By Bill Wilson
There has been no clearer articulation of the coming tyranny to be
imposed on the once-sovereign nations of Europe — and what may be in
store for the debt-addled U.S. should it fail to restore order to its
fiscal house — than a recent piece from the UK Telegraph’s Ambrose
Evans-Pritchard, “America and China must crush Germany into submission”.
In it the columnist advocates that the U.S. and China essentially
force Germany to bail out financial institutions that bet poorly on
Greek, Italian, and other troubled sovereign debts, writing, “it would
not surprise me if U.S. President Barack Obama and China's Hu Jintao
start to intervene very soon, in unison and with massive diplomatic
“One can imagine joint telephone calls to Chancellor Angela Merkel
more or less ordering her country to face up to the implications of the
monetary union that Germany itself created and ran (badly),” he writes.
He accused the Germans of “lacking in deep understanding of what it
has got itself into.”
At issue is just who will be bailing out the banks that lent the
money to Greece and others in the first place. The consolidated debts
of Portugal, Ireland, Italy, Greece, and Spain, the so-called PIIGS,
total more than €3 trillion. Evans-Pritchard wants that somebody to be
the European Central Bank.
In the way, Germany has vetoed the use of the ECB to leverage the
€440 billion European Financial Stability Facility (EFSF) upwards to
perhaps €1.4 trillion — since such a decision would violate a recent German constitutional court ruling declaring that
“the Bundestag, as the legislature, is also prohibited from
establishing permanent mechanisms under the law of international
agreements which result in an assumption of liability for other states’
voluntary decisions, especially if they have consequences whose impact
is difficult to calculate.”
Moreover, such a move would violate Article 123 of the Lisbon Treaty that brought the Eurozone into being, which expressly prohibits the ECB from printing money to buy sovereign debts.
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