What's up with Germany? German Chancellor Angela Merkel continues to pose tough on handing more money to Greece, but manages to vote for every bailout that is proposed by the eurozone.
The German people are against more bailouts, yet, just today, Germany's parliament approved reforms to the European Financial Stability Facility that would allow the fund to participate in the primary market and to recapitalize European banks.
Clearly, the people of Germany are leaning one way and the political leaders another, and so the bailouts get approved.
However, we shouldn't discount Philippa Malmgren's report that the German's are printing up marks and plan on re-introducing that currency. It may not happen this week, but even German officials realize that the bailout of the PIIGS can't go on forever without serious inflationary consequences.
The German people are against more bailouts, yet, just today, Germany's parliament approved reforms to the European Financial Stability Facility that would allow the fund to participate in the primary market and to recapitalize European banks.
Clearly, the people of Germany are leaning one way and the political leaders another, and so the bailouts get approved.
However, we shouldn't discount Philippa Malmgren's report that the German's are printing up marks and plan on re-introducing that currency. It may not happen this week, but even German officials realize that the bailout of the PIIGS can't go on forever without serious inflationary consequences.
The printing up of the marks, if indeed it is occurring, may be a sign that German political leaders have not gone completely EuroZone insane and that they know that things may get so bad that they may have to ignore bankster pressures and go it alone at some point in the not too distant future.
They're just being typical politicians... say what the people want to hear so they can get votes in the next election and vote the way the elite money powers want them to so they can get funding for the campaign.
ReplyDeleteDid you get the number of any of those DeLaRue girls?
ReplyDeleteI think this vote for the German politicians is similar to the one raising our debt ceiling. You know that voting in favor will most likely continue your country on the path to ruin but not voting for it means suffering immediate consequences that most likely will lead the public to force the politicians to reconsider their vote. In the end the Politician loses their job for being reckless in the public's mind and the country ends up staying on the path to ruin.
ReplyDeleteAs a business financial consultant for 30years we see this all the time where a company destroys their capital structure to the point that there is no way to fix it. The interesting thing is that when the point of no return is crossed, it is usually long before the actual failure. The US, EU and Japan crossed that line long ago. Like the company with the destroyed capital structure, the only option left is to further destroy the capital structure to survive.
I've been suggesting that Germany leave the EZ for 2 years now. I was ridiculed then for the idea, but I think I'll end up with the last laugh.
ReplyDeleteSounds a lot like the US:
ReplyDeleteCitizens don't want to continue fighting wars of occupation in Iraq and Afghanistan, but government continues fighting wars of occupation in Iraq and Afghanistan, and expands wars to Lybia, Syria, Yemen, and Pakistan.
Citizens don't want to bailout failed businesses, but government continues to shovel money to banks, auto manufacturers, and solar research companies.
Government agents will continue get away with whatever they can get away with, even if it's completely contrary to the wants of the people ruled by that government.
It's not a bug; it's a feature.
I'll believe it when I see it (German Marks).
ReplyDeleteIn my opinion, if Germany is printing Marks, it is only as a plan B (i.e. if the German people get pissed-off enough). Otherwise, I see German politicians doing the same thing that all politicians do- live high on the hog and dictate funds to their friends/associates.