From a German Euro to a German ECB (II)

As mentioned several times in the past, Germany is running the European Union and Europe once again. This time around the conquest is via subjugation of national sovereignty and economic warfare. They have their key politicians in key positions across the European board. The European Commission, European Central Bank and International Monetary fund (the Troika) are all but one example. Regardless of how everything on the EU landscape currently looks, further federalization/integration is the only solution they keep proposing to their problems, and this is ultimately leading to a United States of Europe with its own European Army, which is already beginning to supplant NATO. The Fourth Reich has landed and if you’re looking for Nazis, you’re 70 years too late.

 

BERLIN/BRUSSELS (Own report) – The EU finance ministers’ decision to appoint the Spaniard Luis de Guindos to be vice president of the European Central Bank (ECB), will boost the chances of German Bundesbank President Jens Weidmann to become its next president. Berlin has welcomed the decision for Spain’s current Minister of the Economy Guindos, considered to be one of the fathers of the Spanish real estate bubble. Subsequent to his designation as vice-president, a northern European is expected to be given the post of ECB president, due to the EU’s proportional regional representation. According to observers, a conceivable deal may be reached with Germany’s Weidmann at the helm of the ECB and the post of EU Commission President going to France. The current German Bundesbank president is unpopular in Southern Europe because he has been systematically trying to prevent current ECB President Mario Draghi’s bond buying programs, considered to be vital for the crisis stricken countries. With Weidmann as ECB president, Germany would further tighten its grip on the euro zone’s financial institutions.

A Time Bomb

ROME/BERLIN (Own report) – Following Italian Prime Minster Matteo Renzi’s defeat in Sunday’s referendum, Berlin is urging Rome to quickly form a “capable government” and resume its adjustment to the German model of austerity. “The economic problems have to be tackled at the roots,” said Jens Weidmann, head of Germany’s central bank, yesterday. German financial experts are floating the idea of a cabinet of technocrats, modeled on the Mario Monti government. Monti ruled for a year and a half beginning in November 2011, without having been democratically elected and initiated an austerity program considered extremely harsh. Time is pressing: the bank crisis, caused, to a large extent, by bankruptcies due to German austerity dictates, which has been festering in Italy for a long time, is threatening to escalate. The Monte dei Paschi di Siena tradition bank’s recapitalization planned this week is acutely endangered. It cannot be ruled out that its bank crisis could soon spread to other Italian credit institutions and to German banks.

Italy’s PM Unloads On Deutsche Bank’s Unfixable Problem: “Hundreds And Hundreds Of Billions Of Derivatives”

 

After a tumultuous week for Deutsche Bank which saw the DOJ demand a $14 billion settlement for the bank’s past RMBS transgressions, it was another bad day for the giant German lender, whose stock and contingent converts tumbled after the investing community realized that even a modest $5.5 billion final settlement would leave it perilously undercapitalized and likely scrambling to raise more cash.

As SocGen’s Andrew Lim calculated, Germany’s biggest bank would be “significantly undercapitalized” even if an eventual settlement with the DoJ can be covered by the bank’s reserves. Any settlement above €5.4 billion would imply a capital increase is needed just to pay the fine, he wrote.

Germany’s Weidmann to head BIS

 

The influential Bank for International Settlements is the coordinating body for the world’s most powerful central banks. It has elected the head of Germany’s central bank as its new chairman. Is a policy shift coming?

Germany’s central bank president Jens Weidmann will become the new board chairman of the Bank for International Settlements (BIS), the bank announced on Monday.

Proof That Merkel Is Europe’s Economic Bully

This is precisely why it’s oft said here that all roads in Europe lead to Berlin.

Germany is back with a Fourth Reich and has subjugated the entire European continent. If you’re looking for Nazis in Panzers, you’re roughly 70 years too late, as economic and political means were used. The leaders in Europe will continually push for integration and more integration until the United States of Europe dream is realized, even by economic and political force if necessary. Some nations will eventually leave while some, such as Greece, will stick around because they believe in the fantasy. There will be roughly ten in the end.

 

She’s the most dominant leader in the euro zone with virtual veto power over decisions

“The lesson of this crisis is more Europe, not less Europe,” Angela Merkel said in 2012 as the integrity of the region’s monetary union was threatened by financial instability, touched off by Greek debt, that was spreading through the euro zone’s weaker economies. By “more Europe,” the German chancellor meant a deepening of the continent’s noble mission—peaceful integration to ensure prosperity and democracy—of which the common currency, the euro, is the ultimate symbol.

In the intervening three years, Greeks have come to understand “more Europe” as something different: “more Germany.” That was one of the few clear messages sent in a referendum on July 5 that had everything to do with Greek voters’ views on how Merkel had imposed her vision of Europe on the zone and if their troubled nation would be better served as part of its grand project, or not.

Grexit to Create Huge ‘Holes’ in German Budget – German Newspaper

Finance Minister Schäuble earlier asserted that the Greek crisis will have no serious consequences for the federal budget. However, President of the German Federal Bank Jens Weidmann views the situation in a different way.

Greece’s withdrawal from the Eurozone is likely to create huge ‘holes’ in the federal budget planned by German Finance Minister Wolfgang Schäuble (CDU).

Greece gets wake-up call: coming week could seal its fate

BRUSSELS (AP) — International creditors sent Greek Prime Minister Alexis Tsipras home from a summit Thursday with a clear message: swiftly tone down your demands in the bailout talks over the next week or face financial ruin.

The International Monetary Fund took the toughest stance, saying it was bringing its negotiators back to Washington as there had been no sign of compromise.

