After we noted earlier that the latest trending topic regarding Europe's insolvency was that the €440 billion EFSF rescue facility will likely not have enough cash to bail out Spain, the ECB immediately came to the rhetorical rescue, with Governing Council member and Bundesbank head Axel Weber speaking at a conference in Paris, telling participants that "The European Financial Stability Fund should be sufficient to dissuade markets from speculating against the solvency of Eurozone member countries, and if not, more money will be provided." Lamenting the market's idiocy, which refuses to stop punishing bankrupt stats, Weber further added that markets suffer from "limited rationality" and players often follow market movements to the neglect of "fundamentals." Of course the same should be said for all those who are buying into this rally, which is driven exclusively by the genocidal desire of central bankers to ramp up stocks, kill currencies, and make the cost of living unbearable for half their constituencies. But nobody has ever accused central bankers of objectivity, or ever doing something that puts the interests of a few billionaire "Jenny 20" rejects over a billion or so filthy peasants.
Some more unbearable self-serving rhetoric from Jean-Claude Trichet's successor, via Market News:
It should be "easy to convince markets" with the EFSF backstop that speculation against governments will not be successful, Weber argued. The facility provides for up to E440 billion in government-guaranteed loans, which is in addition to a pre-existing E60 billion EU emergency fund. The IMF has also pledged up to E250 billion, bringing the total pot to E750 billion. Weber said he was convinced that if the E750 billion is not enough, Europe's political leaders "will do more."
Furthermore, Weber managed to confirm that he is either stupid, or is convinced everyone present at the conference is a prime grade moron, when he said that "the sovereign debt crisis is not a crisis of the euro or the Eurozone, but rather one of individual countries. The structural problems of Greece and Ireland are not comparable to those of other members, he insisted." The fact that the individual states are in crisis precisely due to the fact that their monetary policy tools are eliminated, which serves exclusively to keep the German export sector highly competitive and the German cost of productivity far lower than the rest of the Eurozone (and here we are blaming China for pegging the CNY), was oddly not mentioned by the corpulent bureaucrat.
Persisting with his projectile vomit session of aneurism-inducing mendacity, the rotund teutonic ogre claimed that EMU member states should retain as much sovereignty as possible in fiscal matters. Oddly enough, this is happening precisely as deep behind the scenes we are now hearing that the EU is contemplating the finishing touches of a unified bond issuance mechanism, in essence completely removing fiscal independence, and making all of Europe a vassal state to a newly-ascendant Germany.
Weber completed his oratory with the following:
In the end, "the crisis will be positive for the Eurozone," since it will oblige the governments to extend their surveillance structures and establish a permanent mechanism to deal with future crises, which will "certainly" occur, Weber predicted.
In response to Eurosceptics, Weber argued that acceptance of monetary union is no longer an issue for younger generations with no experience of the previous currencies. "The D-mark would be no alternative to the euro!"
He is absolutely right. The transition from EUR to DEM will not be parallel. It will be serial, and will occur when all of peripheral Europe has abdicated its monetary and fiscal authorities, as well as it budgetary independence to a reincarnated teutonic knights counsel.
And they say history does not repeat...