Southern Europes debtor states must pledge their gold reserves and national treasure as collateral under a 2.3 trillion stabilisation plan gaining momentum in Germany.
The German scheme -- known as the European Redemption Pact -- offers a form of "Eurobonds Lite" that can be squared with the German constitution and breaks the political logjam. It is a highly creative way out of the debt crisis, but is not a soft option for Italy, Spain, Portugal, and other states in trouble.
The plan is drafted by the German Council of Economic Experts and inspired by Alexander Hamiltons Sinking Fund in the United States -- created in 1790 to clean up the morass of debts left by the Revolutionary War. Flourishing Virginia was comparable to Germany today.
Chancellor Angela Merkel shot down the proposals last November as "completely impossible", but Europes crisis has since festered, and her Christian Democrat party has since suffered crushing defeats in regional elections.
The Social Democrat opposition supports the idea. The Greens say they will block ratification of the EU Fiscal Compact in the German Bundesrat -- or upper house -- unless Mrs Merkel relents.
"The Redemption Pact cleverly combines the advantages of lower interest rates through joint European borrowing with a reduction of debt," says Green leader Jürgen Trittin. "Joint liability would be limited in both time and scale."
Continued on Page 47
France's new president, François Hollande, has put the German chancellor on the defensive with his growth agenda. Now Angela Merkel is planning to strike back. She is calling for structural reforms to save the euro with a six-point plan aimed at harmonizing austerity and growth in Europe once again.
Continued on Page 47
#3
The Hollande Days is unappetizing to me as well. So it seems that in addition to head of government change-outs a la Italy and Greece, there seems to be mechanism in the Euro Nation to control the coffers as well. This is in addition to nations effectively having others vote them in.
Its a good thing they have pretty pictures and know multiple languages such as Austrian, otherwise it would look a bit like tyranny. The only thing missing would be an ad-hoc militia composed of foreigners who are hooked on the government interested in threats and violence as a method to persue their own interests. Yes I believe that is the preferred method, I'd ask Gadaffi but hey, you know.
I guess if Germany needs to collect, they could send their reps and bankers to the low countries, convence them, then send the bankers and couriers up around then into Paris. Set up shop, take some pictures for insurance sakes.
Besoeker, have a location picked out? Would Morocco be...wait a second, is this that deja vu they keep talking about?
[Iran Press TV] Spanish prime minister says that at the moment Madrid is going through "an extremely difficult phase," as it's very hard for his country to raise funds on the debt market.
Mariano Rajoy's Monday comments came after Bankia shares nosedived over 28 percent on reports that the bank needs more bailout cash than originally thought.
Rajoy however, downplayed the impact of financial problems that the country's fourth largest bank is facing saying that he doesn't believe that Bankia's woes have contributed to the latest surge in the risk premium requested by investors to hold Spanish debt.
The conservative prime minister insisted that Spain's banking sector would not need an international rescue.
Recently nationalized Bankia, Spain's fourth-largest bank has asked for an additional 19 billion euros in government help, in addition to the 4.5 billion euros rescue fund received from the state last month.
Meanwhile, ...back at the shouting match, a new, even louder, voice was to be heard... Spain's wealthiest autonomous region, Catalonia, has also asked for central government's help to pay 36 billion euros of debt refinancing bills this year.
#2
Wehell, looks like somebody took the $$$ + ran ...
To wit,
* CHINA DAILY FORUM > REPORT: ECB SECRETLY DISTRIBUTES "INFINITE" MONEY, to Greek + other EuroZOne Banks.
Greek Banks per were allegedly funneled/given over EU$100.0Bilyuhn.
* SAME > EUROZONE CRISIS FACES "CRITICAL MMOMENT":ECB PRESIDENT[Mario Daghri].
IIUC DAGHRI = attempted TO Argue that IT IS FOR EUZ MEMBER-NATIONS TO ADJUST THEIR DOMESTIC + INTERNATIONAL FINANCIAL, ECON SCHEMAS TO THE EURO-DOLLAR = SINGLE-VALUE CURRENCY, NOT FOR THE ECB, ETC. TO ADJUST TO GOVTS-STATES???
* SAME > PANIC SETS IN AS BRITISH EXPATS DITCH EUROS.
* SAME > UK DEEPER IN RECESSION THAN THOUGHT.
* SAME > UK FIRMLY IN DOUBLE-DIP RECESSION.
* FYI DEFENCE FORUM INDIA > BRITISH, SPANISH SHIPS INVOLVED IN [fishing] STANDOFF OVER GILBRALTAR.
Madrid claims London = ex-PM Blair promised to return Gibraltar to them - they want it, + they want back now or ASAP!
Iff neither side has any $$$, will this result in violence between Spanish Fishermen + Gibraltar-based UK Security Boats, or will London have to call in their own Fishing War Fleets to combat Spain's Fish Armada???
#3
Uhh, wasn't Catalonia talking like they were going to split off on their own a couple years ago? They had a website that inferred quite heavily that they were going to be their own country soon. Now they are coming to Madrid, hat in hand, asking for 36Billion Euros?
If I were the Prime Minister, I'd tell them to get bent, before I a stole/squandered a single additional Euro from the taxpayers, I'd tell Catalonia to get bent.
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Spanish prime minister says that at the moment Madrid is going through "an extremely difficult phase," as it's very hard for his country to raise funds on the debt market.
