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Why German Tempers Are Finally Boiling

Tyler Durden's picture




 

Back in July of last year, before it was even remotely acknowledged (and in fact it was roundly denied) that Greece would set a debt haircut precedent, which despite all the rhetoric has merely given all the other PIIGS ideas about debt haircuts of their own (and how to achieve these as fast as possible), Zero Hedge was the first media outlet to cut to the truth, with "The Fatal Flaw In Europe's Second "Bazooka" Bailout: 82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of German GDP." Note we said "soon to be" because it was obvious that the modestly complicated math of Germany bearing the cost of keeping the Eurozone alive would take quite a while to trickle down to the common German man. We did, however, underestimate the Bundesbank's mathematically helping hand in the form of one chart, most recently observed here, which makes the math far clearer than anything we could ever do to explain: namely the exponentially grown Bundesbank TARGET 2 balance, which is essentially Germany's way to fund, via the ECB, account imbalances across the Eurozone (explained in gory detail here), and put the national economy on the hook in ever greater amounts to a sudden and disastrous collapse of the Eurozone, because should a fat tail even occur, a solid 25% of German GDP would be Corzined. Today, The Telegraph's AEP does a bring down on the current status of this one biggest wildcard for Europe's future: namely, German anger, or as he puts it "tempers" which it appears have finally begun to boil.

From the Telegraph:

Controversy is raging in Germany over soaring "payments" by the Bundesbank to shore up Europe's monetary system and cope with a tidal wave of capital flight from southern Europe.

 

Professor Hans-Werner Sinn, head of Germany's IFO Institute, said German taxpayers are facing a dangerous rise in credit risk from a plethora of bail-out schemes. "The euro-system is near explosion," he told Austria's Economics Academy on Thursday.

 

Dr Sinn said Germany is on the hook for much of the €2.1 trillion (£1.72 trillion) in rescue measures for EMU debtors - often by the back-door - that will saddle Germans with ruinous losses one day.

 

"It is a horror scenario," he said, warning that the euro system is splitting friendly countries into blocs of mutually hostile creditors and debtors, exactly the opposite of what was hoped.

 

Earlier this week, the Foundation for Family Business in Munich filed a criminal lawsuit against the Bundesbank, accusing the board of disguising the true scale of risk born by German citizens.

 

The furore follows a sharp jump in the Bundesbank's "Target2" claims within the European Central Bank's internal payment network from €547bn in February to €616bn in March. Bundesbank claims have risen sixfold since 2008, a rise mirrored in Holland and Luxembourg.

To paraphrase Hans Gruber loosely, "You asked for miracles, Theo, I give you the Bundesbank"


Ironically, that one chart achieved more than we could ever hope to do in conveying the seriousness of the situation.

There has been a dramatic rise in outflows from Spain, despite the ECB's €1 trillion blast of three-year liquidity. The exodus indicates that the ECB action has so far failed to restore basic trust in Spain's banks.

 

Critics say Target2 allows the vast sums to pile up for ever, unlike the US "FEDwire" that mandates the settlement of regional imbalances within months.

 

The Target2 saga has become a daily theme in the German press, with Dr Sinn emerging as a television superstar. The coverage is eroding confidence in the euro. The latest poll shows that 56pc of Germans want a return to the D-Mark.

 

Bundesbank chief Jens Weidmann has fanned the flames by demanding collateral from weaker states for Target2 transfers. The imbalances are not a problem "as long as the eurozone stays together", he said.

Of course, there are those who still think that debt gets repaid at par even when collateralized with doubly reused condom wrappers:

Professor Karl Whelan from University College Dublin said the debate is absurd, whipped up by populists and the German media. "If the euro breaks up, there are still assets to go along with the liabilities. The likely outcome would be a 'Bretton Woods weekend' with a gentleman's agreement to carve up the losses."

 

"Even if countries told each other to go to Hell, the euro would simply cease to exist and the Bundesbank could write a cheque to itself. There would be no inflation and no loss to the German taxpayer," he said.

 

"We live in a world of fiat currencies, not the Gold Standard. People making these claims don't understand how a central bank works," he said. His views are shared by ECB experts.

Oh they understand all right: they understand that the biggest problem in Europe - namely that it has run out of money good assets - is now the problem. And now even the common people get it.

However, the issue has taken on a life of its own in German politics. There is deep concern among German officials that ECB monetary stimulus will leak into inflationary credit within Germany, which has the lowest unemployment in 20 years and an incipient housing boom.

As we pointed out last week, now even Soros is involved.

Mr Soros said EU politicians are "leading Europe to its ruin" by trying to enforce misguided contraction on the EMU weaker states, adding that he would "bet against the euro" if he were still an active investor. His Quantum Fund famously made €1bn betting against sterling and the lira in 1992, a gamble triggered by Bundesbank comments at the time.

 

Even defenders of Target2 admit that such vast transfers need proper scrutiny. The International Monetary Fund said the system is a back-door means of financing the trade deficits of Italy, Spain, Ireland and Portugal.

 

Dr Sinn's IFO Institute has refused to back down. Its latest report said Target2 violates democracy. "Who are the losers from this process? The savers in those remaining European countries that still have sound economies," it said. They have been pledged their assets "without their knowledge or consent".

 

"This enormous international credit should have been subjected to the parliaments of Europe," it said.

In the meantime, and as also suggested here first, the best way to bring the current flawed system to a crushing collapse is ironically to do nothing. Courtesy of exponential charts like the one above, which by definition are unsustainable, two things will happen: 1) what is unsustainable will not be sustained, and will crash and burn, and 2) the more the common people look at charts that go vertical, and guarantee massive net worth losses in the future, the more tempers will boil, until finally the anger takes to the streets.

 

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Fri, 04/20/2012 - 08:15 | 2360628 HedgeAccordingly
HedgeAccordingly's picture

Germany reported higher confidence this morning lolz..

all positive data spin this morning - weee - http://hedge.ly/IsN5gu

Fri, 04/20/2012 - 08:30 | 2360654 GetZeeGold
GetZeeGold's picture

 

 

Umm.....when did the Germans mind funding 50 somethings Greek retirements? Seems like the least they could do.

