Germany Is Preparing To Kick Countries Out Of Eurozone

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Instead Of Relenting To Demands To Let ECB Print

Zero Hedge
Friday, November 18, 2011

It’s official – Germany has become just like China (or, rather, has always been like it): the more it is pushed to do something (let ECB print), the more it will do the opposite. Half a year ago we discussed that the weakest point of the European bailout language was its reliance on Collective Action Clauses which imply that any resolution which does not have 100% backing of all bondholders would potentially push a country into default. In essence, this took control out of the hands of the Eurozone head, Germany, and put it to the bondholders. Well, according to a preliminary draft released by the Telegraph and FT, as part of the new bailout ‘indenture’ contained in the ESM, “under a section headed “The establishment of a procedure for an orderly default as part of the ESM”, Berlin makes clear that countries which are deemed to be insolvent – rather than just suffering a temporary loss of access to the financial markets – would be allowed, in effect, to declare bankruptcy and default on their bonds: If [a debt sustainability review] is negative, the affected member state would instead receive loans for a limited time only, during which the procedure for an orderly default would be prepared. In order to make sovereign defaults possible where they are unavoidable, the threat of instability in the financial system resulting from such a default must be able to be credibly excluded. A plan to maintain the stability of the financial system in the event of an orderly default needs to be developed in close co-operation with European banking regulators. This would determine which banks would be restructured and/or recapitalised, which will necessitate the drawing up of Europe-wide rules on bank restructuring.” And as we discussed previously, the voluntary language will likely be taken out from the final draft, effectively giving Germany the unilateral ability to kick countries out. Which explains why the market is about to plunge: according to just released information from DPA, “the German Foreign Ministry on Friday confirmed that Germany was considering the possibility of more eurozone “orderly defaults” beyond that of Greece, as suggested by a paper leaked by the British press.” In essence, what this means is that instead of relenting on the ECB issue, which as every investment bank has said would be the end of the world unless massive printing is permitted, Germany would rather kick countries out of the Eurozone instead of entering a hyperinflationary collapse. Perhaps it is now time for the banks to start toning down their language on the imminent destruction that would ensue if the ECB does not print, as this is apparently not happening…

From the FT:

Our friends and rivals over at The Daily Telegraph have gotten their hands on an interesting document from the German government detailing its proposals for EU treaty change, and have helpfully posted it online (with an English translation by the Open Europe think thank).

 

Although the Telegraph focuses on its implications for Britain, there is a significant amount of detail on how Berlin would like to change eurozone economic governance, including yet another stab at enshrining bondholder “haircuts” in the EU treaties.

 

For those who haven’t followed the debate closely, there is now a closed-door fight going on about whether Greece really will be the only country that sees its bondholders pushed into losses – as the eurozone’s leaders have repeatedly insisted in their summit conclusions – or whether the bloc’s new €500bn rescue fund, which could come into place as early as next year, should allow for organised defaults.

Why is this a market moving event?

When broader default powers were mooted for the ESM at this time last year in a much-discussed agreement between France’s Nicolas Sarkozy and Germany’s Angela Merkel in the French seaside town of Deauville, bond markets swooned, sending Ireland and then Portugal into bail-outs. Days later, during a G20 meeting in Seoul, Merkel was forced to back down. But the issue clearly hasn’t died.

In other words, while everyone believes Germany has been boxed into a corner and has no choice but to relent on global demands to let the ECB do whatever France demands, Germany was making other plans all along. Such as having the opion to kick France out of the Eurozone if and when it so chooses.

Because after all, money talks. And in Europe, only Germany has the money.

 


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42 Responses to “Germany Is Preparing To Kick Countries Out Of Eurozone”

  1. SMART MOVE

    Huggles Reply:
    November 18th, 2011 at 4:17 pm

    It turns out that the best engineers in the world are Italians and not the Germans.

