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Karlsruhe Decision: German Taxpayer Pillage Can Continue (But With EUR190bn Cap)

Tyler Durden's picture





 

UPDATE: EURUSD unsure - but seems like 'Unlimited' ECB Bazooka's trigger (ESM) is now capped at EUR190bn from Germany.

The Kardinals of Karlsuhe kame through. As somewhat expected, they declined the complaint that, simply put - and among many other things, the ESM structure (i.e. German payments into it) stretches German constitutionality and can proceed to a broader vote next year - but basically - in a nutshell - there's no coming back now. As expected there are conditions though - that the market seems perturbed by:

  • *GERMAN COURT ALLOWS ESM RATIFICATION WITH CONDITIONS :13347Z US
  • *GERMANY MUST SET CAP FOR LIABILITY UNDER ESM WEHEN RATIFYING
  • *GERMANY MUST MAKE SURE ITS ESM SHARE IS CAPPED AT EU190 BLN

Limited ESM (primary market) vs Unlimited secondary bond market buying (OMT). Go figure it out

 

Pre-Karlsruhe: EUR 1.2870, Spain 10Y 5.677%, ES 1434, 10Y TSY 1.7100%, 10Y Bund 1.5700%, BE500 (Stocks) 187.13 (as the decision was made EURUSD cracked 60 pips lower and back up - perfectly normal algo stop-run)

Post-Decision (positive reaction): EUR 1.2895 (+25pips), Spain 10Y 5.70% (+3bps), 10Y TSY 1.732% (+2bps), 10Y Bund 1.614% (+4bps),  BE500 (stocks) 187.7 (+.57)

 


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Wed, 09/12/2012 - 04:17 | Link to Comment financial apoca...
financial apocalyptic contagion's picture

sell outs

Wed, 09/12/2012 - 04:30 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Merkel rolling over, supporting Draghi and ECB ... German court rolling over ...

What about Mark 'jack in the box' Grant and the other pundits ... who have been saying for weeks that the 'tough hard-money Germans' were just not gonna go along with paying for other countries and bond-buying ...

Whereas many of us said all along that Germans only talk tough for domestic politics, but they will roll over ... must  protect the German banks, insurers and pension funds, after all

QE to infinity, in many ways and many forms ... what the banks need and want will be provided ... as Jim Sinclair said long ago

 

Wed, 09/12/2012 - 04:39 | Link to Comment spdrdr
spdrdr's picture

Exactly, bank guy.

Jim Sinclair has been 100% correct so far, although I personally think he is becoming a slight bit deranged as of late.

However, to be fair, if the recent ramblings have been a rational response to current events by JS, then we are all well and truly fucked. 

{Insert your favourite invisible all-powerful entity's name here} save us all.

Wed, 09/12/2012 - 04:44 | Link to Comment mick_richfield
mick_richfield's picture

 

{Insert your favourite invisible all-powerful entity's name here}

John Galt.

Wed, 09/12/2012 - 05:02 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

No different to any other Bill, just Steam-Roll the fucker through and we'll fix-up all the minor points later...190B Euro will become 1.9T Euro given enough time and enough Political ill-will.

Bullish Gold tho!

Wed, 09/12/2012 - 05:48 | Link to Comment Comay Mierda
Comay Mierda's picture

I heard Chief Justice John Roberts called the German Court to give them pointers on how to shit on their constitution

Wed, 09/12/2012 - 05:55 | Link to Comment Popo
Popo's picture

Too bad 190 Billion will be gone in about 6 months and we'll be right back where we are now, except in a deeper hole.

Carry on.  The debt and spending problems have apparently been solved with more debt and spending.  What could go wrong?

Wed, 09/12/2012 - 08:48 | Link to Comment fonzannoon
fonzannoon's picture

Mark Grant can stop playing with his war figurines in his mom's basement now.

Wed, 09/12/2012 - 04:57 | Link to Comment andrewp111
andrewp111's picture

Yes. The Eurozone will only break when the voters in some state have passed the breaking point and vote to exit. Even Greece, with all the stress it is under, hasn't  come anywhere close to this point.  As long as the ELA keeps on flowing and the banks stay sufficiently alive to maintain the deposit accounts, it seems nothing will change.

