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European Tribune - Can the Eurozone National Central Banks create fiat Euros by themselves?
I suspect the same is true of other bailout funds created in other EU states in the last 3 years.

Huh. Germany did it through the treasury.


To provide recapitalisation measures and to assume risk positions, the Federal Ministry of Finance can take out credit totalling up to 70 billion Euros. With the consent of the budget committee of the German Parliament, this credit amount can be extended an additional 10 billion Euros.

In case the Federal Republic of Germany takes out loans for the Fund, its net borrowing and debt level will increase. However, as the Fund can acquire participations in financial sector enterprises and receives fees as consideration for granted guarantees, the negative effects on the public budget are minimized. In addition, the Fund generates administrative costs. These costs are borne by the Federal Republic of Germany.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Dec 1st, 2010 at 04:40:13 PM EST

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