EURUSD Plunging On News European Aid Package In Jeopardy

Tyler Durden's picture

By now everyone is aware that the G20 meeting failed to come to a consensus vis-a-vis strategic rescue approaches on the global bailout, with Tim Geithner pushing for uber-Keynesianism, while a far more prudent Europe saying enough to record deficits, and in essence potentially putting the end to the avalanche of endless bailouts and the Bernanke Uber-Put. At least such is the case until tomorrow when Europe's bureaucrats wake up and see a EURUSD at a level that rounds down to 1.10. The reason: Der Spiegel reports that Germany's high court is considering blocking Germany's participation in the European rescue package, a development which if it were to come to pass, would send the euro plunging to parity not with the dollar but with zero.

Translated from German:

The Federal Constitutional Court, order against the euro rescue to adopt an interim measure. This would allow the court provisionally prohibit the federal government to guarantee loans to enable the German. Against the rescue package are constitutional complaints against several.

The President of the Constitutional Court, Andreas Vosskuhle had to Gauweiler complaint, according to information of the SPIEGEL explicitly asked for opinions of different jobs: He led them to the Federal Government, the Bundestag, the Federal President, all state governments, the European Central Bank and the German Bundesbank and asked for feedback. It is Vosskule a request for interim relief, the Gauweiler associated with its application has. Gauweiler has brought in Karlsruhe already against the Treaty of Lisbon complaint. Disturb him, "that is further given unchecked power to EU bodies.

The German government warned that an interim order could lead to a "self-fulfilling expectation of default" by Europe's troubled states. As readers will recall, all it takes is for a country sovereign debt spread to to widen to 5% over Bunds, for them to have an "out" from the EU rescue package, a loophole most will surely take advantage of eagerly as soon as the market processes this latest development. All in all, another week of pain for Europe approaches, and of even greater pain for the US manufacturing sector, which paradoxically was the only one to materially add new jobs in the latest NFP report.

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Thisson's picture

That's ok, the US manufacturing sector will benefit when we have our own domestic devaluation - coming soon to a Federal Reserve Bank near you.

dpr10's picture

noone will benefit as not many will be buying anything in that environment..maybe only in the long run...

Greed's picture

Indeed, no one will benefit from Mr. Gauweilers action except his reputation as an extraordinary expensive lawyer. I come across his vast office complex every other day. 

Obviously there is no legal way for the Bundesverfassungsgericht to declare an interim injunction.

As it was clearly stated in the article, the Bundesregierung advised the court that the decision to help Greece was not a legally binding agreement, but only a declaration of political will. 

This loophole has occasionally been used in the past to avoid similar trouble. It always prooved succesfull. It will be the same this time. 

Anyhow, everybody just keep on bashing the european project. Make your bucks and be happy, there are nice profits to be made. If you believe Europe will be seewing Chines T-Shirts soon, its your good right to do so. Many friends of mine say, the most succesfull US-company that appeared on the german market in the last years was American Apparell. Producing T-s vertically integrated, we all love it. 

DosZap's picture


I think you nailed it........Germany is not about to sacrifice itself on anyone's altar.Much less, destroy itself with QE to infinity.........for Someone else.

If this comes about, Sarkozy will Shite himself..France will be SOL,and it rolls downhill from there.......


SWRichmond's picture

EUR/JPY is taking it in the shorts, too.

Mitchman's picture

The yen loss is double that of the dollar.  What do you think the Nikkei looks like when it opens?


Busy-Body's picture

Check out the current tell-tale cross of AUD/JPY - 74.28 down 1.38 or -1.84%

zen0's picture

Sarkozy shouldn't have used his Banty-rooster act with Merkel. The bitchez cave initially, but then they stay up all night thinking about how to f8k you up, and smile while they do it.

