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The Euro Bailout Fund (Which Does Not Exist) Is Being Delayed, As Germany Fires Back Against Broke Europe

Tyler Durden's picture




 

Overnight, the WSJ had an interesting article starting with "Italy, France and Spain are trying to take a united stand against Germany in finding new ways to fight the euro-zone debt crisis." This merely confirms what Greece has been trying to tell us for months: that beggars can be choosers. Well, turns out they can't, because at the end of the day, the only thing that does matter is the Golden Rule as Mark Grant reminded us earlier. Which is why trying to force Germany to do anything will backfire massively - as a reminder: it is in Germany interest to keep Europe weak, the EURUSD low, and the periphery on the edge of insolvency (just memorize the bolded sentence - it is all you need to know about Europe). Case in point: "Germany's constitutional court said on Thursday it will need time to study the euro zone's permanent bailout mechanism after its expected approval in the German parliament next Friday, which could delay its scheduled start date on July 1." In other words, the bailout fund on which Europe's entire rescue dreams lie (and which will gladly subordinate European creditors) and which still does not exist, is now being delayed. You are welcome Europe. Love, Germany.

From Reuters:

Angela Merkel's government and the centre-left opposition reached a deal on economic growth measures on Thursday which should enable parliament to ratify Merkel's fiscal pact and the European Stability Mechanism (ESM) on June 29.

 

The ESM cannot come into effect without ratification by Germany, the biggest economy in the euro zone. But a spokeswoman for the top court said the ESM is so complex it expects head of state Joachim Gauck to delay his signature of the text approved by parliament until the court has had time to study it.

And all it takes is for some of Germany's more vocal media outlets to grasp that Germany's claims on the Eurozone are now being diluted even more courtesy of the ECB accepting any collateral, before the so-called deal, pre-delay, falls apart.

 

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Thu, 06/21/2012 - 09:55 | 2546809 toothpicker
toothpicker's picture

Messerschmitterz bitchez

Thu, 06/21/2012 - 09:58 | 2546839 Eireann go Brach
Eireann go Brach's picture

Doucheland vertz fartface derr Hitlar!...sorry I am still learning my German!

Thu, 06/21/2012 - 10:20 | 2546975 OttoMBMP
OttoMBMP's picture

Carpet Bombers learning German? Why?

Preparing the next occupation to teach us British values, democracy and stuff?

Thu, 06/21/2012 - 11:26 | 2547297 Popo
Popo's picture

Can we take a moment to ask why Eurozone debt crisis called a "crisis"?  How can something that's your own fault be called a "crisis"?   This is just called "being broke".   It's not an "Act of God".   You didn't get hit by a tornado,  Europe.  You spent much more than you had, and you made idiotic economic policy for political convenience -- for a period of decades.

Now they're finally shit-out-of-cash and trying to spin this like it's some cosmic event that happened "to them", and not "because of them" by using words like "crisis".

And  can we stop calling it "Recapitalization" and call it for what it is:  "Handing out free money".   The banks aren't asking to be "recapitalized".  They're asking for free money, because of the "crisis" ... I mean, because they're broke.

And while we're at it can we stop pretending that the banking system is some kind of "public work"?  It's a private cartel owned by the one percent.

"Recapitalizing" banks because of the "crisis" is (ergo) another way of saying: "Handing out free money to the one percent because they're broke".  

It's bad enough seeing these b.s. semantics in the mainstream, but at least here we should call them for what they are...

Thu, 06/21/2012 - 11:46 | 2547432 WhiteNight123129
WhiteNight123129's picture

EU is in a crisis because it can not print as easily as Britain and US. But the earlier in the debt cycle you have a crisis and the earlier you default recognize the problem, the better. Maybe the Debt to GDP in the US or UK should expand further thanks to the printing press and then what? UNLESS YOU ARE COMING FROM HONG-KONG OR SINGAPORE, I would dismiss your comment. I can not see why Europe should take lectures from people in the US or UK.

