Germany Wants To Be Europe's Currency Tsar

Tyler Durden's picture

As all eyes and ears (and trigger fingers) are glued to the flashing red headlines from Europe's conditional unconditional OMT/credit-line/backstop/ESM malarkey and Spain's insistence that it doesn't need help yet just wonders what the rules are, Merkel stated - for absolute clarity once again - her views yesterday. As much as no-one wants to hear what the money-lady has to say - preferring instead to live in a world where promises work, FinMin Schaeuble clarified the need for a 'currency commissioner' with sweeping powers to strike down national budgets. This bombshell, as The Telegraph calls it, is really nothing of the sort; as Merkel has already made it clear that there's no money without sacrificing sovereignty. The directness of this statement though does raise questions over just what the ECB is for? Critically, dismissing Van Rompuy's spin that this is a step towards debt-pooling and euro-bills, Schaeuble made it clear that fiscal union meant "more power to police the affairs of debtor states." While the possibility remains of a precautionary line of credit, the Germans stated: "one thing is clear: whatever is requested, it won't be without conditions," and as Citi's Steve Englander noted "It's all down to haggling over the price now."


Via The Telegraph:

There must be an EU “currency commissioner” with sweeping powers to strike down national budgets; a “large step towards fiscal union”; and yet another EU treaty.


Finance minister Wolfgang Schaeuble dropped his bombshell in talks with German journalists on a flight from Asia, and apparently had the blessing of Angela Merkel, the chancellor. “When I put forward such proposals, you can take it as a given that the chancellor agrees,” he said.


Officials in Brussels reacted with horror. “If that is the demand, they are not going to get it. Nobody in the Council wants a new treaty right now,” said one EU diplomat.


“We’ve got the fiscal compact and quite enough fiscal discipline. Not even the Dutch want a commissioner telling them how to tax and spend,” he said.




The Schaeuble plan is highly provocative...


Mr Schaeuble poured scorn on counter-proposals by EU president Herman Van Rompuy, including a first step towards debt pooling through joint “eurobills”. The term “Fiskalunion” in Berlin has a specific meaning: more power to police the affairs of debtor states. It does not mean debt mutualisation or a joint EU treasury. Germany has so far refused to cross this Rubicon.


Michael Link, the country’s Europe minister, said Mr Van Rompuy’s plans are dead on arrival. “When you make proposals that are simply unacceptable for certain members, this will only give the impression of division. You can phrase it any way you like, 'treasury bills’, 'debt-redemption funds’ or 'eurobonds’, this type of debt issuance will not fly with our government. We have always said this very clearly.”




Michael Meister, Mrs Merkel’s key fixer in the Bundestag, told Bloomberg that German legislators might be open to the idea, “but one thing is clear: whatever is requested, it won’t be without conditions”.


Spain is quietly trying to find out what those terms might be. Demands for public-sector job cuts would set off a storm. “It’s all down to haggling over the price,” said Steven Englander from Citigroup.


Huw Pill, from Goldman Sachs, said Germany has, in fact, allowed “veiled” debt mutualisation through its share of €750bn (£607bn) of bail-out liabilities. Less visibly, it has let the ECB boost its balance sheet to 32pc of GDP, even before it embarks on “unlimited” purchases of Club Med bonds. This includes a €1 trillion lending blitz to banks, and more than €200bn of bond purchases.




It is precisely for this reason that Swiss rating agency I-CV stripped Germany of its AAA rating last month. “Germany has taken on contingent liabilities of €2 trillion. When you create these backstops, the money comes from somewhere and it can all go wrong,” said I-CV’s Rene Hermann.


Germany is in deeper than it likes to tell its own people.

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bigdumbnugly's picture

coming to a nation very near you?

GetZeeGold's picture



I'll take the money from Germany.......but I'm going to bitch like a mother while I'm taking it.


john39's picture

The German government is just being used as a strawman obscure the fact that global banking cabal is calling the shot...  just another puppet, focus on the real criminals.

GetZeeGold's picture



Dude.....they voted for the criminals....and I'm pretty sure they'll do it again.


Oh regional Indian's picture

Just a quick reminder to one and all, this is a NOBEL PEACE PRIZE AWARDEE we are discussing...

Hyuk, hyuk.... freeging farce I tell ya.

