Exposing the Euro Clowns

Off the keyboard of John Ward

Follow us on Twitter @doomstead666
Friend us on Facebook

Published on The Slog on April 10, 2015

Euro_collapse

Discuss this article at the Economics Table inside the Diner

EXPOSED: The reason why none of us can be sure what’s going on in the EU v Greece yawn

merkmario1pt

When there is only cacophony, nobody can follow the tune

I’ve posted many times before about why a neolib minority constantly dissembles to confuse: there is so little ‘truth’ behind their ridiculous socio-economic and fiscal theories, they have no choice but to do what they do.

The same thing applies to the European Union, the ideas behind which – non-sovereign federalisation and yet a single currency ambition – make no anthropological, banking, libertarian or Bond market sense at all.

But there is another reason why second-guessing what comes next in the EU has been an impossible task in recent years: the people allegedly running it (another Slog hobby-horse this) are split along several crucial dimensions. So apart from the banking lies and the let’s-rewrite-history school of mogul-lapdog tabloid journalism, we have this factor added to the witch’s brew: if they don’t know what’s going to happen next, how the hell are we supposed to speculate with any accuracy?

We are now, little by little, beginning to see the odd glimpse of holey stocking beneath the holy, long skirts of sanctimony pumped out by the various power points in Berlin, Frankfurt, Paris and Brussels. Even better, we can catch these glimpses…..and view them alongside what the BSDs – preparing for what they think is to come – put out their agenda in the media they own and/or influence.

This morning offers a classic example of this. The Americo-Austropathicus threat Rupert Murdoch puts out this version of the immediate future in his Times newspaper this morning:

‘….Eurozone countries are secretly drawing up plans to expel Greece from the European Union’s single currency as they prepare for the country to be declared bankrupt next month.

A memo drawn up by the finance ministry in Finland, which is closely allied to Germany, has revealed preparations for a Greek exit from the euro.

The document warns of “very difficult political decisions” this spring amid predictions that Greece will be bankrupt next month unless the eurozone agrees the next tranche of aid for it within the next three weeks.

Greece has been given until next Friday to come up with…..’

Here the message ends, the rest of it hidden behind Roop’s paywall – which continues not to get many people paying to climb over the wall. This is slightly different to the Telegraph, where the Barclay Twins peddle their corporate bias completely free, but both readers and journos are climbing a Berlin Wall in a desperate bid to get out.

But the tone is clear: Greece is a disaster area, they’re all scrounging mongrels, so like dogs they shall be kicked out of the house. Except of course this can’t happen legally without treaty change….so here we see more Turdcock readying the ground for something illegal that will be accepted by the Sleeple because they, er, read it in a quality newspaper recently or something and what should we download from Netflix tonight?

Here, Murdoch is doing the will of ECB boss Mario Draghi….because he agrees with what Mario and the Goldin Sacks lads see as the future.

But this is just one power centre. Wolf Street pointed out yesterday in another smart piece that the Jean-Claude Drunker view of the world is quite different, because he leads the EC – an unelected bedlam of corruption which is seeing its power rapidly eroded by the ECB and Berlin, plus the odd Weidbombe thrown in by Frankfurt.

This time, the road being followed conjures up an entirely different future…one in which the FuhrerJuncker’s Luxembourg will be left alone to pull every tax-evading bank stunt in the book, but those in the commercial sector will be asked to return to some vague version of recognised value.

We’ve been here before, but the subhead is ‘Clubmed banks no longer able to disguise loan made in 2002 to Tartan Paint Co Venezuela sa as an asset’. This is going to cause all kinds of mayhem in Greece, Italy, Portugal and especially Spain – where the practice has been used to suggest the banks are still solvent, when of course we all know they’re broke.

More importantly, although the ECB pays lip-service to reforming ezone banking accountancy, the EC policy will put it on a collision course with Mario Draghi.

But we don’t want to leave it like that, good God no – get a grip dear reader: this is the EU, where disaster must be meticulously planned to ensure that it moves from probable outcome to racing certainty.

And so we move on to Wolfgang Schauble the Secret Wheelchair Weapon…and Jens Weidmann, the Bundesbank’s Big Banana. While they share the ECB-Eurogroupe-Troika’s general approach – “Let’s blame Greece and show the markets we’re safe” – the Dutch Donkey Dijessilbloem is hated by the ECB because he’s a threat to their power….and despised by Weidmann as a fiscal lightweight. Dieselboom also has a tendency to blab, a trait which doesn’t endear him to Wolfie.

Where the two Germans chiefly differ from the rest of the pack is that they believe in fiscal and currency discipline – and of course, the ulltimate right of Berlin to run the Fiskalunion. Also their heads are stuck in 1923.

