Thursday, 28 July 2011

Germany in the EU driver's seat, director of the EFSF - Updated.

Peter Zeihan
Europe can't function as an entity unless someone is in control. Germany is the only country with a large enough economy to achieve control of Europe and make it functional.  At considerable cost to itself, Germany is now director and principal guarantor of the EFSF. (European Financial Security Facility).  Distressed states, with German permission, can get large amounts at affordable rates.  The British veto is bypassed.  Stratfor concludes, "Germany is standing up for itself once again".

h/t John
Zeihan and Papic writing at
Marko Papic
August 22nd:  From Zero Hedge:            August Outlook from the Bundesbank:"Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened." Translation: "we will gladly help everyone out... in exchange for a little of that vastly overrated fiscal sovereignty... Did we say a little? We meant all of it..."

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