50 thoughts on “The EU’s answer to a mountain it calls a molehill: pretend the molehill is a mountain.

  1. Pingback: The EU’s answer to a mountain it calls… « zumoit

  2. I don’t know about leveraged bollocks, but the EU’s unelected elite seem to be quite adept at rehypothecating bollocks. It’s not just the can that needs a good kicking.


  3. There were several voices in the ruling coalition drawing a line at the 211 billion that were guaranteed so far. Now, under Merkels compromise, this sum is supposed to rise to ~400 billion, which is still way to little according to the rest of the retarded bunch.
    I´m curious about how they will try to communicate that. Besides, there hasn´t even been a vote on the idiocy from the last summit (fiscal union) which needs 2/3rd of the votes (=socialists have to vote in favour, hence will have demands of their own).
    Nothing but empty posture will come from this, Merkel knows she already promised more than she will be able to deliver as it is.


  4. And the cool black dude won’t give a shit once November 6 has been and gone, just don’t take your holidays in Iran.

    On a different note, I see that Mervyn King Canute has warned that the Diamond Jubilee bank holiday could ‘harm the economy’, however I distinctly remember him saying that the royal wedding last year would be ‘good for the economy’!!??.

    Looks as though he’s getting his excuses in early, I wonder why?


  5. And here we are,if we have a job,turfing over half our earnings at this incompetent elite for what?Oh yeah to aid the great banking community of Wall Street and London and others,to hide the derivative rubbish eagerly bought by fools and sold by knaves.Yeah our taxes working really hard.
    Meanwhile our PCTs are lining up nice fat salaried jobs for themselves whilst limiting the actual amount of money to GPs.Where and when do we actually riot and get quite miffed enough for the elite to hesitate at least?


  6. A variation on the game of ‘kicky uppy’ or ‘keepy uppy’ …..instead of a ball try to keep a can of bollocks in the air.


  7. Not to mention …

    Brent crude is US$124 per barrel, petrol is US$2.50 or so per liter … burning up that liter returns exactly zero and every euro needed to buy each barrel is borrowed …

    Greece just got fed into the wood chipper and Spain is next. No matter how truculent or obsequious is the good Spanish minister or outraged its public there is no escape for his country as it has driven itself into utter ruin. Spain has no oil supplies, and has been borrowing trillions of euros to buy German cars, ugly boxes to drive between and the fuel with which to drive.

    All to be ‘Yanks for a day’. Trillions of euros in the hole and there is no longer any way out. BTW, the only Euro countries with oil supplies are Norway and Denmark, these countries are not bankrupt.

    After Spain comes Ireland and then Italy at the edge of the abyss. By then the Germans will be out of the euro.

    What is underway in Europe is conservation by other means. The continent is on the way to becoming car-free, the hardest of all possible ways, the way that creates the most devastation, that leads to the greatest poverty and crushing ruin. Only thing worse is nuclear fire and broke France has hundreds of reactors it cannot afford to run or shut down. Moi meltdowns, anyone?

    Economic problems are solvable, BTW. Just get rid of the cars. Throw the cars into the chipper instead of the countries which can then be saved. Otherwise ….


  8. @Steve
    without cars how would sales representatives get from Aix to Ghent (and back again) so that they can conduct a deal that could as easily be done over the internet.

    Oh, and the internet uses as much fuel as the airline industry.


  9. I was just wondering. Is it time to move back to Canada or South Africa? Europe seems to be slipping dangerously close to the United States in terms of monetary silliness.


  10. Not sure you’d be safe anywhere Gemz.
    Both Canada and Australia are going through a typically insane property bubble which will do to their banks what popping bubbles did here, the US, Ireland etc. Plus they’re wildly exposed to a Chinese slowdown, which is suffering from a ……. popping property bubble, leading to ……..etc etc.
    And being “safe” in South Africa is a novel idea.
    Maybe New Zealand? Possibly Norway?

    Perhaps I should just get on with the work I’ve got to bloody do? This homeworking stuff’s not all it’s cracked up to be.


  11. Try as I might I cannot bleach my mind of the picture of Frau Merkel directing a stream at the oncoming wave. Skirt hitched up around the waist, knees bent, fingers at the ready…

    Thanks JW, thanks a lot…


  12. @Paul

    I think you are right. I will stay where I am. When the money runs out and the muskrats eat their way through to the North Sea, we will all drown.

    Damn. I am 1m above sea level.


  13. Pingback: John Ward – The EU’s Answer To A Mountain It Calls A Molehill: Pretend The Molehill Is A Mountain – 28 March 2012 | Lucas 2012 Infos

  14. It’s obvious the Euro elites use binocular’s when looking at the numbers.
    When they get too big, they turn the binoculars around and lo and behold they now look small and managable again. And these people lord over us.
    Yea Gods!


