Only lawyers could deliver such a result: the ESM is legal up to €190bn, and then it isn’t. The Karlsruhe Court has come up with a sort of three months abortion pill: yes, we’re going to get pregnant, but we’re still thinking about whether we want to start a family or not.

One can picture the scene a year from now: “Ach jah, Frankreich, you get the bailout, and it comes to €3.74. Wolfie says you can have it in three tranches, but every Frenchman caught working sur le noir must be slain”.

Thus is Tim Geithner’s desired eurobazooka become a German Zook. The Zook will be the new unit of currency in the Fiskal Union, a bailout mechanism built ready for the coming hyperinflation. There will be seventeen sovereigns to a Zook, but please: don’t ask for credit, as a refusal often offends.

We now have a two-tier sh*t-clearance scheme: one using real money that lends non-returnable money, and one using funny money that buys non-real money. So all that remains now is for Manuelo Barroso to explain how this is merely the forerunner to a federated system in which dour money will sell unreal money in a cash-for-options swap, after which hysterical money is refunded as real money. Mario and his team will be working on the details later.

Let’s hear it for the Zook.

Earlier today: Why the Troika breeds contempt.


41 thoughts on “KARLSRUHE DECIDES: Zooks are Go…

  1. “Only lawyers could deliver such a result: the ESM is legal” … ask lawyers a question, you get a legalistic answer.

    ” up to €190bn, and then it isn’t.” well, not really true. It could be legal above 190 bn euro – if the Bundestag so decides (which, in the event of a crisis demanding a Barrozooka, it would.

    What you may have missed is the essential irrelevance of this limitation on the German contribution (and thus the ESM’ overall size). With the assurance that UNlimited can be drghied out of the ECB, a small ESM bail-out is all that would be needed. With the apppropriate conditions as laid down by the troika, then the ECB can pump endless amounts of short-term money into the system.


  2. sorry about typos above: Last para should read: With the assurance that UNlimited FUNDS can be Draghied out of the ECB, a small ESM bail-out is all that would be needed. With the apppropriate conditions as laid down by the troika, then the ECB can pump endless amounts of short-term money into the system.


  3. Unreal money will ultimately become the saviour of the world. Or not. Dour money, however, remains largely untested (see Gordon Brown). Either way you’ve certainly provided us with a bit of breathing space!


  4. Barroso the ol’e Maoist needs a new treaty to get the full union he speaks of in his address.
    This line was particularly creepy !
    “Our citizens and the new world order need an active and influential Europe”
    Will he get his treaty?
    If he does.
    I’m emigrating.
    To Mars.


  5. I know JW doesn’t hold with conspiracy theories, but ain’t it strange how that expression “New World Order” (c777 post above, Barroso statement) keeps getting slipped into the conversation by influential politicians?


  6. Pingback: John Ward – Karlsruhe Decides : Zooks Are Go… – 12 September 2012 | Lucas 2012 Infos

  7. So now we have Euro190Billions per iteration,without limits on the iterations,rather like London hypothecation-unlimited.
    Just which population drags out the politicians and bankers,first?


  8. No, we I’m afraid are on a one way trip to see how deep the rabbit hole goes. So fasten your seat belt Dorothy, cuz Kansas is going bye bye.


  9. @c777: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/12/596&format=HTML&aged=0&language=EN&guiLanguage=en

    Couple of tidbits:

    “Allow me to say a word on Greece. I truly believe that we have a chance this autumn to come to the turning point. If Greece banishes all doubts about its commitment to reform. But also if all other countries banish all doubts about their determination to keep Greece in the Euro area, we can do it.”

    In case you didn’t hear him first time: “CITIZENS OF EUROPE, YOU MUST BANISH ALL DOUBTS!!!”

    Is that the same as “resistance is futile”? Or possibly, “banish all doubts and bend over b*tch”?

    Difficult to banish ALL doubts surely? With the best will in the world, you’re always going to be left with one or two nagging ones. Or is that just me?


    “The world needs a Europe that is capable of deploying military missions to help stabilize the situation in crisis areas. We need to launch a comprehensive review of European capabilities and begin truly collective defense planning. Yes, we need to reinforce our Common Foreign and Security Policy and a common approach to defense matters because together we have the power, and the scale to shape the world into a fairer, rules based and human rights’ abiding place.”

    I wonder how the good old US of A feels about this? They’re probably sh*tting themselves knowing that to add to all of this, Greece has a submarine.


  10. The same money powers lurking in the shadows are controlling the destruction of all nations in the west. These psychos have no loyalty to any country, just to themselves and others like them. Its an elitist assault on all ordinary citizens of the world. IMHO


  11. Has anyone else seen the pictures of the Dutch Electorate casting their votes and then committing them to a wheelie bin and felt that there is something rather Orwellian about it……?…very practical ..yes ….but…!

    “Of course you Dutch are a democracy just pop your votes in the bin over here………your votes will be put to goot use…….recycled to make some nice fresh paper to use to sign EU treaties while Brussels decides who won your election and invents the numbers” …….perhaps not…but I can’t see the Brits going for wheelie bins in the polling stations without a question or two!


