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Bundesbank: "Mein Entschluss: Anschluss-Plus" - Germany Reveals The European Annexation Blueprints

Tyler Durden's picture




 

We were wondering how long it would be before Germany, following in the footsteps of such luminaries as Hank Paulson and Tim Geithner, would formally announce to the world that with it now openly calling the shots in Europe, it would be its way or the mutual assured destruction way. We just got our answer courtesy of the just released August Outlook from the Bundesbank, in which the German national bank lays out the framework of the upcoming European anschluss play by play, as Germany prepares to roll out the Fourth Reich welcome mat without ever spilling a drop of blood. After all: why injure the soon to be millions of debt slaves? To wit from the report: "Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened." Translation: "we will gladly help everyone out... in exchange for a little of that vastly overrated fiscal sovereignty... Did we say a little? We meant all of it..."

Here are the salient points from the just released Bundesbank manifesto of Mutual Assured Anschluss or else:

Overall, there is a risk that the originally agreed institutional framework of the monetary union will increasingly become eroded.

As noted, there is but one proposed solution:

Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.

You want your stupid brilliant monetary union? Fine.

You want us to pay for it? Sure.

The cost? Your "extensive" national independence.

Full passage:

The recent resolutions transfer sizeable additional risks to the countries providing assistance and their taxpayers, and go a long way towards communitising risks caused by unsound public finances and misguided macroeconomic policies in individual euro-area countries. This weakens the foundations of monetary union, which is based on the principles of national fiscal responsibility and the disciplining effect of capital markets, without noticeably increasing the influence and control over individual national fiscal policies as a quid pro quo. Overall, there is a risk that the originally agreed institutional framework of the monetary union will increasingly become eroded. While fiscal policy will continue to be determined by democratically elected parliaments at national level, the resultant risks and burdens will increasingly be borne by the Community in general and the financially sound countries in particular, without this being offset by any concrete powers to intervene in the sovereignty of national fiscal policies. No comprehensive change in the European treaties is currently envisaged that would democratically empower a central entity to exert some control over national budgetary policies. This means there is a danger that the euro-area countries’ propensity to incur debt may increase even further, and the euro area’s single monetary policy will be increasingly susceptible to the temptation to adopt an accommodating stance. Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.

h/t Geoffrey Batt

 

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Mon, 08/22/2011 - 09:59 | 1585705 digalert
digalert's picture

Barack Barry Hussein Soetoro Obama:

after vacation #89, "I now have a jobs plan,

extensive surrender of national fiscal sovereignty..."



 

 

Mon, 08/22/2011 - 10:00 | 1585710 Esso
Esso's picture

If the Germans are being forced to pay for it, why shouldn't they own it?

Mon, 08/22/2011 - 10:03 | 1585725 Durchbruch
Durchbruch's picture

spot on ! And southern european people will be glad their incompetent and corrupt leaders lose power. The final stage will be one european government only, elected by the united people of Europe.

Mon, 08/22/2011 - 10:12 | 1585761 anony
anony's picture

Oh, great yet another consolidation of power.  If those countrymen think that having a Big Jefe based on some island with its own laws, morals, and ethics accountable to none of the people who elected him, who lives only by an entirely self-important primacy, like ours does in Washington D.C.,  is preferable to having their own corrupt officials locally, which they can depose and assassinate if need be, they and you (if you're not seing sardonic) are in for a real big surprise.

Just ask the people of the disUnited States.

Mon, 08/22/2011 - 10:04 | 1585727 snowball777
snowball777's picture

Because the Germans doing the paying are not the same Germans doing the owning, for one.

Mon, 08/22/2011 - 10:09 | 1585748 Esso
Esso's picture

Then it's time to start disposing of the bankers in an orderly fashion, correct?

Mon, 08/22/2011 - 11:31 | 1586070 snowball777
snowball777's picture

As I've stated before, I'd rather see them reduced to cleaning toilets for the remainder of long and shitty lives.

http://www.youtube.com/watch?v=I_keWS1i3RA

Mon, 08/22/2011 - 10:09 | 1585751 Sudden Debt
Sudden Debt's picture

Because they invested in the defaulting paper in the first place and "paying for it" is nothing more than to pass taxpayers money to their billionaire friends.

If they wouldn't, German banks would go KAPUT!

