread recessions.  Not so today.  All economies are tied together.  So look to the history books and multiply the misery by ten.

When?  We are either kicking the can with no reason, or we are stalling with some goal in mind.  Inasmuch as all the central banks are stacking gold, I would have to say that there is a target gold level they are attempting to reach.  The Euro is over 70% backed by gold.  The US is close to that point too.  When foreign currency reserves are removed from the assest side of the central banks balance sheets, and only gold remains, I would believe they can make their move and announce a new monetary system.  With less than 30% to go for the big nations of the West, some big brain should be able to take their rate of gold acquisition and come up with a date that most nations reach 100%. 

The wild card is China.  If you can believe their figures (you can't), China only has about 1.2% of their assets in the form of gold.  So the real question is, if the West can continue (and that's a big if) to kick the can after reaching high enough gold levels to announce a new monetary system referrenced to gold, will it still have to wait for one of its biggest trading partners to get up to speed?  Will we wait for China to go to a gold referrenced standard or will we screw them?   

Mon, 11/07/2011 - 13:35 | 1853764 Big Slick
Big Slick's picture

?? I understand how that is possible for US, but how for EUR?  Who holds the gold?  Or at least how can it be considered pooled to support (when multiple parties w varying interests own it)?  

Nonetheless, it seems to me that given a 70% backing of gold for US (even EUR if possible), that we should be able to extrapolate a ballpark value per ounce once the gold standard returns (either by choice or by mkt insistance/force).  Is an accurate calculation like this possible?

Brodsky on Chris Matrenson interview estimated just north of $10,000/oz (for US money/US gold).

Mon, 11/07/2011 - 09:47 | 1852726 tmosley
tmosley's picture

When the king can't command the tide, call an emperor? 

Mon, 11/07/2011 - 09:58 | 1852763 Smiddywesson
Smiddywesson's picture

no offense, buddy.

But we've been waiting for the crash for the last three years.

It ain't gonna happen.

They're too smart.

I more want to understand this than to defeat it.  Everytime we have a population boon, prosperity, deregulation, and finally, financial innovation, we have a crash.  The only difference today is we globalized our economy and financial systems so the crash will be global.  It's our nature to behave in this manner as we are lemmings.

  So how are you going to fight human nature and history?  You are not.  As for TPTB, no matter how intelligent or powerful they are, they are not either.  That is why they are kicking the can and stacking gold.  They know they cannot prevent the crash and are making the necessary arrangements, so that when it all comes crashing down, they sit atop the steaming pile of wreakage. 

Mon, 11/07/2011 - 09:11 | 1852569 bdc63
bdc63's picture

They've been treading water and kicking cans since July.  It was obvious to most of us that they had no credibility back then.

Mon, 11/07/2011 - 09:26 | 1852640 Big Slick
Big Slick's picture

Starting to think about paying bigger premiums for further strike dates.

(of course this means the end is near)

Mon, 11/07/2011 - 09:12 | 1852570 Comay Mierda
Comay Mierda's picture

time to bomb iran and rally the sheeple behind their fearless leaders

Mon, 11/07/2011 - 09:14 | 1852578 bdc63
bdc63's picture

It certainly seems that's where we are headed.

Mon, 11/07/2011 - 09:20 | 1852609 the not so migh...
the not so mighty maximiza's picture

it will piss off Russia, we will have to attack something else

Mon, 11/07/2011 - 09:25 | 1852634 bdc63
bdc63's picture

False flag "Iranian" attack on Isreal.  Isreal retaliates.  We stand ready in the theater to support Isreal, but stay neutral until one of our carriers is "false flagged" and blamed on Iran ...

