Skip to comments.Utopian Germans risk full-blown EMU depression
Posted on 11/14/2011 5:08:47 PM PST by bruinbirdman
The relief rally from technocrat takeovers in Italy and Greece has already wilted, once again reviving the elemental question of whether Germany will go beyond rhetoric and commit its full strategic power to halt Europe's debt crisis.
Yields on Italy's 10-year bonds jumped back up to 6.7pc after Bundesbank chief Jens Weidmann dashed hopes for muscular intervention by the European Central Bank to stabilise bond markets and buy time for the new government of Mario Monti.
"Monetary policy cannot and must not solve solvency problems of states and banks," he told a Frankfurt forum, calling for a halt to incessant pressure from the rest of the world for the ECB to violate its own legal mandate with debt monetisation.
Hours later, Germany's Chancellor Angela Merkel called for a "breakthrough to a new Europe, and political union" but ruled out Eurobonds, debt-pooling or any form of fiscal transfers to weaker EMU states in a speech to the Christian Democrat (CDU) party conference in Leipzig.
The body language from Germany has washed away any alleged benefits from installing EU technocrats in power in Rome and Athens. Spanish yields have once again crossed the danger line of 6pc.
Credit default swaps measuring bond risk have reached a record highs of 203 basis points for France and 322 for Belgium, with major knock-on effects in Eastern Europe and the Baltics.
"What investors want to know is whether the ECB is ready to stand behind the bond markets because it is not clear who else is going to buy 350bn of Italian debt over the next year," said Hans Redeker, Morgan Stanley. "If we had seen a credible government in Italy six months ago it might have turned market sentiment, but it may be too late now.
"What is really dangerous
(Excerpt) Read more at telegraph.co.uk ...
They have this backwards. The utopians are the ones calling for Germany to bail everyone else out!
Stop borrowing money and start paying off the debt and their troubles are over.
There is little sadder than an emo emu
Funny these AEP threads on FR get so few comments. I find the articles fascinating and read the Telegraph comments as well. Guess people here are more interested in shooting down one Republican candidate or another.
As I’ve addressed: This was a phony pr stunt, including the previous Greek’s PM big enthusiastic show over it (before he was “removed”.
They are going to attempt to TRANSFER this (export the debt), China won’t buy unless REAL hard collateral. THE SLAVE SHACKLED RICO-FedBELTWAY-Vampire-Care will be used to secure our TReasurys. The mandate is their scorched-earth. Slave dollars to the treasury.
Notice how NONE of any of the candidates have mentioned EXEMPTION for EVERYONE, as first order in office. They WILL choose DISCRIMINATION (despite the fake “discrimination” cry they tout constantly) and NOT allow EVERYONE an EXEMPTION.
Exactly. Reading AEP since The Secret Life of Bill Clinton, before the inception of the single currency.
Speaking of comments, not far down the page is AEPs explanation of the German banking dilemma. Of course, European financial troubles are state secrets. There is no transparency for the public.
I was, in particular, interested AEPs reference to Beatrice Weder di Mauro interview in the Suddeutsche Zeiting on Monday morning.
Stick those keywords into google. Then put the URL in google translation. It's worthwhile. It is what Ambrose has been saying all along. This puts a source to his analysis.
When all this is over, the failings of the German banking industry will eclipse the local dramas in Greece and such places.
This is at root a German crisis too. "