Itsalie's picture

Now why did I question myself when French bonds and CDS spread widen last week? And Telegrapg reported UK economists suggesting the euro might not survive the end of the year? Maybe it wasn't the Socgen rumour afterall. Wait till sarko wakes up and read the newspapers, excitement must be intense as the days leading up to Lehamn Day and hedgies in Bangkok massage parlours are recalled the weekend to reset their bots ...  who will blow up (we know the countries, but which hedge funds? PIMCO? and JPM/Buffett and their derivatives), who will default, who will quit the euro, which would be the collateral damage, who will print money, who will jump?


caconhma's picture

Massacre in Czechoslovakia Newly Discovered Film Shows Post-War Executions

It has long been known that German civilians fell victim to Czech excesses immediately following the Nazi surrender at the end of World War II. But a newly discovered video shows one such massacre in brutal detail. And it has come as a shock to the Czech Republic. By Jan Puhl more...


It has long been known that German civilians fell victim to Czech excesses immediately following the Nazi surrender at the end of World War II. But a newly discovered video shows one such massacre in brutal detail. And it has come as a shock to the Czech Republic.

For decades, the images lay forgotten in an aluminum canister -- almost seven minutes of original black and white film, shot with an 8 mm camera on May 10, 1945, in the Prague district of Borislavka during the confusing days of the German surrender.


The man who shot the film was Jirí Chmelnicek, a civil engineer and amateur filmmaker who lived in the Borislavka district and wanted to document the city's liberation from the brutal Nazi occupation. Chmelnicek filmed tanks rolling through the streets, soldiers and refugees. Then, at some point, his camera also caught groups of Germans, who had been driven out of their houses and into Kladenska Street by Red Army soldiers and Czech militiamen.


Chmelnicek's film shows how the Germans were rounded up in a nearby movie theater, also called the Borislavka. The camera then pans to the side of the street, where 40 men and at least one woman stand with their backs to the lens. A meadow can be seen in the background. Shots ring out and, one after another, each person in the line slumps and falls forward over a low embankment. The injured lying on the ground beg for mercy. Then a Red Army truck rolls up, its tires crushing dead and wounded alike. Later other Germans can be seen, forced to dig a mass grave in the meadow.

A Shock to Czechs

The shaky images show an event that has been described again and again by eyewitnesses and historians: the systematic killing of German civilians. Yet the film comes as a shock to Czechs. "Until now, there was no footage whatsoever of such executions," says Czech documentary filmmaker David Vondracek, who showed the historical images on television. "When I watched this for the first time, it was like seeing a live broadcast from the past."

The only such images known before were taken by a US Air Force camera team. That footage showed injured Germans lying on the ground in Plzen, in what was then Czechoslovakia, in early May 1945. The images included some dead bodies, but they didn't show a liquidation, from beginning to end, like this one.

Vondracek's documentary about Czech atrocities, called "Killings, Czech Style," aired during prime-time on Czech state television just two days before May 8, the anniversary of Nazi Germany's surrender. The broadcast marks yet another milestone on the Czech road toward confronting a not-always-comfortable World War II past -- a path the country has been working its way down for years.



Are there any reasons why Germans must bail out these bastards?

EscapeKey's picture

I won't say this is right, but I don't understand your final comment.

First off, the Czech economy is actually very strong, and doesn't need a bailout.

Second, the local currency is the Koruna, not the Euro.

And finally, it's hardly as if the Germans didn't resort to similar methods during the war.

The war finished 65 years ago. Can we let it go now?

kaiten's picture

Killing of innocents is always a tragedy, but these events didnot come out of sudden.They came after horrors of WWII started by nacist Germany.

Most likely it was a retalation for this:

or this:

or this:


So before you start calling others bastards, perhaps you should first look into the mirror. 


docj's picture

What's the over/under on how many nanoseconds after the market opens on Monday will it take for the NYSE to invoke "Rule 48"?

Translational Lift's picture

NYSE to invoke "Rule 48 BEFORE market opens.....

AndItsGone's picture

They will invoke Rule 48 and execute Order 66.

HarryWanger's picture

Nah...EUR will miraculously rally back above 1.20, Hungary changes their mind, BP somehow can spin positive news out of the oil cap, etc., etc. Oh, and don't forget Apple tells us tomorrow that they implanted iPads in every newborn. 

I get the feeling by the time I get on my computer in the morning, those futures will be glowing green.

Mr Lennon Hendrix's picture

"Oh, and don't forget Apple tells us tomorrow that they implanted iPads in every newborn."

