You are here
Ambrose Evans-Pritchard: German 'bail-in' plan for govt. bonds risks blowing up the euro
By Ambrose Evans-Pritchard
The Telegraph, London
Monday, February 15, 2016
A new German plan to impose "haircuts" on holders of eurozone sovereign debt risks igniting an unstoppable European bond crisis and could force Italy and Spain to restore their own currencies, a top adviser to the German government has warned.
"It is the fastest way to break up the eurozone," said Professor Peter Bofinger, one of the five "wise men" on the German Council of Economic Advisers.
"A speculative attack could come very fast. If I were a politician in Italy and I was confronted by this sort of insolvency risk, I would want to go back to my own currency as fast as possible, because that is the only way to avoid going bankrupt," he told The Telegraph.
The German Council has called for a "sovereign insolvency mechanism" even though this overturns the financial principles of the post-war order in Europe, deeming such a move necessary to restore the credibility of the "no-bailout" clause in the Maastricht Treaty. Professor Bofinger issued a vehement dissent. ...
... For the remainder of the report:
http://www.telegraph.co.uk/finance/economics/12158626/German-bail-in-pla...
Buy precious metals free of value-added tax throughout Europe
Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries.
Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world.
Visit us at www.europesilverbullion.com.
Join GATA here:
Mines and Money Asia
Tuesday-Thursday, April 5-7, 2016
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China
http://asia.minesandmoney.com/
Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore
http://www.mininginvestmentasia.com/
Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:
http://www.goldrush21.com/order.html
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
