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Opinion: This isn't Europe's `Hamilton' moment -     Sony Kapoor
Put in the context of the time, the recovery fund looks even worse. The initiative can be seen as the German establishment's attempt to make up for the sins of its Constitutional Court, which threw a Molotov cocktail into the EU's legal and economic order in early May by challenging the actions of the European Central Bank and the Court of Justice of the European Union.

However the German court's decision finally plays out, its immediate impact is to put a de facto political constraint on the size and asymmetry of the ECB's quantitative easing programs, thereby limiting the ability of the most effective institution in the eurozone to respond to a crisis with appropriate size and timeliness. Italy and Spain would have been better off with an unconstrained ECB and no recovery fund.

by Bernard (bernard) on Sat May 23rd, 2020 at 10:35:59 AM EST
the Broadway Miranda report
"breaks taboos" or change the game the way the U.S. Revolutionary War hero Alexander Hamilton did when he federalized the debts of the various U.S. states [?] in 1790.
Debts owed to and by the US fed "treasury" (of Spanish milled dollars and British sterling) to individual merchants d/b/a private bankers: Those were the "founding fathers", who also defaulted on payments to "continental soldiers". Several decades and financial panics (and "bailouts") after Hamilton died, the US Congress established surety binding states' legislatures' ahh public works to the "full faith and credit" of federal tax collections.

And not for the last time, I'm sure:
An Economic Interpretation of the United States Consitution, tl;dr 366 pp

pp xiv-xv, Introduction. The account of pyramid scheming reveals only more grim, systematic intrigues culminating in a timely fire, extinguishing records.

by Cat on Sat May 23rd, 2020 at 12:19:24 PM EST
[ Parent ]
I am not convinced the ECB will be in the slightest bit constrained. A simple statement by the Bundesbank that any action i takes in support of the ECB is proportionate should do the trick. Failure, on the part of the Bundesbank to take on its responsibility in this regard will trigger infringement proceedings by the Commission.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sat May 23rd, 2020 at 12:20:42 PM EST
[ Parent ]


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