Germany Lashes Out, Accuses US Of Hypocrisy

Tyler Durden's picture

There are those (such as the entire world) who have in recent months ganged up on Germany, see "In The Case Of The World Vs Merkel, The Broke Prosecution Proposes Eurobonds Lite", and are now openly demanding that the German population shoulder even more of the broke continent's bailout costs, and not only that but implicitly foot the lowering of the French retirement age from 62 to 60. Nowhere is there any discussion of how Germany should go about achieving this: by raising its own retirement age to 100 maybe? Nor is there any discussion that Germany is now very actively engaged in bailing out Europe one day at a time to the tune of €2 billion each 24 hours via TARGET 2. Well, it was only a matter of time before Germany, having long kept radio silence, lashed out at its accusers. Spiegel summarizes: "Merkel was certainly in the hot seat, once again, as many nations pressed her to do more for the euro -- at a time when many Germans feel their country has already done too much." And finally the instigator of it all, TurboTaxCheat Tim Geithner, gets exposed: "It is rather hypocritical when the Americans and the British, whose own mountains of debt have reached a high point, try to lecture the Europeans. One number is sufficient to reveal what a bad tactic this is. At a time when the budget deficits of the US and Great Britain are about 8 percent, the euro-zone members have almost managed to bring their deficits as a whole down to 3 percent." And they are spot on: Europe may be going through a painful time but at least it is doing something to address its problems. America continues to rely on one simple, and very much transitory thing: reserve status. Newsflash: reserve status ends. And when it does: run.

From Spiegel:

'The US Is Hypocritical when It Lectures Europe'

The closing group photos from the G-20 meeting in Mexico show the world's top leaders smiling in a show of unity. But German observers say the happy family shots belie the serious problems the world economy faces -- and the mudslinging that went on during the summit.

It's another wait-and-see game for the euro, as world leaders wait for euro leaders -- in particular German Chancellor Angela Merkel -- to come up with further proposals to shore up the common currency. Though there are lots of other economic problems in the world -- including the expanding US debt and trade barriers that have yet to fall -- the leaders of the industrialized world and key developing countries managed to concentrate nearly exclusively on the euro crisis during the G-20 summit at the Mexican resort of Los Cabos.

Merkel was certainly in the hot seat, once again, as many nations pressed her to do more for the euro -- at a time when many Germans feel their country has already done too much.

European leaders were also annoyed that their problems consistently grab the headlines, while many other countries have equally serious issues to deal with. They were quick to point out the financial crisis did not start in Europe, but in the United States.

But in the end, the leaders attempted to gloss over their differences, praising Merkel for her efforts as the two-day conference ended on an upbeat tone. Now Merkel's partners -- and the markets -- are waiting for the EU summit at the end of this month to see what else is in store to save the common currency.

On Wednesday, German commentators defended the country against foreign critics but also argued that little or no progress was made at the G-20 summit. They say such gatherings are not conducive to serious political debate, which is sorely needed these days.

The center-left Süddeutsche Zeitung writes:

"The euro crisis, which has a large destructive potential for the world economy, was reduced to a hiccup-sized problem in the summit declaration -- for one simple reason: When it comes to economics alone, the Americans, the Chinese, the Japanese and the Brazilians are all mired in their own problems. This creates a situation in which one country is always the sinner and the others only get a mild rebuke for their own misdeeds."

"The G-20 is actually the appropriate group in which to speak openly about major global problems. But now the summit has become so ritualized that it looks less like a serious discussion and more like a school classroom in which the children read their homework out to each other."

Financial daily Handelsblatt writes:

"It is rather hypocritical when the Americans and the British, whose own mountains of debt have reached a high point, try to lecture the Europeans. One number is sufficient to reveal what a bad tactic this is. At a time when the budget deficits of the US and Great Britain are about 8 percent, the euro-zone members have almost managed to bring their deficits as a whole down to 3 percent.

