By now everyone is aware that the G20 meeting failed to come to a consensus vis-a-vis strategic rescue approaches on the global bailout, with Tim Geithner pushing for uber-Keynesianism, while a far more prudent Europe saying enough to record deficits, and in essence potentially putting the end to the avalanche of endless bailouts and the Bernanke Uber-Put. At least such is the case until tomorrow when Europe's bureaucrats wake up and see a EURUSD at a level that rounds down to 1.10. The reason: Der Spiegel reports that Germany's high court is considering blocking Germany's participation in the European rescue package, a development which if it were to come to pass, would send the euro plunging to parity not with the dollar but with zero.

Translated from German:

The Federal Constitutional Court, order against the euro rescue to adopt an interim measure. This would allow the court provisionally prohibit the federal government to guarantee loans to enable the German. Against the rescue package are constitutional complaints against several.



The President of the Constitutional Court, Andreas Vosskuhle had to Gauweiler complaint, according to information of the SPIEGEL explicitly asked for opinions of different jobs: He led them to the Federal Government, the Bundestag, the Federal President, all state governments, the European Central Bank and the German Bundesbank and asked for feedback. It is Vosskule a request for interim relief, the Gauweiler associated with its application has. Gauweiler has brought in Karlsruhe already against the Treaty of Lisbon complaint. Disturb him, "that is further given unchecked power to EU bodies.

The German government warned that an interim order could lead to a "self-fulfilling expectation of default" by Europe's troubled states. As readers will recall, all it takes is for a country sovereign debt spread to to widen to 5% over Bunds, for them to have an "out" from the EU rescue package, a loophole most will surely take advantage of eagerly as soon as the market processes this latest development. All in all, another week of pain for Europe approaches, and of even greater pain for the US manufacturing sector, which paradoxically was the only one to materially add new jobs in the latest NFP report.