Europe Scrambles to Save Euro, Markets Surge
- Posted on November 28, 2011 at 12:06pm by
Becket Adams
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The euro could be days away from collapsing, analysts warned Monday at the start of a critically busy money-raising week for eurozone countries. Markets surged anyway on hopes that European leaders, with their backs to the wall, are readying an overdue solution to the crisis.
In the run-up to the next European summit on Dec. 9, a raft of new ideas circulated on how Europe could once and for all cap the financial contagion that began in Greece two years ago and has now spread to bigger economies, notably Italy.
As mentioned earlier on The Blaze, among the ideas floated was a plan for the eurozone’s six “AAA” rated nations to pool their resources via a joint bond to provide assistance to some of the single currency bloc’s most indebted members and a fast-track move to a fiscal union between the 17 countries that Germany wants in return for its money.
Whatever materializes and however many denials–and no one can deny this–that fact remains: the euro project is in grave danger.
Evolution Securities economist Gary Jenkins said the series of government bond auctions this week “may determine the future of the EU.”
Financial Times columnist Wolfgang Munchau wrote Monday that the common currency “has 10 days at most” to avoid collapse.
The latest bout of turmoil to afflict the eurozone came last week after Germany failed to raise all the money it wanted in a bond auction and Italy had to pay through the roof to get investors to part with their cash.
If a busy bond schedule this week meets with an equally-poor reception, then the euro’s countries will be in real danger of being locked out of international markets and facing the devastating prospect of defaulting on their debts.
As governments nervously tap bond markets, Germany looks like it’s getting ready to ask its eurozone partners to back measures for a deeper fiscal union.
German Finance Minister Wolfgang Schaeuble said late Sunday that Germany is pushing the EU parliament to allow the 17 eurozone members to draw up treaties that would grant outside powers the right to reject national budgets in eurozone nations that breach EU regulations. Such a move would allow for stiffer new regulations to be enacted more swiftly.
“At the moment, we have a very low level of trust in the eurozone, that is our problem,” Schaeuble said in an interview with public broadcaster ARD. “We must now achieve what we failed to 10 years ago through a stability union.”
The prospect of a deeper fiscal union, where in effect Berlin will have a greater say on developments in Athens, Rome and Lisbon, has been greeted positively in the markets. But it’s likely to take a long time to come to fruition.
“We do seem to be moving slowly towards more of a fiscal union but at a pace that may result in all the components being put in place after a complete meltdown of the financial system,” Evolution Securities’ Jenkins said.
Many think the ECB is the only institution capable of calming frayed market nerves and German Chancellor Angela Merkel’s continued dismissal of a greater ECB role has frayed market nerves.
And the pressure keeps building for Germany to go along with the ECB plan.
Potentially, the ECB has unlimited financial firepower through its ability to print money. However, Germany finds the idea of monetizing debts unappealing, warning that it lets the more profligate countries off the hook for their bad practices.
The Associated Press contributed to this story.
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Jose Cuervo
Posted on November 28, 2011 at 10:40pm“Well if the Euro collapses then great after all it’s a socialist part of the globe right??”
Report Post »Mikev5
Posted on November 29, 2011 at 5:12pmIf it collapses we will be free again they are the ones pushing agenda 21 on us all the sooner it crashes and burns the better.
http://www.un.org/esa/dsd/agenda21/
Europe has been pushing to make the USA a slave to the EU with agenda 21 get educated on agenda 21 it stinks to high hell.
Report Post »pookieamos
Posted on November 28, 2011 at 6:13pm+Glenn says the countries will lose their soverignty to the central bank if they collapse , the NWO ? People , if you have not prepared with food , guns , ammo , please do so. It might be coming pretty fast to America .A camping stove and propane is also a good idea , we don’t know what will happen in a complete meltdown , don’t forget batteries and water.
Report Post »Gold Coin & Economic News
Posted on November 28, 2011 at 4:57pmI find it amazing that markets surge when the Euro collapse is right around the corner, the Fed is said to have loaned out some $17 trillion, that’s TRILLION, that is unaccounted for, Italy is collapsing, we can’t even come close to a balanced budget and a whole host of other things that are wreaking financial havoc around the world and yet the market just goes up like nothing is happening. What a scam that we have going on here. The stock market is the biggest sham in the world and it will all come crashing down soon. Right now, unfortunately, those in congress are reaping huge benefits, and the occupy goons are sitting in a park in LA somewhere.
