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What Happened After Europe's Last Three Currency "Unions" Collapsed

Tyler Durden's picture





 

It may come as a surprise to some of our younger readers, that the Eurozone, and its associated currency, is merely the latest in a long series of failed attempts to create a European currency union and a common currency. Three of the most notable predecessors to the EUR include the Hapsburg Empire, the Soviet Union, and Yugoslavia. Obviously, these no longer exist. Just as obvious, all of these unions, having spent time, energy, money, and effort to change the culture and traditions of member countries and to perpetuate said unions, had no desire, just like Brussels nowadays, to see these unions implode. The question then is: what happened after these multi-nation currency unions fails. VOX kindly answers: "they all ended with disastrous hyperinflation."

Just in case anyone missed it, here it is again from VOX:

In the last century, Europe saw the collapse of three multi-nation currency zones, the Habsburg Empire, the Soviet Union, and Yugoslavia. They all ended in major disasters with hyperinflation. In the Habsburg Empire, Austria and Hungary faced hyperinflation. Yugoslavia experienced hyperinflation twice. In the former Soviet Union, ten out of 15 republics had hyperinflation (e.g. Pasvolsky 1928, Dornbusch 1992, Pleskovic and Sachs 1994, and Åslund 1995).

So... trying to pull infinite demand from the future to the present once the ability to fund said present deferred demand ends, has consequences? Oh yes, Virginia. It does indeed:

The output falls were horrendous and long lasting. The statistics are flimsy, but officially the average output fall in the former Soviet Union was 52%, and in the Baltics it amounted to 42% (Åslund 2007, 60). Five out of twelve post-Soviet countries – Ukraine, Moldova, Georgia, Kyrgyzstan, and Tajikistan – had not reached their 1990 GDP per capita levels in purchasing power parities by 2010. Similarly, out of seven Yugoslav successor states, at least Serbia and Montenegro, and probably Kosovo and Bosnia-Herzegovina, had not exceeded their 1990 GDP per capita levels in purchasing power parities two decades later (World Bank 2011). Arguably, Austria and Hungary did not recover from their hyperinflations in the early 1920s until the mid-1950s. Thus half the countries in a currency zone that broke up experienced hyperinflation and did not reach their prior GDP per capita in purchasing power parities until about a quarter of a century later.

What was the catalyst:

...systemic change, competitive monetary emission leading to hyperinflation, collapse of the payments system, exclusion from international finance, trade disruption, and wars.

It's all good though: Europe has a beneficial donor with an endless sack of money - Germany - and 80 some million people who will never, ever consider voting out those politicians who jeopardize their standard of living (regardless how it was obtained, but hard work is a distinct possibility). Ever. Or maybe they will? Maybe they will realize, as they should have over a year ago, that each passing day that nothing changes, and the broken status quo persists, simply means the pain in the inevitable end will merely be that much greater? If recent elections are any indication, Europe should probably be very concerned. Of course, this being Europe, and the market being the market, the fact that there is reason to worry, will provide the market with reason not to worry. After all someone else will make everything better: the central planners made risk of failure illegal.

Then again...

Sinn (2011) has argued that “the Eurozone payments system has been operating as a hidden bailout whereby the Bundesbank has been lending money to the crisis-stricken Eurozone members via the Target system.” He has alternatively proposed to cap the Target2 balances, settle them in hard assets, or transform them into short-term Eurobonds. Karl Whelan (2011) and others oppose Sinn, arguing that the Bundesbank has claims on the ECB system as a whole, not on individual national central banks. Whelan points out that limiting a Target2 balance would amount to cutting out a country from the euro system.

Some will say that this €700 billion + contingent liability is not really a liability until what has to happen - a member country departing - finally departs. Which it will. Sooner or later. So all debate is absolutely idiotic in this regard.

If one country (Greece) departs from the Eurozone or if its Target2 balances are capped, the current slow bank run from the south will accelerate quickly and become a massive bank run from most banks in southern Europe, and the banking system would stop working. The Eurozone payments system would stop functioning because it is centralized to the ECB. To re-establish a payments system is both politically and technically difficult. In the former Soviet Union, it took three years to do so. Currency controls would arise and a liquidity freeze would occur. If the drachma were reintroduced in the midst of a severe financial crisis, its exchange rate would plummet like a stone by probably 75%-80%. High inflation would result and mass bankruptcies ensue because of currency mismatches. Output would plunge and unemployment soar. Greece would experience a new default and other countries would follow.

 

For all these reasons, Greece or any other financially weak country is unlikely to depart from the Eurozone. In the three hyperinflationary currency union collapses, it was small, wealthy counties that left first: Czechoslovakia from the Habsburg Empire, Slovenia and Croatia from Yugoslavia, and the three Baltic states from the former Soviet Union. The countries that departed early and resolutely were most successful. Hence, the main concern should be whether small, wealthy northern countries want to abandon the Eurozone.

Finally considering the article was written by a member of the status quo who stands to lose his tenure, and his livelihood, if the voodoo he preaches is found to be hollow, the conclusion is obvious:

The conclusion is that the Eurozone should be maintained at almost any cost. All the economic problems in the current crisis can be resolved within the Eurozone. In order to maintain the Eurozone Eurozone-wide clearing must be maintained in full. The Target2 balances should be resolved by reforms, not by capping national balances. The only reasons for a breakup of the Eurozone would be that Eurozone governance fails completely or that one nation decides to leave. If the breakup starts, it would be better to agree on a complete and speedy dissolution into the old national currencies.

The "any cost" of course, has to be bourne by Germany. Which this time around is expected to merely stand there as its deadbeat neighbors continue to mooch off its generosity. Oddly enough, all the previous failed monetary regimes had a strong and supposedly munificent hegemon too, to pull a Realpolitik term.

What is certainly obvious is that in none of the previous occasions of monetary union collapse did the member countries think anything else. In fact, we can say what tenured economists said about the specter of the Hapsburg, the Soviet and Yugoslav collapse with absolute certainty: "the conclusion is that these should be maintained at almost any cost."

They weren't. And "disastrous hyperinflation" followed.

This time will surely be different though.

 


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Tue, 08/21/2012 - 15:38 | Link to Comment francis_sawyer
francis_sawyer's picture

All your wheelbarrows are belong to us...

Tue, 08/21/2012 - 15:43 | Link to Comment Ahmeexnal
Ahmeexnal's picture

After Tito's death in 1980, the germ-ans duped the Yugoslav leaders into massive debt.
Germ-any deliberately destroyed and raped Yugoslavia.
It was the people of the former Yugoslavia who paid for germ-an "reunification". And yet, the germ-an elite charged the germ-an sheeple for this non-event too.
The rest of europe was also complicit in the crime against Yugoslavia, as they sold weapons to all sides in conflict and stood by as the genocides ramped up.
The irony is that the balkans have always been ahead in time of europe.
What happened in the former Yugoslavia is what will soon happen in the rest of europe.....IN SPADES.

