Euros entered circulation on January 1, 2002. For six years, they grew on trees in southern Europe. But the bubble got pricked. Since then, the monetary union has been in crisis. Almost half of its existence! Until suddenly, its problems were solved. But now confidence in the monetary union is weaker than ever. With a hue of resignation in Germany.
Europe – Germany
The Utter Fragility Of The Eurozone: Even Democracy Is A Threat
by Wolf Richter • • Comments Off on The Utter Fragility Of The Eurozone: Even Democracy Is A Threat
“I’m appalled that two clowns have won,” said the man who’d try to knock German Chancellor Merkel off her perch this year. He was referring to former comedian Beppe Grillo and former Prime Minister Silvio Berlusconi. One of them is “a professional clown who doesn’t mind being called that,” he explained; the other is “a clown with special testosterone boost.”
A Taxpayer Revolt Against Bank Bailouts In the Eurozone
by Wolf Richter • • Comments Off on A Taxpayer Revolt Against Bank Bailouts In the Eurozone
Bank bailouts have made owners of otherwise worthless bank debt whole through a circuitous process by which taxpayers transferred their money to investors. Even in Greece. Even a bank that had siphoned off $1 billion through fraud and embezzlement. It wasn’t fair. But fairness had nothing to do with it. That’s how bailouts were done. Until now.
Lies, Damned Lies, And Banks: Deutsche Bank Caught Again
by Wolf Richter • • Comments Off on Lies, Damned Lies, And Banks: Deutsche Bank Caught Again
Deutsche Bank, long coddled by the German government, is mired in “matters” from Libor rate-rigging to carbon-trading tax-fraud. Now a new “matter” seeped out: the bank had known for years about the impact of commodities speculation on food prices and the havoc it wreaked on people in poor countries. And it lied about it to the German Parliament.
What If Germany Gets Bogged Down Too? Or Has It Already?
by Wolf Richter • • Comments Off on What If Germany Gets Bogged Down Too? Or Has It Already?
By Midyear, Europe ‘Can No Longer Live With This Euro’
by Wolf Richter • • Comments Off on By Midyear, Europe ‘Can No Longer Live With This Euro’
“I’m sitting on cash,” Felix Zulauf said when he was asked in an interview where he was putting his money. With decades of asset management experience under his belt, he’d founded Zulauf Asset Management in Switzerland in 1990. But now he was worried—and has turned negative on just about everything.
The Confidence Crisis In Spain Sends Out Shock Waves
by Wolf Richter • • Comments Off on The Confidence Crisis In Spain Sends Out Shock Waves
It should have been an exciting event for Spanish Prime Minister Rajoy: a tête-à-tête with German Chancellor Merkel. Afterwards, he’d stand next to her, illuminated by her glory. He’d brag about implementing structural reforms, cleaning up banks, and moving Spain forward. She’d endorse him with her benevolent smile. Instead, it was a slugfest about corruption.
The Putrid Smell Suddenly Emanating From European Banks
by Wolf Richter • • Comments Off on The Putrid Smell Suddenly Emanating From European Banks
LEAKED: Mario Draghi And His Triumvirate Shut Up German Finance Minister To Keep Cyprus From Blowing Up The Eurozone
by Wolf Richter • • Comments Off on LEAKED: Mario Draghi And His Triumvirate Shut Up German Finance Minister To Keep Cyprus From Blowing Up The Eurozone
The state-sponsored chorus about the end of the debt crisis is deafening. It even has feel-good metrics: the “Euro Breakup Index” fell to 17.2%. In July, it stood at 73%. For Cyprus, fifth country to ask for a bailout, it fell to 7.5%. “A euro breakup is no issue anymore,” the statement says. Just then, top Eurocrats expose what a con game they think these bailouts really are.
German Spy Agency: Geopolitical Consequences Of US Oil Boom
by Wolf Richter • • Comments Off on German Spy Agency: Geopolitical Consequences Of US Oil Boom
Much digital ink has been spilled about the US oil & gas boom, and whether or not it will lead to energy independence, or even turn the US into an oil exporter. Now a “confidential” report by the German version of the CIA, the Bundesnachrichtendienst, seeped to the surface. It sketched out the boom’s geopolitical consequences. Biggest loser? China.