European Stability Fund Has No Funds : EFSF, ESM and Eurobond Discussions

[DCon]

The Bundestag will not sign the ESM into law until they have had a verdict from the Court.

It is hard to see how the ESM can possibly comply with German law, but courts are funny things and can be very political at times.

http://www.breakingnews.ie/world/ger...ct-557611.html

The same goes for Ireland.

12/09 is D day

However, Sept. 12 is set to be the symbolic beginning of the new euro-crisis season, and it looks set to start with a bang.

It is on that date that the Dutch will vote for a new government, and the German constitutional court will rule on whether the permanent bailout fund, the European Stability Mechanism, is constitutional or not.

http://blogs.wsj.com/brussels/2012/0...ruelest-month/

[C. Flower]

So, the European Constitutional Court says yes, but the Bundesbank says no.

http://www.fairobserver.com/article/...Gr9zck.twitter

Weidner of the Bundesbank is also saying that the ECB should not "plug holes in Greek budget."

[DCon]

China, and Japan, signal that they will buy ESM bonds. With a caveat

‘‘We will continue our cooperation with the European Financial Stability Facility and the future ESM,” the PBOC’s Yi said in the seminar at the IMF’s annual meeting. He said that China would support the efforts of the European Union, the European Central Bank and the IMF, playing “a minor role.”

At the same time as China and Japan signaled support for Europe’s rescue funds, officials had advice on what more is needed to counter the crisis dragging down global growth.

Yi, one of the leaders of China’s delegation to the IMF meetings, said that policies announced in the past few months by the European Union, the euro region, and individual nations now need to be fully implemented “to restore and rebuild confidence.”

http://www.bloomberg.com/news/2012-1...imf-meets.html

[rebellin]

The Invisible ESM “Headquarters”

After attending Thomas Pringle’s case being heard at the European Court of Justice, an EIR film team went to the office of the European Stability Mechanism (ESM) in Luxembourg. First of all, the ESM has its own web page but no address. Thus, we
went to the EFSF. And what did we see? This place is so low-profile that one suspects they are hiding themselves.
On the door bell, there is one tag for the EFSF and another
one for the ESM. Imagine a small, 4-6 family house, with no sign,
and just the names of the tenants on the door (thus, EFSF and ESM
among other names).
We started filming and rang the bell: Hello, we are
journalists, we just discovered you, can we come in? A panicked
woman first asked who we are, then said: Second floor. Up in the
elevator, we came out on a small floor. In front of us, through a
glass door one could see a small waiting room (think about your
dentist’s waiting room). On the short wall, two signs: EFSF and
ESM.
After a while, the press representative came out. And we
recognized him; he is a journalist who regularly attends ECB
press conferences and, of course, is among the “chosen” who can
always raise questions. He recognized us as well and was
surprised to see us; asked what we want. He told us to switch off
the camera, this was off the record. We said, we are here out of
curiosity, we are coming from the Court of Justice and wanted to
see. The spokesman replied,that the EFSF is now the ESM; they
just put one tag more on the door; further, that about 60 people
work there (they must be squeezed like sardines in that small
office….).
And when will you get out of this provisorium, when will you
get a representative office? Why, we do not need a
representative office. We are OK here.
That was it. This is the European Bailout Fund that is
supposed to manage up to EU7 trillion which will be used to
enslave countries.
We filmed our way out. (By the way: our GPS navigator gave
no result for 43, Avenue John F. Kennedy. It has only 45.)

http://laroucheirishbrigade.wordpres...-headquarters/

[DCon]

The ESM is compatible with EU law.

The European Union's highest court ruled on Tuesday that the euro zone's permanent bailout fund, the European Stability Mechanism (ESM), was in line with European law, despite a challenge by an Irish lawmaker.

http://www.reuters.com/article/2012/...8AQ0AP20121127

[Dojo]

China, and Japan, signal that they will buy ESM bonds. With a caveat



http://www.bloomberg.com/news/2012-1...imf-meets.html

Japan would do well to sort out its own dire fiscal situation first before throwing around its freshly printed Yen on foreign bonds. The impending debt catastrophe facing the Japanese is going to make Greece look like owing a few bob to your local credit union.

