Tuesday, August 30, 2011

Fiat Crooks Merkel, Sarkozy, Lagarde, Trichet

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Play With Fire - Get Burned! Fiat Crooks Merkel, Sarkozy, Lagarde, Trichet - Caught Between a Rock and a Hard Place!
Posted By: Lion [Send E-Mail]
Date: Tuesday, 30-Aug-2011 10:15:59
Source: UK Telegraph
By Ambrose Evans-Pritchard
8:07PM BST 28 Aug 2011
Is Germany about to dump the EuroZone project?
EuroSceptic hysteria consumes Berlin.
Financial Crisis
Euro bail-out in doubt as 'hysteria' sweeps Germany
German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe's revamped rescue machinery, threatening a consitutional crisis in Germany and a fresh eruption of the euro debt saga.
Merkel and Sarkozy rule out talks on eurobonds.
Seething discontent in Germany over Europe's debt crisis has spread to all the key institutions.
Photo: AP
Ambrose Evans-Pritchard

By Ambrose Evans-Pritchard
8:07PM BST 28 Aug 2011
Comments1241 Comments
Mrs Merkel has cancelled a high-profile trip to Russia on September 7, the crucial day when the package goes to the Bundestag and the country's constitutional court rules on the legality of the EU's bail-out machinery.
If the court rules that the €440bn rescue fund (EFSF) breaches Treaty law or undermines German fiscal sovereignty, it risks setting off an instant brushfire across monetary union.
The seething discontent in Germany over Europe's debt crisis has spread to all the key institutions of the state.
"Hysteria is sweeping Germany " said Klaus Regling, the EFSF's director.
German media reported that the latest tally of votes in the Bundestag shows that 23 members from Mrs Merkel's own coalition plan to vote against the package, including twelve of the 44 members of Bavaria's Social Christians (CSU).
This may force the Chancellor to rely on opposition votes, risking a government collapse.
Christian Wulff, Germany's president, stunned the country last week by accusing the European Central Bank of going "far beyond its mandate" with mass purchases of Spanish and Italian debt, and warning that the Europe's headlong rush towards fiscal union stikes at the "very core" of democracy.
"Decisions have to be made in parliament in a liberal democracy. That is where legitimacy lies," he said.
A day earlier the Bundesbank had fired its own volley, condemning the ECB's bond purchases and warning the EU is drifting towards debt union without "democratic legitimacy" or treaty backing.
Joahannes Singhammer, leader of the CSU's Bundestag group, accused the ECB of acting "dangerously" by jumping the gun before parliaments had voted. The ECB is implicitly acting on behalf of the rescue fund until it is ratified.
A CSU document to be released on Monday flatly rebuts the latest accord between Chancellor Merkel and French president Nicholas Sarkozy, saying plans for an "economic government for eurozone states" are unacceptable. It demands treaty changes to let EMU states go bankrupt, and to eject them from the euro altogether for serial abuses.
"An unlimited transfer union and pooling of debts for any length of time would imply a shared financial government and decisively change the character of a European confederation of states," said the draft, obtained by Der Spiegel.
Mrs Merkel faces mutiny even within her own Christian Democrat (CDU) family. Wolfgang Bossbach, the spokesman for internal affairs, said he would oppose the package. "I can't vote against my own conviction," he said.
The Bundestag is expected to decide late next month on the package, which empowers the EFSF to buy bonds pre-emptively and recapitalize banks. While the bill is likely to pass, the furious debate leaves no doubt that Germany will resist moves to boost the EFSF's firepower yet further. Most City banks say the fund needs €2 trillion to stop the crisis engulfing Spain and Italy.
Mrs Merkel's aides say she is facing "war on every front". The next month will decide her future, Germany's destiny, and the fate of monetary union.
Is Germany about to dump the EuroZone project?
EuroSceptic Hysteria Consumes Berlin.
Source: Alcuin Bramerton