Two days ago, Weidmann went public again to say he did not think Greece should issue any more Treasury Bills – to help stave off the bankruptcy forced upon Greece by a Berlin-exaggerated problem and a Wall Street/Troika inspired infinite slavery repayment ‘programme’ – and he did not think QE was necessary. In short, real monetarism rules, OK.

I’m sorry to labour this point, but these are thus the three ‘strategies’ being proposed by ‘A United Europe’:

1. Greece should be kicked out (ECB)

2. Banks should be telling the truth about their balance sheet fraud (EC)

3. We should stop QE now and get Greece back in the programme at all costs (Germany)

Now, what we are not going to get is a debate followed by a decision, because this is The Fourth Reich, and we don’t do discussion…we do divide and rule. Also we have a crypto-Queen in Berlin who never makes any decisions until one eventuality or another is crystal clear. (The real sign to watch for is Frau Doktor Merkel moving her Chancellery fridge down into the bunker. Or Moscow. Or Frankfurt. Or Washington. Those wanting to have it all must “get on their bikes”).

What we will get is all three being followed at the same time. And this must involve a continuing QE blast alongside Greek forced exit from the eurozone (breaking the Lisbon Treaty on at least five counts) but still in the EU plus a contagion outwards towards Italy and Spain accelerated by the EC’s search for Beyond Basel III to come into force plus the German financial and fiscal power centres trying to effect the exact opposite on all fronts.

There are thus in turn three potential (ie, realistic) outcomes:

1. Chaos

2. Draghi & the Eurogroup cut off the EC’s balls, leaving Juncker as a very loose but fully-loaded cannon, and with a very high voice.

3. Merkel sides with the 1923 Tendency, and leaves the eurozone.

Many other related events will of course follow – and the above trio of troubles aren’t mutually exclusive. But my view remains the same as it was by the end of 2010: the euro is dead, and the EU is eating itself. Only Mario Draghi launching a putsch to get himself declared Supreme Emperor of Europe could stop the process.

That isn’t going to happen. Draghi’s view of chaos is “bring it on”….because down that road lies US domination of all european transactions. For in this, the epoch of Western decline, that is what the Looney Tunes on Wall Street, inside the State Department/CIA axis and in Texas want.

The bottom line: anything could happen, and nothing will change on the road to global corporatocracy.

Yet.

But eventually, top-down will collapse…as all flawed administrative processes do. And after the chaos, things will very slowly get better.

I end where I started. With too many factions wanting different things from the Greece deadlock – external and internal – the reason no clear interpretation of outcome is possible swings on the surreal 3D hinge of there being no united Sovereign, and little or no commonality of aims between the factions.

Support the Diner
Search the Diner
Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D
Archives
Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

Three people go about their daily lives inside a 25-foot bubble, while a car slowly pumps exhaust fumes into it. As the air becomes...

The world's growing extinction threats are typically worst for the largest and smallest creatures, a finding that should temper conservation efforts, new research has found.The study, published on Tuesday in the Proceedings of the National Academy of ...

Criminal networks smuggling rhino horn out of Africa are turning it into jewellery to evade its detection in airports, an investigation has found. ...

Forget Wall Street. Worry about fintech. Dangerous neighborhood? It has been 10 years since the last financial crisis, and some have already started to pred...

In an overwhelming 89-to-8 vote, the Senate has approved a defense budget of $692 billion. The National Defense Authorization Act, which passed the House on different ter...

Recent Facebook Posts

The SurlyZone

The latest The SurlyZone! https://t.co/OL4YjPINsi Thanks to @jahnaberry @Vicbel76 @BettyBowers #news #bitcoin

55 minutes ago

Turkey Under Fire For Signing Arms Deal With Russia, Bucking NATO

From MintPress:

2 hours ago

Senate Approves $700 Billion In New Military Spending

From MintPress:

2 hours ago

Anti-Brutality Protests Hit St. Louis Streets For Fourth Night

From MintPress:

2 hours ago

Retweeted The Rude Pundit (@rudepundit): Seriously, Trump’s hair looks someone pissed into a cotton candy machine.

3 hours ago

Diner Twitter feed

Knarf’s Knewz

Three people go about their daily lives inside a 2 [...]

Criminal networks smuggling rhino horn out of Afri [...]

Forget Wall Street. Worry about fintech. Dangerous [...]

In an overwhelming 89-to-8 vote, the Senate has ap [...]

Diner Newz Feeds
  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

Doomstead Diner Daily 9/18[html]... [...]

Doomstead Diner Daily 9/17[html] [...]

Quote from: Surly1 on September 16, 2017, 04:20:56 [...]

2017-09-09 - The three percent of scientific paper [...]

Quote from: RE on August 27, 2017, 12:42:58 PMI am [...]