Tue, 08/21/2012 - 15:47 | Link to Comment zilverreiger
zilverreiger's picture

It was the people of the former Yugoslavia who paid for germ-an "reunification".

lol  rich

Tue, 08/21/2012 - 15:57 | Link to Comment Debtonation
Debtonation's picture

The government should ban hyperinflation.

Tue, 08/21/2012 - 16:11 | Link to Comment Nothing To See Here
Nothing To See Here's picture

As well as poverty and unemployment. There, problem fixed, everyone is rich.

Tue, 08/21/2012 - 16:19 | Link to Comment Dalago
Dalago's picture

Its designed to fail.  So when the end hits a power grabing opportunity presents itself.  One world currency?  Revolution?  We shall see.

Tue, 08/21/2012 - 16:35 | Link to Comment TruthInSunshine
TruthInSunshine's picture

There you guys go with those wacky conspiracy theories again.

Her come the ludricous claims that the U.S. Joint Chiefs of Staff signed off on a proposal to wage a lengthy series of false flag attacks killing American Citizens on U.S. soil and blame Cuba for it as a pretext for war; or that the Gulf of Tonkin incident really involved a U.S. warship firing on North Vietnamese vessels in unprovoked fashion, and then the filing of an intentionally false claim that North Vietnamese vessels attacked a U.S. warship two days later ...or a variety of other equally implausible, wild, wacky conspiracies...

 

You guys and your conspiracies.

 

Some of you are probably going to claim that what we know as the "U.S. Dollar" is actually a Federal Reserve Note, or something equally silly.

Tue, 08/21/2012 - 16:40 | Link to Comment Shocker
Shocker's picture

Whatever you want to call it. This economy is in rough shape, Financials, Businesses,... All in the same boat.

Currency problems are just another layer to the problems

 

See the daily economic problems - http://www.dailyjobcuts.com

.

Wed, 08/22/2012 - 01:35 | Link to Comment strannick
strannick's picture

"The Federal Reserve can provide currency for the administrations programs and pensions into the future, it just cant guarantee it's purchasing power".

 -Alan Greenspan

Tue, 08/21/2012 - 16:41 | Link to Comment Pladizow
Pladizow's picture

Martin Armstrong - Hyperinflation occurs on the fringe. Through out history an empire with a reserve currency has never hyperinflated. They have ALL collapsed due to deflation!

Tue, 08/21/2012 - 16:58 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

Oh wait... I've seen this movie. It is really good. First Patton kicks Romell's ass across North Africa. Then Private Ryan and Tom Hanks blow up a bridge too far. A few million die, Germany gets put in detention, and Russia expands with really ugly shoes and manish looking female Olympians until Regan tears down a wall with his fucking words.

Though I must say, I don't remember the ending.

 

Tue, 08/21/2012 - 19:46 | Link to Comment Michael
Michael's picture

Congressmen are starting to warn people to get ready as I have requested. Thanks.

Survivalist congressman is ready for doomsday Rep. Roscoe Bartlett (R-MD) is one of the the country premiere proponents of preparedness against doom. By Ben Pershing, The Washington Post Posted Aug. 20, 2012, at 6:02 a.m.

Deep in the West Virginia woods, in a small cabin powered by the sun and the wind, a bespectacled, white-haired man is giving a video tour of his basement, describing techniques for the long-term preservation of food in case of “an emergency.”

“We don’t really think of those today, because it’s so convenient to go to the supermarket,” he cautions. “But you know, you’re planning because the supermarket may not always be there.”

The electrical grid could fail tomorrow, he frequently warns. Food would disappear from the shelves. Water would no longer flow from the pipes. Money might become worthless. People could turn on each other, and millions would die.

http://www.urbandanger.com/

Free online Documentary just released;

http://www.urbandanger.com/Watch-It-Online.html

 

Tue, 08/21/2012 - 17:00 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

sorry

 

Tue, 08/21/2012 - 17:05 | Link to Comment gmrpeabody
gmrpeabody's picture

"Martin Armstrong - Hyperinflation occurs on the fringe. Through out history an empire with a reserve currency has never hyperinflated."

Only because the reserve currency first implodes, like a collapsing star, and in that instant it is no longer the reserve currency. Then the explosions occur.

Tue, 08/21/2012 - 17:12 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Reserve currencies are a modern phenomenon.  He simply confirms that no one knows what will happen.

Tue, 08/21/2012 - 17:35 | Link to Comment BigJim
BigJim's picture

Exactly. There has never been an unbacked, totally fiat, reserve currency. Why would it have ever become the reserve currency in the first place if it was just paper?

When GBP lost reserve currency status through the Twentieth Century, its holders sure as shit weren't complaining about deflation as they saw its purchasing power decline by a factor of 100 as all those pounds sterling came flooding home.

   http://www.moneyweek.com/investments/currencies/fiat-money-inflation-gbp...

Martin Armstrong is always a very interesting read, but on the subject of money and gold he does say some bizarre things.

Tue, 08/21/2012 - 17:47 | Link to Comment AldousHuxley
AldousHuxley's picture

despite being fiat....central banks measure each other with gold as collateral....

AND having big guns help too.

 

paper is now backed by gold and guns folks.

 

 

 

Tue, 08/21/2012 - 16:32 | Link to Comment midtowng
midtowng's picture

Brilliant! Genius!

Unicorns and rainbows for everyone

Tue, 08/21/2012 - 18:14 | Link to Comment Zap Powerz
Zap Powerz's picture

OMFG!

Its so simple and crazy it just might work! 

Tue, 08/21/2012 - 21:29 | Link to Comment masterinchancery
masterinchancery's picture

Hyperinflation should ban the government, and hopefully will.

Tue, 08/21/2012 - 15:57 | Link to Comment AldousHuxley
AldousHuxley's picture

you can't carry piles of money on your own,

so you have to use a wheelbarrow to haul around money,

but to buy the wheelbarrow, you need piles of money.

 

Germany's currency crashed due to losing a war.

to solve that debt problem, they went to another war with more debt.

When they lost the second war they owed even more.

 

Becareful of leadership who tries to solve problems with war.

US seems to go to war every time they print money to cover up the financial crisis.

 

 

Tue, 08/21/2012 - 16:00 | Link to Comment john39
john39's picture

but the bankers won all those wars....   they did build those wars in fact.

Tue, 08/21/2012 - 16:55 | Link to Comment Pladizow
Pladizow's picture

Credit cards replace wheel barrows!