I did read once, somewhere that the EU was a Noble experiment.

Hyuk hyuk.....

Goddamned farce I tell ya.

Tin foil says the Protestants doth protest too much. October 31st, nailing day approaches.

Duck and cover.


Popo's picture

There will be two prices of course.   The first will be the publicized price -- used to sell it to the voters.   The second will be the "1 year later" price which will be agreed upon now, but slowly slid in front of the voters bit by bit.

How the German people haven't seen through Merkel's lies by now is beyond me.  

john39's picture

hmmm.... so, will the american people be responsible for Obama's crimes, or Romney's, when the only options provided are both criminals? 

new game's picture

GZG; she is the umpire, clarity!

GetZeeGold's picture



Are you really going to question Merkel's authority?


new game's picture

or to the locker room. competative juices say play ball!

seriously, she is thinking she is the dealer; this is getting interesting.

this game of chicken has many twists and turns; but many nations running on empty, so we going to get some real results soon.  show me the money!?

GetZeeGold's picture



she is thinking she is the dealer


She's paying the bartab.....if she wants to be the dealer.....I don't have a problem with it.


new game's picture

and keeping it flowin, mondays hangover brought fwd, tuesdays burger now im fuckin hungry...

TheMadNumismatist's picture

I have just started reading: “The European Collective” by Christopher Story, who ‘mysteriously’ dies last year.

Only a couple of pages into it, but looking forward to more. I have followed Story for years and now believe 100% he was correct about the Leninist takeover, but I wonder what he made of Merkel, and east German, running the show.

Stay tuned, I will be writing about this at some point.

Sheeple Shepard's picture

For E.U currency commissioner see Mein Fuhrer.

Cognitive Dissonance's picture

All your Wienerschnitzel are belong to us.

Dareconomics's picture

Germany's goal is to create a United States of Europe. They'll use this crisis to get the poorer countries to trade their sovereignty for money as in Greece:

Nussi34's picture

The German people want non of this. They do not want to tell the FPIIGS what to do.

The Germans want their own currency back and keep their money for themselves.

Maybe not many people know this, but in the German constitution there is an article that Germany can only be part of currency unions with stable (hard) currencies....

new game's picture

americans didn't want o care or hanks 700b bankster bailout-did that matter?

r u asuming democracy?


hedgeless_horseman's picture



The German people want non of this.

Read this book...

"What happened here was the gradual habituation of the people, little by little, to being governed by surprise; to receiving decisions deliberated in secret; to believing that the situation was so complicated that the government had to act on information which the people could not understand, or so dangerous that, even if the people could not understand it, it could not be released because of national security. And their sense of identification with Hitler, their trust in him, made it easier to widen this gap and reassured those who would otherwise have worried about it.


"This separation of government from people, this widening of the gap, took place so gradually and so insensibly, each step disguised (perhaps not even intentionally) as a temporary emergency measure or associated with true patriotic allegiance or with real social purposes. And all the crises and reforms (real reforms, too) so occupied the people that they did not see the slow motion underneath, of the whole process of government growing remoter and remoter.


PS:  I promise you will have a great time carrying around a bright red book with a swastika on it in public.  I know I did.

Cognitive Dissonance's picture

To which many (including many ZH'ers) would reply......."While that might be true for those people over there my eyes are wide open and I see clearly so it doesn't apply to me."

Thus the subterfuge continues out in the open and in broad daylight. Just because we "see" doesn't mean we comprehend. Part of the conditioning of the slave is convincing them they are powerless.

<Eyes wide shut.>

Dr. Engali's picture

There will never be a United States of Europe. Eventually people are going to get tired of this and fight for their identity. When the empire crumbles there will be no more United States of will be the balkanized states of north America similar to Europe now.

thomasincincy's picture

Where is the Nations Capital? lol

They have major cultural differences. Many different languages to start with... The German youth just might burn the country to the ground.

In America it's KFC and Taco Bell

Ghordius's picture

"There will never be a United States of Europe". Amen to that.

the goal of most europeans involved in this is to have a confederation. not to be confused with federation or union.

perhaps soon with new joiners: Flanders, Catalonia and Scotland. all three very keen on their identity and membership in the club(s)

interestingly, one of the reason the Germans have so much political clout (they should have smacked Gollum much harder, though) in this financial quandary is because in their federation, they have a lot of balancing of finances between the "Länder" States and the Federal Government. Lots of experience, so to say, in squaring the circle between the local and the central.

perhaps "political clout" is the wrong word, perhaps I should say admired governance model.