 

Fri, 04/20/2012 - 08:34 | 2360670 Harlequin001
Harlequin001's picture

I'm telling ya, you have to watch these buggers, they'll invade someone...

Fri, 04/20/2012 - 08:46 | 2360704 Bicycle Repairman
Bicycle Repairman's picture

There was plenty of furor in the US as well.  So what?

Fri, 04/20/2012 - 08:54 | 2360726 SWRichmond
SWRichmond's picture

Statements like this one are just un-fuckingbelieveable:

"Professor Karl Whelan from University College Dublin said the debate is absurd, whipped up by populists and the German media. "If the euro breaks up, there are still assets to go along with the liabilities. The likely outcome would be a 'Bretton Woods weekend' with a gentleman's agreement to carve up the losses.

"Even if countries told each other to go to Hell, the euro would simply cease to exist and the Bundesbank could write a cheque to itself. There would be no inflation and no loss to the German taxpayer," he said.

"We live in a world of fiat currencies, not the Gold Standard. People making these claims don't understand how a central bank works," he said. His views are shared by ECB experts.

If losses can be covered simply by one writing a check to onesself, then we should all just print up a million or so (or perhaps Sheila Bair's 10 million interest free loans for everyone), and then we can all stop workling and spend the rest of eternity traveling.  We all understand exactly how central banking works, you stupid loon.  All of the assets this jackwad refers to now carry false prices, owing precisely to central bank interventions.  What are they really worth?  No one knows.

Is it true, for some reason, that the stupider one is, the higher one rises in academia and government?  Or, is all that is required a willingness to publicly give blowjobs to the status quo upon demand?

Fri, 04/20/2012 - 09:00 | 2360748 AUD
AUD's picture

You just don't understand how a central bank works, do you? You are not allowed to write a cheque to yourself, that would cheque kiting. When the central bank does it though, its prudent monetary policy.

Get with it man.

Fri, 04/20/2012 - 09:02 | 2360756 economics9698
economics9698's picture

SWR that was pretty good dude.

Fri, 04/20/2012 - 09:26 | 2360814 SWRichmond
SWRichmond's picture

Ty.  The phony asset prices support the unbacked buying power of the phony currency, and additional phony currency is produced and used to support the asset prices; each is used as evidence of the strength of the other, when in fact the need to manipulate both is the best evidence available for the weakness of both.

Fri, 04/20/2012 - 09:55 | 2360909 The Big Ching-aso
The Big Ching-aso's picture

 

 

If Merkel suddenly grows about a 1 inch square 'stache things could get hairy.

Fri, 04/20/2012 - 10:06 | 2360965 Calmyourself
Calmyourself's picture

SWR, your absolutely right of course but until a critical mass of folks understand that nothing changes.  The PTB will do anything to maintai nthe fiction and have been using our  education and propaganda organs to deny that knowledge to the masses.  Only the stark reality of hunger can change things at this late point the sheep are too brainwashed and compliant.

Fri, 04/20/2012 - 10:10 | 2360978 LowProfile
LowProfile's picture

 

All of the assets this jackwad refers to now carry false prices, owing precisely to central bank interventions.  What are they really worth?  No one knows.

True, but I think we can at least hazard a guess at direction...

Fri, 04/20/2012 - 09:02 | 2360751 economics9698
economics9698's picture

The best quality the German people have is they like to kill French people periodically.  It must be getting about that time for the games to resume.

Fri, 04/20/2012 - 09:12 | 2360767 GetZeeGold
GetZeeGold's picture

 

 

Stop teasing us.

 

Fri, 04/20/2012 - 09:41 | 2360866 Thomas
Thomas's picture

"Give a German a gun and he heads to France"

Bill Bonner

Fri, 04/20/2012 - 13:13 | 2361592 LongBalls
LongBalls's picture

FOR SALE: WW Era French rifles. Never Shot! Dropped twice.

Fri, 04/20/2012 - 09:37 | 2360855 Winston Smith 2009
Winston Smith 2009's picture

"Is it true, for some reason, that the stupider one is, the higher one rises in academia and government?"

According to the evidence and statements on that topic by William K. Black, the answer would be "yes."

"Or, is all that is required a willingness to publicly give blowjobs to the status quo upon demand?"

That is requirement "B", a supplement to the above incompetence requirement that greatly increases your chances of floating to the top and remaining there.

Fri, 04/20/2012 - 08:57 | 2360734 Nussi34
Nussi34's picture

Why would anyone invade shitholes like Greece? There is nothing to loot and the gold is already owned by the Germans!

Fri, 04/20/2012 - 09:03 | 2360753 Harlequin001
Harlequin001's picture

Who said anything about invading Greece?

Mind you, Greece just happens to have some good things going for it, rather nice looking women, cool beaches, shit loads of ouzo and some soon to be excruciatingly cheap labour...

and I believe the Parthenon will soon be up for sale, for a very small amount of gold...

Fri, 04/20/2012 - 10:29 | 2361062 Nussi34
Nussi34's picture

You must like fat women!

Fri, 04/20/2012 - 11:03 | 2361205 Harlequin001
Harlequin001's picture

I like a da all women...

It's just that some are just nice to talk to that's all.

and others are good for cleaning the house...

Fri, 04/20/2012 - 09:33 | 2360845 Marc_W
Marc_W's picture

The U.S. military has twice the troops in Germany than Germany has in its entire military.  They're an occupied slave race and have been for 70 years.

Fri, 04/20/2012 - 09:45 | 2360877 Harlequin001
Harlequin001's picture

Except German soldiers are quite proficient, which is more than can be said for large unwieldy and untrainable armies that hide their faults behind long distance missiles and predator drones, which the US can't afford for much longer. The US military has twice the troops in Germany as you say, but Germany isn't paying for them is it?