Tue, 08/21/2012 - 17:52 | Link to Comment AldousHuxley
AldousHuxley's picture

during hyperinflation, credit cards would go out of business because of skyrocketing short term rates.

Tue, 08/21/2012 - 20:33 | Link to Comment hmmtellmemore
hmmtellmemore's picture

Are you sure? What about adjustable rates?

Wed, 08/22/2012 - 08:59 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

perhaps.... PERHAPS even cause people will not pay the bill at the end???

Tue, 08/21/2012 - 16:07 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Germany crashed by its own design.  Reparations would not be met voluntarily.  So, Germany waited, forestalled, held off, postponed payments, reborrowed, retooled, rebuilt, repopulated, retrained, reorganized, and then re-invaded. 

Germany never lost that war, according to the Germans themselves, they simply retreated over the course of a generation.  Those elites seen as responsible for the retreat were marginalized or worse.  Those who would not retreat, namely Hitler, were eventually elevated.  Hitler was a Bavarian, local phenomenon during the Weimar Inflation.  He had analogues in other regions.  He survived the waves of purge.  He was voted into his ultimate power.

 

Tue, 08/21/2012 - 16:20 | Link to Comment Cast Iron Skillet
Cast Iron Skillet's picture

Hitler was an Austrian, not a Bavarian.

Tue, 08/21/2012 - 17:13 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Thanks wikiAhole, where did he gather his strength?  In ... BAVARIA.

Tue, 08/21/2012 - 17:32 | Link to Comment AldousHuxley
AldousHuxley's picture

hitler was fascist, nationalist, socialist, anti-communist, capitalist, imperialist, democratic, whatever you want to get him more power -ist.....

 

people like hitler comes to power when status quo sells their citizen to foreign bankers.

 

poor country = war lords

 

Wed, 08/22/2012 - 05:48 | Link to Comment Disenchanted
Disenchanted's picture

 

 

 

People like Hitler come to power when the 'right people' want them to...the 'right people' also provide the financing for the past, present and future Hitlers of the world.

Wed, 08/22/2012 - 09:01 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

is the USA a poor country? cause i was usend to think that they are the fucking king of all warlords

Tue, 08/21/2012 - 17:26 | Link to Comment optimator
optimator's picture

Even more exact description, he was the "Bohemian Corporal'.

Tue, 08/21/2012 - 17:57 | Link to Comment ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Austrians are the best at marketing;

Beethoven (German) considered Austrian

Hitler (Austrian) considered German

Swarzenegger (Actor) considered Politician

Wait, was perhaps Orwell really Austrian?

Tue, 08/21/2012 - 16:56 | Link to Comment e2thex
e2thex's picture

Reparations would not be met voluntarily.

 

You imply that:

the terms could be met but Germany refused to do so and 

they  had a say as to the terms when they were  originally drawn up.

 

Amazing.


Tue, 08/21/2012 - 17:17 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

And...they ceded the Ruhr and its fruits voluntarily.  OK. You're right.

I love the CB apologists that think everything is an accident.  It isn't.  Bernanke is dumb, I know.  Sure he is.  He has no idea what he is causing.  Sure he doesn't.  And he doesn't understand why he needs a security detente for public appearance.  Of course not.  And he doesn't understand why some of the chief architects of the Weimar event were assassinated midway through. 

Wed, 08/22/2012 - 09:06 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

if they didnt lost the war, TELL ME WHY:

- they accepted to pay for war reparation?

- they ceded Ruhr which was badly important for them?

- they reduced their army to 100k man?$

-......

Tue, 08/21/2012 - 16:31 | Link to Comment Turin Turambar
Turin Turambar's picture

You need a truck to carry the paper money needed to buy the wheelbarrow, so you can carry the money needed to buy some bread without having to use the truck, especially after you've run out of daughters needed to acquire gasoline. :-(

Tue, 08/21/2012 - 16:59 | Link to Comment CABill
CABill's picture

All wars were started as economic necessity; over resources, living space, availability of food, energy suppies, populist demands for 'fair' distribution of resources, a desire for economic control through total dominance of one political party over another, deification of the state as the only hope for solutions, and to burn off inventories produced to stimulate the economy.

Also, every war was the war to end all wars; meaning that we've learned that debt and overspending causes war, and free enterprise means peace.

By the time we realize we didn't learn, we also discover we're on our way to the next war.

Tue, 08/21/2012 - 17:10 | Link to Comment Things that go bump
Things that go bump's picture

Screw that, I have not raised children and grandchildren as cannon fodder for the state.  

Tue, 08/21/2012 - 17:56 | Link to Comment AldousHuxley
AldousHuxley's picture

your children never fight each other?

 

it is part of human nature...jealousy, envy, competitiveness, etc....even among siblings.

 

Look at Koch brothers....millionare brothers who don't talk to each other....

Look at what happens to lottery winners from poor families....all kinds of emotional problems and conflicts.

 

Tue, 08/21/2012 - 18:15 | Link to Comment Things that go bump
Things that go bump's picture

You are being deliberately obtuse.

Wed, 08/22/2012 - 09:07 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

this is one of the most stupid thing i've ever heard here.

 

ASK to indios in south america if they know what is jealousy, possession, theft and so on

 

NO THEY DONT KNOW WHAT ARE

Tue, 08/21/2012 - 19:21 | Link to Comment NidStyles
NidStyles's picture

War is a by-product of Statism. 

Tue, 08/21/2012 - 20:32 | Link to Comment hmmtellmemore
hmmtellmemore's picture

I wonder about that.  By the opposite of Statism, would you point to micro-states and small states, such as Ancient Greece, Spring & Autumn China, Renaissance Italy?  All were absent the massive State we all have grown accustomed to, and all had immense leaps in creativity and intellectual thought.  No surpise there.  But they also had intense warfare between the micro-States.  So, I'm not so convinced warfare truly is a large State invention, if that's what you mean.  Maybe i missed the point of your post, if so I'm sorry.

Wed, 08/22/2012 - 05:53 | Link to Comment Disenchanted
Disenchanted's picture

 

 

Wars are very profitable...for a select few.

Tue, 08/21/2012 - 15:56 | Link to Comment TruthInSunshine
TruthInSunshine's picture

What's truly incredible is how few sheeple realize that the original epicenter of Ponzinomics and Fractional Reserve Alchemy (buying a "democratic & representative" government off wholecloth in order to enslave the citizenry & compel their government to borrow operating capital from The Money Masters), Britain, essentially declared bankruptcy in 1976, and was bailed out by the arm of the racketeering outfit referred to as the International Monetary Fund (a benevolent organization, just as is the World Bank, with the habit of claiming ownership of rainwater in exchange for financial "assistance").