  15. @Robin: Thanks for that link. Truly excellent. I agree with him that IRs should be normalised (increased) immediately to correctly guide good investment. Mervyn King should read this article and match it to his wholly misguided monetary policy. Merv’s the wrong man to be running the BoE at this time…


  16. Just note but Norway and Denmark have their own currencies (Norwegian and Danish Kroner neither are in the Euro) and only Norway has substantial pil reserves, Denmark may have some North Sea Gas but like Holland these will be dwindling rapidy.
    The Eurozone has no major resources which is why they want the UK broken up (so they can force a newly ‘independant’ Scotland into the Euro and all those lovely resources become European)


  17. Pingback: The EU’s Answer to a Mountain It Calls a Molehill: Pretend the Molehill is a Mountain

  18. Spiegel quote: “Overall, the risk [from Greece] has fallen, says Volker Kauder, parliamentary group leader for the conservative Christian Democrats (CDU). It may not look that way on paper, but somehow it’s factually true, he says.

    Ha-ha. What a joker. Someone ought to remind Mr Volker Kauder that a fact is something which can be proved.


  19. @ Robin Banks,BT.The idiots running some pleasant capitalist democracies in Euirope have already done for the PIGS,and we await this summer’s riots.The Marxist educated MarK at the Bank,the man in charge of inflation( and nothing else) clearly does not grasp the meaning of ‘normal’ in terms of interest rates,as he robs the saver and depositor,while doubtless insisting that he has saved the banking system.Nothing could be further from the truth:£260 billion of crap property loans are being rolled over,and residential mortgages are underpriced to give the pretense that the resi market is not overpriced.To kick start the UK economy,we need the sacking of 1million government employees,pronto,base at 3 percent,rising sterling,the AUgean stables of the banking system cleared out,quite a lot of bankruptcies,and deferred TAX CUTS for those in work. It will not happen,of course,and the slow moving car crash that is the Euro will turn out to include the dear old UK. Dave’s inability to recall his purchase of a Cornish pasty,with accuracy,says volumes about this shower.,


  20. [Completely off-topic]

    This came in from DutchNews.nl the English speaking newsletter for all those people who don’t speak a word of Dutch … or are (like me) just too lazy.

    Geert Wilders’ party the PVV set up a website that was rather anti-Polish (*not* the kind you put on shoes, people!). A Polish TV station took umbridge at this and decided to get their own back. This is what happened:


    Now: this is a little more like the things that need to be happening? Oh, and let’s have some fun while we are about it.


  21. Some perhaps relevant articles on DMN today –

    “QE 3 continues to be not excluded.

    Fed buys European government bonds

    For the period of the election campaign for the White House, the U.S. central bank is clearly trying to bring calm to the markets. In addition to money printing, recently a part of this has been the direct purchase of European government bonds.

    | Published: 27.03.12, 23:17 | Up-dated: 27.03.12, 23:18 |
    With that Dudley confirmed what many observers have speculated about in recent weeks: Barack Obama has no interest in a European collapse before the presidential election in the autumn. Hence, the Fed is supporting the ECB with liquidity. But that they are buying government bonds directly comes as a bit of a surprise – after all, it cannot really be in the interests of American taxpayers to be so directly involved in the Euro-crisis.
    The Fed could initiate another round of money printing (quantitative easing, QE3).
    “Further significant improvements in the unemployment rate will probably need an even faster growth in production and more demand from consumers and businesses – a process that can be promoted through other accommodating measures,” said Bernanke.


    “Loans declined by 3 billion euros

    Despite Tender: fewer loans to the private sector

    The ECB pumped over one trillion euros into European banks by means of their 3-year tender. But, despite Mario Draghi’s hopes, nothing landed in the private sector. In February lending actually decreased significantly.

    (…) He based his assumption on the fact that mostly small banks were served by the tender and these are more likely to have direct lines into enterprises. But despite the now more than a trillion euros that have flowed into European banks via the 3-year tender, the banks are not even considering lending it out.

    In February, bank lending to firms decreased by as much as three billion euros against the previous month, as shown in the latest ECB data. Earlier this year the annual growth rate in loans was still increasing by 0.7 percent. Now it is only around 0.4 percent – the lowest level since June 2010. “The risk of a credit crunch in parts of the region has not disappeared entirely,” said Martin van Vliet from ING to the FT.

    Accordingly, at present the banks use the money from the ECB to mainly invest in government bonds or to deposit it overnight at the ECB. (…).”


    “Banks need billions in reserves

    Spain: EFSF should support banks

    The Spanish have accumulated a lot of bad debt and need billions of euros in order to accumulate the required reserves. Falling property prices and the recession are worseníng the situation. The EU has apparently offered Spain the use of the bailout funds to recapitalise their banks.


