Europe – Germany
The Eurozone Con Game Just Keeps Cracking
by Contributor • • 3 Comments
“European leaders have not been able to meet their responsibilities,” French Prime Minister Jean-Marc Ayrault said about Germany and some other countries that are reluctant to pile more taxpayer money on Greece, whose economy is grinding to a halt, and whose government can no longer fulfill its promises. Yet, the very “responsibilities” of these “European leaders,” many of them unelected bureaucrats, have turned into a can of worms.
Monetary Schizophrenia in Germany
by Wolf Richter • • 2 Comments
A pact with the devil—that’s now the official metaphor for the European Central Bank’s “unlimited” bond purchases that are supposed to save the Eurozone. Bundesbank President Jens Weidmann himself referred to it when he discussed the “dangerous correlation of paper money creation, state financing, and inflation.” But it’s too late. Germany has cracked in two. And part of it has embraced that pact with the devil.
Power Grab: The Noose Tightens On National Sovereignty in Europe
by Wolf Richter • • 1 Comment
When French and Dutch voters were given an opportunity to vote for the European constitution in 2005, which would have transferred considerable sovereignty from their countries to the European government and its unelected bureaucrats, they “unexpectedly” killed it. An unforgettable lesson for politicians: don’t let the riffraff decide. Such matters are best handled by the elite—politicians, bankers, and unelected bureaucrats. And on Wednesday, they were busy handling such matters.
Merkel and Clinton Go To China: One Makes Deals, The Other Gets Snubbed
by Wolf Richter • • 1 Comment
Bring home the bacon, or the speck, as it were, was the guiding principle for German Chancellor Angela Merkel when she frolicked in China last week. But her pleas to get the Chinese to buy the crappy bonds of debt-sinner countries in the Eurozone fell on deaf ears. This week, US Secretary of State Hillary Clinton was hobnobbing with the Chinese elite. It turned into a clash fest, and instead of bringing home the bacon, she argued with the Chinese over everything and the South China Sea.
The German Economy Tanks, The ECB Throws Gasoline On The Fire, And Eurozone Bailouts Enter Phantasy Land
by Wolf Richter • • 5 Comments
Slovenia joined the Eurozone in 2007, went on a borrowing binge that blind bond buyers eagerly made possible, dousing some of its two million people with riches, creating a real estate bubble that has since burst, and driving up its external debt by 110%. And in October, it may go bankrupt, admitted its Prime Minister. Because borrowing binges can last only so long if you can’t print your own money. And in Germany, the debate itself may tear up the Eurozone.
Counter Revolt In Germany: Gagging “Hardliners” As the Economy Tanks And Future Exports Drop Into The Red Zone
by Wolf Richter • • 6 Comments
A hullabaloo has flared up in Germany over squashing democratic discussions on whether or not taxpayers should endlessly pay to keep Greece in the Eurozone and protect bondholders—the ECB and national central banks—from having to recognize reality on the worm-eaten Greek debt in their basements. The tools: political pressure, fake moral outrage, and ridicule. Now politicians have something big to hide behind.
Letting Greece Twist In The Wind
by Wolf Richter • • 4 Comments
With impeccable timing, it seeped out that a group of experts at the German Finance Ministry is studying ways to deal with a Greek exit from the Eurozone. A spokesperson clarified helpfully on Friday, rather than denying it, that the group has been in existence for over a year. Impeccable timing because it happened as Greek Prime Minister Antonis Samaras was arriving in Berlin for his begging expedition. German Chancellor Angela Merkel must have smiled. The heat was on.
Euro Optimism Surges, A Greek Tax Revolt Flares Up: It’s Decision Time, Again
by Wolf Richter • • 7 Comments
Euro optimism is once again gushing through the system on the hope that the debt crisis could be wished away with a nod by German Chancellor Angela Merkel or with a wink by the Bundesbank at the European Central Bank, which is dying to print unlimited amounts of moolah to buy sovereign bonds—and old bicycles, if it has to—in order to force yields down for debt-sinner countries like the US Spain and Italy. But in Greece there has been an incident.
German Bailout Rebellion: “We Have Euro-Anarchy”
by Wolf Richter • • 4 Comments
For German Chancellor Angela Merkel and her ilk, it’s going to be a steamy August and an even steamier September and October with political battles left and right, to be fought mano a mano, as the Eurozone debt crisis and the growing bailout rebellion in Germany are migrating from parliamentary discussions, closed-door meetings, and shaky EU summits—21 of them so far—to electoral politics. Voters may finally have a say. And it doesn’t look good for the euro.