Skip to comments.Eurozone leaders deluded if they think this 'sticking plaster' treaty can solve the debt crisis
Posted on 12/11/2011 2:22:22 AM PST by bruinbirdman
So, now we know what the latest euro-crisis summit has to offer. The fifth comprehensive effort to stabilise the eurozone in nineteen months, this latest Brussels gab-fest produced a slew of headlines and initiatives. But what did it really achieve?
It was David Camerons veto and the UKs new status as Europes outcast that gained most attention, at least in the UK press. Of far more importance though, in Britain, Europe and the world, is whether these latest Brussels initiatives can prevent a euroquake - a disorderly, market-driven break-up of monetary union.
Despite Britains veto of a EU-wide fiscal compact, eurozone members will press on with budgetary integration, but outside the EUs legal framework. A new stability union will see member states adopting a golden rule to run structural deficits below 0.5pc of GDP. Countries breaching a 3pc of GDP deficit limit will be fined, unless qualified majority voting decides otherwise (that is, unless various governments agree to let one another off, which of course they will).
Other announcements included the rapid deployment of the 440bn European Financial Stability Facility, to prop-up distressed governments such as those in Greece, Italy and Spain, preventing contagion from spreading across the eurozone. Yet no-one quite knows where the 440bn will come from. The eurocrats acknowledge this by referring to the EFSF as leveraged. But who will lend money to an entity that has no obvious income stream?
The new European Stability Mechanism apparently has 500bn to spend, so bolstering the firewall. Yet another acronym we must add to the bail-out lexicon, the ESM will now come on stream by July 2012, earlier than previously expected. Again, though, we dont know whose money it will be dishing-out. But we do know that Finland and Holland, among others, are furious France
(Excerpt) Read more at telegraph.co.uk ...
How about to weather the debt crisis?
I would rather fall at a tumble, instead of landing flat on my face.
I think they’re just trying to delay the inevitable so that the elites can get their money out before it all goes to shats.
“A new stability union will see member states adopting a golden rule...”
ARGH! This is the same stuff they tried at the start of this Euro-game.
If any of that had worked they wouldn’t be in the mess they are in.
BTW - where is the troll who was constantly posting about Germany (who for decades and still is, the number one economy in Europe and third, now fourth, in the world.) being "a pariah State", "the sick-man of Europe" and such crap.
Nevermind, it is just really funny! LOL!
I believe you are correct. In the times ahead, the global future, money isn’t the paper it’s printed on. Knowing how to survive in a caotic world without electricity, stores, automobiles, etc. is all that will sustain. It’s coming, soon.
One thing that is striking is that almost all those European leaders are “Conservatives” in their countries.
Never has Europe been so politically homogenous (on paper) and yet never has “she” (let’s be polite and call “it” a lady) been so close to the abyss. France, Germany, Great Britain, Spain and until yesterday even my Italy (full disclosure I’m a lazy, PIIGS, retarded, under-achieving wop) are all governed by “moderates” - and so too are many of the “lesser” countries.
But due to the sickness of the Euro and the resultant struggle for hegemony, a sort of civil war has erupted (though wars never “erupt” like volcanoes, they are willed!) among the European right.
Europa or Neuropa?
I can’t help see what has happened to Italy and come to some bizarre conclusions. The President (unelected by the people), an old ex-communist (who defended the invasion of Hungary in 1956) appointed a master banker (Goldman Sachs, Moody’s, Bildergerger, Trilateral) and that unknown entity was voted in by nearly the entire political spectrum (what we here call a “Bulgarian majority”).
Years ago that would have been unthinkable. Today, after the rise of China, we see a form of elitist Capitalism co-existing with political oppression. Right and Left don’t mean what they used to.
The battle lines are different: Big government vs small. Globalism vs subsidiarity; systems or culture; multiculturalism vs law.
“For what doth it profit a man, if he gain the whole world, and suffer the loss of his own soul?” (Matthew 16:26)
Money money money, growth growth growth, progress progress progress, freedom freedom freedom (in and of themselves, but about as vacuous as Obama’s “Hope and Chaange”)
God or Mammon
Just to be clear on British idioms, the term “plaster” as used in the U.K. is the equivalent of “Band-Aid” in the U.S.
At least a couple of EU members have cooked their books in the past. What is there in this new framework to keep them from doing it again?
That is exactly what is happening...that and no politician wants to be the one holding the ball when the game ends.
TPTB also want to ensure that the globalized central banking system is ready to put into place when THEY say the time is right. I think it is fairly safe to say that, when financial Armageddon strikes, they will NOT switch to the new global system immediately. They will wait until after there is a huge die-off and those that survive are good and docile and are willing to admit that being enslaved to the global ruling elite provides a far better life than independent survival.
Leave it to the Brits to publish an informative article the likes of which we won’t see here.
It's called "begger thy neighbor"...
Wow, he nailed it!
The meetings between Sarkozy and Merkel and announcement give Sarkozy the political points he needs to demonstrate that he did not actually cave in. I am sure he in fact did get a few points in, here and there. But not the key points and certainly not what he was asking for this past summer. But he has elections coming up in five months. He cant appear to be weak when negotiating with the Germans.
Whose banks are in worse shape (are hiding insolvency better) France's or Germany's?
German bank situation is overlooked because Germany is pushing everyone else around?
Who's smiling now, eh?
He got some of what he needs for his upcoming election when he delivered the ultimatum to David Cameron.