    “Criticism of the planned increase in the ESM

    Weidmann: bailout fund is the Tower of Babel

    The President of the Deutsche Bundesbank, Jens Weidmann, considers the idea that stronger hitting power for the rescue packages would prevent an expansion of the crisis is wrong. It would result in further problems. Moreover, the deficit countries are themselves to blame for their debts.

    Last time, Jens Weidmann, President of the Deutsche Bundesbank, criticised Finance Minister Wolfgang Schäuble for his minor will to save (here). Now, Jens Weidmann has spoken about the planned increase in the ESM ( Germany is also expected to agree in the Euro group meeting – here). “Just like the Tower of Babel, the wall of money will never reach the sky,” said Jens Weidmann on Wednesday in a speech at Chatham House in London. “All of that money, which we lay on the table, will not buy us a permanent solution to the crisis.”

    The diverging current account balances in Europe, especially with regard to the German export surplus, Jens Weidmann considers to hold little for criticism. “Of course, the surplus countries have benefited from higher exports. But ultimately it was the deficit countries who followed an unsustainable model, which was characterised by a debt-financed boom in domestic demand.” In his opinion it is not for Germany to compensate for these imbalances. “Just imagine that FC Barcelona must do without Lionel Messi in the Champions League, so as to reestablish the competitiveness of rivals such as Bayern Munich,” said Weidmann.

    In his view it does not make sense to meet “in the middle” at a European level of competitiveness. Europe is not an island, it must compete with the U.S. and China. “I ask you: How can we, how can Europe, be successful in this world if we willingly give up our hard-won competitiveness?”


    Some interesting comments to the last article from the folks on the Schwäbische Eisenbahn – wait out!

    For those that can read German – http://www.deutsche-mittelstands-nachrichten.de/


  22. Overheard on the Schwäbische Eisenbahn:

    “Let’s not kid ourselves, our Federal Republic is becoming more and more a DDR 2 and Europe is a second Soviet Union, at least it works that way. The unelected commissioners in Brussels determine what should be done in the member countries, and the satellite countries, such as our FRG, play along with it. The Chancellor is a kind of State Council President and the Ministers are the Politburo, who nod everything through, while the Parliament consists at best only of the puppets who rubber-stamp everything that is decided from above. The best example is the nuclear policy. As the exit from the exit was decided upon they were all for it, then, when the State Council President decided differently, that in the shortest time the opposite should happen, the Politburo nodded it through again and the puppets in parliament cheered the decision.

    And it is just the same with this ESM. What is going on here has very little to do with democracy, this is pure dictatorship, the people are not being asked about this existential development, and in an election manifesto three years ago there was also nothing to read about it. In which EU Treaty can we read all about this madness, to which legal basis can our “representatives” ascribe this? The negative consequences that this madness will have for all of us in a few years will not be borne by the people who have done it to us.”

    “The euromanic, ideology-drunk, megalomaniacal politician is not interested. The “political project” € has failed – just like every comparable project in history.

    Now, it’s just a matter of not waking Michel* up. Because that could trigger a boom in the rope-making industry and trees would be heavily decorated.”

    * “deutsche Michel” – a symbolic figure for the country, like John Bull/Brittania/Uncle Sam etc.


  23. I remember a conversation at a meeting when I was working in the corporate world …
    “I have an insurmountable problem …. ”
    (Chairman interrupts) “Now then, Theo, you know there is no such thing as a problem, only an opportunity.”
    “Very well. I have an insurmountable opportunity.”


  24. That graph’s not quite as scary as it looks, firstly because it includes financial companies merelly based in the UK, and secondly because there are supposedly assets to balace those debts.
    While the UK homed banks are a problem (and how), hedge funds based in London, for example, can go tits up without it having the slightest effect on the UK economy as a whole, except for a few tax accountants losing some work, and perhaps a quick sale of a Chelsea house or two.


  25. @Paul.J: You may be right, but wouldn’t they have mentioned it if it were relevant? It may depend heavily on who the debt counterparties are.
    From that article:

    All financial sector debt is, to some extent, potentially government debt, since all governments end up having to rescue their financial sectors in the event of a crisis. That’s what brought down Iceland and Ireland.


  26. Yes, the energy requirements of server farms are rarely discussed, but huge. And our media companies want to expand them to allow TV via the internet. Crazy!


  27. Um, John, Chief, I would like to thank you for not providing me in the future with any mental images like that of A. Merkel peeing in the face of a tsunami, or A. Merkel peeing anywhere else, or for that matter, anything involving the full or partial nudity of A. Merkel.

    Your consideration is appreciated.


  28. @VJ: It’s good to see that some German people can see what’s happening in their country to democratic accountability. Hopefully, more Brits will wake up and see what’s happening here…


  29. Pingback: The EU’s Answer to a Mountain It Calls a Molehill | so far so good


  31. Pingback: John Ward – EU Firewall : Several Bricks Short Of A Load – 30 March 2012 | Lucas 2012 Infos

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