Wed, 09/12/2012 - 05:30 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

No, to break up Europe you just need one country leaving it. market are too much interconnected.

what do you think would happen if greece default (aka says to europe fuck you, we dont want to pay back the debt)? Bank failing all over Europe. and guess what's next if bank start failing all over Europe?

Wed, 09/12/2012 - 06:27 | Link to Comment frenzic
frenzic's picture

Boots on the ground baby. In the name of freedom and democracy we will defeat the terrorists. NATO will be involved. Nothing a couple of 1,000,000,000,000 of brand spanking new fiat won't fix. Go team fascism! Oh and a shitload of propaganda. Move along folks, nothing to see here.

Wed, 09/12/2012 - 05:55 | Link to Comment Comay Mierda
Comay Mierda's picture

"The Eurozone will only break when the voters... vote to exit"

It's so cute that you dont realize elections are rigged

Wed, 09/12/2012 - 09:02 | Link to Comment ElvisDog
ElvisDog's picture

Not only that, but it will never be brought to a popular referendum. Look what happened to the Greek PM when he even suggested he might do it.

Wed, 09/12/2012 - 05:26 | Link to Comment YuropeanImbecille
YuropeanImbecille's picture

They Germans have no say in this. The Zionist-satanist controll that state to the fullest since at least 70 years.

Wed, 09/12/2012 - 05:46 | Link to Comment CDSMonkey
CDSMonkey's picture

Yes all the Nein Nein Nein stuff without seeing what was really going on has been dead wrong! Since "whatever it takes" day the path has been leading to positive not negative outcome

Wed, 09/12/2012 - 04:23 | Link to Comment No Euros please...
No Euros please we're British's picture

But you have to laugh. A cap on ESM when 30% of the funds to bail out Spain and Italy are coming from......Spain and Italy. And if anyone really expects France to actually shell out anything approaching another 20%, think again.

Wed, 09/12/2012 - 04:28 | Link to Comment eigenvalue
eigenvalue's picture

Yes, the ESM is capped but they can create another new facility. Problem solved.

Wed, 09/12/2012 - 04:40 | Link to Comment Just Ice
Just Ice's picture

Or simply continue bailing out countries by printing through the backdoor (ELA) while pretending the euro is hard rather than monopoly money.  ELA is why they are all so anxious for Spain to request a bailout now...but also why Spain is hemming and hawing and in general dallying, to others' great annoyance.

Wed, 09/12/2012 - 05:02 | Link to Comment eigenvalue
eigenvalue's picture

In my opinion, whether the ESM is capped is not important. Once Spain applies for a bailout from the ESM, the ECB can start providing unlimited clandestine financing for Spain's government in the following way. 

Step 1: Spanish banks buy SPGB on the primary market.

Step 2: Spanish banks flip SPGB to the ECB and receive Euros

Step 3: The ECB tries to sterilise the bond purchase through issuing to Spanish banks debt certificates or some thing else.

Step 4: Spanish banks pledge the debt certificates to Spain's Central Bank through ELA and get Euros

Step 5: Go to Step 1.

Wed, 09/12/2012 - 05:15 | Link to Comment Zero Debt
Zero Debt's picture

It is a takeover of Germany. That's all there is.
And yes, 190bn is a lot of hard earned tax money. 190bn too much.
Federation ECB next. Appoint a strong handed banking fuhrer and build a new political reich on top of the banking reich. Crush gold bugs and shut down the blogosphere. Rinse, repeat.

Wed, 09/12/2012 - 05:26 | Link to Comment Treason Season
Treason Season's picture

First we take Manhattan then we take Berlin

MKULTRA Star Leonard Cohen

Wed, 09/12/2012 - 08:59 | Link to Comment frenzic
frenzic's picture

Hmm Ken Kesey and Leonard Cohen. Wielding great influence on a younger me. Shit keeps getting deeper and deeper.

Wed, 09/12/2012 - 05:35 | Link to Comment michael_engineer
michael_engineer's picture

Maybe the contributions from spain and italy will be where the rub is. Obtaing those percentages may not be easily done. Or if france or any other country can't or won't come up with their percentages then that might scuttle it.

