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Vice Chairman Of Germany's CDU Party Demands Gold As Collateral From European Bailout Recipients

Submitted by Tyler Durden on 08/23/2011 09:34 -0400

Yesterday we had the Bundesbank making a very strong case for why a pan-European bailout (funded by Germany), would need a "fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty" (beneficial for Germany), today we see the next and final stage of the proposed annexation of Europe by Germany - that which focuses on procuring that which is really important. Hint: not spam. From Spiegel: "Minister Ursula von der Leyen pushes the hard line: any financial aid for euro countries should only come against collateral - as gold reserves or industrial holdings." More google-translated conditionality: "The CDU politician wants to ensure future aid allocations from the rescue fund through extensive security of the country. The ARD Berlin Studios said the minister, who is also vice-chairman of the CDU party, many of these countries had large reserves of gold and industrial holdings, which they could use for such collateral." And now we know the next steps: i) Eurobonds will come after there is a change to the European constitution which make Germany supreme ruler, and ii) at that point Germany will have all the gold in Europe pledging its bailout. Yes, gold.... not spam.

More from Spiegel:

"Some states are making great efforts to service their debts," she said. "This must be honored. This, however, efforts are also required to maintain long term, it is the collateral," argued the politician. "In fact we have such an effective European debt brake," said von der Leyen,the "Hannover Allgemeine Zeitung".

Thus, von der Leyen, the first cabinet member who has made such claims publicly. The former family minister belongs to the new CDU Commission, which was set up in response to the intra-party debate about the euro crisis. The Panel is to 24 October a Leitantrag work for the party in November. He is also Finance Minister, Wolfgang Schäuble.

Lies with their demands for collateral von der Leyen, however, not on the official cabinet line. For the federal government counts the linking of aid and strict conditions, it said on Tuesday from the U.S. government. Should provide collateral in the form of cash reserves or industrial holdings, the recipients of such aid by von der Leyen's idea, in these circles was not mentioned.

And so on. The gist is more than clear.

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Tue, 08/23/2011 - 11:26 | 1590400 Badabing

Shanghai raises margins, OP/EX Wed, bottom buy signal soon.

Tue, 08/23/2011 - 11:28 | 1590405 djcando

Greenspan Comes Out from Under a Rock:

Unlike Bernanke, Alan Greenspan Thinks Gold IS Money 11:14 am ET 08/23/2011 - Street Insider

While current Federal Reserve Chairman Ben Bernanke doesn't think gold is money, one former Chairman does.

"Gold, unlike all other commodities, is a currency," Greenspan said according to a report from Bloomberg. "And the major thrust in the demand for gold is not for jewelry. It's not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating."

Bernanke's predecessor also said that even with gold at the $1900 level he doesn't think it's a bubble.

GET READY FOR A WILD RIDE

Tue, 08/23/2011 - 11:30 | 1590410 scratch_and_sniff

I dont care what they take, as long as they stay away from the teeth this time.

Tue, 08/23/2011 - 11:55 | 1590438 CassandraDoomsday

I took the liberty to dabble with the translation........

"Some states are making great efforts to service their debts," she said. "This must be rewarded. " To maintain this effort in the long term requires collateral. argued the politician. "In fact such we have an effective European debt brake," said von der Leyen,the "Hannover Allgemeine Zeitung".

Thus, von der Leyen, the first cabinet member who has made such claims publicly. The former family minister belongs to the new CDU Commission, which was set up in response to the intra-party debate about the euro crisis. The Panel is to propose a Leitantrag (lead motion) till 24th October for party conference in November. Wolfgang Schäuble, the finance minister, belongs to the same panel.

Von der Leyen demands for collateral, however, are not official cabinet line. There have been contradicting voices from within the (centre-right) party. On the one hand, the federal government insists on the linking of aid and strict conditions. Collateral in the form of cash reserves or industrial holdings is not mentioned by federal government. Other politicians confirm, that – amongst others - shares in industrial holdings should be considered as possible collateral, up to a three digit billion amount.