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Ambrose Evans-Pritchard: German ‘bail-in’ plan for govt. bonds risks blowing up the euro
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
gata.org / By Ambrose Evans-Pritchard, The Telegraph, London / 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…
The post Ambrose Evans-Pritchard: German ‘bail-in’ plan for govt. bonds risks blowing up the euro appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/15/ambrose-evans-pritchard-german-bail-in-plan-for-govt-bonds-risks-blowing-up-the-euro/
