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<DIV style="font-color: black"><B>From:</B> <A title=akrowne@gmail.com
href="mailto:akrowne@gmail.com">Aaron Krowne</A> </DIV>
<DIV><B>Sent:</B> Sunday, November 27, 2011 4:31 PM</DIV>
<DIV><B>To:</B> <A title=endthefed-list@meetup.com
href="mailto:endthefed-list@meetup.com">endthefed-list@meetup.com</A> </DIV>
<DIV><B>Subject:</B> [endthefed] The eurozone really has only days to avoid
collapse - Wolfgang M�nchau</DIV></DIV></DIV>
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style="FONT-FAMILY: verdana,arial,sans-serif; COLOR: #333; FONT-SIZE: 12px"><FONT
face=verdana,arial,sans-serif>This pretty much wraps it up. The European
countries are going to have to agree to a pan-European Treasury and purse, as
well as limitless printing, if the euro is going to survive.<BR><BR>Side note:
it sure is interesting how gold and silver seem downright agnostic to this level
of crisis in the euro. I'm sure that's just free market forces at work,
though! LOL!<BR><BR><A
href="http://www.ft.com/intl/cms/s/0/d9a299a8-1760-11e1-b00e-00144feabdc0.html#axzz1exDBe1JH">http://www.ft.com/intl/cms/s/0/d9a299a8-1760-11e1-b00e-00144feabdc0.html#axzz1exDBe1JH</A><BR><BR>
<BLOCKQUOTE
style="BORDER-LEFT: rgb(204,204,204) 1px solid; MARGIN: 0pt 0pt 0pt 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>Unless something very drastic happens, the eurozone could
break up very soon.<BR><BR>Technically, one can solve the problem even now,
but the options are becoming more limited. The eurozone needs to take three
decisions very shortly, with very little potential for the usual
fudges.<BR><BR>First, the European Central Bank must agree a backstop of some
kind, either an unlimited guarantee of a maximum bond spread, a backstop to
the EFSF, in addition to dramatic measures to increase short-term liquidity
for the banking sector. That would take care of the immediate bankruptcy
threat.<BR><BR>The second measure is a firm timetable for a eurozone bond. The
European Commission calls it a �stability bond�, surely a candidate for
euphemism of the year. There are several proposals on the table. It does not
matter what you call it. What matters is that it will be a joint-and-several
liability of credible size. The insanity of cross-border national guarantees
must come to an end. They are not a solution to the crisis. Those guarantees
are now the main crisis propagator.<BR><BR>The third decision is a fiscal
union. This would involve a partial loss of national sovereignty, and the
creation of a credible institutional framework to deal with fiscal policy, and
hopefully wider economic policy issues as well. The eurozone needs a treasury,
properly staffed, not ad hoc co-ordination by the European Council over coffee
and desert.<BR>...<BR>[Merkel's] own very public opposition to eurobonds has
now become a real obstacle to a deal. I cannot quite see how the German
chancellor is going to extricate herself from these self-inflicted
constraints. If she had been more circumspect, she could have travelled to the
summit with the proposal of the German Council of Economic Advisers, who
produced a clever, albeit limited and not yet fully worked-out-plan. They are
a proposing a �debt redemption� bond � another candidate for this year�s top
euphemism award. The idea is to have a strictly temporary eurobond, which
member states would pay off over an agreed time period. At least this proposal
would be in line with the more restrictive interpretation of German
constitutional law.<BR>...<BR>Italy�s disastrous bond auction on Friday tells
us time is running out. The eurozone has 10 days at
most.<BR></BLOCKQUOTE><BR><BR><BR><BR>--<BR>Please Note: If you hit
"<STRONG>REPLY</STRONG>", your message will be sent to <STRONG>everyone</STRONG>
on this mailing list (<A
href="mailto:endthefed-list@meetup.com">endthefed-list@meetup.com</A>)<BR>This
message was sent by Aaron Krowne (akrowne@gmail.com) from <A
href="http://www.meetup.com/End-The-Fed/">National Ron Paul End The Fed Meetup
Group</A>.<BR>To learn more about Aaron Krowne, visit his/her <A
href="http://www.meetup.com/End-The-Fed/members/6332229/">member
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