WSJ On DSK, DisUnion, And The Dismal Dithering In Europe

Tyler Durden's picture

In an interesting history, today's WSJ points to a closed-door meeting in Washington on April 14th of this year as the moment that the attempts to 'save' Europe began to unravel. The player at the center of the debacle - one Dominique Strauss-Kahn - was pressing for more 'help' from Europe or else the IMF would not deliver more magic-money to the Greeks. The ultimatum drove a wedge between many competing camps over who should be on the hook for more or less of the money required to save this tiny sovereign. Critically, as we have pointed out again and again, it is not (in this case) size that matters, but the precedent that a nation leaving the socialist construct of the Euro 'breaks' the union and the WSJ weaves a torrid tale of this increasing tension and DSK's catalytic impact and timely 'dismissal' from the process. Furthermore, the clear 'dithering' they describe among these so-called leaders offers insights into what we can expect going forward as a new fiscal compact (same as the old one) begins to emerge with mid-March hard Greek deadlines looming fast.


Wall Street Journal: Dithering At The Top Turned EU Crisis To Global Threat

At a closed-door meeting in Washington on April 14, Europe's effort to contain its debt crisis began to unravel.


Inside the French ambassador's 19-bedroom mansion, finance ministers and central bankers from the world's largest economies heard Dominique Strauss-Kahn, then-head of the International Monetary Fund, deliver an ultimatum.


Greece, the country that triggered the euro-zone debt crisis, would need a much bigger bailout than planned, Mr. Strauss-Kahn said. Unless Europe coughed up extra cash, the IMF, which a year earlier had agreed to share the burden with European countries, wouldn't release any more aid for Athens.




It was to be Europe's fateful spring. A Wall Street Journal investigation, based on more than two dozen interviews with euro-zone policy makers, revealed how the currency union floundered in indecision—failing to address either the immediate concerns of investors or the fundamental weaknesses undermining the euro. The consequence was that a crisis in a few small economies turned into a threat to the survival of Europe's common currency and a menace to the global economy.




[as we know by now] - The April meeting ended inconclusively.


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Popo's picture

Just in case we needed any more evidence that DSK was "retired".

Buckaroo Banzai's picture

...and of course, nobody's explained the "dance of joy" yet:

"Here's Sofitel security camera video from the day of Dominique Strauss-Kahn's arrest last May. It was broadcast on France's BFM-TV. Starting a little after 3:00 minutes into the video, you can see what BFM calls "The Dance of Joy:" after Sofitel management calls the NYPD to have the IMF supremo / French presidential frontrunner arrested, two burly Sofitel employees in suits who had been escorting the complainant maid step into a back room and celebrate. The big black guy wraps the big white guy in a bear hug, lifts him into the air, spins him around, and then does what looks like either an NFL touchdown dance or the Charleston."

eureka's picture

BLA BLA BLA - TD and zerohedge simply increasingly channels US Empire. To wit: "the socialist construct of the Euro..."

The EUR is no less a "socialist" construct than the USD.

You can only fool fools - whatever glory that is.

The US & UK - the USUKs (my term) and their centralized bankster-led cluster fuck of the entire world - whether you call it Anglo-Saxon Socialism or Fascism suit yourself, but spare us your condescending poorly veiled nationalist supremacy rhetoric - is patheticallhy eltarian and transparent and far worse than anything the EU could ever even begin to imagine to implement - only US'ians haven't spotted it yet, because they are too hungrily sucking up garbage rhetoric fed to them, now not just by US MSM but equally by "alternative" "media" like

Happy new year 2012 where you will see your beloved US Nationalist institutions NATO, IMF, World Bank etc etc crumble and disappear. Rest in Peace, US'ians. There never was an "america". You're too dumb to know.

ucsbcanuck's picture

DSK was a dumbass - OK, he banged the maid, no doubt about it, but he should have known better, as he was running for French President. Shouldn't have opened the door to trouble like that.

tony bonn's picture

i am sure that dsk's troubles were visited upon him by the cia/mi6/mossad for his impolitic demands....

in any event, can kicking is in such an advanced and artful state that we can be certain that march will come and go with greece lumbering on...unless, someone decides it wants to occupy or annex greece as a vice regency an option worthy of careful attention....


macholatte's picture

can kicking is in such an advanced and artful state


According to the article, the meeting was in Washington, not Europe, so it's a pretty good guess that somebody from the Fed was there and, by April, 2011, the problem was well known for more than a year. So the PTB chose to simply ignore the problem until it became a crisis.

SolidSnake961's picture

biggest conspiracies of 2011: DSK accusations, Bin Laden, Silver, and MF Global

vast-dom's picture

Silver is the most egregious!

slewie the pi-rat's picture

newsCorp? britishPublishing? rupertMurdock?

and, of course, slewie's fave for '011: the "unrelated",  "accidentalDeath" of amyWinehouse?

Best version I have ever heard - R.I.P. Amy Winehouse

Popo's picture

You left out the biggest one of all:   The murder of Khadaffi.

He threatened to sell oil in Dinar and we killed him for threatening USD hegemony.  

