Reuters/Francesco Canepa andBalazs Koranyi/5-26-2020
“The European Central Bank (ECB) is drafting contingency plans to carry out its multi-trillion bond-buying programme without the Bundesbank in case Germany’s top court forces the main participant in the scheme to quit …”
USAGOLD note: Bundesbank, we should remember is the largest buyer of the ECB’s bonds. A German court handed down a ruling last month that could result in a ban on further Bundesbank bond purchases and selling €500 billion in euro-bonds it now holds. As Reuters says, Europe has arrived at a “moment of truth” – and one that might encourage some to take refuge safe havens.