When they've had enough they, just like everyone else will tell the US to go and the US will leave, just like everywhere else. But why do that when the US is paying for everything? Perhaps not so stupid after all eh, on the part of the Germans...

Fri, 04/20/2012 - 09:51 | 2360903 Marc_W
Marc_W's picture

Germans are the fattest people in Europe and their troops the fattest on Earth.  Nobody is afraid of sie Germans anymore Tommy.  You've got your head stuck in History Channel reruns.

Fri, 04/20/2012 - 10:26 | 2361057 Harlequin001
Harlequin001's picture

You just keep telling yourself that...

I'm sure one day someone else will believe it too...

Fri, 04/20/2012 - 10:59 | 2361190 LarryDavis
LarryDavis's picture

Europe for the most part (Germany included) does not have the type of belligerent homicidal videogame playing maniacs required to fuck with the US. While our military might not have the subtlety, it has unmatched brute force and funding. I'm no expert but that continent doesn't breed ignorance, frustration, and desperation sufficiently well to make great killing machines. Although, this generation of Europeans growing up in what will be dark times could be quite capable. Just look at the some of the fighting in Albania, Yugoslavia, Bosnia, etc as examples. As I see it, no first world nation other than the US (and possibly Israel) is capable of sending young people uncaring enough to really fuck shit up. 

Fri, 04/20/2012 - 11:02 | 2361198 Harlequin001
Harlequin001's picture

Rubbish.

Fri, 04/20/2012 - 11:26 | 2361288 LarryDavis
LarryDavis's picture

Go live in Germany or Spain as I have and then come back to the US. What differences do you see? Whether you know it or not, we live in a first world country with a decidedly paramilitary edge. Everyone has arms, loves all forms of pseudoviolent competition (football, mma, etc), and we are not averse to VIOLENT CRIME here in the US. Smuggling? Human Traffciking? Gun Running? Large prisons full of disenfranchised felons? Check. How about Iran Contra? Do you know of many government's selling kilos to buy guns? Everyone has a hustle here. JFK's father was a bootlegger and his son became the FUCKING PRESIDENT. America is wild, fucking crazy, and LAWLESS when compared to many places. Our society is different and, accordingly, so is our approach to martial conflicts. Europe doesn't have that and I won't hear otherwise. 

Fri, 04/20/2012 - 11:51 | 2361353 Harlequin001
Harlequin001's picture

There is nothing going on in America that wasn't imported from Europe. Nothing.

Fri, 04/20/2012 - 15:55 | 2362179 Bicycle Repairman
Bicycle Repairman's picture

Sushi?

Fri, 04/20/2012 - 19:22 | 2362709 mick_richfield
mick_richfield's picture

I wasn't imported.

Fri, 04/20/2012 - 12:49 | 2361514 Rynak
Rynak's picture

 

Umm.....when did the Germans mind funding 60 somethings Greek retirements? Seems like the least they could do.

There, corrected it for you, propaganda whore.

Fri, 04/20/2012 - 08:50 | 2360715 jus_lite_reading
jus_lite_reading's picture

Germany wants to hang on to the EU because it is benefiting greatly from the poor EURO FX rate... we all know that if Germany was on its own the DM to USD would be 2.40+ but right now is 1.30

And secondly, Zero Hedge is the only real news source that matters. Despite having access to Thomson Analytics I don't even bother. And no need to even mention the other fake financial news sites like The Street and CNBS. Zero Hedge, you have my full attention and admiration.

Fri, 04/20/2012 - 09:09 | 2360762 economics9698
economics9698's picture

Are you dating Tyler?

Fri, 04/20/2012 - 09:36 | 2360850 Marc_W
Marc_W's picture

ZH is great but think for yourself.  I find the contrarian view to many of the ZH group think based memes to be more represenative of reality.

 

You were all screaming to buy gold when it was over 1900 an ounce too.  And to short the Euro, which would have been an awful move.

Fri, 04/20/2012 - 09:44 | 2360876 jus_lite_reading
jus_lite_reading's picture

I don't believe in group think. I pave my own roads and follow them so as far buying gold at $1900, that was your own choice. (Anyone want to calculate the price of gas in gold, the price of computer memory in gold, the DOW in gold or the price of milk in silver? Don't complain.

That said, ZH is still the only site that gives you the news straight and raw and I really hand it to them for coming up out of nowhere so quickly... 

Fri, 04/20/2012 - 09:58 | 2360930 Zero Debt
Zero Debt's picture

You are suggesting that ZH is making trade recommendations? Be reasonable.

Fri, 04/20/2012 - 10:21 | 2361026 Marc_W
Marc_W's picture

No, but the Zero Hedge community sure does via these comments sections.  The group think here is that gold should be purchased at any price, all government will disappear, and we'll be bartering our teenage daughters for 2 chickens and a silver coin within a matter of months.  That along with the break up of the E.U.

 

I don't buy into any of these notions.

Fri, 04/20/2012 - 10:30 | 2361067 Nussi34
Nussi34's picture

I have 6 chicken and 3 silver coins, please send your teenage daughters here!

Fri, 04/20/2012 - 10:30 | 2361074 jus_lite_reading
jus_lite_reading's picture

>>"The group think here is that gold should be purchased at any price,"<<

If you believe that the proverbial shit is about to hit the global economic fan blades, then yes, gold should be purchased at any price, for we are not looking for "gains" in fiat but surviving afterwards...

>>"all government will disappear"<<

No but there is far too much gov't intervention in our daily lives. what's the purpose of gov't again?

>>"and we'll be bartering our teenage daughters for 2 chickens and a silver coin within a matter of months"<<

In times of distress, you'll do whatever you have to do to survive. Let me say this: a hungry man is a dangerous man. You included.

BTW, if can't see what is coming shortly, then I have no pity for you. 

http://kaygranger.house.gov/weekly-enewsletter-executive-order-you-should-know-about

It's almost here...


Fri, 04/20/2012 - 16:41 | 2362319 Bunga Bunga
Bunga Bunga's picture

That is an elitist myth distributed by brainwash media.

