Germany's finance minister has launched a fierce attack on the US Federal Reserve, saying its decision to pump more money into the economy would create extra problems for the rest of the world."I don't think that the Americans are going to solve their problems with this, and I believe that it is going to create extra problems for the world," Wolfgang Schaeuble said on ARD public television late Thursday."We are going to discuss this in a critical fashion with our American friends both in bilateral talks and of course at the G20 summit in South Korea next week," he said.
Back in December we pointed out the patently obvious: in the absence of an external rebalancing mechanism, i.e., a free-floating currency, the only option for the bulk of the periphery to regain competitiveness was through ongoing wage collapse and persistent localized depression.
Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster". "The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt," he said.
One of the more vocal members of the ECB's governing council and executive board, 47-year old German Joerg Asmussen, surprisingly announced this morning that he is stepping down for "purely private family reasons." Concurrently, the German who has been a less tenuous version of his far more outspoken and hawkish compatriot Jens Weidmann, announced that he would accept a job as Deputy Labour Ministry job in the new German
It is possible if not likely we have to suffer through at least 11 more Groundhog days as Greece sets March 8 deadline for investors in bond swap.
Greece has set a March 8 deadline for investors to participate in its unprecedented bond swap aimed at sharply reducing its debt burden, according to a document outlining the offer.
Merkel Hardens Position
The EU summit is a day away and pre-summit bickering is so intense that it will be difficult if not impossible to get any major agreements.
Two days ago, in a speech in German parliament, Bloomberg reported Merkel Hardens Resistance to Euro-Area Debt Sharing