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PIIGS / Europe's Debt Troubles

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DRUDGE Report Headlines

 

Thousands of Greeks protest against new round of austerity cuts...

 

SOROS: Germany should leave euro zone if not prepared to lead...

 

Fate rests in hands of German judges...

 

Merkel accused of being 'female Don Corleone'...

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#3:

http://www.guardian.co.uk/world/2012/sep/09/german-judges-to-rule-on-euro-fate

 

They have the potential to throw the stock exchange into turmoil, trigger frenzy on bond markets and bring down the German government. So the eyes and ears of the eurozone will be on the eight red-robed judges of Germany's highest court this week when they deliver a long-awaited verdict over whether a financial rescue fund considered crucial to the future of the euro gets the green light.

 

The constitutional court is under international pressure to rule in favour of the European stability mechanism and fiscal pact. A dissenting ruling from the court, based in Karlsruhe, southwestern Germany, would probably cause havoc on money markets and cast doubt on the future of Europe's single currency.

 

"The German constitutional court cannot afford to be seen as not being independent, but it also cannot afford to be seen as the court that brought down the government,"

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Poll: The Germans aren't Buying Drahgi's Bond plans

 

A poll published on Friday on Spiegel Online showed that 54% of Germans were in favour of the court blocking the legislation, reflecting the degree to which public opposition to bailouts is increasing.

 

The poll was released a day after the European Central Bank president, Mario Draghi, divulged plans for making unlimited bond purchases to lower borrowing costs for crisis countries in the eurozone. The announcement unleashed a wave of condemnation across much of Germany's media and among a growing band of eurosceptics, who said the scheme would stoke inflation. German fears of a repeat of its 20th-century experiences of hyperinflation and the catastrophic consequences run deep.

 

"A black day for the euro, and for all of us!" a headline in the tabloid Bild said last week. It said the ECB had effectively written a blank cheque to indebted states by offering to buy their bonds. Jens Weidmann, head of the Bundesbank, issued a statement calling the Draghi decision "tantamount to financing governments by printing bank notes" and accusing the Italian banker of breaking ECB rules.

 

/more: http://www.guardian.co.uk/world/2012/sep/09/german-judges-to-rule-on-euro-fate

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"Draghi, or let's call him Draghiavelli, is a shrewd operator who waited for the moment when his solution would seem the most opportune,"...

. . .

The case was brought by a group of more than 12,000 plaintiffs, including a growing band of eurosceptics from academia, Angela Merkel's coalition and the hardline Left party. Karlsruhe shocked the political establishment in July by saying it needed two months to examine complaints that the rescue fund violated the constitution. Political observers believe the anti-euro group has the makings of a new party, unprecedented for Germany, where there are no anti-European parties.

 

"There's a certain angst now among politicians that people are distancing themselves from Europe for the first time, as the Germans wake up to the fact that Europe can no longer be united by Germany's war guilt, but needs to be united by the idea of a common, successful currency and by making it work," said Wolfgang Nowak, a former adviser to chancellor Gerhard Schröder.

 

"Germans would probably do themselves a service by leaving the euro, but this is something that is unsayable in German politics."

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How long will Merkel-maras last ?

(A brief successor to the Merkosy couple)

 

Angela-Merkel-and-Antonis-010.jpg

Angela Merkel and Antonis Samaras put on display of friendly diplomacy

 

24 Aug 2012: German chancellor welcomes visiting Greek PM into lion's den of Berlin and says she wants Greece to remain in eurozone

 

Samaras said Greece was not asking for more money, just more time. "Greece will stick to its commitments and fulfil its obligations," he said. He also stressed the Greeks' misery and pride. "We're a very proud people and we don't like being dependent on borrowed money. We want to stand on our own two feet to get out of this crisis as soon as possible."

 

Earlier in the week there was a visit by the singer Nana Mouskouri, part of a Greek charm offensive. Samaras tried to win local sympathy by referring to an era of hyperinflation to which every German dreads returning. "If we went back to the drachma ... it would mean a drop in living standards by around 70%," he said. "What society or democracy would survive that? It would be like returning to the Weimar Republic.

 

/more: http://www.guardian.co.uk/world/2012/aug/24/samaras-merkel-friendly-diplomacy

 

THE JUDGES may condemn Angela for "living in sin"

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Interview with Gerald Celente

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/9_Gerald_Celente_-_Gold,_Silver_%26_A_Major_October_Surprise.html

 

 

..... They (central planners) are going to destroy the money, and they are going to do everything to try to keep the gold and silver markets down.” Celente warned about a major “October surprise.” He cautioned, “Anything could happen at any time. There are a lot of wild cards, and in a wild card environment like this, I want gold and I want silver ... .."

