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Angela Merkel leads a chorus of German voices in rejecting any thought of softening austerity in...
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Monday, May 7, 2012, 11:40 AM ETAngela Merkel leads a chorus of German voices in rejecting any thought of softening austerity in the eurozone despite the election results in France and Greece. Instead, Germany reckons Francois Hollande will soon have to backtrack on his pledges and kowtow to the status quo. "Germany is not here to finance French election promises," growls one Merkel ally.
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So what happens if Germany decides to leave, like the rich French and Greeks that leave when 100% of their incomes finally get taxed away. Now, the powerhouse that gave the Euro value is gone, and all that's left are the looters.
Will Europe go to war with Germany for trying to secede? Ironic that East Germany once built walls to keep people in too. Imagine if the US has to go back to Europe for another war, but this time we have to defend Germany?
I don't expect it to happen, but the US would only go to war in Europe to protect its banks. Where are US banks most heavily invested or at risk? That's whose side the US will be on.
Go with the US method of going back a little further in time, to the Weimar Republic and its inflationary policies?
What the Germans need to do, as demonstrated by their re-unification with E. Germany is allow alot more Greeks and Spaniards and Italians to move into Germany and begin working there.
I trust the markets and the bond market is telling us that US can borrow more than what we currently borrow at the lowest costs that we have seen in decades. This market tells us that the probability of US default is essentially zero. The market tells us that we borrow less than we can support. Are you smarter than the bond market?
I know the market direction will change when the investing environment changes. Have you forgotten how quickly things can change?
(a) it places a high priority to maintaining its close relationship with France as a core policy to Germany’s place in Europe and within the EU, and
(b) it is not opposed, in principal, to a properly crafted economic growth strategy for the EU as a supplemental but very important aspect of EU efforts to surmount the current economic and fiscal crises.
Further, there are clear indications within the German Political Parties, even the free market Free Democrats, that bare and deep austerity may be contrary to Germany’s interests both domestically and within Europe. The following recent articles and commentaries from the German press illustrate my point.
http://bit.ly/IxjQsg
http://bit.ly/IT11om
http://bit.ly/IzhWrb
http://bit.ly/IzhVDQ
This is not to say that many significant German political figures do not continue oppose broadening this focus beyond austerity and fiscal rectitude or that it will be easy for Hollande and Merkel to devise in league with the leaders of the other EU States the sort of practical broadening to which I refer. I’m only saying that it would be simplistic and short sighted to assume that Merkel will simply face down Hollande and that Hollande is bound to blink – this is not the nature of the give and take process under way.
EU loves to play Monopoly, but somehow Germany always gets to be "the central bank", I think we have all seen this syndrome unfold.
Also, like those who cheat while playing, Germany pays it's debts not from it's own money, but rather from the bank's money, ensuring victory every time, nu?
As Mr. Hollande said, "Germany cannot decide for the whole of Europe." This is exactly what has been happening for the last ten (10) years, and the world stands by and lets it happen.
France / Spain / Italy Alliance would be far better for the EU, (far more profitable) than the draconian austerity measures being force fed to the periphery. This needs to be driven home into the German political psyche, so they will put away this demented, and misguided ideology of European domination. Most Economists agree that this austerity is killing the EU, and we will very likely see a break up of the Eurozone, we hope at least.
With nine (9) Trillion Euros in Debt accounting for 75% of EU's Total Debt, (and a balance sheet that rivals that of Japan : Germany at 185% and Japan at 210% Debt/GDP), Germany is the last country that should be doling out advice of ANY kind, especially not financial.
Germany is still an "occupied" country under Nato Treaty, there is a reason this has been reviewed and renewed regularly: protection from Uncle Sam, part of the USG Budget, how sick is that?
For the naysayers:
Keep defending Germany, as long as they remain friendly with Iran, N. Korea, China, & Russia, their name will remain on a list. Civil unrest is expected and planned for as part of the latest US Security Policy; Region: Central Europe
*Remember their act of defiance on the Libyan Embargo, siding with their aforementioned partners in crime, against the UN Security Council?
Fr. Merkel says renegotiation of the fiscal pact isn't possible?
Who died and gave her (Merkel) the keys to Europe?