Wed, 09/12/2012 - 04:23 | Link to Comment Fuh Querada
Fuh Querada's picture

These people are at least as politically "independent" as the Federal Reserve.

Wed, 09/12/2012 - 04:23 | Link to Comment eigenvalue
eigenvalue's picture

The German judges are just the same gutless tossers as their American fellows. 

Wed, 09/12/2012 - 05:34 | Link to Comment Colonel Klink
Colonel Klink's picture

Mein Furrer!  It is you.

Wed, 09/12/2012 - 04:25 | Link to Comment asteroids
asteroids's picture

190B seems like a really small number. But of course with 100:1 leverage it will all work out fine, won't it?

Wed, 09/12/2012 - 04:39 | Link to Comment Zero Govt
Zero Govt's picture

don't ask Judges to do maths, they can't even interprit the Law correctly

Wed, 09/12/2012 - 04:27 | Link to Comment Capitalist
Capitalist's picture

My favourite show is on, Keeping up with the Krimson Kardinals

Wed, 09/12/2012 - 04:27 | Link to Comment williambanzai7
williambanzai7's picture

BUNDESVERFASSUNGSGERICHT

Wed, 09/12/2012 - 05:26 | Link to Comment Colonel Klink
Colonel Klink's picture

Dance fuckers!

-TPTB

Wed, 09/12/2012 - 05:52 | Link to Comment falak pema
falak pema's picture

the french are useless in economics; but they know how to kick up their heels; at least their women do! 

Wed, 09/12/2012 - 08:15 | Link to Comment samcontrol
samcontrol's picture

Especially the idiot who sold the south part of the US for pocket change.

I would be way prouder if Louisiana and co. where French. Wow, imagine Canadians to the north an Frenchies in the south. I could also migrate to the US , but then you guys prefer Mexican backpackers to Frenchies.

Wed, 09/12/2012 - 04:29 | Link to Comment Debtonation
Debtonation's picture

Nobody cares about the taxpayer anymore.

Wed, 09/12/2012 - 04:30 | Link to Comment Gandalf6900
Gandalf6900's picture

tax payer is so informal, I'm a bloody human being....

Wed, 09/12/2012 - 05:38 | Link to Comment Colonel Klink
Colonel Klink's picture

You're only a bloody human being AFTER you stop being a taxpayer!!

Don't forget it.

 

-Teh management

Wed, 09/12/2012 - 08:23 | Link to Comment samcontrol
samcontrol's picture

Can,t beleive thatwith all these brilliant minds here, you guys have not found a way Not to pay taxes. But then, where i live a 40' tv is over a $1000. Want another example? Ford focus 1.6 costs $25k . I Live in P-------a.

Wed, 09/12/2012 - 06:31 | Link to Comment i_fly_me
i_fly_me's picture

Well ... the percentage they let you keep is anyway.

Wed, 09/12/2012 - 04:30 | Link to Comment magpie
magpie's picture

Who needs him after QE and OMT

Wed, 09/12/2012 - 04:34 | Link to Comment Zero Govt
Zero Govt's picture

what happens after OMT?

you mean when the OMT is spent, what next when vessel of last. last, last, last resort is a frazzled crisp?

nobody thinks that far in Europe, nobody thinks in Europe let's be honest!

Wed, 09/12/2012 - 04:29 | Link to Comment Gandalf6900
Gandalf6900's picture

thanks for the assraping...can I have some more

Wed, 09/12/2012 - 04:30 | Link to Comment obvious_sarcasm
obvious_sarcasm's picture

Say hello to German VAT tax increase in 3....2.....

Wed, 09/12/2012 - 04:31 | Link to Comment Zero Govt
Zero Govt's picture

"it's on like Donkey Kong"

Europe goes into complete LaLa Land ...even the Judges have lost their marbles and want to socialise losses (on their countrymen)

this isn't going to end well

 

Wed, 09/12/2012 - 04:34 | Link to Comment Anasteus
Anasteus's picture

German 'Nein' has just vanished.

Wed, 09/12/2012 - 04:36 | Link to Comment Non Passaran
Non Passaran's picture

Nein, it hasn't.

