LIR – Germany Puts The Boot In.

01/30/2012

LIR – Germany Puts The Boot In.

Baltic Dry Index. 726 -27

LIR Gold Target by 2019: $30,000. Revised due to QE programs

Germany's demands have sparked fury in Greece, with education minister Anna Diamantopoulou calling them "the product of a sick imagination" and finance minister Evangelos Venizelos claiming on Sunday that the country, with €350bn debts, was capable of sticking to its promises.

"Our partners know that European unification is founded on the institutional equality of member states and respect for national identity," he said before heading to a Brussels summit already threatened by strikes from three Belgian transport unions.

The Telegraph January 30 2012

It’s an ugly European Union assembling for yet another summit this morning in Brussels. Germany put the boot into Greece at the weekend, threatening to impose financial rule by EU Kommissar. Greek ministers were less than polite at the German diktat. With no end in sight to the Greek sovereign debt “voluntary” restructuring talks, the Greek Prime Minister says that the end is near, talking of bankruptcy and leaving the snake bit currency union. In an unexpected and irrelevant move likely to sink the French banks, an ever more desperate President Sarkozy announced that if re-elected in May he will impose a 0.1% financial transaction tax. The FT reports this morning that 72% of Irish voters want a referendum on the new “Merkozy Treaty” which is the main point of today’s summit. The UK government has already opted out. Does Europe have a death wish or what?

Below the latest news from Europe, as Europe’s “leaders” head for another punch up in Brussels. France and Germany have ganged up on tiny Greece. France, Italy and the UK have ganged up against Germany. In Brussels itself, the three largest transport unions have gone on strike against German imposed austerity. Stay long physical precious metals.

"When it becomes serious, you have to lie"

Jean-Claude Juncker. Luxembourg Prime Minister and president of the Euro Group of Finance Ministers. Confessed liar.

JANUARY 30, 2012
Germany Warns Greece on Aid Funds
Finance Minister Says Euro Zone May Refuse Athens a Fresh Bailout If Nation Can't Enact Reforms
BERLIN—Germany's finance minister issued an unusually blunt warning that the euro zone might refuse to grant Greece a fresh bailout, pushing Athens into default unless it persuades Europe it can overhaul its state and economy.

"Greece needs to decide," Wolfgang Schäuble said in an interview with The Wall Street Journal, when asked whether the euro zone would grant or withhold the second bailout package for the country since 2010, expected to be in excess of €130 billion ($172 billion).

Europe is "prepared to support Greece" with the new loan package, Mr. Schäuble said, but he warned: "Unless Greece implements the necessary decisions and doesn't just announce them…there's no amount of money that can solve the problem."

The remarks came as German officials last week floated the radical idea of appointing a European "budget commissioner" with veto powers over Greece's spending, partially suspending Greece's national sovereignty over its budget, in return for aid.

"Perhaps we and our partners must look into ways to assist Greece in this difficult task in an even closer manner," Mr. Schäuble said, alluding to the German oversight proposal.

Germany's proposal met with skepticism from other European policy makers and got an angry response from Athens. In a statement on Sunday, Greek Finance Minister Evangelos Venizelos said "bigger nations" shouldn't force Greece to confront a "dilemma of 'economic assistance or national dignity.' "
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We’re on the brink, warns Greece ahead of summit
Greece faces “the spectre of bankruptcy and all the dire consequences that entails”, the Greek prime minister warned last night.
By James Kirkup 9:50PM GMT 29 Jan 2012
Lucas Papademos said that unless the country’s international backers agreed to a new bail-out, Greece would be unable to pay off its loans and be forced out of the eurozone.

EU leaders will meet in Brussels tonight amid growing concern that Greece will fail to implement the austerity measures its international backers are demanding as a condition of the latest package of financial support. Without that bail-out, Greece will be unable to repay €15 billion of loans due in March.

Amid doubts about Greek willingness to cut spending and raise taxes, Germany has suggested that a European commissioner should take effective control of Greek fiscal policy to ensure the country accepts austerity. Evangelos Venizelos, the Greek finance minister, rejected that plan, saying it would undermine Greece’s “national identity and dignity”.

Philipp Rösler, the German economy minister, insisted that some external control over Greek policies had to be considered. “If the Greeks fail to do this themselves, the leadership and monitoring must come in a stronger way from outside, for example via the EU,” he said.

Iain Duncan Smith, the Work and Pensions Secretary, suggested that the German plan was a threat to European democracy.
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