Germany got even more competitive in times when the Deutsch-Mark was strong, because they had to compensate for lower sales revenue. But now, in times when their currency is "weak", their industry gets even more competitive. Why this? Of course, the export revenues grew tremendously over the last ten years, which lead to a strong trade surplus.

Compare it to Greece. Before the Euro and fixed exchange rates the Drachme was very weak. But they neither benefited from a weak currency then or were able to improve their productivity over the last 13 years, which a strong currency actually mandates.

We see that economic prosperity is a much more question of mentality and culture, much less a question of currency value.

In addition you have to differentiate what it means, if one says that Germany is benefitting greatly. Real wages for majority of Germans went down over the last 10 and 20 years. The only who are benefitting greatly are the German and international elitists who own all these companies.

 

 

Fri, 04/20/2012 - 08:15 | 2360629 cossack55
cossack55's picture

Angry kraut = quavering Frenchy

Fri, 04/20/2012 - 08:20 | 2360639 Seize Mars
Seize Mars's picture

They're not "krauts" and "Frenchys," they are human beings.

The Euro currency was invented by French banks. Read a book.

Fri, 04/20/2012 - 08:32 | 2360659 GetZeeGold
GetZeeGold's picture

 

 

Well if the French invented it....they shouldn't have to pay anything. They've already done the hard work.

 

Fri, 04/20/2012 - 12:30 | 2361456 Ghordius
Ghordius's picture

by inventing the French kiss?

Fri, 04/20/2012 - 08:41 | 2360690 cossack55
cossack55's picture

Which one, Mein Kampf or Les Miserables?

Actually don't need to. Lived there many years.  Oh, and fuck you.

Fri, 04/20/2012 - 09:31 | 2360840 Praetor
Praetor's picture

I think within a decade every European will be writting their Mein Miserables.

Fri, 04/20/2012 - 10:08 | 2360956 Seize Mars
Seize Mars's picture

People are angry, it's a good thing. But let's try to remember. The French people don't want to dominate anyone. The German people don't want to dominate anyone. They just don't. Talk to some friends over there. The Germans voted against Euro membership many different ways. Their politicians were liars and the people were sold out.

The problem is of course paper money. If you want to correctly assign blame, look at the banking system for what it is, a method to exploit people and set them against each other. Let's not be their victims. Think your way through this. Let's place the blame where it belongs - the criminal enterprise that is fiat money. Not each other, not some "others" like (insert ethnic slur here). It's not correct to do that.

Peace!

Fri, 04/20/2012 - 08:44 | 2360702 EscapeKey
EscapeKey's picture

No, it wasn't.

It was forced down Germany's neck by French socialists, led by Francois Mitterrand. Unless the Germans accepted the common currency, France would veto German reunification.

Fri, 04/20/2012 - 09:24 | 2360810 GetZeeGold
GetZeeGold's picture

 

 

Push the button Angela......just do it.

 

Fri, 04/20/2012 - 19:27 | 2362715 mick_richfield
mick_richfield's picture

We've got the missiles

Peace to determine

And one of the fingers on the button

Will be German.

 

 

 

Fri, 04/20/2012 - 10:08 | 2360968 Seize Mars
Seize Mars's picture

Agreed. My shorthand for that was "French Banks," as I believe it to be the equivalent thing. But the damage is done. No sense us getting puffed up. It's no time to devolve into ethnic slurs. Let's rise above.

Fri, 04/20/2012 - 08:59 | 2360741 Decolat
Decolat's picture

Boiling frogs? coming up next.

Fri, 04/20/2012 - 09:03 | 2360757 LFMayor
LFMayor's picture

They're not "krauts" and "Frenchys,".

 

Says who, dago?

Fri, 04/20/2012 - 08:52 | 2360728 jus_lite_reading
jus_lite_reading's picture

The real question is, when are American's going to get angry?

Anyone heard of David Steele?

http://www.youtube.com/watch?v=EKlKGB3YwjE&feature=related

Must see video that Tyler would approve of ;)

Fri, 04/20/2012 - 09:16 | 2360785 i-dog
i-dog's picture

Excellent link! He sounds to be the first sincere "ex-CIA" speaker I've come across!

Fri, 04/20/2012 - 09:49 | 2360894 jus_lite_reading
jus_lite_reading's picture

He's the real deal. That I am certain of...

Fri, 04/20/2012 - 09:36 | 2360854 Marc_W
Marc_W's picture

France has nukes and Germany has been occupied by the U.S. military for 70 years.

Fri, 04/20/2012 - 08:15 | 2360630 SilverIsKing
SilverIsKing's picture

As bad as anyone may think this really is, it's actually 1000 times worse.

Fri, 04/20/2012 - 08:51 | 2360672 GetZeeGold
GetZeeGold's picture

 

 

Thaks for pointing that out Captain Obvious.....no I mean really.....cause no one else is talking about it. Everyone else is watching dancing with the stars.

 

Fri, 04/20/2012 - 09:12 | 2360770 SilverIsKing
SilverIsKing's picture

Hey Captain Spelling Impaired,

Thaks?

Fri, 04/20/2012 - 09:15 | 2360782 Harlequin001
Harlequin001's picture

Seriously, you guys need to try fernetic spelling. Trust me, you can't reely go rong...

Fri, 04/20/2012 - 09:27 | 2360821 GetZeeGold
GetZeeGold's picture

 

 

Dude.......I'm partying with Charlie Sheen. We've taken a vote and we just put you in charge of speeling.

 

Fri, 04/20/2012 - 09:32 | 2360841 Harlequin001
Harlequin001's picture

Fabulus. Trust me, I won't let you down...

Fri, 04/20/2012 - 08:16 | 2360632 Burr's 2nd Shot
Burr&#039;s 2nd Shot's picture

Long smoking craters

Fri, 04/20/2012 - 08:18 | 2360633 Dan The Man
Dan The Man's picture

how do i get a job spinning data? i think i'd be good at it.  been finding silver linings for years now.