  12. @Ace Gikmo….”I know JW doesn’t hold with conspiracy theories, ”

    Does it matter whether John W believes in a conspiracy? I know there is a conspiracy and other people on this blog recognise it, too. John thinks that denying it makes it go away, unfortunately, John’s wrong and he has been on other topics, most certainly on the Euro problems.

    Here’s what he wrote recently…
    @John Ward…”The date today is July 23rd. Slog contacts in Athens and Paris – and a former bondholder representative – have concurred over the last 24 hours on one thing: Greece will default before that September money comes through. ”

    Greece is still afloat and is now set for more austerity. Greece won’t pull out and neither will Germany.

    John also assumed that the BRD Court decision at Karlsruhe today would stop Angela Merkel in her tracks. It didn’t. It was never intended to. Most people could see this decision coming a mile away.

    I’ve said it before, umpteen times: It’s a plot. The sheer size and audacity of the plot makes most people doubt its very existence, but it is there alright. It has been since the beginning of the 20th Century. It isn’t going away and anyone who still doesn’t believe there is a worldwide conspiracy is in for a big surprise.

    There used to be a billboard at the US Air Force’s fighter base at Lakenheath, England which stated…” The job of the US Air Force’s Fighter Wing in peacetime is to prepare for war, and don’t YOU forget it.”

    There should be a variant of this notice at top of the Slog’s header page. I would suggest….”The job of every Slogger in times of Conspiracy is to prepare an escape route. Believe it.”



  13. I agree totally — it’s only a matter of time, but that submarine still needs putting to use otherwise it’s been a total waste of money.


  14. He’s certainly good to watch. It’s just a shame he’s not the real deal. If he was willing and able to put words into action he’d sweep the board at the next GE.

    Interesting to note how Americans have took to him going by the comments on ZH. They can’t get enough of him while at the same time wondering how he hasn’t managed to die in a plane crash yet. Or at the very least double-tapped himself. Maybe it’s because some of them don’t realise (or care) who he speaks on behalf of.


  15. I hope everyone is noticing that Merkel’s plan is working perfectly. The facade of the ESM is now up(190 bln is a joke), Draghi has the ability to buy an unlimited amount of bonds, Italy and Spain’s bond yeilds are much lower (I would submit that Spain has 200 basis points of margin of safety), and they have put the fate of Greece in the Troika report which they already know where that stands( I think depending on how the cards played out, they could have gone either way, but given that the plan is working, the probability of a negative report has gone way way up). So now its just pick a Friday, before they meet on Oct. 8 for Greece, and reveal how bad the final Troika report is, and then BYE BYE Greece! If the markets panic (Spain and Italian yields shooting up), enter stage right DRAGHI with the unlimited bond buying. Who will challenge that?


  16. We love Nigel Farage in Athens because we live the reality of what he talks about.

    I know he’s seen as a joke in the UK, but then so is the EU. Blessed UK.

    So please enlighten us: WHO does he speak on behalf of?
    (Apart from the greeks, portugese, spanish…)
    In England that is……


  17. It’s not a conspiracy (Oh yes it is!)
    Snr Barroso’s speech this morning……

    “The EU needs to integrate into a federation of nation states, the president of the European Commission has said.

    In words that are likely to infuriate British eurosceptics, Jose Manuel Barroso told the European parliament on Wednesday morning that it was the only way to steer the union out of its curent economic crisis.

    “We will need to move towards a federation of nation states. This is our political horizon,” he said in a state of the union speech in the European Parliament in Strasbourg.

    “Creating this federation of nation states will ultimately require a new treaty,” he said.

    “Globalisation demands more European unity. More unity demands more integration. More integration demands more democracy.”



  18. Eleni, are you saying that you are from Greece and that is what you are hoping for? I am just curious because it seems like most Greeks are afraid to leave the Euro….


  19. Well Kenny
    It’s your view and you’re entitled to it. Keep coming back though, because I’m right more often than I’m wrong.


  20. Josh… do you believe all the polls you read? I can most certainly assure you that most regular Greeks could no longer give a crap about staying in the euro… the last election was deemed null and void due to massive, purposeful census manipulation by the Hellenic bar association (but that was quickly buried), several deputy’s of the (now) ruling ND where sent to prison for open ballot stuffing… and we had all of Germany’s “leaders” openly campaigning in favor of the pro-eu party’s that they also say caused the problem by colluding with Goldman Sachs and hiding our true debt… so why would they back the same crooks that are responsible for creating the problem? They are working together… I can assure you that was it not for massive international political and financial intervention in our elections over the last almost 4 years now… the story would be verrrrry different… of course a country with a ton of seniors and pensioners voted in favor of the party that Germany told them would keep order and continue their livelihood… only the old, and weak are afraid to leave the EU anymore… and the reason is simple… it could not really get any worse by leaving… and it will get worse by staying… we no longer have anything to lose… literally. Everyone I know hates the EU… and wants to leave. Now they want us to work 6 days mandatory and up to 78 hours a week?… don’t they want to go after tax evaders?… or is a huge population of financial slaves in a deregulated, quasi legitimate banana republic more interesting? F#ck the EU.


  21. Of course… ever since the discovery of 300 billion in oil, and 9 trillion worth of natural gas… Germany has turned around quick on their efforts to let us go… now Merkel cares… ahahahahahahahaha….


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