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German Professors Prepare Court Challenge For Greek Aid

Tyler Durden's picture





 

As was widely expected, four German professors are preparing to ask for a constitutional court injunction to block the transfer of German funds, claiming the EU-IMF rescue for Greece violates the "no-bail-out" clause of the EU Treaties. Furthermore, as the Telegraph reports, this is occurring "as fresh details emerge on the scale of the bailout - "Germany's Handelsbatt cited sources in Berlin warning that the bill may be three times as high as thought, pushing the EU share to €90bn (£79bn) - with an extra €15bn from the IMF." We are confident that the US-controlled IMF will have no problems with taking on the entire load of the bailout package, thereby forcing Americans to be the only party responsible for making sure European creditors are made whole, but that the next target of currency debasement becomes, once again, the dollar. Cause after all, there is that little bit about the several trillion in toxic CRE debt that has to be inflated away before 2012.

From the Telegraph:

The brief respite on Greek debt markets has already given way to fresh capital flight. Yields on 10-year Greek bonds surged yesterday to 7.11pc, higher than a week ago. Portuguese bonds began to wobble after Brussels called for more austerity.

The legal challenge has far-reaching implications. It threatens to cloud the issue for weeks or months and may ultimately force Berlin to withdraw support, raising the risk of wider systemic crisis in Southern Europe.

Dr Karl Albrecht Schachtschneider, law professor at Nuremberg and author of the complaint, told The Daily Telegraph that he will be ready to file within days and will ask the court for an expedited procedure. A ruling could occur within a week, but may take as long as six months.

The complaint will argue that the rescue contains an illegal rate subsidy, threatens monetary stability as encoded in the Maastricht Treaty, and breaches the 'no bail-out' clause. Greece is clearly responsible for its own mess.

If only the US had even one "professor" who had the guts to do what Germany is doing, it might have given some hope that the US would not default at some point in the next 5 years. Alas, with a completely indoctrinated and "captured" educational core, and with ongoing monthly debt issuance that boggles the mind, which in turn makes sure that "London based bond purchasing centers" have full direct access to Fed money, and are preferential bidders for every single future bond auction to make sure that bond rates never again go past 5%, while there still may be hope for Germany, which is doing all the right things, the US has taken the other side of that trade, and will stop at nothing to destroy the fabric of its own society once the debt load become untenable.

 


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Thu, 04/15/2010 - 11:05 | Link to Comment meagain
meagain's picture

TD, Dude, what about Rattner?

Thu, 04/15/2010 - 11:15 | Link to Comment sheeple
sheeple's picture

and are preferential bidders for every single future bond auction to make sure that bond rates never again go past 5%

Bidders: Our pensions

 

Thu, 04/15/2010 - 11:18 | Link to Comment bugs_
bugs_'s picture

An odd thing about tenure.  It seems to increase aversion to risk.

Quite the paradox.

 

Thu, 04/15/2010 - 11:19 | Link to Comment hamurobby
hamurobby's picture

Germany knows if they bail them out, more wolves will be at the door, and there will be little hope of the Euro becoming the reserve currency. They are simply buying time to get their house in order, oh, just like over here.

Thu, 04/15/2010 - 11:52 | Link to Comment alt-shift-x
alt-shift-x's picture

Yes correct we do know that the other wolves will be at the door, and that really upsets quite a number of people over here but apart from that this is almost standard procedure here in germany when the goverment makes extremely unpopular moves and the german public is not very keen in wasting tax money in greece. I think the average american is also not very happy to have their share of the bill via the IMF but does mainstreet even know or care in the US, do they know what the IMF is? I bet that noone here would care if  the IMF had handled the situation alone but since we are supposed to bail them out with 8billion directly everybody is up in arms about it.

Thu, 04/15/2010 - 12:21 | Link to Comment ZackAttack
ZackAttack's picture

How much popular opposition is there in Germany?

 

Would it tip the vote against Merkel, do you think? 

Thu, 04/15/2010 - 15:45 | Link to Comment alt-shift-x
alt-shift-x's picture

It´s just regional elections in NRW in May (even though it´s one of the bigger states), and as much as i´d love to see her stumble i don´t think it´s going to happen, the opposition here is not that strong and the constellations among the opposition parties are difficult. And even though there is much popular opposition, the CDU (Merkels party) has still very mighty media outlets on her side brainwashing the average Joe. Even if Greece issues their plea for help before the elections wich i suppose they will do Update: according to this http://www.guardian.co.uk/business/2010/apr/15/greece-imf-rescue1 they just did. In the end they might lose some points and if we´re lucky they have to form a new coalition, but i think they stay in power,  it will be very close but it would really surprise me if the SPD, the green party and the left party would form a coalition and could gather more votes than any other constellation involving Merkels Party. You see we got more than just 2 Parties it´s not that easy to predict over here.

