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Angela Merkel Threatened To Walk On Euro In Late October, Likely To Do So Again Any Time She Does Not Get Her Way
Yet another datapoint that has been completely ignored by a market that not only does not discount future events, but is blind to current ones as well, is that, as the Guardian reported late in the day, Merkel threatened to abandon the euro during the EU summit in late October. Per the Guardian: "The German chancellor, Angela Merkel, has warned for the first time that her country could abandon the euro if she fails in her contested campaign to establish a new regime for the single currency." The paper goes on to further say that, "Merkel's central aim, which she achieved, was to win agreement on re-opening the Lisbon treaty so a permanent system of bailout funding and investor losses could be established to deal with debt crises that have laid Greece and Ireland low and are threatening Portugal and Spain. The Germans also called for bailed-out countries to lose voting rights in EU councils." And while this certainly means that Ireland will soon be left without a voice in any European discussions, much as we have expected, and under the thumb of one very corpulent and pathologically mendacious Olli Rehn, it also means the the Emerald Isle got the shortest end of the stick as it appears that future bailout will likely involve senior haircuts. But not so much in the Irish case, which may have been the last ditch effort by the multi-trillion impaired asset banking hydra in which as we showed first long ago, one's impaired assets, are another's leveraged extra-impaired liabilities.
More from the Guardian:
Merkel's central aim, which she achieved, was to win agreement on re-opening the Lisbon treaty so a permanent system of bailout funding and investor losses could be established to deal with debt crises that have laid Greece and Ireland low and are threatening Portugal and Spain. The Germans also called for bailed-out countries to lose voting rights in EU councils.
At the Brussels dinner on 28 October attended by 27 EU heads of government or state, the presidents of the European commission and council, and the head of the European Central Bank, witnesses said Papandreou accused Merkel of tabling proposals that were "undemocratic".
"If this is the sort of club the euro is becoming, perhaps Germany should leave," Merkel replied, according to non-German government figures at the dinner. It was the first time in the 10 months since the euro was plunged into a fight for its survival that Germany, the EU's economic powerhouse and the lynchpin of the euro's viability, had suggested that quitting the currency is an option, however unlikely.
Merkel's spokesman Steffen Seibert would not comment on her remarks today. But the threat, he said, was "not plausible. The chancellor sees the euro as the central European project, wants to secure and defend it and the government is not at all thinking of leaving it," he said. "Germany is unconditionally and resolutely committed to the euro."
And for those who think the European collapse has been averted, think again: the day of reckoning has at best been delayed by a few weeks (and that assume the European banking system survives December 7).
EU finance ministers are to meet again early next week ahead of the summit on 16-17 December. The mood in Brussels is febrile and there have been rumours of another extraordinary summit or session of finance ministers this weekend.
The summit in two weeks' time, said a senior European diplomat, would be preoccupied with the treaty change needed for a permanent bailout mechanism to be established when the €750bn fund expires in mid-2013. "The real question is, is there enough in the fund? If not, how much more do we need?" the diplomat added.
Also, wonder why Trichet spent a few billion euros buying up PGB bonds:
"Portugal will need to be saved. The big issue is Spain," said another senior diplomat.
Whether Merkel's threat will become something tangible is unknown. Keep an eye out on prices denominated in DEM in Bavaria beer halls for the best indication:
Diplomats, analysts, and officials generally agree that Merkel is right
to focus on "moral hazard", insisting that the markets and not only
governments and taxpayers have to share the losses if a eurozone country
implodes. But her timing could not have been worse, they add.
Since the market could not care about anything besides how many nanoseconds a given collocation box frontruns everyone else by, we don't think her timing matters one bit.
In the meantime, the real action might, just might, come out of leftfield next Tuesday, December 7, when European, not nearly as lazy and easily distracted as their transatlantic cousins, decide whether they have the guts to end the Helsinki syndrome they have developed with their banking sector hijackers.
