President Barack Obama Message Board

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Politics : President Barack Obama

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To: RetiredNow who wrote (103321)	10/21/2011 2:39:37 PM
From: RetiredNow	Read Replies (1) of 149317

Oh Look, Germany Won't Do What We Did Pay attention now ladies and gentlemen.... Germany, the ECB itself and the European Commission all argued that the move would violate an EU treaty prohibition on monetary financing of governments. "The path is closed for using the ECB to ease liquidity problems," German Chancellor Angela Merkel told conservative lawmakers in Berlin, participants at the private meeting said. In other words, unlike in the United States Germany will not permit deficit financing (which just shifts the deficiency in private funding from those private banks to the people via the government) to take place. We've done $3.3 trillion of it thus far in the US and it is continuing, as I've been tabulating (and pulled out into a separate post this morning.) Merkel now says that's not going to happen in Europe on a European-wide basis. This is expected, as otherwise the German people would be effectively taxed to bail out French banks! The question is going to be what happens to German banks; they're definitely in trouble here on this account, and there's no simple solution. The correct solution is to tell them to either raise private capital or be taken into receivership and dissolved. That won't go over well with the banksters, however, so I don't expect that as the answer. Stay tuned - this is going to get interesting.

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