Europe's Most Parabolic Chart Goes Parabolic-er

[thatguy]

http://www.zerohedge.com/news/europes-most-parabolic-chart-goes-probolic-er

Yet none are quite as parabolic as the chart enabling it all: the Bundesbank's TARGET2 claims toward the rest of the Eurosystem, or as we have repeatedly explained (and as Jens Wiedmann confirmed), the sunk cost that Germany will have to foot once the Euro experiment ends

What's the big deal? It's just a runaway exponential equation. You never reach infinity. It's all good.

lol, prepare

 

[Silber]

Or will the German population say "genug" and force the Bundesbank to stop funding the current account deficit ways that it has been enabling for years? The choice is theirs.

Well ... throwing a piece of paper into a trashcan every 4 years is not really much of a "choice". In fact, most financial/bailout decisions in the last few years have been justified by calling them "alternativlos" ( = "without alternatives" - elected for the "Faux-pas word of the year 2010" ). Debts are made which will never be paid back, and the reason why this is possible at all is, that some states may still be able to make new debts to pay back the old ones. But some day, the inevitable will happen. Whatever this is.

 

[SilverScimitar]

Scary chart.

 

[Silber]

I just read that serveral Associations of Tax Payers have filed charges against the Bundesbank, for embezzlement and other elements of an offence associated with the "Target2". (Only in some German newspapers until now, but some general info about target2 can be found e.g. at http://www3.taxpayers-europe.com/in...get2-downplay-of-a-financial-atomic-bomb.html )

Seems like people are waking up...?

 

[wrcmad]

What's the big deal? It's just a runaway exponential equation. You never reach infinity. It's all good.

Believe it or not, I think Watchman has a good point.
Exponential charts can be used very deceptively, depending on the axis span selected, to reinforce the point you are trying to convey.
For instance, the following three charts are ALL IDENTICAL, with different axis spans selected. They are the same chart, and will depict the same projection, no matter how far out in time you go.
Whilst not trying to detract from the impact of the above chart, it needs to be considered that exponential charts, like most statistics, can be manipulated a little.

Which one would you select to reinforce this point?

 

[thatguy]

I think the main point with exponentials is everything is all good until it is not. Or things seem to happen quite slowly until the do not. In the end we all can see where this is going and when