Tuesday, July 8, 2014
US Set To Alienate Angry Germany Next, As Crackdown Shifts From BNP To Commerzbank, Deutsche Bank
Submitted by Tyler Durden on 07/08/2014 08:04 -0400
As we reported over the weekend in "By "Punishing" France, The US Just Accelerated The Demise Of The Dollar", following the record $9 billion fine against French BNP, the outcry has been fast and furious, with virtually everyone in the local chain of command, from Total CEO to the head of the Bank of France (and ECB member) Christian Noyer, all saying that the US is now clearly abusing the reserve power of the dollar and it is time to move away from a dollar-based reserve currency (how that jives with concurrent French demands for a lower EUR is a different, incomprehensible matter entirely).
It appears that having pushed France forcefully into the Russia-China Eurasian, and anti-US camp, the US will now do the same with Germany. Because after infuriating the German population by first refusing to return their gold contained (the legend goes) at the New York Fed, and then with scandal after spying scandal, most recently involving the CIA directly soliciting a German double agent, now the time has come to "punish" Germany's largest banks for the same kind of money laundering that BNP was engaged in. As the NYT and Reuters report, the time has come to shift away from the BNP scandal and focus on what will soon be the Commerzbank and Deutsche Bank fallout.
France lashes out against US dollar, calls for ‘rebalancing’ of world currencies
Published time: July 07, 2014 10:24 Get short URL
French Finance Minister Michel Sapin (Reuters/Denis Balibouse)French Finance Minister Michel Sapin (Reuters/Denis Balibouse)
The French government wants to break the monopoly the dollar has on international transactions after the country’s largest bank, BNP Paribas, was slapped with a record $9 billion fine and a 1-year dollar trading ban.
Michel Sapin, the French finance minister, called for a “rebalancing” of the currencies used for global payments, saying the BNP Paribas case should “make us realize the necessity of using a variety of currencies” the Financial Times reports.
“We [Europeans] are selling to ourselves in dollars, for instance when we sell planes. Is that necessary? I don’t think so. I think a rebalancing is possible and necessary, not just regarding the euro, but also for the big currencies of the emerging countries, which account for more and more of global trade,” the finance minister told the FT at a conference over the weekend.
France wants to bring the euro to greater prominence in international trade. Sapin said he would raise the idea on Monday when he meets in Brussels with eurozone finance ministers.
BNP was punished for helping counties like Iran, Sudan, and Cuba process $30 billion in transactions which are illegal under US law, since they violate US sanctions. Starting on January 1, 2015, the bank will not be able to carry out dollar-based transactions for one year.
The French government has called the fine and 1-year ban unreasonable and unfair, as it blocks the country’s largest bank from handling dollars, which is the dominant currency in global trade. Nearly 90 percent of all deals in the $5 trillion a day foreign exchange market includes the US dollar.
Heavy-handed sanctions from the US and Europe have forced countries to also look towards other currency options. Russia, for example, is actively working to de-dollarize, and is starting to use the Chinese yuan and other Asian currencies in trading.
Dollars dominate most oil and gas pricing, another cycle France hopes to break.
Christophe de Margerie, the CEO of Total, France’s largest company, says other currencies can be used in oil purchases, even if the benchmark is left in dollars.
“The price of a barrel of oil is quoted in dollars,” de Margerie said. “A refinery can take that price and using the euro-dollar exchange rate on any given day, agree to make the payment in euro.”
The US and OPEC countries have traded oil exclusively in US dollars since 1971.
Pope Francis told victims of sexual abuse by Roman Catholic clerics the Church should "weep and make reparation" for crimes he said had taken on the dimensions of a sacrilegious cult.
Sacrilege is the violation or injurious treatment of a sacred object or person. It can come in the form of irreverence to sacred persons, places, and things. When the sacrilegious offence is verbal, it is called blasphemy, and when physical, it is often called desecration. In a less proper sense, any transgression against what is seen as the virtue of religion would be a sacrilege. "Sacrilege" originates from the Latin sacer, sacred, and legere, to steal, as in Roman times it referred to the plundering of temples and graves. By the time of Cicero, sacrilege had adopted a more expansive meaning, including verbal offences against religion and undignified treatment of sacred objects.
Most ancient religions have a concept analogous to sacrilege, often considered as a type of taboo. The basic idea is that sacred objects are not to be treated in the same way as other objects.
(Reuters) - Pope Francis told victims of sexual abuse by Roman Catholic clerics the Church should "weep and make reparation" for crimes he said had taken on the dimensions of a sacrilegious cult.
"For some time now I have felt in my heart deep pain and suffering," he said in his strongest comments yet on the crimes, delivered in the homily of a Mass with adult victims on Monday. "So much time hidden, camouflaged with a complicity that cannot be explained until someone realised that Jesus was looking."
He said he would not tolerate abuse, which has been exposed in recent years in many European, American and Asian dioceses. Bishops would be held accountable if they shielded them.
One prominent critic of the church's long failure to act on the cases, and of the pope's failure to meet victims earlier in his pontificate, said he must quickly follow up with clear action to prove the Mass was not just a ceremonial event.
Francis delivered his homily to six victims of abuse, two each from Ireland, Britain and Germany, before meeting all individually at a gathering that lasted nearly four hours, spending about 30 minutes with each one.
"I ask for the grace to weep, the grace for the Church to weep and make reparation for her sons and daughters who betrayed their mission, who abused innocent persons," he said, according to a Vatican transcript.
"Before God and his people I express my sorrow for the sins and grave crimes of clerical sexual abuse committed against you. And I humbly ask forgiveness," he said.
Sexual abuse scandals have haunted the Catholic Church for over two decades but became a major issue in the United States about 10 years ago. Since then they have cast a shadow over local churches in Ireland, Germany, Belgium, the Netherlands and other countries and badly tarnished the Church's image.