German economic council can´t rule out Eurozone break up if states don´t repair budge

[ASusilovic]

Says Germany may face a mild recession if debt crisis isn’t solved.

Sees 2012 GDP at 0.9% in 2012, exports at 3.2%.

Can’t rule out Euro zone break up if states don’t repair budget, suggest Euro zone fund to help finance debt reduction.

ECB risking its credibility in buying bonds from heavily indebted states.

 

[Tsing Tao]

With the amount of bonds purchased already from Greece and Italy, the ECB is in for a world of hurt if those two countries default. Hell, if only Greece defaults, they have a big problem.

The ECB will be forced to print money ala QE Fed style. The only question is how long, or if, Germany will tolerate it.

 

[ASusilovic]

Quote from Tsing Tao:

With the amount of bonds purchased already from Greece and Italy, the ECB is in for a world of hurt if those two countries default. Hell, if only Greece defaults, they have a big problem.

The ECB will be forced to print money ala QE Fed style. The only question is how long, or if, Germany will tolerate it.

Germany is the most stupid player in this drama. They will destroy this union because of their Weimarer Republic "hyperinflation" dogma.

 

[Tsing Tao]

Quote from ASusilovic:

Germany is the most stupid player in this drama. They will destroy this union because of their Weimarer Republic "hyperinflation" dogma.

What is so stupid about being intelligent enough to NOT want to devalue your currency and all the bad things that go along with that?

In my opinion, the stupid ones are the countries like the US, the UK, etc, who DO devalue and destroy the purchasing power of their currencies.

 

[C6H12O6]

Quote from Tsing Tao:

What is so stupid about being intelligent enough to NOT want to devalue your currency and all the bad things that go along with that?

I asked many times this question, perhaps you can answer it:
where was the german Bundesbank and its supposed monetary orthodoxy in the years 2003-2008 when monetary aggregates were growing @10%/year ?

 

[Scataphagos]

Quote from C6H12O6:

I asked many times this question, perhaps you can answer it:
where was the german Bundesbank and its supposed monetary orthodoxy in the years 2003-2008 when monetary aggregates were growing @10%/year ?

10%? Most were 15-20%.... at least one, >25%

I kept wondering, "What the Hell are they thinking? This can't turn out well".

 

[ASusilovic]

Quote from C6H12O6:

I asked many times this question, perhaps you can answer it:
where was the german Bundesbank and its supposed monetary orthodoxy in the years 2003-2008 when monetary aggregates were growing @10%/year ?

And where was the German Bundesbank when Italy and Greece and other offenders joined THE EURO SYSTEM? Cough, cough, cough.

I recall a Dr, Helmut Kohl and Mitterand having some nice bottles of red wine over their "EURO success story".

 

[EMRGLOBAL]

Same with the US.

Possibility of States succeeding in the future if DC does not get their budget under order.

I spoke to a client yesterday in Spain. He said the number is around 22/25% unemployment.

 

[Butterball]

Quote from Tsing Tao:

What is so stupid about being intelligent enough to NOT want to devalue your currency

It was stupid and schizophrenic of the Germans to join a currency union with half a dozen 3rd world countries while being paranoid about currency devaluation.