-:Undertaker:-
26-09-2011, 10:54 PM
http://www.telegraph.co.uk/finance/financialcrisis/8790785/German-turmoil-over-EU-bail-outs-as-top-judge-calls-for-referendum.html
http://www.dailymail.co.uk/news/article-2041201/George-Osbornes-eurozone-crisis-warning-6-weeks-save-euro.html
German turmoil over EU bail-outs as top judge calls for referendum
Germany's top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new constitution and a popular referendum, vastly complicating plans to boost the EU's rescue machinery to €2 trillion (£1.7 trillion).
http://i.telegraph.co.uk/multimedia/archive/02010/MERKEL-GER_2010261c.jpg
The accusation that German leaders are conspiring with EU officials to emasculate the Bundestag (German Parliament) is highly sensitive.
Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent. "The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution)," he said. "There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people," he told newspaper Frankfurter Allgemeine.
The extraordinary interview comes just days before the Bundestag votes on a bill to revamp the EU's €440bn bail-out fund (EFSF), enabling it to purchase EMU bonds pre-emptively and recapitalise banks. Tensions are running high after it emerged over the weekend that officials are working on plans sketched by the US Treasury and the European Commission to "leverage" the firepower of the EFSF to €2 trillion, in conjunction with lending from the European Central Bank.
http://www.youtube.com/watch?v=lqN3amj6AcE&feature=player_embedded#t=7s
Carsten Schneider, finance spokesman for the Social Democrats, demanded that Chancellor Angela Merkel and finance minister Wolfgang Schäuble clarify their "true intentions " before the vote on Thursday. "A new multi-trillion programme is being cooked up in Washington and Brussels, while the wool is being pulled over the eyes of Bundestag and German public. This is unacceptable," he said. Prince Hermann Otto zu Solms-Hohensolms-Lich, the Bundestag's deputy president and finance chief for the Free Democrats (FDP) in the ruling coalition, expressed outrage over the secret plans.
"Unless the German finance minister can give an immediate assurance that there will be no leveraged formula, I will not vote for this law. We might as well dispense with months of negotiations if all this means is that the Bundestag will be circumvented and served cold left-overs," he said. The accusation that German leaders are conspiring with EU officials to emasculate the Bundestag is highly sensitive, going to the core of the raging debate in recent months over EU encroachments on German democracy.
http://www.youtube.com/watch?v=eW0LQsXJRdU
Dr Vosskuhle said that the improvisation of far-reaching policies had become "dangerous", and warned against schemes to circumvent the rule of law with backroom deals. "Germany has a great affinity for the rule of law. People expect the political class to obey the rules." He reminded leaders that the court had set clear boundaries to EU bail-outs in a ruling earlier this month, although it gave the go-ahead for the package of measures agreed so far. "Our judgment makes clear that the Bundestag cannot abdicate its fiscal responsibilities to other actors. And no permanent mechanism may be created that entails taking over the liabilities of other states," he said. When asked whether eurobonds are off limits, Dr Vosskuhle said any ruling by the judges would be "pretty clear".
Ewald Nowotny, Austria's central bank governor, said it would be a grave error for Europe to try to bounce Germany into decision of huge scope and significance without the assent of the people. "It is quite dangerous when a feeling builds up in Germany that the country is being overrun, and specifically, that such an important country is being outvoted in the ECB," he told Der Standard. There is little doubt that Chancellor Merkel can pass the EFSF bill with the help of the Social Democrats and Greens. It is less clear whether she can survive the vote without an absolute majority from her own coalition. Green leader Jurgen Trittin said her government would be "finished" if it has to rely on opposition votes.
Her task has become that much harder after Standard & Poor's hinted Germany itself might loose its AAA rating if the rescue machinery is greatly expanded.
Well thats it now, we're nearly here. Despite pledges from all of the political class (the European Union, George Osborne, Labour, the Conservatives, the Liberal Democrats, David Cameron, Ed Balls, the IMF, the World Bank, the United States) its all crumbling before our eyes. If you recall the various bailouts given to Greece among others over the past year or so, the EU kept telling us beforehand 'Greece wont need a bailout' and da da! it did and the same with the ultimate default. But thats not all, what a bailout essentially is is an emergency loan to a country which is utterly broke.
And as most sane people know, you can't pay off debt with more debt - but this still isn't stopping them. As the trader above and Godfrey Bloom MEP warn above, the next crisis is likely to be a currency crisis - the collapse of the Euro for sure, the collapse of the U.S. Dollar in time. The good news is that in their desperation to save the Euro and the EU project, the federalists will be brought out into the open and will attempt to make final all-out attempt to create the European superstate they so desire. This of course is what happens when you join a monetary union which will never work and which was only introduced as a political method of creating a United States of Europe against the wishes of the people - its also what happens when government is out of control and spends too much (thanks Labour for the 50% increase in public spending and the Tories who supported it along with bailing out broke banks with toxic assets) and when government destroys the currency by printing (fiat currencies which Ron Paul has warned against).
On this forum many agreed with what myself, UKIP, free-marketers, Tory eurosceptics and many others said - we've been proved 100% correct and its still not over. Wait until Italy, Spain, Portugal and France fall next after Greece defaults.
