The EU's Lies Blow Up In Their Face in [Market-Ticker]

Posted 2010-11-16 10:43
by Karl Denninger
in International

The EU's Lies Blow Up In Their Face

Austria is now reported to have said "NUTS" to Greece.

Finance Minister Josef Proell says that the December tranche of Austria's contribution -- 190 million euros ($258 million)-- will only be paid out if Greece can show that it has raised the amount of money it pledged to take in through taxes.

And that, my friends, is that.

Greece isn't going to raise taxes further, and it hasn't met its commitments. In fact, it has now been shown that Greece was lying even more severely than previously believed.

This entire EU "rescue fund" is about to come apart.

I hope you're appropriately protected - my prediction that the next leg of this mess was going to initiate in Europe appears to coming to fruition.

Oh, and Ireland isn't assured to "go smoothly" either.

Discussion below (registration required to post)

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User Info	The EU's Lies Blow Up In Their Face in forum [Market-Ticker]
Xnavnuke Posts: 101 Incept: 2009-05-07 Hampton Roads, VA	AEP has a related article in the Telegraph. Interesting comments following his article. 2010-11-16 10:49:49 Permalink
Soar07 Posts: 353 Incept: 2009-05-04	Link? ---------- Time to put the USA first! Stop Globalization, Illegal Immigration, Outsourcing. Buy American. Enforce the rule of law. Drop kick political correctness! 2010-11-16 11:00:15 Permalink
Throxxofvron Posts: 10325 Incept: 2009-02-17 Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off	-& Finland says NO to paying for the bailout of Irish Banks. The charade is over. http://www.zerohedge.com/article/finland.... Quote: After Greek CDS went offerless, and is about to pass 1,000 bps following news of Austria's defection from the EU rescue fund over Greece's endless lies, now we get the next defector: Finland, who it appears is opposing an Irish rescue. This is not too odd, since Finland actually has a viable banking system whose viability does not depend on the generosity of Irish and European taxpayers. What this means, however, is that European unity is finally coming apart at the seams. Sure enough, here is ever cheerful Goldman appartchik Erik Nielsen trying to spin this latest game theory collapse into good news: ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell 2010-11-16 11:01:43 Permalink
Frat Posts: 1935 Incept: 2009-07-15 NKY	Tick.... Tick.... Tick.... ---------- We're ***ed. Where's Henry Bowman when you need him? 2010-11-16 11:02:21 From PDA* Permalink
Alex Posts: 2439 Incept: 2007-08-03	Will this trigger a CDS event? I assume if they can't get the money we'll see a restructuring of their debt i.e. default. ---------- "The soft patch does not occur in year 2. This is a completely abnormal economic condition all the more so in the context of the massive and ongoing fiscal and monetary stimulus." Rosenberg 2010-11-16 11:02:58 Permalink
Throxxofvron Posts: 10325 Incept: 2009-02-17 Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off	http://www.forbes.com/feeds/ap/2010/11/1.... Quote: Associated Press Austrian FM: Bailout to Greece not certain Associated Press, 11.16.10, 10:14 AM EST VIENNA -- Austria is balking at paying its share of Greece's financial bailout. Finance Minister Josef Proell says that the December tranche of Austria's contribution - 190 million euros ($258 million)_ will only be paid out if Greece can show that it has raised the amount of money it pledged to take in through taxes. Proell told reporters Tuesday that at this stage that target does not appear to have been met. The Austria Press Agency quoted him as saying that he would "comment critically" on this issue at the upcoming EU finance ministers' meeting in Brussels. If Austria balks, and other countries follow suit, the Greek bailout package could unravel. -snip- ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell 2010-11-16 11:05:07 Permalink
Sangell Posts: 379 Incept: 2009-08-16	Yeah, this is the fun one to watch though it won't be 'fun' when the volcano really erupts. It really does seem to be race between Central Banks to see which one can destroy their currency first. Trichet would do better to take fine art from state museums as collateral than the bonds of most of its member states. By the same token Bernanke would do better to take baseball cards and comic books from the public here if he wants to increase employment. Taking someguys baseball card collection would at least make the consumer more liquid. Might even help the guy pay his mortgage. 2010-11-16 11:07:55 Permalink
Mschemeng Posts: 180 Incept: 2010-10-03 Toronto ON	yep...it has to be one of those rational nations that put stop to thisfunny that its Austria, as Austrian School of Economic not fully positioned to downside yet, but keep adding daily, as I think there may be one more technical pop this month... no long positions (other than holding inverse ETFs long) 2010-11-16 11:08:04 Permalink
M.b._drapier Posts: 9 Incept: 2010-10-23	Steady on there. The Austrian government is saying that the payments are "not automatic". It may huff and puff and then pay up after putting on a show for the voters. Or it may pull out while the remaining countries continue to bear up the load. 2010-11-16 11:08:42 Permalink
Quillbill Posts: 1469 Incept: 2009-06-23 Northwest Illinois	This is becoming a test of the very definition of sovereign. Do you own up to the sins and take the pain as a Sovereign Nation (unlike the USA) and rebuild yourself or do you succumb to the mob and end up like the filthy lying Greek government is now. Ireland will tell you in a little over an hour I guess. Interesting times for sure. (Mel Gibson yelling "FREEDOM" from Braveheart in the background as I type) ---------- It is a new day....DO SOMETHING WITH IT! 2010-11-16 11:12:16 Permalink