If I where Greece, I'd default and give you the finger. If I where Ireland, I'd default and give you the thinger. If I where Spain, I'd default and give you the finger, If I where Portugal I'd default and give you the finger. If I where Italy, I'd default and give you the finger.

Maybe all those defaulted countries could form a DEBT FREE UNION?!

Who would be the smartest than?

Mon, 08/22/2011 - 10:20 | 1585789 Esso
Esso's picture

When is it going to be time to start dealing with the banksters/billionaires causing the problem?

Please forgive me, but I'm just a simple mechanic. When there's a broken part, you discard it and replace it with a working part. What's so difficult with that?

Mon, 08/22/2011 - 10:32 | 1585808 ViewfromUnderth...
ViewfromUndertheBridge's picture

because these are people not car parts...if you and durchturd's ideas are implemented Europe would be at war sooner than otherwise...

Listen to The Waffle...he is right. 

Mon, 08/22/2011 - 10:58 | 1585905 JohnFrodo
JohnFrodo's picture

It worked for Iceland, its all imaginary anyway so why not imagine your debt free.

Mon, 08/22/2011 - 14:23 | 1586898 schadenfreude
schadenfreude's picture

The guy who bought physical Gold!

The banks are going to explode anyways.

Mon, 08/22/2011 - 10:01 | 1585716 LawsofPhysics
LawsofPhysics's picture

The line in the sand is being drawn (or is this a new wall around Germany?)  What happens when all the German customers say, "okay fine, fuck off!"

China and Russia must be drooling over the opportunities before them.

Mon, 08/22/2011 - 10:59 | 1585911 Ignatius J Reilly
Ignatius J Reilly's picture

Again, I'm asking.  I do't have the answers.  All Germany can do is take the loss on what they have already bought and decided not to double (triple, quadruple) down.  Right?  I hope that happens, but that is a painful choice.

Mon, 08/22/2011 - 10:08 | 1585740 anony
anony's picture

What exactly is a "debt slave"?

If I borrow only the amount of money that I can pay back am I a debt slave?  Where is the line drawn between countries, borrowers and lenders, where is that line drawn that differentiates the prudent borrower and lender from those that leverage 2 times or 1,000 times their annual income?

And what exactly is wrong with letting debt slaves who do act insanely, and are permitted by the lender to do so, hang themselves on their own petard?

Mon, 08/22/2011 - 10:38 | 1585840 ViewfromUnderth...
ViewfromUndertheBridge's picture

starting with the banks...

in this case the taxpayers are being forced into debt to bail-out the lenders who acted insanely in lending to borrowers who should never have been lent the money who acted rationally if not morally in grabbing while the grabbing was good...and now everyone's neck is attached to the same petard and no one is accounatble...

until the moment when someone says nein, and I think the Bundesbank just did.

Mon, 08/22/2011 - 10:41 | 1585849 rwe2late
rwe2late's picture

 Simply put, the banksters have passed off their debts to sovereign governments, and have bamboozled and defrauded those governments into borrowing even more money to hand over to them.

As long as one is satisfied with that arrangement, I guess he/she will not mind being a "debt slave". 

Mon, 08/22/2011 - 15:27 | 1587224 anony
anony's picture

Who permitted the banksters to do so?   It can't be because they sent me a bill for a million dollars as my share of their failure.  Then it must be the Secretary of the Treasury who did it, and if he did it, he should have been prevented from doing so by his boss and if his boss is in the pockets of the banksters why isn't he thrown in jail, the trillions clawed back from Goldman sucks, China and whoever else got bailed out.

Looks to me as if a CONsPIRACY has been in the works for years and there's no cop watching the door. 

If the people are so out of it that they don't do anything about it, then how is that any different from Caveat Emptor re: their incumbent politicians?  Under this scenario no one who currently holds office should be re-elected but you have mass media choosing who should and should not hold office and I've yet to see one not endorse an unindicted one.

 

Mon, 08/22/2011 - 11:11 | 1585963 Zero Debt
Zero Debt's picture

It is an oxymoron as long as you assume that lending and borrowing decisions are made voluntarily.

Mon, 08/22/2011 - 15:10 | 1587146 schadenfreude
schadenfreude's picture

to add to your comment:

http://www.economichitman.com/

Mon, 08/22/2011 - 13:02 | 1586504 Lednbrass
Lednbrass's picture

And what about those who had no say in any of it?  My kid owes several years of labor to Uncle Sam before he even starts working due to the fools who came before him.  What would you call someone doomed at birth to work for years for central authority for things they had nothing to do with?