The GOVERNMENT is the problem here, NOT the companies that provide goods and services to you and I and the OWS crowd as well:
Report Post »http://www.congressinsiders.com/2011/11/congressional-inside-trader-nancy-pelosi-is-a-liar/
762x51
Posted on November 28, 2011 at 3:38pm“However, Germany finds the idea of monetizing debts unappealing, warning that it lets the more profligate countries off the hook for their bad practices.”
Bad practices, Hilarious! After decades of US financial support, no defense budgets to worry about, no real Naval requirement to keep the sea lanes open as the US Navy took care of that and hundreds of Billions of Dollars in US foreign aid they FINALLY ran out of other peoples money as Margaret Thatcher predicted.
Now the Germans, the primary beneficiaries of US support due to our military presence there, don’t want to support everyone else. Maybe the EuroSocialists are finally getting the message. Too late of course, how poetic.
Report Post »rock-n-roll-rebel
Posted on November 28, 2011 at 4:35pmPrime Minister Thacher did try to warn them a long time ago now they are going to double down, it would be funny if it wasn’t true.
Report Post »southernbelle59
Posted on November 28, 2011 at 2:39pmThey’ve been saying that for months. I wonder if they are going to try to give them another bail out.
Report Post »lukerw
Posted on November 28, 2011 at 2:06pmIf this is True… start placing Sand Bags around your Home!
Report Post »smithclar3nc3
Posted on November 28, 2011 at 2:37pmTruth is the investors in the euro will pull out of it at break neck speed and invest inother economies more than likely the U.S. sense we are the only economy not being artificially supressed by the government like in China.
Report Post »AvengerK
Posted on November 28, 2011 at 2:38pmEssentially what has to take place is Brussels assumes control of member states’ economies. In short…they give up their sovereignty. Germany has to assure bond holders of their investments. This is highly unlikely to take place. Financial institutions are already testing the old plumbing for a return to previous European currencies. The UK has alerted it’s embassies to brace for social unrest and economic turmoil….while Obama goes on another golf trip and campaigns on the tax payer’s dime.
Report Post »AvengerK
Posted on November 28, 2011 at 2:41pmSMITHCLAR…that has been going on for a few weeks now….they tried Swiss banks but they weren‘t sure enough so they’re heading into U.S. Treasury securities in large volumes. Once again..when the world’s in trouble..they seek America for protection. The Chinese are simply too untrustworthy. All we need now is a business centric administration to get business money off the sidelines and get Americans back to work.
Report Post »lukerw
Posted on November 28, 2011 at 9:04pmThe Banking representatives are going to Control the Nations of Europe… replacing Socialism… which replaced Democracy! It is the Soros… Open Society… of the Surfs!
Report Post »AxelPhantom
Posted on November 28, 2011 at 2:00pmOne suggestion to “fix” the problems has been the issuance of a “Eurobond”. If that happens, you know a “Eurotax” is not far behind, wonder how that will go over with a populous that is already taxed up the wazoo?
Report Post »SpankDaMonkey
Posted on November 28, 2011 at 1:38pm.
Are you ready for WWIII?
Cause that‘s what it’s gonna take to fix things. I just Hope our side wins…..
Report Post »netmail
Posted on November 28, 2011 at 2:58pmAgreed…our currency is funding every stupid and corrupt system under the sun and ultimately they (Europe) will be us and we will be them…Totally Bankrupt. Of course, China will not play the ‘Let’s leverage the crap game’ and God help us if they are the last man standing. Sheer the sheep, thin the herd…WWIII…the ultimate distraction towards that end. It starts with finances tho IMO. Every day as I watch the news, I feel like I’m watching a major train wreck in slow motion.
Report Post »762x51
Posted on November 28, 2011 at 3:16pmAgreed.
Report Post »mattsanz
Posted on November 28, 2011 at 1:26pmIt’s not about kicking people when there down, but we are removing the king and queen from the USA for the last time. The second Revolution. http://www.americanstandardplayingcards.com/index.php?option=com_content&view=article&id=90&Itemid=92 The Constitutional powers of Congress and the Rights of the People in the hands of Americans for generations to come. Join the Revolution :)
Report Post »Obama Snake Oil Co
Posted on November 28, 2011 at 1:26pmRewarding bad behaviour with bad behaviour……thats all it is. So the point is screw the countries that are acting responsibly and give Greece another pass? Yeah, Germany, sign on to that turd.
Report Post »762x51
Posted on November 28, 2011 at 3:40pmThe Germans will just wind up trying to polish that turd if they doo-doo.
Report Post »Micmac
Posted on November 28, 2011 at 1:20pmOne nation under Germany. Countries will me like states that get approval from mama. Top down control. Ouch!
NoBama 2012
Report Post »Reboot Washington
Micmac
Posted on November 28, 2011 at 1:21pmbe**
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