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German Finance Minister Tells EU Leaders: Free Money Party's Over
Has Germany had enough? Hot on the heels of Mario Draghi's 'demands' that EU leaders undertake "structural reforms" to boost competitiveness and overcome the legacy of Europe's debt crisis, German Finance Minister Wolfgang Schaeuble unleashed perhaps the most worrisome statement tonight for all the free-money-party-goers - the music is about to stop. In an interview with Bloomberg TV, Schaeuble blasted "Europe needs to find ways to foster growth," adding that "the ECB has reached the limit in helping the Euro Area." In a clear shot across the bow of his 'core' cohort, Schaeuble said he "understood" Hollande's demands but shot back that "monetary policy can only buy time."
As WSJ notes, the French are seeking aid...
Growth in France had already ground to a halt in the first quarter, and Paris now says the persistent weakness means it won't be able to meet its deficit reduction target this year.
"We can't deny that certain geopolitical risks are playing a very important role at the moment. There are indicators of an economic slowdown," Mr. Schaeuble said in a joint press conference with Mr. Sapin.
...
French President Francois Hollande has proposed holding a euro-zone summit to discuss using the flexibility of EU treaties to slow the pace of deficit reduction. Mr. Schaeuble avoided saying whether Germany would approve a more flexible approach for any country in particular.
"Nobody has a lesson to give to anyone else because everyone knows the rules," Mr. Schaeuble said.
Germany has been reluctant to give up on fiscal discipline without seeing results from French promises to make structural changes to the economy in areas like labor law and welfare benefits. Europe last year already granted France a two-year delay to 2015 to bring its deficit within the EU rule of 3% of economic output--a target France is now likely to miss.
Mr. Sapin said the French president's request for a euro-zone meeting is to discuss the currency bloc's problems as a whole, not France's specifically.
"It's in no way a demand for an extension--that I can tell you straight away," Mr. Sapin said.
Which means only one thing - it is a demand for an extension... which perhaps explains Schaeuble's extreme tone this evening (bia Bloomberg):
- *SCHAEUBLE SAYS HE 'UNDERSTANDS' HOLLANDE'S EU ECONOMIC PLAN
- *SCHAEUBLE SAYS EUROPE NEEDS TO FIND WAYS TO FOSTER GROWTH
- *SCHAEUBLE SAYS ECB HAS REACHED LIMIT IN HELPING EURO AREA
- *SCHAEUBLE SAYS MONETARY POLICY CAN ONLY BUY TIME
As he explains:
"Monetary policy can only buy time,’’ Schaeuble said in the interview yesterday.
“Liquidity in markets is not too low, it’s even too high. Therefore I think monetary policy has come to the end of its instruments and therefore what we urgently need is investments, regaining confidence by investors, by markets, by consumers."
"I don't think ECB monetary policy has the instruments to fight deflation, to be quite frank,” Schaeuble said.
Schaeuble said he’s confident that “my French colleagues will do what’s needed in line with the rules that have been agreed again and again.”
"It’s very important that we all know in Europe -- every member state -- that we have to stick to structural reforms and enhance competitiveness, even in Germany."
Yet another nail in the coffin of any large scale sovereign asset purchase scheme...
* * *
With pressure from the French on Draghi to do "whatever it takes" again (for real this time) it appears this is as clear a message from Zee Germans that they won't stand for anymore.
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The two go hand in hand. You can't have fiscally independent sovereign states/countries AND one common currency. That would only work IF all nations had balanced budgets AND be of roughly equal (relative) economic strengths. These conditions never were and never will be met.
WARNING on the USA homefront:
from Clive Maund
“Notwithstanding its undeniably great accomplishments of the past hundred years, the relationship of the United States to the rest of the world is parasitic. This is because it creates money and debt instruments out of nothing, requiring virtually no effort, which it then swaps for goods and services with other countries. Because the US dollar is the global reserve currency, it is able to rack up astronomic deficits that would be untenable for any other country. US debts are now at such levels that if the US dollar loses its reserve currency status, the United States economy will implode and it will quickly be reduced to the status of a banana republic – hence the sense of urgency in the face of growing threats.