 

Thu, 06/21/2012 - 11:54 | 2547468 Carl Spackler
Carl Spackler's picture

Europe is BROKE, because socialism is a FAILURE.  (Newsflash: Getting everything or goods and services for nothing is impossible in this world)

The U.S. is headed in the same direction because certain charlatans here have tried to implement socialism and its bogus claims.  The bills for this are coming due and there are no resources to pay for the utopian commitments of the charlatans.

Thu, 06/21/2012 - 11:48 | 2547441 Carl Spackler
Carl Spackler's picture

Thank you, Popo !

The truth is what is needed, and you boldy go where no Euro phony goes.

Thu, 06/21/2012 - 12:11 | 2547538 JR
JR's picture

Ah, but the bankers’ “commercial tricks and statutory maneuvers which have poisoned the arteries of the civilized world” were designed to create responses from the people that they were faced with a crisis and, therefore, must make sacrifices, such as lower standards of living and surrender of sovereignty.

John Chrysostum  writes: “The fiat dollar ascribes value to that which has no value…it violates the law on just weights and balances in Leviticus 19:6. You cannot weigh in justice a fiat fractional credit intrinsically worth nothing against say a diamond necklace (or a Greek island?). The balance is not just, and it is a fraud forbidden as stealing (Exodus 20:15).

“Therefore, under Biblical logic there would be no reason for a commercial loan under no interest as the risk to the lender would be to lose all he lent against no hope of gain. And if the loan were not paid by the year of release… he would lose it all anyway…  Therefore, the transaction would be prudent and wise to be constructed under a partnership where he shares the risks and rewards of the venture in a just manner.” 

Thu, 06/21/2012 - 11:44 | 2547412 WhiteNight123129
WhiteNight123129's picture

Otto, I am French, but I am with you on that. Just keep your head cold in Germany. It is an epic fight. A few people started the first world war, send men to be butchered, ruined the widows with inflation and bought conglomerates with paper money (Hugo Stinnes) and then in WWI all the blame was put on Germany. Get back your sovereignty fully after one century, get back your great culture (fantastic classical music and great litterature, in paintings I think you guys suck but that is my opinion). We might split the currency but the frogs are the krauts are not going to fight each other this time around. Don t print in Germany, resist, YOU ARE ON THE GOOD SIDE OF THE FIGHT THIS TIME AROUND.

Thu, 06/21/2012 - 11:51 | 2547463 OttoMBMP
OttoMBMP's picture

Thank you, WhiteNight.

I think (I hope), a majority of people understand now, that this is not about nations, just about right or wrong.

And: Vive la France!

Thu, 06/21/2012 - 10:07 | 2546890 morning_glory
morning_glory's picture

There were fokkers above me, fokkers below me. Fokkers ahead, and fokkers behind me. And those fokkers were all flying Messerschmitterz bitchez.

Thu, 06/21/2012 - 12:06 | 2547528 rotagen
rotagen's picture

er...Fokker? Hardly know her.

Thu, 06/21/2012 - 09:56 | 2546818 battle axe
battle axe's picture

Germany, the bullet is in flight, and you have a big fat Target tattooed on your forehead. 

Thu, 06/21/2012 - 09:58 | 2546823 Abraxas
Abraxas's picture

I feel like a gold-fish with a two-second memory span. They yell Spain and I quickly run and focus my attention there, then they scream US debt and I run there, then someone whispers the bleak situation we all are in and I become depressed, and then someone else warns about coming crash in stocks and commodities and I tremble, then goes Syria and Iran and Israel, after which we jump to Egypt, Greece, Italy, Zimbabwe … That’s it, I want to get off of this rollercoaster.

Thu, 06/21/2012 - 10:31 | 2547032 Impotent_Smurf
Impotent_Smurf's picture

You can't get off. Alcohol helps.

Thu, 06/21/2012 - 11:03 | 2547207 Abraxas
Abraxas's picture

Smurfs drink???

Thu, 06/21/2012 - 11:21 | 2547314 JR
JR's picture

It’s called breakdown; not yours, theirs, the global cartel's.

