Socio-Economics History Blog

Socio-Economics History Blog

Germany Isolated as Latin Bloc Calls The Shots!

by mosesman
It’s a question of when?
  • This coming global collapse will start in the PIIGS, spread to the rest of Europe, UK, Japan …. and finally America. The Illuminist banksters will QE to infinity to bail all their banks out but the global monetary system will collapse. It is all within their plan. The Illuminist banksters are using this crisis to centralize more power into their hands, for a greater political and fiscal union. They are selling the propaganda that the Illuminist ECB and FedRes are the solution to the world’s problems (when they are the cause).
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    Germany isolated as Latin Bloc calls the shots! 
    By , http://www.telegraph.co.uk/ 
    The eurozone’s ‘Latin Bloc’ is in full revolt. The trio of French, Italian, and Spanish leaders – backed by world powers – are to push for a radical shift in Europe’s economic strategy at crucial summit on Wednesday.
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    The package of measures includes an EMU-wide guarantee of bank deposits aimed at halting a slow bank run across southern Europe, as well as demands for full activation of the European Central Bank as a lender of last resort.
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    They will propose eurobonds to finance an infrastructure blitz, a sort of Marshall Plan to revive confidence even if long-term benefits will take years to feed through.
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    While the moves are couched in diplomatic language, the clear aim of French premier François Hollande, Italian premier Mario Monti, and Spanish premier Mariano Rajoy is to wrest control of the EU’s governing machinery from Germany.
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    Mr Monti said over the weekend that Mr Hollande’s “entry into the game” had changed Europe’s political dynamics. He has an ally “on the same wave-length”.
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    This is clear already in a spat over the next chief of the Eurogroup, the powerful club of EMU finance ministers. Mr Hollande is balking at the coronation of German finance minister Wolfgang Schaeuble. “It is a litmus test. Hollande is flexing his muscles, showing that he is willing block the man seen as Europe’s symbol of austerity,” said Mats Persson from Open Europe.
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    “The real battle is over the ECB. It is the only body that can act swiftly enough to underwrite the bond markets. But the crisis may have to get far worse before the Germans yield. It will take immediate contagion, far beyond Greece.”
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    Matt King, credit stategist at Citigroup, said Italian banks lost €160bn in deposits last year and Spanish banks lost €100bn, based on the ECB’s Target2 payments data. The pattern seen in Greece, Ireland, and Portugal — where deposits have together fallen 52pc — is that a haemorrhage is hard to halt once it begins. “Capital flight, is a self-reinforcing process. It will stop only once there is decisive policy intervention. The longer investors have to wait, the more decisive it will need to be,” he said
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    read more!

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