    Twitchbar Reply:
    November 18th, 2011 at 4:38 pm

    The Germans are a very Proud and Noble Race
    They are White Europeans-Israelites
    Descended from Abraham Issac and Jacob
    WW11 was the Second half of WW1
    Hitler arse holed the Zioinst Beast out of Germany
    And released the Country from the Death Grip of Hyper Inflation
    Caused by the Privately Owned Reichbank Printing too much Money
    The Beast did not like this
    And boycotted Germany
    A Great Manufacturing Nation
    You could find NOTHING on the Shelves ‘Made in Germany’
    This left Germany with not many alternatives
    After attacking Poland to take back what was rightfully hers
    Forfeited under the conditions of THE TREATY OF VERSSAILLES
    England Declared War on Germany
    But not on Russia
    Who had also attacked Poland from the East
    Who they called their Glorious Bottom Munching Allie
    Who were Funded by the Rothschilds
    Which gave the Bolshevik Jews (85%)
    Free Reign
    To conduct a REAL HALOCAUST
    The rest is History
    But what happend
    And what we are told happend
    Are two completely Different thing’s
    By Design
    ‘BY DECEPTION’

  2. HA HA HA

    YOU GOTTA LOVE GLOBALISM.

  3. It appears Germany is about to be blamed for everything that has happened in the world-the haters of Germans about to make Germany the big bad WOLF who destroyed the world.

    Is Germany about to be scapegoated? What is really going on here? Have the Germans been set up to be the fall guys as the world economy implodes or does it really deserve the blame that seems to be being aimed solely at it?

    Aren`t the zionist banksters the ones really behind this global mess? Everyone knows how much they love and admire the Germans and would never try to shift the blame to them(sure you betcha).

    I get a feeling Germany had better be careful, they could end up suffering again more than anyone else.

    beigeblends Reply:
    November 18th, 2011 at 10:37 am

    Just like in the video of Nigel ranting yesterday,it seems there is an anti-German undercurrent developing, a hint at this point but becoming more of a statement each day, that ‘it`s the Germans` fault’. While I was watching Nigel rant and introduce this theme, I thought ‘has this man ever even remotely suggested that this global financial meltdown might have been engineered by Zionist banksters, not the Germans?”

    There well may be something to the old saying that cream rises to the top in the case of Germany. It seems remarkable after all that Germany has been through over the past 5 or 6 decades that they are now ‘supposedly’ an economic powerhouse. I`m just not sure if that is true. They reportedly are doing quite well, better than most everyone else, but that doesn`t mean they have any real global power.

    Could it be that Germans have again shown their innate ability as a nation to thrive and succeed? And now they have to again be slapped down by extremely jealous and envious enemies? Made to be hated by the world, again?

    beigeblends Reply:
    November 18th, 2011 at 10:46 am

    Interestingly, I`ve read that Angela Merkel has a PHD in physics. Somehow the best and brightest seem to have risen even in German government and politics.

    truthistruth Reply:
    November 18th, 2011 at 4:57 pm

    the fourth reich is about to rise? watch for Germany to militarize and take an increasingly stronger role in the world financial and political crises….

    castlerubric Reply:
    November 18th, 2011 at 10:43 am

    I’d not thought about the possibility of Germany being a ‘scape goat’ but that’s an interesting take.

    Personally I don’t think it’ll come to that – but it is an interesting idea.

    I lived in Germany for 3 years and have a very high opinion of Germans — especially my hinterweldler friends from the Rhineland-Pflaz ; )

    dhsn Reply:
    November 18th, 2011 at 12:19 pm

    Schwarzwald #1, baden #2.

    wildcat Reply:
    November 18th, 2011 at 11:51 am

    Germany is the last country in Europe where the population still hold tremendous amounts of savings. That is through strict financial regulation and support of their manufacturing industries.

    The rest of Europe are deep in debt, and the eurocrats see that Germany’s savings and gold reserves could be used to leverage more international money to keep the system going . At the same time Germany wants something in return, in particular stronger financial regulation on the financial markets in London and those Mediterranean countries that are being circled by the financial sharks.

