http://www.bloomberg.com/video/79517616/
China backs away from plans to save the eurozone via bail-out fund
Europe's leaders face an embarrassing reversal over their plans for the eurozone bail-out fund after attempts to drum up backing from China and other wealthy states backfired.
http://www.telegraph.co.uk/finance/financialcrisis/8868502/China-backs-away-from-plans-to-save-the-eurozone-via-bail-out-fund.html
Investors are slowly digesting the bittersweet message from Mario Draghi, the Teutonic Italian now at the helm of the European Central Bank (ECB).
While he surprised and delighted markets with a quarter-point cut in interest rates to 1.25pc, reversing last July's ill-judged rise, he also dashed hopes for mass bond purchases to save Italy and for radical action to stop the crisis spiralling out of control. That matters far more.
"What everybody wanted to know was whether the ECB would step up to the plate and do something grand and we didn't get that at all," said David Owen, of Jefferies Fixed Income.
http://www.telegraph.co.uk/finance/financialcrisis/8868535/ECBs-Teutonic-Mario-chills-bond-rescue-hopes.html
George Osborne says Britain won't 'go out on a limb' with cash for IMF and warns Greek euro exit 'traumatic'
Pressed on how much extra the UK might put into the IMF, Mr Osborne said no firm figure had been agreed but complained that media coverage of the issue suggested Britain was acting alone in devoting more money to the potential bailout funds.
http://www.telegraph.co.uk/finance/economics/8869114/George-Osborne-says-Britain-wont-go-out-on-a-limb-with-cash-for-IMF-and-warns-Greek-euro-exit-traumatic.html
IMF role in spotlight at G20 summit
But within the IMF, the powers have shifted.
Until two years ago, the IMF — dominated by the traditional powers in Europe and the U.S. — mostly applied the painful adjustment programs that are attached to its financial lifelines to poor and emerging economies in Asia, Latin America and Africa.
Now, it's growing powers like China, Brazil and South Africa that have to decide whether helping Europe is a worthy investment.
snip
Yet cash-rich countries like China, Russia and Brazil quickly made clear that any investment from their side would have to be channeled through the IMF. That would ensure that their loans come linked to strict economic conditions and could also give them more influence within the fund.
snip
A third option for bigger IMF involvement would be an overall increase in the IMF's special drawing rights that could then be used to strengthen the eurozone's bailout fund. Special drawing rights are the IMF's own reserve currency, which can be swapped for cash at central banks around the world.
http://www.google.com/hostednews/ap/article/ALeqM5hdioPjgQR09gA_8uZL6sPkdxOL2Q?docId=94efe7cdeff249e08915939ce0bffc6b
BRICS Ready to Help Protect Euro, Russia’s Medvedev Says
The BRICS group of emerging economies is ready to help protect the euro, and expects to get more voting rights at the International Monetary Fund, Russian President Dmitry Medvedev said today.
http://www.businessweek.com/news/2011-11-03/brics-ready-to-help-protect-euro-russia-s-medvedev-says.html
BRICS wants IMF to save euro zone China stand still not clear
Ahead of a mini euro zone meeting preceding the G20 Cannes summit starting on Thursday, the group of five emerging markets huddled together to convene another virtual conclave within the two-day event. Leaders of Brazil, Russia, India, China and South Africa (BRICS) met here to chalk out a common stand on major issues facing the world, including the euro zone debt crisis.
A briefing note said the leaders expressed support for a greater role of the International Monetary Fund in efforts to help resolve the euro zone sovereign debt crisis. It is still not clear though whether China, the biggest suitor for the Europeans among BRICS, would prefer to get some sweetners through a bilateral deal with the crisis-hit Europe.
http://business-standard.com/india/news/brics-wants-imf-to-save-euro-zone-china-stand-still-not-clear/454530/
Brics ready to pay EU loans only via IMF
http://www.ft.com/cms/s/0/d0869f86-03dd-11e1-98bc-00144feabdc0.html
IT'S NOT THAT SIMPLE
--------------------
The Greeks are a profligate, lazy, dishonest and tax-evading nation.
That, at least is the popular picture in the media. It's worth pointing
out, however, that monetary issues between Greece and Germany go back a
long way - 70 years, in fact.
As they did with all occupied countries, the Nazi forces emptied the
Greek treasury of gold, and forced the Greeks to provide a 'war loan' of
$3.5bn to Germany (current value >$25bn). They triggered hyperinflation
of the Drachma.
After the Germans replaced the Italians in occupation, they and the
Bulgarians in the north systematically stripped Greece both of its
Jewish population and as many of their assets as were portable. Despite
often heroic opposition to the holocaust activities from the Greek
population themselves, especially in the Greek islands, 60,000 Jews
perished, 81% of the estimated pre-war Jewish population.
In addition, 300,000 Greeks are estimated to have died in forced labour,
600,000 died of starvation, and 39,000 more were killed in reprisal
murders for partisan activity.
The German and Bulgarian occupying forces persisted in genocide right
until the end of the war. Even though the Nazi withdrawal started in
1944, trains were still departing from Greece to the extermination
camps, others carrying looted property and archaeological treasures to
Germany, less than a month before the cessation of hostilities in 1945.
Nazi-looted Greek archaeology remains on public display in Berlin to
this day (2011).
Germany has paid 50 million US dollars "in compensation", stating it has
no intention of paying more 'as this would create a precedent.' The
matter was last raised by the Greek deputy Prime Minister in 2010.
Greece's claim on Germany is estimated at over 70 billion[1] Euro.
There is no doubt that Greece has of late been a socialist 'paradise'
built on other countries' money, however, as with so many other global
political issues, the reality is just not that simple. don't hold your
breath however for any German government to be stricken by conscience.
Notes:
1. The German debt includes:
o $7.1bn unpaid official reparations (Paris conference, 1960),
o $25bn (1944 'War loan' plus interest),
o Unpaid victims' compensation (approx. 850,000 Greeks died in WWII)
o Archaeological treasures plundered by Germany.
2. <http://www.dailymail.co.uk/news/article-1253416/Greece-accuses-
Germany-wrecking-economy-Nazi-occupation-debt-ridden-nation-hit-
strikes.html>
3. <http://en.wikipedia.org/wiki/Axis_occupation_of_Greece_during_World_
War_II>
4. "Hitler's Beneficiaries: Plunder, Racial War, and the Nazi Welfare
State", Götz Aly, Metropolitan Books. January, 2007 ISBN 0-8050-7926-2,
ISBN 978-0-8050-7926-5
5. <http://en.wikipedia.org/wiki/Agreement_on_German_External_Debts>
6. <http://www.keeptalkinggreece.com/2010/12/02/greek-deputy-fm-the-
german-wwii-reparations-issue-is-still-open>
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