This page has been archived and commenting is disabled.
Merkel Ally Fuchs: Draghi, Stop Talking QE, "We Shouldn't Pump Money" Into Struggling EU Nations
As bonds rally and EUR slumps near 1.20 (the figure) following moar Draghi jawboning and suggestions of sovereign QE from the ECB, Germany has come out swinging to remind the world that it won't stand idly by as the nation's taxpayers are thrown under the bailout-the-EU-or-else bus. Michael Fuchs, deputy parliamentary floor leader of Angela Merkel's Christian Democrats, told Deutschlandfunk radio on Friday: "We shouldn't pump extra money into these states, but rather make sure they continue along the reform path." As Reuters reports, Fuchs further added, "I'd be grateful if (ECB President Mario) Mr Draghi would make statements along these lines."
A senior member of Angela Merkel's party warned the European Central Bank not to pour money into Greece and other struggling euro zone states through bond purchases, saying this would reduce pressure on them to enact much-needed reforms.
Michael Fuchs, deputy parliamentary floor leader of the German chancellor's Christian Democrats (CDU), told Deutschlandfunk radio on Friday: "We shouldn't pump extra money into these states, but rather make sure they continue along the reform path.
"I'd be grateful if (ECB President Mario) Mr Draghi would make statements along these lines."
...
"I expect there to be fierce discussion over this at the next ECB meeting," said Fuchs, referring to opposition to the bond-buying plan by the head of the Bundesbank Jens Weidmann. The ECB's next policy meeting is on Jan. 22.
Fuchs has frequently expressed frustration felt by many German politicians and the public about the pace of reform in twice-bailed-out Greece.
He was quoted as saying in a newspaper interview published on Wednesday that euro zone politicians were not obliged to rescue Greece as the country was no longer of systemic importance to the single currency bloc.
* * *
Un-United States Of Europe?
»
- 9264 reads
- Printer-friendly version
- Send to friend
- advertisements -
Fuchs should choose his words carefully. He might have an unfortunate nail gun or treadmill accident.
France should loan the EU the money, after they are the greatest country in the world so they're good for it......
Germany to Greece:
What's your hurry?
Here's your hat.
Play the game Germany...or you won't get your gold.
So you make them choose between pest and cholera ? Not smart ...
Germany should just start buying more gold and take delivery.
...or hottub (i.e. Matt Simmons)
EU Motto : 'We are all in this ......alone!'
Merkel and Fuchs should stay away from nail guns, hot tubs, airplanes, and penthouses with a view.
Fuchs you Draghi
Haha it is just like Franco.
- Keep the Peons down
- Make them Respect the higher class, higher authority
- No more investment in Factories
- No more industrialization
- We will preserve the Social Order, the Old Order
Heck no, They call European countries states now. WTF
"Staat" is German for country you dope!
Staat is German for state. How difficult can it be ?
Often I wonder how some manage to cross the road safely...
I think you can translate it as country, in some cases ( country seems closer to the German word "Land" to me )
Assignment for ZHers : difference between "Bundesstaat" and "Staatenbund"
Lots of nuance here - my conversational German tells me
Stadt = city or town
Stätte, Stätten = place, places
Land, Länder = Usually country but can also be the State - ie Rußland/Russland = Russia
Bundesländer = German States
Staat, Staaten = State, States - can also refer to the executive
Bundesstaat = Federated States as in Federated States of Germany
Staatenbund ... not 100% sure but from memory it's a Commonwealth.
wow, not bad for conversational German !
I think Bundesstaat is a federation and Staatenbund a confederation ( where each state has the right to leave the club )
Geihiem STAATS polieci. (Yes I spelled that all wrong) the GERMAN STATE POLICE, or Gestapo for short. Sounds eerily similar to the dept of homeland security, doesn't it? It also sounds like a standing army on US soil. I swear some group of guys from a while back warned us against having one of those, can't remember who though. Oh well, I'm sure OUR Gestapo would never resort to nazi Germany style surveillance or tactics.
they won't buy many bullets or use MRAPs either ...
until the underlying problems are fixed, nothing will work... but then again everyone knows that.
The underlying problem - is US.
You propose to eliminate the US?
They're doing OK at that on their own. No help is required.
I'll believe it when I see it. If Germany is anything like the U.S. the German corporations will visit Mr. Fuchs and remind him that QE allows the rest of the EU to keep buying their products.
That and negative bond rates tell you Germany is still on the Central Banker Bus (Magical Mystery Tour).
Fortunately, they aren't like the USA, they are somewhat paranoid and pessimistic by nature.
