Tuesday, November 16, 2010

EU President Admits That Europe Is Fighting For Survival, Invokes M.A.D. Card

When the president of the EU says that the fate of the second worst experiment of the last century (the worst being monetarist-Keynesian-central banking fundamentalism) is on the ropes, people listen. Perhaps people will also finally listen to those who are warning that no matter the words of encouragement, said experiment is doomed: the latest confirmation coming from Greece which has been now caught lying not once, not twice, but five times in a row just to preserve its EU backstops, and allow it insolvent banking system to exist for a few more days. In the meantime, the fate of Europe's bankers lies in the hands of a few good Irishmen, who can precipitate the mark to market (aka zero) catch 22 should the country finally force senior creditors to be impaired. Then not even the Fed will be able to backstop the continent's $50 or so trillion in interlinked assets, which also happen to be the continent's liabilities. In the meantime, here is Herman Van Rompuy doing what bureaucrats and bankers in power are so good at doing when they have no other choice: threatening with global assured destruction if they don't get their way.

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