Merkel Is Baaaaaaack

Tyler Durden's picture

Hold on tight boys and girls, cause Merkel is back from vacation, and she is not happy despite that healthy Santorini due diligence-inspired tan (as deputy-Chancellor Fuchs telegraphed earlier today, when he made it quite clear what his boss thinks about Greece, and about more printing). Per Bloomberg: "German Chancellor Angela Merkel returns to the front line of the European debt crisis this week as the bloc’s leaders squabble over measures including bond purchases to relieve concerns the single currency may fragment. Merkel ends her summer vacation and travels to Canada Aug. 15-16 for talks with Prime Minister Stephen Harper as a spiraling euro crisis threatens to constrain the global economy. With the region’s leaders awaiting a German high court decision on bailout funding next month, they’re struggling to smooth divisions over a European Central Bank plan to buy the bonds of indebted nations."

Bloomberg proceeds to recap what we already have explained over and over: the lack of an impetus by soon to be bailed out governments to act if they are bailed out, coupled with the impetus to cheat and do nothing, as well as the inevitable arrival of the German referendum.

"It makes no sense for the ECB to start financing” Spain and Italy, ECB Governing Council member Luc Coene said in an interview with newspapers De Tijd and L’Echo published on Aug. 11. “It would only lead to the ECB taking on the whole public debt of Spain and Italy onto its balance sheet.”


The possibility that Germany’s high court will demand greater elector participation in euro decisions raised the prospect of a referendum in the euro area’s biggest economy, placing the country’s commitment to the currency in the hands of voters at time that polls show rising discontent with the costs of the crisis.


The policy maker said the central bank’s experience a year ago demonstrates why the ECB is reluctant to step in. 


"We haven’t forgotten what happened in August of last year: We bought Italian bonds and right after that the Italian government reneged on its pledges,” Coene was quoted as saying. “The conclusion is clear: When you take away the market pressure, you take away the pressure on politicians to act.” 


While Merkel has resisted the notion of a referendum, Rainer Bruederle, the parliamentary caucus leader of her Free Democratic coalition partner, told Hamburger Abendblatt last week that Germany’s role in the crisis might need to be put to a vote.  


“We may come to a point where a referendum about Europe becomes necessary,” Bruederle told the newspaper. “The future development of the debt crisis will show how much the EU countries will be asked to give up sovereignty.”

Finally, just because it has not been on the front pages in over a month, does not mean that Europe's basket case, Greece, has been fixed. Far from it.

The monthlong wait for the ESM decision will be paralleled by anticipation on whether Greece continues to receive euro rescue funds. Greece’s troika of international creditors -- the ECB, the European Commission and the International Monetary Fund -- will return to Athens in early September to resume talks as Greek Prime Minister Antonis Samaras seeks to hammer out 11.5 billion euros in budget cuts for 2013 and 2014.


German Vice Chancellor Philipp Roesler, who drew international criticism last month for resurrecting the possibility of a Greek exit from the euro, told Focus magazine that such a scenario would be “manageable,” echoing a statement by Luxembourg Prime Minister Jean-Claude Juncker.


“Hardly any of our offers have been taken up by the Greeks,” Roesler told Focus Aug. 11, referring to economic support put forward by the German government and industry.


The ECB’s Coene said a Greek exit “would be the worst solution,” adding in the interview that “it would raise a question about euro membership for everybody, not only for Greece.”

Oh well - the vacation was fun while it lasted. And now, as a complete tangent, here is a montage of Hitler repeating "nein" for 10 hours straight.

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Precious's picture

"Things were so much simpler in East Germany."

old naughty's picture

When they are in the Soviet blog.

Cold war. External enemies.

No muddle through.

macholatte's picture
Angie .......... Songwriters: JAGGER, MICK/RICHARDS, KEITH

Angie, Angie, when will those clouds all disappear?
Angie, Angie, where will it lead us from here?
With no loving in our souls and no money in our coats
You can't say were satisfied
But Angie, Angie, you can't say we never tried
Angie, you're beautiful, but ain't it time we said goodbye?
Angie, I still love you, remember all those nights we cried?
All the dreams we held so close seemed to all go up in smoke
Let me whisper in your ear:
Angie, Angie, where will it lead us from here?
Oh, Angie, don't you weep, all your kisses still taste sweet
I hate that sadness in your eyes
But Angie, Angie, ain't it time we said goodbye?
With no loving in our souls and no money in our coats
You can't say were satisfied
But Angie, I still love you, baby
Everywhere I look I see your eyes
There ain't a woman that comes close to you
Come on baby, dry your eyes
But Angie, Angie, ain't it good to be alive?
Angie, Angie, they can't say we never tried

Colombian Gringo's picture

Gosh, you must be a real masochist to want to whisper into Angie Merkels ear. Even a liter of shnapps couldn't improve her looks :)

Thomas's picture

She looks really hot. The vacation has done wonders.

