Ambrose Evans-Pritchard in the Telegraph:
German President Christian Wulff has accused the European Central Bank of violating its treaty mandate with the mass purchase of southern European bonds.
In a cannon shot across Europe’s bows, he warned that Germany is reaching bailout exhaustion and cannot allow its own democracy to be undermined by EU mayhem.
“I regard the huge buy-up of bonds of individual states by the ECB as legally and politically questionable. Article 123 of the Treaty on the EU’s workings prohibits the ECB from directly purchasing debt instruments, in order to safeguard the central bank’s independence,” he said…
Little late there, Wulff, old boy – the European Central Bank has been burying the European Union in bogus debt for three years.
This does, though, point to the end of German patience – after all, Germany can start printing Deutschmarks tomorrow and they would probably be at par with the British pound, and possibly higher. European money would start to flood in to Germany as people seek a safe haven from the coming Euro-collapse. It is time to call a halt to this before the entirety of Europe is brought down because the ECB wants to bail out banksters who idiotically loaned money to places like Greece, Italy and Spain. It can’t be done – and either the PIIGS bondholders will go under, or everyone will. If I were German, I’d be saying “bondholders go under”.
Will Germans discover a backbone and send the ECB packing, or will lingering guilt over WWII (to be sure, that is something to be guilty about) cause German’s to sacrifice their own prosperity in order to be “good Europeans”? Time will tell…