The global race to debase is heating up.
As Draghi implied over the weekend that the ECB is preparing to buy 3-year gov’t bonds to stem the Spanish debt crisis, Angela Merkel informed critics that ‘bailouts are here to stay‘.
We couldn’t agree more. The only thing yet to be decided (by the German Constitutional Court Sep 12th) is whether Germany assists in the coming bailouts, or if The Fed bails out the entire Western world single-handedly.
German Chancellor Angela Merkel told her domestic critics that bailouts are here to stay, even as her finance minister warned against placing too much faith in theEuropean Central Bank’s ability to stop the crisis.
Merkel made a foray away from crisis fighting today as she traveled to a traditional political gathering in a packed beer tent in southern Germany to confront anti-bailout critics in her government coalition. Countries such as Greece “deserve our solidarity” as long as they meet commitments for overhauling their economies, she said
“We need Europe, but we need a strong Europe,” Merkel told members of her Bavarian Christian Social Union sister party in the town of Abensberg, northeast of Munich. “We can’t take up so much debt that tomorrow we won’t have anything left and we’ll be at the mercy of the financial markets.”…