Et tu, Finland?
A true debacle is unfolding. Just when we thought the euro was finally safe.
“I’m not part of that system that has destroyed this country,” said Prime Minister Renzi. National leaders were deposed by the Troika for lesser sins.
European bankers have begun sweating, not because of the harsh heat, but fear – of what could happen as battalions of bank auditors take up temporary residence at the headquarters of the biggest banks.
Under the nimbus of its illustrious performance, the European Banking Authority has reduced the world of money to two abbreviations: VC (virtual currency) and FC (fiat currency). And it has taken sides.
It’s not often that a bank regulator proclaims stocks of teetering banks are undervalued because markets are too dumb to value them correctly. That’s what Danièle Nouy, chair of the ECB’s Single Supervisory Mechanism just proclaimed. She has a motive.
The ECB’s money-printing and bond-buying promise, lovingly dubbed Outright Monetary Transactions, became the bailing wire and duct tape that has kept the Eurozone together to this day. Turns out, it’s illegal under the EU treaties and unconstitutional in Germany.
When Jens Weidmann, President of the emasculated Bundesbank, speaks, central bankers and money printers worldwide stuff wax into their ears. “Caution,” he started out, “the euro crisis is far from over.” Then he committed central-bank heresy.
Suddenly, there’s a solution to France’s economic crisis. Unlike the cacophonous clamor from the far right to drop the euro, this one is attractively presented with graphs and in terms that even a French politician might understand. And it’s not contaminated by partisanship.
The euro, its dexterous management, the “whatever-it-takes” guarantees by ECB President Draghi, the trillions being shifted around to prop up banks and governments – all these efforts to keep the Eurozone duct-taped together have hit countries differently. Including France and Germany. They’re shooting at each other now, and hitting the ECB.