Skip to comments.Is Germany using its jackboot, like Bismarck?
Posted on 11/27/2011 10:33:05 PM PST by Olog-hai
After 1873 and 1929 we had dreadful depressions. It seems that we are going to have one now. What is worrying is that Germany seems to be using deflation for political ends, as it did between 1930 and 1932. People dont know exactly why Germany has chosen the present period in which to eliminate its budget deficit but it is making it almost impossible for the weaker eurozone countries to grow their economies, while eliminating their debts. One also has to ask why Germany lent money so wantonly to the PIGSPortugal, Italy, Greece and Spainonly to transform them into pariah states?
The European Union is regarded as weak today and has asked the whole world to help it with its problems. Yet on the face of it, it does not seem so poor. It has, as a whole, less debt than America. Italy, which is regarded as the next basket case after Greece, has 2450 tons of gold and is the worlds 6th biggest industrial economy; France, which is being made to pay more for loans, is the worlds fifth wealthiest, while Germany is even more powerful. If Germany was not set on deflating in its own economy, it could give other eurozone states the chance to grow and sort out the debts, which were incurred, in part, because of its reckless lending. The very least that it could do is to abandon its plan to eliminate its fiscal deficit by 2015. Otherwise it will look as though it wants shove the jackboot in, to pay off old scores and dominate, not unify, Europe.
(Excerpt) Read more at europeanfoundation.org ...
So in short, it is Germany’s fault that they lent money to their neighbors and that they don’t spend themselves into oblivion like their neighbors...
So now if Germany doesn’t play ball the way its neighbors see fit then Germany is using a “jackboot” on them...
Germany’s big mistake was joining the Euro.
I hereby invoke Godwin’s law.
It was much easier for Bismarck to whip the four kingdoms, six grand duchies, five duchies, seven principalities, and three republics, each with its own constitution and representative system, into a fiscal union than (Chancellor) Merkel and President Sarkozy with the eurozone, because of his success in battle.History repeating itself twice after the first debacle. Talk about not learning from history!
Germans indulged in a huge stock-market spending spree after their victory over France, sparking an investment flurry everywhere. Then, flush with French gold from the spoils of war, Bismarck decided to raise interest rates, cease minting silver, and to institute the popularly named Goldmark only two years after unification. This caused the international value of silver to plummet. Money became scarce and the Vienna stock exchange collapsed, followed by Berlin and Wall Street. Austrians would rant against the unwise expansion, insolvency and dishonest manipulation of the Vienna stock exchange for years.
In the aftermath of the 1873 stock exchange debacle, Germany and the whole of the western world suffered a long depression. Yet Bismarck realized that the foundation of Germanys success would be a strong economy and he was prepared to help to enable it to succeed. Although the private German banks lost their power after 1870, and many small banks collapsed, the newly founded Deutsche Bank emerged from the stock market crash unscathed and soon became the right-arm of industry. Smiled upon by government, the years of depression eventually produced the triumph of German big industry on world markets, under Prussian dominance.
The 1929 crash bore marked similarity with the 1873 crash in that it was associated with the return to the Gold Standard, huge capital flows from Europe to America, and rising interest rates. In addition there was a political dimension, when insiders who had put their trust in Germany suddenly became aware that they had been deceived. In the crashs aftermath, there was a deep depression.
There was no spending spree in Germany after the euro arrived. As German wages stagnated, or were lowered, Germans invested their money abroad. Indeed, Britains former Prime Minister, Gordon Brown, asserted in his International Herald Tribune article, on 21st August 2011, that the German banks were supplying the drinks for the stock market boom in America and Southern Europe. Naturally, others joined in the party. Indeed, it seemed as though the world was awash with cash. Eventually, however, the European Central Bank started to raise interest rates. Then the ECB, egged on by the Bundesbank, raised them yet again, first to eradicate internal, then external inflation. Commodities tumbled worldwide, European money deserted Wall Street and Lehman Brothers collapsed. Many, many books have since been written by the bankers, lamenting their foolishness and greed.
