Weideman

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.

EuroSoap

Off the keyboard of John Ward

Follow us on Twitter @doomstead666
Friend us on Facebook

Published on The Slog on March 20, 2015

Discuss this article at the Geopolitics Table inside the Diner

https://hat4uk.files.wordpress.com/2015/03/eusplits.png

TSIPRAS/MERKEL SUMMIT: You thought Greek politics complicated? Wait until you tot up the seismic splits in the EU

Take a close look at the timeline since Thursday night’s mini-summit marathon between Alexis Tsipras and Angela Merkel.

After a 3am Friday finish, German Chancellor Angela Merkel described the meeting as “good and constructive,” but warned that the Greek government will have to meet commitments before it can access EU money. She gave Syriza exactly seven days to offer fully detailed “reform” proposals to Troika2, and then left clutching several haunches of Venison and 683 sausages for her beloved fridge.

A few hours later, however, Jean-Claude Juncker – the President of the European Commission (EC) – announced a completely unconditional 2 billion euro contribution immediately available to Greece to boost growth, tackle youth unemployment and help with the “humanitarian crisis”. Juncker said the cash for this would come from “unused EU development funds”.

When I called the EC press office this afternoon and asked how this circle might be squared, there was much scurrying about and promises of getting back to me…none of which materialised.

Those EU schisms in full

This is what’s really going on here: pissed off by the degree to which Germany and the Troikanauts are increasingly adopting the Führerprinzip in relation to EU affairs, the EC as led by J-CJ is doing everything in its power to be good-cop to Greece in general, and Tsipras in particular. This is a good old-fashioned Nazi Party power struggle, and there is every opportunity for Athens to exploit it.

But equally, we must remember that on another level entirely, Francois Hollande of France got away almost scot-free last week on deficit failures that far outweigh those of Greece….but was forced to bring in Troika-demanded laws about tax evasion…and ECB diktats about bank liquidity. This has not gone down well in his Party.

The Parti Socialiste de France doesn’t like this crap because (like many of us) they foresee the wholesale handing over of millions of votes to Marine Le Pen’s Front Nationale.

So then: we have the EC at war with Berlin and Troika2, plus France at war with Frankfurt. But just when you thought you had it sussed, more fractures appear.

For Wolfgang Schäuble is at war with Merkel over his single-minded obsession to become Supreme Leader of the as yet unformed Fiskalunion…and fighting a second front against Mario Draghi’s ECB, which in turn is fighting on another front entirely with Jens Weidemann and the German Central Bank…who rightly think that Draghula is working not for the euro, but a planned eurodollar spookily approaching parity with, um, the euro. And Merkel too distrusts the ECB boss’s motives….preferring as she does to keep her options open on the subject of which way to jump in the Dollar v Rublenimbi chasm.

Confused? You will be after this latest episode of Eurosoap. But there are far more plot lines and faultlines to develop before your confusion is comprehensively constructed.

There is the coming UK election, and the increasing likelihood of the ‘biggest’ Party needing to do a deal with EU-secessionists. There is the growing secessionist and europhobic tendency in Italy. There is Podemos support in Spain growing with every act of defiance from Greece. There is the Austro-German bank collapse epidemiology threatening everyone from Santander to Deutsche. And there remains the implacable unwillingness of Viktor Orban in Hungary to have anything to do with globalism in general, or the euro in particular.

Face facts: the EU is imploding.

 

Knarf plays the Doomer Blues

https://image.freepik.com/free-icon/musical-notes-symbols_318-29778.jpg

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

The Dow, which everyone knows is in the Mother of All Bubbles, is off a percent and half. Pardon me if I'm not impressed.It is clear that the trade war is extremely stupid and a terrible policy. But those expecting immediate financial armageddon are g...

Once, this was a long time ago, perhaps twenty years, a Cuban Boxing team visited Seattle.  Four or five men.  How they got here I don't know.  Some international weirdness.  Local news ignored it totally.  I was in a university area bar/restaurant wh...

How fast can Trumpovetsky bring on  Collapse?REhttps://www.cnbc.com/2018/06/19/dow-futures-tumble-350-points-as-china-responds-to-latest-...

Look. This country IS already socialist (albeit a very flawed example). Nobody gets turned away at any county hospital in this country. Once your medical bills bankrupt you here, you're eligible for free care, although it might not be the best care.E...

Oh please. Your bullshit gets weaker by the day. You didn't make any points to refute. Anybody can get knifed in the back, anywhere. And I can get a work permit in most countries, because I know something and have extremely useful skills. But why woul...

Diner Twitter feed

Knarf’s Knewz

Quote from: Eddie on March 13, 2018, 05:21:10 PMAl [...]