StychoKiller's picture

That picture looks like she caught a whiff of the Sh!t-sandwich that Draghi's been 'narfin' on... :>D

TWSceptic's picture

Is that a silver necklace around her neck?

azzhatter's picture

Somehow I always pictured Mick's Angie a little more petite

mick68's picture


tenpanhandle's picture

your comment is somewhat outside the box.

Peter Pan's picture

"Things were so much simpler in East Germany."

I agree. The hot water tap was colder than the cold water tap.

Uncle Remus's picture

I knew you'd be surprised...

erg's picture

Bowel movement? Bed face? On second thought don't tell me.

HD's picture

Excellent use of the photo Tyler. Screams to be an Avatar...

fonzannoon's picture

Whatever...Merkel is angry....Merkel shows signs of giving in....Merkel is angry....Spanish yields up....Spanish yields drop. Any crisis that can go on vacation is not a crisis.

taniquetil's picture

I'm confused. Is this bullish for Facebook?

ShortTheUS's picture

I get it: She's 'Frau'-ning.

LoneStarHog's picture

Gawd! She looks like she just passed a Janet Napolitano!

TrainWreck1's picture

or caught an eyeful of a Hillary nip-slip

francis_sawyer's picture

Well if you see something like that ...

"I say hurl. If you blow chunks and she comes back, she's yours. But if you spew and she bolts, then it was never meant to be..."

~Wayne Campbell

eaglefalcon's picture

For some women, such facial expression indicates severe constipation, for others it's a sign of orgasmic ecstacy

pleseus's picture

For some reason the markets are acting like Europe is fixed.  Sorry, QE doesn't fix the problem.  Fixing a debt crisis with more debt won't work.  This fiscal union ain't gonna happen.  You don't marry the person you hate.

A Lunatic's picture

You do if you want a lifetime commitment on all you can take forced anal intercourse.............

LibertarianX's picture the € falls the bank with the largest balance sheet in the world sees its traded risk as measured by its VaR rise as it is significantly positively correlated with a falling €....which is not ideal....

Just saying...

oogs66's picture

Blah, blah, rolling debt isnt adding debt on debt and the consensus view is it doesn't work. Cnbc and zh 100% on same page.

Bay of Pigs's picture

NEIN! Please stop...

gwar5's picture

I heard that swallowing schnitzel in the morning would cure Merkel's facial expression.


buzzsaw99's picture


Well, which one is it baby, Spitz or Swallows? [/austin powers]

Bobportlandor's picture

Well I guess that means 6 more weeks of turmoil.

JohnKozac's picture

Canada is very expensive these days with the oil sands Boom and their Uber-Loonie Housing Bubble.  She better bring a big purse.

fonzannoon's picture

What are you talkin aboooot?

Nadaclue's picture

Merkal is going to Canada not to ask for beer, as we all know Germany brews some of the best dark beers, nothing the Canooks can even quarter less match, but to ask for loonies.

Being fellow socialists but selfish as they are, they may give her a Salmon and send her on her way.

Thanks for the fish and fuck you will be her reply.

I'm lovin it, being a PT Canook.


canardo's picture

The Belgians make the best beer

erg's picture

lol We've all heard of a double-negative. In newfinese there is something best described as a quadruple-negative and it goes like this.

You don't know nobody who don't want nothing done? Someone looking for work.

Edit: Some of the friendlest people on the continent and no I am not from there nor live there. Shirt off their back type of people.

Schmuck Raker's picture

" is a montage of Hitler repeating "nein" for 10 hours straight."

I can die happy now.

Montage, mmmm...fade out...

tenpanhandle's picture

After eight hours my shift at the CFTC was done and I had to turn it off.  Can you tell me how it ended?

mktfizx's picture

"It makes no sense for the ECB to start financing” Spain and Italy, ECB Governing Council member Luc Coene said in an interview with newspapers De Tijd and L’Echo published on Aug. 11. “It would only lead to the ECB taking on the whole public debt of Spain and Italy onto its balance sheet.”

Or, it makes all the sense depending on your plan.  When you hold of the debt, you have control. 

AbelCatalyst's picture

Yeah, total control until they default... Then what? Take it by force? War? Bank collapse? You only have the power if there are underlying laws that protect your interests and in a default the country simply stops paying... Then what? Hmmmm.... Your move...

knukles's picture

Makes no sense to start?
They already started buying that crap.

And BTW, the newspapers De Tijd and L’Echo loosely translated into Ehglish mean The Turd and The Fart smell.

Don't blame me, it was Googledegook