Special Report: The Bundesbank's fight to be heard

I wonder if Mario’s “whatever it takes” has an asterisk next to it with a sub-note of whatever Jens and the Bundesbank will allow…

I wonder if Mario’s “whatever it takes” has an asterisk next to it with a sub-note of whatever Jens and the Bundesbank will allow…

I wonder if Mario’s “whatever it takes” has an asterisk next to it with a sub-note of whatever Jens and the Bundesbank will allow…

I wonder if Mario’s “whatever it takes” has an asterisk next to it with a sub-note of whatever Jens and the Bundesbank will allow…

The EU follows the golden rule, “He who has the gold, makes the rules.” Today, it is the Germans who have the gold. The ECB kowtows to the Bundesbank with the Germans receiving the monetary policy they want, which results in a policy much too tight for the periphery.

The Germans are also driving the talks on the banking union. Germany will not agree to anything that requires it to commit funds prior to elections in September. Once Merkel is reelected, the government will probably change its mind, much to the great chagrin of the German taxpayer. Until then, there will be no progress on a banking union, though you may see a well-parsed political press release here and there.

Full post with charts, images and links:

http://dareconomics.wordpress.com/2013/07/01/around-the-globe-07-01-2013/