QE/Eurobonds?... they are not happening!!

The E.U Leaders ?..."for all the summitry and posturing, their credibility is shot to ribbons." The EU is unmanageable in its present form and there is no possibility whatever for a single elected government to be introduced before the project implodes, if at all. The new French President Francois Hollande has revived talk of eurobonds, which could reduce troubled countries borrowing costs. But Germany and others whose borrowing costs could increase are opposed. Austria uses the euro, and its foreign minister, Maria Fekter, told Oe1 radio recently. No matter how hard the socialist medias
push for QE/Eurobonds, they are not happening:

" Austrias finance minister is rejecting the idea of introducing jointly issued eurobonds any time soon and says that running up new debts to finance growth is nonsense. At the same time, The head of Germanys central bank says there is no quick fix for Europes problems, calling appeals for more support from the European Central Bank and plans for investment in infrastructure a distraction from the hard work of reform. In an interview with Le Monde newspaper Friday, Bundesbank chief Jens Weidmann added that it was an illusion to think allowing eurozone countries to borrow money jointly would solve the crisis. He said countries that use the euro would need to combine their budgets before turning to eurobonds. He also rejected project bonds to invest in infrastructure, saying governments shouldnt increase their debt. Weidmann implied he wouldnt support another round of low-rate loans to banks from the ECB, calling them morphine that eases the pain but doesnt cure the sickness. that eurobonds are only attractive for those ailing countries that pay very high interest rates, who...go to the neighbor who has good creditworthiness and say, Dear neighbor, please pay my debts. Fekter added: I dont want to pay the neighbors credits.Amid European differences about how to stimulate growth, she also insisted growth from new debts is nonsense. If Brussels does decide to issue Eurobonds, who in their right mind would buy them, apart from central banks? It would be the ultimate QE / money printing operation in history that can only end up wrecking the German economy.

We are living in very dangerous times because any form of economic break-down will create a power vacuum from which many may try to take advantage. While the most visible symptom, the departure of a small country from the currency union [Euro] and even their exit from the customs union (EC) is NOT the fundamental problem, rather it appears the number of people who are aware of the obsolescence and highly toxic nature of the current orthodox economic model, with its implicit requirement for the indefinite/infinite expansion of economic activity in order to support the indefinite/infinite expansion of debt this model demands, and its naive/simplistic belief in "goodness" of "free markets" and the benign efficiency of the "invisible hand" are geometrically increasing. While these ideals may have applied in the simpler times of Adam Smith and David Ricardo, these clearly are non operational in the "cappo" [godfather] capitalism, aided and abetted by transnational corporatism. The only question is "do we have to go down with RMS Titanic, or are there enough lifeboats available?" To mangle the metaphor, just as the last thing the Titanic needed was more ice, the last thing the European economies need is more debt.
Date: 05.28.2012

Mircea Halaciuga, Esq. 004.0724.58.1078 PROXEMIS - Managementul Riscurilor