Quote from: knarf on March 13, 2018, 03:33:01 PMAU [...]

Quote from: knarf on March 13, 2018, 03:25:04 PM [...]

A new study found that the Great Recession correla [...]

From 2003 to 2005, Gina Haspel was a senior offici [...]

Diner Newz Feeds

  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

Quote from: Surly1 on June 17, 2018, 07:34:06 AMDo [...]

Doomstead Diner Daily 6/17 The Fathers' Day E [...]

Note that publication in this space of the DDD wil [...]

Quote from: Surly1 on June 14, 2018, 03:18:35 AMNo [...]

Note that publication in this space of the DDD wil [...]

Humanitarian Boat 🕊 Turned Away by Italy Arrives i [...]

STUDY WAR NO MORE 🕊A Concerned Citizens Study [...]

Quote from: Eddie on June 18, 2018, 10:37:13 AMQuo [...]

Quote from: Eddie on March 13, 2018, 05:21:10 PMAl [...]

Quote from: knarf on March 13, 2018, 03:33:01 PMAU [...]

Quote from: knarf on March 13, 2018, 03:25:04 PM [...]

A new study found that the Great Recession correla [...]

From 2003 to 2005, Gina Haspel was a senior offici [...]

The reason bad money drives out good is that gover [...]

Quote from: Eddie on June 13, 2018, 08:51:21 AMQuo [...]

Quote from: Golden Oxen on June 13, 2018, 08:31:45 [...]

Prices on the move again Dear Readers, Trust me, G [...]

https://www.huffingtonpost.com/entry/python-indone [...]

My friend Brian is up here from Spokane visiting w [...]

I guess turning them into Food Forests is out of t [...]

Quote from: RE on June 05, 2018, 12:14:17 AMBrian [...]

Quote from: Palloy2 on June 05, 2018, 01:12:55 AMT [...]

Alternate Perspectives

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

It Takes a Village… By Cognitive Dissonance     Mrs. Cog and I live at the end of a dead end private [...]

Shadows by Cognitive Dissonance   Elevation changes the way the sun and atmosphere interact. In the [...]

Learning from America’s Forgotten Default   May 21, 2018 Sebastián Edwards   As originally posted on [...]

Propaganda, Human Consciousness, And The Future Of Civilization By Caitlin Johnstone As Originally P [...]

Stupid Is As Stupid Does By Cognitive Dissonance     The other night, Mrs. Cog and I streamed a movi [...]

Event Update For 2018-06-17http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2018-06-16http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2018-06-15http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2018-06-14http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2018-06-13http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

NYC plans to undertake the swindle of the civilisation by suing the companies that have enabled it t [...]

MbS, the personification of the age-old pre-revolutionary scenario in which an expiring regime attem [...]

You know things have taken a turn for the desperate when women have started to drive. Or rather, whe [...]

From Filmers to Farmers is re-launched on the astounding open source blogging platform Ghost! [...]

The blogging scene is admittedly atrocious. Is there really no option for a collapse blogger to turn [...]

Daily Doom Photo

man-watching-tv

Sustainability

  • Peak Surfer
  • SUN
  • Transition Voice

"Fossil fuels are reaching up to pull us into their grave." Approaching the vernal equinox [...]

Is it Hot Enough Yet?"Fudging the dates to make it seem like we will cross the 2 degree threshold in 2018, however, [...]

Waiting for Korowicz"Notice how even greater fragility is being designed into the system."The first named stor [...]

Crow Fritters"Try to imagine half the numbers of commercial passenger flights in 2025 as today, or half the [...]

The Russians Aren't Coming"What exactly is our strategy for the Malthusian predicament?"  In his autobiography, Holl [...]

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 [...]

To fight climate change, you need to get the world off of fossil fuels. And to do that, you need to [...]

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 [...]

Top Commentariats

  • Our Finite World
  • Economic Undertow

NextEra Energy is the big Wind and Solar owner in the US. There was an article recently in the WSJ a [...]

Also, company depending on government subsidies to have any hope of success. But still not clear tha [...]

One unfortunate side effect of cheap energy is that it has created more free time for humans to do d [...]

You know the book 1984 (which was published in 1949 and was required reading when I was in school) i [...]

The price of oil is too high for India: https://www.bloombergquint.com/markets/2018/03/28/india-to-c [...]

FRM - Too true. I suspect that was what Steven Hawking understood when he warned us that it was capi [...]

Good point. You can bet that The Power That Be will make the military and demilitarized police the f [...]

Apparently Argentinian truck drivers are now striking as well. https://www.bloombergquint.com/busine [...]

Our big brains are actually quite good at making things simple. At least they used to be when we had [...]

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