Will this be seen as the week Germany's AAA credit rating became at risk?
If the press pronouncements of the past weekend on the subject of the payments agreed to be made to Spain by other countries in the Euro Group are to be believed, then Germany has effectively now given an open-ended commitment to bailout Spain's banking sector which cannot be quantifiable while the extent of the fall in property prices remains unknown.
There are no other countries within the Euro Group with the capability of backing their commitments with hard cash, given the Finnish opposition's declaration that they will require effective collateral, thus increasing the burden on Germany and France. The latter given the results in the first round of the parliamentary elections of yesterday seem to indicate the socialists will have complete control of the country after next Sunday, hastening their own rush towards bankruptcy. The Netherlands remains without a legitimate government until September!
The EFSF and ESM have their own question marks hanging above them, not least the lack of proper ratification of the latter Treaty!
It is of course not just Spain's banks that have cash flow problems. The very autonomous Spanish regions will also soon require huge amounts of German backed and denominated euros, then will come Italy.
Meantime the absence of conditionality for the Spanish rescue seems likely to virtually assure victory for the anti-Troika parties in Greece next Sunday. Cyprus could require its own bailout as early as this week moving yet one more nation from EFSF guarantor to cash recipent.
If Germany wished to destroy the EU it seems to me that they could not have chosen a more certain course than that of the past weekend to achieve that end.
Germany is taking a huge risk, that much is certain, but for what end? It is up to the rest of the EU to now ensure they do not succeed. The euro has become the instrument for the destruction of our democracies, now it is turning on our liberties, only our inner decencies can now be used to restore what has been lost.
Indignados demonstrating against the Spanish bailouts in Madrid yesterday had their identification documents confiscated, which in this despicable European Union renders them effectively non-people. Is that not evidence enough of where we are heading?
There are no other countries within the Euro Group with the capability of backing their commitments with hard cash, given the Finnish opposition's declaration that they will require effective collateral, thus increasing the burden on Germany and France. The latter given the results in the first round of the parliamentary elections of yesterday seem to indicate the socialists will have complete control of the country after next Sunday, hastening their own rush towards bankruptcy. The Netherlands remains without a legitimate government until September!
The EFSF and ESM have their own question marks hanging above them, not least the lack of proper ratification of the latter Treaty!
It is of course not just Spain's banks that have cash flow problems. The very autonomous Spanish regions will also soon require huge amounts of German backed and denominated euros, then will come Italy.
Meantime the absence of conditionality for the Spanish rescue seems likely to virtually assure victory for the anti-Troika parties in Greece next Sunday. Cyprus could require its own bailout as early as this week moving yet one more nation from EFSF guarantor to cash recipent.
If Germany wished to destroy the EU it seems to me that they could not have chosen a more certain course than that of the past weekend to achieve that end.
Germany is taking a huge risk, that much is certain, but for what end? It is up to the rest of the EU to now ensure they do not succeed. The euro has become the instrument for the destruction of our democracies, now it is turning on our liberties, only our inner decencies can now be used to restore what has been lost.
Indignados demonstrating against the Spanish bailouts in Madrid yesterday had their identification documents confiscated, which in this despicable European Union renders them effectively non-people. Is that not evidence enough of where we are heading?
Labels: EU tyranny, Euro collapse
posted by Martin at 8:02 AM
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