Fri, 04/20/2012 - 08:18 | 2360637 fonzannoon
fonzannoon's picture

I am almost certain they said Bundesbank in the movie too.

Fri, 04/20/2012 - 08:20 | 2360640 Yamaha
Yamaha's picture

When you have them by the balls their hearts and minds will follow.....

Fri, 04/20/2012 - 08:37 | 2360675 GetZeeGold
GetZeeGold's picture

 

 

....or they'll just send the Lufwaffe.

 

Fri, 04/20/2012 - 08:22 | 2360643 Boilermaker
Boilermaker's picture

They'll roll over and keep this ponzi going also.

The elite that speak German are in the same club as those speaking English, French, Japanese, et al.  This has nothing to do with nationalities.  This has to do with protecting the worlds upper elite class.

Fri, 04/20/2012 - 09:39 | 2360861 Marc_W
Marc_W's picture

I.E. the New World Order, which is based on the notion of eternal rule by a small number of neo-feudal aristocratic families.

Fri, 04/20/2012 - 09:51 | 2360905 jus_lite_reading
jus_lite_reading's picture

^^BINGO^^

And that is why, mathematically speaking, this will end in a hyperinflationary collapse and/or WWIII.

Fri, 04/20/2012 - 08:23 | 2360644 AUD
AUD's picture

How about a comparison of the obligations of the Bundesbank today with the Reichsbank in 1923?

I'm also confident that the Bundesbank is no more likely to see its credits amortised than the Reichsbank.

Fri, 04/20/2012 - 08:27 | 2360649 Arnold Ziffel
Arnold Ziffel's picture

I can't blame them for being very angry. Time they threw this bunch out.

Fri, 04/20/2012 - 08:28 | 2360652 Sutton
Sutton's picture

There is nothing to fear from angry Germans.

Fri, 04/20/2012 - 08:35 | 2360665 GetZeeGold
GetZeeGold's picture

 

 

Execpt maybe that whole 4th Reich thngy. You can push the Germans around a bit....but you don't want to push too far.....trust me on this, I've read history books.

 

Fri, 04/20/2012 - 08:49 | 2360696 Zero Govt
Zero Govt's picture

angry German people are not dangerous, it's the dysfunctional politicians and their backers (bankers?)

the way to neutralise that socio-economic disease is to take their great big tool away, Government

Stop Paying Your Taxes

..don't fund the retards

Fri, 04/20/2012 - 08:50 | 2360721 Dr. Engali
Dr. Engali's picture

That statement could be made about people and governments around the globe. Do we really need government ? Really? I don't think so.

Fri, 04/20/2012 - 09:57 | 2360922 i-dog
i-dog's picture

We need governments like we need a hole in the head ... which is apparently what the US government is planning for around 450 million soon-to-be-stunned [or just resting] sheep in the near future....

Fri, 04/20/2012 - 10:10 | 2360995 Dr. Engali
Dr. Engali's picture

You didn't get the memo? Those rounds are for target practice. Of course the memo didn't say what the targets are.

Fri, 04/20/2012 - 19:31 | 2362723 mick_richfield
mick_richfield's picture

A while ago, Americans showed the world how we could make a country without a king.

At the time, most people thought that was a contradiction in terms.

Next, we will show the world how we can make a country

without a government.

 

 

Fri, 04/20/2012 - 08:41 | 2360683 ultimate warrior
ultimate warrior's picture

http://www.youtube.com/watch?v=VRTngtsOY8Q

Oh no....don't let the Germans come after me....oh no im soooo scared. /Mr. Burns sacrasm/

Fri, 04/20/2012 - 08:31 | 2360655 earnulf
earnulf's picture

Love the "Die Hard" reference, CLASSIC!    Of course it is just made that much better by the rock solid evidence of the freight train bearing down on the VW Bug stuck on the tracks!

Fri, 04/20/2012 - 08:39 | 2360682 kridkrid
kridkrid's picture

1.

Schieß dem Fenster

2.

The quarterback is toast.
Fri, 04/20/2012 - 08:37 | 2360662 Zero Govt
Zero Govt's picture

Weimar Germany (1920's) meet Weimar Europe (2000's)

while Merkal postures her arse off talking tough to get re-elected she's given the ECB her explicit approval to print the face off the €euro to bailout the sinking (stinking) Euro Project

German politicos and bankers have learnt zero, they're at it again destroying their industrious private economy in the name of Euro "peace, liberty and prosperity" 

...she'll achieve the exact opposite (as all Govt policies do)

Fri, 04/20/2012 - 08:57 | 2360733 Treeplanter
Treeplanter's picture

I suspect the Germans feel they have done more than their part and therefore have no qualms about leaving the euro before it's too late.  That would allow the new French gov't to print all the Zimbabwe euros they want.  We need an ETF that shorts European financials.

Fri, 04/20/2012 - 08:31 | 2360663 wandstrasse
wandstrasse's picture

In order to become angry, people would need to understand the fiat ponzi system... which they do not... nowhere... And when tshtf next time people will beg for help from the very same leaders who caused the problem.. out of cowardice, ignorance and total Keynesian delusion.

Fri, 04/20/2012 - 08:39 | 2360681 valley chick
valley chick's picture

Would have green arrowed you some more if i could...well put wandstrasse.  I can not believe the citizens of Germany are any more aware of the ponzi scheme than those in the US. :(

Fri, 04/20/2012 - 08:50 | 2360720 kridkrid
kridkrid's picture

The really crazy thing... it's not a terribly complicated concept to get your arms around.  1. Virtually all money (what we call money, anyway) is loaned into existence.  2. It is loaned with interest.  3. The "money" to pay the interest doesn't exist, so the system must create more money/debt in order to keep the system alive. 

The concept that debt can or will be paid down is false (important to explain here that individual holders of debt can, obviously, but the system as a whole... the aggregate of debt CAN'T).  It is Ponzi Scheme 101, really... but on such a large scale.  The exponential function is useful to introduce here as well, but sometimes that's asking a little much.