Thu, 06/21/2012 - 09:57 | 2546829 OttoMBMP
OttoMBMP's picture

"... it is in Germany interest to keep Europe weak, the EURUSD low, and the periphery on the edge of insolvency"

Not true. It is in Germany's interest to honour its constitution and not to bankrupt itself for a lost cause.

Thu, 06/21/2012 - 10:18 | 2546966 GCT
GCT's picture

+1 Otto so true.

Thu, 06/21/2012 - 11:49 | 2547442 WhiteNight123129
WhiteNight123129's picture

Go Otto!

Thu, 06/21/2012 - 09:57 | 2546837 Instant Wealth
Instant Wealth's picture

... and Schaeuble is pissed. Wonderful!

Thu, 06/21/2012 - 10:08 | 2546897 Instant Wealth
Instant Wealth's picture

Fuck you, Schaeuble!

Thu, 06/21/2012 - 10:25 | 2547008 OttoMBMP
OttoMBMP's picture

Indeed!!!!

Thu, 06/21/2012 - 10:01 | 2546858 jtmo3
jtmo3's picture

Show of hands for anyone who REALLY thinks the german court will not give it's stamp of approval in the end? No, reallY.

Thu, 06/21/2012 - 10:07 | 2546887 Dr. Engali
Dr. Engali's picture

They will give their stamp of approval once the Eur/USD hit's the appropriate level.

Thu, 06/21/2012 - 11:44 | 2547408 Roger Knights
Roger Knights's picture

I think there's a chance the court will say No. That's the conclusion that a reading of the treaty would lead to. Rechtig ist Rechtig and all that.

Thu, 06/21/2012 - 10:05 | 2546874 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

May housing falls 1%, UE is still high, stocks are scaring the sheeple!  What to do!?  Bernanke, please give us the free moniez! 

Thu, 06/21/2012 - 10:06 | 2546885 the 300000000th...
the 300000000th percent's picture

Perfect time for a false flag attack

Thu, 06/21/2012 - 11:23 | 2547332 Nobody For President
Nobody For President's picture

Don't even think it!

Current Straits of Hormuz make a tinder box look wet.

Thu, 06/21/2012 - 10:07 | 2546892 bigwavedave
bigwavedave's picture

Filly Fed Fucked. Wow!

Thu, 06/21/2012 - 10:09 | 2546900 adr
adr's picture

Just the words "Permanent bailout fund" make me want to go postal.

Thu, 06/21/2012 - 10:09 | 2546903 sudzee
sudzee's picture

Me thinks the shit mountain is leaning a bit toward PAPER PEAK MONEY and PAPER PEAK ASSETS. All the Kings men and all the Kings horses can't hold this shitpile up forever.

Thu, 06/21/2012 - 10:10 | 2546912 mrktwtch2
mrktwtch2's picture

the longer they delay the medicine..the bigger the cancer gets..until it threatens the host (germany)..strange that a country that was totally destroyed 67 yrs ago is now calling the shots again in europe..

Thu, 06/21/2012 - 10:23 | 2546993 OttoMBMP
OttoMBMP's picture

Strange! Think about it.

What medicine are you talking about BTW?

Thu, 06/21/2012 - 10:15 | 2546940 semperfi
semperfi's picture

In the 1900's Germany tried to dominate Europe overtly by military force.  They failed, did some post-mortem analysis, and came up with a better plan.  So in the 2000's they are now dominating Europe economically and financially, with the rest of Europe coming to them on their collective hands-and-knees begging them.  Yet another brilliant plan!!!  Germans really are the smartest of the Europeans. 

Thu, 06/21/2012 - 10:24 | 2547000 OttoMBMP
OttoMBMP's picture

Is this an ex-empire, ex-wave ruling carpet bomber, soon muslim, writing?

Thu, 06/21/2012 - 11:04 | 2547215 JimBowie1958
JimBowie1958's picture

It's sort of Germany's version of neo-colonialism, but targeted at Europe instead of a third world country.

