Sure that would be fine. You can describe me as Michael Roberts, socialist economist and author of the book, The Great Recession, published by Lulu (2009).

Would it be alright for us to reproduce your piece above in our monthly “Third World Resurgence” magazine? We will be sure to acknowledge this blog as the source and include the URL.

In the event that we may reprint the article, how may we describe you in the author bio?

Bottom line is, as always, the bottom line. Germany’s commitments have not increase one speck. The ESM is too small; Eurozone or EU bonds aren’t going to be issued; and the banking license for the ESM so it can borrow from the ECB? Possible? Certainly? But.. what assets can the ESM utilize to secure the loans without the ECB’s balance sheet in essence quintupling?

I think this all part of the endgame for the monetary union, and the very notion that could be some sort of the United States of Capitalist Europe.

Anyway, it’s all a bit of speculation and we know where that winds up…

Merkel certainly blinked in those small hours. Now the Germans are trying to convince their people that no concessions were made but, when push came to shove, Merkel blinked — perhaps for reasons of short-term expediency, but blink she did. Rather than be faced with Italy having to have a bailout or face dealing with Berlusconi by September she opted for some concessions to buy time.

Of course, the Summit statement had sufficient ambiguity — especially in terms of its timing — to give all the players a fig leaf of sorts. Merkel could correctly tell her parliament she had delivered the growth package that the opposition SPD demanded as condition for its support of the Fiscal Compact and that no ESM funds would be injected into weak peripheral banks until a sober banking supervisory mechanism has been established (December 2012 at the earliest). The Club Med boys could go home saying they’d won looser conditionality for future support (no Troika programmes), the possibility of direct bank recaps and removal of EFSF senior creditor status. This simply buys time.

But the ESM remains seriously light on financial resources. If Spain and/or Italy are forced to ask for a bailout, it will need more money or the game is up. So then the issue of a banking licence for the ESM to allow the ECB to fund the ESM indefinitely and infinitely will come to a head. As you say, Merkel is gambling on that not happening. But so far, the debt crisis has not gone away but spread further.

Was Germany’s commitments, liabilities for funding increased? No.
ESM/EFSF can rescue banks directly? No, not exactly as the organizational document for the ESM says all funds go through governments. Maybe you think that won’t hold, but Merkel is betting that it does.

Italy, Spain escape supervision of the “troika”? Oh, come on…

http://news.yahoo.com/merkel-no-shared-debt-liability-lifetime-sources-152640608–finance.html