    As France and Germany want to introduce a financial transfer tax on transactions, you can imagine the City are scared of someone else gaining more financial influence through their efforts.

    It isn’t any different from having a gambling drinker in your family, with that person having gambled away their last savings, and now they are desperate to get a loan from somebody to keep the roof over their head. Everyone they know has become fed up of their behavior and refuses to give them any money unless they change their habit.

  4. The intentional mess. All of the byzantine machiavellian scheming.
    Their solution is worse than the problem.

    castlerubric Reply:
    November 18th, 2011 at 10:44 am

    What do you mean?
    What solution do you think is being prepared for the Euro economic issues?

    litosweed Reply:
    November 18th, 2011 at 1:40 pm

    If you dont know you better ask someone !

    Tom Reply:
    November 18th, 2011 at 2:37 pm

    No solution! The European Union is in its final format. They may add country’s, but the situation there is exactly as the NWO has intended. Now for the long-term stalling agenda. They must stall until all country’s in the world have been “merged’ like Western Europe was. The North American Union still hasn’t happened yet. South America still has separate soveriegn nations. The E.U. got formed first, so they have wait for the NWO to destroy the rest of the soveriegn nations until they have what they want. No solution. It’s the way they want it. No crisis!

    wiggins Reply:
    November 18th, 2011 at 3:42 pm

    Agreed, they are playing the Long Game soon to be finalised.

  5. This is a modern version of the fable “The grasshopper and the ant.” German has conducted their financial affairs correctly, while the rest of Europe fiddled while their economy burned. Instead of trying to balance their budget, they continued to spend in their socialist endeavor to give everything to their lazy citizens.
    Good for Germany.
    BTW, does this sound similar to another country that is fiddling while running up a 15 trillion dollar debt?
    Even when the US is faced with imminent financial collapse, it continues to act as if nothing is wrong.
    HOW STUPID CAN OUR POLITICIANS BE?
    -It’s a rhetorical question. We all KNOW the answer.

    Matrix5 Reply:
    November 18th, 2011 at 12:09 pm

    wont be any financial collapse
    if they need the feds just print more trillions
    they are used to this method of scamming the rest of the world

    Twitchbar Reply:
    November 18th, 2011 at 4:50 pm

    The situation has been Engineered
    How many Countries in the European Union had the Books Cooked by the World Bank IMF to get them in?
    …..when they should never have been ‘in’
    It was Designed to Fail
    Create a problem
    Now lets wait for the Solution(Fuck I Hate That Word)
    Anyway it won’t be good
    Whatever it is
    One thing being for sure
    To advance the Agenda of the NWO SCUM FUCK BEAST

  6. ConcernedSenior says:

    November 18, 2011 at 11:06 am

    This is a modern version of the fable “The grasshopper and the ant.” German has conducted their financial affairs correctly, while the rest of Europe fiddled while their economy burned. Instead of trying to balance their budget, they continued to spend in their socialist endeavor to give everything to their lazy citizens.

    That is Correct!!!!! You are so right!!!!! The German government will not eat sh….they know what’s up. My home country!!! Ich liebe Deutschland!
    Thanks for your comment, ConcernedS

    castlerubric Reply:
    November 18th, 2011 at 12:42 pm

    Ich auch – fur drei jahra Ice wohne auf Deutschland — es tut mir leid, meinen Deutsch ist nicht so gut aber meinen deutsche nachbar und colleaguen ist gleich einen bruder oder schwestern

    immer

    danke schon, Deutschland

    PS: the United States should absolutely end our occupation of that country –

    ConcernedSenior Reply:
    November 18th, 2011 at 3:44 pm

    Sie haben Recht. Ihr Deutsch ist nicht sehr gut, aber ich verstehe es. Ferner stimme ich dass alle amerikanischen Truppen überein, die Deutschland verlassen sollte. Eigentlich sollten alle amerikanischen Truppen jedes Land, und Rückkehr zu den Vereinigten Staaten verlassen, unsere Ränder zu schützen.