[DCon]

The debt is getting shorter termier

PARIS (MNI) – The European Financial Stability Facility (EFSF) said
Tuesday it will launch a new 1-year bond in the “near future” as an
alternative to the 3-year bond it was forced to postpone last week after
Moody’s downgrade of France left the EFSF statutorily unable to issue
longer-term paper.

The text of the EFSF’s statement is below:

“European Financial Stability Facility (EFSF) announces the launch
of a one-year bond in the near future, subject to market conditions.
Christophe Frankel, EFSF’s Chief Financial Officer & Deputy CEO said.
“Launching a one-year bond means that we can react to strong market
demand on the short end and provide investors with an alternative to the
planned 3-year bond.”

http://www.forexlive.com/blog/2012/1...ive-to-3-year/

[C. Flower]

http://www.telegraph.co.uk/finance/f...take-over.html

Separately, it emerged that the eurozone bail-out fund (ESM) may not be used after all to recapitalise banks, even once the banking super-regulator is in place. Klaus Regling, the fund's chief, said opposition from the creditor states may kill the idea altogether.
If so, this will breaches a summit accord in June by EU leaders to deploy the ESM directly to break the “vicious circle” between banks and sovereign states.
Failure to implement the deal would be a blow for Ireland and Italy, leaving them shouldering the full burden left from a bank crisis that was partly caused by northern creditors. The International Monetary Fund said it is imperative that the EU upholds the specific pledge made to Ireland in the summit text.

[DCon]

http://www.telegraph.co.uk/finance/f...take-over.html

but but but..Enda said


Does this mean summit accords are completely worthless if the Creditor states change their minds?

If so, what's the point?

[C. Flower]

Also via Reuters.

http://www.reuters.com/article/2013/...92102A20130302

I think maybe I should have put this on the "Game Changer" thread.

[DCon]

There is a meeting of Eurogroup Finance Ministers today so at least Noonan can get clarity on this and fully update Enda's people.

I mean, they were so eager to get the news out when they had an "agreement" surely they will be just as keen to announce any updates

[C. Flower]

There is a meeting of Eurogroup Finance Ministers today so at least Noonan can get clarity on this and fully update Enda's people.

I mean, they were so eager to get the news out when they had an "agreement" surely they will be just as keen to announce any updates

Is there anything being reported on this in the Irish media?

[DCon]

Is there anything being reported on this in the Irish media?

Just the Times, http://www.irishtimes.com/newspaper/...330751923.html, but nothing on the radio yet that I have heard.

This is taken from Spiegel

The Eurogroup of euro-zone finance ministers, which meets on Monday, would tread a new path with bank savings which would preserve the capital of the currency area's bailout fund, the European Stability Mechanism, German magazine Der Spiegel reported Sunday, citing a draft prepared for Monday's meeting.

According to the draft, the ESM should set up subsidiaries to directly help troubled financial institutions, the magazine said.

http://www.nasdaq.com/article/esm-ma...#ixzz2MZ5tAglO

[ang]

So the ESM may never be used to recapitalise banks. The veil is slipping -

RTRS: IF BAIL-IN PROCESS WORKS, DIRECT RECAPITALISATION OF BANKS BY ESM MAY NEVER HAVE TO HAPPEN - DIJSSELBLOEM

Can someone wake up Enda and Eamon PLEASE !
OR
Is it possible that our "leaders" already know this and are being disingenious to the Dail and its people ?

[C. Flower]

So the ESM may never be used to recapitalise banks. The veil is slipping -



Can someone wake up Enda and Eamon PLEASE !
OR
Is it possible that our "leaders" already know this and are being disingenious to the Dail and its people ?

The first page of this thread got it right. There was never going to be any "rescue" anywhere, just various means of siphoning off peoples money to pay back bondholders and the central bank.

http://www.politicalworld.org/showth...nd-Discussions