In the wake of the Spanish blowout, there has been a non-stop series of panicked crisis meetings among European heads of state, Eurocrats, and central bankers — all aimed at one objective: Getting German Chancellor Angela Merkel to cave in to a German bailout of the euro. In statements covered prominently in the Financial Times today, Merkel flatly refused to cave in to the pressures, warning that "German resources are not unlimited," and that she rejects the kind of "big bang" proposals coming from the likes of Timothy Geithner. She also reiterated that the eurobond scheme is unconstitutional under Germany's postwar constitution.
On Monday, at Los Cabos, Mexico, on the sidelines of the G-20 heads of state summit, Merkel will hold a meeting with Monti, Hollande, Rajoy, Cameron, Von Rompuy, Barroso—and Obama, where they will make one final stab at getting Germany to pick up the tab on all of Europe's gambling debts. French President Hollande flew to Rome on Thursday to meet with Mario Monti, where the two agreed on the urgency of eurobonds, and arranged to meet with Merkel and Cameron next week after the G-20 summit but before the scheduled European Union heads of state meeting.
The "Big Five" central banks have all signed on to the hyperinflationary panic. The Fed, the Bank of England, the ECB, the Swiss National Bank, and the Bank of Japan all issued statements on Thursday and Friday, indicating that they were prepared to inject an unlimited amount of liquidity to bail out the banks. The Swiss extended their zero-interest rates, the BOE and British Ministry of Finance announced two separate "quantitative easing" programs to inject an additional 100 billion pounds sterling into the British banks — for starters, and the Bank of Japan made similar announcements about massive yen purchases to drive down the value of the Japanese currency. The Federal Reserve Open Market Committee (FOMC) meets next week, but it is no secret that the Fed is already pouring money into Europe through swap windows and other mechanisms.
A senior City of London banker told EIR this morning that he expects the entire trans-Atlantic situation to blow up in the immediate days ahead, starting with a Spanish explosion next week, to be immediately followed by the long-feared Italian debt crisis. He emphasized that the big Wall Street banks are heavily exposed to the eurozone collapse, because all those US banks bet on the survival of the euro and the reduction in bond yields. This is why, the London banker said, Obama is in a total panic. "This may be the last normal weekend we ever have."