    Twitchbar Reply:
    November 18th, 2011 at 4:59 pm

    Hitler was Not a Jew-He was an ISRAELITE White European

  7. Global economic collapse and immenent hydra flare explsion. Famine and disease coming along with radiaton poisoning.

    TRILOGY OF TERROR. Just like I said right beofre THANKSGIVING. SPOT ON GEORGIO I AM.

    Do not read this Heather and Toddler

    castlerubric Reply:
    November 18th, 2011 at 12:39 pm

    good Lord — what the heck are you talking about?

    a hydra explosion????

    wiggins Reply:
    November 18th, 2011 at 2:40 pm

    Yes…many headed

  8. I love watching the EU descend into bankterism chaos. Hold on Germany, you are about to lose it all to the banksters.

    Elektracite Reply:
    November 18th, 2011 at 12:07 pm

    Make that banksterism, the NWO religion for the money-based human life form

  9. this takes the concept of political correctness to a new level. everyone agrees all the time, don’t we? I’ve been ousted from plenty of organizations because “I wouldn’t go along to get along”. I know there are others like me out there. The majority of us don’t belong to a control groups.

    wiggins Reply:
    November 18th, 2011 at 2:42 pm

    Depends how old you are to fall for the PC schtick.

    conniemerie Reply:
    November 18th, 2011 at 3:01 pm

    old enough to understand that celente is pushing for entrepreneurs to start more businesses. We’re being egged on to invest what little we have left so they can steal that, too! It’s just “build it and they will come” nonsense in a different package.

    Twitchbar Reply:
    November 18th, 2011 at 5:03 pm

    Political Correctness is a Bolshevik Jew Terminology

  10. I have this great video I want to share with you guys, but keeps going into moderation. It’s like a self guide through WW3. I’ll try again.

  11. Just goes to show that the whole thing is a lie. Just as the FED lied to America for 100 years, so now also the NWO has to lie about the E.U. The CREATION is the scam. So whatever headline you ever read, is just distraction away from the fact that the COUNTRY’S are lined up the way they want them, with the money being manipulated as the NWO sees fit. Germany is the HEAD of the E.U.? That makes more sense than not if you realize that the 4th Reich is one major part of the NWO. Nobody is going to get kicked out. It the E.U. will now just coast until the NWO has performed more “regime changes” around the world. Some country’s were easy to kill, some are not yet killed. More work to do……..

    conniemerie Reply:
    November 18th, 2011 at 3:04 pm

    yes. this headline is meant for those that are easily led. it’s about as real as that “cold war” thing we were supposedly in with Russia. Funny how all the threats and posturings never amounted to anything and now we’re all friends. Saints be praised! All the leaders are in bed with each other and we’re the ones being screwed!

    wiggins Reply:
    November 18th, 2011 at 3:45 pm

    O’bomber in bed with Fraue Merkel….mmmm!

  12. Firstly Zero Hedge is the work of a Jewish Journalist who covers for the Jewish Bankers.

    Zero hedge: European bailout..Collective Action Clauses which imply that any resolution which does not have 100% backing of all bondholders would potentially push a country into default.. this took control out of the hands of the Eurozone head, Germany, and put it to the bondholders.

    Between_the_lines: The bondholders for every EU country are a parasitic cartel of Jewish International Bankers and the EU has always been under their control. Every EU country(including Germany) has been under the Jewish International Bankers control since day one of the EU. He who pays the piper calls the tune, “..the borrower is slave to the lender.” – Proverbs 22:7

    Each country as it enters the EU must renounce its sovereign right to issue its own currency, BUT IT STILL ISSUES ITS OWN INTEREST-BEARING BONDS. There are no German, Greek or Italian CURRENCIES anymore, but there are still German, Greek and Italian BONDS.

