So here we are. Having exhausted every other option the ECB really only have full QE left, and Germany along with various other northern European states don't want it to happen.
http://www.telegraph.co.uk/finance/c...rlin-Wall.html
Quote:
The governors of all northern and central EMU states - except Finland and Belgium - lean towards the Bundesbank view, foolishly in my view but that is irrelevant. The North-South split is out in the open, and it reflects the raw conflict of interest between the two halves.
The North is competitive. The South is 20pc overvalued, caught in a debt-deflation vice. Data from the IMF show that Germany’s net foreign credit position (NIIP) has risen from 34pc to 48pc of GDP since 2009, Holland's from 17pc to 46pc. The net debtors are sinking into deeper trouble, France from -9pc to -17pc, Italy from -27pc to -30pc and Spain from -94pc to -98pc. Claims that Spain is safely out of the woods ignore this festering problem.
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France demanded EMU as a condition of supporting German reunification. Seems to have bitten them in the backside as Germany are obsessed with inflation while France and others want it to erode their debt.
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Also this is what happens when you give up control of your currency. Without control of currency a government loses much of its sovereignty.
http://www.irishtimes.com/news/irela...lout-1.1989869
Humiliating and if the reports I've read are accurate the whole Ireland emergency funding and bailout is also actually illegal under the treaties. Of course the treaties are irrelevant if they threaten the EU dream of ever-closer union.