To save its banks, Germany is being forced to actively consider leaving the EuroZone.
Neither the German Ministry of Finance, or the Bundesbank, or the major German commercial banks can afford to finance the anticipated multi-trillion rising costs of successive EuroZone sovereign default bailouts.
Nor is it politically or legally possible, inside Germany, to get a democratic consensus behind such an attempt at EuroZone salvation.
Speaking at the Jackson Hole Western Cabal banksters' wake on Saturday 27th August 2011, Christine Lagarde, Managing Director of the International Monetary Fund, said that Western banks needed urgent recapitalisation.
If this is not addressed we could easily see the further spread of economic weakness to core countries, and a debilitating liquidity crisis.
The most efficient solution, she argued, would be mandatory substantial recapitalisation.
(AB comment: This would be achieved immediately if the $47 trillion World Global Settlement Funds were released,
and if the Basel-mandated $10 trillion US Dollar Refunding Project was implemented.
Both schemes are fully capitalised and ready to run.)
But apart from Washington, nowhere in world economics is the political inertia and policy paralysis more evident than in Germany.
The seething discontent in Germany over Europe's debt crisis has spread to all the key institutions of state.
The latest tally of votes in the Bundestag indicates that 23 members of Angela Merkel's own coalition group plan to vote against the EuroZone bailout package, including twelve of the 44 members of Bavaria's Social Christians (the CSU).
Christian Wulff, the German President, has accused the European Central Bank of going far beyond its mandate with its mass purchases of Spanish and Italian debt. Wulff warned that the EuroZone's headlong rush towards fiscal union strikes at the very core of European democracy.
The Bundesbank has condemned the ECB's bond purchases and has warned that the EU is drifting towards debt union without democratic legitimacy or treaty backing.
Joahannes Singhammer, leader of the CSU's Bundestag group, accused the ECB of acting dangerously by jumping the gun before sovereign national parliaments had had a chance to vote on the issue.
A CSU document released on Monday 29th August 2011, flatly rebuts the latest emergency accord between the German Chancellor, Angela Merkel, and the French President, Nicholas Sarkozy.
The CSU says that plans for an economic government for EuroZone states are unacceptable. The document demands treaty changes to allow EMU states such as Greece, Ireland, Spain, Portugal, Italy and France to go bankrupt, and to eject them from the Euro altogether for serial financial abuses.
More developing EuroCrash background and analysis can be found
here (29.08.11),
A Dispirited Fed Chairman Emerges From the Jackson Hole
here (30.08.11),
Benjamin Fulford, August 30, 2011…
”Secret meeting of 57 finance ministers on ship charts new financial system”
here (29.08.11),
Timebomb in Euroland: The Eurozone is Heading for a Crash.
here (29.08.11),
As ECB Monetizes Another €7 Billion In PIIGS Debt,
Trichet Says A Prudent ECB "Is Not The Fed"

Trichet wants swift implementation of Greek measures.
European Central Bank (ECB) president Jean-Claude Trichet has called for swift action to help (bail out) Greece.

here (29.08.11),
China Post: Eurozone Struggles With Debt Deal
here (28.08.11),
Greenspan: North-south budgetary discipline divide killing the euro
here (28.08.11),
Finland's demands for collateral could leave Greek bailout in ruins. Row over collateral for emergency loans to Athens reveals cracks in the eurozone
here (28.08.11),
European banks set cash test by IMF chief
European banks face ordeal by fire this week after the International Monetary Fund called for “urgent” action to shore up their defences, if necessary with state money and under legal compulsion.

here (28.08.11),
German Coalition Partner CSU To Propose Bankruptcy Procedure To Kick Out Chronic Eurozone Debtor Nations
here (28.08.11),
September 23: The Beginning Of The End For Merkel... And The Eurozone?
Remarks at Jackson Hole:
"Global Risks Are Rising, But There Is a Path to Recovery"
By Christine Lagarde
Managing Director, International Monetary Fund
Jackson Hole, August 27, 2011

here (27.08.11),
As Lagarde Throws Germany And European Banks Under The Bus, Did She Just Truncate Her IMF Career?
here (26.08.11),
Letter from Berlin
Blast from the Past Has Merkel on the Defensive

here (24.08.11),
Germany fires cannon shot across Europe's bows
German President Christian Wulff has accused the European Central Bank of violating its treaty mandate with the mass purchase of southern European bonds.

here (24.08.11)
Facing the Crisis
Time to Get Angry, Europe

An Essay by Ulrich Beck
and here (22.08.11).
Bundesbank questions legality of EU bail-outs
Germany's Bundesbank has issued a blistering critique of EU bail-out policies, warning that the eurozone is drifting towards a debt union without "democratic legitimacy" or treaty backing.


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