 

It's One. Nein. Zero. BILLION! Euros.

Wed, 09/12/2012 - 05:01 | Link to Comment Anasteus
Anasteus's picture

That's barely sufficient for Spanish banks.

Wed, 09/12/2012 - 07:03 | Link to Comment Tirpitz
Tirpitz's picture

But it allows the over-leveraged northern banks another lease on life.

Wed, 09/12/2012 - 04:36 | Link to Comment giovanni_f
giovanni_f's picture

I said so in my ZH comment on 04/09/2012:

"Nothing ain't gonna happen: The judges will down-calibrate the whole issue to a minor not-really-constitution-related-parliamentary-decision-process-formality-violation-or-so that the government has 10 years time to look into and propose ideas for remediation. Problem solved (for the judges). In no instance has a German supreme court (in a serious case) ruled against the kids pretending to be in charge of caring for 80.000.000 souls."

Wed, 09/12/2012 - 04:50 | Link to Comment andrewp111
andrewp111's picture

As I said before, just like the US Supreme Court ruling in favor of ObamaCare. There is no way judges will overturn the elected leaders on something this big.  Not even judges in red robes.

Wed, 09/12/2012 - 07:06 | Link to Comment Tirpitz
Tirpitz's picture

KIDS in red robes.

While kids would be innocent, unlike the organized crime running the current courts of injustice.

Wed, 09/12/2012 - 08:05 | Link to Comment Reptil
Reptil's picture

yup and I was wrong there, I'd hoped they'd say "NI" lol

The germans are pathetic cowards just like the rest, if they let this continue.

I did warn everyone and their mum to buy physical gold. I hope that counts. ;-)

Wed, 09/12/2012 - 04:34 | Link to Comment AG BCN
AG BCN's picture

Capped at EUR190bn + a Shrubbery

Wed, 09/12/2012 - 05:16 | Link to Comment Zero Debt
Zero Debt's picture

+1 Knight who says NI

Wed, 09/12/2012 - 06:16 | Link to Comment Non Passaran
Non Passaran's picture

It doesn't sound like a lot. If Germany has to cap it, others won't accept unlimited exposure as well.

The only problem is as eigenvalue said, there is nothing the scumbags from Brussels and the ECB can't "work" around. 

Let's hope Finland caps their exposure to EUR19. And the Dutch too.

Wed, 09/12/2012 - 04:38 | Link to Comment Yen Cross
Yen Cross's picture

 I can't wait to see how they delegate " Subordination" to this cluster f..k !? "Limited ESM (primary market) vs Unlimited secondary bond market buying (OMT). Go figure it out"

Wed, 09/12/2012 - 04:40 | Link to Comment DavidC
DavidC's picture

It's another bubble that's being blown, pure and simple.

They (Fed, ECB, BoE) are so absolutely desperate to keep the whole thing going they will keep choosing the path of least resistance, which GUARANTEES another 2008 event at some point, because NONE of the underlying problems are being solved.

DavidC

Wed, 09/12/2012 - 04:47 | Link to Comment Judge Arrow
Judge Arrow's picture

Kardinals: Hey, you can park here, but when the meter is up in about 10 minutes, your car gets blown up.

Wed, 09/12/2012 - 04:47 | Link to Comment Shevva
Shevva's picture

You can use the EU credit card as long as you don't max it out.

Although if you do max it out we'll give you another one on the condition that you don't max that one out.

OK, OK you need another credit card, well this time you REALLY have to promise not to max it out.

At some point we will check the staements to check what all this money is going on, we would check next week but can't be bothered to scare the muppets giving us these credit cards so will leave it to next year now.

 

Wed, 09/12/2012 - 04:48 | Link to Comment boogey_bank
boogey_bank's picture

how much is 190bln translated in months?

Wed, 09/12/2012 - 04:53 | Link to Comment Gandalf6900
Gandalf6900's picture

how much is 190bln in days?

there now its the correct question...

Wed, 09/12/2012 - 05:13 | Link to Comment falak pema
falak pema's picture

hahaha; you don't understand how back door banking works with its perpetual revolving door mechanisms.