“There has been no progress in narrowing these differences,” IMF spokesman Gerry Rice said Thursday. “There are major differences between us in most key areas.”

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European Union President Donald Tusk earlier warned “there is no more time for gambling” and that next week’s meeting of the 19 eurozone finance ministers in Luxembourg should be the make-or-break session in sealing Athens’ fate.

Where Is Germany’s Gold?

Almost half of Germany’s gold is stored in vaults under the streets of Manhattan. Or is it?

Peter Boehringer hates the word “conspiracy.” It implies something crazy, and if you spend even a little time with the 45-year-old German, it becomes clear he’s driven by a desire for order. On a recent morning in Munich, he’s dressed in a cobalt blue shirt that matches his blue tie and blue eyes. His black hair is cropped close above his receded hairline. In his gray Volkswagen minivan, the cup holder contains two identical water bottles, each filled to the same level. At the end of a daylong interview, for which Boehringer has arranged an hour-by-hour itinerary, he sends a follow-up e-mail with a numbered summation of points he’s made. No. 2 says that the crusade he’s been waging for the last three years is simply about transparency. “Questions,” he writes, “by definition cannot be ‘conspiracy theories.’ ”

Boehringer is a gold bug, a member of the impassioned tribe of investors and academics who distrust central banks and paper money, unless the governments that print it will exchange the cash for gold or silver from their vaults. He has an asset management firm that invests his own money and that of clients in gold, silver, and mining stocks, and he’s a founder of the nonprofit German Precious Metal Society, which educates the public about “the craziness of unbacked monetary systems,” he says. In short, Boehringer is worried that the global economy is built on a fiction of currencies that aren’t backed by precious metals. Which is why he set out to make sure the gold that Germany and other nations say they have actually exists.

Bundesbank President Says ECB Monetary Policy ‘Grave Decision’

The head of Germany’s central bank has said that quantitative easing will not solve the economic problems of the Eurozone.

MOSCOW, January 25 (Sputnik) – The president of the German central bank, Jens Weidmann, has expressed his disagreement with the ECB’s decision to implement quantitative easing in an interview with German newspaper Welt am Sonntag.

“Bond-buying by the government is not a normal instrument of monetary policy,” Weidmann told the paper on Sunday. Such a policy, when carried out in a monetary union like the Eurozone, “is connected with particular drawbacks and risks,” Weidmann continued, adding that “there should be a high threshold for their use.”

Tumbling euro not enough to save Germany’s factories

German industrial production data has failed to match the expectations of analysts, as the country faces lower growth next year

Germany’s factories posted a meagre rise in output this November, as the slumping euro failed to lift exports.

As the value of the currency has depreciated, Germany’s exports have become relatively cheaper, yet hopes of a corresponding jump in manufacturing have yet to be realised.

Germany’s Bundesbank opens up to Quantitative Easing

The European Central Bank could buy loans and other assets from banks to help support the eurozone economy, Germany’s Bundesbank said Tuesday, marking a radical softening of its stance on the contested policy.

The ECB has cut interest rates to a record low, and promised to keep them low for some time, having also flooded the banking system with cheap crisis loans. But the eurozone economy is still weak, and inflation remains stuck well below the central bank’s target.

With the debate over possible alternative measures picking up pace, Bundesbank President Jens Weidmann said the ECB could consider purchasing eurozone government bonds, or top-rated private sector assets.

Bundesbank chief: Eurozone crisis could last 10 years

BERLIN – Germany’s central bank chief Jens Weidmann has said the eurozone crisis may take ten years to overcome, just as top euro officials claimed their response to the crisis is working.

“Overcoming the crisis and the crisis effects will remain a challenge over the next decade,” Weidmann told Wall Street Journal in an interview published on Wednesday (17 April).

The Unraveling in Europe

Geopolitical expert, JR Nyquist, on the situation in Europe:

How bad is the financial situation in Europe? Greece may be about to exit the eurozone, though not according to everyone. The Economic Times of India has published an interview with Jean Lemierre, the chief negotiator for private creditors in the Greece bailout. According to Lemierre, Greece has too much to lose and “a majority of political parties are in favor of the Euro.” Yet the Boston Globe is reporting that Bundesbank President Jens Weidmann has warned Europe’s central banks not to increase their exposure to Greece on account of political uncertainty.

Is there really danger? For those who live in hope, and for those who cling to economic optimism, there is nothing to fear but fear itself. For those who understand the Leftward drift of Europe’s political economy, and the inevitable bankruptcy that implies, there is no uncertainty whatsoever. Bankruptcy is coming for everyone and Greece is merely first in line.

The optimists, of course, are putting a brave face on it. They have Lemierre’s soothing words – and these words are repeated on every side. Bloomberg News is reporting that the “euro has weathered the worst financial crisis since the Great Depression….” Of course, weathering is nothing to worry over. It makes men and currencies stronger. It is no big deal if the euro has lost value of late. It is still above the dollar, and will probably stay above the dollar. Or is there someone with authority who says that Greece will lead the way for a series of euro-defections?

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We are approaching a situation in which economic distress engenders political unrest and revolution. If this happens in Europe it will probably happen in the United States as well. Many people will think such a prediction is farfetched, but revolutions have followed on the heels of economic distress in ancient and modern times. It is safe to say that the present economic unraveling isn’t going to stop. The reason for this may be found in the decadence of our civilization. We ourselves have degenerated from our ancestors. All the signs are present, including signs of impending calamity.

Full Article: The Unraveling in Europe (JR Nyquist)