Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Stocks Give Up Gains As Germany Denies Climate-Change Fiscal Irresponsibility

Courtesy of ZeroHedge. View original post here.

Update: Well that didn't last long… Germany's finance minister confirmed to Bloomberg via phone that Germany has made no decision to give up a balance budget.

Stocks are back down…

And Bund yields are sliding back…

Who could have seen that coming?

*  *  *

Bund yields (and Treasury yields) and stocks have spiked in the last few minutes following headlines from Germany's Der Spiegel that the government is proposing a €500 MM debt deal to fund climate protection, as part of Germany's U-turn on its long cherished balanced budget goal by issuing new debt to finance a costly climate protection package.

Development Minister Gerd Müller demands more financial resources for international climate protection.

"There is less and less time to achieve the goals of the Paris Agreement, and in Germany we must increase our efforts and invest an additional 500 million euros in international climate protection next year," the CSU politician told SPIEGEL.

“The challenge now is how to shape such a fundamental shift in fiscal policy without opening the flood gates for the federal budget,” a senior government official told Reuters, clearly realizing that this idea has virtually no chance of broad adoption by the frugal German population.

“Because once it is clear that new debt is no longer a taboo, everyone raises a hand and wants more money,” the official said. That’s why Berlin would link and limit any new debt strictly to the climate protection package which Chancellor Angela Merkel’s cabinet is expected to seal next month.

The money should come either from the National Climate Fund or from the federal budget, the minister said.

"This will enable us to finance an innovation and investment offensive for climate protection measures in Africa and, among other things, to strengthen international agricultural research," said Müller.

More debt, more wasted spending, more fiscal irresponsibility – buy stocks, sell bonds!

Yields are spiking…

As are stocks…

However, FX Macro sums things up well…

What would you do if you raise debt at minus-50bps?? This is sheer insanity – MMT is here and Draghi/Lagarde will do more of the same til it all explodes.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!