By David Marsh, MarketWatch FRANFURT, Germany (MarketWatch) — as nerves and tempers fray in Berlin and Frankfurt over conditions applied by the German Parliament for new loans to Greece, both the German government and the European Central Bank realize that the big loser from the skirmishing will be overall public trust in the European monetary project .

Former Bundesbank president takes helm at UBS

There was no question that Axel Weber, the outspoken former president of Germany’s Bundesbank and a speaker at The Buttonwood Gathering this October, would land on his feet after leaving his post as central banker to Europe’s largest economy. 

Mr Weber, who was considered the front-runner to replace Jean-Claude Trichet at the helm of the ECB until he abruptly pulled out of the race earlier this year (reportedly without consulting Chancellor Angela Merkel of Germany, to her chagrin), has been nominated as chairman of UBS, Switzerland’s biggest bank. This is a blow to Deutsche Bank, where he was considered to be the top contender to succeed Josef Ackermann, the current chief executive of the bank and another speaker at The Buttonwood Gathering this year. 

With his forceful personality, stellar reputation in finance circles and deep background in regulation in a hyper-regulated era, Mr Weber seems the right man to mend UBS’s tattered reputation.  The bank has seen a series of high-level defections in recent months. Since the financial crisis, it has written down tens of billions of dollars in toxic deals, watched its rich clients withdraw huge sums, and fought (and lost) a battle with America over the bank’s secret offshore accounts.  It is a big job Mr Weber faces. But given Mr Weber’s recent experience grappling with the euro-zone crisis, it would seem big jobs are his specialty.

Europe really needs to back off of Germany’s ass. It makes complete sense to take care of your own economy instead of dipping into other countries’ financial woes. They were forced to keep a balanced budget constitutionally, it’s your own irresponsibility for not keeping one yourselves. Seriously, how can you be mad at them? Just because everyone is over spending and fucking up, dont be mad at them for refraining from your lead of stupidity and refusing to fall along with you. Go ahead Germany, I’m not mad at you whatsoever.

Renten- und Sozialbetrug durch Politiker geht weiter

Es reicht ja nicht, dass die Deutsche Bundeswehr von den Rücklagen der Sozialversicherung aufgebaut wurde, was gekaufte Verfassungsrichter absegneten.

Seit Jahrzehnten werden dem Bürger die höchsten Sozialabgaben unterschlagen. Unterschlagen, weil praktisch zum Ziel erklärt ist, dass er möglichst nie Rente erhält. Das marode Gesundheitssystem in Deutschland passt 1:1 zu dieser Vorgehensweise.

Nur bei Politikern sieht das anders aus. Wer ein paar Jährchen einen der vermutlich korruptesten Berufe ausübt, hat ausgesorgt. Volle Rente lebenslang. Und zusätzlich lukrative Nebenjobs in der Wirtschaft.

Und der deutsche Wahl-Depp meint, er könne bei der Wahl darauf Einfluss nehmen.

“Beteiligung der Bürger an Politik” heißt: Bezahlen für die Verbrechen der Politik.

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Germany Reveals The European Annexation Blueprints


By Tyler Durden

We were wondering how long it would be before Germany, following in the footsteps of such luminaries as Hank Paulson and Tim Geithner, would formally announce to the world that with it now openly calling the shots in Europe, it would be its way or the mutual assured destruction way. We just got our answer courtesy of the just released August Outlook from the Bundesbank in which the German national bank lays out the framework of the upcoming European anschluss play by play, as Germany prepares to roll out the Fourth Reich welcome mat without ever spilling a drop of blood.

After all: why injure the soon to be millions of debt slaves? To wit from the report: “Unless and until a fundamental change of regime occurs “involving an extensive surrender of national fiscal sovereignty”, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.” Translation: “we will gladly help everyone out… in exchange for a little of that vastly overrated fiscal sovereignty… Did we say a little? We meant all of it…”

Here are the salient points from the just released Bundesbank manifesto of Mutual Assured Anschluss or else:

“Overall, there is a risk that the originally agreed institutional framework of the monetary union will increasingly become eroded.”

As noted, there is but one proposed solution:

“Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.”

You want your stupid brilliant monetary union? Fine.

You want us to pay for it? Sure.

The cost? Your “extensive” national independence.

Full passage:

The recent resolutions transfer sizeable additional risks to the countries providing assistance and their taxpayers, and go a long way towards communitising risks caused by unsound public finances and misguided macroeconomic policies in individual euro-area countries. This weakens the foundations of monetary union, which is based on the principles of national fiscal responsibility and the disciplining effect of capital markets, without noticeably increasing the influence and control over individual national fiscal policies as a quid pro quo. *Overall, there is a risk that the originally agreed institutional framework of the monetary union will increasingly become eroded*. While fiscal policy will continue to be determined by democratically elected parliaments at national level, the resultant risks and burdens will increasingly be borne by the Community in general and the financially sound countries in particular, without this being offset by any concrete powers to intervene in the sovereignty of national fiscal policies. No comprehensive change in the European treaties is currently envisaged that would democratically empower a central entity to
exert some control over national budgetary policies. This means there is a danger that the euro-area countries’ propensity to incur debt may increase even further, and the euro area’s single monetary policy will be increasingly susceptible to the temptation to adopt an accommodating stance.

