Skip to comments.Euro bail-out in doubt as "hysteria" sweeps Germany
Posted on 08/28/2011 1:56:00 PM PDT by bruinbirdman
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.
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
(Excerpt) Read more at telegraph.co.uk ...
House of Cards
Why don’t the German taxpayers just shut up and carry the load of the deadbeats, just like we do in America?
The elites do not like representative democracy much, which is why the EUSSR isn’t one.
Sounds like Germany is full of those evil, racist Tea Party members.
The Krauts are saying to themselves, “Why should we bail out those deadbeats?” Yeah, why should they? And why should WE?
They tried that after WW I, the Treaty of Versailles, and it didn't go over too well.
Maybe Pooty-poot can bail them out to get East Germany back. That’d be funny.
Didn’t the Germans elect some kind of National Socialist, like 0bama, to sort their problems out?
I can't say that I blame them.
Maybe we should have a debt union with Germany ourselves?
Apologies- I didn’t see your earliest post.
That point in Socialism that Margaret Thatcher pointed out, where you run out of other people’s money, seems to have been reached in Europe.
Jug ears has it bass ackwards as usual.
“That point in Socialism that Margaret Thatcher pointed out, where you run out of other peoples money, seems to have been reached in Europe.”
And we are within a short distance of having reached it here. The time will come when normal standards of bond pricing will be applied to Treasuries. At that point rates for 10-year Treasuries, for example, will probably hit 7% to 8% at least.
It will be interesting to see how the political class and other taxeaters respond to a situation in which debt service starts moving toward $1 trillion/year and states and municipalities are forced out of the bond market because the rates are prohibitive..
By raising the debt ceiling, Boehner and the weak, Bush-like Rs may have fumbled away the last chance to force the government to become fiscally responsible, thereby giving us a chance to avoid a monstrous financial and social calamity. We shall see...
That myth ranks right up there with "FDR got us out of the Depression." Hitler put everyone to work (much like FDR), but he consumed every pfennig of capital in the country to do it.
His policies ate the guts out of the Germans' wealth to keep his war machine going. That was not economic growth, it was pure Keynesianism (who rather admired Hitler) on steroids.
So they’ll try to get US taxpayers to bail out the ECB. And has any Pubbie presidential candidate taken a stand on any future bailout of the ECB? Inquiring minds want to know....
Gold Man Sacks seems to p0wn the gov’t.
Oh, yes, they have for some time. They got the govt. to repeal the Glass-Steagall Act, and then it was Party Time.....
Pumping money in to a society will not change their behavior for the better. A friend of mine has a daughter who is working for an American company who has a subsidiary in Spain and their biggest problem is finding people who are willing to work. And I do believe and can understand why any straight thinking German would be hostile to give them any money as in the end it would not make any lazy bum more industrious and before long it would be back to square one.
True that. Germany was broke and needed other sources of wealth, which they obtained through the “donations” from their Euro neighbors. The Nazis were collecting loot any way they could, including stockpiling the gold teeth of their victims.
The German people understand that this bailout will not solve anything, just defer the final crash for a little while, at enormous cost. They might as well let it happen now.
If I may, I’ll rephrase your comments..the Germans know that Greece is toasr, kaput, finshed..and they are unwilling to throw good German $$ after bad....the piper must be paid now...
In fact, that’s why Hitler had to go to war when he did, Germany was on the verge of bankruptcy, war couldn’t wait.
Not just Greece — Portugal, Spain, Italy, the list goes on. The EU is done. It never was going to work. The only question now is how much of the wealth of the fiscally-responsible must be pissed away to prop up the EU for a little while longer.
...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.
a little more at the locked topic:
Gold : prices, facts, figures & research
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How much gold is there?
In the world there are currently somewhere between 120,000 and 140,000 tonnes of gold ‘above ground’. To visualise this imagine a single solid gold cube with edges of about 19 metres (about three metres short of the length of a tennis court). That’s all that has ever been produced.
Divided amongst the population of the world there are about 23 grams per person, about 1.2 cubic centimetres each. This equates to about $250 - $350 worth per person on Earth, depending on the current price.
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