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The reason for December rally:
Bernanke Doesn't Rule Out QE Exceeding $600 Billion http://www.bloomberg.com/news/2010-12-03/bernanke-won-t-rule-out-further-asset-purchases-cbs-s-60-minutes-says.html
"The interview with CBS journalist Scott Pelley was filmed Nov. 30" (and of course the selective few knew about it in am on December 1st)
Imho,
Euro divergences across members are impossible to be solved.
So Germany will leave Euro and Create a new currency- Die Neuer Mark linked to Gold and Silver Standard
Remember one thing. Germany has been keeping all the physical gold, breaking the "Washington Agreement 2004 "... just tell me why ?
Germany is the first country interested in Euro autoselfdestruction- The future comes by Eastern Europe for them (Czech,Poland,Moldova,Ukraine,Russia,Urals,Bulgaria,Romania,Slovakia,Slovenia, and Baltics)- Multiforgiven debt schemes are coming -"sistema de quitas".
Spain will be bailoutted by Libya ,Venezuela, Gulf Currency Countries GCC(7 countries including Yemen)...All has been treated in Salou Catalonia 2010 with Mr.Ackermann there like a fagocitator... just look the Sacyr-Repsol market makers (Banco Santander). OHL(construction co.)....All Scamers. Also UK/US based Hedge Funds could destroy Spain just shorting it till 4.200 points (getting back to 1994 yr level index vs current 10.000 = 50% return), but the most funny thing its the III world war is just a financial terrorism ignition spark. No missiles, No friendly fire...just leave a country without financing and scarcity...sounds tough, but its my different vision.
Thats why Hard assets will easy triple value, cos the world has changed and governments doesnt want officially to admit. The population must know it.The war has just started.
Regards,
I leave to Zero Hedge Members a Mandate by the Ukranian Fund (orange party) and the Dubai Foundation (dealer based in Hong Kong) in order to capture all the gold as possible in Latam and Southern Europe.
Its in spanish...just apologize me..
Por lo que respecta a la transacción comercial de lingotes de oro, aqui las especificaciones del mandato recibido por la fundación que te mencioné ayer noche. El mandato de compra lo tendremos firmado en le momento que podamos asegurar que tenemos un proveedor adecuado. (THEY ARE REQUESTING MY SERVICES FOR OBTAINING physical gold) Especificaciones Técnicas: Peso:Contenido mínimo de oro: 350 onzas finas (aproximadamente 10,9 kg)
Contenido máximo de oro: 430 onzas finas (aproximadamente 13,4 kg) Dimensiones:
Largo: 250 mm +/- 40 mm
Ancho: 70 mm +/- 15 mm
Alto: 35 mm +/- 10 mm Pureza:
Desde 995 hasta 999.9 partes por 1000 de oro fino Naturaleza: LINGOTE Marcas en el lingote: Se admiten marcas de pureza y año de fabricación, no se compraran lingotes con sello del refinador. Apariencia: Las barras deberán ser de buena apariencia, libres de cavidades superficiales, irregularidades, contracciones excesivas y fáciles de manipular y apilar convenientemente. Origen: No hay especificaciones Especificaciones Comerciales: Precio de Venta: Fijado con el cierre del mercado de Londres (London Gold Fixing). Precio de Venta debería incluir: 1. Comision a la intermediacion fijado en un 4%. (2% para el vendedor, 2% para intermediarios) 2. Descuento por volumen: 8% aprox. (para volumen superior a 5 tn) 3. Termino Internacional de Comercio: EXW; importante delimitar que la responsabilidad del traslado y los costes corresponden al propio cliente. Cantidad Lotes minimos de 5 tn ( si se consigue menos se considerará). Good Bye Fiduciary Money...good bye...
So bailout countries lose vote. Isn't that logically like putting them in the stocks pulling thier pants down and paint free raping privaleges on thier ass.
The political expansion of the EU is really taking off.
I would not have imagined such a degree...
Depriving countries from their voting rights... Always think bigger than big.
That is why they are in their position...
Load them up with debt, then "save" them on condition they submit to a dictatorship. Almost sounds like a plan.
Germany will have the most to lose in a Euro/EU implosion.