That's right, bitchez, Her Majesty's Empire, with a cesspool of a capital city that is London (the counterpart to our New York City), with its financial derivative engineers who bestow many gifts upon society, is a bastardized, bankrupted bitch. It's ability to project itself as a financially solvent going concern is just another of many illusions perpetrated by the elite who meet to beat.

 

The Cabinet Papers | IMF crisis

 

In 1976 Britain faced financial crisis. The Labour government was forced to apply to the International Monetary Fund (IMF) for a loan of nearly $4 billion. IMF negotiators insisted on deep cuts in public expenditure, greatly affecting economic and social policy.

Tue, 08/21/2012 - 16:52 | Link to Comment francis_sawyer
francis_sawyer's picture

Good news is that we got the Sex Pistols, The Clash & otherwise, great album covers out of it...

~~~

http://www.feelnumb.com/wp-content/uploads/2011/02/london-calling.jpg

Tue, 08/21/2012 - 17:25 | Link to Comment Things that go bump
Things that go bump's picture

Why they continue to support that nest of cretins and deviants in Buckingham Palace is quite beyond me.  They say those dreadful "royals" are a tourist attraction that actually gives a good return on their money, but if they simply made them commoners and nationalized whatever property they could find I think it would go a long way toward replenishing British coffers. 

Tue, 08/21/2012 - 18:00 | Link to Comment AldousHuxley
AldousHuxley's picture

for cultural values, because bankers will sell out culture for profit because culture is not practical, however brings humans together and feel happier?

 

net worth of "royals" = value of nation's culture

military, finance, political are all outsourced...but cultural norms are still set by highest upper class.

 

Tue, 08/21/2012 - 18:47 | Link to Comment Things that go bump
Things that go bump's picture

Do you suppose they are going to last past the death of the present occupant?  She could go another 10 or 15 years, I suppose - God, they're a long-lived bunch.  Will a doddering 75-80 year old Charles mount the throne with his grizzled consort at his side or will they step right over him?   

Tue, 08/21/2012 - 19:29 | Link to Comment NidStyles
NidStyles's picture

They can afford the best medicine, so of course they live forever. Quite amazing considering they are inbred.

Tue, 08/21/2012 - 19:42 | Link to Comment New World Chaos
New World Chaos's picture

If they want to use them as a tourist attraction, it would be quite cheap to put them in the chimp house at the London Zoo. 

The time is soon coming when their alpha displays will have all the perceived relevance of monkey screeching, boner-flashing, and poo-flinging from behind glass.  They will be seen as pitiful relics of an uncivilized age.  The few gawkers won't be able to watch too long because they will be uncomfortable seeing parts of their own former selves. 

Wed, 08/22/2012 - 05:59 | Link to Comment Disenchanted
Disenchanted's picture

 

 

The Queen @ Buckingham Palace is for show...a dog and pony show.

 

The Crown has never been the King or Queen of England since the establishment of this corporate body. The Crown is the directorate of the corporation. The island of Britain is a financial oligarchy run by the "Crown" which refers to the "City of London," not the Queen. The City is run by the Bank of England, a "private" corporation. The City is a sovereign state located in the heart of greater London. It became a sovereign state in 1694 when king William the third of Orange privatized and turned the Bank of England over to the banksters. Considered the "Vatican of the financial world," the City is not subject to British law.

 

It has its own courts, its own laws, its own flag and its own police force, separate from the metropolitan. City (crown/corporation) police drive red police cars and their uniforms are slightly different from the Metropolitan Police. Read Here

 

It houses the privatised* Bank of England, Lloyds of London, the London stock exchange, all British banks, the branch offices of 385 foreign banks and 70 US banks as well as Fleet Street's newspaper and publishing monopolies. It is also the headquarters for British Freemasonry.

 

Tue, 08/21/2012 - 16:01 | Link to Comment Wolferl
Wolferl's picture

Interesting, what Germans, the east or the west Germans? Or do you just make up such stupid stories if you had too much moonshine slivowitz? Are you still in denial about the genocides the Serbs commited in the 1990ies? 

Tue, 08/21/2012 - 16:07 | Link to Comment Ahmeexnal
Ahmeexnal's picture

What germ-ans? The germ-an imperial family, the germ-an MIC, the germ-an banking mafia.

http://www.monitor.net/monitor/9904a/yugodismantle.html

Tue, 08/21/2012 - 16:56 | Link to Comment BLOTTO
BLOTTO's picture

ALL sides...committed genocide.

Croats, Bosnian Muslims and Serbs...

and dont forget

the KLA.

 

Tue, 08/21/2012 - 16:17 | Link to Comment Abraxas
Abraxas's picture

Spot on Ahmeexnal. Most of the people bought the US and German version of events (like the sheep above me). Cudos to you man!

Wed, 08/22/2012 - 09:24 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

yeh blame germanz for everything! that's the right way to do eh idiot?

Tue, 08/21/2012 - 17:02 | Link to Comment bankruptcylawyer
bankruptcylawyer's picture

I think people negg your comment because they have not a shits clue about the history of the dissolution of yugoslavia. the breakup of yugoslavia was a huge snowjob by the imf and europe on one of its own. we expect this kind of financial rape against non-european countries. 

the sad truth is that when there is no one left to rape, the imf and world bank will start raping the very countries that helped create them----germany, the u.s. france, the uk. 

one may argue they've been doing this indirectly forever, I am arguing it will eventually happen directly. 

the imf loaned the uk billions of pounds in the early 1970's. it was supposedly paid back, and the u.k. put back on course. supposedly. what will the uk look like after the next round of financial breakdown---loans, and the privatisation/thatcherism has its way with the country. it's  15-20 year cycle. it's beginning soon. After is all said and done. sometime around 2030, the west is going to look different. little, yellow, nuprin. 

 

 

Wed, 08/22/2012 - 01:50 | Link to Comment Joe A
Joe A's picture

After the Berlin wall came down in '89, Yugoslavia had lost its purpose to the West as a buffer against the Warschau pact. Contries such as Germany, Britain and the US have been very instrumental in the breakup of Yugoslavia. Germany had been actively supporting resurgence of Croation nationalism since the 1970s. Old fascist ties die slowly. In the 90s the model that has been used in the Iraq war, in Lybia and now in Syria was for the time used in Yugoslavia: demonize one side, arm and support the other sides, cry 'atrocity' when the demonized side commits them but ignore atrocities committed against them. Rinse and repeat until desired result and move on to the next target.

