Eurokleptocrats create a stupid banking union to socialize the debts of banks of PIGS!

BANKING UNION

By Olli REHN

Today, I reported to the ECOFIN Ministers on the economic situation while wait for our autumn forecasts on 5 November. I also reported on the experiences from the G7 and the G20 as well as IMF meetings in Washington that took place towards the end of last week. Europe's economies, as you know are at a turning point.

 

We have a subdued modest recovery this year, and we will be moving onto a stronger footing next year. We can also expect improving employment in the course of next year, 2014. The economic recovery is, in terms of its composition, more broad-based than previously, so that the external component or net exports and domestic demand are both being strengthened but, at the same time, there is significant divergence amongst the Member States, including still unacceptably high levels of unemployment in many EU member States.

 

On the SME Initiative, first I want to recall why this initiative was put on the table in the first place. SMEs are the backbone of the European economy. Yet SMEs, in parts of Europe, especially in southern Europe, still face excessively tight credit conditions, which is holding back investment that is necessary for a sustained economic recovery in growth and employment.

 

A key benefit of the Banking Union we are currently constructing will be to reduce this financial fragmentation. But before this systemic solution is in place, for which my colleague Mr Barnier has worked very hard and successfully, we need to take measures to get credit flowing quickly. In June, the Commission, together with the European Investment Bank, put on the table a convincing initiative to achieve this objective. Then, the European Council, Heads of State and Government called for an agreement on the proposed instruments without delay with a view to having this in place as soon as possible, latest by the beginning of next year.

 

I welcome the fact that Ministers today in the ECOFIN have endorsed the SME Initiative, even if the Commission would have ideally liked to see a greater level of ambition. I now hope that the European Council will give its final approval to the initiative next week, in the Summit, so that we can start delivering on our commitments to European SMEs as soon as possible to see a reduction of borrowing costs and stronger investment for the sake of sustainable growth and job creation.

 

My second point concerns productive investment, especially the issue of how public investments which support sustainable growth can be accommodated within our fiscal rules. Following repeated requests from the European Council, the Commission has explored this issue very carefully indeed. I set out our conclusions in a letter to Finance Ministers on 3 July. I don't want to go into detail on that, but just remind you of the key conditions, they apply to Member States that had economic growth clearly well below its potential.

 

Second, the 3% rule of fiscal deficit must not be breached and the public debt rule of the six pack legislation must be respected. And third, this needs to be focused on co-financed projects with European Structural and Cohesion policy, Communication and the Connecting Europe Facility. These must have a positive, direct and verifiable long-term budgetary effect. These are the keys conditions of the investment clause. I was listening very carefully today to the discussion among the Ministers, and it seems to be that the Ministers are somewhat divided, however, since the Commission has acted on the basis of a clear and unequivocal mandate, given by the European Council, I can confirm that we will proceed on the basis I have just set out and, as I wrote in my letter to the Finance Ministers.

 

In other words, the Commission will take into account public investment plans for productive investment related to co-financing of European projects, under these specific conditions and within the clear limits set by the Stability and Growth Pact, when we assess of Member States’ draft budget plans for 2014.

 

This is of concrete importance, not least today, because today is the last day of submission of draft budgetary plans by Member States, especially of the euro area Member States to the Commission. Today, I clarified to those Ministers who will use this investment clause, so that they are working on the basis of precise and relevant information and they know that they can, in case they fulfil the conditions and they want to move forward on this, they can then apply this investment clause in their budget for 2014.

 

The Greek presidency of EU must be annulled, because the kleptocratic alliance of Pasok mafia and Nea Democratia mafia cannot be trusted.  The freakish government of Greece stole my computer, my files, and my life!  Basil Venitis, venitis@gmail.com, http://themostsearched.blogspot.com

BANKING UNION IS A STUPID SOCIALISTIC SCHEME TO FORCE THE CAPITAL TO GO TO THE FOUR PIGS

Eurokleptocrats create a stupid banking union to socialize the debts of banks of PIGS. The next step will be the introduction of stupid eurobonds. By the time France is hit by the crisis, Merkel will no longer be able to refuse this stupid demand. This development will ultimately lead to a stupid system that has little in common with a market economy. ECB and ESM will then direct the flow of capital into countries where it no longer wants to go. This will result in growth losses throughout Europe, and money will continue to be thrown out the window of PIGS. Furthermore, it will create considerable discord because it makes closely allied countries into creditors and debtors.

