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 ...
“Glad to see Graf and Hoenfels are still there.”
Graf has been HEAVILY built-up. Has a huge PX/Commissary mall. It is essentially 1 garrison with Vilseck (also heavily built up).
Was there last week, can you believe, I saw two old M880’s still being used by the Army!
As long as you didn’t see any M48A1s or M60s still frozen in the mud.:)
And just where are they planning to get this new capital? The Federal Reserve?
Recall that when this crash first began, it was the USA Federal Reserve that opened the discount window first. At that time, it also agreed to make available almost unlimited currency swaps of greenbacks, outside the Forex, to other central banks.
Recently, Helicopter Ben has said QE would be available to EUrotopia.
yitbos
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.I was glad when she led her party to (well, Pyrrhic) victory a few years ago, but didn't expect much out of her.
The problem is... the Federal Reserve just makes it up out of thin air. There is nothing behind this new money except the Fed's ability to hold issued bonds on its balance sheet forever. Under the "Greater Fool" Theory, the Fed is the ultimate fool!
Alas, all politicians know that the ultimate answer to all socialist redistribution mandated by majorities is inflation, the ultimate tax that pays for all deficits.
yitbos
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