Tue, 08/21/2012 - 15:42 | Link to Comment ACP
ACP's picture

Draghi'd better buy a Fiat with fiat before it's too late...

Tue, 08/21/2012 - 16:50 | Link to Comment Unholy Dalliance
Unholy Dalliance's picture

All your wheelbarrows are belong to us. Hmmmm! This seems to be a cue for the hoary old anecdote told and retold about the poor unfortunate who was trundling his wheelbarrow of (worhless) cash around the streets of some or other city in Germany during the latter days of the Great Inflation, shopping for food, when he had a desperate need to use a toilet. He dashed into a restaurant and begged one of the waiters to let him use the establishment's 'facilities'. When he went outside to continue his trundling, he found his wheelbarrow had been stolen and the cash pile left neatly on the pavement (sidewalk). No one else had bothered to take it. As I said, probably made up because it doesn't explain why the cash was valuable to the original owner of the wheelbarrow and not to anyone else. Unless all it would buy is one solitary bread roll and everybody else had already had breakfast.

It's sounds like typical German humour to me, dark and full of Schadenfreude (whatever that is). So, hmmmmm, again.

Look at what is happening to gold and silver today. Hyperinflation is just around the corner. And not just for Russia, Serbia, Austria and Hungary 

Tue, 08/21/2012 - 18:22 | Link to Comment TWSceptic
TWSceptic's picture

Those who cannot remember the past are condemned to repeat it. - George Santayana

Tue, 08/21/2012 - 18:58 | Link to Comment TwoJacks
TwoJacks's picture

don't buy gold then.

buy wheelbarrows.

Tue, 08/21/2012 - 15:39 | Link to Comment jekyll island
jekyll island's picture

So when the contagion comes to the US, will Barry Obama's face be on the million dollar bill?

Tue, 08/21/2012 - 15:42 | Link to Comment Comay Mierda
Comay Mierda's picture

yes, but the million dollar bills will have more value as toilet paper than for monetary exchange

as disastrous as hyperinflation will be, at least you will get to wipe your ass with obummers face

Tue, 08/21/2012 - 15:46 | Link to Comment nope-1004
nope-1004's picture

One of the things I wonder, can the reserve currency hyperinflate to the point of the Treasury printing a 1,000,000 dollar bill?  I think hyperinflation will happen, but it will be a "new currency" introduction that swiftly brings in the new system, backed by something.  I can't see how the Treasury, being the reserve currency, will print 1,000,000 dollar bills, which is a public acknowledgement of hyperinflation.  I think they'll try and cover it up.  Way less negative PR to just usher in a new 'system'.

 

Tue, 08/21/2012 - 15:52 | Link to Comment malikai
malikai's picture

Personally, I think it will happen too quickly to be printed on any bills.

On Monday, a loaf of bread will be $5.

On Tuesday, a loaf of bread will be unavailable at any price.

Tue, 08/21/2012 - 16:24 | Link to Comment Alea Iactaest
Alea Iactaest's picture

And after hyperinflation wipes out the currency what happens? Seems that a "new, improved" currency has been introduced. Every time. But this time will be different? I think not. So what are you going to use to get through this?

(Yes, it's a leading question.)

Tue, 08/21/2012 - 19:34 | Link to Comment NidStyles
NidStyles's picture

A gun to protect my food storage.

Tue, 08/21/2012 - 20:38 | Link to Comment hmmtellmemore
hmmtellmemore's picture

Another 40% devaluation of the USD would buy a lot of time for can kicking.  Then in 2050, everyone can re-log onto Zero Hedge and talk about the coming demise of the USD ... 

Tue, 08/21/2012 - 16:06 | Link to Comment Ghordius
Ghordius's picture

You have to consider the timeframe, like you buy a car for 50'000 and thee years later you sell it for 500'000

I'm a bit disappointed by the article, I was expecting the Latin Monetary Union that the Vatican's Treasury scuppered by shaving the silver coins.

Yugoslavia? The Soviets? Anyway, yes, here we are experts in hyperinflation...

Tue, 08/21/2012 - 16:29 | Link to Comment Oldrepublic
Oldrepublic's picture

The LMU, Latin Monetary Union 1865-1927, didn't end too well. The Greeks were caught cheating on their coins gold content!

Tue, 08/21/2012 - 16:35 | Link to Comment RockyRacoon
RockyRacoon's picture

"...the Vatican's Treasury scuppered by shaving the silver coins."

That's why silver coins came to have reeding.  Nickels don't have reeding because they are made of base metal -- soon to become precious metal!

Tue, 08/21/2012 - 16:07 | Link to Comment Mad Max
Mad Max's picture

Cash transactions over $10,000 generally have to be reported to the feds.

Just imagine buying gas or a meal and having to fill out a currency transaction report.  Good times are a coming!

Tue, 08/21/2012 - 16:17 | Link to Comment TruthInSunshine
TruthInSunshine's picture

There will be WWIII before hyperinflation takes place.

The current petrodollar global economy, complete with a network of collusionary fractional reserve central banks (look at how many oil-rich nations that formerly lacked fractional reserve central banks have been "liberated" in the last decade) won't slink away and die without a massive, bloody, scorched earth strategy being implemented first.

Tue, 08/21/2012 - 17:50 | Link to Comment cougar_w
cougar_w's picture

The US military is the largest purchaser of oil products in the world (1) . The US Department of Defense is thought to use upwards 390K barrels of oil a day, 170K in overseas conflicts(2). The first thing the US will lose in the next global war is easy (or any) access to foreign oil in Asia and South America, currently accounting for 45% of domestic consumption, down from 60% a few years ago (3). We are currently producing 5.6M barrels a day domestically (3) all of which is (for now) sold on the open global market. Of domestic consumption (19M barrels/day in 2010)(5) energy generation and industrial use count for 60% (11M barrels daily)(4). So between the military and base-line economic survival zero% of the 5.6M barrels of domestic production will remain for non-strategic uses (that is, anyone not in a uniform or employed in the MIC).

The USArmy might invade Mexico to secure their oil resources for non-military domestic use (and to keep them away from enemy states) but Mexican oil is already on the down-slide and in a few years there probably won't be any worth taking by force. America cannot prosecute a war overseas without a mobile military and a strong industrial and energy sector, and without an addtional 5M barrels a day beyond current domestic production will likely lose outright in the case of a global war.

Everyone says the next US President will start a war to end this economic death-spiral.

He will not do so. Because he will lose that war in under a year having exhausted all available oil reserves on the North American continent. And having lost a war, will be forced to surrender national sovereignty to an overseas aggressor, probably a combine of China and Russia, by virtue of they having far better and unbroken access to oil.