Harry, I am giving you quote of the day.  Congrats.

cossack55's picture

OK, you.  What have you done with the real HW and when can we expect his return.  We will meet your demands of a HP 286 processor and a rotary telephone. 

Mr Lennon Hendrix's picture

I kinda like the new Harry.  He is all sarcastic and dire like the rest of us now, but he still thinks the markets are going up. Classic!

akak's picture

HarryWanger 2.0 is SO much more interesting than the original version!

I just may have to re-evaluate my opinion of you, Harry.  Might ZeroHedgeitis have finally claimed its ultimate victim?

ColonelCooper's picture

Not yet.  Harry down, Leo to go.

Cognitive Dissonance's picture

"Not yet.  Harry down, Leo to go."


Made me really laugh out loud. But we need to wait a full 30 days to make sure Harry's conditioning has taken hold and is permanent. Leo's going to need electro-shock therapy. :>)

thisandthat's picture

Yes, but what about HW 3G - will he still blend?


nmewn's picture

The resident masochist.

MyFriendMises's picture

Harry,  after hearing true sarcasm in that post I just wanted to officially welome you to the darkside.

Turd Ferguson's picture

That may be the first HarryWanger post that I haven't "junked".

docj's picture

Oh, and don't forget Apple tells us tomorrow that they implanted iPads in every newborn.

Top Shelf, man!  That's some weapons-grade funny there.

Pity my PC crashed and I had to wait until morning for this reply.  Cheers -

reading's picture

I am sure they already have...they can just feel the need for it.


williambanzai7's picture

I thought Rule 48 is now in perpetual effect. You need to look for the daily Rule 48 suspension notice.

Ragnar D's picture

It's replaced by Rule 12,000, which states "DOW shalt be 12,000".


Next will come Rule 4%, a "circuit breaker" for unemployment rates.

And Rule 50,000 to replace the minimum wage.


As far as silly things like "liquidity", it'll be like the milk/bread/egg signs in old Soviet states:  "There is no demand for capital or retirement funds today."

Oh regional Indian's picture

I had a dream some years ago.

One of the lucid ones. Clear as day.

Look for the day the dow closes at 1241.

After that day, alllllllll downhill.

Can they get it up to there from here?

Youuuuuuuuu betcha!

Arkadaba's picture

They haven't done it yet ;)

Duke of Doubt's picture

This article is still not showing up on the Der Spiegel web site.  Anyone able to access an English language version of this report?

ratava's picture

europe needs to kick greece out and establish transaction tax. i got a gut feeling France is blocking both.

Ragnar D's picture

They already have a transaction tax; it's called the 20% VAT.


Working great so far...

thisandthat's picture

Funny is, it's called value added tax, but isn't actually on the added value at each step in the production/market chain, but on the whole value every time.

Sneeve's picture

...which amounts to exactly the same thing

thisandthat's picture

Dumb comment - disregard.

Muir's picture

also from Der Spiegel

"Europe is eager to begin paying down sovereign debt. The US wants to see Germany and France continue stimulus measures. With Treasury Secretary Timothy Geithner in Germany on Thursday, the trans-Atlantic differences in fiscal policy have become difficult to ignore.",1518,698926,00.html



This is a cluster*uck for Geithner.

I see a down week for the DOW


zen0's picture

Merkel has a strap-on, and she's not afraid to use it?

Translational Lift's picture

Stock up on toilet pressure washer.....Shit hits the fan tomorrow....

Mr Lennon Hendrix's picture

My friend went to DC and all I got was this lousy poop stain.

Augustus's picture

Quit using Barney's butt plug 24 hrs a day.  Maybe the injury will heal.  Surgical repair may be required in some cases of excess.

Translational Lift's picture


Asia down 2-3% ..........

Amsterdammer's picture

The German Constitutional Court did not veto bailout 1.0

( Greece ) I see very little reason they would veto

Bailout 2.0.

Your Spiegel quote refers to Tiny Tim's visit to

Scháuble, where they locked horns, Germany

has been hassled for months, and most publicly

by the French Finance minister about their surplus

-country status, they are not about

to be down on that one. Germany has of late

created 160 000 jobs in the past two months.

Headlines in the Handelsblatt Saturday were:

Geithner: Forget American Demand