John Ward – Karlsruhe Decides : Zooks Are Go… – 12 September 2012

Only lawyers could deliver such a result: the ESM is legal up to €190bn, and then it isn’t. The Karlsruhe Court has come up with a sort of three months abortion pill: yes, we’re going to get pregnant, but we’re still thinking about whether we want to start a family or not.

One can picture the scene a year from now: “Ach jah, Frankreich, you get the bailout, and it comes to €3.74. Wolfie says you can have it in three tranches, but every Frenchman caught working sur le noir must be slain”.

Thus is Tim Geithner’s desired eurobazooka become a German Zook. The Zook will be the new unit of currency in the Fiskal Union, a bailout mechanism built ready for the coming hyperinflation. There will be seventeen sovereigns to a Zook, but please: don’t ask for credit, as a refusal often offends.

We now have a two-tier sh*t-clearance scheme: one using real money that lends non-returnable money, and one using funny money that buys non-real money. So all that remains now is for Manuelo Barroso to explain how this is merely the forerunner to a federated system in which dour money will sell unreal money in a cash-for-options swap, after which hysterical money is refunded as real money. Mario and his team will be working on the details later.

Let’s hear it for the Zook. link to original article

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