Yadda, yadda, yadda ... WWIII

Mon, 11/07/2011 - 09:22 | 1852622 Sudden Debt
Sudden Debt's picture

Could that be the reason why the Iran nuclear facilities are on the front page of the newspapers today :)


Mon, 11/07/2011 - 09:33 | 1852662 Comay Mierda
Comay Mierda's picture

yea they kinda look like the WMD sites that were supposedly all over the place in iraq

Mon, 11/07/2011 - 09:53 | 1852748 SheepDog-One
SheepDog-One's picture

Hole in the ground....couple pipes strewn about....MY GOD that there is one a them NUCLEAR TEST FACILITIES for sure!

Mon, 11/07/2011 - 09:13 | 1852574 HelluvaEngineer
HelluvaEngineer's picture

The United States fought a bloody civil war in the nineteenth century to stop states seceding from the union.

But my public school teacher told me it was all about slavery!  Now I believe nothing.

Mon, 11/07/2011 - 09:17 | 1852595 Conrad Murray
Conrad Murray's picture

My paramount object in this struggle is to save the Union, and is not to either to save or to destroy slavery. If I could save the Union without freeing any slave I would do it - Lincoln


Mon, 11/07/2011 - 09:21 | 1852617 HelluvaEngineer
HelluvaEngineer's picture
“History is written by the victors.”
Mon, 11/07/2011 - 10:37 | 1852869 earleflorida
earleflorida's picture

thoughtless statement

Mon, 11/07/2011 - 09:22 | 1852621 GeneMarchbanks
GeneMarchbanks's picture

So that is very apropos; simultaneously the saddest thing I've ever read.

Thank you Conrad.


Mon, 11/07/2011 - 09:21 | 1852612 Bicycle Repairman
Bicycle Repairman's picture

The idea that German and French tanks are going to roll to preserve this union is a little extreme.  But it seems that someone (outside of the EU?) wants precisely that.

Mon, 11/07/2011 - 09:24 | 1852631 HelluvaEngineer
HelluvaEngineer's picture

Likely inside and outside the EU.  There is great money to be made in financing wars.  It would essentially hit the reset button on the ponzi clock.  Both sides would be financed by the cartel.

Mon, 11/07/2011 - 09:21 | 1852618 JPM Hater001
JPM Hater001's picture

Actually, the Civil War was a moral victory and a Constitutional failure.  There is nothing in the Consitution that says you cant leave...

Mon, 11/07/2011 - 09:43 | 1852704 TorchFire
TorchFire's picture

"The United States fought a bloody civil war in the nineteenth century to stop states seceding from the union."

While in no way defending slavery, one must consider that via the civil war, "The United States" (an imposter) destroyed true sovereignty as it was intended, effectively crushing "These United States".  From that point forward the money interests built their power more rapidly.  From that point forward, CENTRAL control has accelerated. Get ready for them to ratchet up control again on the coat tails of any available moral cause, real or imagined. There are always legitimate wrongs that can be conscripted for purposes of proposing a solution which facilitates the expansion of central banks... same old song.


Mon, 11/07/2011 - 09:52 | 1852740 tmosley
tmosley's picture

Exactly.  The correct course of action would have been to allow them to leave, and take them back when their economy collapsed.

Slavery is not a sustainable source of labor, and an economy built on the back of slaves will collapse in a hurry.  Only freemen have the initiative to innovate.  There is a reason the South was technologically backwards from the get-go.

Mon, 11/07/2011 - 10:11 | 1852794 Withdrawn Sanction
Withdrawn Sanction's picture

The other alternative of course was to follow the British example:  Buy the slave owners' "property" and thereby end slavery as a form of labor.  Britain managed to shed its version of the "peculiar institution" without a war, while Lincoln chose another course, which cost us 600,000 men and left us w/the birth of a centralized monster we live with today.

