This page has been archived and commenting is disabled.
Sarkozy Threatens To Pull France Out Of Euro
If you were wondering why the market is spooked by rumors that Germany may be returning to the DM, here is actual fact that French President is on the verge of reinstating the franc. And with that, the euro is nothing more than a political toy for Merkel, Sarkozy and whoever the current non-indicted head of the Italian government is, to achieve their political goals. The currency is now dead. Parity coming within a few weeks.
From The Guardian:
The markets were initially unsettled by news that the French
president had threatened to pull France out of the eurozone. The
startling threat was made at a Brussels summit of EU leaders last
Friday, at which the deal to bail out Greece was agreed. according to a report in El País newspaper quoting Spanish Prime Minister José Luis Rodríguez Zapatero.Zapatero
revealed details of the French threat at a closed-doors meeting of
leaders from his Spanish socialist party on Wednesday.Sarkozy
demanded "a compromise from everyone to support Greece ... or France
would reconsider its position in the euro," according to one source
cited by El País."Sarkozy went as far as banging his fist on the
table and threatening to leave the euro," said one unnamed Socialist
leader who was at the meeting with Zapatero. "That obliged Angela
Merkel to bend and reach an agreement."A different source who
was at the meeting with Zapatero told El País that "France, Italy and
Spain formed a common front against German and Sarkozy threatened
Merkel with a break in the traditional Franco-German axis."El
País also quotes Sarkozy as having said, according to another of those
who met Zapatero, that "if at time like this, with all that is
happening, Europe is not capable of a united response, then the euro
makes no sense".
Well, an epiphany 10 years late is still better than no epiphany. And, of course as many will say, he who panics first, just may salvage something. Which for most American citizens still infatuated with their currency, may mean very bad news.
»
- 15603 reads
- Printer-friendly version
- Send to friend
- advertisements -
R.I.P.
Good riddance.
It isn't, and it doesn't. Hasta la vista, baby.
And let this be a lesson to anyone hoping for an IMF world currency.
+1, there is only one world currency , Its GOLD
and never a truer word was spoke...
Can't you just see Bove and Cramer saying, "Buy the dips!!!".
They are dips.
++++++++
+1 lol...been sayin' that for years.
I'm a bit confused. What would be the difference between Gold and any other 'World Currency'? What would prevent the Bernankes from turning the (figurative) tungsten injectors on and off?
Well, I am afraid that a total collapse in the EUR will be used in the propaganda in favor of a one world currency. Something like: The only way to stem the powerful flood of speculative liquidity.
http://www.imf.org/external/np/speeches/2010/051110.htm
The reserves are apparently not big enough. And here I thought that it was too much printing and fractional reserve money, that was the problem....
And please note: We do not need to put on the tinfoil hat anymore with regards to the One World Currency anymore. He talks about it openly now.
But what do I know. I am just a simpleton..... And bloody fed up with that, I might add. But it sure feels like to me that a public relations gameplan is being executed. No news outlet picked up on the German rumor for two days, and now this is leaked several days after the meeting, and several news outlets quote it at once. There is also only one source to this story, it seems.
Good points. However, the dissension btetween the euro participants magnifies the distortion in parity among the various nations with Greece and PIIGS at one end and Germany at the other. Germany and France might not be interested in a world currency if you asked them now.
Exactly. And the only reason I paid attention to the German rumor in the first place, is because it actually makes sense to me. The EU is in a terrible jam. It will be next to impossible to succeed with austerity meassures, when the cost of servicing debts keep going up due to market reaction.
If they let Germany out of the EUR for a while, the weaker sovereigns might have a chance to improve their fiscal situation, if they really want to. It might be the only way to save the union, for those who want that. If they stay together, the internal differences/distortions would probably not be possible to overcome without a QE to Weimar scenario. And last week proved that bailout announcements are very shortlived these days. That tool may be jammed for good, and Germany is a scorched child, when it comes to QE.
I do not think that Germany will go back on that path ever again. No matter what the consequences. That is why, I was utterly shocked by the bailout announcement last week.
if there's this much squabbling between the Euro's, imagine what it would be like when you add the Russians, the Indians, the Chinese & the Latins into the mix. not to mention the Arabs & the Israelis & the Africans.
a global clusterfrack just like the climate conference.
