EU AGREES AFTER ARM-TWISTING TO HOLD OFF MAJOR ANNOUNCEMENT FOR BACKSTOP TO CONTROL SOVEREIGN DEBT UNTIL THE OBAMA CONVENTION.
The New York Times reports:
May 31, 2012
PARIS — President Barack Obama is putting increasing pressure on European officials to resolve the euro crisis, talking with the leaders of Germany, France and Italy to help lay the groundwork for action before a Group of 20 summit meeting to be held in June in Mexico.
Mr. Obama discussed the recent developments in Europe in video conference calls with the European leaders on Wednesday. Mr. Obama was following up on discussions he held at the recent Group of 8 meeting at Camp David with the German chancellor,, the French president, François Hollande and Mario Monti, the Italian prime minister.
“Leaders agreed to continue to consult closely as they prepare to meet at the G-20 summit in Mexico next month,” the White House said in a statement. The meeting will be held June 18-19, beginning just a day after a Greek election that is being seen as a de facto referendum on that country’s euro membership.
At that meeting the mechanism for an EU action to backstop the European Union membership from economic collapse took place with an agreement between the Euros central banks. The backstop announcement was to take place in the middle of July, but the Americans had armtwisted the Euro bankers to hold off on the announcement. From that time the world's financial and stock markets have chopped around a small range awaiting an announcement from the EU.
Today's announcement, after American insistence on delays until the administration though it is the right time, took place.
The RIGHT TIME is the day the president accepts the Democratic National Committee's nomination for 2012.
In short, the entire world and its financial markets were kept at risk to assure the re-election on one Barack Obama.