Nothing is wrong with letting fools hang themselves, its what should happen.  However, this is not what is being done- instead two generations of incompetents are literally stealing the future in the name of their own comfort and convenience.

Mon, 08/22/2011 - 10:07 | 1585741 taint
taint's picture

perfectly fine letting Germany run Europe.   I suspect they will create a 'bad country' and ship all the bad paper and imported illiterates there.   One can only hope!

Mon, 08/22/2011 - 10:09 | 1585752 wombats
wombats's picture

I wonder how soon China will start making similar demands upon the whole world...and on the US in particular.

Mon, 08/22/2011 - 10:11 | 1585756 TzaristBondHolder
TzaristBondHolder's picture

Sounds like:  "Can you please sign as a citizen of the 3rd Reich volantarily and this time we give you a loan instead of sending the tanks".

Mon, 08/22/2011 - 11:03 | 1585919 rwe2late
rwe2late's picture

3rd Reich?

You are behind the times Tzarist.

This is the NWO.

US tanks occupy Germany, and it is the US-led NATO that is encircling your country, installing a first-strike missile capability, initiating naval provocations in the Black and Arctic Seas, undermining your nation by establishing criminal mini-states such as Bondsteel-Kosovo, and promoting local aggression by its attack dog subordinates such as Saakashvili.

Mon, 08/22/2011 - 10:13 | 1585765 three chord sloth
three chord sloth's picture

The Golden Rule: He who has the gold makes the rules. Same old song and dance... y'all should know this by now. ;^)

One of the basic Rules for Life -- If you value your freedom and autonomy, never become financially dependent. Earn your keep. It's true for nations as well as individuals. To put it another way... welfare is slavery. Always has been, always will be.

Mon, 08/22/2011 - 10:14 | 1585769 YHC-FTSE
YHC-FTSE's picture

I like your spin on the situation because it reads like a British comedy a la 'Allo 'Allo! But if you know your modern German at all, and not the Hollywood henchmen version, you would know that being portrayed as another conquering nation is the last thing they want in their collective psyche. In comparison to Germany, virtually every other nation resemble the Nazis these days. 

 

I know, I know - It does make good reading, but really what choice do they have if they want to keep the Euro? Somebody has to tell the PIIGS that if they want to share a currency with those who are productive and responsible, they too must at least make an effort in that direction. This may sound absolutely idiotic to those who were brought up on Hollywood, but if there's anyone I'd trust to take care of another nation's fiscal responsibility, that would be Germany because they would be much more mindful of being portrayed as Nazis than any other. 

 

The real alternative of course is to scrap the EZ altogether, which basically means abandoning the PIIGS to their fate, for better or for worse, and kick-starting the mother of all EU banking crises not seen in anyone's lifetime - which, by the level of schadenfreude witnessed in forums like this, I'm sure will make a lot of Americans very happy. I'm not sure which is worse yet, but I really don't blame the Bundesbank for spelling out the obvious sentiment on the minds of every tax payer in Europe. 

Mon, 08/22/2011 - 10:54 | 1585889 ViewfromUnderth...
ViewfromUndertheBridge's picture

allo allo, not a lot of "spin"...the Bundesbank statement was clear...and echoes Der Spiegel. Are they nuts? or just making it clear to the low-watt bulbs that it is over.

but you are right, it will be a schadenfreudegasm.

Mon, 08/22/2011 - 15:34 | 1587249 schadenfreude
schadenfreude's picture

It's a smart call from financial elite.

A Eurobond with a risk of 1.3tr. or recapitalisation of the banks after the BOOM! What is cheaper? And in which currency?

Call the Eurobond to gain some time, until US runs in a recession and starting a war afterwards? (Only if Bernanke does not QE3)

Call the Eurobond to gain some time, until US runs some printers and China is starting a war afterwards (Berni gets generous discounts at HP)

Maybe Axel Weber waits until Deutsche Bank is nationalised, to take over ?