    Each country no longer issues its own currency, it only issues interest-bearing bonds to borrow the parasite’s currency. This guarantees in infected countries that the national debt grow exponentially and will always exceed the money supply. Eventually all infected countries must pass the point where the interest on the national debt exceeds the GDP. After that point in such a country, if the citizens gave 100% of their income to the financial parasite, and spent nothing on themselves, they could not even hold down the interest on the national debt, and they are now indentured slaves forever.

    Merkel doesn’t do anything unless the parasite tells her to. Merkel told reporters recently:
    “Germany does not want politicians to tell the European Central Bank..what to do”
    h**p://www.makeyoustandout.info/34.html
    “[recent ECB president] Jean-Claude Trichet [addressing the European Parliament] insisted to European parliamentarians yesterday that the European Central Bank remains fully independent of national governments”
    h**p://www.independent.co.uk/n…..45951.html

    If Germany appears to be supporting dropping some marginal(financially weaker) nations from the EU, it is because the banker parasite told her too, because the banker parasite wants to write those financially weaker nations off as bad debt, so it can keep sucking the blood of the financially healthier nations.

    between_the_lines Reply:
    November 18th, 2011 at 3:00 pm

    The Ponzi scheme the Jewish Internatinal Banker Cartel is running an the EU is an exact copy the the Ponzi scheme the same Cartel is running in the US.

    h**p://video.google.com/videoplay?docid=-515319560256183936 –
    “How International Bankers Gained Control of America”
    Full-length movie. Classic in-depth analysis of the financial colonization of America. From Moneymasters produced and narrated by Bill Still.

  13. Disinfo, misinfo, out right lies,,,, who knows.

    I don’t believe that there is any plan to dice up Europe. This may just be propaganda or disinfo put out there for some nefarious purpose.

    What do the globalist/nwo scum really want,,,, control… Control of as much as they can get. They will use any method, lie, strategy, or whatever to get it. They want either a weak populace (unable to fight) or a totally braindead populace (unwilling to fight). They want to be the masters of all that they can. This is accomplished best by putting everyone under one iron umbrella, this leaves no chance for anyone to ever change it.

    These countries have their puppets (heads of state) and they have their masters (mentioned in the previous paragraph).

    Any info that looks to be different is hard for me to believe. When they totally f up the economy they will want to give reasons that leave everyone blaming someone or something that is in a sense intangible (no accountability, no arrests, no particular person or organization to be blamed)

    The final goal is clear to them. How they will get it is clear to them (order out of chaos, if necessary), but planned to be confusing for most people (the ones getting ripped off).

    They should all be kings of the hill,,, a giant pile of paper money,,,, and it should be lit up. Marshmallows anyone?

  14. Slight of hand always works for the powerful . . . especially when the mark is scared to call the hand of the magician to task . . .

    If what is good for the goose is good for the gander . . . what does this mean ? . . .

    “Insolvency” is a semantical difference in situation from “suffering a temporary loss of access to the financial markets” . . . Bankers claim “Time is Money” . . . legal matters are crafted with “time is of the essence” . . . but “draconian” is the benchmark of “legal corruption” . . .

    “Give me control of a nation’s money and I care not who makes it’s laws” — Mayer Amsched Rothchild, a prominent European banker in the eighteenth century . . .

    I say “Jubilee” for everyone now !

    And with greatest of certainty . . . do not let it happen again . . .

    I speak to both sides of this coin.

  15. What a great idea ! Germany kicks everyone out and they’ll be the only one with the Euro ! They could’ve did that years ago !

  16. To bad we couldn’t do something similar here. Like get rid of dc and California. If the mexicans want California so bad then they can have it. On one condition,,,they keep all the weirdos that live there. And if the politicians want to have total control of something, then there, they have it, the nation of DC.

    We could put the new capitol of the US in some state like Montana or North Dakota.

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