This page has been archived and commenting is disabled.
CDU Escalates Plans For EU Treaty 'Adjustment': Wants Option For To Kick Habitually Broke Countries Out Of Eurozone
Yesterday we wrote that according to a Handeslblatt report, Angela Merkel is "investigating ways to enable countries to leave the Euro." Today Handelsblatt has a follow up with some very critical clarifications which change the equations of the European bailout all over again. Yesterday, the Handelsblatt reported that the CDU "wants to make it possible for European Union members to exit the euro area....A commission within the party, that is crafting a framework to be presented at a party meeting, has proposed allowing a euro member who doesn’t want to or isn’t able to comply with the common currency rules to leave the euro region without losing membership in the EU, the newspaper." In other words, the transition out would be "voluntary." So it is somewhat surprising that in under 24 hours we discovery that this proposal has just escalated substantially: according to the just released Handelsblatt update, "The CDU wants to change the EU treaties to not allow the departure of a debt-ridden country from the euro zone, but also their expulsion. From the request for the party on Sunday evening at Leipzig, by the Handelsblatt (Friday edition), the crucial word "voluntary" was deleted."
The google translation continues: "The relevant passage, which the party chairman and Chancellor Angela Merkel could not ignore politics is now "a member state of the monetary union should not be permanently willing or be able to comply with the common currency related rules, a departure from the € zone be possible without leaving the European Union. It is equal to other Member States which do not have the Euro currency. " In the original version of the resignation should be made possible only voluntarily." The conclusion: "The topic is likely the CDU party congress next week to play a central role. Have in the Commission proposal for the Congress about it already been a fierce debate, told the Handelsblatt of participants. Currently there is no provision in the EU Treaty, a country leaves the euro zone again." That Germany continues to stick a finger into the scab of the possibility of a two-track Eurozone should be quite concernging as it means that the CDU is fighting tooth and nail to preserve reelection chances, even at the expense of jettisoning stragglers such as Greece and Italy. Obviously this is predicated by popular demand. It appears that the German "anger" which we predicted back in July 21 is finally starting to boil up to the surface.
»
- 9674 reads
- Printer-friendly version
- Send to friend
- advertisements -
Get out, bitchez
At least they're giving us an exit strategy...
Germans have themselves to blame: Why did they invite the PIIGS to the party to begin with?
Cause everybody told us to be the good guys now. ;-)
Weimer, Hitler, that horrible Eurovision song from last year. You mofos are better off forgetting...
Weimar is a nice city.
There you go. Think warm thoughts. Unlike the grim Kant, Hamann is great read. Heine too.
Damn. I love Kant.
That's disappointing.
You should read Herder's Metakritik. Best German philosophy book around.
Herder is a giant few people know about.
Englad was kept out but in as a test case.
it worked.
England is ruined.
Unwashed, Wrung, Re-tired
ORI
Caveat Emptor
cuz Goldman Sachs gave the PIIGs a nice shade of lipstick
I would give you 1,000 green arrows!
The PIIGS Pheromones were alluring. But they fermented into Fearomones.
"cuz Goldman Sachs gave the PIIGs a nice shade of lipstick"
Bellysnort!!!
Musta been red
Boy, you MU's sure can party...
http://www.youtube.com/watch?v=er1EmGt_mAA
Your exactly right, many of those PIIGS shouldn't have been able to get into the EU much less the euro. I think it was three things. One, the bigger countries saw this as an opportunity to control the smaller ones financially and they needed them to buy or take much of their excess exports and services. Two the elite in the banking and govt. circles wanted a union of europe in order to push their new world agenda. And three, they where presented information that was cooked by Goldman Sachs to help countries like Greece and others to look viable for the EU.
Markets are ripe to crash.
This is far worse than 2008-2009, which didn't involve intractable problems (there may be something that some term a 'solution' in the offing, but it will be a sad joke and farce, as all proposed solutions to date have been, and it will inevitably involve massive pain to the maximum amount of 'risk on players' for an extended, butt hurt period of time) having to do with SOVEREIGNS and their nationalized 'private' banks.
Furthermore, back in 2008-2009 there was a cushion that had both accrued on balance sheets (as phantom and fleeting as it was) that could be whittled away at and used as a buffering method of trying to engineer a less hard landing (as hard as the landing turned out to be) and central banks, including the one headed by The Bernank, hadn't shot their wad.
