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The Ayatollah Buggeri

Bundesbank Tells Draghi To Eff Off

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Torygraph.

Executive summary: a report written six months ago from the Bundesbank to the German constitutional court has been leaked. In it, the Bundesbank argues that Germany's participation in ECB bailouts is illegal and asks the court to veto such participation. A ruling is due on 12 June. This quote caught my eye:

“If the court rules against OMT, it means the end of the euro. The stakes are so high that I don’t see how they could just pull the trigger,” said Mats Persson from Open Europe.

There are several more rentaquotes in the article, and the gist of all of them is to agree with the above. Some believe that the German consitutional court would not dare to issue the nuclear judgment, regardless of the legalities.

So, yet more brinksmanship or the start of the endgame?

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Torygraph.

Executive summary: a report written six months ago from the Bundesbank to the German constitutional court has been leaked. In it, the Bundesbank argues that Germany's participation in ECB bailouts is illegal and asks the court to veto such participation. A ruling is due on 12 June. This quote caught my eye:

There are several more rentaquotes in the article, and the gist of all of them is to agree with the above. Some believe that the German consitutional court would not dare to issue the nuclear judgment, regardless of the legalities.

So, yet more brinksmanship or the start of the endgame?

Don't worry.. EU is extremely good at finding legal loopholes / creative interpretations of the rules, else the Euro would now be in the history book by now.

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Torygraph.

Executive summary: a report written six months ago from the Bundesbank to the German constitutional court has been leaked. In it, the Bundesbank argues that Germany's participation in ECB bailouts is illegal and asks the court to veto such participation. A ruling is due on 12 June. This quote caught my eye:

There are several more rentaquotes in the article, and the gist of all of them is to agree with the above. Some believe that the German consitutional court would not dare to issue the nuclear judgment, regardless of the legalities.

So, yet more brinksmanship or the start of the endgame?

The obvious point is why should any of that matter in the slightest. Either it violates the german constitution or it does not. The effect on the existence of the euro should be irrelevant.

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The obvious point is why should any of that matter in the slightest. Either it violates the german constitution or it does not. The effect on the existence of the euro should be irrelevant.

This is why:

A German federal election will be held on 22 September 2013

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This is why:

A German federal election will be held on 22 September 2013

Oh I agree that is why it does, but it shouldn't.

Either something in a judges best judgement breaks the law or it does not.

Think of it this way, should a judge take into account the effects of prison time on a bank robbers family, on whether they are guilty of the crime of robbing of a bank?

The answer of course is such considerations are irrelevant.

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Very interesting article.

OMT (Outright Market Tampering) is just the latest attempt to stop history from happening . . . until the German elections are over.

But what happens after that?

Regardless of legislation, there must be limits to the extent the ECB can buy every junk bond in sight?

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The obvious point is why should any of that matter in the slightest. Either it violates the german constitution or it does not. The effect on the existence of the euro should be irrelevant.

Fiat justitia, ruat cœlum

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Don't worry.. EU is extremely good at finding legal loopholes / creative interpretations of the rules, else the Euro would now be in the history book by now.

Are you just keep asking until you get the right answer?

Although if the Germans want to leave the Euro I'm sure the court will find it illegal.

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Don't worry.. EU is extremely good at finding legal loopholes / creative interpretations of the rules, else the Euro would now be in the history book by now.

The EU "court" isn't a real court of law in the sense that we would recognise. The "judges" are essentially political placemen and the decisions are highly skewed in favour or more Europe regardless of what the actual law may say.

AEP's article is about the German constitutional court which I assume is independent and impartial - hence the real possibility of an adverse decision.

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... if the Germans want to leave the Euro I'm sure the court will find it illegal.

The Germans don't want to leave the Euro, that would be unthinkable.

What the Germans want is for everybody else to leave the Euro, that way the likes of Merkel who have so much political capital invested in the Euro can say "we did the best we could but the lazy southerners just weren't committed to the project".

I think it's likely that most Eurozone leaders know that the project has failed and breakup is inevitable but no individual leader or country want's to be the first to jump ship, hence the endless series of can kicking that has just served to make the crisis worse. Once one goes I reckon that another 4 or 5 will follow pretty quickly.

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Oh I agree that is why it does, but it shouldn't.

Either something in a judges best judgement breaks the law or it does not.

Think of it this way, should a judge take into account the effects of prison time on a bank robbers family, on whether they are guilty of the crime of robbing of a bank?

The answer of course is such considerations are irrelevant.

Too cynical. If anyone is to insist on the rule of law, it's Germany - notorious surrender of justice to state authority 80 years ago.

The German judges have been consistent, made it clear that a referendum will be necessary for a full transfer union. That's been on the back boiler for two years, and still no sign of a referendum campaign.

I don't suppose the next decision by their judges will be crucial - the most interesting thing will be whether the judges remain consistent. My guess is Yes. Angela will sigh and carry on.

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The Germans don't want to leave the Euro, that would be unthinkable.

What the Germans want is for everybody else to leave the Euro, that way the likes of Merkel who have so much political capital invested in the Euro can say "we did the best we could but the lazy southerners just weren't committed to the project".

I think it's likely that most Eurozone leaders know that the project has failed and breakup is inevitable but no individual leader or country want's to be the first to jump ship, hence the endless series of can kicking that has just served to make the crisis worse. Once one goes I reckon that another 4 or 5 will follow pretty quickly.

I think you are dead right there.

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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