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Wednesday, June 27, 2012

Germany refusing to bailout Spain, Italy - refuses Eurobonds

Blogman's Notes: I said in my last video update, George Soros and the elite banksters wants to force Germany to share Europe's debts. However this is a plan with little support in Germany and under normal circumstances will not be acceptable to Germans. So we may be looking at a Black Swan event that will somehow force Germany to accept Eurobonds. The word BONDS in finance is interesting because what it leads to is BONDAGE. Having brought Souther Europe under BONDAGE already, the Bankers have now set their sights on the wealthier, meatier areas of Europe, Germany in particular. I believe Germany will cave at some point in time but not sure what type of pressure will be applied to bring this about!

 (Reuters) - European leaders sound unusually divided before a high-stakes summit, with Germany's Angela Merkel saying total debt liability would not be shared in her lifetime and giving little support to Italian and Spanish pleas for immediate crisis action.
Rome and Madrid have seen their borrowing costs spiral to a level which forSpain at least would not be sustainable as it battles to recapitalize banks ravaged by a burst property bubble and cut a towering government deficit.
Demonstrators wearing masks depicting German Chancellor Angela Merkel (L-R), Spanish Prime Minister Mariano Rajoy, Italian Prime Minister Mario Monti and French President Francois Hollande, pose as they simulate playing a soccer match to protest against the euro zone debt crisis, in front of the Chigi palace in Rome, June 22, 2012. The message on the goal post reads: ''Tax on the financial transactions''. REUTERS/Remo CasilliSpanish Prime Minister Mariano Rajoy said on Wednesday he would ask other European Union leaders to allow the bloc's bailout funds or the European Central Bank to stabilize financial markets.
Speaking in parliament before a meeting of European heads in Brussels on Thursday and Friday, Rajoy warned that Spain would not be able to financeitself indefinitely with 10-year bond yields near seven percent.
"The most urgent issue is the one of financing. We can't keep funding ourselves for a long time at the prices we're currently funding ourselves," he told parliament.
Even when there are profound disagreements, EU leaders have been burned by the markets enough times to generally make sure they sound united before major gatherings.
But divisions have been exposed by the ousting of Nicolas Sarkozy by socialist Francois Hollande as French president and the fact that Rome and Madrid have muscled into the traditional Franco-German axis.
The leaders held an unusually discordant news conference in Rome on Friday. Hollande said there must be more solidarity in Europe before countries hand over more sovereignty over their national budgets, while Merkel said she would not accept extra liabilities without overarching budget control.
The pair will have a working dinner in Paris on Thursday evening, an opportunity to repair the damage. An initial attempt to smooth over differences came at a meeting of the four countries' finance ministers late on Tuesday after which nothing was said.
In Rome, Italian Prime Minister Mario Monti said he would not simply rubber stamp conclusions at the EU summit and said he was ready to go on negotiating into Sunday evening if necessary to agree on measures to calm markets.

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