Add to the accumulated private and public sector debt, which now desperately needs to be deleveraged, the incredibly economic fundamental weakness and 'jobs debt', which have only grown greater since 2008, giving less of an ability for monetary policy makers, governments (who've seen revenue fall and the outlook for future revenue get bleaker) and private sector actors to 'get their consumption on,' and I'm going to bet we're now underway in the 2nd wave of the financial and economic that everyone has been anticipating, yet hoping wouldn't arrive, or could be postponed further (unless they were short, in which case, they are probably about to have a very good stretch).
*p.s. The Bernank & Paulson-Geithner, instead of letting the forest fire clear out all of the dead wood, scrub and other flammable material that maks for great ignition sources of future and more damaging forest fires, doused the fire in 2008-2009 with TARP/TALF/QE1, 2, 2.5 injections, rescuing the Very Important Friends of the New York Branch of the Federal Reserve 'Bank,' while failing to do anything remotely constructive in addressing the fundamental illness of the real economy, and the bitch is going to burn hotter this time.
In a world where 2 + 2 = 4, there's no way PIIGs or Germany doesn't exit in 12 months. They're giving the plutocracy time to buy hard, or convert assets, before the middle class is left holding the bag.
Class struggle is more pronounced now than at any time in the last half century. But it is being masked by the public relations industry.
Without cheap, and easy credit scar tissues are being exposed.
#occupywallstreet.
Presently the "middle class" is the buffer between poverty and wealth.
As a buffer they act as bootlickers to the top and kicking down on the bottom. When they change their loyalties and recognize the top for what it is, an insatiable parasite with no productive value to the rest of the world, it will be too late.
The bottom never had a chance to get heard. The top plays the middle very well until the top doesn't care anymore!
Until the middle can longer support the top.
This. The paradox of production
That's always what the middle class is... it's just that there are less people to complain when the middle class is a higher % of the populace and the table scraps are larger... in other words, the problem is less noticeable... but ever present.
The same in virtually any system... more or less.
Sometimes you make stone-cold sense and I think you deserve green(pun intended) but then you do this:
'#occupywallstreet.'
“If you're not a liberal at twenty you have no heart, if you're not a conservative at forty you have no brain.” -W. Churchill
Well, in Churchills time that made sense - if you had a bit of education or some heritad weatlh, at 40 you were a made man, and, of course interested in maintaining the status quo.
But today?
I just wanted to add one comment about something the Abby Joseph 'I Make Money Even If You Lose Your Ass/iTulip' Cohen's of the world spout off about all the time; the notion (pun intended?) that there's publicly traded U.S. corporations are flush with cash.
Abby would never complete what could be a constructive and rational fully analyzed assessment by adding to that statement that these same U.S. publicly traded corporations have now accrued a record 12+ trillion in debt.
But not to worry, "there's a lot of cash on the sidelines" (much of it in highly volatile, *subject to quick and painful loss account types, not to exclude 401(k)s, and all will be well, according to cnBSc.
' "there's a lot of cash on the sidelines" (much of it in highly volatile, *subject to quick and painful loss account types, not to exclude 401(k)s, and all will be well, according to cnBSc. '
Uh-huh. At best, if there's any left, it is immobile.
#occupy-non-federal-non-reserve.
You gotta love those "Christian" Democrats!
Td--been thinking, and maybe this is a bit egocentric, but it seems like whenever you guys expose something that is going to nuke the market, tptb immediately dump all their resources into masking the problem. Since this is the only credible skeptical analysis forum out there that moves in real time, I'm convinced that tptb are assiduously monitoring this site to figure out where the fire is that they have to put out--what I'm getting at is, next time you guys see a really nasty hole in the market, maybe keep it to yourselves for a while and see if they figure it out on their own or not. Hate to think zh is inadvertently doing the idiots a huge favor....
Death to the EuroPonzi!!
O/T just shorted oil
I'm frozen... I want to... just can't bring myself to do it. I was thinking clearly earlier but now I'm self-conscious. Yesterday it should've been down three bucks IMO.
What a bunch of fucking idiots! No sympathy.