True That.
World currency has always been an unrealistic dream of the oligarks.
When the chips are down, nationalism kicks in big time.
As we will now see unfold over the summer.
Not even the Man From U.N.C.L.E. can stop what is coming for Europe.
++++
Well said, Illya.
France is true to form. Above all else, run like cowards.
Seriously, the center stripe on the French flag should be painted yellow.
Bottom line, WHO want's to get caught w/worthless currencies?
Last man out is screwed...................that's why folks are heading to PM's......
Countries are no different.
The Bought & Paid for Media, will be a humorous thing to watch, as they fumble for words, and EXCUSES.
http://www.telegraph.co.uk/news/uknews/crime/7714809/500-euro-notes-with...
500 euro notes withdrawn over organised crime fearsThe decision to end trading was made after police found nine out of every 10 of the notes in circulation are linked to crime, tax evasion and terrorism.
I originally planed to cover @ around 1.25. But, I was asleep when it blew threw that. Now, I'm not going to cover. Not this week at least.
Hmmm. Makes one wonder then how the Germany rumors got started?
My thoughts precisely, my dear doctor.
... how the Germany rumors got started?
You don't read AEP.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7591027...
"This court hearing is going to be very dangerous," said Hans Redeker, currency chief at BNP Paribas. "It could lead to Germany itself being catapulted out of the currency union. Once investors begin to fear this, there will not be single euro in further financing for the EMU periphery."
What I read in one of his pieces is that the constitutional challenge, since filed in Germany, opposing the Greek bailout has Germany leaving the Euro as one of it's possible outcomes/remedies.
Maybe if we search more on the court challenge or someone reads German papers, we could see more about the details and likely prospects for the case.
ditto - ZH Best site on the net, bar none.
Got it. Read this from 15 April
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100004933/gr...
If the professors wait, they may think they can strike a knock-out blow by arguing that Europe’s monetary union is damaging monetary stability and has therefore become an illegal undertaking in which Germany can no longer participate.
The challenge has been made to the Verfassungsgericht [Supremem Court] and the claim re. damaging monetary stability is part of the claim after the ECB agreed to accept junk.
Bringing it:
Excellent post. The human animal hasn't changed, during my lifetime at least, and so history does repeat in different types of circumstances influenced by conditions that prevail. Ambrose Evans Prichard is a truly significant columnist.
Thanks hb. I do what I can.
Tyler..talking your book but Man who can bet against that short?
ZH Best site on the net, bar none.
Keep the Kevlar vest on and have Marla test all your food and drink..LOL
delete LOL. only the paranoid survive...
he was just faking it. this story happened last friday and he got what he wanted, so i dont see how its relevant today, unless some country would pull out of the "gift to greece"
French negotiating tools - nothing to see here....
A prelude to war? I'm not getting a kumbaya warm and fuzzy feeling about all this.
Oh, please. Sarkozy was only protecting the French banks. Just normal French behaviour, protecting national interests before common EU interests (as with the "common" agriculture policy). Nothing new here, move along.
Your post is true, but protecting national interests before the common EU is not just a French game, and therein lies the real reason that One Europe is doomed.
Very true.
However, let's not forget Germany is also exposed to the Greece/Southern Europe lending fiasco.
And leaving the Eurozone would be just as bad for France as it would be for Germany.
We'll see. Whether this was grandstanding from Sarkozy in this particular instance is moot point. No shit he is protecting French banks, but you need to look at the bigger picture.
Merkel is a goner.
Yeah, she got played on the international stage of political bufoonery.
I'm not sure the logic of "saving the Euro" by extending a trillion more Euros in credit to countries that won't pay you back. The German people figured that one out in a matter of hours.
And Sarkozy got to protect his French backs by making hallowed threats.
There was no way France was going to leave the Eurozone, or ditch the Euro.
The trillion dollars will go to the banks that hold greek debt, but only if the situation gets worse. The EU put new money on the table, and the banks now want that money.
How can it get better? Lots of austerity needed in a whole lot of places.
The French banks are highly levered to sovereign failures in Spain and Italy. Sarkozy played a weak hand very well. Merkel had the best cards in the whole group, and folded on a weak bluff.
DOH!