I am still awaiting your apology AG.RE [...]

Agelbert NOTE: Foss IGNORED this October 4, 2013le [...]

Three people go about their daily lives inside a 2 [...]

Criminal networks smuggling rhino horn out of Afri [...]

Forget Wall Street. Worry about fintech. Dangerous [...]

In an overwhelming 89-to-8 vote, the Senate has ap [...]

Quote from: RE on September 16, 2017, 02:29:59 AMh [...]

https://journal-neo.org/2017/09/13/gold-oil-dollar [...]

The fat lady is on the stage  [...]

China is the largest customer for US oil. Maybe th [...]

http://www.silverdoctors.com/headlines/world-news/ [...]

You gotta be high on SOMETHING to run into a bug b [...]

Quote from: luciddreams on August 05, 2017, 06:29: [...]

Quote from: RE on August 05, 2017, 01:00:20 AMThe [...]

I have taken a lot of abuse on my opinion of what [...]

Alternate Perspectives
  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

Of Harvests and Hurricanes By Cognitive Dissonance   Aside from the planting and harvesting of vario [...]

The American Way: Mindless Pursuit By Cognitive Dissonance   It’s actually embarrassing if I’m to be [...]

I apologize for being missing in action for nearly two weeks. July and August are very busy for Mrs. [...]

This and That - Vol. 1 Lines in the Sand By Cognitive Dissonance   When I was younger I would get in [...]

We Are All Going To Die! By Cognitive Dissonance   This one is short and sweet folks. The subject al [...]

Event Update For 2017-09-16http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-09-15http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-09-14http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-09-13http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-09-12http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

With a bit of ice on the floor depositers could almost ride the seeds right on in (photo by Global C [...]

Well, at least it was made sure that the Svalbard Global Seed Vault looks real pretty (photo courtes [...]

Now it's data that makes the world go round? It's comfortably accepted by many that what w [...]

I left off last week's post – "Money Doesn't Grow on Trees, Industrial-Scale Renewabl [...]

When you wish upon a star the Blue Fairy sends Tinker Bell, who plants a magic seed, which grows int [...]

Daily Doom Photo

man-watching-tv

Sustainability
  • Peak Surfer
  • SUN
  • Transition Voice

Is Apple Acing Chemistry but Flunking Biology?"It used to be that half of all heart patients first report their condition to their physician [...]

Irmageddon"Denial and existential climate threat are a stable pair."Image courtesy Tatyana Tomsickov [...]

The Beauty of Biomass"You probably wouldn’t want to invest in beachfront property at the rate sea level rise and sup [...]

Creative Loafing with Joe the Baker"I just want to make a really good loaf every time."Malthouse Couching by Andrea GentlWhil [...]

Planting A Personal Forest"If you appreciate the effort it takes for a single individual to become carbon-neutral, you ca [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

Americans are good on the "thoughts and prayers" thing. Also not so bad about digging in f [...]

In the echo-sphere of political punditry consensus forms rapidly, gels, and then, in short order…cal [...]

Discussions with figures from Noam Chomsky and Peter Senge to Thich Nhat Hanh and the Dalai Lama off [...]

Lefty Greenies have some laudable ideas. Why is it then that they don't bother to really build [...]

Democracy and politics would be messy business even if all participants were saints. But America doe [...]

Top Commentariats
  • Our Finite World
  • Economic Undertow

"The great project to rescue the American economy by the Fed has hit an obvious wall. The debt [...]

The Federal Reserve is setting America up for economic disaster - The Hill http://thehill.com/opinio [...]

The U.S. Will Act on North Korea Missiles That Pose a Threat, Mattis Says https://www.bloomberg.com/ [...]

Wages Rising Just A$3 a Year Has Aussies Snared In Debt Trap https://www.bloomberg.com/news/articles [...]

They could just issue their own crypto currency, Quakercoin. [...]

The Bakken statistics are still kept: https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.p [...]

Steve, if you have time to indulge me, what do you think the effect of the depreciating dollar (103 [...]

Some truth comes out of MSM: "Electrical power is needed, too, to keep water and sanitation sys [...]

Hey Steve! I'm sure your bat/laptop has plenty more hits left in it the problem is that it migh [...]

Welcome back to blogging, Steve, I missed your view of things and your way with words. "Economi [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction
Useful Links
Technical Journals

Climate change is prevalent across the world and can have large influence on plant regeneration, rec [...]

This study aims to estimate the influence of atmospheric circulation modes on future Baltic Sea leve [...]

Given the growing evidence and scientific consensus on global climate change, carbon emission tradin [...]

U.S. forests and agriculture present unique opportunities to mitigate greenhouse gas (GHG) emissions [...]

Follow on our http://www.doomsteaddiner.net/forum/