She's a feisty one, old Angie.
Talking about unsound money...
Money: Sound and Unsound | Mark Thornton - http://www.youtube.com/watch?v=aZTq4X04_XY&feature=recentu
I like the feisty woman. She is like me. We are smart and good with numbers. We don't need calculators for things to add up--we just use common sense. In this crazy world we live in, how many other leaders have this common sense? My nails are drying right now but I think I can count with less than one hand--oh, so easy...es cero.
Worst fake persona ever.
Do you know Fuck Face? Greeks called him Loki. Native american's call him the coyote. You're in his league. He doesn't like it when I call him fuck face though. It makes him think he's a bad counterfeiter.
Plus with Von Havenstein long lost Great Grandson on CBS 60mins.....
We seem to edge ever closer to that nordic euro option.
"Von Havenstein long lost Great Grandson"
+1000 LOL
Germans are doing the heavy lifting in the EU. There's no upside for them.
The upside for years has been a continental market with a strong currency for their goods.
Actually there is. Without a common curreny, spaniards and greeks would not be driving german cars.
The Germans are very kind, they lend us money so we can buy the products they make. Now they realise we can't pay they are consolidating our loans. Nobody in europe is in financial trouble except the germans.
Whoever junked this is missing something big. These bailouts are not for the country bailed out, but rather for its creditors, who are way, way, TBTF private banks with fragile balance sheets in core european countries, countries like Germany and France and Austria.
What we have here is a version of the old observation: that if you owe a bank a thousand dollars and you can't pay, you have a problem. If you owe a bank a million dollars and can't pay,the bank has a problem.
Add a bunch of zeroes onto those figures and you get to a proper understanding of why the secret Fed loans and explicit mega bailouts have been imposed: To save the lenders, NOT the borrowers. The can must be kicked further down the road, in hopes that something or other gets better before it all implodes in a debtastrophical value singularity from which no economic output can escape.
I'm no expect but I think Merkel is playing politics. Can't believe she would turn her back on the EU project in favor of her own citizens.
They woundn't turn their back under a Nordic Euro & Southern Euro system.
Just a slight change of direction to sideways on.
I cannot for the life of me see a 2 Euro system working. It defeats the whole stated purpose of having the Euro. And right after the Euro's failure are these countries going to pile into the exact same system but with different borders? So why would they support a Nordic Euro vs going back to their traditionally strong local currencies? Only thing I can see is it done as act of desperation and more kick the weaker sates out and Euro become Nordic, at best.
I cannot for the life of me see a 2 Euro system working.
It can't.
Two Central Banks?
Two distinct interest rates?
Still no Treasury?
It's all nonsense.
Nope, beg to differ, the USD-Yuan peg works very well for the two way special relationship of last ten years, even too well. So we have n example right there. It is possible to devaluate the south economies once they have temporarily defaulted and collectively restructured on an organised basis with fiscal harmony throughout EU. It is theoretically possible but in current terms practically impossible as the nations do NOT agree to this twin strategy.In this scenario, to fight as a unified continent, the EU needs to go more federal to face the Asian challenge of Chindia plus USA plus Brazil. That or dissolve into puny nation states all on their own like small minnows. Why not, it works for Switzerland and it is PLAN B. They will soon be forced to choose between A & B options. There is no other choice in this rampant Oligarchy play that makes nation states vulnerable and Federal ones SUCKERS to the Oligarchy. Its a choice between Charybdis and Scylla!
Seems to me that Merkel is playing a game with her banksters.
Folks (like me) need more info on the banking structures imposed upon Germany post WWver2.0 . Patton made some comments in his diary and I have some anectodal stuff -doesn't amount to much.
But the posturing is good electioneering.
Euro to Merkle: "Please take me back baby, you know I only beat you because you make me so jealous when you wear those short skirts and tight sweaters -- this is the last time, I swear!"
Merkle: "Well... Okay, but this is absolutely the last time!"
there's your debt bubble right there - UK, Germany, and France. All those "assets" are debts owed by the littler fish.