Well, actually we will not know if she folded or called until her rumored speech to the nation this evening.
Well... yes and no.
Yes, in the sense that her upcoming speech to the nation could come in at a real curveball and shock the rest of the EU. On that end, I guess that anything is possible.
No, in the sense that she-- even if symbolically-- commited German resources to a bailout of weaker PIIGS nations (well, banks actually) before a regional election. Not good.
Absolutely agree. It was a bad move. It only makes sense to me if the funds were actually allocated to support the EUR after a breakout announcement. We'll know soon enough.
But what if Merkel pulls Germany out of the Euro now and was to announce this today?
Sarko played the better hand.
I would suit the French system/banks to have their Debts in Euro's while the New "Franc" is pegged 3.25nFRF to 1 Euro ( 50% of 1999 fixed parity of 1 EUR=6.55957 FRF)
Wasn't there some chart on here somewhere that showed how much of the PIIGS debt that each of France, Germany, UK and US had? Is this whole thing just going to be an AIG for all the banks holding the PIIGS debt?
This ... ?
http://paul.kedrosky.com/archives/2010/05/the_case_for_a.html
As a side note, this is my wallpaper at work right now, however I used MSPaint to caption the chart "Reservior Dogs".
Cooter
I get it.
that one does not include U.S. exposure. you're a sly one, Ms. Grey Lady NYT.
Clowns to the left of me,
Jokers to the right,
(You know the rest)
Stuck in the middle with Velobabe!
Yes. But I am interested in the US too. I thought I read somewhere that GS and JP Morgan and maybe even Morgan Stanley have PIIGS debt exposure. Intersting and thanks for the link. I could not remember where I saw it but I thought it was here. Or maybe even Doug Casey.
Exactly....
excellent point. I could not believe it when the Euro came to be 10 yrs ago....there was supposed to be political union quickly following the launch. Then it took years to figure out the wording of the first sentence of the New Constitution....then I forget what happened!
THE SINKING OF THE EURO:
http://williambanzai7.blogspot.com/2010/05/sinking-of-euro.html
It is amazing how everything has unraveled in slow-mo...
THE EMPEROR BEFORE EURO-LOO (REPOST):
http://williambanzai7.blogspot.com/2010/05/emperor-before-euro-loo.html
Good riddance, croq "of shi**" monsieur.
I like the part about banging his fist.
I often do that at the dinner table when I am trying to make a serious point to my spouse. It always works...
...wait till he stomps his feet
It wasn't long ago that the euro was trading 1.50 and the world was complaining about having so many reserves in USD. Time to stock up on canned food ladies and gents
I think that time was about two years ago, do you mean time to add to supplies.
Oh come on. Sarkozy is the neocon agent responsible for submitting France to Nato common command structure. Since he would never bite the hand that fed him his whole career, this statement can only be a populist decoy.
Pasqua, the Golden Triangle - Ajaccio Connection (yes, the original French Connection), Crif, CIA, and Mossad would be concerned if Sarko went native. Just saying...
++
They're on eurodollars now anyway. Not much to abandon
The Litmus test for the Patriotism of a French President is the number of assassination attempts.
De Gaulle 20 or so
Chirac 1
Sarkozy 0
+100 Krugerrand to you, Sir. Definitely the finest Dork in Cork.
Thanks Anton , when can I expect delivery ?
Send me you address in green Ireland. I have some tungsten I have been trying to get rid of for a long time now... <evil laugh>
Uh, I meant, Gold! Yes, uh, gold! That's right, I have gold Krugerrands I have been trying to get rid of for the longest time now... Just the perfect gift for a nice Irish bloke such as you. But you'll have to pay the cost of shipping. Insuring these little things is getting more and more expensive all the time (can't even begin to guess why)...
Send me you address in green Ireland. I have some tungsten I have been trying to get rid of for a long time now... <evil laugh>
Uh, I meant, Gold! Yes, uh, gold! That's right, I have gold Krugerrands I have been trying to get rid of for the longest time now... Just the perfect gift for a nice Irish bloke such as you. But you'll have to pay the cost of shipping. Insuring these little things is getting more and more expensive all the time (can't even begin to guess why)...
It's still early for Sarkozy...
oui, he might have to fake one to regain some street cred
I would say "Au Revoir" but that means "see you again" and doesn't apply to the Euro fiat heap.