Such artfulness! We are being presented with some of the best theater the world has seen since -- well I suppose since some time in the 1700's.
That's the ticket Merkel. Allow them to exit and at the same time to save face. You go girl!
This is just the next step in their Hegel exercises. The backlash from which will create the mandate they could not achieve via the ballot box years ago.
"Voluntary" with a gun to your head.
VolunTOLD!
Market talk that Italian PM Berlusconi is to stay in power
The market has been real chatty today
I wonder if this has anything to do with the recent ISDA "no such thing as a voluntary default" decision? In other words, if a euro member voluntarily leaves the euro (with intent to depreciate like hell), it doesn't count as a credit event.
Well, they're just words. It isn't like they mean anything.
I think the voluntary part was going to be a way for Germany to opt out and say " To hell with all of this shit "
wouldn't blame them. i was under the impression they were reluctant to sign that treaty from the get go.
http://www.infowars.com/nigel-farage-to-eu-i-want-you-all-fired/
I love that guy. I wish we had a few like him in our body politic.
Which body politic ?
USA ?
USA has Ron Paul.
We do have him but beyond him it's a bunch of people who sold their souls a long time ago.
We might have a few, actually. But if so you can assume the media mouthpiece won't air them.
Protecting our sacred institutions. Or at least that will be their excuse, some day.
HAHAHAHA
Are those "PI(I)GS" on his tie?!
That makes a point on so many levels. Absolutely priceless.
Is there a translation of this translation? Out of the EMU but not out of the EU? Huh?
The Germans would be cutting off their nose to spite their face if they develop a two tiered euro zone. There will always be weaker and stronger countries in any assemblage of states. The trick is to develop a cohesive fiscal and monetary policy that benefits all and helps lift the weak not denegrate, threaten and step on them.
Sure, but if the cost of bailing out your own vs bailing out others is substantially lower that it's an easy calculation... people divorce all the time...
you, you can leave, but the goats stay!
you can leave, but the gold stays. (fixed it for ya!).
This is good news to those who value freedom. Historically, it has been difficult to exit empires. The EU move is a step in the right direction and nice to see someone taking the lead.
No way. This is a head-fake to create a reaction in order to set the hook.
Freedom is never an option for these people, as it invalidates their existence.
What does it even mean? If they keep on doing payments to each other, that they will get an invasion? If a greek shopkeeper wants to accept euros and a buyer wants to pay him with euros, who is the CDU to stop them?
Ok, they do not get any influence on interest rate decisions of the ECB, but that is not a big loss. Greek banks can no longer borrow at discount rate at the ECB? That is not a big loss either. The only thing that still matter is: do German/Dutch/Finnish banks get bailout on their Greek loans. It has nothing to do with Greece anymore. Their exit will not matter. They could just as well start using the dollar.
To me it means 'Baffle em with bullshit' is their only option left.
Earthquake in Greece, no joke, 5.2 or so.
Link -
http://quakes.globalincidentmap.com/
the rally is stretched now. the S&P fudge of France/Obama making no sense/ECB pitiful backstop won't stop CDS spreads from widening...the market knows the EZ is going into a recession. of course Italy will leave the EU.
the doomsday trade remains
and I repeat the doomsday trade remains. check your charts. short pos on despite french a-wipes.
broken bond markets and all.
things don't seem to translate well into and out of the german language
this is what led to the Reformation
You are fired [insert PIIGS names]!
XRT $4 off world record highs
$15 to $52 since March 2009
In the midst of another "credit convulsion"
Where's the recession?
Consumers can't wait for "Black Friday"
http://www.marketwatch.com/story/black-friday-fervor-begins-earlier-than...
How does that fit into the world coming apart thesis? Are you suggesting that being long equities from 09 was better than being short equities?
Robo doesnt know, he just finds a stock thats up and posts about it pretending he owns it.
Sad really.
<Consumers can't wait for "Black Friday">
Deflation, bitch.
Running into 13, 20 w/ macs and RSI rolling over.
Agreed, most still have a lot of room on the credit card or because they aren't paying the mortgage.
Carpe diem.
Wouldnt it be fun to show up an hour before 'Black Friday' and just mow down a few hundred morons with machine guns?
Sheep dog, you got to let the sheeple have a little fun, c'mon on.
robo, i believe its the retailers that cant wait for black friday.
