Posted on 12/16/2010 4:56:49 PM PST by bruinbirdman
Germany has refused to give any ground on Europe's rescue machinery despite the escalating political and economic crisis across much of the eurozone periphery, guaranteeing a bitter clash with EU partners at a crucial summit in Brussels on Thursday.
Chancellor Angela Merkel pledged that no euro member would be "left on their own", but dug in her heels against the creation of eurobonds and demands to boost the EU's €440bn (£372bn) bail-out fund. "We must not make the mistake of thinking that collectivising risk is the answer," she told a stormy session of the Bundestag.
The defiant stand came as Moody's issued a downgrade warning on Spain owing to "high refinancing needs in 2011" and the risk of further bank bail-outs. It said central and regional governments must finance €200bn next year. Spanish lenders have to roll over a further €90bn.
"These needs are now rendered more challenging by the fragile confidence of international capital markets. Foreign investors have typically funded around 5pc of Spain's funding requirements. They may be less willing to do so in the immediate future given recent speculation about the treatment of bondholders should Spain be pushed to seek support from the EU/IMF," it said.
Moody's said Spain may need to inject €80bn of fresh capital into the banks under a "stressed scenario". The agency said Madrid seems unable to control the debts of regional juntas. There appear to be “no policy initiatives” to discipline health and education spending.
Merrill Lynch said in its global outlook that Spain’s public debt is “under control” but bank woes could yet entangle the state, forcing Madrid to seek a rescue.
Yields on 10-year Spanish bonds rose briefly to 5.6pc on Wednesday.
Bond traders say the country may have trouble raising funds until it becomes clear
(Excerpt) Read more at telegraph.co.uk ...
More like UK and EU are bankrupt. The euro currency will survive as will the pound sterling. As will the greenback.
Unfortunately, they will survive only through inflation.
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IMO
yitbos
Would he be pleased or offended if you submitted his name for the Darwin Award?
Glad to see Graf and Hoenfels are still there.
well, when West Germany decided to set the newly acquired East German mark at parity with the West German mark, at I believe a 10:1 loss to the West, where were their European brethren? What? Nowhere to be found? But I thought it was one for all and all for one!
Poop has it that the EU insisted Germany agree to a single currency (euro) regime in exchange for approval of reunification.
The decision to convert East German Marks at 1:1 was West Germany's.
yitbos
I sure hope the GOP congress is taking notes so that when socialist Democrat meccas like California come begging for a federal “bailout”, the Republicans can tell them to go play in the street.
To paraphrase Maggie, “The problem with socialism is that you eventually run out of other people’s money.”
Congratulations to Germany and Merkel for standing tall.
And there won't be any discipline until it is forced on them. "There's no more money, go play in the street" is the only thing scumbag liberal Democrats (no matter what country they're destroying) understand.
Excellent idea! CMG for US Senate!
There will always be an England...
I arrived at Downs Barracks in 1969 as a 17 year old private
with 58 Engr Co.
Later I matriculated through Tompkins in Schwetzingen and
Kelley in Darmstadt (547 Engr Bn).
Op Alpha on the old Hesse-Thuringia border is now a museum.
Mc Nair Barracks in Berlin is the former Lichterfelde Infanterieschule and the base of the Liebstandarte SS AH.
It was also the location of ‘Night of Long Knives’ executions as SS firing squads dispensed with SA members
thought loyal to Roehm.
Gee, maybe would could save a few tax dollars by reducing the number of overseas military bases. Perhaps we need a base closing commission for overseas?
The Brits, the krauts and the Dutch all know the EU is past life support. The Brits knew from the git-go that it was a welfare scam for the producers to support the non-producers. The only thing that surprises me is that it crumbled this soon. I thought it might take a little longer to suck the producers dry, but I was wrong.
GE was in favor of the EU when it was formed. They helped strong-arm the Brits into it. The krauts owe the Brits an apology. The Brits owe the krauts an “I told you so.”
Protectionism is socialist: it is a welfare scheme for do-nothing domestic unions.
Why should the rest of us be forced to pay more for stuff just to support your union pension?
Probably true, although, given its current demographics, the "sceptred isle" of poetry will live on only in books that nobody will read.
It was a charade for her electorate. She already caved (as usual). Come 2013 the “rescue fund” will be unlimited, bondholders won’t have to take a haircut, she sees the “common economic government” underway and Europe is “not yet” ready for a common bond.
Traitorette.
Denmark still has the Krona, not the Euro.
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