 

 

Mon, 08/22/2011 - 10:19 | 1585781 CassandraDoomsday
CassandraDoomsday's picture

1. Merko and Sarkel have done another "kick the can" last week (SO OBVIOUSLY - that it should be striking)

2. Since then the usual suspects (aka short term beneficiaries) have promoted EURO Bonds, including head of Commerzbank (see reuters weekend)

3. Quietly, the Finns are scuppering the Greek Bailout 2.0 with their collateral demands, mainly by delaying the implementation (so far).

4. The main stream press increasingly reports the "unexpected" failures of Greece to meet the bailout targets.

5. Spiegel had NL finance minister saying EURO Bonds are perverse.

 

And now think - what would you do, if you were working on Plan B? Look out for the weekend preceeding October 3rd - ist a bank holiday in Germany and a Monday - ideal to change a currency -

I am just speculating.

 

Mon, 08/22/2011 - 15:39 | 1587264 schadenfreude
schadenfreude's picture

Until the dust settles after the extinction of the banking system takes quite some time. Oct. 3rd is too ambitious :-)

Tue, 08/23/2011 - 03:33 | 1589343 CassandraDoomsday
CassandraDoomsday's picture

Merkel dispachted Weidmann into the Bundesbank - for no reason?

never forget - its German efficiency, and acccording to unconfirmed rumor some prep was done around May 2010.

Cannot imagine they want to to at Christmas (too late for Sarkozy), apart from the banks will not make it till then...

 

Mon, 08/22/2011 - 10:20 | 1585785 CatoRenasci
CatoRenasci's picture

Ultimately, this will be the end of the Euro.  The PIIGS will not enforce adequate fiscal discipline and will not surrender sovereignty to do so. 

And, the bottom line even if they attempted to (or actually did) is the national mililtary/police establishments will not enforce German mandates and the Germans don't have the military or police to do it themselves in the face of Greek style riots and noncompliance with tax laws and austerity measures.

And, the German taxpayers will not support the creation of such a military.

He who has the gold may set the rules, but ultimately, force, or the credible threat of force, is the only thing that will enforce the rules.  There is no credible threat of force on the Continent West of the Russian border.

Mon, 08/22/2011 - 10:23 | 1585797 gwar5
gwar5's picture

 

 

 

All clouded in Eurospeak. Looks to me like the German offer is intentionally draconian, like they don't want the others to really take them up on it. Ultimately, Germany would have to enforce collections and I don't think they have the stomach for it.

 

Looks like they are offering a bailout on terms no one in their right minds would accept. But this way, when the other Euro countries tell them to piss off, Germany can say it's not their fault when things implode. If I were Germany I'd have done the same thing.

 

 

 

Mon, 08/22/2011 - 10:35 | 1585831 CatoRenasci
CatoRenasci's picture

Look for the imminent return of the D-mark when everyone (including the German voters) figures out the Germans are serious about what a German bailout will cost.

Mon, 08/22/2011 - 11:26 | 1586047 rwe2late
rwe2late's picture

 Could also be the standard negotiating posture.

1st make extreme demands so that the 'compromises" will seem less extreme than they really are.

Mon, 08/22/2011 - 10:23 | 1585798 Catullus
Catullus's picture

And thus, currency issuance is only ever about control. The power-hungry beast in the raw.

Gold more so than ever, bitchez.

Mon, 08/22/2011 - 10:25 | 1585802 headless blogger
headless blogger's picture

For many in the US (in the US...can't speak for Europeans), it is already a debt slavery existence. Anyone that has had the opportunity of working in hard labor for a company, mostly the "family owned" variety, knows that you are worked like a slave for a pittance, while the lords of the manor (the business owner) are out on their yachts and vacations. No health care bennies, nothing. Just a meager wage anywhere from minimum wage to a couple or few bucks over. Threats of being fired are routine if you don't work faster and faster...(think of the whips).

A lady I know, who has a college degree and is fairly intelligent, had been out of work and was on the 'temporary' circuit. She then took a job as a maid (there was nothing else) for a hotel group owned by a local family that is quite prominent in the community because they own several of the local hotels (monopoly?) and other businesses. The lady friend said her first day of work their was a meeting with all the maids and they were threatened with being fired if they did not work faster. She said she takes about 10 or 15 minutes for lunch and no breaks. They have to haul huge bags and baskets of laundry up and down 3 flights of stairs because the owner is too cheap to put in AT LEAST a dumb waiter or laundry shute. They have 25 minutes to clean rooms and only 10 minutes to clean rooms by customers staying over another night. If any hair is found on floor they are threatened with being fired.

