How French banks now print their own money

The article Seeking Alpha article, here, by Kevin McElroy is best read in full, from here. If not note this extract:

I won't get into the boring details, but thanks to a new loophole, French banks are now being allowed to print money into existence. It's a new regulation for 2012 that comes direct from the ECB. Remember - the ECB is supposed to be the steward of the Euro. It was the ECB that demanded Greece get its house in order. It's the ECB that cracks the whip over every Euro-zone member to try to keep them all in line.

BUT do visit the infographic linked to the article and here:

Der Spiegel warning on French Banking dangers

The Der Spiegel article is linked here. BNP Paribas, one of the larger (and reportedly most at risk French banks) had its credit rating down-graded last Friday. The Bloomberg report on that decision, linked here, includes the following startling statement on the outlook for French banks as seen across the Atlantic:

The eight largest U.S. money-market funds reduced their lending to French banks by 44 percent last month as the European sovereign debt crisis worsened. Holdings in BNP Paribas, Societe Generale, Natixis SA and Credit Agricole dropped to $23.2 billion at the end of September from $41.5 billion the previous month, according to filings compiled by Bloomberg and published in today’s BloombergRisk newsletter.

“Funding market dislocations and negative market sentiment have revealed that the funding and liquidity profiles of the five banks are more vulnerable than we had thought,” S&P said in the statement. “The moderate current capital position of BNP Paribas, BPCE, Groupe Credit Agricole and Societe Generale is a ratings weakness,” S&P said.

One must wonder how much of the suggested 3 trillion now meeded to support the Ero can be underwritten by the French sovereign state. It seems small surprise that all in Germany seem to be backpeddling as fast as possible from the reports that a solution will be forthcoming next Sunday, let alone by 3rd November in Cannes, scene for many other fantasies, albeit usually only on celluloid!

China State Bank halts FX swaps with UBS and big 3 French banks!

CNBC TV  this morning has the startling news contained in this post's headline. Will this wake up the leaders of the Eurozone? Don't bet on it, as news elsewhere reports they are about to send more funds, including thosr from Britain via the IMF and the EFSM to Greece!

Abracadabra! - Disappearing Debts French Style!