Ambrose Evans-Pritchard in the Telegraph:
German President Christian Wulff has accused the European Central Bank of violating its treaty mandate with the mass purchase of southern European bonds.
In a cannon shot across Europe’s bows, he warned that Germany is reaching bailout exhaustion and cannot allow its own democracy to be undermined by EU mayhem.
“I regard the huge buy-up of bonds of individual states by the ECB as legally and politically questionable. Article 123 of the Treaty on the EU’s workings prohibits the ECB from directly purchasing debt instruments, in order to safeguard the central bank’s independence,” he said…
Little late there, Wulff, old boy – the European Central Bank has been burying the European Union in bogus debt for three years.
This does, though, point to the end of German patience – after all, Germany can start printing Deutschmarks tomorrow and they would probably be at par with the British pound, and possibly higher. European money would start to flood in to Germany as people seek a safe haven from the coming Euro-collapse. It is time to call a halt to this before the entirety of Europe is brought down because the ECB wants to bail out banksters who idiotically loaned money to places like Greece, Italy and Spain. It can’t be done – and either the PIIGS bondholders will go under, or everyone will. If I were German, I’d be saying “bondholders go under”.
Will Germans discover a backbone and send the ECB packing, or will lingering guilt over WWII (to be sure, that is something to be guilty about) cause German’s to sacrifice their own prosperity in order to be “good Europeans”? Time will tell…
There isn’t much guilt left lingering in Germany these days. Most of what is left is coming from the ruling/privledged/elite/classes. The ones that do not work for a living.
The typical Johan and Antonia on the street would be more than thrilled to see Deutsch Mark come back. The ones that work for a living are starting to get tired of subsidising everbody elses vacations in the sun.
sounds like half the US
What we’re witnessing in Europe is sort of akin to watching a giant house of cards collapse in ultra-slow motion.
can we be far behind?
I remember some people warning that we were 15 – 20 years behind the collapse of the soviet union if we didnt do something different……….We DIDNT
People like to warn about collapses, it gives them hope that their lives won’t always be utterly boring forever.
Neo,The workers of the world are getting ready to unite any day now and start thier proletarian revolution. They would of united last week but it was time to pay for the mooch’s vacations. Now they have to wait until teh benacke prints up some more money.
hey…its ok…unkaOBAMA will send them to the credit window at the fed…
eveytings gonna be awyt…wayt an c
With tariffs and regulations as barriers to the EU market place Germany and France have been able to take advantage of their size, economic stability and historic productivity to gain large trading surpluses with the rest of Europe. OTOH they are not more productive than Korea, Japan, the US and a host of other countries.
If the EU was to break up, there would be no reason for a Spaniard to prefer a German car over a Korean car of the same caliber and the economy of Germany would be a quite a different thing. That is why the Germans will complain, but will continue to buy the debt and eventually get some nice vacation houses in Greece and the like.
Harrumph, well, pip pip, from an academic point of view harrumph it is clear from all indications (clears throat) that the .. Germans … as it were … in an obvious display of self-evidence will, in all likelihood speak primarily the uh the GERMAN language because they arre harrumph keenly aware that if they, and by “they” I mean “them” of course, if “they” there it is again, the “they” are you writing this down? They understand that if they don’t change directions they will harrumph surely end up where they are going. Ut ut
Remember to read chapters two and six and I’ll be in my office on Tuesday but not Thursday.