Weimar Hyperinflation: Relaunching "Securitization"

The Obama Administration's declaration that it intends to go whole-hog in supporting the "securitization" markets in mortgages, echoes the international British imperialist drive.

European Central Bank Executive Board member José Manuel González-Páramo enunciated the policy in a speech in London back on Jan. 17. He said that the "re-launching of the securitization market is crucial to support banks' needs for refinancing and, in fine, for allocation of credit to the real economy." The 20 largest banking institutions of the eurozone have close to EU800 billion of long-term debt having to be refinanced from here to 2012, said González-Páramo to justify his call.

On Aug. 10, the head of the British Banking Association, Stephen Green, wrote to Chancellor of the Exchequer George Osborne that the association would give the state, next October, proposals elaborated by a committee chaired by the heads of Britain's six main banks: among those proposals "the re-launching of the securitization market and the improvement of mechanisms to finance exports."

In France, in the context of its own "Financial Regulation Law," so-called, the government allowed for a much more enhanced securitization than France had ever had before, and in the meantime, on July 20, a special report commissioned by the Stimulus Minister and presented to Economics & Finance Minister Christine Lagarde, called for massive utilization of securitization techniques in the context of an equally massive adoption of the public-private partnership (PPP) style financing!