Themortgagedude Posts: 8851 Incept: 2007-12-17 saint louis	Why would any of them pay anything? First one to tell the rest of them to ** off is the winner. None of them need the others. The European Union was a stupid *ing idea. Unless you are going to allow the citizens of any state to move and have citizenship of the other states - and have standardized pensions, etc across the board - this was not going to work. At this point it's just a circle jerk for the elite who still have a stake in this game to see who they can get to act as bagholder. ---------- I'm already visualizing you with duct tape over your mouth. 2010-11-16 11:13:52 Permalink*
Sangell Posts: 379 Incept: 2009-08-16	What the world needs now is Anthony Mozilo at the IMF. Someone who can write Liar Loans and option ARMS on a national scale. There is no other way. 2010-11-16 11:16:48 Permalink
Trades50 Posts: 4215 Incept: 2007-10-30 Land of Tax and Spend	Waiting for the whole con-game to unravel. A preview for the us. ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2010-11-16 11:17:03 Permalink
Spodeejr Posts: 23 Incept: 2010-09-08 Rockwall, Tx	While we are on the topic of lies, here is what Bill Dudley said on CNBC this morning (saw this on BI). "We can have an enlarged balance sheet and not have a long-term inflation problem. This is because we can pay interest on excess reserves, which can moderate credit demand. We did not have this tool before 2008. So if you're reading the old textbooks about money and banking, you would be very concerned." Read more: http://www.businessinsider.com/new-york-.... 2010-11-16 11:18:49 Permalink
Genesis Posts: 130747 Incept: 2007-06-26	Dudly can suck my hairy ballsack and I'll **** on his eyes while he's doing it. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2010-11-16 11:26:48 Permalink
Popothebright Posts: 2756 Incept: 2008-05-16 Bangkok Banned	How hard would it be for Greece to show some more cooked books to Austria? Isn't that what Greece has essentially been doing all along? Moving a bit of money from one hand to the other just long enough to put on a good show? ---------- In America the choice of political party is little more than a choice of which corrupt management team implements the corporate agenda. 2010-11-16 11:32:46 Permalink
Andyc Posts: 333 Incept: 2010-10-24 Banned	Possibly The Ben Bernank could loan Greece a few hundred billion. :) This is article pretty much sums up the Greece situation, its an entertaining read as well not the typically dry economics article. http://www.vanityfair.com/business/featu.... I think this is a head fake to stop the dollar decline and cool off the commodities markets, they have to coddle and bail their own versions of The Goldman Sachs lest the whole system unravel. Last modified: 2010-11-16 11:54:28 by andyc Reason: add comment 2010-11-16 11:38:30 Permalink
Ludanjack Posts: 1429 Incept: 2007-07-29 Ft. Lauderdale Banned	Quote: Dudly can suck my hairy ballsack and I'll **** on his eyes while he's doing it. love you man 2010-11-16 11:41:42 Permalink
Bagbalm Posts: 4259 Incept: 2009-03-19 Just North of Detroit	Indeed Pop' who can say they aren't still lying it's been such a habit? Shame on them, they are supposed to **** on the little people, not their peers. This will be big enough for the ripples to reach our beaches. Last modified: 2010-11-16 11:44:50 by bagbalm Reason: Had to add a question mark even though retorical 2010-11-16 11:43:24 Permalink
Quillbill Posts: 1469 Incept: 2009-06-23 Northwest Illinois	"How hard would it be for Greece to show some more cooked books to Austria?" Fool me once...." " Fool me twice....... ---------- It is a new day....DO SOMETHING WITH IT! 2010-11-16 11:43:40 Permalink
Andyc Posts: 333 Incept: 2010-10-24 Banned	Themortgagedude "I've got Bernanke figured out. He'll just keep printing dollars until the ink and paper get so expensive he can't afford it with his newly printed dollars. Me 11/3/2010" Obviously you do not understand MMT because if you did you would know that The Ben Bernank will in fact create so many electronic zeros that he will run out of hard disk space to store them on. : ) 2010-11-16 11:46:46 Permalink
Arkady Posts: 133 Incept: 2009-10-19	Protect ourselves, how Karl? I am building shorts on the equity market and considering shorting Bonds. Did you have anything else in mind? 2010-11-16 11:48:44 Permalink
Throxxofvron Posts: 10325 Incept: 2009-02-17 Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off	Dudly wrote.. "We can have an enlarged balance sheet and not have a long-term inflation problem. This is because we can pay interest on excess reserves, which can moderate credit demand. That enlarged Balance Sheet contains $1.2T in MBS. The FED did not construct a specific REMIC/Trust for the purposes of mitigating/avoiding the Federal Tax Liabilities on the OUTRIGHT PURCHASE of those Assets. Having implemented NO REMIC/Trust specifically for the MBS it would appear that the FED owes Billions in Federal Taxes on those MBS. IS the FED Paying the Taxes that are owed on the income -which is claimed to be in the $200B to $300B range as that is what is being 'reinvested' in the ongoing 'QE Lite Scheme'- OR NOT??? IF NOT: WHY NOT? ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell Last modified: 2010-11-16 11:51:03 by throxxofvron 2010-11-16 11:49:43 Permalink
T_wheeler Posts: 14 Incept: 2010-10-29 Frisco, TX	This looks to be a race to see who can extend-and-pretend the longest: The USA, European Union, or China. Who will "blink" first or run out of runway first? The major players in the system -- bankers and policymakers and government leaders/officials -- are going to do everything in their power to protect their power, investments and assets. So the question in my mind is, who is invested in and has assets in the PIIGS? Who stands to lose if/when they collapse? Or, how will these players get out of the PIIGS before they collapse? Anyone have answers to these questions? Unfortunately I'm just an average Joe without time to dig into these things in depth. Thomas 2010-11-16 12:12:15 Permalink

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Dudly wrote..