Unless and “until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty”, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.

h/t Geoffrey Batt
Counterfeit bills and coins on the rise

The Bundesbank registered around 60,000 counterfeit Euro bills in 2010, a 14% increase over 2009.  The most frequently falsified bills are the EUR 20 and EUR 50, along with the EUR 2 coin. 

(FYI did you know that the number one counterfeiter of US dollar bills is North Korea?)

A Euro Scam That Unfolded at a Snail's Pace By JACK EWING

Recyclers in China were supposed to have melted down the old coins, which had been taken out of circulation, broken and sold as scrap. Instead, the band and its apparent accomplices painstakingly reassembled the coins, then brought them back and fooled the Bundesbank, the German central bank, into redeeming them for real money.

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The eurosystem is a lender of last resort – for solvent but illiquid banks. It must not be a lender of last resort for sovereigns because this would violate Article 123 of the EU treaty [prohibiting monetary financing – or central bank funding of governments]. I cannot see how you can ensure the stability of a monetary union by violating its legal provisions.

I think the prohibition of monetary financing is very important in ensuring the credibility and independence of the central bank, which allow us to deliver on our primary objective of price stability. This is a very fundamental issue. If we now overstep that mandate, we call into question our own independence….

It’s really an absurd debate in which we are telling institutions: don’t care about the law.


FT interview transcript: Jens Weidmann -

(Via Business Insider)


Germany is staunchly against printing.  But the ECB must in order to avert catastrophe.  I think the market will begin to impose its will on the Bundesbank in the near future.  

Will the Bundesbank blink, or will Germany just leave the Euro?  It really comes down to this question.  

Implementing a fiscal union is fraught with risks as it would require referendums and approvals of all parliaments, yadda yadda yadda.  It would take a number of weeks, if not months, to get this approved.  The market may not have the patience as economic data points to a worsening recession.  Finally, it’s important to note that as the recession gets worse, public sentiment for the Euro will continue to erode.  They should have done a fiscal union when times were good, not now.    

Viel zu makroprudenziell

So eine Wirtschaftsredaktion bekommt ja viele Einladungen – zu (mehr oder weniger bedeutsamen) Pressekonferenzen, Firmenbesichtigungen, Messerundgängen, Interviews, Betriebsjubiläen, Tagungen, Empfängen … Und schon von Berufs wegen sind wir bemüht, komplexe ökonomische Fragestellungen so gut wie möglich selbst zu verstehen, bevor wir sie medial aufbereiten. Doch bei diesem Thema müssen wir schon im Vorfeld kapitulieren. Der Präsident der Hauptverwaltung in Bayern der Deutschen Bundesbank in München „bittet zu einem Banken- und Unternehmensabend“. Gastrednerin ist die Vizepräsidentin der Deutschen Bundesbank Prof. Dr. Claudia M. Buch (interessant). Ihr Vortrag trägt den Titel „Alter Wein in neuen Schläuchen?“ (so weit, so gut) „Die Ziele makroprudenzieller Regulierung“ (oh je). Das müssen wir googlen. Die Bundesbank hilft uns weiter: „Makroprudenzielle Politik bedeutet, dass auf das gesamte Finanzsystem und seine Stabilität (daher makro) mit den Instrumenten der Regulierung und der Aufsicht (das meint prudenziell) eingewirkt werden soll. Über ihre Instrumente grenzt sich die makroprudenzielle Politik beispielweise von der Finanz- und von der Geldpolitik ab, obgleich auch diese Bereiche auf die Finanzstabilität spürbar einwirken können …“ Ich fürchte, wir sind an diesem Tag hier in Regensburg leider unabkömmlich. (ti/Foto: P. Seitz)


Bundesbank’s Dombret Says `Reform Fatigue’ One of Biggest Risks

Aug. 20 (Bloomberg) — Bundesbank board member Andreas Dombret talks about European Central Bank stress tests and risks to financial stability in the euro area. He spoke yesterday in Salzburg,… Book flights, hotels, vacations at low prices online.

The post Bundesbank’s Dombret Says `Reform Fatigue’ One of Biggest Risks appeared first on

Nell’asta primaria di collocamento dei titoli di stato tedeschi, i famosi bund, che erano rimasti invenduti per il 35% del totale, sono stati comprati dalla Bundesbank, la banca centrale tedesca.

Si tratta di un vero e proprio scandalo.

L’intervento improprio e irregolare della Bundesbank ha consentito alla Germania di mantenere basso il rendimento dei bund decennali (1,98%), perchè ha impedito che l’asta procedesse al rialzo dell’interesse per rendere più appetibili i titoli agli investitori internazionali e alle banche private.

An ultra loose monetary policy is a therapy with risks and side effects. If cannot become a permanent therapy, especially as the positive effects are reduced over time, while the risks increase
—  Jens Weidmann, European Central Bank Governing Council member and Head of Germany’s Bundesbank