The move on Spain will probably be to acquire Spain's rental properties in the Western Hemisphere, i.e., South America. The properties they rent to the populations there.
Germany and France are precious, and so is the UK; they actually expect pounds of flesh as repayment for all this bullshit credit they created.
We're hanging Tinsel around Michele Cabrerra's chest.
Watch out for saber-toothed crotch critters bearing right-wing gifts.
Get yourself some reserve currency real quick!
That should be a Stockholm syndrome rather than Helsinki, huh?
The Germans will go their own way as they did in the past, they will never drink a beer less in order to have the spanish a glass of rioja. They are lucky to have the newly rich Chinese to buy their Audi's and BMW's. And as the germans used to think, the attack is the best defense. bitte meine Herren
I dont think so at all.
The german government is corrupt and controlled by the same globalist bankersters as the US. They would never leave the Euro. A failure in the Euro (ie. bancrupty of portugal, spain, italy) would only lead to a even wider currency such as the use of SDR's.
Sounds like postering to me. She doesn't have the power to do anything like that. She is not the Queen of Germany. When the EU was created the Germans signed on the dotted like just like the rest of them. The only way out is war.
Really? And just what was the EU's military budget last year? Compared to Germany's?
From memory when you take the limit, as X goes to zero, of the ratio between German and EU and non-US NATO defense spending, the main thing we learn is these are all very small numbers. Europa ist demographieric ausgefuckt, any way you cut it.
And where is a Neville Chamberlain when you need him....
Angie, babe-bee doll cakes.
Tell those little peon undisciplined EU Ubermenschen to suck on it and die, bring back the Deutsche Mark, keeping it purer than the whitest upper reaches of your great strong thighs in the coldest of bleak winter months, all rosy colored with razor burn, reminding the Volkstrum of the cheery cheeks of the little blonde children braving the Polar baths in frigid Rhineland.
Go for it. Brook no crap from freeloaders.
And next comes Lebensraum?
As a creditor country, Germany is now among Europe's biggest freeloaders.
Germans need to make a break before they go bankrupt..
UK was smart not to adopt the Euro.
UK banking and political class (especialy Gordon Brown) needed no outside help in bringing our country to bankruptcy. I think the real reason Brown did not frog march us in, is that he thought it would cramp his scope for currency debasement, and monstrous public spending.
It wasn't up to brown, soros saw the problem.
By 2002 Blair was thinking about joining again, though.
Europeans dont have a Stockholm syndrome with the banksters, it´s our politicians :(
"The Germans also called for bailed-out countries to lose voting rights in EU councils."
Then naturally the countries whose banks are insolvent many times over due to their irresponsible loose lending practices to the PIIGS during the boom years (along with non-existent regulatory oversight their banks) ought to also lose their voting rights until the banks are once again solvent or closed down. Deutschebank, Commerzbank, HypoRE, and the Landesbanks all come to mind as good examples.
Likewise, Merkel won't really be walking out of the Euro as long as she's still expecting the periiphery to pay back all those banks, or at least to service the interest and keep pretending!
I'd like to see them work it out via some kind of post modern, avant garde performance version of war amongst themselves, replaying history as farce, but alas, various degrees of civil war and nationalist socialisms springing up are the most likely outcome.
Germany is commited to the European common market and the Euro whether they like it or not. The Euro is really the "Mark", albeit in a socialist manner that creates a nut-crunching float between all the common countries that have to maintain the market and the Euro at some balanced state...but Germany is the main driver of the value of the currency. In a situation where you have a northern "civilized" Euro, and a southern "wog" Euro, Germany would drive the northern Euro even higher in value, adversly effecting their exports to the "south" Euro zone. A Mark/Euro system would have devastating effects on Germany's export economy....no more Mercedes/BMW/Seimens sales to the rest of Europe without a profit haircut. It is in Germany's interest to see a stable Euro and a strong dollar. The problem is, how to maintain a stable Euro while so many Euro-countries use it as a sugar tit to enhance their lifestyle without producing value into it.
We are talking about the Germany with the 1.3 children per woman birthrates, correct? Just making sure we aren't talking about an alternate universe Germany here.
