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 THINK THE COLLAPSE OF THE EURO IS INEVITABLE - AND A GOOD THING; (THOUGH WHEN IT COMES IT WILL INITIALLY CAUSE GREAT DISPLACEMENT, HAVOC - EVEN LOSSES FOR MANY BETTING ON THE WRONG SIDE OF HISTORY).
“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.
“This prohibition only makes sense if those responsible do not get around it by making substantial purchases on the secondary market,” he said, speaking at a forum of half the world’s Nobel economists on Lake Constance to review the errors of the profession over recent years.
Mr Wulff said the ECB had gone “way beyond the bounds of their mandate” by purchasing €110bn (£96.6bn) of bonds, echoing widespread concerns in Germany that ECB intervention in the Italian and Spanish bond markets this month mark a dangerous escalation.
He did not explain what else the ECB could have done once the bond spreads of these two big economies began to spiral out of control in early August, posing an imminent threat to monetary union and Europe’s financial system.
The blistering attack follows equally harsh words by the Bundesbank in its monthly report. The bank slammed the ECB’s bond purchases and also warned that the EU’s broader bail-out machinery violates EU treaties and lacks “democratic legitimacy”.
The tone of language from two of Germany’s most respected institutions suggests that both markets and Europe’s political establishment have been complacent in assuming that the court would rubberstamp the EU summit deals in Brussels.Nobel laureate Joe Stiglitz told the forum that the euro is likely to fall apart unless Germany accepts some form of fiscal union.
BRITAIN HAS ITS OWN CURRENCY.
SO SHOULD MANY OTHER COUNTRIES IN THE EU.
THE EU IS NOT AND NEVER WILL BECOME A NATION, AND CURRENCIES RIGHTLY BELONG TO NATIONS, NOT INTERNATIONAL BUREAUCRACIES CONTROLLED BY SOCIALISTS.