 

MERKEL AND BARROSO, BONNIE AND CLYDE OF EUROPE!

Merkel and Barroso are the Bonnie and Clyde of Europe, robbing banks!  Breaking with previous EU practice that depositors' savings are sacrosanct, EU now robs depositors.  That infuriates depositors in eurozone's weaker economies and investors fearing a precedent that could reignite market turmoil.  Robbing depositors is definitely a no-no. If you can do this once, you can do it again.  Eurozone has deteriorated to a robber of depositors.

BAILIN DIRECTIVE ROBS DEPOSITORS IN COLD BLOOD!

 

NEW EU LAW CYPRUSES YOUR BANK ACCOUNTS!

 

EU has a new law to grab the excess of a hundred-thousand-euro deposits if a bank fails! Barroso ordered the directive on bank safety which would incorporate the issue of investor liability in member states' legislation.  Your bank account will be cyprused!  Dijsselbloem says the rescue program agreed for Cyprus - the first to impose a levy on bank deposits - would serve as a model for future crises, a trademark template of eurozone. 

 

Olli Ren says:  The directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind-down.  But there is a very clear hierarchy, at first the shareholders, then the unprotected investments and deposits. ECB's talk on Thursday about both standard and non-standard measures is very important because the ECB may have a role in making the situation easier.

 

Economic confidence is often the most fragile of things. Whether anything happens to robbing depositors, Fourth Reich has fired a shot across every European depositor. Given that interest rates already pay a derisory return, thanks to Quantitative Easing, ordinary savers may prefer keeping notes under the mattress to risking a bank deposit robbery. A Eurokleptocratic mafia has left contagion risk stalking the Eurozone.

 

Large investors who found Cyprus an attractive climate for business have already set their eyes on other offshore centers. The future prosperity of Europe is increasingly being held hostage by a mafia of Eurokletocrats rooted in denial. Their tragically deluded solution is more Europe, despite a democratic deficit, vast swathes of unemployment, and a lost generation of young jobless citizens.

 

ESM IS A PONZI SCHEME!

 

An ECB bazooka cannot restore competitiveness to PIGS, but would only encourage profligacy, kleptocracy, and metastasis of the cancer of socialism. European Stability Mechanism (ESM) is a joke. ESM’s finances depend on the very same countries that it is supposed to bail out. This isn’t stability, but a Ponzi scheme!

Stephan Götzl, head of a Bavarian banking association, compared the European Commission’s plan to grant itself the final say on winding up troubled banks to the type of law that allowed the Nazis to seize power!  Götzl says: We in Germany have had a bad experience with enabling acts.

The Single Resolution Mechanism would give the commission ultimate authority over the eurozone’s ten thousand banks, with responsibility to pull the plug on a shaky lender and the authority to overrule its home state.

Merkel says: In my view, this proposal gives the commission powers it does not possess according to current EU treaties.

Schäuble warns Barroso to respect the limits of the law or risk major turbulence.  Barnier hoodwinks Fourth Reich cannot afford to wait for treaty change, which is typically an arduous process that can take years. Barroso wants the resolution regime, commanding three hundred staff, to begin from January 2015.

 

Fourth Reich’s economic catastrophe is unfolding so slowly that it has come to seem like business as usual.  The stupid financial transaction tax (FTT) is a euthanasia pill for financial markets.  Since eleven Eurozone countries adopted this stupid tax, all financial transactions of these countries will move to London and New York.  Socialists also managed to convince ECB to bring out the bazooka, in other words, undertake massive purchases of government bonds to resolve the crisis.