Fri, 04/20/2012 - 09:15 | 2360780 Vince Clortho
Vince Clortho's picture

"... people will beg for help from the very same leaders who caused the problem "

This is why it is important to take the names of the sociopaths that are causing and supporting the current debacle.

Fri, 04/20/2012 - 08:35 | 2360668 kridkrid
kridkrid's picture

There has to be a word for people like Professor Karl Whelan, someone help me out.  The man is intellectually trapped within a topic he doesn't fully understand but feels compelled to 1) act as if he does and 2) more or less mock the "stupidity" of those poking holes at the faulty premise he's trying to hold together.  People like Whelen get churned out of our academic institutions and begin immediately to carry water for the system.  Most have no idea that they are doing it, I suspect.

Fri, 04/20/2012 - 08:44 | 2360698 StychoKiller
StychoKiller's picture

Will pontificating, stuffed shirt do?

Fri, 04/20/2012 - 09:19 | 2360788 Vince Clortho
Vince Clortho's picture

You do not have to be intelligent to advance your career in the Ponzi.  You just need to be committed to its goals, and have no regard for the common people.

In other words, a tool.

Fri, 04/20/2012 - 09:28 | 2360828 kridkrid
kridkrid's picture

I referenced this yesterday, makes sense here as well.  The book, Manufacturing Consent by Noam Chomsky does an excellent job of describing the mechanism that creates this outcome.  Interestingly (for me anyway) he and Ayn Rand would likely recognize the same mechanism, though I'm guessing that they would consider themselves to be at polar ends of the intellectual spectrum.  Ditto for a Ron Paul and Noam Chomsky.

 

Fri, 04/20/2012 - 08:37 | 2360674 FinsterMonster
FinsterMonster's picture

Anyone care to explain this section:

"Even if countries told each other to go to Hell, the euro would simply cease to exist and the Bundesbank could write a cheque to itself. There would be no inflation and no loss to the German taxpayer," he said.

"We live in a world of fiat currencies, not the Gold Standard. People making these claims don't understand how a central bank works," he said. His views are shared by ECB experts."

 

Why could bundesbank write itself a cheque and not get inflation or loss to the German taxpayer?

Does it mean that the inflation has already happened and therefor it does not become future inflation if all debt between the euro-nations would be "forgiven"?

I clearly do not understand how a central bank works...

Fri, 04/20/2012 - 08:43 | 2360689 AUD
AUD's picture

"ECB experts" should explain everything.

Fri, 04/20/2012 - 08:43 | 2360676 Dr. Engali
Dr. Engali's picture

"Even if countries told each other to go to Hell, the euro would simply cease to exist and the Bundesbank could write a cheque to itself. There would be no inflation and no loss to the German taxpayer," he said.

So let me get this straight. Some bum borrows a ton of money and goes out and parties it away. He then has to pay back his debtor so he comes crawling to me and I write him a check out of my checking account and he pays off that debtor but is now in debt to me. Then we tell each other to go to hell so I write myself a check and the debt is supposed to be wiped out. Am I missing something here? It seems to me like Mr. Whelan doesn't understand debt.

If that's the case why doesn't the ECB write itself a 4 trillion dollar check and wipe out all the debt on it's balance sheet?

Fri, 04/20/2012 - 08:57 | 2360740 kridkrid
kridkrid's picture

Me, you and FinsterMonster all gravitated around the same section at the same time and posted about it.  The man is absurd.  Men like him run the system.

Fri, 04/20/2012 - 09:04 | 2360758 Dr. Engali
Dr. Engali's picture

Yeah I saw that after I posted. Guys like him are the " intellectual elite" who think they are one step ahead of everybody else. I'll bet you Rudolph Von Havenstein thought the same way.

Fri, 04/20/2012 - 09:23 | 2360808 GeezerGeek
GeezerGeek's picture

Your suggested solution indicates that you are beginning to "understand how a central bank works." Smoke, mirrors, incantations, and bewildering the common folk with BS. Anyone lacking a PhD in economics and inherent common sense will immediately recognize the superiority of the CBs' thinking and believe that they know what's best.

Fri, 04/20/2012 - 08:42 | 2360688 BudFox2012
BudFox2012's picture

Europe should remember what happened the last time they imposed Germany with an unsustainable financial burden...

Fri, 04/20/2012 - 08:49 | 2360712 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

What happened? Beer, big firm breasts, and sausage are all that comes to mind when I think of Germany.

Fri, 04/20/2012 - 08:52 | 2360725 Dr. Engali
Dr. Engali's picture

The Irish brew the best beer. Nothing beats a Guinness.

Fri, 04/20/2012 - 09:24 | 2360804 Marc_W
Marc_W's picture

Guinness is an acquired taste, but is hardly representative of the pinnacle of beer brewing.  If it were, there would be more copies of it instead of thousands of craft ales and lagers.

Fri, 04/20/2012 - 09:38 | 2360858 Dr. Engali
Dr. Engali's picture

You're right there. I'm expressing my opinion. There are a lot of good beers out there Guinness happens to be my favorite.

Fri, 04/20/2012 - 09:43 | 2360875 Fuh Querada
Fuh Querada's picture

For Guinness to be genuine, you have to be able to taste the nails and bicycle chains.

Fri, 04/20/2012 - 11:17 | 2361248 Clowns on Acid
Clowns on Acid's picture

Aha...finally something I am an expert on...Guinness is the lowest carb (non Lite) beer on the market with the most monirals and vitamins in it.

Up until 1970s Irish doctors used to prescribe 1 Guinness a day to pregnant women, 4 Guinness a day if they wanted to get pregnant.

Fri, 04/20/2012 - 09:29 | 2360832 Marc_W
Marc_W's picture

Tens of millions of Germans died at the hands of the Jewish controlled Anglo-Soviet alliance.  Israel was created out of Palestine and handed to the Jews to be their seat of power.  Germany was split in twain for a generation.  America gained multiple massive permanent military installations in Germany that still operate today.  And the German people were permanently enslaved to the alliance of Anglo and Jewish elites and their plans for a New World Order.

