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If tiny Greece can't be saved, how can Spain, Italy, Portugal, Ireland, and other troubled Eurozone nations combined?
ECB President Mario Draghi promised whatever it takes to preserve the euro system. Earlier policies tried failed. What new tricks hasn't he tried? Perhaps none but he dare not say.
He can keep binge money printing. He can't buy sovereign debt without European Stability Mechanism (ESM) authority. It's proposed, but not in place. If created, it's a permanent bailout fund.
Creation depends on Germany's Constitutional Court and parliament. Judges must agree to change German constitutional law. At issue is will they or won't they without required national referendum approval.
If approved, parliament must then act. In mid-September, another moment of truth approaches. Legislators will act one way or the other.
Massive money printing means future inflation and a much weaker currency. German officials strongly propose monetary madness.
Eurobonds issuance is another possible scheme. Angela Merkel said no "as long as (she) live(s). She means it. Doing so violates Germany's constitution. Doing so may cost her reelection. Germany's AAA credit status would also be at risk.
It's debt/GDP ratio already is too high at around 90%. Hundreds of billions of backdoor bailouts exacerbated its problems. Germany's pockets aren't deep enough to endlessly supply more.
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