[kitchencabinetforum] THERE IS NO WAY KARLSRUHE WOULD ALLOW EUROBONDS!

Insiders from the German Constitutional Court in Karlsruhe have told us there is no way they would allow eurobonds, no matter what. So, you better cool it guys, wasting your time pushing the stupid idea of eurobonds, unless of course you think Germans are stupid! The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade PIGS again. http://venitism.blogspot.com

There is no way any prudent investor will throw a euro in the Cradle of Kleptocracy, which is infested with marilizardism, the October-18 Mafia, charge stacking, and the cancer of socialism. ECB spent 25 billion euros on government debt last week, to try to halt the spread of Graecokleptocrat cancer. The latest measures will only buy some time whereas common bond issuance could solve the currency area's intractable debt crisis by allowing all its members to borrow at affordable rates at the expense of 50 billion euros to Germany. PIGS will just shift their extra interest cost to Germany.

Graecokleptocrats love the Greek debt crisis, because it takes the attention of Greeks away from the myriad scandals of the Greek government, such as the Siemens scandal, the huge kickbacks for purchasing defect military equipment, defect trains who do not fit the rails, churning the retirement funds of poor workers to generate commissions and kickbacks, airplanes that cannot keep balance, submarines that bend, swaps of prime state land with questionable monastery land, and so it goes.

Eurobonds have been fiercely opposed by Germany, which is fearful such a step would push up German borrowing costs and reduce incentives for PIGS to reform their economies. Moreover, eurobonds violate the Maastricht Treaty, which stipulates that no country can be held liable for another country in Fourth Reich (EU). Eurobonds would even elevate liability to the level of a principle and force Germany to vouch for the debts of other countries whose fiscal behavior they cannot control. Germans would not tolerate the tax increases and reductions in transfer payments that this would necessitate. http://venitism.blogspot.com

Banks cannot participate voluntarily in illegal acts, such as fiduciary imprudency. Bank directors are committed to bank's welfare, and not the public interest. If bankers waive outstanding debts at the expense of the bank, this is a breach of trust and punishable by law. All those bankers, that IIF claims plan to participate in rollovers, might go to jail for violating the fiduciary duty of prudency! Venizelos of October-18 Mafia pressures the banks to participate, but he really opens a Pandora's box.

Eurobonds would not be as safe as German government bonds. And since they would stimulate even heavier borrowing, they would have to yield higher rates. In the wake of the current bailout measures, the German government burdens taxpayers with risks worth one trillion euros. Likewise, over the last year, risk premiums for German government bonds have doubled. There simply isn't any more room for maneuver.

The Fourth Reich bailout of the Cradle of Kleptocracy cannot succeed, because the October-18 Mafia continues corruption, Kangaroo Justice, marilizardism, Marilizard Libel, Marilizard Spaghetti, and Marilizard Towers. October-18 Mafia is the most disgusting predator of internet on Earth! Civil society was shocked by the brutality and stupidity of October-18 fiasco, initiated by the Ministry of Foreign Affairs of the government of Greece. That's why October-18 Mafia is the new name of the government of Greece! http://venitism.blogspot.com

Fuehrer Merkozy knows that only stupid investors would squander their money in a country addicted to kleptocracy, socialism, charge stacking, and marilizardism. However, a deepening of the debt crisis over the past weeks, with big member states like Italy, Spain and even France coming under pressure, has convinced Napoleon Sarko to seduce Merkel to the idea of eurobonds. Sarko of course will waste his time for nothing!

Both German Finance Minister Wolfgang Schaeuble and Economy Minister Philipp Roesler declare they are against eurobonds. Merkel, whose popularity has sunk to its lowest level in five years, would face a revolt within her coalition and Germany's broader economic policy establishment if she agreed to eurobonds. Her coalition partners, the Free Democrats (FDP) and the Bavarian Christian Social Union (CSU), are seen as dead-set against the idea.

The German Constitutional Court in Karlsruhe held its first hearing on July 5, 2011 in a case against interventions such as the bailout packages to PIGS. A ruling in the case is expected within three months. A group of German euroskeptic eggheads led by Joachim Starbatty filed the case last year. The group argues that creating rescue funds violates the European Union's no-bailout clause, which says neither the EU nor member states should take on governments' liabilities.

Finance Minister Wolfgang Schaeuble says you can go ahead, if you do it on a voluntary basis. That may be true as long as he uses his own money. It's not Schaeuble's money to give! Schaeuble is using taxpayers' money, so he has to ask them whether he can be so generous with their money. That is something Schaeuble should consider - after all, first and foremost, his main obligation is to the German taxpayer. Karlsruhe will probably set clear conditions for any new package. The bailout packages for the peripheral countries, such as Greece, contradict the spirit of the Maastricht treaty.

Karlsruhe won't decide on anything that would stop the bailout mechanism, because the court would not risk bringing down the European monetary union. But Karlsruhe knows the bailout for the Cradle of Kleptocracy is taxpayers' hard-earned money blown out with the wind, because the October-18 Mafia continues corruption, squander, marilizardism, incivility, stupidity, charge stacking, and junketing. http://venitism.blogspot.com

If Karlsruhe were to say that everything that is being done now is unconstitutional, Greece would have to leave the currency union, and there would be a debt rescheduling. There's no escaping that. What Germans are doing now isn't solving any problems. Continuing to give Greece money so it can pay its creditors, only means pushing Greece further into the debt trap. It's a bailout for the banks, but without saving the European currency system.