If people want to see a vision of the future of U.S., check out people that do this kind of work. The lady friend says she has to wear knee supports and a back support and basically runs all day.

Another aspect of this is she says the other workers seem oblivious to their slavery. They just worry about one-upping another worker...they have no clue it seems.

 

 

Mon, 08/22/2011 - 10:29 | 1585812 AngryGerman
AngryGerman's picture

I already cleaned out the stables to host the thousands of "guest" workers...

Mon, 08/22/2011 - 10:45 | 1585864 Jim in MN
Jim in MN's picture

The new D-marks will have windmills, bunnies and smiley faces, mark my words, you read it here first!

Mon, 08/22/2011 - 11:33 | 1586081 snowball777
snowball777's picture

Pretzels, biersteins, und frauleins mit braids.

Mon, 08/22/2011 - 10:51 | 1585875 Darth Hayek
Darth Hayek's picture

Let's see...the folks being asked to bankroll everyone taking every possible effort to either minimize risk or scuttle the deal?  No sh!+, Sherlock!

You don't exactly need nefarious motives for that one, folks.  Even a decent but at least moderately sane actor would want some assurances that the Greek 'work ethic' (I nearly hurt myself typing that) won't just drag them into oblivion, too.  And given the track record of promises in those parts, yeah, a pretty damn strong regime is going to be needed.

Prediction:  Whole thing falls apart...

Mon, 08/22/2011 - 10:51 | 1585877 Ignatius J Reilly
Ignatius J Reilly's picture

As much as I think this EU experiment will end and end soon.  This is one banker.  Other bankers have to step up and say the same thing.  Then the German people have to deliver this to the German government.  The German government has to act, not talk.

 

Could take longer than a few months.  Lot of posturing has to happen first.

 

Lastly, am I wrong on this, but wouldn't the end of the EU be in sight if you started to actually see the UK and German align themselves publicly?

Mon, 08/22/2011 - 10:56 | 1585895 JohnFrodo
JohnFrodo's picture

It was Anglo Saxon greed that got us into this mess, so why not German prudence to rule the future.

Mon, 08/22/2011 - 11:03 | 1585921 mendigo
mendigo's picture

germany would not really want to assume responsibility for the rest of europe on any terms

they are just putting that out there to put the rest of europe in the position of rejecting the deal

they are already looking past germany for relief from herr bernanke

all eyes turn to jackson hole - please sir we want more

Mon, 08/22/2011 - 11:11 | 1585959 bankonzhongguo
bankonzhongguo's picture

Well, if Russia ever needed an operational code for the next 40 years, here it is.

At some point you just cut the phone lines and wait for the tanks.

 

Mon, 08/22/2011 - 11:22 | 1585971 gwar5
gwar5's picture

The case for the EU's survival under Germany:

 

Rickards: Says EU will survive, he's bullish the Euro (He's repeated this now several times). The Germans now control the (new and improved) EFSF; The EFSF is now a de facto Euro Treasury which was lacking in the EU; Germans will now be able to dictate fiscal policy to the other Euro states. Hence, Germany's "Fourth Reich".  The risk to Germany is worth it because they derive enormous structural trade advantage in the EU with the captive market already -- and now they can tell Italy and Spain they can't build, eg., a new truck factory, and can dictate for union concessions. Eurozone also has 10,000 tonnes of gold backstopping the entire Europroject, more than the US. Says gold backing will return to currencies eventually, whether messy or efficiently, but fiats are going away. 

James G. Rickards talks to James Turk

 

Personally, I hope the EU crashes and burns. The sooner the bettter. This is depressing news if the EU is on it's way to pull it out of their ass. I suppose it's better that it's German rather than the French dominating. But the whole mess still has to be enforced and I don't see where the Germans will have the stomach for it. They're going to have to ask the Greeks and Italians to be honest and pay up, enforced by fellow countryman.  Good luck.

 

 

 

Mon, 08/22/2011 - 11:39 | 1586112 headless blogger
headless blogger's picture

Maybe they'll get the good 'ol U.S.A. to enforce it? I mean, they have utterly destroyed the American reputation world-wide as the planetary police dog.

