Klaus Regling, head of the European Financial Stability Facility (EFSF), warned that the eurozone must reinforce its fire walls to avoid more market volatility. "More money would reassure markets. Wrongly or rightly the fact is that big numbers in the shop window create calm," he said over the weekend. Mario Monti, the Italian prime minister, told a conference that the rise in Spain's borrowing costs was a warning that "it doesn't take much to recreate risks of contagion". Last night, officials claimed Angela Merkel was prepared to yield to the pressure and agree to combine the firepower of the €440bn (£368bn) EFSF and its permanent replacement, the €500bn European Stability Mechanism (ESM). However, the German Chancellor is desperate not to anger her electorate by giving more support to the eurozone, especially after her coalition partners struggled in state elections yesterday. Eurozone finance ministers are due to meet in Copenhagan on Friday and Saturday to agree to combine the bail-out funds – or significantly increase their capabilities.....Perhaps Mr Regling is too clever for me, I see now, the bailouts will not cost German tax payers a "penny...Euros, now that's another story....I say: These debts -- across the Eurozone and the world -- are toobig to ever be repaid.The only solution to this mess is for nations to simply refuse to pay sovereign debts, and to move on like nothing happened.
Access Investments-Building Awareness - European Union-ROMANIA
Monday, March 26, 2012
These debts -- across the Eurozone and the world -- are too big to ever be repaid.
Klaus Regling, head of the European Financial Stability Facility (EFSF), warned that the eurozone must reinforce its fire walls to avoid more market volatility. "More money would reassure markets. Wrongly or rightly the fact is that big numbers in the shop window create calm," he said over the weekend. Mario Monti, the Italian prime minister, told a conference that the rise in Spain's borrowing costs was a warning that "it doesn't take much to recreate risks of contagion". Last night, officials claimed Angela Merkel was prepared to yield to the pressure and agree to combine the firepower of the €440bn (£368bn) EFSF and its permanent replacement, the €500bn European Stability Mechanism (ESM). However, the German Chancellor is desperate not to anger her electorate by giving more support to the eurozone, especially after her coalition partners struggled in state elections yesterday. Eurozone finance ministers are due to meet in Copenhagan on Friday and Saturday to agree to combine the bail-out funds – or significantly increase their capabilities.....Perhaps Mr Regling is too clever for me, I see now, the bailouts will not cost German tax payers a "penny...Euros, now that's another story....I say: These debts -- across the Eurozone and the world -- are toobig to ever be repaid.The only solution to this mess is for nations to simply refuse to pay sovereign debts, and to move on like nothing happened.
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Call me old fashioned, but there are a couple of common threads over the last year or so that simply will not help the state of the EZ, EU being:
1. Everyone is saying what should be done (usually about some area out of their own jurisdiction) without any real actions being taken other than to postpone situations.
2. The EZ / EU / ECB Executives appear to be consistently confident for no apparent reason.
We are waiting for an event that suddenly forces activity as there is no country willing to be the first to call the situation for what it is and take action to bring down the house of cards. God forbid they would be called bad Europeans.
So things just roll along getting worse. Where are the leaders that will take the chaos and deal with it. All there seem to be are committees of grey thinkers. It is being run by bad Europeans
Barack Obama has nominated Dartmouth College president Jim Yong Kim to be head of the World Bank, in a surprise move revealed Friday.
Kim, a US national who was born in the South Korean capital, Seoul, and raised in Iowa, is a physician by training and a prominent figure in the global health world.
Kim became Dartmouth's president in July 2009 and is a former director of the department of HIV/Aids at the World Health Organization. The job more usually goes to someone with wider economic and political experience.
Flanked by two other once-rumoured candidates, secretary of state Hillary Clinton and Treasury secretary Geithner, Obama praised Kim's work on HIV/Aids and his experience of working in countries around the world.
"Jim has truly global experience," that makes him "ideally suited" to lead the World Bank, said Obama. "I do not think that the World Bank could have a better nominee."
US officials have been facing a backlash over the World Bank nomination, which has traditionally gone to an American citizen. Larry Summers, the former Treasury secretary and one of Obama's top economic advisers, had been seen as a frontrunner.
Blanchflower said Kim was "extremely smart and dynamic. The only issue might be that he is not an economist and after all this is a bank", he said. But Blanchflower said that given his expertise in other areas and the backing he is likely to receiove from Europe, south Asia and the US, his nomination looked fairly secure.
Simon Johnson, a professor at MIT Sloan School of Management and a former IMF chief economist, said it was a very smart appointment. "If you go to the World Bank headquarters in Washington, there is a very moving statute depicting someone afflicted by river blindness. That's a disease that the World Bank has been working to eradicate. I think it's time to make a real push on public health, which is also part of the bank's mandate."
Johnson said he was far less concerned about Kim's lack of economic qualifications.
Another Triumph For the Eurozone
Eurozone finance ministers are to combine the bail-out funds this week. The Eurobond is born. Its forerunner, the EFSF is soon to become the ESM.
A dramatic fall is eurozone sovereign borrowing costs can be expected. Coupled with an FT tax that will slash the contributions of eurozone nations to the EU at a stroke, growth in the eurozone is assured, as the Anglo-Saxon economies remain mired in debt and austerity.
Salvation for the British economy lies in becoming a member of the Eurobond area
11.02 Barack Obama's attempts to keep an American at the top of the World Bank is running into interference. Not China has added its voice to those from emerging markets demanding change.
He put forward health expert Dr Jim Yong Kim on Friday as a candidate on a shortlist that includes Nigerian Finance Minister Ngozi Okonjo-Iweala and Jose Antonio Ocampo, a former Colombian finance minister.
Foreign ministry spokesman Hong Lei said on Monday:
The head of the World Bank and other international financial institutions should be selected based on the principles of fairness, openness and transparency. We should also heed the voice of developing countries so as to ensure the voice and representation of developing countries in the World Bank and other international financial institutions.
Spain's prime minister, Mariano Rajoy, faces the toughest week of his three months in office as he is forced to announce up to €40bn (£33.45bn) in spending cuts and taxes in a budget on 30 March, the day after a general strike.
As Rajoy's conservative People's party looked set for victory in key regional elections in southern Andalucia on Sunday, other European leaders and the markets were signalling Spain as now being the biggest single threat to the stability of the eurozone.
A win in Andalucia would give Rajoy unprecedented control over troublesome regional governments whose inability to reduce deficits has helped to put Spain centre-stage in the eurozone crisis. Asturias, a much smaller northern region, was also voting.
Rajoy was recently forced to backtrack by fellow EU leaders who refused to accept the deficit target of 5.8% of GDP Spain set unilaterally for this year. They told him to cut to 5.3%.
The EU economic affairs commissioner, Olli Rehn, has blamed attempts by Spain, the eurozone's fourth largest economy and a more potent threat than bailed-out Greece, Portugal or Ireland, to ease up on deficit-cutting for renewed pressure on sovereign debt
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