Europe vs. European Banks - who is going to call the shots?
jmski52
Posts: 22,822 ✭✭✭✭✭
Can you see our future? This is where our collective situation seems to be heading. Those do not remember the past are destined to repeat it.
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.
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.
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.
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.
Q: Are You Printing Money? Bernanke: Not Literally
I knew it would happen.
I knew it would happen.
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Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
If Germany leaves the EU.......
Box of 20
1. Instant global recession created by panic out of Euro. US dollar explodes higher as foreign G's who sought to diversify out of dollars realize their folly.
2. German mark becomes the strongest currency after about a year. This strength leads to major recession in Germany. US dollar rips higher.
3. France/Eastern Europe blames Germany for creating chaos. US dollar rips higher.
The soaring dollar leads to dis/deflationary pressures. Rock/chocolate based currencies collapse. Dollar rips even higher.
The US dollar is the "cheapest" currency on the planet. While cheap doesnt always make a great investment that doesnt take away the fact the US dollar is "on sale".
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Germany will leave the EU and they will be the first, within 12 months. >>
Then they will have slit their own throats.
Knowledge is the enemy of fear
<< <i>The US dollar is the "cheapest" currency on the planet. While cheap doesnt always make a great investment that doesnt take away the fact the US dollar is "on sale". >>
Not by accident. There is a race on among central banks to have the cheapest currency. FED will lead them all to the bottom.
<< <i>Germany will leave the EU and they will be the first, within 12 months. >>
<< <i>Then they will have slit their own throats. >>
They will have protected what wealth they have left. German voters, unlike Americans, will not tolerate taking the brunt of bailing out others, especially foreign debt. Look for France to follow the exit. The only thing keeping France and Germany "in" is the fact that their own banks hold a lot of the bad foreign debt. I expect German citizens to be less tolerant than their American counterparts.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I live in Estonia right now which is on the Euro, but nobody even mentions the Euro collapsing here lol.
Germany has a huge demographic problem. And a very expensive economy. They will be destroyed without immigrants and a weaker currency.
Knowledge is the enemy of fear
<< <i>
<< <i>The US dollar is the "cheapest" currency on the planet. While cheap doesnt always make a great investment that doesnt take away the fact the US dollar is "on sale". >>
Not by accident. There is a race on among central banks to have the cheapest currency. FED will lead them all to the bottom.
<< <i>Germany will leave the EU and they will be the first, within 12 months. >>
<< <i>Then they will have slit their own throats. >>
They will have protected what wealth they have left. German voters, unlike Americans, will not tolerate taking the brunt of bailing out others, especially foreign debt. Look for France to follow the exit. The only thing keeping France and Germany "in" is the fact that their own banks hold a lot of the bad foreign debt. I expect German citizens to be less tolerant than their American counterparts. >>
"Next week the Germans vote on the proposed new bailout package, that is their representatives do. If passed it will signal Germany will bail out the rest of Europe indefinitely. This in no way will solve any problems. It will be subsides in perpetuity. German’s are very deeply concerned regarding the sellout of their country to fund banker loans and bonds. In fact a vote to continue the largess could easily prompt demonstrations, riots and major civil unrest. The public is ready to act. They refuse to be penalized for the financial profligacy of other nations, including France. If such legislation is passed Angela Merkle will be political history and the CDU, the Christian Democratic Union will be out of power for the next 20 years or more. If Merkel and the other bureaucrats and politicians, who are owned by the bankers, fails in getting it passed the entire western banking system will collapse. Germans know a refusal of the bill will destroy what is left of the financial structure and they obviously are willing to accept that. They rebuilt Germany over the past 66 years and they figure they can do it again. Lack of a bill and bailout of $4 to $6 trillion will purge and cleanse the system."
Fate of EU and Germany will soon be known: This will be the mover of gold prices for the coming week
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey