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After the EU Summit: London’s ``Weimaristas’’ Now Deploy to Get Mega-Bailouts Rolling in Earnest
1 July 2012
Now that German Chancellor Angela Merkel was strong-armed into making significant concessions at the latest EU summit, opening the door to London’s hyperinflationary bailout mechanisms, London’s "Weimaristas" have lost no time in stating their intention to kick the door down altogether in the days immediately ahead, and get a serious mega-mega-bailout underway, as demanded by the unstoppable meltdown of their trans-Atlantic financial system. The ECB, starting with next Thursday’s interest rate-setting meeting, is the immediate focus for follow-up action. Typical of the marching orders issued in the financial media is a Bloomberg interview with Deutsche Bank’s London economist Gilles Moec: "The ball is very much in the ECB’s camp. The EU statement creates an environment in which it makes it easier for them to take more unorthodox decisions." Under the subhead "More Needed," Bloomberg then reminds readers that the EFSF and ESM bailout funds are only good for about 500 billion euros, peanuts compared to the 2.5 trillion euros bonded debt of Italy and Spain alone. What is needed, they argue, is for the ESM, which is due to come into force in July, to get a bank license that would allow it to tap the ECB, "That would help ramp up the power of a kitty now dwarfed by the size of the bond markets that leaders want them to rescue." Other bankers quoted by Bloomberg go on to promise "further chaos in markets" to get their way. Such chaos could be conveniently forthcoming as early as next Thursday, when both Spain and France try to auction sovereign bonds. Associated Press also honed in on the ECB to handle the enormity of the bailout tasks required: "Most analysts cheered the EU plans but worried about the questions left unanswered. And they said the [EFSF and EMU] bailout funds are too small to handle the tasks that could be thrown at them... The solution hovering in the background, say some economists, is the European Central Bank... The ECB’s next policy meeting is Thursday in Frankfurt." |