if I can pull all that together in just 15 minutes of googling around, I bet the CIA can too. WW3 is nearly impossible to imagine under these circumstances and would place the US in a very, very ugly strategic position.

------------------------------------

References:

1. http://www.energybulletin.net/node/13199

2.http://www.dailyenergyreport.com/2011/01/how-much-energy-does-the-u-s-mi...

3. http://articles.latimes.com/2012/mar/12/news/la-pn-report-us-oil-imports...

4. http://en.wikipedia.org/wiki/Energy_in_the_United_States

5. http://www.indexmundi.com/united_states/oil_consumption.html

Tue, 08/21/2012 - 22:03 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I will disagree with that assessment on many grounds, not the least of which is that regardless of how Ponzi-rific the U.S. economy is, Russia's is far more Ponzi-rific, and China's economy, contrary to the popular China-Is-The-End-All-Be-All-Of-Future-Economic-Growth thesis du jour, is built on a foundation of sand.

Further, neither Russia nor China, acting independently or in cooperation with each other (and they actually are anything but allies now, nor is there any strategic interest for them to ally in the future), has the ability to defeat the U.S. militarily, no matter how many puffed claims are made about their capabilities.

On a final note, a full 50% of the global oil supply is produced by nations either allied with the U.S., or for whom the U.S. expressly or implicitly protects (e.g. Kuwait; look at what happened to Saddam Hussein after that fateful decision to invade Kuwait).

China is hanging out in Africa, on a fool's mission, hoping to shore up a reliable future oil stream by building alliances with nations there, when Nigeria is by far the biggest African producer of oil, and its supplies have already been 'taken' by western powers via their domestic big oil companies (whether French, British or American), and the U.S. has boxed China right out of the middle east with the exception of Iran.

As salt in China's wounds, the U.S. is aggressively courting southeast asian nations now, as perception of China as a growing menace takes firm hold amongst many asian nations that didn't formerly view it as such (South Korea & Japan do not and never will trust China, no matter the level of economic trade they conduct with her).

I'm a realist on the dire nature of the economy and aggregrate economic demand that The Bernank broke, along with breaking normal supply/demand function and price discovery, but I'm also a realist in recognizing the essential fact that the U.S. is and will be the dominant military superpower projecting near hegemony on the battles it chooses to wage for a long time to come.

Everything is relative.

Wed, 08/22/2012 - 09:34 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

LOL..........................................

 

you know americans have oil reserves right?

 

and you know they have 11 aircraft carrier? some even nuclear? and GUESS WHERE WILL GO THEIR FLEET WHEN BAD TIMES HAPPEN?

Tue, 08/21/2012 - 18:46 | Link to Comment TWSceptic
TWSceptic's picture

It just takes much longer in larger countries, but theoretically it can happen. It's not like they will be able to control it once it gets out of hand.

Tue, 08/21/2012 - 15:56 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Barry signed on for the creation of the palladium 1oz.

I hope his face makes it on the first strikes.

Wed, 08/22/2012 - 09:29 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

no i think there is a better face for the one milion dollar bill..........

 

BEEEEEEEEEEEEEEEEENNYYYYYYY hahahahahahahahahhahahahahhahah

Tue, 08/21/2012 - 15:41 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

They didn't have large central banks manipulating CPI like ours.

 

The price of bread could be $26 tomorrow and they would still have 'official' CPI at 1.8% or something....

Tue, 08/21/2012 - 16:10 | Link to Comment Bastiat009
Bastiat009's picture

That's why Michelle doesn't want you to eat too much bread.

Tue, 08/21/2012 - 16:16 | Link to Comment El
El's picture

Sent a family member to the store to get hamburger buns for .89. Not only were they not .89 (they were 1.29), but they were also about half the size they used to be (about the size of a biscuit).

Tue, 08/21/2012 - 16:26 | Link to Comment quasimodo
quasimodo's picture

Anyone else notice how often hamburger buns are now 8 to a package? Yes, smaller for sure. Who the fuck eats a burger the size of a silver dollar?

Tue, 08/21/2012 - 16:29 | Link to Comment El
El's picture

Not only that, two weeks ago, I bought hotdogs and buns and there were the same number of hotdogs as buns. When did that happen???

Tue, 08/21/2012 - 17:13 | Link to Comment gmrpeabody
gmrpeabody's picture

That is why, my dear Arab woman, that the CPI always comes in where they want it. Next year, six dogs and six buns will be the new norm, and they won't cost you any more. See..., no inflation, problem solved.

Wed, 08/22/2012 - 06:25 | Link to Comment Disenchanted
Disenchanted's picture

 

 

There have always been six dogs and six buns in the pkgs. - George Orwell

Tue, 08/21/2012 - 16:38 | Link to Comment sdmjake
sdmjake's picture

Oh Quasi, it's all the rage...they sell you a couple of them and call 'em "sliders". Apparently after the pink slime curve ball they needed a new pitch...

Tue, 08/21/2012 - 15:43 | Link to Comment fonzannoon
fonzannoon's picture

looks like another bear trap got set today

Tue, 08/21/2012 - 15:45 | Link to Comment Zeilschip
Zeilschip's picture

September 12th, the Dutch will vote to get the fukk out of the Euro. Get the Guilder back! The last straw will be having to pay a penalty to Brussels because we exceed the 3% deficit limit. What a joke.

Tue, 08/21/2012 - 16:36 | Link to Comment smiler03
smiler03's picture

 "Crisis grips Netherlands: Homeowners cannot pay back loans"

"In the Netherlands, the banks report a massive surge of loan defaults. Because this is also the state-rescued SNS Reaal concerns, the state threatened by a default of 700 million euros."

Article (in German) http://www.deutsche-mittelstands-nachrichten.de/2012/08/46406/

Tue, 08/21/2012 - 17:50 | Link to Comment Zeilschip
Zeilschip's picture

SNS is deemed a 'system bank', ING or ABN AMRO will be ordered (by the Dutch government) to buy SNS, just like Rabo acquired Friesland Bank few months back. It's going to appear as a headline on Bloomberg, on a Monday morning before the AEX opens.

Tue, 08/21/2012 - 15:51 | Link to Comment resurger
resurger's picture

 

History is now ominously repeating itself. The Panic of
’08, The Great Recession/Depression, currency wars, trade
wars, leading to “The 1st Great War of the 21st Century.”
And, at the core of this war, no matter how it will be
historically engineered, it didn’t start because of repressive
regimes, the thirst for democracy, religious strife or
territorial disputes – it all came down to “money, power
and greed.”

— Gerald Celente

Tue, 08/21/2012 - 15:52 | Link to Comment Hype Alert
Hype Alert's picture