...And then we tried to play it off like he was a "bad man" all of a sudden and we went in and rubbed him out.  


...As if

  1. He was 'suddenly' a bad guy in 2011.  
  2. He was any worse than the dozens of other bad boys on the global stage whose oil-rich nations we don't seem to invade.


The best part was when the "rebels" established a central bank within days of the NATO operation and issued credit for oil.

Yeeeah.  Riiiight.




SolidSnake961's picture

forgot about those: TEPCO's coverup and Khadaffi's death

Manthong's picture

I seem to remember something about GOLD dinars.

macholatte's picture

He threatened to sell oil in Dinar and we killed him for threatening USD hegemony.

What do you mean "we"?

Try this: He threatened to sell oil in Dinar and was killed for threatening the global banking cartel.

Arkadaba's picture

I said he was set up and I got dissed by so many.  <sigh>

earleflorida's picture

builds character --- better than weight-lifting

ucsbcanuck's picture

he should have been waay more careful as a French presidential candidate. Paid the price.

AngryGerman's picture

anyone notice than Cameron is not included? as i was always saying, uk is out.

youngandhealthy's picture

He is a dwarf from a dwarfed nation....thats why. Who wants to play with a midget?

TooRichtoCare's picture

Cameron is not included....and thank goodness for that!  What a bunch of Terry Fuckwits!  Who in his right mind would want to hitch his political fortunes, and his country's future, to the frikkin Titanic as it sails out of port? History will be very kind indeed to Cameron and his decision to tell all the euro douchebags to sniff his pail!

ACP's picture

Bullish, as long as Madman Bernanke keeps buying euros to keep the market inflated (screw the US).

blindfaith's picture

I heard one of those aristrocrat French bankers, when asked was he worried about the euro, the US will bail out europe, we have no worries.  The snot-nose French will try to take us down just like Charles DeGaulle tried to do with gold.

I get the shivers thinking of the result of letting the whole thing fall apart, but all things come to an end...even life.  Only humans, men, think they can delay death and disasters and not pay a price.

youngandhealthy's picture Bull shit. U R lying U have never heard that. And if you have...well f... prove it U Ron Paul 19th century retard.

JPM Hater001's picture

The panels remind me of a cartoon.  Perhaps Archie and the gang?

TuesdayBen's picture

Deck of Iraqi bad-guy playing cards.

I ask you, which panel - the Iraqi Strongmen, or the Euro Big Players - shows individuals who will ultimately prove to have in their time wrought the most pain, death, damage and destruction?

Wannabee's picture

Bottom panel resembles Larry, Curly, & Moe. No disrepect to the aformentioned trio intended.

Nobody For President's picture

Three Stooges meet Scrooge McDuck?

Jlmadyson's picture

Mid March is going to be real fun with Greek debt and Fed swap lines due.

ACP's picture

The Fed will be up to Maiden L'Ane VIII by then.

El Viejo's picture

Yup, that's about right. The perfect storm continues.

redytogo's picture

Biggest coverup was and still is Fukushima

Arkadaba's picture

I'm kind of thinking you are right. That disappeared from the the news way too quickly. 

Fips_OnTheSpot's picture

Buy more physical now or tomorrow.. =)

femme's picture

Who had it in for Strauss-Kahn?  It's like what Lenin said... you look for the person who will benefit..

Goldilocks's picture

Competing camps?

More like, camps with a common purpose.

Referred to in the Transformer movies… “Matrix of leadership”


See movie, “The Corporation” (& extras) for the “Common Purpose” meme

El Viejo's picture

So what you are saying is that the gang of 8 with all subtlety has accomplished what several tyrants were not able to, sortof like a slow virus.

Payable on Death's picture

I know this borders on being naive, but what could possibly be the argument for bondholders not suffering the failure of their borrower? Does Trichet really go into a meeting and say taxpayers need to belly up because, what, his friends the bondholders shan't be made to miss their next luxury cruise?

SillySalesmanQuestion's picture

+1 to Tyler for"dismal dithering" , kudos sir...

El Viejo's picture

Appendix A-1 of the politician's handbook:

1. When you don't know what to do dither.

SillySalesmanQuestion's picture

LOL...good one

2. banal blathering

slewie the pi-rat's picture

3. porcine palavering

4. bovine bullshittering

L0L!!  and + for tyler, and tippecanoe, too!

mantrid's picture

DSK was "retired" by USA not Europe.. they say he was about to publicly unravel plans for a new reserve currency project led by UN agency:


Fifth, a new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency. The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency. Nonetheless, motivated in part by needs for self-insurance against volatility in commodity markets and capital flows, many developing countries accumulated vast amounts of such reserves during the 2000s. Hence, a new system needs to be developed

they don't arrest head of IMF for wrong "rescue" policy. the do so for "treason of the status quo"


youngandhealthy's picture

Thats it my man. That is what I have been posting for the last 12 months. US is scared to the shitty-bone for loosing their reserve-currency status. Without it, they are as alive as a stone. 

Now, I dont' wish it, but the rethoric from the Anglos-saxons need to be more humble.


Iconoclast's picture

"treason of the status quo".. Respect, nice phrase.. :-)