Mon, 11/07/2011 - 10:35 | 1852829 Smiddywesson
Smiddywesson's picture

Yup:  Recipe for destroying a republic:

  1. The Civil War ends state sovereignity
  2. Woodrow Wilson's embracing global government and central banking
  3. FDR destroying what was left of state soverignity and creating welfare state programs for political gain.  This is the final nail in the state soverignity coffin (Burn in Hell Franklin) and taking us off the gold standard.
  4. Vietnam initiates war on a credit card policies
  5. Nixon takes us off the gold standard
  6. Reagan, Bush, Clinton, Bush, and Obama ramp discretionary spending and put us into a state of perpetual warfare regardless of the party in power.
  7. Globalize your economy based in theory on competitive advange in making physical things, but do so with a service based economy where there is no competitive advantage vis a vis countries with a lower standard of living.
Mon, 11/07/2011 - 09:52 | 1852738 Mike7.62
Mike7.62's picture

They also failed to mention, as does this WSJ article,  that joining our Union (USA) was also a voluntary act, and that the secession of the 13 states which did so was Constitutional, at least according to the Declaration of Independence and the understanding of the Founders. Lincoln and the business interests in the North had other ideas and prevented it by force of arms-though not very successfully at first. The PIIGs and especially the smaller states such as Slovakia should take the offer and leave.

Mon, 11/07/2011 - 09:13 | 1852575 navy62802
navy62802's picture

We have to remember that this is Europe. Things in Europe move more slowly than they do in the United States, including their epic failures. I'm not surprised that they keep drawing this out. However, it seems that it's all finally unraveling, as we knew it eventually would.

Mon, 11/07/2011 - 09:16 | 1852590 sabra1
sabra1's picture

so. you're telling me european porn movies are, like, 4 hours long?

Mon, 11/07/2011 - 09:37 | 1852680 Big Slick
Big Slick's picture

"so. you're telling me european porn movies are, like, 4 hours long?"

No the porn movies are 8 hours long.  Its the snuff films that are 4 hours.

Mon, 11/07/2011 - 09:18 | 1852591 bdc63
bdc63's picture

REGARDLESS of what MerKozy says publically, when push comes to shove and their backs are against the wall, they will PRINT, PRINT, PRINT -- even if Greece and Italy refuse ALL austerity measures.

That will delay the unraveling.  But unravel they will.

Mon, 11/07/2011 - 09:22 | 1852620 JPM Hater001
JPM Hater001's picture

Did you include Alabama.  Things move pretty slow in Alabama.

Mon, 11/07/2011 - 09:14 | 1852579 slaughterer
slaughterer's picture

If Merkozy = no credibility, then rumors/press based on Merkozy = no credibility, then market rises based on the past press for Merkozy = no credibility = market correction imminent. 

Mon, 11/07/2011 - 09:16 | 1852589 navy62802
navy62802's picture

Shhh!! You're not supposed to connect the dots like that!

Mon, 11/07/2011 - 09:26 | 1852613 bdc63
bdc63's picture

That is EXACTLY right slaughterer.

THE DAY that rumors and future promises of future meetings no longer rally the stock market is THE DAY that their only option left is to PRINT!, PRINT!, PRINT! their way out of this.

Mon, 11/07/2011 - 09:14 | 1852580 The Limerick King
The Limerick King's picture



Merkozy have lost all their cred

Integrity has all been shed

They both now get by

On the next biggest lie

'Till the dream of the Euro is dead

Mon, 11/07/2011 - 10:35 | 1852857 TheFourthStooge-ing
TheFourthStooge-ing's picture


You're on a roll today.


Mon, 11/07/2011 - 11:33 | 1853105 Cognitive Dissonance
Cognitive Dissonance's picture


Just wanted you to know I have pulled out that article you worked with me on and I am editing it for posting either later this week or early next.

Mon, 11/07/2011 - 14:32 | 1854002 The Limerick King
The Limerick King's picture

I was worried about you CD...haven't heard much from you lately.  I hope all is well...

Mon, 11/07/2011 - 09:15 | 1852585 Catullus
Catullus's picture

Loss of credibility is an asset.  Ask JP Morgan

Mon, 11/07/2011 - 09:16 | 1852586 BlueStreet
BlueStreet's picture

ES should turn green any second now.

