According to the Twitterverse, German Finance Minister Wolfgang Schaeuble has said that Greece will need another aid programme.
This should come as no surprise, given that the Bundesbank said the self same thing the other week.
Showing posts with label bundesbank. Show all posts
Showing posts with label bundesbank. Show all posts
Tuesday, August 20, 2013
Monday, August 12, 2013
Greece Imploding
Greece is continuing on its downward spiral to financial implosion.
To add to the woes of the good people of Greece, on top of last week's truly shocking youth unemployment statistics (close to 65%), Reuters reports that Greece's economy shrank at annual pace of 4.6% in the second quarter, contributing to a slump of more than 20% in real terms since 2008.
Ironically, in the delusional world of economists, these figures were slightly better than the 5% contraction forecast.
Delusions aside, Der Spiegel has blown the whole charade of bailing out the Greek economy wide open. It quoted an internal document prepared by the Bundesbank as saying that Europe "will certainly agree a new aid programme for Greece" by early next year at the latest.
The Bundesbank also described the risks associated with the existing aid package for Greece as "extremely high", and said the approval last month of a 5.8 billion euro aid instalment to Athens had been "politically motivated".
As I have noted many times before, in order to survive as a democracy and civilised society Greece needs to exit the Eurozone now; others such as Cyprus need also to consider their positions.
To add to the woes of the good people of Greece, on top of last week's truly shocking youth unemployment statistics (close to 65%), Reuters reports that Greece's economy shrank at annual pace of 4.6% in the second quarter, contributing to a slump of more than 20% in real terms since 2008.
Ironically, in the delusional world of economists, these figures were slightly better than the 5% contraction forecast.
Delusions aside, Der Spiegel has blown the whole charade of bailing out the Greek economy wide open. It quoted an internal document prepared by the Bundesbank as saying that Europe "will certainly agree a new aid programme for Greece" by early next year at the latest.
The Bundesbank also described the risks associated with the existing aid package for Greece as "extremely high", and said the approval last month of a 5.8 billion euro aid instalment to Athens had been "politically motivated".
As I have noted many times before, in order to survive as a democracy and civilised society Greece needs to exit the Eurozone now; others such as Cyprus need also to consider their positions.
Wednesday, January 16, 2013
Bundesbank Repatriates Gold Bullion
The Bundesbank is to repatriate gold reserves held abroad in order to tighten control and combat future currency crises. It will repatriate a large percentage of its holdings from New York and all of its bullion from Paris.
This move signals the demise of the the Dollar as a reserve currency (as the gold stored in the Fed can be pledged to shore up the Dollar), and the resurgence of a quasi gold standard.
The lesson is clear, if you invest in gold do not rely on mere paper certificates to validate your holding.
This move signals the demise of the the Dollar as a reserve currency (as the gold stored in the Fed can be pledged to shore up the Dollar), and the resurgence of a quasi gold standard.
The lesson is clear, if you invest in gold do not rely on mere paper certificates to validate your holding.
Wednesday, August 01, 2012
Bundesbank Challenges ECB To Pissing Contest
In an interview conducted in June, but "conveniently" published on the Bundesbank's website today, the Bundesbank president Jens Weidmann has stressed that the ECB should not exceed its mandate.
He also noted that the Bundesbank is more "important" than others in the eurozone.
The Telegraph quotes him:
He also noted that the Bundesbank is more "important" than others in the eurozone.
The Telegraph quotes him:
"[The ECB] must be aware that its independence obliges it to respect its own mandate and not to exceed it.It seems that the Bundesbank has just challenged the ECB to a pissing contest!
We are the largest and most important central bank in the Eurosystem and we have a greater say than many other central banks in the Eurosystem."
Friday, July 27, 2012
Bundesbank Shoots Draghi's Fox
Yesterday Mario Draghi, head of the ECB, was making all sorts of rash promises about the ECB doing whatever was needed to prop up the Euro etc.
I noted:
Whatever Draghi might like to do, the Bundesbank won't allow him to do it; ie they have shot his fox.
I noted:
"Draghi then reverted to type, and promised that the ECB will "do whatever it takes to preserve the euro".Today the Bundesbank has verified my conclusion, by stating that it remains opposed to further bond buying by the ECB.
This of course is patently untrue ."
Whatever Draghi might like to do, the Bundesbank won't allow him to do it; ie they have shot his fox.