 

.... the European Central Bank .... has basically said, ‘We are going to buy up all of the worthless sovereign debt that Italy, Spain, Ireland, Portugal, and any other country in the eurozone that gets in trouble, we will continue to buy up that worthless debt.’ Now where are you going to get the money?

 

“‘Well, we stole it all from the people already through austerity measures. They don’t have much to give us anymore. .... get those printing presses rolling...... They ..... are going to do it continually to keep propping up the falling eurozone from collapsing.

.....

They are real concerned about an October surprise. ... a financial crisis. This thing is unraveling worldwide. Now they are talking about going back on the gold standard. Just talking about it.

 

But even that they are talking about it is significant. I believe, depending on what happens on Thursday (with the German high court decision), if there is a crisis in Europe, I think you are going to start hearing more and more about a gold standard.”......

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http://theautomatice...for-europe.html

 

What Makes Mario Draghi So Dangerous For Europe

 

......

Any country that wants a bailout under Draghi's terms .... must relinquish a substantial part of its sovereignty. At the very least, such a country will no longer be in charge of its own economic policies.

 

And it doesn't stop there: the countries that will need to pay for and/or guarantee the bond-buying will also be called on .... to relinquish a substantial part of their sovereignty: the ECB wants much more control over the banking system across Europe. The drive is towards more centralized ..... control, leading to far stricter fiscal union and political union, which would take away much of the control eurozone countries presently have over their economies.

 

Ergo, Mario Draghi's plan is not an economic one, it's political all the way ..... And ... Draghi's .... neither a politician nor elected. He should not be allowed to have any say whatsoever in it.

 

...... the essence of the entire crisis: the people in the street being forced to pay for the long lost wagers of those in penthouses and ivory banking towers.....

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NO PLAN B - though the People may want Plan B

 

Evans Pritchard quotes former Spanish PM Jose Maria Aznar as saying that the drive for full fiscal and political union is "deeply misguided":

"A United States of Europe is an impossible idea. It is a very serious mistake to try to destroy the nation states. You cannot go against the cultural beliefs of the people and the forces of history [..]"

Indeed; and only someone like Draghi would be blind to that. That's what makes him dangerous.

At some point in the process, you must let the people speak. And if you don't, they will speak anyway. Let's not forget that there is not an elected official in sight in the ECB, yet it still attempts to make decisions that are clearly political in character. The notion that it is all just about finance has long since turned vanished into thin air.

In our western democratic societies, all decisions should in principle be taken along democratic, i.e. elected, lines, and that includes any and all economic and financial decisions. The 17 members of the eurozone should therefore hold 17 separate referendums on whether or not their people are comfortable with giving up all sorts of sovereign rights to unelected institutions. But that is not very likely to happen, since the outcome would be all too clear: no, nein, non, no way.

Meanwhile, Europe wastes a lot of valuable time and money focusing on only one possible outcome of this crisis: that Greece and Spain and everyone else will and must remain within the eurozone. It would do much better to spend far more of that same time and money on a veritable search for a plan B

(same link as above)

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Greece demands billions for German war crimes: Relations between EU partners plunge to a new low

  • Greece says it has right to claim millions because it was forced to accept 'unfavourable terms' during 1950 negotiations
  • Working group has been set to scour old archives to hunt unpaid reparations
  • Many in Greece blame Germany for the tough austerity measures currently being enforced
  • Meanwhile, it's revealed German Chancellor Angela Merkel now wants to stop Athens from leaving the eurozone at all costs

 

Read more: http://www.dailymail.co.uk/news/article-2201514/Greece-demands-billions-German-war-crimes-Relations-EU-partners-plunge-new-low.html#ixzz26EXJwep9

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NO BACKBONE !

 

 

German court backs eurozone's ESM bailout fund

 

_62841181_judgesafp.jpg

Observers believe the judges may tie the hands of the government in future

==

 

Germany's top court has rejected calls to block the permanent eurozone rescue fund - the European Stability Mechanism (ESM) - and the European fiscal treaty.

But the Constitutional Court imposed conditions including a cap on Germany's contribution, which it said could only be overruled by the German parliament.

The euro rose in value as the markets reacted with relief to the decision.

Critics had argued that the ESM commits Germany to potentially unlimited funding of debt-ridden eurozone states.