Thu, 04/15/2010 - 11:36 | Link to Comment Hatshepsut7
Hatshepsut7's picture

Oh Herr, lass Hirn regnen.......

or loosely translated:  Lord, let it rain brain

;-)

Thu, 04/15/2010 - 11:47 | Link to Comment kaiserhoff
kaiserhoff's picture

Too soon ve get oldt, und too late ve get schmart!

Thu, 04/15/2010 - 11:57 | Link to Comment Double down
Double down's picture

Someone is soon going to ask why there are other currencies than the dollar?  Just for show?

Thu, 04/15/2010 - 15:29 | Link to Comment dark pools of soros
dark pools of soros's picture

they are usually prettier

Thu, 04/15/2010 - 12:19 | Link to Comment Cursive
Cursive's picture

If only the US had even one "professor" who had the guts to do what Germany is doing, it might have given some hope that the US would not default at some point in the next 5 years.

Amen to that, TD. We really need more activism.

http://www.swarmusa.com/vb4/

Thu, 04/15/2010 - 13:30 | Link to Comment The Professor
The Professor's picture

I have the guts, but the IMF won't listen!

Thu, 04/15/2010 - 12:46 | Link to Comment Kataphraktos
Kataphraktos's picture

WARNING: sound file automatically starts at this link:

 

http://www.moviewavs.com/php/sounds/?id=bst&media=MP3S&type=TV_Shows&mov...

 

Montgomery Burns said it best.

 

 

Thu, 04/15/2010 - 12:47 | Link to Comment Missing_Link
Missing_Link's picture

If only the US had even one "professor" who had the guts to do what Germany is doing, it might have given some hope that the US would not default at some point in the next 5 years. Alas, with a completely indoctrinated and "captured" educational core,

Truer words were never spoken.

Thu, 04/15/2010 - 15:37 | Link to Comment dark pools of soros
dark pools of soros's picture

Ms Warren is a professor that raises this stink but i guess there is no formal process that goes anywhere for protests in this country anymore..

 

but we can vote to legalize weed soon!!!

Thu, 04/15/2010 - 13:22 | Link to Comment theworldisnotenough
theworldisnotenough's picture

The EU is culturally incompatible. Germany has a cultural character of highly efficient technocrats. Greece, culturally are lazy socialist slobs. The two cannot share a central bank. Either Germany leaves or Greece leaves. The EU can survive without Greece it cannot without Germany.

 The only way the EU survives is if Greece defaults then goes into a tailspin. This will serve as a cautionary tale to the rest of the PIIGS and they will figure it out. Better that than the political unrest and crushing poverty of Greece returning to the drachma...

Thu, 04/15/2010 - 13:37 | Link to Comment Terminal Frost
Terminal Frost's picture

If only the US had even one "professor" who had the guts to do what Germany is doing, it might have given some hope that the US would not default at some point in the next 5 years. Alas, with a completely indoctrinated and "captured" educational core, and with ongoing monthly debt issuance that boggles the mind, which in turn makes sure that "London based bond purchasing centers" have full direct access to Fed money, and are preferential bidders for every single future bond auction to make sure that bond rates never again go past 5%, while there still may be hope for Germany, which is doing all the right things, the US has taken the other side of that trade, and will stop at nothing to destroy the fabric of its own society once the debt load become untenable.

 

This.

Thu, 04/15/2010 - 15:01 | Link to Comment carbonmutant
carbonmutant's picture

Then there's the part where some countries may not be able to afford their portion of the bailout and may have to borrow from...

Thu, 04/15/2010 - 15:34 | Link to Comment dark pools of soros
dark pools of soros's picture

look - all the central banks want to put the world in hock so screw it.. let them.. run it up to the bagillions - then what?  no one work anymore since it is pointless?  they going to round up and shoot everyone?  if so, so what? the bankers will die in a few years after that since they can't do anything constructive themselves

 

so let the dollar be the second coming of Christ and it will die for all our debt sins and then free us all

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