"and the banking system would stop working. The Eurozone payments system would stop functioning because it is centralized to the ECB. To re-establish a payments system is both politically and technically difficult."

 

Non-sense, Libya's rebels started a central bank in the early stages of a revolution. 

Tue, 08/21/2012 - 15:58 | Link to Comment NotApplicable
NotApplicable's picture

I LOLed

Tue, 08/21/2012 - 16:02 | Link to Comment sessinpo
sessinpo's picture

Not a good comparison.

 

The point of the statement you put in quotations is that those countries did not have the flexability because they were tied to the ECB. Your comparison of Libya doesn't work because the rebels were establishing a bank independent of a Central Bank that governed over many countries.

Tue, 08/21/2012 - 16:07 | Link to Comment Hype Alert
Hype Alert's picture

You're overlooking the sarcasm.

Tue, 08/21/2012 - 16:15 | Link to Comment sessinpo
sessinpo's picture

That is what sarc tags are for. Beleive me, we have enough liberal trolls on here that would actually agree with your statement without sarcasm.

Tue, 08/21/2012 - 16:14 | Link to Comment MachoMan
MachoMan's picture

I hope he's trolling you...  he can't possibly attempt to purport that the rebel libyan bank was somehow independent of a central bank mothership...

Tue, 08/21/2012 - 16:23 | Link to Comment sessinpo
sessinpo's picture

Like this troll.

 

To answer your question. All banks are ultimately ties to the FRB., DUH, as the US Dollar is the world's currency reserve. But to be more specific, the article was about the Eurozone. I commented on Hype Alret's post, not realizing the sarcasm because we do have liberal trolls that do beleive in a centralized banking system of control, in the US and in the Euro. And as I have pointed out numerous times, I am of a modern day libertarian nature and would like to do without such centralized power. Go ahead - look up my posts.

 

Secondly, I would like to note my original reply was respectful. I stated my opinion and reason why and did not throw out names like you which is why I called you a troll. I can debate and like the exchange of ideas and I'll defend them against assholes that take debates down to lower levels like you just did.

Tue, 08/21/2012 - 16:26 | Link to Comment Doubleguns
Doubleguns's picture

Hype alert, Lybian rebels did not have EZ regulations and politicians to deal with which makes it a no starter. Unless they bring some rebels with AK47's to clear the way....of politicians and those reciting regulations. 

Tue, 08/21/2012 - 15:57 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

It says in the article above:

« ... Five out of twelve post-Soviet countries – Ukraine, Moldova, Georgia, Kyrgyzstan, and Tajikistan – had not reached their 1990 GDP per capita levels in purchasing power parities by 2010. Similarly, out of seven Yugoslav successor states, at least Serbia and Montenegro, and probably Kosovo and Bosnia-Herzegovina, had not exceeded their 1990 GDP per capita levels in purchasing power parities two decades later (World Bank 2011. »

So it was hard to get back to the same levels as achieved under Communism?

In other words, Communism was the preferred system?

Indeed, most older folks in Eastern Europe ... who grew up and lived under Communism ... would vote to have the Communists back.

They liked it better than 'shock capitalism'.

 

Tue, 08/21/2012 - 16:16 | Link to Comment MachoMan
MachoMan's picture

who wouldn't love the time when the bill for the "free" lunch hasn't yet come due?  Central planning leads to the same end, each and every time. 

Tue, 08/21/2012 - 16:25 | Link to Comment Oldrepublic
Oldrepublic's picture

I was in Moscow in 1992, will never forget the sight of thousands of old men

and women in the streets selling family heirlooms to survive

Tue, 08/21/2012 - 17:15 | Link to Comment Totentänzerlied
Totentänzerlied's picture

The ones who made it out alive, perhaps, what can we say? Fools never learn. The others, millions and millions of them, not so much, I think.

Survivor(ship) bias, anyone.

Tue, 08/21/2012 - 15:59 | Link to Comment deki
deki's picture

I survived Yugoslavian hypeinflation and I will survive this next one thats coming. I wish it would come tomorrow and get this shit over with so we can move on to a better system.

Tue, 08/21/2012 - 16:17 | Link to Comment MachoMan
MachoMan's picture

Care to explain to those of us that have not had to do so how you managed to survive hyperinflation?  General observations... tactics...  anything would be much appreciated...

Tue, 08/21/2012 - 16:29 | Link to Comment deki
deki's picture

Have some booze and tobacco products for bartening and you will do fine. Gasoline was the best commodity to have by far. I remember people smugling it from Romania and they were banking. It wont be all out war on the streets life goes on even in hyperinflation. 

Tue, 08/21/2012 - 16:56 | Link to Comment Nadaclue
Nadaclue's picture

You want to know how to survive really bad SHTF?

There is a guy who runs a site which describes his year in hell. Many of the lessons he presents may or may not be relevant but it is a good read. Keep in mind while he has a good grasp of english, his syntax may be odd. I think he is either a Paramedic or Nurse.

Surviving one year in a city surrounded by the enemy army and cut off from the rest of the world. I'm Selco and have been through this SHTF school I never wanted to attend during the Balkan wars 1992 - 1995. I write about this here. 

http://shtfschool.com/page/6/

Start at the bottom of the page and work your way up and to page 1 to stay in the timeline.

Tue, 08/21/2012 - 16:19 | Link to Comment nope-1004
nope-1004's picture

+1

Tue, 08/21/2012 - 16:03 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

I'm gonna do some swearing in the ZH church: I'm not convinced that the correlation is really causation here (failed attempts to create a European currency union and a common currency)...

Tue, 08/21/2012 - 16:00 | Link to Comment Freegold
Freegold's picture

If everything fails, you can bet your sweet behind that they will buy gold outright in the open market. Hello freegold and hyperdollar.

Tue, 08/21/2012 - 16:04 | Link to Comment IthinkMyHeadsGo...
IthinkMyHeadsGonnaExplode's picture

I am going to start a wheel barrow factory!

Tue, 08/21/2012 - 17:15 | Link to Comment optimator
optimator's picture

Go big time, double your production line with applecarts.  

Tue, 08/21/2012 - 16:05 | Link to Comment foodstampbarry
foodstampbarry's picture

Just went to BJ's warehouse...76 bucks for some drano, batteries and juice. Thank you Bernak! Fuck YOU!

Tue, 08/21/2012 - 16:13 | Link to Comment IthinkMyHeadsGo...
IthinkMyHeadsGonnaExplode's picture

No shit! You have to be a 1%er these days to go to the motherfucking grocery store. USA! USA! USA! WOOT! I am gald that I chose alocoholism as a hobby (it is coming in soooooooo handy these days!).....

Tue, 08/21/2012 - 16:07 | Link to Comment Bastiat009
Bastiat009's picture

The euro rallied against most currencies today, including gold.

Tue, 08/21/2012 - 16:30 | Link to Comment Alea Iactaest