Some 37,000 people had signed a petition to the court asking it to block the ESM, and make it subject to a referendum.

 

CAP

 

The court said any future increase in the size of the 500bn-euro (£400bn) fund, or of Germany's contribution, could only be permitted with the express agreement of Germany's parliament.

 

The decision clears the way for Germany's President, Joachim Gauck, to sign the ESM into law.

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Debt crisis: Greece could get more time for austerity - live

 

Greece's international lenders will consider giving the country more time to implement austerity measures agreed under its multi-billion euro bail-out, according to IMF managing director Christine Lagarde.

 

http://www.telegraph.co.uk/finance/debt-crisis-live/9542259/Debt-crisis-Greece-could-get-more-time-for-austerity-live.html

 

====================================================================================

 

Another sticking plaster ? Greece given more time ? again ? and again?

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Athens descends into violence as 200,000 march against austerity

Police respond with tear gas to firebombs thrown from sidelines of demo against €12bn cuts

http://www.guardian.co.uk/world/2012/sep/26/greece-violence-general-strike-austerity

Violence erupted in the heart of Athens as mass protests against further austerity measures in crisis-hit Greece escalated on Wednesday.

Police fired tear gas at crowds throwing rocks and petrol bombs. The exchange disrupted an otherwise peaceful march through the capital by up to 200,000 demonstrators participating in a general strike, the first big confrontation with Greece's three-month-old coalition government.

Industrial action, hailed as a triumph by unions, brought the country almost to a standstill, grounding flights, disrupting transport and shutting public services including tourist sites.

The governing coalition, under immense pressure to pass yet more cuts by international creditors keeping the moribund Greek economy afloat, had ordered bulletproof barriers to be erected around the parliament but had hoped the protests would end peacefully.

As smoke rose over parts of the city and protesters donned gas masks, it was clear those hopes had been dashed. About 3,000 officers – twice the number usually deployed – had been standing guard in central Athens as authorities braced for rioting.

==========================================

Full story and Video at link.

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Eurozone crisis live: Stock markets slide as violence mars Greek strike

 

 

European markets keep falling

 

Greece may be calm again, but Europe's stock markets remain deeply in the red this afternoon as fears over the eurocrisis persist (as explained at 11.13am).

The selloff is particularly severe in Spain and Italy, the two countries most at risk of losing the support of international lenders.

In London, the FTSE 100 is down 102 points at 5756, a drop of almost 1.5%. In Spain, the IBEX down 3.5% at 7890, a tumble of 287 points.

And in Italy, the FTSE MIB has fallen by 540 points to 15391, down 3.3%

Investors have raced for the safety of the US dollar (so unoriginal), pushing the euro down to $1.284. The oil price has also been hit, with a barrel of Brent crude down $1.3 at $109.1.

Gloom abounds.

Analysts at Commerzbank summed it up in a research note.

The renewed escalation of the debt crisis in the euro zone, with violent protests in Spain against the planned new austerity measures, has sparked gloomier sentiment on the financial markets once again and is also putting oil prices under pressure.

A-molotov-cocktail-explod-008.jpg

http://www.guardian.co.uk/business/2012/sep/26/eurozone-crisis-general-strike-greece-spain#block-506311fdc0e327c3f7c90601

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Riot police dodge fire bombs and tear gas hurled at protesters as demonstration in Athens against cuts descends into violence

  • Officers were set alight by exploding bombs as a protest descended into carnage near country's parliament
  • About 500,000 people joined the anti-government rally to demonstrate against new austerity measures in Greece
  • Police were seen fighting with protesters in what is thought to be the biggest anti-austerity protest in a year
  • Demonstrators set fire to trees and smash paving stones and marble panels with hammers to use as missiles
  • Unrest comes 24 hours after violent demonstration in Spain, where protesters clashed with police in Madrid

By KERRY MCQUEENEY

 

 

Read more: http://www.dailymail...l#ixzz27adYvW57

Follow us: @MailOnline on Twitter | DailyMail on Facebook

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Austerity = Pain

 

People don't like it.

The other pathway (massive money printing) could be more painful, but it does defer the pain

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http://www.myspace.c.../blog/546325175

....the Spanish treasury is now in possession of $100 BILLION euros of Wanta-Reagan-Mitterrand Protocol funds transferred to Spain by the IMF ...

 

Spain's game plan is to keep the now irrelevant ECB (European Central Bank) in a box until the first of the year, and then launch a two-prong pincer operation.

