Germany repositions itself to asset-strip debtor nations

Shauble has agreed to increase Germany's IMF stake so that EZ states can accept IMF loans.

“We are prepared to increase the resources of the IMF through bilateral loans. If the IMF wants to widen its freedom to take action by increasing the special drawing rights, then we are prepared to talk about it. But, to be clear, this is about IMF instruments. I approve in principle, but there is much we must discuss before Germany will move on the issue”.

Since IMF loans are 'senior' to others, the EU (aka Merkel) perhaps figures that this route gets the bankers off its back because:

• it kicks the can down the road - again - to give them time to bury more toxic junk;
• it removes the bankers /markets somewhat from the negotiation, so reducing the direct impact of any actions they take or threats they make;
• when the banks start to collapse, the UK and German banks will get first access to assets of the debtor nations.

So it looks as though the Germans are following Osborne's lead in positioning themselves as first-in-line asset strippers of the stricken EZ nations.

They're going in for the kill.



Related:

• EUROCRISIS ANALYSIS: SCHAUBLE PLAYS A CLEVER GAME OF FEAR AND CONFUSION - The Slog
• ECB - OpenEurope 
• The referendum question Pt. 2 - David Blackburn, Spectator
• Eurozone: France and Germany call for tougher treaty