The ruling is “a clear rejection of eurobonds”, said Otto Fricke, finance spokesman for the Free Democrats (FDP) in the governing coalition.
Above all, the court ruled that the Bundestag’s fiscal sovereignty is the foundation of German democracy and that Article 38 of the Basic Law prohibits transfer of these prerogatives to “supra-national bodies”.
By stating that there can be no further bail-outs for the eurozone without the prior approval of the Bundestag’s budget committee, the court has thrown a spanner in the works and rendered the EFSF almost unworkable.
I’ll stick my neck out and call the over/under on a German return to the D-Mark at 114 days. I also have it on the authority of a Dutch businessman friend who ran a leading Dutch electronic company’s worldwide operations that ‘De Nederlandsche Bank’ is currently printing a large supply of Guilder notes for rapid re-introduction if necessary.
What does Portugal export outside the Euro zone? How about Spain? Some wine, some olives, a few tinned little fishies. Greece? It was a political currency from the beginning, and unlike Federal Reserve Accounting Unit Dollars (F.R.A.U.D.) which are nothing more than circular IOUs, the Euro is a [i]WHO[/i] Owes You.
Right now nobody can figure out WHO owes you, which is why this will end in tears for many, and not just on the far side of the Atlantic.