Thu, 06/21/2012 - 11:50 | 2547466 JR
JR's picture

The role of two men cast a different slant on your "history." Here is How two banksters led Europe to ruin by Jerome Roos on June 12, 2011:

"In Frankfurt, two of Europe’s most powerful men sit virtually across the street from one another in the high-rise headquarters of two of the continent’s most important institutions. No one elected these men to rule over us. No one voted for their institutions to dictate our economic policy. Yet they do.

Meet Jean-Claude Trichet and Josef Ackermann.

The former is the departing head of the European Central Bank and was recently ranked one of the five most powerful people in the world by Newsweek. The latter is the head of the largest private bank in the eurozone, Deutsche Bank, and was just named the 'most powerful banker in Europe' by the New York Times. Neither was elected to run the economy. Yet, together, they do.

"In fact, both men have been instrumental in shaping the EU policy response to the crippling debt crisis that continues to haunt the eurozone. As the Times reported in a powerful feature today, Mr. Ackermann 'is at the center of more concentric circles of power than any other banker on the continent.' Indeed…

"At the same time, the NYT notes, Ackermann is 'possibly the most dangerous' banker in Europe too. After all, 'it is no secret where Mr. Ackermann’s financial allegiances lie: with the banks.' For example, Ackermann 'has insisted that providing some sort of debt relief for Greece would be a huge mistake.' …

"Not coincidentally, 'Mr. Ackermann … seems to enjoy a good relationship with Jean-Claude Trichet.' When Merkel suggested that private lenders might have to take a share of the burden, Ackermann 'opposed the German government and sided with his friend Mr. Trichet … in arguing against restructuring the Greek debt, which would force investors — and banks — to share Greece’s pain.'”

BTW, these global central planners aren’t “German”; they are Jewish international bankers.

http://roarmag.org/2011/06/deutsche-bank-ecb-greek-debt-crisis/

Thu, 06/21/2012 - 12:11 | 2547536 OttoMBMP
OttoMBMP's picture

To blame "ze Germans" is stupid.

To blame "the Jews" is equally stupid.

Thu, 06/21/2012 - 12:37 | 2547630 JR
JR's picture

Somebody is to blame, and to blame the German people is not only stupid, as you say, it is Zionist propaganda.

George Ratzinger, a clergyman with a doctorate in theology and a representative in the Bavarian state legislature and the great uncle of the current pope, wrote in 1892 that usury was the cause of the economic crisis that was gripping Europe at the time.  He wrote: “The Jews had to recognize the Christian social order and had to submit themselves to it. Whatever they had appropriated through usury and exploitation, they had to pay back to their victims.”

Civilta Cattolica, an informal organ of the Vatican, warned at the time of “the voracious octopus of Judaism.”

Perhaps to the “modern” interpretation of Jews and Society this would be considered radical, anti-Semitic, and objectionable. But, for some, that term octopus would certainly ring a bell.

Samuel Roth, Jewish, has said worse things about Jewish business ethics: “Each of them, when he grows up, becomes an agency of cunning to defeat the civil law. The Polish Jew does not remain in Poland. He migrates. Eventually he finds himself a rich nest in England, in France, in Germany, in America, in one of the South American countries. To each of the countries of his invasion the Jew brings the whole bag of commercial tricks and statutory maneuvers with which he poisons the arteries of the civilized world.”

Thu, 06/21/2012 - 11:59 | 2547499 WhiteNight123129
WhiteNight123129's picture

STFU semperfu and I am French, and I had a great-grand uncle soldier going in the trenches in charge of finishing the badly wounded Germans with a knife (nettoyeur de boyaux) , and I had a great-grand father during second world war in jail as a ~terrorist~ that is resistant, weighing 110 pounds when he got out of jail. The Kaiser was an idiot, everyone knows that,  but please read your history. The first world war was started by a handful of fuckers, Germany was not more responsible than any other nation in WWI, they just got all the blame because they lost. Germany was a threat to the British interests because its industry was getting stronger and stronger, the French were obsessed with Alsace-Lorraine that we lost because of the stupid Napoleon III and the Kaiser Whilhem II was an idiot.

Thu, 06/21/2012 - 10:19 | 2546976 lolmao500
lolmao500's picture

When will Germany cut the crap and get the fuck out of the EURO already???

