The liquidity tsunami that started in September of 2012 in the Marriner Eccles building and continued with the BOJ’s own epic QEasing expansion three weeks ago, has so far provided the impetus for Europe to kick the can of its inevitable dissolution for a few more months, yet slowly but surely the market is starting to read through the artificial levels implied by Italian and Spanish bonds, driven by recycled ECB funding via bank and repo conduits and of course Japanese carry cash, and rumblings of a return to crisis conditions are back.
And as always happens, once the crisis talk is back, so is discussion of a fiscal union. Sure enough, earlier today Germany’s Angela Merkel once again reminded everyone just what the stakes are in order to achieve a truly stable, and sustainable European union: nothing short of ceding sovereignty to Germany. And with that we are back to square one, because that has always been the trade off – want a unified, fiscally and monetarily, Europe? You can get it: just bow down to Merkel.
From Reuters:
German Chancellor Angela Merkel said on Monday that euro zone members must be prepared to cede control over certain policy domains to European institutions if the bloc is truly to overcome its debt crisis and win back foreign investors.
Speaking at an event hosted by Deutsche Bank in Berlin alongside Polish Prime Minister Donald Tusk, Merkel also defended her approach to the crisis against critics who argue she has put too much emphasis on austerity, saying Europe must find a way to deliver both growth and solid finances.
The comments came two months before European leaders are due to gather in Brussels to discuss moving towards a so-called “fiscal union”.
The punchline:
“We seem to find common solutions when we are staring over the abyss,” Merkel said. “But as soon as the pressure eases, people say they want to go their own way.
“We need to be ready to accept that Europe has the last word in certain areas. Otherwise we won’t be able to continue to build Europe,” she added.
Two conclusions here: Europe will be “staring over the abyss” very soon once again, and where Merkel says “Europe” she means Germany.
This is confirmed by the immediate denial of precisely this, adding “it would be “dangerous” if other countries in Europe felt Germany was imposing its own economic model across the entire bloc.”
Oh, ok then.
So just what is Germany’s vision for “Europe”:
“We don’t always need to give up national practices but we need to be compatible,” Merkel said. “It is chaos right now.”
“We need to be prepared to break with the past in order to leap forward. I’m ready to do this,” she said.
So… just give up national practices sometimes. And yes, Merkel is of course ready to head the asset-stripmined continent. The question is who else in Europe is willing to hand over their liberties to the next iteration of the German Reich?
www.zerohedge.com/ link to original article
(Lucas : comment : the EU and EUROZONE were already implemented with unification in mind, better said a police or authoritatian corporate state. The fiscal and banking union was next but got stuck, ESM came but did not do what it should. Now they want to bring a divided EU/EUROZONE all together as one NATION. The wet dream of all that signed on the dot of building this EU/EUROZONE with intent to become from a Supranational entity a state forced upon people. This after failing first time to get a EU constitution and getting it the second time done behind the backs in a treaty with some exemptions. Now it is time to get it right? Right! or Left! Does it matter. It is just corporate authoritarianism with a German/Vatican flag waving on the side of the new police state NWO that was build slowly with all things in place. The Bank/ Fiscal Union, Parlement/ European Parliament, Government (chairman EU and the EU commission, and Judicial functions : European Court of Justice, Police/ Europol, Military arm/ WEU and other EU Missions on the foreign policy coordination and all other economic preferences for the big corporate multinationals will come all in place being modelled on the FED and US model. Zieg Heil or did I just see someone wave at me. It is obvious what has been waited for is the desperate state of all those people and problem states that now lost their powers due to austerity and debt targeted on them. A trip to Paris will be lovely in the summer. You can enjoy the new view on corporate prisons, from a beautiful double safety glassed and body armored bus with armed protection officers. You may enjoy the beauty of the country side which is fully developed into a GMO total test and grow zones which have the most exotic colors and varieties. A total drone and camera controlled safety net provided for you to stay in your total private hotel with phone and internet listening and tracking devices will help your great stay. GMO and engineered foods will be fully available on your daily fresh haute cuisine dinning. Fly safe back as it as it might be your last flight as there are no guarantees outside EU space. Enjoy.)
Lucas 2012 Infos 