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Actual Constitutional Case Against OMT and ESM; Why Bond Buying Undermines Democracy; Is Draghi Above The Law?
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / Monday, September 10, 2012 1:02 PM
A post on the the Fibs and Waves blog by “Blankfeind” outlines the actual legal case against the OMT. I believe the case is rock solid. How the German constitutional court rules in two days is another matter.
Please consider The ECB Thumbs Its Nose At The Law.
On September 6th, the ECB announced its Outright Monetary Transactions program, known as OMT. Justified as a means for the ECB to repair monetary policy transmission and to recreate the singleness of monetary policy for the euro area, the OMT offers an unlimited commitment by the ECB to purchase short-term (one to three year) sovereign debt in the secondary markets for sovereigns who agree to certain conditions.
The bond purchases themselves will not be conducted by the ECB, but rather by the national central banks in proportion to their capital key with the European Central Bank. Hence, should Spain eventually fall under the OMT program, it will be the German Bundesbank that will be responsible for purchasing the largest single share of Spanish bonds.
But, is OMT legal under the treaties that govern the ECB?
Thanks to BrotherJohnF
2012-09-10 12:34:48
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