Dr. Engali, I'm not sure what you mean with "balkanized", btw. Usually the flak comes from the other direction...

Offthebeach's picture

And I thought us Americans were stupid for blood and treasure. The Germans are going to pay to have the pleasure of herding Greek cats? God they love their beatings! You couldn't pay me enough for those surly, who-stole-the-cream-from-my-coffee Greeks. Looks like the average German working shlub is going to "have to redouble efforts " for the new order. What's next, parachuting accountants in falshujager( sp? ) overalls into Cyprus?

kito's picture

tyler, wheres the breakdown on these very bullish housing numbers today???????????.................

CPL's picture

I love how the reality is the market lost every gain from yesterday over night and that isn't a fundamental anymore.


So it is bullish, a bullish repeat of a record skipping on the same part on the LP.

Cognitive Dissonance's picture

"So it is bullish, a bullish repeat of a record skipping on the same part on the LP."

A blast from the past that is strangely apropos today.

Mind control rule # 1: The conditioned mind thinks believes repetition (repetition repetition repetition) equals certainty and truth.

His master's voice

Mercury's picture

Can't say I blame them.

Basically they're saying:

"If we're to stay in the EU we want another job title besides sugar daddy".

THE DORK OF CORK's picture

Germany is not a wealthy country as its core domestic capital base is mostly gone now....... indeed its not a real country.

Its a quite extreme market state , not as extreme as Ireland but its close.

These German guys are using their Quislings in the other market states of Europe to sustain demand for their products.

The Irish position for example is worse then when Cuba was cut off from Soviet capital flows.

As it must suck domestic demand from its economy to buy the net capital negative consumer products of this very sick Soviet.

At least Cuba could get on with its own business to a large extent after the USSR fell - they were not demanding they buy fucking Ladas after 1990.


There is a axis of power developing between London financial interests and German financial / Industrial interests.....they wish to cut life support consumption from the PIig states so that these interests can continue their rape of Europe.

Their primary measure of "success" is domestic demand tanking in the PIigs so that they have more energy to waste on their products.


Montezuma's picture

Can you name some "real" countries, you are saying that peopel are not buying German products just because they actually make good products?

Can I hear more about this "axis of power"? I mean thats why UK is distancing itself from Europe? Saying no to any tax, any integration or no to even paying their fair share. Biggest freeloader of EU is UK.

Germany close to Ireland? GTFO. Do you know what Ireland is? (all the love to my buddies there, its a beautiful place), its a one call center the whole country. Pushed corporate taxrate so low that companies swarmed in with their skeleton crews and call centers, nothing else. When we add some banking crisiss and we get Ireland.

THE DORK OF CORK's picture


There are different circles of hell ..... the modern market state is the 9th circle of hell for sure.

A real country in my opinion is when the King produces fiat outside the banking system.

A nation state is somewhere in between these 2 extremes.

As for the UK it is in massive trade deficit to Germany (it also is biggest trade partner by a wide margin) which is in the interests of the elite withen that country.

The UK wishes to remain connected to the Rhine / Rhur industrial system no matter what it may say in Public.

But to do this it must waste the consumption of the PIiGs even if it destroys the UKs income which it is - it now values the real goods of Germany more then income.

This is very big news as in the past the UK always earned a income from the rest of the world.

However the real goods of Germany and core Europe such as Poland are very wasteful especially its car exports...this means others must be thrown off a monetary cliff so as to sustain this waste based entropy system.


Ireland is no longer a big German goods importer but it serves its role as a conduit for these absurd credit  / real trade flows like the other PIigs.

These PIigs are essentially capital conduits for the China /UK ,US trade        Germany / UK ,US Trade.


The UK August monthly trade balance figures are quite extraordinary.

They show possibly a record negative monthly trade balance with Germany of £2,221 million.
Q1 : – £4,672
Q2 : – £ 5,236

Could the UK be heading for a – £20 billion trade deficit with Germany this year ?

