Saturday, September 1, 2012

'If Germany goes under then the Titanic really hits the iceberg'

The Chinese are worried that Europe is going to collapse. The Europeans are worried that China is going to Collapse. Actually both are headed for Collapse. European demand comes from the north europeans lending to south europeans to consume in the hope that because they are in Eurozone, they will get repaid. Not going to happen, all that is lent will be written off one way or another.
Chinese demand is based on construction of empty cities, empty skyscrapers, trains on which nobody rides, highways and bridges to nowhere, municipal offices that look like palaces and factories to produce this malinvestment.
There is a saying in Chinese, A day comes when the yellow river clears. Well, the Chinese have run out of money, construction has halted across china, steel is piling up, iron ore is piling up. Dealers are choking on unsold cars. Nobody is taking delivery of ships the shipbuilders are building. Don't expect the chinese to keep buying German cars, French wine , Italian leather or Swiss watches. The south europeans have run out of money, don't expect them to buy chinese toys or electronics....Money supply numbers may be just based on channel stuffing. Don't expect it to put food on your table. Inventory liquidation will start soon, then we will find out who has been swimming without clothes
Isay : Merkel desperately sucking up to the Chinese, hoping that they can take up the slack for the increasing effect of falling demand in the Eurozone, to paraphrase a pundit on RT today, 'If Germany goes under then the Titanic really hits the iceberg'

10 comments:

Anonymous said...

Eurozone is booming. Everything is on the up.

Unemployment is up.
Vat is up.
Poverty is up.
Suicides are up.
Inflation is up.
Animosity to Germany is up.
Debt is up.
Bankruptcies are up.
North - South divide is up.
Bailout fatigue is up.
Disillusionment with everything to do with the EZ is up.

Up,up and away in the Eurozone balloon.

Anonymous said...

The crisis has grown so severe that Mr Draghi this week pulled out of the annual central bankers’ gathering at Jackson Hole in the US to address the problem. Ms Merkel is also reported to have asked the Italian prime minister, Mario Monti, not to request aid until the Bundesbank issue is resolved. Mr Weidmann and the German authorities refused to comment on the reports of his threat on Friday.

Austria’s ECB representative, Ewald Nowotny, lent his support to Mr Draghi by stressing the difference between buying bonds directly from governments and purchasing them on the secondary market to get yields down. “I would warn against making an over-simple or even an ideological discussion about it,” he said.

Anonymous said...

This is getting really tedious but like the wait before a storm we all expect or hope that sometime soon something will happen.
Every week we have yet another crunch point and nothing really happens, except that ordinary people see their living standards reduced.
There is no meaningful effective turning point the underlying putrefaction continues.
Corrupt bankers and corrupt politicians are bleeding Europe dry. The USA is in no better shape and the Asian world is stalling.
This is going end very badly.

Anonymous said...

I dont like that they are fighting to much the bundesbank chef who is the only othodox but right guy left in the messy eurozone which was destroyed artificially to bring the ECB as a saviou or solution affter the created crisis everywhere.If I am the germany this is time to leave the eurozone or to create the norther union as part of the big union so the mess is not spread from south to north,but what will happen in the near future will tell the fate of the eurozone,it will be all messed or it will be as africa only its south...Still the scene looks ugly and the bundesbank chef may lose and maybe he may be the third one to resign and germany and north will go down,the same if it leaves or if it stay in the jungle eurozone which will mess the whole world even if start printing paper money and if is not.There is both ways as the highway of the destruction,but one is fast and one is slower

Anonymous said...

I dont like that they are fighting to much the bundesbank chef who is the only othodox but right guy left in the messy eurozone which was destroyed artificially to bring the ECB as a saviou or solution affter the created crisis everywhere.If I am the germany this is time to leave the eurozone or to create the norther union as part of the big union so the mess is not spread from south to north,but what will happen in the near future will tell the fate of the eurozone,it will be all messed or it will be as africa only its south...Still the scene looks ugly and the bundesbank chef may lose and maybe he may be the third one to resign and germany and north will go down,the same if it leaves or if it stay in the jungle eurozone which will mess the whole world even if start printing paper money and if is not.There is both ways as the highway of the destruction,but one is fast and one is slower

Anonymous said...

I wonder what will happen if the orthodox bundesbank chef is put as a ECb chef instead of liberal Draghi...but one thing has happen for sure in the past that the east was destroyed by the orthodox and the west was destroyed by the liberals.Can they find one in the middle to lead bot the destroyed east and west parts of the world now looking as africa or a jungle...The world is gone all crazy

Anonymous said...

I wonder what will happen if the orthodox bundesbank chef is put as a ECb chef instead of liberal Draghi...but one thing has happen for sure in the past that the east was destroyed by the orthodox and the west was destroyed by the liberals.Can they find one in the middle to lead bot the destroyed east and west parts of the world now looking as africa or a jungle...The world is gone all crazy

Anonymous said...

Yet another sticky plaster. Nothing more. I, originally thought that if they, the EZ members, all clubbed together and backed a 2 trillion pot, things would go away. This humungous sum would now also just be a sticky plaster. As others have said "Common sense" has vapourised. I cannot disagree!
I can probably "hack it" but there are going to be a lot of pissed off people. This is far too generous for Farage and the likes. Methinks there is going to be some bloody noses in the forthcoming elections, where ever they are held.
Footnote: I'll equally be impressed if the Republicans get their man Mitt in "power". But then again, since when has common sense prevailed across the pond. I look forward to Tedi et al telling me otherwise.
The power-crazed have self-destructed. What else can explain events?

Anonymous said...

Sane people would have shut down the EU & EURO many years ago.

Continuing this insanity just shows how desperate is the need for some mature leadership in Europe.

Anonymous said...

Whoops
Dare I mention
Euro fiat currency created as debt.
GBP fiat currency created as debt.
USD fiat currency created as debt.
World financial system overwhelmed by debt.
Gold and silver nobody's debt.
Which is " currency bomb 'that' goes off there 'with' be little cover"
Whoops.