Mon, 08/22/2011 - 11:45 | 1586140 Durchbruch
Durchbruch's picture

I don't get why you hope the EU crashes. Italians will pay up only if they keep the euro. If they come back to their own currency or a new devalued one there is no way they will pay anything back. EU crashing means default of all the PIIGS, not only the small ones. German stance vs the PIIGS is correct and it's not an imperial act. It's sound: keep the euro and change those things that are wrong in your fiscal policies and in your government spending. Then and only then we'll help you.

Mon, 08/22/2011 - 11:21 | 1586017 G. Marx
G. Marx's picture

Calling Nigel Farage.....

Mon, 08/22/2011 - 11:26 | 1586051 MrBinkeyWhat
MrBinkeyWhat's picture

Down here in South Alabama, I have been advocating a return to the West Florida Republic -1813 for quite some time now. Succession Bitchez!

The EU is a very bad joke. Am I the only one that downloaded the "CRAZY VIKING'S" (Andrew Berwick) book?

Mon, 08/22/2011 - 11:51 | 1586169 Durchbruch
Durchbruch's picture

I have been advocating a return to the West Florida Republic -1813 for quite some time now. Succession Bitchez!

 

Yeah, and then ? You come back gathering cotton by hand, without slaves this time, and receiving wages in dismissed euros.  I was just asking to myself what to do of all our paper after the EU disappereance.  

Mon, 08/22/2011 - 13:11 | 1586532 Lednbrass
Lednbrass's picture

Utterly stupid comment.

Why would hand gathering be necessary?  Slaves were here as farm equipment, and we have lots of that now thanks.  The southern US has the size and resources to make a very successful nation and its own currency- we dont need the rest of the country for anything.

With a population and land mass far larger then any nation in Europe plus a large part of the oil processing industry we will be just fine.

 

 

Mon, 08/22/2011 - 11:48 | 1586157 headless blogger
headless blogger's picture

I have no idea what will happen, but sure enjoy reading what others think. Gives me lots of food for thought. It does seem that "they" have won...short term anyways (next 200 or so years?).

One thing I hear over and over in media is how the Egyptian people overcame their dictator. Yet, the Egyptians are having a hell of a time now, since they actually just replaced one dictatorship with another (By the West's first choice of Suleman). Today, I heard how Egyptians are being thrown into prisons for their activism on the internet. Doesn't sound like the Egyptian people won anything to me. I think they were fooled.

People ask "why don't Americans do what egyptians or greeks did by hitting the streets"? Well, from what I can tell, none of that even worked!!

So, what is the next game plan for the commoners? Funny how these t*rror acts are always directed at public transits or markets, etc. Wouldn't you think at least a few of these would be directed at the big cheese?

Mon, 08/22/2011 - 11:51 | 1586173 slackrabbit
slackrabbit's picture

meet your new Eu reserve bank governor, damn he looks familiar

 http://ideafix7.files.wordpress.com/2008/11/obama_poster_hitler_yesweca2...

 

Mon, 08/22/2011 - 12:47 | 1586435 Raymond K Hessel
Raymond K Hessel's picture

I'm under the weather. Some sort of virus. I thought I was awake waiting in the doctor's waiting room until I read this article. Whew! I must still be in bed having a stupid nightmare about Germany taking over Europe. Now I'm expecting my nonno to show up in his Italian WWI uniform to repeat his oft-repeated warning: Germany is always busting somebody's balls.

Mon, 08/22/2011 - 13:20 | 1586555 besnook
besnook's picture

very interesting. now if russia and china help underwrite it, which will happen indirectly at least, the new axis will usher in 1000 years of peace under the new empire.

Mon, 08/22/2011 - 14:14 | 1586693 FlatEric
FlatEric's picture

Brilliant report and predictable reactions here on the forum.

If you follow the releases of The Bundesbank you will have noticed that these kinds of announcements is to "their" audience.  The timing of the report and the style of writting tells me that is actually their attempt to make people in Europe shit their pants about what you call the 4th Reich and to prevent the German population to buy the shit that is relentlessly pumped into their brains by the MSM which is "you don't want to be guilty of another war, so get used to the Eurobonds".

I mean they are using their arguments like piano player, who with a sense of artistic concept, will give you gooseflesh when hitting the high keys....only that this is about having gooseflesh form the idea that Nazi Germany is back on track and will bring a concentration camp near you if you accept Eurobonds. Perfect play IMHO.