This most important of trade relationships is rarely covered.
The UK (London really) wants German goods and Germany needs london to prevent social chaos …. but this BMW surplus is a Dramatic malinvestment of capital.

To sustain this flow of real goods the UK is prepared to slash Irish & Spanish consumption & investment to the point where its getting negative yields on these units.

IT WANTS REAL GOODS MORE THEN INCOME and london always did the income thing.

The UK / French trade relationship seems a bit more balanced…..

There was a net surplus of +20 million in August………….

Go figure where the problem is.

And its not Germany – its the UK

Its credit banks produce credit to buy BMWs – this is a real waste of capital.
Its does not start with a Kiss – it starts with the bank credit note and not the production.

Need I say UK fixed capital formation was almost third world like in Y2011
Uk : 14.2 %
Only Greece & Ireland was lower in Europe.
Greece : 14%
Ireland :12.6 %

France was above the EU average at 20.1 %

Germany was lower then this as it must put much of its resourses into BMW production at 18.2 % which feeds the UKs of this world.

 Much of the UKs fixed capital stuff is housing grot rather then the rail and power stations of France.

The Euro crisis is a Anglo crisis of investment as the city created the Euro

Rip van Wrinkle's picture

Germany will be the last man standing.


But it will fall over.

Dr. Engali's picture

It's a good thing only 5% of the people pay attention to anything going on in the world..otherwise these people might look silly.

Cognitive Dissonance's picture

"....only 5% of the people pay attention...."

I would argue that the opposite of anger is not joy or happiness, but rather apathy.

Strong emotion (anger, joy etc) rivets attention. The opposite of riveted attention is the complete lack of attention. When apathy is no longer controllable the exact opposite condition (directed anger and blind rage) is induced because this is just as easily controlled.

The conditioned hive mind is easily manipulated.

<Bring out the (scapegoat) gimp.>

Sandmann's picture

So they say....I thought a Greek exit might cause the USA to sink beneath the waves and Martians to invade, but the collapse of the Euro could lead to the earth being sucked into a black hole as the Intergalactic Balance is displaced by the collapsing Euro. Hard to imagine a greater disaster in the history of Mankind than Greece leaving the fact World War 3 might be preferable

fabmax's picture

Sure, Germany will be the last man standing, a starving man: 30% of German employees earn less than 400 Euros. This is how they kept inflation down. Kudos to mein Fuhrer. 



Uncle Remus's picture

"Mein Fuhrer, I can print!"

Sandmann's picture

German Pensioners have lost 20% Purchasing Power since 2000.............

Uncle Remus's picture

Such a lovely tune...

debtor of last resort's picture

Germanys liabilities are that large because the elite wants the euro to be irreversible. When the rope is about 2 trillion, politicians can say: stepping out is going to cost too much, so we have to stay all-in. Part of the fascist takeover.

Offthebeach's picture

German elite leading Germany into howling winter of Euro blizzard debts. But, right now it is late fall, bit of rollover frost everymorning, some talk of a cold winter, but Central Planning Generals say with redoubled efforts they won't need winter default coats, all defeatists treason aside.

Youri Carma's picture

Swiss rating agency stripped Germany of its AAA rating

Youri Carma: It’s only very logical that in the end Germany’s triple-A status would be challenged when implying to be the ‘lender of last resort’.

From: Wonder What Would Alice In Wonderland Say To The Vampire Squid?

Sandmann's picture

Oh get real ! There is an EU Summit coming up and Merkel wants to throw a wobbly to Monti and Rajoy and Hollande before they try force Rompuy's latest bilge about Eurobonds onto the agenda. One day you will start understanding EU politics and the need to establish ground rules before the Club Med guys start ordering cocktails on a German Express charge card

fabmax's picture

I would call Germany the "grabber of last resort".

As to the Euro being irreversibile, BINGO, you got it; someone up there wants to suffocate nations, and they do it very well. 

If you look at the debt of their Landers, they wouldn't deserve a BaaB.....but...this is not "factored in", who knows why....

The mysteries of great Germany

L927's picture

well-well-well let's sell those now useless Bunds and then we'll see what to do next. Love'em all!


The Reich's picture

FinMin Schaeuble, the man who lies whenever he opens his mouth, is NOT(!) Germany.


The vast majority of the German people simply wants to break up with the Euro!