I guess you are gonna have to explain that one for me....I am a little slow.
Speaking of alternative universes, see your own post below. Oh...BTW, I get it now:)
I said something about this during the summer in regards to Germany may be deciding to leave the Euro. Of course it won't explain how they will get back the hundreds of billions their banks loaned to Western european countries and Eastern ones.
That is another reason they cannot leave. They would lose the legal framework upon which to seek redress from their Euro compatriots. There are tenants of international law, ex-Euro, that could come in to play, but they are not as clear or as binding as Euro law.
Awesome! I always get a good hearty guffaw when someone writes "international" and "law" together, in just that order, you know, "international law". Horry Clap dude that is teh funny.
Well...in a left-handed way, you confirmed my point.
And....BTW...what the fuck is "horry clap dude that is teh funny?" I assume from your diction, sentence structure, syntax and spelling that you probably specialize in international law?
Awesome, there it is again "international law." Stop it dude, you're killing me here.
December 7 is Irish budget day as well. If the budget fails then the EFSF intervention is at least postponed. It'll probably pass though.
UNCLE BEN! UNCLE BEN!
SAVE US!
The entire world is the most tragic farse imaginable.
The only efficient, ethical, just scale for "sovereign" is individual human beings. They exist, afterall, and they invest their time, effort and resources to produce real, physical goods which they need to survive, prosper, advance and enjoy life.
Yet every action, every day by the predators-that-be and the entire predator class keeps trying to forcably attach the notion of "sovereign" to larger and larger, and more and more fictional non-entities. These non-entities do not exist (organizations are correct called "fictitious entities" in fundamental law), they do not and cannot produce anything, they are only ideas in human minds, and they only exist to provide cover for the actions of the predators-that-be and predator class who promote them.
The entire world is absolutely, completely insane.
I am not sure if I should be happy or sad about this, people getting bailed out should pay for it(with votes or otherwise) but than that concentrates power even more so it's a double edged sword
Germany is the leading recipient of the latest bailout.
ein Reich...
Germany will not be leaving the Eurozone, it is simply exerting its leadership in the current currency and banking and sovereign debt issues. It's leadership role will grow greater by the day.
Cliff Risk emerged in the European Financials, EUFN, on November 5, 2010 as sovereign and corporate interest rates rose and as currency traders sold the Euro and other currencies. It was on this date that the world pivoted from the age of prosperity and into the age of deleveraging, as is seen in the MSN Finance six month chart of world government bonds, BWX, the 30 Year US Government bonds EDV, and the 10 to 20 Year US Government Bonds, TLT.
This week, European Financial Institutions, EUFN, were restored to life by ECB announcement of ongoing purchases of debt. World government bonds, BWX, and international corporate bonds, PICB, rose, which contrasts with US Treasures, EDV, and TLT, as well as US based corporate bonds, LQD and BLV, which fell lower.
The European Financial Institutions, EUFN, in particular these eight: Deutsche Bank DB of Germany ….. Banco Santander, STD, Spain ….. ING Groep NV, ING, Netherlands .…. Credit Suisse, CS, Switzerland, ….. Royal Bank of Scotland, RBS, Scotland ….. HSBC, HBC, United Kingdom ….. Barclays, BCS, The UK …... UBS, Switzerland ….. have gone beyond the tipping point and are at cliff risk ….. as the liabilities of the bank-sovereign debt symbiosis grow stronger.
Soon the European Financial Institutions will be going over the cliff, as the sovereign crisis deepens and bond vigilantes call interest rates higher, the market insiders short sell the banks, and as currency traders sell the Euro, FXE.
Out of Götterdämmerung, that is a investment flameout, a Sovereign, a leader like Herman van Rompuy, and a Seignior, a banker, like Olli Rehn or Jean Claude Trichet, will emerge from Europe’s Core, to provide fiscal sovereignty and both credit and fiscal seigniorage through a common EU Treasury and implement strong economic governance like the world has never known or even thought possible.