Not originally. The focus was on Portugal, Ireland, Greece and Spain (not Italy at first); and I as a descendant of one of those countries find it a bigoted slur (akin to the "apes and pigs" against Jews found in the Koran).
and it is PIIGS fwiw
If it will make you feel better, it is now Figs!
Portugal, Hungary, Ireland, Italy, Greece and Spain = PHIIGGS.
The Golden Rule: He who has the gold makes the rules.
The European, and the American citizenry became lazy, now we all are most likely toast.
No. The Euro was designed by France specifically to blunt Germany's economic power. With the collapse of the Soviet Union, the prospect of the Eastern European countries joining the EU and allying themselves economically with Germany promised to reduce French influence.
The Euro was the supposed answer as it would do away with the hated Deutchmark -- the symbol of German influence and the standard by which the other EU countries were judged (usually poorly). Germans almost universally opposed the Euro project, but went along after threats from the EU that they would sabotage the reunification of East and West Germany.
Economic laws, however, can only be ignored for so long. Germany's economic strength is the result of relatively [to the rest of Europe] stable internal monetary policies and the Germans' relatively [to the rest of Europe] strong work ethic. The Deutchmark was only the result of those. The French typically mistook the effect for the cause.
The Euro was a terrible blunder, but what else would you expect from the French.
For years I thought the whole Euro deal was a back door way for Germany, with its big economy, to become the honcho of all Europe.
As it is turning out Germany is to the rest of Europe what China is the the U.S.A., A bank from which to borrow money.
With little chance of paying it back.
There’s a lot of hating toward Germany because Chancellor Angela Merkel won’t open Germany’s vault and give free money to the failing socialist countries in Europe.
Merkel embraces Western values, calling leftist multiculturalism “a failed philosophy.” She apperared before a youth conference and said Europe must embrace Christianity because “It’s who we are.”
Many Americans don’t know who Merkel is. She’s quite a woman, and probably exactly what Europe needs at this time and place. Her approval rate in Germany is above 70%.
If Germany would just pony up the money to prop up the PIIGS, then all would be happy! But the nasty Germans demand concessions with the loans, like the Greeks actually getting their spending under control, so they are evil.
This whole thing is the welfare trap being played out on an international scale.
I do find it interesting that suddenly the economic crisis has become racial. Personally, the sane thing would be for the EU to either dump the countries in trouble, or Germany, France and the UK leave.
It would give everyone a lot more freedom in handling the crisis.
Well 70 percent is expected as she looks out for Germany first, not marxism like obammy does.
Hell Dave, were I some worthless Greek govewrnment socialcrat close to retirement age there (what 58) I’d be mad as hell that the gravey train was coming to a halt too.
Fighting mad, specially if I were use to NOT working.
Then why is it a copy of the Deutsche Mark, and the European Central Bank a copy of the Bundesbank and located on German soil? Why was it not patterned after the Franc, and the ECB patterned after Banque de France and then placed on French soil?
The Euro was designed by France specifically to blunt Germany's economic power. With the collapse of the Soviet Union, the prospect of the Eastern European countries joining the EU and allying themselves economically with Germany promised to reduce French influence
I see another one that fell for the propaganda. Read the article again. Germany has a social market economy, not a free market economy.
Economic laws, however, can only be ignored for so long. Germany's economic strength is the result of relatively [to the rest of Europe] stable internal monetary policies and the Germans' relatively [to the rest of Europe] strong work ethic
“Fighting mad, specially if I were use to NOT working.”
That’s a big problem right there for the socialist weenies, Joe. Fighting is hard work, real hard work. I’d guess the poodles wouldn’t be fighting for long (2 weeks max?), after they realized that fighting is work. After two weeks in the trenches, they’d go on strike, want more money, demand shorter hours and five weeks of vacation.
Socialists work only when their Nazi and Communist slavemasters stand over them with a whip.
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