The Germans appear to be the only financially rational people left on this planet.
BURN BABY, BURN !
Well, they just want the money for themselves as soon nobody will want to buy german bonds anymore.
Really ? Do you have a better option ? I know Belgians just LOVE American bonds, but still...
Forget QE we've moved on to VE
Vaseline Easing...now bend over.
'We turning Japanese.' - The Vapors
You really think so...?
Oh yeah baby ...cuz were all stooooopid!!!!! Includin' U 2!
Independent economic policy means independent Foreign Policy to follow in due course. That path does not comport with State Department Diktat, nor the Wolfowitz Doctrine. Certainly if Frau Merkel and Fuchs get a little too independent, certain 'files' could mysteriously find their way into Der Spiegel...?
The Germans are right. Now let's see how willing they are to accept the consequences of being right.
Of course it's stupid. Just like it's stupid to think more loans will solve your own personal money problems, when you can't even make your payments NOW...
That being said, the cure involves deflating the entire economy. This means German business will have to deflate as well...the reason they have been doing so well is because the Greece's of the world have been living beyond their means and BUYING from the Germany's with loaned money.
It's all well and good to insist the other guy must take his medicine, just don't forget YOUR turn comes to take it too. Remember, if 'they' can't afford to buy it, what are you doing SELLING it to them? The belt you want them to tighten is wrapped around your waist as well, dumkoffs!
That medicine will kill them. There is no doubt that reform is needed, but no one drinks a whole bottle of medicine in one night as a curative. Greece is a special case, making clear they want out. Not all countries are in this same situation.
Germany is an export-driven economy. When this nonsense is finally over, either they will be out of the EU, or nations being killed by "austerity" will be out of EU (the rest).
The rest will be able to recover and export as their cost base realigns. The German mark or Euro, whichever, will rocket and destroy German exports.
Germany has got to be practical if they are to be an effective leader in Europe. Right now they are being stubborn fools that are happy to kill Europe. They would have no qualms with QE if their distinct economy was deflating and they have no problems hocking their goods all over the rest of the continent. The hypocrisy is shocking to me.
They've got to get over their notion that "moral hazard" must be punished, no matter what. The Calvinist mindset is not compatible with a modern economy. The economy is math, and math doesn't CARE about any notions of moral hazard, it just wants the books to balance.
And you're right, if it was the German economy taking the big hits, they'd change their tune. So, the morality is a very flexible thing, it seems.
As soon as the German economy goes from "Take THAT, you losers!" to "Hey...wait a minute here...", the Calvinists will decide 'they' have learned their lesson and it's time to DO something...
What they forgot with this Ponzi scheme called the Eu is, you can't sell if your customers have NO MONEY. So impoverishing your customers is stupid. This includes all lthe unemployed in your own country.
I hope Greece can get out. I knows of a gas pipeline that will have to continue on from somewhere that is going to be right on their border. The owners of which might help them build their section and then still give them some transit fees for it. Just for starters.
Of course Greece is not of systemic importance now that they bailed out the banks that had lent money to Greece.
However, if Greece leaves and defaults but at the same time starts to claw back a hopeless situation by using its own currency, then Spain, Portugal and others may follow and that is how Greece may end up being of systemic importance.
Italy is in tha queue.
As I said before, Draghi has no choice but to go large when he does QE.
And he will do so!
I'm going to "Draghi" the next chick I bring home from the bar...
All the way home in the cab I'm going to tell her how good I'm gonna fuck her. I'll have her cumming over and over again before I even attempt to shove my whiskey-limp noodle in her.
I think that the appropriate execution of a "Draghi" manouver means that when you meet a woman at the bar, you offer to buy her a drink. When she accepts, you tell her how great the drink will be once you order it. But you are hoping she orders one for herself before you have to buy the drink.
If you are already in the cab talking sexy talk, then you are pulling an "Abe".
If you take her home and get down to naughty QE, that is known as being "Bernanke-d".
If she stays until morning and wants breakfast and cab fare, she is pulling a reverse manouver called the "Yellen". Watch out for that one.
If she turns out to be a dude, fucks you in the ass, stays in your house six years and runs up massive debt on your credit cards, you've been "Obama'd".
Marxists & Maoists ain't great at payin back their debts! It's their anti-capitalist thing goin' on when the owe peeps!
The German banks are saved so why would he care about Greece now.
Not like the euro isn't getting decimated here.
Gasoline prices in Germany still ten bucks a liter?
I mean seriously enough of the "bailouts" already. If Germany's yields are negative then that's where the bailout bucks have actually wound up. Aren't these folks suppose to be "integrating" Ukraine into the EU anyways?