Then say "adieu." That one is forever!
audios
disclaimer: my vanity plates
Must be a carrott of traffic for pushing out articles like that.
More or less established facts:
-France pushing hard for deeper EU integration, the next stage being fiscal integration. One that could not get through by popular consent (elections)
-Mrs.Merkel in a mess with election terms. German financial minister on bench due to illness
-UK Government in disarray with delicate negotiations between incompatible political parties.
Spells of a nice opportunity. Mr.Sarkozy simply pushed harder not to miss a coincidental opportunity not to rise soon again.
On the contrary, this speaks against the demise of Euro as one weakness revealed by the crisis is lack of common fiscal policy to back up the currency.
Mr. Zapatero simply covered his ass. He is about to force on his people harsh measures happening in harsh times (high unemployment, banks owning the country) Worst in the story is that is only the beginning. Aligning on a common fiscal policy will bring even more pain on Spain.
Spanish have a beef on French since Napoleonic wars. M. Zapatero has found a convenient scapegoat to explain his own political choices.
Interesting take.
ZH is starting to lose it. El Pais is a Socialist newspaper.
So this is spinning at its finest. With the "harsh" austerity measures suggested by a socialist government in Spain the Machiavellians needed to find and external "threat" to unite the Spanish unions. The demise of Euro and Sarkozy (who is not Socialist) was an easy target.
Dont get too much over-excited, kids. This is the Sarkozy´s way of doing politics. Strong words, and no action.
Speak loudly and carry no stick? Not sure I'll adopt those methods. Sounds like a good way to get beat down.
If only...
It warms my heart that some Europeans are willing to put their own sovereignty before their leaders NWO designs. Now, if only we could get the few remaining solvent US states to do the same thing as per the Califorinois bailout, that would be real progress and give me hope in my future. Viva la revolucion!
tptb knew what they were doing with the euro and it's outcome.. before they implemented it
-
they are probably fomenting/inciting and profiting heavily from speculation
r
As a french guy : as proud I can feel of LaFayette As I feel ashamed of Sarkozy
Pure political posturing. It may come to that (breakup of the EU) but it won't be the result of an angry walkout because in Europe's past that has led to war. No one benefits by fighting.
lets just send them more paper money and they can all work for the governments where they live. it works in canada.
Fortunately there is no chance in hell the Euro is gone. All the bureaucrats and politicians love it, including Merkel and Sarkozy. The end of the Euro would be the end of the ECB and the ECB will not stand by and watch itself unravel. They will do anything to prevent the EU from falling apart.
The ECB will buy debt on the sly, without restraint, while the politicians aim for fiscal EU unity. Everything else is just posturing.
Brussel is every politician's dream institution. Long after you have been spat out by your people, like Blair, you can still come back. Brussel is Disney Land for any politician. You are accountable for nothing. You have to worry about nothing, voters, income, taxes, expenditures. You are amongst your own.
No, I am sorry to say, it will not be this easy.
I meant to say "Unfortunately"
@streaker, you can edit your own posts in ZH as long as no one has replied to it, which is true in your OP.
Next time Sarkozy will have to whip it out in front of Merkel to save the Euro.
Berlin denies Sarkozy threatened to quit euro
Sarkozy, Merkel, Zapatero Deny El Pais Report on Euro Threat
and in other news:
Bruni-Sarkozy denies rumours of infidelity
Sarkozy denies Mexico is a 'failed state'
French First Lady Carla Bruni-Sarkozy Denies She Had '30 Lovers'
Sarkozy denies corruption
Thank you, kind sir. That was much-needed comic relief.
I don't think France is going anywhere just yet as the bailout was announced after Sarkozy's little temper tantrum (its just so French to jabber like a poodle).
Give it a couple of years to ferment, then serve.
A view from Europe: the last sentence belongs
to Zapatero, Mr 'le petit' Sarkozy is a regular with
his fits: irrupting first in an Ecofin meeting in Brussels
to declare that his country would not respect the
Maastricht's Stability and Growth pact, later threatening
not to go to the meeting,the only front he can intend
to form against Germany is with Italy, never forget
Zapatero is a socialist and that Spain holds the
rotating Presidency of the UE this semester, and
probably lost all popular support following the
'adjustment'measures he announced on Wednesday, he broke
his own book, we wish Sarkozy had one
http://www.elpais.com/articulo/espana/Zapatero/Sarkozy/amenazo/salirse/e...
