Friday 5 August 2011
Germany on verge of declaring War in Europe for a 3rd time
Low exchange rate and competitive position, thank you very much. Finds out Spain and Italy are in need of help, for the opposite reasons and Merkel stays on holiday, by all accounts having told the European Central Bank head to get knotted; which he helpfully told the market yesterday.
I can see why too, Trichet must be exasperated at the position. The Euro is a SINGLE CURRENCY for Europe and as such needs to be defended by ALL its members. Refusal to help out when the going gets tough is unacceptable. It is a betrayl of the European Union which Germany was the main driver of in the aftermath of the terrible World Wars of the 20th Century.
All of Italy, Spain, Greece, Portugal and Ireland are going for UK levels of austerity or worse, it is not as if they have not come up to their side of the bargain in the course of 2011.
So who has not? It is Germany (with small allies in Holland and Finalnd), unwilling to will the measures to make the currency whole. The only alternative is break-up and let's face it that is going to cause a global 1930's depression. All the big UK banks will go bust or need a bail-out - how can we afford that?
This is a crisis and only one actor has the power to stop it steamrollering forward, if they don't .......sigh.