But all of this is far from reality: The average German want's to end the subsidies to all those who enjoy a free ride on their behalf and if it means to be small and neutral like Switzerland most of them would gladly leave the Euro circus as it has become a sinkhole.

The Euro was a political construction which was forced upon the Germans for having the ok for German Reunification from Paris and London. It was Mitterand and Thatcher that wanted Germany to be harnessed in a certain setup that could be controlled by them. Now the EU is here since the 50s and many countries had the same amount of time and easier conditions (like the WW2 winning nations) but look what they did. Instead of improving their industrail potential many countries like France preferred to take the acgricultural subsidies and stay on basically the same level.

You don't need to be a bright mind to understand that a single currency which is backed on or based on the industrial power of Germany and it's population is TNT. If for example Greece is able to loan money for the same rate overnight as powerful Germany, what else can it be called then an invitation to a big party and this is what they and the others did excessively on the back of the germans. The elites in Athens had nothing better to do to spend the money for the Olympic games 2004 (look at the arenas becoming ruins) or to buy massive amounts of tanks to form the biggest tank army in Europe today. I guess every german general envies them for more than 600 tanks in their arsenal. Or take a look at Spain: The only thing they managed with the cheap money is to blow up a housing bubble of epic proportions while still after 30years of subsidies no reasonable industrial base.

IMHO this is a cultural thing. Either you are of the opinion that wealth comes from hard work or you consider money being made from other peoples work which is especially true for the British. I mean they sacrificed their industry for the sake of the idea of financial services being a valid reolacement for manufacturing. While their society has transformed into a service oriented one, nobody asked the question how you finance such a society without enslaving those who create the wealth by real labor. The US has had the same approach with a different spin, now both countries pay the price. Unfortunately due to their financial power the hold the whole world hostage.

If you ask me you cannot blame Germany or the Germans for the idiocy and complacency of others. In the end certain human qualities will prevail whether your like it or not and one of them is the belief in hard honest work and to create value by it.

 

Mon, 08/22/2011 - 14:14 | 1586841 Uncle Remus
Uncle Remus's picture

blintz krieg

Mon, 08/22/2011 - 14:56 | 1587084 pspengle
pspengle's picture

Excuse me, sounds good in the stadium, but translation is sloppy. Nix Anschluß. This is what the Bundesbank said:

Eine gemeinsame europäische Finanzpolitik oder eine politische Union mit demokratisch legitimierter Weisungsbefugnis einer zentralen Ebene gegenüber der nationalen Haushaltspolitik zeichnet sich auf der politischen Ebene gegenwärtig nicht ab. Damit besteht die Gefahr, dass die Verschuldungsneigung der EWUStaaten
eher noch zunimmt und die gemeinsame Geldpolitik verstärktem Druck zu einer lockeren Ausrichtung ausgesetzt wird. Wenn kein grundsätzlicher Regimewechsel mit weitgehender Aufgabe der nationalen fi s ka lischen Souveränität vollzogen
werden soll, wird es entscheidend sein, den immer noch vertraglich vorgeschriebenen Haftungsausschluss und die damit zusammenhängende Dis ziplinie rung der nationalen Finanzpolitiken über die Kapitalmärkte nicht vollständig zu entkernen, sondern im Gegenteil wieder zu kräftigen.

Mon, 08/22/2011 - 16:41 | 1587530 onearmedlove
onearmedlove's picture

Invading countries with tanks is way harder than becoming their banker.

Mon, 08/22/2011 - 16:46 | 1587542 falak pema
falak pema's picture

there are two types of human animals : those who are prisoners of the past and those who have freed themselves from the past by learning from it...It is in essence what the new europe SHOULD be about, given the Apocalypse they have lived through. If only the real lessons of that branding experience could unite the sons, grandsons, great grandsons of those who were branded, to show the world the wound has now fully cauterised.

Tue, 08/23/2011 - 09:21 | 1589785 Peter K
Peter K's picture

The Feuher would have attained the same goal, if not for those pesky British.

Tue, 01/10/2012 - 05:18 | 2049496 simoniddings
simoniddings's picture

They have their own trump card, a money printer to print endless supply of US dollars to pump into the market. I’m kidding of course; this whole crisis thing just boggles my mind as to how they let it get so far before doing anything about it.

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