What’s A Few 4500 Billion Euros These Days?

Give or take 1000 billion? Fur European taxpayers, I mean. When the financial system “Draghi crases” and burns after the interest rates start heading up again.


Bank expert Markus Krall shows in the book “The Draghi Crash” what drastic measures are needed to save Europe from the death of the financial system. Five measures are necessary – otherwise threatening costs up to 4500 billion euros.

The vast abuses in the banking sector hang like a sword of Damocles on Europe. “We are all trapped in the trap that the ECB has dug for itself and us with its Keynesian interest rate policy,” warns Markus Krall. The imbalances in the credit sector are so huge that even a small turnaround in interest rates could lead to a crash.

The problem: the Eurozone countries do not have the resources to deal with the consequences this time around. In Germany 3000 billion euros of national wealth are at stake. Krall estimates the total amount of defaulted loans in the European banking system to be at least 1000 billion euros. And when interest rates rose, an unprecedented wave of bankruptcies threatened Europe’s zombie companies. “That costs again up to 1500 billion euros,” said the consultant.

Staatsschulden, Lebensversicherungen, Bankbilanzen – Banken-Experte Markus Krall zeigt in dem Buch “Der Draghi-Crash”, welche drastischen Maßnahmen nötig sind, um Europa vor dem Exitus des Finanzsystems zu retten. Fünf Maßnahmen seien nötig – sonst drohen Kosten bis zu 4500 Milliarden Euro.


I Got Your Trading Partner For You Right Here, Pal

For the first time in 40 years US-Amerika has now surpassed France as Germany’s most important trading partner.

Trading Partner

Of course now everybody is trying to figure out who to blame for this and how to fix it.

One theory goes that the policy of low interest rates and the government bonds buyback program by European Central Bank president Mario Draghi has devalued the euro and made selling in other parts of the world a whole lot easier. I’ll “buy” that. Hardy, har, har.

Erstmals seit vier Jahrzehnten haben die USA Frankreich als wichtigsten Handelspartner Deutschlands abgelöst. 2015 seien Waren im Wert von 173,2 Milliarden Euro zwischen Deutschland und den Vereinigten Staaten gehandelt worden.

Greeks Apologize And To Pay Back All Debts Tomorrow

The nation of Greece said sorry to the European Union with a present of an enormous wooden horse.


Left outside the European Central Bank in the dead of night, the horse has now been moved into the ECB’s central lobby where it is proudly on display.

A gift tag attached to the horse, which is surprisingly light for its size and has small holes along the length of its body, suggested that it should be placed in the bank’s vaults overnight to avoid it being targeted by thieves…

Oddly, Greek representatives in Brussels have hinted that they may soon be in a position to settle their debts and have puzzled the French and German banks that hold their loans by asking if there is any discount for cash.

PS: Thanks for the link, A.K.

She’s Not Even Showing Her Bazoobies

What’s the point of that?


Femen women these days. They used to take this kind of thing much more seriously. But now? Once sextivists start throwing confetti at adversaries without even bothering to take their tops off then I say this movement has jumped the shark.

“The confetti attack was not a #femen protest, I’m sorry ladies. I consider myself a freelance-activist. Free Riot!”

Well Banks Are Bad, Aren’t They?

So what’s the big deal? Now all of ze Europe officially has a bad bank, too.

It’s called the ECB and is the “bad bank for all the junk debt of Europe.”

“Blank cheque for the indebted states,” was the headline of the top-selling Bild newspaper, a harsh, populist critic of the bailouts for Greece and other struggling euro zone nations, adding that the ECB move could render the euro “kaput”.

“Financial markets cheer the death of the Bundesbank.”

The Symptoms Of The Times

Withdrawal, I am told, can refer to any sort of separation, but is most commonly used to describe the group of symptoms that occurs upon the abrupt discontinuation/separation or a decrease in dosage of the intake of medications and recreational drugs.

In order to experience the symptoms of withdrawal, one must have first developed a physical/mental dependence (often referred to as chemical dependency).

„Notenbankfinanzierung kann süchtig machen.“

So Much For That Shootout

I still don’t know who Gary Cooper was here, but Mario Draghi just went from “I will do whatever it takes to preserve the euro” (and buy up Spanish and Italian bonds) to “the ECB may consider” doing so at a later date.

Needless to say, the markets were not amused. Cherchez la femme, I’d say (and it ain’t Grace Kelly).

What’s the hold up? Germany, perhaps. During a press conference afterwards, ECB vice-president Vítor Constâncio noted that only one member of the ECB was adamantly opposed to bond purchases. This seems to be a reference to Germany’s Bundesbank, which had vigorously opposed a central-bank bailout of Spain and Italy. And even though the Bundesbank doesn’t have a direct veto over ECB actions, it seems Germany, as the richest country in the euro zone, still has plenty of sway.

“For all the criticism of Merkel, she distinguishes herself from politicians on both sides of the Atlantic in that she has a plan.”

It’s High Noon

But which one is Gary Cooper?

Big spending Mario Draghi, the European Central Bank boss who is shooting for the outright central-bank purchase of European sovereign debt, or lonely Bundesbank chief Jens Weidmann (and pretty much the rest of conservative Germany) who is gunning to resist such a move as it would “dilute debt-laden governments’ incentive to reform, and lumber the central bank with too many risks and responsibilities, endangering its independence and credibility.”

And more importantly, who is Grace Kelly here and where is she when we need her?

“I will do whatever it takes to preserve the euro.”

Hardline German ECB Presidential Candidates Dropping Like Flies

After Bundesbank President Axel Weber threw in the towel, crusty old Peer Steinbrueck said don’t even think about asking.

A hardliner on monetary policy matters, Weber has been at odds with several European governments since the outbreak of the eurozone debt crisis.

He vehemently opposed the ECB buying the bonds of debt-stricken peripheral eurozone nations as part of a concerted strategy to calm down the markets.

His public criticism of an ECB council decision in May, 2010, to buy the bonds had angered several EU leaders.