F Dominicus Blog

A politically incorrect blog about matters of money, government, bureaucracy, freedom and sometimes something else.

I havn't a good feeling

The Bundesverfassungsgericht (BVG) will decide upon the ESM in September. Now it's of course better it is later signed than ealier, still I have my problems with it.

For me the ESM is against the constitution. And I think the judges should come to the same conclusion but if that is clear "now", how comes it will take 8 week or so before the BVG will decide upon it? I'm very wary, that the may try to find a way to let it slip through in the way. "Yes but... ". If it is clear that it's unconstitutional why would they need 2 months?

Maybe it's that I see just enemies around. But the BVG has decided that it's ok to have the Euro. But they insisted on the bail-out-clauses. And just because of them they decided it's not overly risky to allow the Euro. Well we know what has happened with the no-bail-out clause. We know also what has happened with the deficit rules. Germany and France were above the 3% new debs (yearly) but nothing has happened. So in fact all rules which should keep us safe were broken. The ESM does not even claim to be bound to something.

The ESM Board of Governors, has in the original version any immunity you can think of. The ESM can not be tested in Court, but in the case the Board agrees. There is also no limit to the base capital. It will start with 700 billoin (Germany's share is 211 billions or so) but if they run short on money the can demand in addition. Now Parliament has to agree upon that. So really it's one of the most undemocratic things the deledefs wanted to start. It reminds me like helll on TARP (you remember Paulsan wanted 700 billions or the world would come to a halt) and you know what has happened the TARP money is burned. Why should be be different with the ESM?