I don't understand how anyone in the European Commission can have such a stupid idea. The result would be to endanger the AAA sovereign debt ratings of other member states. It makes no sense," he said.
Mr Schauble told Washington to mind its own business after President Barack Obama rebuked EU leaders for failing to recapitalise banks and allowing the debt crisis to escalate to the point where it is "scaring the world".
"It's always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government," he said.
Ziemlich klar!
As I mentioned before, the Germans have finally revolted and there no way they're going to trash their own economy to bail out Greece, Spain, Ireland or Italy any further. The first scheme, involving eurobonds with Germany's tax payers subsidizing the interest rates was DOA, and pumping up the EFSF artificially isn't going to fly either.
The euro is doomed...it's only survived this long because the Fed is propping the euro up with 'dollar swaps', which means the Fed is buying euros for dollars at an artificial rate to keep it from crashing through the floor. That's literally the Old Jack and the Beanstalk trade in real life, with billions at stake.
Greece will almost certainly default, even though Greek PM George Papandreou vowed that his country would honor its austerity agreement. However, it's highly unlikely, and once Greece goes, it will likely take the rest of the euro zone with it, because it will provide a precedent to the other member nations who are now in deep economic trouble.
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