Thu, 06/21/2012 - 10:38 | 2547072 Kina
Kina's picture

They all know this is a ponzi that will collapse, it is inevitable of course.  But the banks want as much taxpayer money as they can get in the meantime.

What they don't want is Germany to be the last man standing with too much economic strength. They want Germany ruined with the rest of them so they are all on the same level.

 

This is about trying to force Germany to fuck themselves up like the rest.

Thu, 06/21/2012 - 10:51 | 2547140 OttoMBMP
OttoMBMP's picture

Very true.

Same disaster and panic level for all, allowing TPTB to install full-blown EUSSR dictatorship.

Thu, 06/21/2012 - 12:18 | 2547556 Sandmann
Sandmann's picture

The Anglo-Amer?cans are try?ng for a re-run of JCS1067 and The Morgenthau Plan. They had a crack at destroy?ng Germany and extract?nmg Reparat?ons for the?r Sov?et bosses and del?ver?ng German slave labour to France and the USSR 1945-51......seems they th?nk they can pull the same stunt aga?n. Go look up how much Slave Labour the US del?vered to France from Germany AFTER WW2 and how many were starved to death

Thu, 06/21/2012 - 10:42 | 2547088 Gringo Viejo
Gringo Viejo's picture

Get Schultze on the horn. He'll straighten shit out for 'em.

"I SEE NOTHING!"

Thu, 06/21/2012 - 10:58 | 2547177 RoadKill
RoadKill's picture

Anybody found a good Nigel Farge in the German Parliment. I cant beliece no one over there is yelling and screaming about France Spain and Italy pushing Germany around and stealing their lunch money.

Thu, 06/21/2012 - 11:22 | 2547324 OttoMBMP
OttoMBMP's picture

There are 2 or 3 good guys. All much too polite, though.

- Peter Gauweiler, CSU

- Frank Schäffler, FDP

Thu, 06/21/2012 - 11:22 | 2547326 kikkoman
kikkoman's picture

no.

There's one guy, Schäffler, in the FDP (libertarian, junior coalition partner) who tried to force his party to deny the Greek bailout via a party referendum (they have that in their statutes). Unfortunately, he lacks Farage's panache.

Chances were good, but he was basically denied access to his voters. Had he succeeded, the FDP would have been forced to abandon their support for the official pro-bailout stance.

Bunch of wankers.

Recently, they tried by law to muzzle parlamentarians who are not in line with their respective party's opinion.

Didn't succeed, thank god.

Thu, 06/21/2012 - 10:59 | 2547187 icanhasbailout
icanhasbailout's picture

There is no word in Greek for "insolvent"... and I'm not joking, the word does not exist in that language.

Thu, 06/21/2012 - 11:11 | 2547254 Instant Wealth
Instant Wealth's picture

The greek word for insolvency is bailout.

Thu, 06/21/2012 - 12:36 | 2547623 tocointhephrase
tocointhephrase's picture

Unfortunately ZH does not yet cater for greek letters (yet)!

Thu, 06/21/2012 - 11:25 | 2547339 LouisDega
LouisDega's picture

It does not exist?  Here here

Thu, 06/21/2012 - 13:27 | 2547827 lizzy36
lizzy36's picture

Before twitter broket #stopESM was trending in Germany.

Thu, 06/21/2012 - 18:08 | 2548958 elwu
elwu's picture

"as a reminder: it is in Germany interest to keep Europe weak, the EURUSD low, and the periphery on the edge of insolvency"

No it isn't. This theory is plain stupid. In relity it is quite the contrary. It is in Germanys interest that the rest of the Eurozone becomes self-dependend instead of demanding more and more transfers from Germany. Because this transfer union will not only drive Germanys refinancing costs skywards and its global competitiveness downwards, but most of all will within short cause the German people to get very, very angry with their government and the thankless beneficiary nations in the Eurozone. Rightly so. And nobody should want the Germans to become very angry because other nations keep their standard of living high on German costs.

No Versailles 2.0. when will you get it? 

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