Mon, 11/07/2011 - 09:19 | 1852600 HelluvaEngineer
HelluvaEngineer's picture

It already erased most of the overnight losses on the Berlusconi rumor.

Mon, 11/07/2011 - 09:16 | 1852587 MS7
MS7's picture

It's so nice to see Merkozy put in their place. They act like the King and Queen of Europe.

Mon, 11/07/2011 - 09:17 | 1852594 slaughterer
slaughterer's picture

Not to complain, but ZH needs to cover the deficit super-committee circus a little more.  Do not let the  zero credibility leaders of Europe distract ZH from the zero credibility leaders in the USA. 

Mon, 11/07/2011 - 09:24 | 1852630 Clint Liquor
Clint Liquor's picture

There is time. First Europe, then Japan, then the USA.

Mon, 11/07/2011 - 09:39 | 1852689 Wipeout2097
Wipeout2097's picture

Indeed, ZH is becoming an useful distraction to what happens in Amerika

Mon, 11/07/2011 - 10:52 | 1852922 slewie the pi-rat
slewie the pi-rat's picture

ordinarily, i welcome new bloggerz

not a troll like you, tho, toy-boy2097



Mon, 11/07/2011 - 09:43 | 1852702 Tyler Durden
Tyler Durden's picture

Like Noda, we are watching it closely:

  • U.S. Supercommittee ’Won’t Be Pretty to Watch": AEI Makin’s
  • Congressional budget negotiators “keep running into this dead end” between cutting taxes and spending, AEI economist John Makin tells BTV’s Betty Liu.
  • "It won’t be pretty to watch’’ the supercommitee closing in
    on Nov. 23 deadline; lawmakers may press for extension:
  • "They’re in a dilemma here;’’ reform of entitlements is
    “after the election issue”

If and when anything actual happens ZH readers will be the first to know

Mon, 11/07/2011 - 09:54 | 1852752 Big Slick
Big Slick's picture

Tyler - ZH is incredible.  No site like it!!  Amazing analysis.  Thank you.  How about an occassional link to a trading strategy you find interesting?  Your insight on possible timelines would be cool too.

Mon, 11/07/2011 - 09:19 | 1852601 I am a Man I am...
I am a Man I am Forty's picture

The US should have allowed the states to secede, all the centralized power in DC has become a disgusting mess.  

Anyone with half a brain new the euro was going to fail, not sure why anyone wants to keep the eurozone together except for banks that made bad bets and the politicians that came up with the idea in the first place.

Mon, 11/07/2011 - 13:01 | 1852670 Azannoth
Azannoth's picture

The purpose of Unified Europe was to eradicate the natural competition between nation states (see the push for unified taxation and sharing of personal bank details).

They wanted and 'nearly' succeeded in creating a Gulag State, gulags had few guards and no fences because you had nowhere to escape, unless you wanted to freeze to death in the Tundra, they figured if they create 1 Super State people will no longer have an 'out option'.

Well now they are throwing the kitchen sink at preserving their power monopoly on the lives of Europeans.

With Nationalism pretty much illegal with even a mention of it getting you in hot water, they practice the teachings of Marx and Mao to the letter, to socially re-engineer a Continent to create 1 unified pool of (virtually) slave labor, putting down any1 who resists. No wonder you get people like Anders Breivik who go 'Amok' at the prospect of seeing their Nation reduced to the form of a Castrated Gagged Eunuch of the New World Order

Mon, 11/07/2011 - 09:19 | 1852605 Azannoth
Azannoth's picture

Title should say Europe hast lost all it's Credit-ability ;)

Mon, 11/07/2011 - 09:20 | 1852611 Fix It Again Timmy
Fix It Again Timmy's picture

They are politicians, ipso facto - pieces of CRAP...

