EuroCrisis: ‘You Can’t Make Up How Bad It Is’
France goes to the polls on Sunday with a good chance of victory for a Socialist President — first since the end of two-term François Mitterand’s reign in 1995 — and a result that will likely shake Franco-German control of the Eurozone crisis as never before.
Here ZeroHedge’s Tyler Durden relays the gist of a May Day analysis of the Eurozone’s parlous state given at the Milken 2012 Global Conference. He suggests that fear and panic has overcome Europe’s political leaders and led to inept decisions that will eventually prove devastatingly destructive.
The video below is an hour-long coverage of the May 1 investment conference which assessed the risk of investing in a crisis-overwhelmed EU.
Star commentator is the redoubtable Hugh Hendry, a Scottish fund manager at Eclectica Asset Management infamous for his acerbic no-holds-barred assessments.
In the video Hendry tells viewers: “The thing that I fear is confiscation. Confiscation of my assets, confiscation of my clients’ assets. I fear that this thing could get out of [control]. I think we’re a year away from the French fully nationalizing their banking system…
Zerohedge says: “Hugh Hendry delivered his usual eloquent and critical insights on the state of Europe. Beginning with the statement that ‘All of Europe has defaulted’, he explained that ‘The political economy in Europe is such that the politicians chose to default on their spending obligations to their citizens in order to honor the pact with their financial creditors and so as time goes on, the politicians are being rejected.’ Between France’s election of Mr. Hollande and Luxembourg’s ‘when times get tough you have to lie’ Juncker, Hendry says the only inspiration for Europe is fiction as ‘you just can’t make up how bad it is’ as he goes on to discuss the precedent for a way forward, the grotesque distortions of fixed exchange rate regimes, why Weimar happened, why the transfer union will never happen, Ayn Rand’s reality, and fear politicians are feeling …”
The underlying reality suggests ZeroHedge is that “what the European monetary union is about is not about preventing a third so-called European civil war, it is essentially about making someone (France, Germany or both) a Great Power, a European Hegemon, and a global player.”
UPDATE: Uncannily but on cue Sir Mervyn King, the Governor of the Bank of England (Britain’s Central Bank) has just admitted that global bankers (who this paper will continue to refer to as banksters as in banker-gangster until they have been properly punished) almost destroyed the world economy: “Nearly £1,000billion (1,230 billion euro) of taxpayers’ money was used to prop up the banking system at the worst point of the crisis. Though some institutions fell, he said ‘almost all banks would have failed had not taxpayer support been extended’.
Bank(st)ers he warned were currently lobbying hard to block a series of institutional reforms that would see retail banking ring-fenced off from the casino parts of banking operations, curb banker bonuses where dividends and profits are non-existent or declining and other regulatory measures designed to ensure the world is never again held to ransom by a gung-ho gang of irresponsible, short-termist, financial bubble-artists.
- Hugh Hendry On Europe “You Can’t Make Up How Bad It Is” (zerohedge.com)
- HUGH HENDRY: It Looks Like America Is ‘Creating Yet Another Historic Turning Point’ (businessinsider.com)
- Hugh Hendry Is Back – Full Eclectica Letter (zerohedge.com)
- Hugh Hendry Describes What A Real Chinese Hard Landing Will Look Like (businessinsider.com)
- End of the road for the euro? Top German minister says Greece should leave the eurozone (thecommentator.com)
- The German Diktat and Europe’s woes :Guest Post MK (greatlakesforex.wordpress.com)
- Germany’s Choice: The Re-design of Europe
- Financial Napoleons out to Crush Europe
- Eurozone crisis live: Canada blasts Europe as Greek elections loom (guardian.co.uk)
- Sir Mervyn King admits BoE failed over financial crisis – Telegraph.co.uk (telegraph.co.uk)
- Bonjour Two Tier Euro? (wallstreetpit.com)
- Government urged to reform banking (express.co.uk)
- Sir Mervyn King gets back to basics with Bank’s three Rs – Scotsman (scotsman.com)