If you  as private bank deposit money for ONE week with the ECB, that counts for bond purchase "sterilisation"...think of that! 

Wed, 09/12/2012 - 04:51 | Link to Comment Yen Cross
Yen Cross's picture

 The Kardinals might want to hook up with Corzine and that Swiss "whistleblower" banker, for an extended stay at " moon base 1"...

Wed, 09/12/2012 - 05:29 | Link to Comment Colonel Klink
Colonel Klink's picture

Or the Scientologists.  Just be sure to bring your magic space underwear!

Wed, 09/12/2012 - 04:53 | Link to Comment Apostate2
Apostate2's picture

This is just more talkee talk or the iconic can kicking olympic sport. However, the fine print says they need to take a doping test. Expect more thread pulling from the tapestry of the EU as the weavers scream what about our artisitic concept?

Post modernism exit modernism exit reality.

Wed, 09/12/2012 - 04:53 | Link to Comment TN Jed
Wed, 09/12/2012 - 04:57 | Link to Comment apberusdisvet
apberusdisvet's picture

More can kicking, but the interesting comment is from Barasso who proposes that the ECB morph into the EuroFED and essentially control all the monetary authority for the EZ, all under Euro Parliament auspices; you know, those useful puppets and idiots of Farage-speak who have yet to meet a bankster fascist that they don't adore.

Wed, 09/12/2012 - 05:08 | Link to Comment GernB
GernB's picture

It's all on now for the totally limited unlimited bond purchases.

Wed, 09/12/2012 - 05:10 | Link to Comment falak pema
falak pema's picture

My Geneva trading friend is phukked, he's lost his bet! 

I'll be buying the dinner now every time we meet! 

Euro = 1.29! 

Soros sipping champagne, and I bet he has bought Italian bonds as he promised he would do.

 

Wed, 09/12/2012 - 05:12 | Link to Comment ciscokid
ciscokid's picture

Buy gold and silver!!

Wed, 09/12/2012 - 05:23 | Link to Comment falak pema
falak pema's picture

now that will truly be capped by TPTB, you can count on that; not like this champagne cork limit that the Kardinals have put on ESM.

Champagne corks are designed to take off!  

Wed, 09/12/2012 - 05:33 | Link to Comment YuropeanImbecille
YuropeanImbecille's picture

I placed a large order on silver yesterday =) Silver should be priced in the $100 range

 

I will buy silver on a weekly basis until we reach that level 

Wed, 09/12/2012 - 05:13 | Link to Comment awakening
awakening's picture

Can kicking continues, at this rate I'll be out of food (no gold, silver and other stuff here guv'nor) before this bubble pops =X

Wed, 09/12/2012 - 05:17 | Link to Comment Sandmann
Sandmann's picture

And what exactly happens when the 190 billion Euro Cap is breached ? At the end of the day political power comes from the barrel of a gun. Politicians do not fear being executed nowadays and simply ignore the legal niceties especially if they have a Law Degree  - they show most contempt for legal restraints unless they are imposing them - look at Clintons, Obama, Schauble,

This is simply the situation faced by Colbert in France and then later by Charles Alexandre de Calonee just before the French Revolution....trying to rein in Political Profligacy by rational means......

Wed, 09/12/2012 - 05:50 | Link to Comment Reptil
Reptil's picture

Oh that's simple. ESM2. No judge said anything about ESM2.

And who will find out what happened with that 160 Billion in the near future? No one, since there's NO oversight.

Yes, your analasys is 100% correct, there are strong parallels between this descent into debt oblivion and what sparked the French Revolution.

It's 40 BILLION for the Netherlands (not a small sum on the whole) especially if you look at what's already been transferred through the ECB.

Now... it's election day. (probably the last "free" one ever)
Let's see, who's against the ESM? Right wing? Nope. Socialists? Nope. All bought and paid for. NOT A PEEP from these ppl.

A small party called "De partij voor de dieren" (Party for behalf of the animals) is the only one SPECIFYING they're against the ESM on rational arguments.
Namely that it's a leaking basket already in it's design and there's no oversight possible WHATSOEVER.