Mon, 11/07/2011 - 09:23 | 1852623 FranSix
FranSix's picture

No chance The Fed will go broke, by way of example, but here's a very good chance now that the Eurozone central bank can actually fail, while various European countries revert to their own currencies.

Mon, 11/07/2011 - 09:23 | 1852624 Clint Liquor
Clint Liquor's picture

But they are the elite. They went to the best schools. Their parents were the elite. They give inspiring speeches. They live in luxury. Surely, they know what is best for everyone.

Mon, 11/07/2011 - 09:23 | 1852626 kaiten
kaiten's picture

Well, their plan is to play for time, they dont care about credibility.

Mon, 11/07/2011 - 09:24 | 1852635 Yellowhoard
Yellowhoard's picture

The Deficit Central Committee will fail to agree on anything.

The script calls for Congrssional failure.

Only then can our savior impose martial law and bring order to the chaos.

Mon, 11/07/2011 - 09:29 | 1852642 Use of Weapons
Use of Weapons's picture

“Toute nation a le gouvernement qu’elle mérite.”

Joseph De Maistre1


Although, perhaps more aptly - “La justice flétrit, la prison corrompt et la société a les criminels qu’elle mérite.”

  • 1. Note - neither Abe Lincoln nor Tocqueville originated this saying - another one of those narrative myths - it was originally an indictment of Democracy and a pro-Monarchist statement
Mon, 11/07/2011 - 09:34 | 1852664 MFL8240
MFL8240's picture

Wall Street Journal Lays It Down: "Merkel And Sarkozy Have Lost Credibility"


Its better to lose than to never have as in the case of Obama, Biden, Bernanke and Geithner.  When you never had any credibility, its impossible to lose it.

Mon, 11/07/2011 - 09:35 | 1852673 tony bonn
tony bonn's picture

"Nothing these leaders say any longer carries any credibility."

no thinking person ever believed what these two tards thought or said as such claptrap from tweedle dee and tweedle dum were meant for momo bunnies, day traders, and fucktards to buy one more day without a market implosion and "credit event."

Mon, 11/07/2011 - 09:44 | 1852686 GoingLoonie
GoingLoonie's picture

As stated in the past, the US Civil War was about economic surfdom, not leaving the union.  Ending slavery was just a way to crush the farmers in the south, there was no concern about the morality of it.  The same issue is alive and well today.  The same banking families are in control, and the Cities of New York and Washington DC are still thinking they are the center of the Universe.  Hopefully, the results will be different this time.  Let's move the US Capital to Omaha, Nebraska!  At least that way decision makers will have to understand from whence their food comes.

Mon, 11/07/2011 - 09:41 | 1852693 Rip van Wrinkle
Rip van Wrinkle's picture


If you used their language, it would be called 'lying'. They've spun so much, the web they've woven is consuming them. One lie leads to another and another and another.......And not before time, they're being found out. It couldn't happen to a nicer bunch of charaltans.

Lamp posts anyone?


Mon, 11/07/2011 - 09:43 | 1852705 mtremus
mtremus's picture

Nothing these leaders say any longer carries any credibility.

When did they ever have any credibility in the first place?

Mon, 11/07/2011 - 09:48 | 1852728 monopoly
monopoly's picture

Exellent article and the dominos are falling one by one. I am getting a little impatient though waiting for the "feature presentation". When that starts going to go back out to the lobby and get a giant $6.00 popcorn with free refills. Gonna need it.

Mon, 11/07/2011 - 09:51 | 1852733 monopoly
monopoly's picture

Damn, no put options on GRPN yet.

Mon, 11/07/2011 - 09:51 | 1852736 orangedrinkandchips
orangedrinkandchips's picture

This reminds me of the great movie Stripes....where Dewey Oxburger comes clean....about his weight problem...then you have everyone writing about the most obvious shit....and we still are "shocked"....

Europe has problems? "noooooo....NOOOOOO!!"

check out the's a classic!!!!