So who should we expect to wave the white flag on the Euro first?
WOW! That was one hell of a powerful boost for 1 trillion. A whole 4 trading days.
Nick is so dumb he is breaking out his gigi and if he doesn't get his way he will slam it in the sliding patio door and then step on it with golf shoes.
Yep, $1 trillion doesn't get you as many "sell-into-strength to the dumb money" days as it used to.
LOL, a frenchy's temper tantrum does not a pullout make. It was merely negotiating tactic...a "fist bang" on a table...oooh, The Donald should learn something.
Angela & Nick .. Not quite Luke & Laura
http://www.youtube.com/watch?v=oLAxnneKXdA
Only we old farts understand the depths of Luke and Laura. Try something Twilight.
Didn't quite make it to twilight
http://www.youtube.com/watch?v=tHQavzzQxzQ
Viva la France! If the French and Germans had any sense they would drop the EUR like a bad habit.
The comment that this would lead us to a one world currency is very scary. The powers who want the "one world model" are already causing chaos in the Western World suffering the most as globalization causes our wages to decrease so others may rise.
WE ARE NOT ALL EQUAL - Stop trying to make us all wear size 7 shoes!
"Oui.... how you say .... You must bail out our banques on all these loans we made to Greece. We did not know the Greek government was fudging their numbers faster than the rest of us! So print more money for the Greeks to pay us! Else we don't want to play with these euros anymore."
The Euro is far from finished. The Germans come out of this crisis with lower Bund rates and cheaper Euro-based exports. What exactly have they lost?
The demand weakness in peripheral Europe would be present in any case. The Euro bottomed at 82cents a long time ago. We may see it again, but it's not going away.
Meanwhile, Estonia is trying to join up. They must figure that they can finance more cheaply from inside the EU. And, of course, they are scared of the Russians as is all of Eastern Europe except Serbia. This is, after all, a political exercise too.
The Elites love this because it requires more "central co-ordination": a euphemism for less freedom and more Ministers.
Precisely.
Germans (and, up to a certain point, French) corporations may not like having to spend a lot of money to prop up Southern Europe... But, by heck, they will loooooooooooooooove a cheaper Euro. As a matter of fact, I am fairly sure this was the carrot promised to industrialists everywhere.
Merkel: Wait a minute. Who elected you leader of this outfit?
Sarkozy: Well Angela, I figured it should be the one with the capacity for abstract thought. But if that ain't the consensus view, then hell, let's put it to a vote.
Merkel: Suits me. I'm voting for yours truly.
Sarkozy: Well I'm voting for yours truly too.
Zapatero: Okay... I'm with you fellas.
+1000. Didn't even need to resist. They will immolate themselves.
1.16 on EUR/USD and I will start buy EUR again. We will get to 1.36 after this panic is over.
i believe this could lend support to the deutschmark rumour.
historically germans do not like to be "forced" into anything by france, and as a previous poster said, angela merkel is in political trouble.
the deutschmark would remove the threat, improve merkel's reputation amoung her own people, and give germany an operational currency based on pm.
they wouldn't even have to abandon the euro at this time. only have the pm system up and operational, giving their entire country a head-start if the fiat-currency systems collapse.
Then again, if you add the Gold holdings of France, Germany, and Italy (as well as smaller holdings from other European nations), you have pretty much the biggest stash of Gold in the world. Heck, even Greece has got quite a sizable Gold reserve!
So, instead of dropping the Euro and reverting to the DM, they could just announce that it would be based, from now on, on a fixed number of ounces per Euro, with the price calculated on the basis of the pooled gold reserves of all the nations in the Eurozone.
That would do three things in one swell swoop: (a) save the Eurozone, (b) raise the price of gold AT LEAST 100fold (US$ 5,000/oz would be CHEAP) and (c) destroy once and for all the US$. EVERYONE and their moms would flock to the Euro as THE reserve currency in the world.