Or just suck them dry to pave the way for a Russian invasion?
I think the American Sherrif stops in Vilnius unless and until "the zero" steps up to the plate here.
Russia invading Ukraine.....don't really see the point of that ..... kind of analogous to Watts laying claim to the 90210..... really all it would do is bring down the property values in Watts and add a bunch of EBT card waving entitlist to the welfare roles..... yes I mean you Lyndsay
Drahi full Interview:
https://www.ecb.europa.eu/press/inter/date/2015/html/sp150102_1.en.html
thanks, the way I read this, it is a dual reccomendation, invest in banks and insurers, which is what some say will get govt support in any downturn of significance.
Many German savers feel expropriated nonetheless. What is your advice? What should they do?
Draghi: Insurers and banks, whose business it is to assess risk and reward, should give the answer.
What does that mean? Investors should spread their risks around the world?
Draghi: I can’t give any advice here. I’m a central banker, not an investment adviser.
I read: Buy stocks! Put all your retirement into stocks! (life insurances and pension funds will take care of that).
Not spending like drunken sailors is a good thing when you have no money (insufficient tax base).
Printing money so countries can behave like drunked sailors is not a good thing when those countries have an insufficent tax base.
Taxing too much is not a good thing.
Is it so difficult to understand? By any country, whether that's the US, Europe, Japan, Dominica, Rwanda, Tonga or Iceland?
Central banks that facilitate debt servitude are acting beyond their charters as soon as they expect their sponsoring ountries to honor their debts.
Oh and the gold in central bank valults does not belong to central banks either, so they cannot lend it out (even if it actually exists in their vaults in non-tungsten form).
Once the printing started it was game over. There isn't an "exit plan".
Once upon a time it was thought that politicians shouldn't be able to create money as they would just print more to bribe voters.
We now find Central Banks print money just to bail out incompetent bankers.
Is there anyone we can trust with creating money?
I think that's called 'The Constitution!'
Fuchs me? Fuchs you!
Is Greece going to default?
No. Not this year. When they can pour billions into Ukraine fascist state, then they have more billions for the "members". When Greece goes down, Spain, Portugal and others will follow.
Interesting their (German) argument is 'well, Greece is not important'. I seem to recall the EU charter says one country can't bail out another member.
Just follow the damn rules.
The EU charter......like the US Constitution, is a completely meaningless and irrelevant and unenforceable legal document.
If you don't have standing.......laws are meaningless.
saying that only means that it is exactly what they are currently doing
It’s a feel good catchall statement.
"We Shouldn't Pump Money" into…
Struggling states like Mississippi or
Struggling cities like Detroit or
Struggling neighborhoods like Chicago’s south side or
Pie-eyed frackers or
Storm-Surge Barriers….
Germany talks tough, but it does whatever it takes to keep the Euro cheap so they can ship lots of cars and other engineered goods overseas. Germany is not going to stop the ECB from buying up sovereign trash debt or anything else that keeps the game going.
I hope that MD does not care about ........what was his name.......Herr Fuchs? But he, Mr. Fox, never will be so "schlau" as Mr. MD is and will be. The Germans will never get it, but they make good indust. products and make Urlaub and unfortunately do not spend enough Euros.
Just more blue team vs red team PR.
Dictionary entry for the EU
Bankrupt. Fraudulent. Failed. Fucked up. Insane ideology even pre-internet! (even pre-voice)
See Guy Verho-shafter ROFL
pre-eminent as well ?
Grandma knows, things come in 3's - that's what I was told
Wait until the Fuchs enters the DB henhouse.
Try and cut spending in the face of 20 years of subsidized Muslim and African immigration, the EU invested in immigrant socialism, harvest time is here, and its a bitter harvest.
Car-B-que for everybody in the EU, not just the French.
No cuts coming.....they will print.
Not to worry... they have a new "Greece", it's called "Ukraine"....
Merkel: I have given the government contact to Hugo Boss to make some very smart uniforms for our military, secret services, and police. The brief is to be dapper with a hint of the sinister.
Now then EZ which part of Nein do you agree with me that QE will never happen. Think carefully, and don't worry if you get the answer wrong, just like Ireland you will get another go.
Germany: Being complete twats in Europe before Germany was a nation.
It's a misconception to think that the top German Banks are in good shape.Far from it.If she collapses over there the source will originate from derivatives in Germany.
At the end of the day, the German Vassals will do as they are told. The public resistance is merely to reduce opposition from the local sheeple.