Mon, 11/07/2011 - 09:56 | 1852756 Big Slick
Big Slick's picture

and that's the fact, Jack.

Mon, 11/07/2011 - 09:51 | 1852737 Stocklooker
Stocklooker's picture

The Wall Street Journal (Bankster Puppet) simply wants the European Leaders to bow to the Bankster Agenda and enforce the bailouts. They will press for One Primary Central Bank for Europe (and eventually 1 banker for the world). Just a matter of time and a crisis to precipitate the people's call for more regulation.

And yes, war with Iran is coming. The Banksters need a diversion. I am expecting a false flag attack to precipitate the start, but the banksters are getting desperate now so it might not take that......

Mon, 11/07/2011 - 09:55 | 1852755 Stocklooker
Stocklooker's picture

The Wall Street Journal (Bankster Puppet) simply wants the European Leaders to bow to the Bankster Agenda and enforce the bailouts. The Leaders that leave office in the near future (Italy, Greece and eventually others) are probably just being paid handsomely to step down. They can do it nicely and be paid for their service, or they can resist, in which case compromising pictures will be released....same 'ole story.

And yes, war with Iran is coming. The Banksters need a diversion. I am expecting a false flag attack to precipitate the start, but the banksters are getting desperate now so it might not take that......

Mon, 11/07/2011 - 13:21 | 1853706 clawfoot tub
clawfoot tub's picture

And the "can" will continue to be "kicked" until people realise that "government" doesn't need to borrow at interest from a few families who are in it for profit. Everyone we see or hear about regarding this stage play are merely paid actors.

Mon, 11/07/2011 - 10:01 | 1852772 Zgangsta
Zgangsta's picture

Meanwhile, the one guy who knows how to whip a country into shape is on his last legs.

No, not the Emperor of Japan...this guy:

Mon, 11/07/2011 - 10:20 | 1852814 Zymurguy
Zymurguy's picture

People in Merkels camp have said no way to using Deutchlanders gold as collateral to support these other countries.  I think the rubber has met the road.

Mon, 11/07/2011 - 10:28 | 1852835 Snakeeyes
Snakeeyes's picture

Greek 1 yr yield hits 238.24%. Not a lot of confidence in Merkel or Sarkozy .. or Bunga-Bunga or the Greeks.

Face it. Everyone overspent to keep the mobs at bay. Eventually, you run out of money and have to print fiat currency to pay their bills. It will be a PAINFUL end game.

Mon, 11/07/2011 - 10:29 | 1852839 digalert
digalert's picture

This isn't about europe, this isn't about the euro, this isn't about global markets. This is about CYA!!!

Mon, 11/07/2011 - 10:32 | 1852849 slvrizgold
slvrizgold's picture

You can't have civil wars anymore with an Internet.  The only way TPTB can get people into wars today are for them to stage shocking false flag attacks perpetuated by manufactured boogeymen.   And after the last one, people are even wise to that trick.   If there had been an internet in 1865, Lincoln would not have lasted long enough to visit the Ford Theater.   The North and South armies would have decended on the politicians and the capital. 

Mon, 11/07/2011 - 10:36 | 1852865 jjsilver
jjsilver's picture

Does anyone honestly believe anything the WSJ  says is not first approved by the gatekeeper murdoch an enemy to the people of the world. See how the writer tries to rewrite history re: the civil war.

Mon, 11/07/2011 - 10:41 | 1852887 flight77
flight77's picture

The Wall Street Journal has lost any credibility long time ago

Mon, 11/07/2011 - 10:55 | 1852929 RiskAverseAlertBlog
RiskAverseAlertBlog's picture

Go back to what Marty Feldstein said about the euro before its inception in 1999 and discover today's chaos was all very predictable and likely to lead to war. Such is the nature of imperial finance, the likes of which the U.K. has had centuries perfecting. The "shock" is not that euro zone's sovereign leaders would be discredited. Rather, it is that the United States is on board.

