Courtesy of Tyler Durden
As was widely expected, four German professors are preparing to ask for a constitutional court injunction to block the transfer of German funds, claiming the EU-IMF rescue for Greece violates the “no-bail-out” clause of the EU Treaties. Furthermore, as the Telegraph reports, this is occurring “as fresh details emerge on the scale of the bailout – “Germany’s Handelsbatt cited sources in Berlin warning that the bill may be three times as high as thought, pushing the EU share to €90bn (£79bn) – with an extra €15bn from the IMF.” We are confident that the US-controlled IMF will have no problems with taking on the entire load of the bailout package, thereby forcing Americans to be the only party responsible for making sure European creditors are made whole, but that the next target of currency debasement becomes, once again, the dollar. Cause after all, there is that little bit about the several trillion in toxic CRE debt that has to be inflated away before 2012.
From the Telegraph:
The brief respite on Greek debt markets has already given way to fresh capital flight. Yields on 10-year Greek bonds surged yesterday to 7.11pc, higher than a week ago. Portuguese bonds began to wobble after Brussels called for more austerity.
The legal challenge has far-reaching implications. It threatens to cloud the issue for weeks or months and may ultimately force Berlin to withdraw support, raising the risk of wider systemic crisis in Southern Europe.
Dr Karl Albrecht Schachtschneider, law professor at Nuremberg and author of the complaint, told The Daily Telegraph that he will be ready to file within days and will ask the court for an expedited procedure. A ruling could occur within a week, but may take as long as six months.
The complaint will argue that the rescue contains an illegal rate subsidy, threatens monetary stability as encoded in the Maastricht Treaty, and breaches the ‘no bail-out’ clause. Greece is clearly responsible for its own mess.
If only the US had even one “professor” who had the guts to do what Germany is doing, it might have given some hope that the US would not default at some point in the next 5 years. Alas, with a completely indoctrinated and “captured” educational core, and with ongoing monthly debt issuance that boggles the mind, which in turn makes sure that “London based bond purchasing centers” have full direct access to Fed money, and are preferential bidders for every single future bond auction to make sure that bond rates never again go past 5%, while there still may be hope for Germany, which is doing all the right things, the US has taken the other side of that trade, and will stop at nothing to destroy the fabric of its own society once the debt load become untenable.