Share on Google Plus Share on Twitter Share on Facebook 3 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (3 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   No comments

OpEdNews Op Eds

German High Court Capitulates to Bankers

By (about the author)     Permalink       (Page 2 of 4 pages)
Related Topic(s): ; ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H3 9/13/12

Become a Fan
  (191 fans)
- Advertisement -

Serious internal opposition exists. The group Mehr Demokratie (More Democracy) sued the High Court to halt ratification. It claims approval entails "unlimited and irreversible liability risks." It wants a referendum held to let Germans decide how their money will be spent.

Christian Social Union member Peter Gauweiler called accepting new liabilities irresponsible. Members of Chancellor Angela Merkel's Christian Democrats are skeptical. Wolfgang Bosbach has mixed feelings, he said. 

Despite some advantages, he's greatly concerned about increasing potential liability beyond what's safe and sensible.

In June, Germany's Bundestag approved ESM. President Joachim Gauck is free to sign it. His signature is required.

ESM and EFSF will operate in parallel until mid-2013. At that time, ESM will be on its own. Germany must provide 27% of its funds. Critics warn amounts will end up much more than anticipated. 

ESM will have 700 billion euros in capital. Only 500 billion maximum can be loaned. Troubled Spain and Italy need multiples that amount. Enough resources aren't available to provide it.

A push come to shove moment awaits. It's just a matter of time. It may arrive sooner than expected. Economic conditions are dire and worsening. 

Brussels-based Bruegel think tank deputy director Guntram Wolff believes ESM will only provide short-term relief. He doesn't think it's enough. How can it be with member state resources inadequate to fund it.

- Advertisement -

ING economist Carsten Brzeski said today's ruling fell short. It doesn't resolve crisis conditions. It's more feel good than real good. What's next remains a big unknown. Clarity may arrive with a bang or thud. 

Once again, time alone was bought, little else. Nothing fundamental changed. Perhaps fed up tax payers suffering austerity pain will have final say. If not them, expect economic reality to rain on today's parade. Severe problems remain unresolved.

On September 10, Goldman Sachs analyst Richard Ramsden called banking slowdown structural, not temporary. "The operating environment is unlikely to change any time soon," he said.

Morgan Stanley calls the global economy a "twilight zone" of uncertainty. Graham Summers has been spot on in past analyses. He calls so-called "unlimited" ECB bond buying "Super Mario's big bluff."

Market euphoria is based on his scheme and hope that ESM can work. Mario's plan replicates what he tried before that failed. Repackaging failure under a new name won't turn out better than before. It's old wine in new bottles gone rancid.

- Advertisement -

Conditionality is involved. Bailout help requires austerity. Imposing it negates "unlimited." Mario's plan is more bluster than bite. Spain and Italy reject it. Greece also balked. They want unconditional aid. 

It's not automatic. Troubled nations must apply for it. EFSF funds will be used. With around 65 billion euros left, they're severely depleted. Spain and Italy are required to supply 30% of its resources. 

How can they in effect bail themselves out? Draghi has good reason for concern. He's not sure what to do that works.

Next Page  1  |  2  |  3  |  4

 

I was born in 1934, am a retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon


Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
No comments