Alea Iactaest's picture

Yeah, anyone who thinks the markets have been boring the last couple of weeks sure hasn't been watching FX (and I am not talking about a cable channel).

Tue, 08/21/2012 - 16:07 | Link to Comment tekhneek
tekhneek's picture

Next thing you know ATM's will just print fresh currency and never need refilling.

Ah fuck. Spilt the beans again.

Tue, 08/21/2012 - 16:08 | Link to Comment Miss anthrope
Miss anthrope's picture

I never had so much fun learning things that are so boring!..THANK YOU TYLERS............. i HEART you.

Tue, 08/21/2012 - 16:52 | Link to Comment falak pema
falak pema's picture

thats what the lady said about sex...as she gulped down her Schweppes. 

Tue, 08/21/2012 - 16:07 | Link to Comment Miss anthrope
Miss anthrope's picture

I never had so much fun learning things that are so boring!..THANK YOU TYLERS............. i HEART you.

Tue, 08/21/2012 - 16:10 | Link to Comment kaiten
kaiten's picture

Czechoslovakia disintegrated in 1993 and ... no hyperinflation. Of course it´s always convenient to pick up the worst examples.

Tue, 08/21/2012 - 16:21 | Link to Comment Tyler Durden
Tyler Durden's picture

The country of Czechoslovakia (formed in 1918, split in 1992) was a currency union?

Then again 1993 Slovak inflation of 23% (and 21% in the Czech Republic) was probably just focusing on the "non-core" items...

Tue, 08/21/2012 - 16:30 | Link to Comment IthinkMyHeadsGo...
IthinkMyHeadsGonnaExplode's picture

Well it was similar to Yugoslavia in the sense that Czechoslovakia was composed of three different regions (Slovakia, Moravia and Bohemia) and the people in them consider themselves culturally/tribelly different even though they share a common language... Other than that, meh not so much...

Tue, 08/21/2012 - 16:33 | Link to Comment Tyler Durden
Tyler Durden's picture

In that case Germany is a loose currency union/confederation of 4 kingdoms, 6 grand duchies, 5 duchies, 7 principalities, and 3 free Hanseatic cities (as well as 1 imperial territory of course)  united conveniently by Otto von Bismarck.

Which incidentally is precisely the problem of Europe.

Tue, 08/21/2012 - 16:38 | Link to Comment IthinkMyHeadsGo...
IthinkMyHeadsGonnaExplode's picture

Hmmnnn is it the same thng? Bismark unified a bunch of fuedal Principalities into a single Sovereign State. 

Tue, 08/21/2012 - 19:47 | Link to Comment NidStyles
NidStyles's picture

They were and still are culturally different, and spoke different languages.

 

My Hessian ancestors spoke a German that was far different than the other side of the family's German. They all speak what is called German now thank's to two world wars and the issue of troops not being to communicate effectively.

Tue, 08/21/2012 - 16:41 | Link to Comment RockyRacoon
RockyRacoon's picture

Notgeld, bitches!

Tue, 08/21/2012 - 16:41 | Link to Comment Black Forest
Black Forest's picture

You forgot Berlin, a dirty left-wing mother-fucker region where the government is seated.

Tue, 08/21/2012 - 16:42 | Link to Comment smiler03
smiler03's picture

Everybody LOVES a smartarse! + 33 1/3

Tue, 08/21/2012 - 16:42 | Link to Comment IthinkMyHeadsGo...
IthinkMyHeadsGonnaExplode's picture

Suffice it to say a rose by any other name is a doomed sinkhole....

Tue, 08/21/2012 - 16:49 | Link to Comment falak pema
falak pema's picture

and in the USa with 50 states now all looking grey around the edges just like the federal superstate. 

When the center folds... empires become feudal states again. Just like the transcorporates, now all having access to tax havens. 

Up the Jolly Roger and Bloody Morgan rides the seas. 

Tue, 08/21/2012 - 17:53 | Link to Comment magpie
magpie's picture

Argh, and back to Pirates' cash too

http://en.wikipedia.org/wiki/Massachusetts_pound

Tue, 08/21/2012 - 19:50 | Link to Comment NidStyles
NidStyles's picture

I already have my Jolly Roger picked out:

http://cdn.ebaumsworld.com/picture/69trmntr/Jollyroger-1.jpeg

 

I just need to find some swords, or just use my Machete. 

Tue, 08/21/2012 - 17:18 | Link to Comment IthinkMyHeadsGo...
IthinkMyHeadsGonnaExplode's picture

Tue, 08/21/2012 - 17:29 | Link to Comment Ghordius
Ghordius's picture

That Germany is the small version or that the european clubs are the big version? I find the comparisons all bit stretched.

Tue, 08/21/2012 - 17:57 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

The common denominator is regional division. In times of (economic) turmoil you stick to your own tribe.

Tue, 08/21/2012 - 17:26 | Link to Comment kaiten
kaiten's picture

Yes, Czechoslovakia was also a currency union, among others.

 

Double digit inflation in both countries was a result of a price deregulation and economy transformation(from planned to market economy), not of the currency union disintegration. Effect of the currency(czechoslovak koruna) dissolution on inflation was negligable, non-existent esentially.

Tue, 08/21/2012 - 16:11 | Link to Comment reader2010
reader2010's picture

My heart will go on.

Tue, 08/21/2012 - 16:14 | Link to Comment yogibear
yogibear's picture

And the banksters are all positioned now for hyperinflation. Next trick is for them, Bernanke and the rest to trigger a loss of confidence in the respective currencies. 

Tue, 08/21/2012 - 16:17 | Link to Comment Vegetius
Vegetius's picture

“The European single currency is bound to fail, economically, politically and indeed socially, though the timing, occasion and full consequences are all necessarily still unclear.” — Margaret Thatcher

Tue, 08/21/2012 - 16:32 | Link to Comment SaveTheGreenback
SaveTheGreenback's picture

I think we are leaving out perhaps Europe's finest civilization: Rome.  The Roman Empire also fell, in part, because of massive hyperinflation and overextension...

Hyperinflation has been the DEATHBLOW to civilizations throughout history...

Tue, 08/21/2012 - 17:22 | Link to Comment Poor Grogman
Poor Grogman's picture

The fact that their rulers were  above the law and demanded to be treated as gods didnt help either.

fortunatly we are nowhere near that yet...

/s

 

Tue, 08/21/2012 - 17:46 | Link to Comment TrustWho
TrustWho's picture

The inability to finance our huge defense/military structure is America's largest security risk. Romney should state this and make Ron Paul his Secretary of Defense.

All entitlements, and believe me the Generals with their toys are an entitlement program, need to be hammered so America does not follow Roman or Soviet Union path.

Without a strong military, America is 3rd world country?

Tue, 08/21/2012 - 19:51 | Link to Comment NidStyles
NidStyles's picture

That you call war doting Statist Barbarians Civilized makes me laugh. 

Tue, 08/21/2012 - 16:33 | Link to Comment Oh regional Indian
Oh regional Indian's picture

"So... trying to pull infinite demand from the future to the present once the ability to fund said present deferred demand ends, has consequences?"

Well said, really captures the deepest essence of the problem here, there and everywhere...

ori

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