“When the US dollar loses its ‘reserve currency’ status this lot is ‘coming home’ and the inflation that will result will be unimaginable…
“A sad irony for the American people is that even though the US has the ability to swap unlimited intrinsically worthless paper for goods and services from the rest of the world, the infrastructure of the country is crumbling and many Americans already live in poverty on ‘food stamps’, and even the great US middle class is being squeezed. This is because the elites don’t care about the country or the masses – all they care about is power and the amassing of personal fortunes.”
--Will the US Succeed in Breaking Russia to Maintain Dollar Hegemony?...
Stop giving "Banana Republics" a bad name people! It's a lot different than the psychotropic nightmare in L.A. when they run out of meds.
Excuse me. I meant to say water. They'll never run out of meds.
The US has plenty of food, water, energy, technology and human resources. If the US cannot buy what it needs then it will be forced to restart its own manufacturing back to the US and create value adding work instead of parasitically building up the wealth of the rest of the world.
Even though the dollar is a parasitic instrument of slavery, all fiat currencies are. That does not mean that they cannot be used to build real wealth and prosperity around the world.
The biggest issue is that a handful of parasites in government and in finance give the US a bad reputation through massive fraud and corruption.
Sorry Germany, the deal was European Union.
You liked taking all that business from everyone, but you now have to share the losses.
You have to fund Italian, French, Greek, Irish, Spanish, Portugese largesse.
You didn't stop them when it was working out nicely for you. All those lovely Euros.
Sour-Kraut
Let's see where his big talk goes when it comes to market pricing on the books of Deutsche Bank.
Sapin: "It's in no way a demand for an extension--that I can tell you straight away"
Tyler: "Which means only one thing - it is a demand for an extension."
In the same vein, it's also quite possible that when Schaeuble says: "ECB HAS REACHED LIMIT IN HELPING EURO AREA", he actually means the ECB should begin some more Ctrl-P.
Euro-pols are learning the British gum-flapping tricks. Nothing is at it seems, usually it means the exact opposite.
Let's see where his big talk goes when it comes to market pricing on the books of Deutsche Bank.
'Houston we've got a problem' because:
Italy’s Top Banks Seeking Up to $36 Billion From ECB http://www.bloomberg.com/news/print/2014-08-27/italy-s-top-banks-said-se...
ING Chief Executive Hamers Says Bank Will Seek ECB Funds http://www.bloomberg.com/news/print/2014-08-28/ing-chief-executive-hamer...
Greece warned of 14.9 billion euro financing gap http://www.cnbc.com/id/101616483
Cue John Lennon's "The Dream Is Over"?
Or
Elvis Costello's "Pump It Up"?
Hehehe.
Currently most EU countries are pricing in voucher printing, for that is what the fucking pointless euro ass wipe is, a fucking coupon to buy shit in europe, at around the 3 TRILLION level
The EUROAREAGOVBON10Y is down over 80% on yeild over a year and is 40% lowr thn japanese bond yeild and means its price has risen over five fold.
Fucking bubble This no fucking bubble this a tsar bomba all over again.