But... here is the kicker: chance of this happening? Zero. Because most of Germany's reserves are held in escrow at... Wait for it... The Federal Reserve Bank of New York. Oooops. Good luck getting physical delivery. At least France and Italy had the good sense of keeping (most of) their gold reserves within their national territories.
Actually, U.S. has WAAay more gold than.... Wait, what's that? We what? We don't? It What???? Nevermind.
I would have called his bluff, euro will die anyway, what difference now or later?
So SELL gold.
The JPM and GS capping of gold at 1250 is so patently obvious that it makes me want to barf. What a fckng joke.
there will be a resurrection moment for the euro, but the end will come
http://www.youtube.com/watch?v=AaSlq0gCH0Q
Market is screaming for more QE from Bennie. Dollar crushing everything means its time for Bennie to try QE2. Hell its been almost a month since QE1 ended. High time.
Sarkosy was bluffing....no story here. This kind of shit happens all the time when leaders get together.
Sowing the seeds of war...
An increasingly resentful German populace, already tainted by East German nationalism, will be in a conquering mood not too many years from now, me-thinks. History rhymes, as they say. Post WWI and Weimar, these people had finally had enough. Couldn't earn a living anymore; hyperinflation, caused by onerous debt payments for "war reparations," for a conflict caused by corrupt politicians. Lots of hatred focused on France and its allies then and soon again.
Beware Teutonic retribution. Those guys are some mean muzzaf*ckas when they're pissed off. And when they get the tab for bailing out Greece, Portugal and Spain (a.k.a. the big banks in France, Germany, etc.), the people will not be happy. Add a little more unemployment, a little more government corruption and a small, moustachioed dictator-type, and voila...
Prediction: EU unravels within 2 years. War within 3.
Gold is NOT the ultimate safe asset. It is the opposite. It is the tail end of the risk spectrum. Once Bonds and Equities get squeezed up as high as possiible. Then Oil. Last Gold. On the way down Gold goes down first then everything else. It seems obvious.
dooop 1.2413....1.2408...1.2403...this is like watching a building collapse in slow motion..
Ohhh 1.2389...free fall
This is no longer just EUR weakness. It is Dollar strength against EVERYTHING.
You, sir, are correct!
Deflation, deflation, deflation. Credit: created from nothing and returned back to nothing.
or not.
Once the EUR is gone, which debt ridden FIAT d'ya think will get turned on next, hmmm?
Enjoy your death throes, dying gasps, last breaths, famous last words, death rattles, and piss shivers while they last, pfool, 'cuz they won't.
Regards
Are any of the so called intelligensia starting to see a problem with the endless PRINTING of worthless money??? Dumb shits.
Would this imply they were phucking it? Is it premature withdrawal? Coitus interruptus? Were they wearing protection? Does he know the Euro has a social disease and that the wet wang is enough for contagion to spread?
Most probably the Euro will become a relic when the western european countries exit from it -- but it could remain the common currency for eastern european countries.
As a tinfoil alternative, if the countries do not exit from the euro-->there is always a chance to UNITE EUROPE under one central, federal government. It may be the only why they can survive: centralized rule (along with centralized currency and monetary policy). Of course, a civil war would soon follow. But would Zee Germans again be the agressor.
Depends if the Germans joined with Denmark, potentially the BeneLux nations, Finland, Sweden, Norway and Switzerland in using the Swiss currency and banking model to launch a confederation from. This would be a most interesting dynamic and would leave France with the "diplomatic victory" of realizing its dreams of establishing a Franco centric pan Mediterranean compact under the auspicies of an expansion of the EU.
We'll see. dynamic times as the political & power structures and expectation once more get a realignment.
http://www.youtube.com/watch?v=T8Oi50Qdh6o
This should tell everybody that the monster that we in America and Europe that thought was slain was us only cutting off it's pinky. The rest of the beast is so large that we couldn't see it and it's awake now to do its fiscal damage. The govt. of the world are going crazy and everybody is trying to keep an everything is fine mentality to the economy when it's not. I believe French banks are out alot of money to much of the PIIGS and eastern Europe, more so than Germany. What Germany was afraid of is that they would be essentially black balled by the rest of western Europe for taking the EU down and so instead of being blamed for something in Europe they didn't do this time, they decided to go along against most of their country.
The Western banking system is just delaying the inevitable, and many of them know it.