At G-20, the Empire Agreed with Itself that Germany Must Bail Out the Entire Trans-Atlantic Banking System
June 21, 2012 • 8:08AM

About the only thing that the participants in the June 18-19 G-20 summit could agree upon, it seems, is the spelling of the names of the next blowout victims: Spain and Italy. Other than that:

1) British media like the Daily Telegraph trumpeted "reports" that a bailout package worth 750 billion euros (about a trillion dollars) had been put in place, including funds from the EFSF and the (non-existent) ESM, which would buy Spanish and Italian sovereign bonds. They characterized the deal as a major step towards a European bank union and eurobonds.

2) British Chancellor of the Exchequer George Osborne argued on behalf of the "Weimaristas" that this (non-existent) new fund had to ensure that "common resources [are] transferred from richer countries to poorer countries, [to show] that the whole eurozone stands behind the banks of the eurozone."

3) British vultures such as David Owen of Jefferies said that even this would not be enough, and that the (non-existent) ESM had to be licensed as a bank, so it could borrow endless squillions from the ECB, and give them to the banks. "Any bond purchases must be on a crushing scale to eliminate all doubts about EU willingness to take the risk of sovereign off the table entirely and permanently," he said in flight of manic fancy.

4) German officials, however, adamantly denied that any such agreement had been reached, insisting that "there wasn't any discussion about any such concrete initiative at Los Cabos," according to Spain's ABC.

5) EU economic spokesman Amadeu Altafaj also denied an agreement had been reached: "there were no negotiations about this" during the summit.

6) The Spanish government of Mariano Rajoy, meanwhile, has not even given the green light for last week's 100 billion euro package, let alone the new one, which is larger by an order of magnitude. Rajoy told a press conference in Los Cabos that no one at the summit had "proposed that we ask for aid from the financial institutions," while his Finance Minister, Cristobal Montoro, told Spain's parliament that Spain would not ask for an international bailout, "because it does not need to be bailed out."

Notwithstanding these minor disagreements among executioners and their intended victims, the spelling bee at the end of the summit went swimmingly, with Barack Obama taking first place after showing his ability to spell "narcissist" backwards and forwards in succession.