ML-Implode News - Russell Napier: "Will Merkel Hand Over The Keys To The Helicopter"?

``Time is ticking away and a decision will have to be made within weeks if a European recession, which will raise severe questions about the survivability of the European political union, is to be averted. We will know soon enough just how large the ghost of Herr Haverstein still looms in Germany, as a failure to endorse helicopter money within a few weeks most likely means Germany is ultimately backing away from the European political union project. This is amongst the most important political decisions of the 21st century and one full of pain for global equity investors if Germany decides not to act. Early clues as to which way The Chancellor might swing are to be found in Italy.
... the German response to the unilateral announcement by the Government of Italy that public funds would be used to recapitalize their banks, without any bail-ins, was uncompromising. While one might have expected a representative of the European political union to have insisted that laws be implemented, Mrs Merkel intervened directly, presumably representing the Union as a whole when she stated: "We wrote the rules for the credit system, we cannot change them every two years."

If that is a true representation of what The Chancellor thinks then a financial crisis is just a few days away. Not only will it create runs on banks across Europe, it will also signal that the German commitment to the European political union cannot be taken for granted...

Relevant:

Russell Napier: "Will Merkel Hand Over The Keys To The Helicopter"?