Leadership for reconstitution of the global economy will come from Germany, as Germany is the real power force in a revived Roman Empire, and is currently taking the lead in an attempt to find a way out of Europe’s sovereign debt crises. Ambrose Evans Pritchard commented, on May 2, 2010, in the Telegraph, documenting the power of Germany in words reminiscent of Margaret Thatcher: “If the aim of Helmut Kohl and Francois Mitterrand at Maastricht was to tie down a ‘European Germany’ with the silken chords of emu, they failed. Monetary union has delivered a ‘German Europe’ after all. And he continues, We now know the answer to Henry Kissinger’s question: “Who do I call if I want to call Europe?” Only one person matters,The Chancellor of Germany.” …. And also Arthur Beesley in October 20, 2010, Irish Times article Sarkozy And Merkel Union Just Too Powerful To Ignore documents the rising power Germany in the EU.
Germany has always had an enduring desire for leadership within Europe. It was one of six signatory nations to the Treaties of Rome which established the Eurozone on March 25, 1957. Historian Juan Carlos Ocana writes: These Treaties being the European Economic Community, EEC, Treaty, and the European Atomic Energy Community Treaty. The EEC affirmed in its preamble that signatory States were “determined to lay the foundations of an ever closer union among the peoples of Europe.” In this way, the member States specifically affirmed the political objective of a progressive political integration. The EEC was colloquially known as “Common Market”. The member countries agreed to dismantle all tariff barriers over a 12-year transitional period.” The signatories of the historic agreement were Christian Pineau on behalf of France, Joseph Luns from the Netherlands, Pauh Henri Spaak from Belgium, Joseph Bech from from Luxemburg, Antonio Segni from Italy, and Konrad Adenauer from the Federal Republic of Germany. The Treaties were ratified by National Parliaments over the following months and came into force on 1st January 1958.
The Seignior will establish fiscal sovereignty, unified regulation banking of globally as described in the James Politi and Gillian Tett Financial Times article NY Fed Chief In Push For Global Bank Framework, a common Eurozone Treasury, both credit and fiscal seigniorage, and enforce austerity resulting in internal devaluation. In the globally integrated future financial world, services from companies such as ACI Worldwide, Inc, ACIW, should be in great demand.
Its very reasonable to believe that out of the soon coming implosion of European Banking, that Jean-Claude Trichet could rise to rule in Europe as he frequently stated a need for strong economic governance. France 24 International News in article Trichet Calls For United EU At The IMF reported on September 4, 2010: European Central Bank chief Jean-Claude Trichet called for Europe to hold a united position on reform in the International Monetary Fund. "I would urge the Europeans to have a united position," Trichet said when asked about the possibility of cutting the number of EU seats at the IMF. Speaking at a press conference at the Forum Ambrosetti, a political and economic gathering in northern Italy, Trichet said a common EU position on IMF reform is "very important for global governance".
And in address Global Governance Today, made before the Council on Foreign Relations, CFR, on April 26, 2010, Mr. Trichet called for a new financial state-of-being saying: “For the good and appropriate functioning of global finance it is extremely important that we, in this new ownership of global governance, have — particularly on both sides of the Atlantic — the implementation of the same rules in the same fashion.”
Forbes reports on December 4, 2010 ECB's Trichet To Receive 2011 Charlemagne Prize. Wikipedia relates that the Charlemagne Prize (German: Karlspreis; full name originally Internationaler Karlspreis der Stadt Aachen, International Charlemagne Prize of the City of Aachen, since 1988 Internationaler Karlspreis zu Aachen, International Charlemagne Prize of Aachen) is one of the most prestigious European prizes. It has been awarded once a year since 1950 by the German city of Aachen to people who contributed to the ideals upon which it has been founded. It commemorates Charlemagne, ruler of the Frankish Empire and founder of what became the Holy Roman Empire, who resided and is buried at Aachen. Traditionally the award is given to the recipient on the Ascension holiday in a ceremony in the town hall of Aachen.
European Voice reports that Angela Merkel was awarded the Charlemagne Prize on April 30, 2008