THe ESM; a cool 700 BILLION EURO to the banksters... http://www.rekenkamer.nl/Nieuws/Nieuwsberichten/2011/10/Controle_op_700_... (I did NOT find an english translation of this article!)

Here's more of the dutch Court of Audit (which is an advisary organ, nothing more).\

http://www.courtofaudit.nl/english/searchresults?sortreversed=true&sortf...

http://www.courtofaudit.nl/english/News/2012/05/Court_of_Audit_on_the_ES...

The Court of Audit would draw particular attention to the following two points:

  1. The treaty does not explicitly lay down what types of audit the Board can carry out and on what grounds. The Court of Audit recommends that the by-laws provide the Board with a broad mandate, including the power to audit the regularity, policy compliance, effectiveness and risk management of the support programmes funded from the ESM in accordance with international audit standards.
  2. The treaty lays down that the Board of Auditors will report once a year to the Board of Governors (the finance ministers of the 17 participating euro countries). The Court of Audit thinks this restriction on the Board of Auditors' publication opportunities is undesirable. The by-laws should lay down that the public annual report contain at least the conclusions and recommendations arising from the Board's audits. It would also be advisable to include the Board of Governors' response to those conclusions and recommendations. The annual report will, of course, be made available to the national parliaments, which are responsible for democratic control of the ESM.

Up
What happens next?

The Dutch Minister of Finance is also a member of the Board of Governors. When the treaty comes into effect, the Board of Governors will adopt the by-laws. The Dutch parliament can hold the Minister of Finance to account for the inclusion of the above points in the by-laws.

 

fuck the animals I'm voting "Partij voor de Dieren" LOL

Wed, 09/12/2012 - 05:47 | Link to Comment falak pema
falak pema's picture

think of it : ECB in unhampered to buy on secondary market, ESM is officially capped on first market; ESM will be circumvented by ECB plays in cahoots with the private banks; and ESM will become a paper shell that will serve as front for the ECB under the table unlimited plays.

The main AIM of ALL this CB plays IS TO SAVE THE PRIVATE BANKS; period. They will do everything required to get there, until it fails if there is no real economic growth in the next five years. By then we will have new political leaders, and debased money will have pauperised first world to allow the Oligarchs to reinvest in first world projects.

Buying time for the banks and Oligarchs  and letting the new reality of austerity and lower living standards sink into the head of sheeple is the game plan.

Necker's austerity and Calonne's profligacy...damned if you do, damned if you don't; when a hundred year trend becomes impossible to check as it morphs into total decadence of the old order.

Wed, 09/12/2012 - 05:32 | Link to Comment Colonel Klink
Colonel Klink's picture

Stop worrying everyone, the Federal Reserve has no such caps.  Money will secretly flow from the magic money spring where the skittle shitting unicorn drinks.

Wed, 09/12/2012 - 05:52 | Link to Comment Reptil
Reptil's picture

phew that's a relief!

thanks man!

Wed, 09/12/2012 - 05:31 | Link to Comment PaperBear
PaperBear's picture

Monty Python lives on.

Wed, 09/12/2012 - 05:49 | Link to Comment Anglo Hondo
Anglo Hondo's picture

As soon as you take Ireland, Spain, Italy, Portugal, Greece and Cyprus out of the list of contributors to the ESM, you only have 440 Billion Euros in the fund.

But, the agreement is that the remainder, to make up to 700 Billion, is divided between the remainder, which pushes up Germany's contribution above the 190 Billion. That is a nein nein nein.

So how is this going to work?  Seems to be dead in the water already.

 

 

Wed, 09/12/2012 - 05:54 | Link to Comment Reptil
Reptil's picture

Ah good point.
They'll solve it by falsifying their balance sheets? 2+2=3

NO one will ever know.

Wed, 09/12/2012 - 06:14 | Link to Comment No Euros please...
No Euros please we're British's picture

You forgot to take France out of your list. You really think they're going to contribute real cash? Let me ask you, which EU country has suddenly gone into low profile mode? Who's politicos have said nothing recently about Greece or Spain or ESM? Which country has Olympic Gold for ignoring all EU directives they don't like?

