Courtesy of Mish.
Sensationalist Silliness
Several people asked me to comment on The Telegraph article Germany signals shift on €2.3 trillion redemption fund for Europe by Ambrose Evans-Pritchard.
OK. Here goes. The headline is nothing but sensationalist silliness. There is no shift, and even if there was a shift, it could not possibly come in time.
“It is conceivable so long as there is proper supervision of tax revenues,” said a source in the Chancellor’s office. The official warned that there would be no “master plan” or major break-through at the EU summit later this month.
Mrs Merkel rejected the Redemption Pact last November as “totally impossible”, even though it was drafted by Germany’s Council of Economic Experts or Five Wise Men and is widely-viewed as the only viable route out of the current impasse.
Fast-moving events may have forced her hand.
Meaningless Political Statements
The statement, not even from chancellor Merkel, warned there would be “no master plan”, only that the idea was “conceivable”. That alone proves such a shift, even if it was real, could not possibly come on time.
This is what happened: “Fast-moving events” forced a meaningless statement out of an unnamed source in the Chancellor’s office, hoping to calm the market.
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