Mon, 11/07/2011 - 11:04 | 1852974 Ralph Spoilsport
Ralph Spoilsport's picture

The US should return to one of its Core Competencies : Breakfast!

The weather is turning cold in our unheated homes. The street lights are being turned off or stolen for scrap. Potholes are swallowing our Prius sedans. With all of us unemployed just sitting around on our threadbare couches staring at our useless HD TVs, our thoughts turn to a hearty breakfast.

I'm long Pork Bellies, and I'm having a conference with butter and egg men this afternoon. Buy!

Mon, 11/07/2011 - 11:16 | 1853015 slewie the pi-rat
slewie the pi-rat's picture



imo, one of the pssibilities here is that the banksters are replacing/buying/discrediting  politicians on a regullar basis, till they get the debt slavery they want

  1. the "new" goobermint in ireland seems ready to cooperate
  2. g-pap is no longer in power
  3. burlesque-oni is negotiating his terms of endearment
  4. ITA is at their mercy, or soon will be
  5. wsj now calling out sark0-merk0 for months of not-ready-for-prime-time clown car capers
  6. portugal & spain are relatively helpless w/out the wwCentralBanksterz.con and/or politically-negotiated 'haircuts'
  7. about 5 possible "elections"..., ...and/or plebiscites,...or not...

pssst!  don't tell anybody!  default is a fabulous strategy for these piigs nations, here, but can you imagine the "behind-the-scenes" pressure to adjust, conform, and play along w/ the banksters?  [gun-to-the-head dept.]

they did get to throw a pie in timmah's face, tho......

fuking pies flying now, eh?

let's get gallagher in here w/ the sledge-0-matic and some big watermelons [banks], too!

you know how the zeroHeads like those big watermelons, right, BiCheZ? 

Mon, 11/07/2011 - 11:20 | 1853042 sschu
sschu's picture

Read the last paragraph:

What started as a financial crisis is now a full-blown political crisis in two euro-zone states. If the euro zone is to survive, it is now clear it will only do so by increasing its democratic deficit. The economic policies of Southern Europe will in future be dictated by a Brussels-based technocratic elite, which voters will be asked to rubber-stamp on pain of economic ruin. What is also clear is that the one thing that has always seemed vital to any lasting solution to the crisis—large-scale fiscal transfers from Germany to the periphery and a willingness to underwrite future debt—looks less likely than ever. The euro will outlive its six-week deadline, but its long-term survival remains in serious doubt.

It was a financial crisis, is now a political crisis and when no political solutions are forthcoming, the problems will be handed to the people in the form of a collapse.

Also, notice near the end where the writer essentially proposes “large-scale fiscal transfers from German” as the solution.  Socialize the banks loses.  This sounds all so familiar. 


Mon, 11/07/2011 - 11:52 | 1853222 whiskeyjim
whiskeyjim's picture

The WSJ article is fundamentally misleading. Sure, we can't trust the politicians. But not because the Eurozone is not dedicated to the Euro like USA is to their union. The Eurozone was always basically just a common currency. Other than allowing labor to walk across borders, there is still virtually no economy of scale; every country retains its unique combination of regulations and subsidies to keep out foreign competition. You can't even sell commodities like copper from France to Britain in any economical way, much less the rest of Europe.

The whole thing is a political, bureaucratic boon doggle. Always was. They should have just left it with a common currency with floating exchange rates. Simple.

Mon, 11/07/2011 - 12:19 | 1853364 randomdrift
randomdrift's picture

"The EZ is voluntary"  ---  Is that why "EZ" is pronounced "easy."


Nevertheless, that is best thing I've heard out of Europe for a long time.

Unfortunately, the politicians who said it have no credibility. 

Mon, 11/07/2011 - 13:49 | 1853828 Grand Supercycle
Grand Supercycle's picture

Latest NASDAQ chart porn suggests fun times ahead:

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