So the EU isn't breaking up and no one is being kicked out. However, any body can leave if they want...a non-break up break up. Bwahaaaaaa!
Gold and silver are kind of counter intuitive to their usual moves today. Seems a bit odd.
stocks look heavy....looking primed for a major sell towards the close.
S&P "accidentally" downgrades French debt?
You hear this shit yet...
http://www.washingtonpost.com/business/sandp-says-frances-rating-unchanged-at-aaa-calls-earlier-message-on-downgrade-accidental/2011/11/10/gIQAEeH98M_story.html
As I understand the current situation, a nation that leaves the eurozone must also leave the European Union. That does sound totally stupid to me but then that’s me.
Bunga Bunga and ZarKotzy to face the axe. Strictly voluntarily, of course.
Anyone with a 'Gold Card' can stay in the Euroclub
Why does Handeslblatt quote gold in USD on their home page? Something wrong with the euro?
Because it´s priced in Dollar. The moment gold is priced in Euro you´ll pay 10 Dollar for a gallon of gas.
tight. market is topped. bond yields again
The Euro is going down.
Between now and then there will be a nearly endless train of Euro fluffers proclaiming that it "can't happen" or "won't happen" or is "highly unlikely", all the way until the caboose that says "France and Germany will retain the Euro until member nations can rejoin it".
Then...currency re-pegs, defaults, and real crisis (not the sticky marshmallows of the past year).
There are too many banks with positions to unwind for anyone in the Fourth Estate to tell the truth.
Which nations meet the 60% debt-to-GDP and 3% budget deficit requirement ?
Very, very few.
Depends on who you hire to do your accounting. LOL.
YouOwe Zone.
Things must be serious if the Illuminati are directly putting forward their stooges Papdemos and Monti as Prime Ministers of tinpot banana republics in south eastern Europe ... so much for pretence of 'democracy'.... now we see what utter rubbish this 'democracy' propaganda is .... tricky as they will have to replace Sarkozy in the next few days... Trichet to head a new 'coalition' government... fortunately the sheeple are too stupid to notice that they are all just slaves...
LOL yea exactly.
Of course it 'narrowly passed', it always does, after a puppet show to keep the people in their Demican or Republicrat pens rooting for either Punch or Judy to 'win for them'.
The sheeple are still too fukin dumb to get it, 'Oh, I guess this is good for stawks or bonds'...man one of these mornings is going to be a real doozie. And I cant even say I blame 'TPTB', theyre the ones who long ago had the brains and balls to say 'The people are fukin self absorbed idiots, lets form a club, and rule the hell out of these slaves'.
just limit it to countries with blue eyes and latin base alpahbets, problem solved
Ireland?
Absolutely NOT, those white nig---ers can go F them selves
Deutsch wird gesprochen in der ueberholspuer Teil der EU.
The only thing that matters is whether someone is forced to, or stupid enough to buy bad sovereign debt. It doesn't matter what it is denominated in. How would this stop Greece from borrowing Euros? How would it help them repay loans denominated in Euros? Are banks required to buy this debt now?
The baby is in the oven. It is already cooked. Either print money or let the morons who bought PIIGS debt go under.
"...you can check out anytime you like, but you can never leave..."
send in the HFT clown support crew, cept no bids coming. look at the dow.
Time to flush Euro turds down the toilet.
The German people would like to be kicked out of the eurozone asap.
The CDU/FDP are the only parties in Germany that are capable of such non-socialist policies, SPD/Grün if come to power will open up Unlimited Credit lines to all PIIGS and bankrupt Germany within this decade. Not that I like any major parties but that's the only option atm
kill em all those PIIGS...let God choose his own! Financial orthodoxy like Papal orthodoxy...we are what we do...
Quote :
Guest Post: Is There No Shame?
Not if your a sucker for the ponzi..
Just when they've gotten an even better, more predictable puppet to rule Greece? Awww, shucks... Maybe this is just a threat to keep everybody in line.
By non-compliance, I guess they mean the country's economy failed to improve under austerity. They don't question the austerity. No. Why would cutting people's pay and firing people during a time of record unemployment hurt anybody?
"Voluntary" is "transitional" bitchez.
Ask the ISDA and Benny Bernanke.