Wed, 09/12/2012 - 05:54 | Link to Comment I am Jobe
I am Jobe's picture

How many  sheeples in the USSA are thinking about this I wonder- Not very many- Too fucking busy about food and fucking TV shows.

Wed, 09/12/2012 - 06:19 | Link to Comment redd_green
redd_green's picture

German taxpayers are not being pillaged, any more than Chinese "savers" are being pillaged.  This article stinks.    Most of the world has fiat monetary systems, folks.    THese central banks are not raiding the germans savings accounts to give Greece the 23rd bailout.  It is PRINTED money.   (geez)

Wed, 09/12/2012 - 08:29 | Link to Comment Just Ice
Just Ice's picture

 

 

I down voted you.  Your knowledge or comprehension stinks.

Printed money devalues the currency thereby stealing from the owners and users of that currency, robbing them of purchasing power.  (Including savers and taxpayers who acquired their fiat through legal means - usually as value for their labor - rather than by counterfeit or otherwise having newly created currency freely handed to them for nothing).

Wed, 09/12/2012 - 08:38 | Link to Comment redd_green
redd_green's picture

They didn't print more money just to pay the Greeks.    And, how is money sent to Greece devaluing the hard working germans savings?     Your knowledge stinks.

Wed, 09/12/2012 - 08:53 | Link to Comment Just Ice
Just Ice's picture

Germany is the primary contributor of funds to all of the euro bailout mechanisms.  Its share is a larger percentage than the other euro countries.  The German government does not, of course, have money of its own for the contributions but rather obtains its money via the collection of taxes and fees from "the hard working Germans" and their businesses.  That is how the Germans' savings are "pillaged" for bailouts.   

Wed, 09/12/2012 - 06:25 | Link to Comment bigkahuna
bigkahuna's picture

Expected.

Wed, 09/12/2012 - 06:33 | Link to Comment muppet_master
muppet_master's picture

190 b eur cap !!

AND with CONDITIONS !!

i have a "stupid question" where is the other 2 Trillion gonna come from? oh yeah the rich countries like the PIIGS !!! LOL !!

Wed, 09/12/2012 - 06:45 | Link to Comment nathan1234
nathan1234's picture

This will limit Germany's losses

All countries will put their cap and as a result nothing will work out.

The Euro is doomed- Only a temporary reprieve

 

 

Wed, 09/12/2012 - 07:01 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

"this isn't going to end well".   Man that's a phrase I'm getting sick of.  You, know, someday the earth "isn't going to end well"......but if that's 50,000 years from now, who alive realy cares?   Why is tis BS any different?

Wed, 09/12/2012 - 08:00 | Link to Comment Reptil
Reptil's picture

Because before it was fractured, so if something went wrong on some continent, the rest would be ok.

Right now we're in the same boat, and it's sinking (fast). What part of that don't you understand? :-)

Wed, 09/12/2012 - 08:06 | Link to Comment Zodiac
Zodiac's picture

The kamels nose is in the tent now.  Karlsruhe konditions kan be kanned as more money is needed.

Wed, 09/12/2012 - 08:46 | Link to Comment alp
alp's picture

They will keep rolling over, both Americans and Europeans, as long as they can.

Zero Hedge might consider changing the blog philosophy completely, because on a long enough timeline the survival rate for fundamentalists is zero. I suggest you change the blog's ID to something for more positive and trend following like.

Wed, 09/12/2012 - 08:59 | Link to Comment sessinpo
sessinpo's picture

Those disappointed with the ceiling or cap need not be. Ceilings or caps as well as floors are broken more often then not. That is "real" market forces taking place when that happens, despite all the government invertention.

There is no cap on Germany's participation on bailouts until the German citiizens put their foot down. Right now, German citizens are doing the same as US citizens which is bitch and complain about what is happening, buying into the red/blue (left/right) argument, voting in the same people they complain about and then bitching and complaining some more. In other words, the can is being kicked down the road because the citizens allow it to be that way.

Wed, 09/12/2012 - 09:46 | Link to Comment Elmer Fudd
Elmer Fudd's picture

Damm, them Kardinals must be damm good eekonomistas too, man that 190 billion euro number is spot on!  Very impressive /mdb

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