Europe Actual Previous Change Daily % Weekly % Monthly % Yearly %
Austria GAGB10YR 1.12 1.17 -0.05 -4.27% -10.40% -20.00% -51.30% Belgium GBGB10YR 1.20 1.21 -0.01 -0.83% -11.11% -22.08% -56.20% Bulgaria BulgariaGovBon10Y 3.50 3.49 0.01 0.29% 0.29% -1.13% -10.26% Croatia CroatiaGovd10Y 4.27 4.28 -0.01 -0.23% -0.23% 3.89% -19.13% Czech Republic CZGB10YR 1.19 1.20 -0.01 -0.83% -13.14% -17.36% -50.00% Denmark GDGB10YR 1.19 1.23 -0.04 -3.25% -11.85% -21.71% -41.67% Euro Area EUROAREAGOVBON10Y 0.31 0.30 0.01 3.33% -13.89% -35.42% -80.38% Finland GFIN10YR 1.03 1.04 -0.01 -0.96% -10.43% -20.16% -52.31% France GFRN10 1.23 1.24 -0.01 -0.81% -10.22% -20.13% -50.00% Germany GDBR10 0.88 0.90 -0.02 -2.22% -10.20% -24.14% -52.69% Greece GGGB10YR 5.82 5.66 0.16 2.83% -1.19% -1.19% -44.57% Hungary GHGB10YR 4.55 4.43 0.12 2.71% -0.44% 0.66% -32.19% Iceland ICELANDGOVBON10Y 7.04 7.17 -0.13 -1.81% 0.00% -1.68% 8.81% Ireland GIGB10YR 1.79 1.77 0.02 1.13% -6.77% -19.00% -56.76% Italy GBTPGR10 2.44 2.38 0.06 2.52% -5.43% -8.96% -44.29% Latvia LATVIAGOVBON10Y 2.59 2.60 -0.01 -0.38% 0.00% 0.00% -25.79% Lithuania LITHUANIAGOVBON10Y 2.59 2.54 0.05 1.97% 0.00% 0.00% -36.05% Netherlands GNTH10YR 1.03 1.04 -0.01 -0.96% -11.97% -23.70% -54.82% Norway GNOR10YR 2.23 2.26 -0.03 -1.33% -5.51% -4.70% -24.41% Poland POGB10YR 3.10 3.05 0.05 1.64% -1.90% -3.73% -30.80% Portugal GSPT10YR 3.16 3.03 0.13 4.29% -2.17% -11.48% -52.19% Romania RomaniaGovBon10Y 4.29 4.23 0.06 1.42% 0.47% 0.70% -18.44% Russia RUGE10Y 9.65 9.31 0.34 3.65% 3.43% 2.55% 24.52% Slovenia SLOVENIAGOVBON10Y 2.64 2.65 -0.01 -0.38% -9.59% -14.84% -60.48% Spain GSPG10YR 2.23 2.13 0.1 4.69% -6.69% -14.56% -50.77% Sweden GSGB10YR 1.27 1.29 -0.02 -1.55% -11.81% -16.99% -48.58% Switzerland GSWISS10 0.43 0.45 -0.02 -4.44% -14.00% -17.31% -60.91% Turkey TurkeyGovBon10y 9.04 8.94 0.1 1.12% -2.38% 4.63% -9.87% United Kingdom GUKG10 2.36 2.45 -0.09 -3.67% -7.09% -12.59%-15.41%
Hmmmmm....Is this what happens when socialists run out of other peoples money?
"France’s economic sickness is primarily due to its overbearing state, horrendously high tax levels, insane regulations, absurd levels of inefficient public spending and generalised hatred of commerce, capitalism, success and hard work." (from http://www.cityam.com/article/1389059090/france-s-failed-socialist-exper...)
Have European Bonds seen their lows? All Countries are off their recent lows:= 10y's against todays highs
Portugal low 2.951% now 3.226%
Italy low 2.343% now 2.448%
Spain low 2.083% now 2.224%
France low 1.217% now 1.272%
Greece low 5.475% now 5.925%
Germany low 0.868% now 0.91%
UK low 2.337% now 2.405%
US low 2.303% now 2.352%
of course the German's are going to go ape shit. Farking retard states like France, etc are just freeloading from Germany. Prince Draghi thinks that his fascist plan can work, but when you don't have shit in hand except a monopoly money printer then when the people that develop real prosperity give you the bird - YOU ARE FARKED@!
Someone restart the rumor about the warehouse full of high-tech, new German Deutsche Marks.
First out, wins.
Soldiers in Crimea are protesting about their conditoions and that Russian comanders only gives emptey promises and that on public / internet is lied about that everythin is fine. Than one of Russian comanders steps in and threatens him, cals different names, etc. Video ends there.
No truth can't come out under Putine regime.
http://youtu.be/LoouHYZP3cA
This how look occupied crimea shops:
http://youtu.be/rr6X75rhhmc
Nice clean shops, modern cars, some foods (mostly dairy), what are they complaining about? We all, (there are 7 fucking billion of us), can't have a USA EBT life-style.
On CNBC this morning Joe K decided to fight the FED. They told him that it is more important to support the 1% than anyone else. Silly boy.
Fact they are both still talking of Europe and not Germany/France implies they still see a block of countries. So if that block isn't going the printing route and they are still as a block - then it implies 1 thing. Asset Grab - nothing else left.
I think Goldman-Sachs has dibs on the Parthenon.