Hungary is now leading the charge in the insanity. They are demanding hundreds of billions of dollars "or else." I was reading that article, and I couldn't quite figure out where I had heard the plot before. And then it came to me.
Prime Minister Ferenc Gyurcsany said the credit crunch is hitting poorer, eastern member states the hardest. The Hungarian leader called for a special EU fund of up to euro190 billion ($241 billion) to help restore trust and solvency in eastern EU members' financial markets.
He then went on to invoke the era of Soviet imperialism warning of a new "iron curtain" that could be erected in the event of deepening crisis. This follows the pattern that the US banksters took back in September of '08 when the first round of bailouts were happening. Lawmakers were blackmailed with threats of martial law if they didn't pass legislation immediately, giving away hundreds of billions of dollars.
Thankfully, Germany appears to be putting their foot down and are calling the eastern block's bluff.
German Chancellor Angela Merkel has rejected calls for a multibillion-euro bailout plan for eastern European Union member states.
She says the situation is very different in each EU country and aid should be handled on a case-by-case basis. She adds that a one-size-fits-all bailout of poor eastern members is unwise.
Ms. Merkel told reporters during Sunday's summit of EU leaders that “you cannot compare” the dire situation in Hungary with that in other countries. Germany, the EU's largest and richest economy, is under growing pressure to offer more help.
I have long suspected Germany would be forced into this position. I thought they might play nice for a while, even giving in to the first round of pleas for help, but then turning away when the recipients would inevitably come back to the trough.
It doesn't look like they'll even go that far. The implications of this should not be lost on anyone.
With Germany effectively saying "no" to other EU members it will be interesting to see if the promised collapse actually occurs. I'll have my eye on the Zloty and Forint and the European markets in general on Monday.
More important, though, are the geopolitical implications and societal acrimony that is likely going to result in the east. It will not be difficult for anti-west sentiments to fester and grow out of control. German "isolationism" would be an easy target.
Every day, this very flawed union takes another step toward it's ultimate destiny.
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