Overnight, the WSJ had an interesting article starting [9]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 [10]. 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.