 

1. Launch a sustained litigation at the International Court at the Hague against Goldman Sachs, JP Morgan Chase, Citibank, Bank of America, along with Barclays Bank of the United Kingdom.

 

These crooked banks sold bogus mortgage-backed securities to Spanish banks from 2003 to 2007 that effectively looted the Spanish treasury.

 

Note: This was all being done while the LIBOR rate was effectively being manipulated by these aforementioned banks and others.

 

2. Spain will then issue a notice of default to the European Commission on January 1, 2013 and effectively write off the debt, which was run up by these aforementioned banks in their mortgage-backed securities ponzi scheme.

 

......Greece, Portugal and Italy are following the same game plan.....

 

Item: This is Iceland all over again on a larger scale.

 

.... When the Supreme Court convenes Monday, October 1st, the first case on their agenda is the failure of the current and past U.S. administration to execute a clear inward remittance aka the final implementation of the Wanta-Reagan-Mitterrand Protocols that will return $1.5 TRILLION back to the U.S. Treasury and balance the U.S. budget deficit within 60 days.

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P.P.S. At this hour, U.S. Treasury Secretary and check kiter Timothy Geithner is refusing to return phone calls from IMF President Christine Lagarde (the subject is the immediate implementation of the Wanta-Reagan-Mitterrand Protocols in the United States).

 

The Protocols are already being implemented in Europe by the IMF.

 

P.P.P.S. When the Supreme Court convenes Monday, October 1st, the first case on their agenda is the failure of the current and past U.S. administration to execute a clear inward remittance aka the final implementation of the Wanta-Reagan-Mitterrand Protocols that will return $1.5 TRILLION back to the U.S. Treasury and balance the U.S. budget deficit within 60 days.

UNQUOTE===

 

If this were true, wouldnt we be hearing about it elsewhere ?

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P.P.S. At this hour, U.S. Treasury Secretary and check kiter Timothy Geithner is refusing to return phone calls from IMF President Christine Lagarde (the subject is the immediate implementation of the Wanta-Reagan-Mitterrand Protocols in the United States).

 

The Protocols are already being implemented in Europe by the IMF.

 

P.P.P.S. When the Supreme Court convenes Monday, October 1st, the first case on their agenda is the failure of the current and past U.S. administration to execute a clear inward remittance aka the final implementation of the Wanta-Reagan-Mitterrand Protocols that will return $1.5 TRILLION back to the U.S. Treasury and balance the U.S. budget deficit within 60 days.

UNQUOTE===

 

If this were true, wouldnt we be hearing about it elsewhere ?

 

 

As you say, If it were true we should be hearing other things about it from other news agency's . Iv not heard anything about this anywhere else but here.

 

So I would say that its a rumour. Weather that rumour is true or not we will have to wait and see.

 

But there is that old saying that there is no smoke without fire,

 

What is being reported here might not be true. but there could be something going on somewhere that has lead people to put two and two togeather and come up with five and start these rumours.

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Is France now a PIIG?

Facing recession : No bank haircuts taken, No tools left unused

=====

 

Collapse: so basically we define end of world as another Great Depression... if that is the case then I think the likelihood is quite high. We were on the verge of that after Lehman... and we prevented collapse with massive stimulus and money printing... yet we are headed back downhill in spite of all that money...

 

Iceland: I think the difference is that Iceland's banks are minnows... if a major US or EU bank defaults the entire global banking system goes down with it - recall what happened when Lehman tanked... international trade froze - the entire financial system froze...

 

That said, I believe governments made (well... the lobbyists force them) a huge mistake with the bail outs... what they should have done is wiped out the bond and shareholders... recapitalized the banks... and refloated them... that would have purged the system of bad debts...

 

But because the banking lobby is so powerful nobody even took even the slightest hair cut....

 

France: France was going down the drain long before Hollande came on the scene... but he without question is not helping the situation...

 

When you read the Richter article on France above... is not pretty much certain that France is about to join the PIGGS? France is the FIFTH largest economy in the world...

 

I reference a comment from Ray Dalio, most successful hedge fund manager of the past decade... Economist Buttonwood conference about 8 month ago:

 

'Europe is headed into recession... they have used up all the tools that governments would normally use and then some (stimulus... ZIRP...) my concern is how do they get out of recession'

 

The EU was an impossible construct from day 1 - and many warned of the time that it would not survive a crisis... I cannot see how the EU recovers from this dire situation.

 

http://hongkong.asia...nger-in-qe-etc/

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In another forum, someone said this group offering the money to Greece has also offered $5 B to bail out Alabama and $50 B to Cyprus.

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