G.B. and G.L.R. both spotted this one, and emailed me this article from Zero Hedge within three hours of each other. I happened to be sitting at the computer at that time, and when things like that happen, I sit up and take notice. Sure enough, others started emailing me the article or similar stories as the day went on. In Giza community terms, that's a "spike." So I opened the article to see what the Kardinals of Karlsruhe were up to this time. And in case you're wondering what the term "Kardinals of Karlsruhe" means, well, the article explains that too, but basically, it boils down to the crimson robes and hats German supreme court justices wear, and it even includes a nice picture so you can see for yourself:
And here's the decisions the crimson-berobed justices handed down:
Germany's Constitutional Court - sometimes called the Kardinals of Karlsruhe for their colorful garb - stunned markets on Tuesday when it ruled that some actions by the European Central Bank may be unconstitutional, and that unless the ECB can prove that PSPP was "proportional" in the next three months, the Bundesbank should no longer participate on PSPP
In a 7-to-1 ruling, the judges said that the quantitative easing program isn’t backed by European Union treaties. That’s why German authorities acted unconstitutionally by not challenging the €2.7 trillion plan.
The court said the ECB should have discussed a number of factors on how QE may have affected a wide swath of the economy, including shareholders, renters and insurance buyers. Reviewing those issues, and the proportionality of QE, would bring the program into compliance with EU law.
The Court found that the Federal Government and the German Bundestag violated the complainants’ rights under Art. 38(1) first sentence in conjunction with Art. 20(1) and (2), and Art. 79(3) of the Basic Law (Grundgesetz – GG) by failing to take steps challenging that the ECB, in its decisions on the adoption and implementation of the PSPP, neither assessed nor substantiated that the measures provided for in these decisions satisfy the principle of proportionality," a press release read from the court.
"The Bundesbank may thus no longer participate in the implementation and execution of the ECB decisions at issue, unless the ECB Governing Council adopts a new decision that demonstrates...the PSPP are not disproportionate to the economic and fiscal policy effects," the judges said.
Regular readers might recall that just a few weeks ago, the same red robed justices struck down the European court of patents as being fundamentally incompatible with the German "basic law" or constitution. But in reading this decision, at least as Zero Hedge is reporting it, one has to wonder: are the justices concerned more for the fact that the European Central Bank is not acting in accordance with EU treaties, or rather, more concerned that the German government acting outside the competence and jurisdiction of the German constitution, or Grundgesetz? Are they trying to chart some "middle way"? Or backing off from their earlier ruling regarding the European Patent Court and tacking toward the EU?
Lacking any further facts, I do entertain a suspicion here, and that is, read in the context of its earlier decision regarding the European patent court, that this decision is of a piece. What the Kardinals of Karlsruhe seem to be saying is: Look, the EU and its institutions, in this case, the European Central Bank, are not even abiding by the very treaties that established them, and hence, besides that, the German government, in going along with it, are also acting unconstitutionally. In other words, the way I am interpreting this is that far from tacking back toward the EU, this decision is a double punch both to the EU and to Mad Madam Merkel's government.
And that translates to "something is up in Karlsruhe." Perhaps they took the additives out of the water and are not eating GMOs, and as a result, are able to think for themselves. In any case, there's something else this action may signify, because it means there are groups in Germany bringing suits of this nature to the courts. And that means that some in Germany are getting fed up with the EU. Perhaps it's fitting that the decision comes down at this time frame, for today marks the 75th anniversary of the (second) surrender of the German armed forces to the Allies and Soviets, ending the Second World War in Europe.
Meanwhile, further south, other kinds of cardinals are raising some potent objections to Pope Marxist the First, who, following the Pauline dictum a little too far, appears to be trying to be all things to all people, except a Roman Catholic Pope to Roman Catholics...
See you on the flip side...