Thoughts on the economic crisis? if you thought 2008 was bad wait until this hits!
http://www.dailymail.co.uk/news/article-2041201/George-Osbornes-eurozone-crisis-warning-6-weeks-save-euro.html
German turmoil over EU bail-outs as top judge calls for referendum
Germany's top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new constitution and a popular referendum, vastly complicating plans to boost the EU's rescue machinery to €2 trillion (£1.7 trillion).
http://i.telegraph.co.uk/multimedia/archive/02010/MERKEL-GER_2010261c.jpg
The accusation that German leaders are conspiring with EU officials to emasculate the Bundestag (German Parliament) is highly sensitive.
Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent. "The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution)," he said. "There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people," he told newspaper Frankfurter Allgemeine.
The extraordinary interview comes just days before the Bundestag votes on a bill to revamp the EU's €440bn bail-out fund (EFSF), enabling it to purchase EMU bonds pre-emptively and recapitalise banks. Tensions are running high after it emerged over the weekend that officials are working on plans sketched by the US Treasury and the European Commission to "leverage" the firepower of the EFSF to €2 trillion, in conjunction with lending from the European Central Bank.
http://www.youtube.com/watch?v=lqN3amj6AcE&feature=player_embedded#t=7s
Carsten Schneider, finance spokesman for the Social Democrats, demanded that Chancellor Angela Merkel and finance minister Wolfgang Schäuble clarify their "true intentions " before the vote on Thursday. "A new multi-trillion programme is being cooked up in Washington and Brussels, while the wool is being pulled over the eyes of Bundestag and German public. This is unacceptable," he said. Prince Hermann Otto zu Solms-Hohensolms-Lich, the Bundestag's deputy president and finance chief for the Free Democrats (FDP) in the ruling coalition, expressed outrage over the secret plans.
"Unless the German finance minister can give an immediate assurance that there will be no leveraged formula, I will not vote for this law. We might as well dispense with months of negotiations if all this means is that the Bundestag will be circumvented and served cold left-overs," he said. The accusation that German leaders are conspiring with EU officials to emasculate the Bundestag is highly sensitive, going to the core of the raging debate in recent months over EU encroachments on German democracy.
http://www.youtube.com/watch?v=eW0LQsXJRdU
Dr Vosskuhle said that the improvisation of far-reaching policies had become "dangerous", and warned against schemes to circumvent the rule of law with backroom deals. "Germany has a great affinity for the rule of law. People expect the political class to obey the rules." He reminded leaders that the court had set clear boundaries to EU bail-outs in a ruling earlier this month, although it gave the go-ahead for the package of measures agreed so far. "Our judgment makes clear that the Bundestag cannot abdicate its fiscal responsibilities to other actors. And no permanent mechanism may be created that entails taking over the liabilities of other states," he said. When asked whether eurobonds are off limits, Dr Vosskuhle said any ruling by the judges would be "pretty clear".
Ewald Nowotny, Austria's central bank governor, said it would be a grave error for Europe to try to bounce Germany into decision of huge scope and significance without the assent of the people. "It is quite dangerous when a feeling builds up in Germany that the country is being overrun, and specifically, that such an important country is being outvoted in the ECB," he told Der Standard. There is little doubt that Chancellor Merkel can pass the EFSF bill with the help of the Social Democrats and Greens. It is less clear whether she can survive the vote without an absolute majority from her own coalition. Green leader Jurgen Trittin said her government would be "finished" if it has to rely on opposition votes.
Her task has become that much harder after Standard & Poor's hinted Germany itself might loose its AAA rating if the rescue machinery is greatly expanded.
Well thats it now, we're nearly here. Despite pledges from all of the political class (the European Union, George Osborne, Labour, the Conservatives, the Liberal Democrats, David Cameron, Ed Balls, the IMF, the World Bank, the United States) its all crumbling before our eyes. If you recall the various bailouts given to Greece among others over the past year or so, the EU kept telling us beforehand 'Greece wont need a bailout' and da da! it did and the same with the ultimate default. But thats not all, what a bailout essentially is is an emergency loan to a country which is utterly broke.
And as most sane people know, you can't pay off debt with more debt - but this still isn't stopping them. As the trader above and Godfrey Bloom MEP warn above, the next crisis is likely to be a currency crisis - the collapse of the Euro for sure, the collapse of the U.S. Dollar in time. The good news is that in their desperation to save the Euro and the EU project, the federalists will be brought out into the open and will attempt to make final all-out attempt to create the European superstate they so desire. This of course is what happens when you join a monetary union which will never work and which was only introduced as a political method of creating a United States of Europe against the wishes of the people - its also what happens when government is out of control and spends too much (thanks Labour for the 50% increase in public spending and the Tories who supported it along with bailing out broke banks with toxic assets) and when government destroys the currency by printing (fiat currencies which Ron Paul has warned against).
On this forum many agreed with what myself, UKIP, free-marketers, Tory eurosceptics and many others said - we've been proved 100% correct and its still not over. Wait until Italy, Spain, Portugal and France fall next after Greece defaults.
Thoughts on the economic crisis? if you thought 2008 was bad wait until this hits!