The Netherlands' Queen Beatrix has reportedly accepted Mark Rutte and his cabinet's resignation. Al Jazeera's Jonah Hull reports from the Hague.
Threats to Europe's Austerity Coalition (Portfolio)
Director of Research Kevin Stech discusses the repercussions of domestic challenges facing Europe's economic core of Germany, France and the Netherlands.
You're dreaming about any role the ECB and "the market" can play in
"disciplining" sovereign authority over fiscal matters. Indeed, Spain's
exemption from its previously agreed deficit target already reveals what
everyone in the world now knows following the ECB's LTRO: the euro zone is
hopelessly insolvent, which gives sovereigns incredible leverage over those
institutional forces in the EMU who wish to pretend otherwise. Brace
yourselves for hyperinflationary blowout a la 1923 Wiemar Germany.
Was that in response to me? I never stated the market will force nations to
do anything... other than default. The scenario you painted is one
possibility amongst a few, and probably the most likely. There isn't any
way the EU will succeed in it's current form, either full integration or
disbanding most of the Union will be needed. Hyperinflation is a word
thrown around with too much ease. Money printing alone has never caused it.
If a political break up is messy maybe we'll see that. Maybe.
I have heard some folks saying the Euro situation is titanic-esque. I don't
think there is a person on this planet that can predict with 100% accuracy
what will happen. What I was trying to say is that the strategy is to hold
these junk bonds until growth resumes, the ECB will sell them for cash,
then contract their balance sheet or hike interest (destroy the cash). All
of this is based on their growth predictions, which tend to be more rosey
than reality.
The usual sources - private investment/hedge funds, sovereign wealth funds
(China etc.) and other private sources. It could be monetized (inflation)
as well, since this strategy is presumably a long term one. I figure the
ECB will follow the Fed's generalized strategy of holding the assets until
the market can bear their re-entry. But, seeing as how the Fed still has
toxic assets on their sheet four years later, the chances of inflation are
pretty high.
are you suggesting that Fed and ECB is buying it , but they are not sure
100% if the market will absorb all that money .... in the future. Are you
sugesting that our financial system is like a Titanic ?
but who will buy it back from ECB ? taxpayers ? China ? inflation ?
Austerity anger boosts European extreme parties
In the Netherlands and across Europe, the growing anger towards austerity measures is leading to a boost in support for the far-left and far-right parties.
Geert Wilders on the extreme Dutch austerity (subbed)
Geert Wilders' rant regarding the new billions worth of Dutch cuts announced by the Rutte-Asscher cabinet. Original video: ...
demonstreren op 21 september, vecht voor je rechten en vrijheden!
Austerity Innovation: cash-strapped Dutch artist finds cheap housing in vault of recession-hit bank
The bursting of a housing bubble and the effects of the Europe-wide recession are pushing the Dutch to seek alternative modes of living. Like artist Gidget ...
EU austerity will cause new recession Francois Asselineau (2012 fr.)