 

The Germans are psychically scarred forever and no threat to anyone but themselves.

Fri, 04/20/2012 - 10:59 | 2361187 dataanalytics
dataanalytics's picture

Bud, and this will be unpopular, but I don't give a shit. I WISH that Germany would revert to the past and bring down the house. Listen, A major war is inevitable- it's just a matter of when. I think the world needs a reset. Though if it is nuclear, the reset might be the last one ever.

But I believe that a major war involving Europe/N.A and Asia is just what the doctored ordered. Everything is completely out of control. Strife and disparity are increasing day by day. The 'boiling point' has to come, again it's a matter of when it comes.

As I watch what is happening throughout the world, I cannot believe most people just bend over and take the ass fucking all these governments are giving their citizens. When will enough be enough? It seems that the majority of the world has been sanitized. Put on Thorazine of Reality TV, Flat Screens, and latte's. WTF.

I honestly hope to see mass revolution in my lifetime, though I suspect it will be just small pockets here and there and ultimately controlled by the world's elite.

 

Fri, 04/20/2012 - 11:00 | 2361188 dataanalytics
dataanalytics's picture

Bud, and this will be unpopular, but I don't give a shit. I WISH that Germany would revert to the past and bring down the house. Listen, A major war is inevitable- it's just a matter of when. I think the world needs a reset. Though if it is nuclear, the reset might be the last one ever.

But I believe that a major war involving Europe/N.A and Asia is just what the doctored ordered. Everything is completely out of control. Strife and disparity are increasing day by day. The 'boiling point' has to come, again it's a matter of when it comes.

As I watch what is happening throughout the world, I cannot believe most people just bend over and take the ass fucking all these governments are giving their citizens. When will enough be enough? It seems that the majority of the world has been sanitized. Put on Thorazine of Reality TV, Flat Screens, and latte's. WTF.

I honestly hope to see mass revolution in my lifetime, though I suspect it will be just small pockets here and there and ultimately controlled by the world's elite.

 

Fri, 04/20/2012 - 19:41 | 2362744 mick_richfield
mick_richfield's picture

You're right.

It was terrifying.

The Wehrmacht slaughtered a lot of unarmed civilians.

They defeated Poles who led horse-cavalry charges against main battle tanks.

And they got their asses kicked by every actual army that fought them: the British, the Americans, and, mostly, the Russians.

The Wehrmacht lost every time.  Big.

Fri, 04/20/2012 - 08:45 | 2360701 bugs_
bugs_'s picture

this second Versailles Treaty sucks for them as much as the first one.

