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Something very much like that, yes. All European states already have nationalised banks which will buy their bonds, because, ahem, the bank's owners want that... And yesterday Draghi announced that the ECB will accept anything as collateral, even if it's toilet paper. Merkozy can't prevent that. What was this summit about?

Am I missing something?

by Katrin on Fri Dec 9th, 2011 at 09:52:36 AM EST
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According to one of the many articles I've read in the press during the last 48 hours, Draghi is demanding the so called Budget Union to start accepting toilet paper from governments. I'm getting the impression this Summit has been forced by the ECB itself.

You might find me At The Edge Of Time.
by Luis de Sousa (luis[dot]a[dot]de[dot]sousa[at]gmail[dot]com) on Fri Dec 9th, 2011 at 01:44:24 PM EST
[ Parent ]
I finally found an article that states this black and white:


EUObserver
Leigh Philips, 09-12-2011
EU leaders embrace 'fiscal compact' demanded by central bank

BRUSSELS - European Union leaders have endorsed a series of rules tightening budget surveillance and institutionalising limits on public spending - the 'fiscal compact' that the European Central Bank (ECB) has demanded before it can more aggressively purchase Italian and Spanish debt.

"We agreed today on a new 'fiscal compact' and on significantly stronger coordination of economic policies in areas of common interest," reads a statement by the premiers and presidents of countries that use the euro and contained in a wider draft concluding document from all 27 EU leaders and seen by EUobserver.

Last week, speaking before the European Parliament, ECB chief Mario Draghi had hinted that the central bank could begin to intervene more robustly in the market if a "fiscal compact" was reached at the EU summit.

Everyone's pointing their guns to Germany and Merkozy, but there are much more powerful hawks out there.

You might find me At The Edge Of Time.

by Luis de Sousa (luis[dot]a[dot]de[dot]sousa[at]gmail[dot]com) on Fri Dec 9th, 2011 at 02:43:35 PM EST
[ Parent ]
That's a coup d'etat.

Can the Vervassungschütz please start protecting the constitution from these usurpers? Or are they too busy protecting neo-nazis and infiltrating anti-austerity protesters?

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Dec 9th, 2011 at 08:19:22 PM EST
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That's a coup d'etat.

It is seldom perceived as such if done by bankers - it would seem. I would hope this is an exception. The Bundestag and/or courts may end up doing the right thing for the wrong reason by vetoing this.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Dec 10th, 2011 at 12:14:59 AM EST
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See Michael Hudson's Europe's Transition From Social Democracy to Oligarchy (December 6).

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Mon Dec 12th, 2011 at 09:15:31 AM EST
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