Germany attempts to change / block / alter ANY EU policy which doesn't suit them, c'mon people these are facts, quit closing your eyes on this.
Only through Germany's occupation by the US, have they been protected this long. Without the US protection, Putin would have marched in and set up shop in 30 mins.
Pretty tough talk coming from a country (Germany) who can't defend themselves (or pay for it), yet enjoy the economic freedoms as a direct result, and on the dime of US Taxpayers, know that.
Not Germany bashing, it's simply a message that US Taxpayers need to send to Germany. That message, "no more", pay for yourselves, hire a new babysitter, we're outta here, peace!"
There used to be a word for that...........
Ah,............ UNGREATFUL.
US needs to cut ties with "Doucheland" and let them fend for themselves.
Let China & Russia fight it out.
Vielen dank, wieder mal.
I appreciate these insights and the world is too large for me to keep up on all the stuff that's going on all over. It's nice to have a "Section Chief" who can fill in the gaps with real time understanding.
Just waiting for that call from Charlie Rose!
Ian Bremmer is here in London, we have an event at Chatham House this evening. Brilliant guy.
We all want to dominate the certain areas, and for some the world.
I think the biggest issues are social programs, and central banks. Take the Federal Reserve for example, they get money out of thin air to buy bonds issued by the US government, which we the taxpayers pay interest on. So the people who used NO MONEY to buy bonds get to collect the interest every month (or whenever), and then get paid back when the bond matures.
We all want something for nothing, I'm beginning to think that's just nature. Social programs are created under the disguise of "helping," but the reality is that the masses just become complaisant. Then, when the government can no longer afford to keep those programs going the masses begin to revolt, feeling they are "entitled" to those benefits.
What happened to the idea that we are each responsible for ourselves? It's time we stood up again, and told those that have relied on these social programs that the time is quickly coming when you will have to be responsible for your own welfare. I hate to say it but our current path, every country in the world, is unsustainable. There must be a better way.
Nothing on the planet is perfect, but in my mind a TRUE free market is the only path. (the US is NOT a true free market) We would stop wasting so much time, in the grand scheme of the universe, our time here is so short.
It appears that the countries that have major problems have major social programs, and the rest, well they seem to be managing the best they can...
Maybe instead of war, the EU takes the US down with it, and in its place the new world currency will emerge (possibly digitally based). Since it appears China is building up a reserve to attempt to make a run at the reserve currency, it would seem logical that we need critical mass to achieve control in the next major monetary shift.
If we combine all the gold, or even just said it was backed by nothing (since the EU and US collectively could kick everyones a$$ combine {maybe, china does have a billion mind controlled ants}), then the new currency will be the reserve. Most likely many other countries will jump onboard, with the control over the middle east regions and spreading east, it will be a fairly easy process. China and Russia seem to be the only possible major opponents (aside from Korea etc.) that could not adopt the currency, but it really wouldn't matter. A one world currency could exist without them and several others.
Just seems that since the beginning of time some people have been several steps ahead. I think there are some who knew this was going to happen. They probably rigged the whole thing. We are merely slaves, but the true masters have yet to reveal their face. For now we will have to look at Mr. B and our governments, but I don't think they are the real decision makers.
Contrary to German news reports, Mr. Hollande is not a Communist, but rather a Socialist. HUGE difference.
Why Germany is so scared of this we cannot understand, Fr. Merkel is also a Socialist (DDR) born and raised, so what's the stress about? More failed propaganda to sew confusion among the elderly, OR (the majority of voters).
Her party affiliation is immaterial, Fr. Merkel was a member of the official, socialist-led youth movement Free German Youth (FDJ).
She never raised her hand and said, "I can't live this way, just shoot me now." But rather, as a matter of fact, she went on to became a member of the District Board and Secretary for "Agitprop" (agitation and propaganda), at the Academy of Sciences.....!
Not something you do to take a stance "AGAINST" Socialism, or?
So......, I think we have now established a few supporting facts as to the true agenda of Fr. Merkel.That ideology comes SCREAMING OUT in her stance on everything, follow any speech of hers.
Germany's predatory regulatory procedures, and corruption are now coming under the microscope in the mainstream media.
You will see this daily now, they can no longer hide the corpse.
Greece. To the new elected president I will say, you have a good chance to be the new vice president of the United States.