Fri, 04/20/2012 - 08:46 | 2360710 francis_sawyer
francis_sawyer's picture

To paraphrase Hans Gruber even more loosely...

~~~

"Yippee kai yay mother fuck..."

Fri, 04/20/2012 - 08:51 | 2360719 GetZeeGold
GetZeeGold's picture

 

 

 

Heh heh........I stand in the presence of brilliance.

 

Fri, 04/20/2012 - 08:51 | 2360722 rsnoble
rsnoble's picture

Hmmm.......looks like Germany has a rogue gov't that likes to assfuck it's citizens just like the good 'ole USA does. 

Fri, 04/20/2012 - 09:23 | 2360799 Marc_W
Marc_W's picture

Democracy and representative government is a lie world wide and has been for many decades, if not always.  It is just with the internet we peons now have access to sufficient information to discern these truths.

Fri, 04/20/2012 - 08:50 | 2360723 yogibear
yogibear's picture

The Germans have been sissyfied, just like the Irish by the IMF and the banksters. The German taxpayers will just have to have money taken from them to support the Club Med countries and France.

 

Fri, 04/20/2012 - 08:58 | 2360737 xcehn
xcehn's picture

German taxpayers are boiling about being on the welfare-for-those-obscenely rich-EZ Banksters-hook to the open-ended tune of trillions? Past high time.

Fri, 04/20/2012 - 09:12 | 2360754 Renfield
Renfield's picture

Here is the problem not just in Euroland but in North America as well. From the article:

Professor Karl Whelan from University College Dublin said the debate is absurd, whipped up by populists and the German media. "If the euro breaks up, there are still assets to go along with the liabilities. The likely outcome would be a 'Bretton Woods weekend' with a gentleman's agreement to carve up the losses." "Even if countries told each other to go to Hell, the euro would simply cease to exist and the Bundesbank could write a cheque to itself. There would be no inflation and no loss to the German taxpayer," he said. "We live in a world of fiat currencies, not the Gold Standard. People making these claims don't understand how a central bank works," he said. His views are shared by ECB experts.

Wait, so debt that means years of labour and people's earned assets, including their home and the food they need, that debt all gets squared away over a handshake and a quiet word among the aristocracy, a "gentleman's agreement"? Wait, whut??!!

These central banking parasites, pardonnez-moi, university "professors", apparently think of money as a purely imaginary phenomenon. So if the numbers don't work out, then POOF, you just "write a cheque to yourself". Because fiat debt is just another made-up number "that we owe to ourselves". Any amount of money can be printed or conjured at will, by the few select people of the elite. They are money "gods", who create and distribute money that everyone below them gets to use. It isn't what you do, it's who you are, in the elite viewpoint, I guess.

The people, however, see money as THEIR LABOUR. That means it is finite. And nobody wants to volunteer for steadily increasing labour where they essentially "work until they drop", so that imaginary "money" can be shifted around by the money gods ("The Powers That Be"), with a little of the crumbs "trickling down" to those who must labour for daily bread. A few crumbs plus enough hunger will keep the hamsters on the wheel of productivity and consumption.

What we have here is a disconnect between those who "believe in" fiat money - those who would be at the "top" and get to be the ones to create and distribute - and those whose money is connected to labour and assets. This is the essential problem with the whole "fiat" system.

Fri, 04/20/2012 - 09:07 | 2360761 RSDallas
RSDallas's picture

This is what Nigel Farage had to say yesterday.  I just love this guy!

 

http://www.ukipmeps.org/articles_367_Nigel-Farage-Euro-Break-Up-Just-a-Question-of-How.html

 

Fri, 04/20/2012 - 09:17 | 2360784 GetZeeGold
GetZeeGold's picture

 

 

Nigel Farage...........rocks.

 

Fri, 04/20/2012 - 19:47 | 2362751 mick_richfield
mick_richfield's picture

I don't know.  His name sounds suspiciously French...

Fri, 04/20/2012 - 09:21 | 2360774 Marc_W
Marc_W's picture

The Germans are a slave race and have been since they were annihilated in World War 2 by the Jewish controlled Anglo-Soviet alliance.  They will not do anything to undermine the European Union as it is the cornerstone of the New World Order and one world government.  The opinion of the German people (peasantry) with regards to economic and foreign policy matters exactly as much as the opinion of the American people (sheeple) with regards to same - zero.

 

If you can figure out a way to trade on the fact that the Euro currency will recover and the European Union will exist another 50 years, make that trade.  There is zero chance of the Euro currency or E.U. disappearing as they are "too big to fail."

Fri, 04/20/2012 - 09:30 | 2360837 virgilcaine
virgilcaine's picture

None angrier than Merkel herself, she wants to start kicking some..

Fri, 04/20/2012 - 10:48 | 2361152 dataanalytics
dataanalytics's picture

I disagree. I think Merkel is poser. She doesn't fight for Germany. She is a puppet of the EU. her 'anger' is manufactured. Theater for the media.

Fri, 04/20/2012 - 19:47 | 2362753 mick_richfield
mick_richfield's picture

arsch ?

Hinterteile ?

Fri, 04/20/2012 - 09:57 | 2360890 BlackholeDivestment
BlackholeDivestment's picture

Remember when http://www.youtube.com/watch?v=Q-9ry38AhbU 

they cheered Rosemarys Baby? http://www.youtube.com/watch?v=OThtit6hsRU 

...as he faced the seat of Satan? http://www.youtube.com/watch?v=5KcRl1p2waM&feature=related 

http://www.youtube.com/watch?v=fcYKhQTwD-I&feature=results_video&playnext=1&list=PLAB5D5E3FE4CE8A61

Germans getting mad? When does that ever happen? Lol. Someone just shouts Holocaust and they get robbed some more. Lol. http://www.youtube.com/watch?v=2rxWPEdYCnI

Fri, 04/20/2012 - 10:45 | 2361138 dataanalytics
dataanalytics's picture

Exactly. In a way, it is a shame that Germany had its balls cut off by the rest of world after WWII, while the Soviets were lauded as our "Allies" when in fact the Stalin regime was just as brutal and violent and mad as the Nazi regime was. Perception- not reality allowed the Soviet Union to go forward and now we see a Russia that is led by a life-long, hard-line communist. A Russia who has been building up their military. A Russia who had un-provoked attacked Georgia. Supports Iran. Controls Gazprom (that cut off the Ukraine in the dead of winter a few years ago).

If Germany did such things- the outrage and uproar would be deafening. The hypocrisy is at defcon 1. Germany has been reduced to a castrated three-legged dog that must beg for the rest of Europe's (and the world for that matter) approval. I say fuck that. Rise up Germany and start to flex some muscle in the EU and the EZ.

Of course I know it won't happen, but it would great to see the rest of Europe become 'nervous' if Germany started to actually become 'proud' and reject the parameters and constraints Europe has imposed on her. If she said hey, Fuck you, we're going to build up our military. We're going to set the terms. We're (not) going to cow-tow to the French and the other appeasing nations of the EU and the fucking scumbags in the U.S. government as well.

Yes, it is only but a dream...oh well. At least I can still dream, while it is not considered to be a 'threat' or an act of terror by the modern-day Stasi of the U.S. government. I wouldn't want to upset the man-child with any kind of dissenting dreams...

Fri, 04/20/2012 - 09:50 | 2360893 Jack Sheet
Jack Sheet's picture

You people have to know that Prof. Hans Werner Sinn is an anti-Keynesian economist who is persona non grata in the highest circles of German political power. The panel of economists who have the say are the "Fuenf Weisen = Sachverstaendigenrat" that includes the diehard Keynesian Peter Bofinger. Sinn will never be elevated to this elite level.

Fri, 04/20/2012 - 10:30 | 2361073 i-dog
i-dog's picture

At least none of them, in the last 13 years, have been Bilderbergers or Goldmanites ... unlike many (most/all?) other states in the EU.

Fri, 04/20/2012 - 10:04 | 2360955 Judge Arrow
Judge Arrow's picture

Foster Brooks inquires: Dr. Whelan from uh, Dublin  - hmm, eggsactlees wats are u drinking, sir, could u pour that all around here? It's all free, everything's free, keep pouring, that's it...ah, ha, ha, ha, ha....yes.

Fri, 04/20/2012 - 11:18 | 2361253 brunoaa
brunoaa's picture

Germany returns to DM. Only accounts of German nationals/residents/corporation are transformed in DM the rest remains  in Euro. Problem solved

Fri, 04/20/2012 - 12:21 | 2361425 gnomon
gnomon's picture

I think the Professor Karl Whelans and the Professor Paul Krugmans of the world should be among the first to be tossed upon the street corner bonfires of euros and dollars when Weimar World arrives.

A good cackle when you are cold and hungry is good for the soul.

Fri, 04/20/2012 - 13:02 | 2361555 CABill
CABill's picture

Better off Ted - Veronica: “Oh God, unhappy Germans, nothing good has ever come of that.”

Fri, 04/20/2012 - 13:44 | 2361714 reTARD
reTARD's picture

For whatever reason my initial read of the title was:

"Why German Templars Are Finally Boiling"

LOL

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