Guest Post: Open Letter To Chancellor Merkel: Repeal The Financial Aid Laws To Save Germany
Submitted by Toni Straka at The Prudent Investor
Open Letter to Chancellor Merkel: Repeal The Financial Aid Laws To Save Germany
Renowned German economist Professor Wilhelm Hankel has written a second open letter to German Federal Chancellor Angela Merkel after his first plea to follow the dictates of reason and not introduce the constutionally disputed financial aid laws that will pump €750 billion into insolvent Eurozone banks while pushing Germany deeper into social and economic abyss was ignored.
Hankel has already warned in 2005 that the Euro system is unsustainable.
While I am still wondering to whom Germany will sell all the goods it
now produces (and warehouses) when all important trade partners face the
same economic and social problems, Hankel focuses on the adverse
effects the hastily pushed through financial aid laws for Greece - which
is already running into difficulties to comply with the austerity
conditions that are part of the bailout - will have on Germany in the
He warns of dire consequences and states that Merkel may run afoul of
the German constitution and her oath to stave off the German sovereign
from bad damage.
Poll: 98% Want a Public Referendum on Eurozone Aid
The letter, supported by such German academic capacities like Wilhelm
Nölling, Karl A. Schachtschneider and Joachim Starbatty has been
co-signed by 7,315 German citizens since August 18. His first letter was
co-signed by 6,128 sovereigns.
A poll on his website
asking whether there should be a public referendum on Eurozone aid
shows that 98% of voters are in favor of a direct democratic decision.
Honored Federal Chancellor,
you have not answered my first letter dated March 27, 2010. For this
reason I have to repeat my concerns as the problem approaching Germans
and Europeans has become worse meanwhile.
the "Greek Aid Law" from May 7, 2010, as well as the following
"Emergency Umbrella Law" from May 7, 2010, do not only constitute strong
offences against EU law, but also against our own German constitution.
know the situation due to the legal action introduced by 5 university
professors at the German constitutional court. Your assistants have
informed you of this as well.
This is a case of
breaking the law in the most severe way. This is even more dangerous
than the economic consequences. Europe is the homeland of states ruled
under the law. The Euro will not regain its former strength but it will
be relegated into a European soft currency.
countries close to a state default, especially the southern, but also
the western Eurozone, will neither get out of debt nor will it change
their past behaviour. After all the money of the rescue fund does not
flow to the states but to their insolvent banks. And the governments of
these countries will not fulfill the conditions coming with the rescue
funds, as doing so would endanger their political and economical
It is highly implausible when your
finance minister announces austerity packages while allocating 70% of
annual federal tax revenues for rescue packages whose failure is already
written on the wall.
Germany and the few other
still economically stable countries in the Eurozone are sinking money
into a barrel without a bottom. This money, that the German taxpayers
will have to come up with, will be lost for German citizens and their
future. By now you had to acknowledge that our country can neither
fulfill its social obligations, nor satisfy its promises to keep and
create jobs. I am confident you will live to see that this austerity
policy will lead to similar effects as we see them nowadays in Greece:
protesting people, burning cars, shattered windows and maybe still worse
actions. Can you account for this?
I appeal to
you to repeal these laws before the constitutional court will nullify
them. Your oath included "to fend off damage for the German people" -
with this you stand the chance to do so. The emergency umbrella from
Brussels will not save the common currency.
This is my and our public call to the German sovereign and to you. Realize it!
those who just came out of a coma: Germany is on the verge of burning
thanks to the hubris of a government that seems to be more interested to
keep a disintegrating Eurozone alive than comply with its social
obligations to the sovereign.
As all fiat currencies in the past 3 centuries the Euro is doomed to
failed and there is a growing chance it could fail before year's end.
This is all gonna end really, really bad. TV footage from Greece should
show those at the power levers that policy has to be designed for the
sovereign and not for the rescue of irresponsible bankers.
Unfortunately European politicians still draw a total blank in assessing the current economic situation, blogging Spain based economist Edward Hugh says in this post.