Saturday, March 31, 2012
Greek Bonds Worthless
The Bundesbank announced yesterday that it will refuse to accept Greek, Irish or Portuguese sovereign/bank bonds; ie it will cease to lend to commercial banks that use Greek, Irish or Portuguese bonds as collateral. As ekathimerini points out:
It is now only a matter of time before Greece, and other peripheral nations, leave or are kicked out of the Eurozone.
"It also means that the credibility of the new bonds issued is no different to that of the old ones they have replaced."This effectively kills the European peripheral bond market and, by definition, the current structure of the Eurozone.
It is now only a matter of time before Greece, and other peripheral nations, leave or are kicked out of the Eurozone.
Monday, December 19, 2011
Lions Led By Donkeys
Another day, another conference in the interminable death mach towards the demise of the Euro.
Today, at 15:30 CET, European finance ministers will hold a conference call to discuss increasing the funding of the IMF by 200 billion euros.
Apparently this was agreed at the summit on 9th December.
However, the Bundesbank has already put the kibosh on anything tangible being achieved today; by stating that is sees "no urgent need" to reach a decision.
Just in case the markets don't get the message, that nothing tangible will be agreed, the German Finance Minister has done his best to undermine any residual confidence remaining.
Last night Wolfgang Schauble said:
"It is clear that the sooner and the more paid-in capital the ESM (European Stability Mechanism) has, the more it gains trust on the financial markets. My priority is to create trust."
"Trust" is not a word that is used very often when describing the feelings that the markets have for the "leaders" of the Eurozone.
However, this morning his colleagues from the Finance Ministry were quick to ensure that "trust" was killed ASAP, stating:
"It is not very likely we will pay the full contribution (in 2012)".
Thus ends the year, not with a bang but with a whimper.
The people of Europe are lions led by donkeys!
Today, at 15:30 CET, European finance ministers will hold a conference call to discuss increasing the funding of the IMF by 200 billion euros.
Apparently this was agreed at the summit on 9th December.
However, the Bundesbank has already put the kibosh on anything tangible being achieved today; by stating that is sees "no urgent need" to reach a decision.
Just in case the markets don't get the message, that nothing tangible will be agreed, the German Finance Minister has done his best to undermine any residual confidence remaining.
Last night Wolfgang Schauble said:
"It is clear that the sooner and the more paid-in capital the ESM (European Stability Mechanism) has, the more it gains trust on the financial markets. My priority is to create trust."
"Trust" is not a word that is used very often when describing the feelings that the markets have for the "leaders" of the Eurozone.
However, this morning his colleagues from the Finance Ministry were quick to ensure that "trust" was killed ASAP, stating:
"It is not very likely we will pay the full contribution (in 2012)".
Thus ends the year, not with a bang but with a whimper.
The people of Europe are lions led by donkeys!
Thursday, April 22, 2010
Greek Contagion Fears
Greece's attempts to renegotiate the terms of its IMF/EU bailout package has seriously spooked the markets, forcing interest rates on Greek debt up.
The attempt at renegotiation has also spooked the IMF and Bundesbank, who both warn that there is a serious risk of contagion spreading from Greece to other Eurozone countries unless matters are not addressed with some urgency.
The Telegraph quotes from the IMF's World Economic Outlook:
"In the near term, the main risk is that – if left unchecked – market concerns about sovereign liquidity and solvency in Greece could turn into a full-blown sovereign debt crisis, leading to some contagion."
Axel Weber, CEO of the Bundesbank, is also quoted saying that there is a:
"significant risk of contagion effects. A possible default by Greece would most likely be a severe economic blow for other countries in monetary union".
Those politicians in the UK who claim that it would be beneficial for the UK to join the Eurozone may care to watch the unfolding car crash of the Greek financial system, before making nay further pro Euro pronouncements.
The attempt at renegotiation has also spooked the IMF and Bundesbank, who both warn that there is a serious risk of contagion spreading from Greece to other Eurozone countries unless matters are not addressed with some urgency.
The Telegraph quotes from the IMF's World Economic Outlook:
"In the near term, the main risk is that – if left unchecked – market concerns about sovereign liquidity and solvency in Greece could turn into a full-blown sovereign debt crisis, leading to some contagion."
Axel Weber, CEO of the Bundesbank, is also quoted saying that there is a:
"significant risk of contagion effects. A possible default by Greece would most likely be a severe economic blow for other countries in monetary union".
Those politicians in the UK who claim that it would be beneficial for the UK to join the Eurozone may care to watch the unfolding car crash of the Greek financial system, before making nay further pro Euro pronouncements.
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