"Was Los Cabos for Angela Merkel all talk and no action? The G-20 cannot fulfill its proclaimed goal, made when the organization was founded, of being a world economic government. And that's a good thing, because we in Europe cannot reach agreement on a single joint approach. Still, the forum is important because it gives the chancellor and the other Europeans a beneficial reality check."

The center-right Frankfurter Allgemeine Zeitung writes:

"Despite a lot of dramatic words, the G-20 countries have for the time being postponed the rescue of the global economy. A few days before the next EU summit, the group of industrialized countries and developing nations have to powerlessly wait for what the Europeans will come up with now to save the euro."

"The G-20 is only as strong as the will of its members to work together cooperatively. That goes for the United States, which is resisting pressure to sort out its finances. That goes for the Europeans who, in the third year of their debt crisis, have still not convinced the financial markets that the euro in its current constellation can survive."

"The differences over the path to growth -- in America it's about demand, in Europe it's more supply side -- will immediately resurface if the Europeans, in the view of the Americans, don't deliver quickly."

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GetZeeGold's picture what's your point?

HelluvaEngineer's picture

If there's one thing I've learned from the teevee, it's that bad things only happen to dark people.

iinthesky's picture

The makers of Hawaiian Tropic and Panama Jack are not going to like that!

Arthor Bearing's picture

...and that it's the responsiblity of lighter-skinned people to ignore what's good for themselves in order to help dark people overcome their problems... unless those dark people are god-forsaken muslims.

Bansters-in-my- feces's picture

Whats an Engineer doing watching "teevee.?

I thought you's were smarter than that.

Gief Gold Plox's picture

Atleast wait for the FOMC statement release and get it at discount price when all the algos start shorting PMs again.

fonzannoon's picture

you may want to wait a few minutes.

DeadFred's picture

Hypocricy, who would have thought it.

Stuck on Zero's picture

It's a good chance for Obama to call Germany's bluff.  Offer to bail out Europe in exchange for the elimination of trade barriers.  That would really hang their feet to the fire.


VonManstein's picture

Damn fucking right. US/UK playing this against EU to save their own skin..

All these pathetic rating agencies, even the so called "crecible" egan jones arnt touching the US. This is pure financial warfare we are witnessing.

USUK trying to force some printing from EU so they dont have too but USUK are the ones in most need of it.. Dirty fucknig crack heads

VonManstein's picture

Good man. Thanks for sharind that, I wasnt aware.

still not good enough.


gjp's picture

+1 nothing sickens me more than the Anglo-saxon financial fascists lecturing Europe.  And it's been going on for more than two years now!

Please, break up the Euro already, so we can get the spotlight on the real problem, the elephant in the room, the belly of the beast.  The bullshit, worthless, hideously abused reserve currency US dollar.

USUK is a great counter to the PIIGS acronym.  Hadn't seen it put that way before.

smb12321's picture

But why the anger?  I can understand the frustration but why get all worked up over something we know is certain?  The dollar will be the last fiat currency around (and it will be VERY strong) before the collapse.  Perception, inertia, tradition and the sheer mechanics of the dollar as the world currency are a tremendous shield to our enormous problems.

The US (and Japan) will continue leading the world in research, patents and inventions giving the other nations use of our R&D financed by evil profits.  

smb12321's picture

I agree with your thrust if not your tone. (It's too much effort to stay mad 24/7 over a longterm financial mess).   The game - global economics has devolved into a system of manipulating debt and (more importantly) value.   All god's chillin know that the PIIGS and producers will not use the same euro.  Germany & Co. (Finand, Holland, Estonia, Austria, etc) will eventually use a different euro. Ironically, the nature of the social welfare state demands that they debase the currency in order to counter the rapidly dwindling number of workers supporting an increasing number of retirees.

q99x2's picture

'The center-right Frankfurter'

Country's run by hotdogs.


caimen garou's picture

no,the US cant be hypocrites, maybe a little manipulative but cant imagine, hypocrites?

GMadScientist's picture

NW-Oh no Mr. Bill.

Boilermaker's picture

Germany:  The gold standard for morality and ethics**

**last 100 years excluded.  Not for sale in Connecticut, Utah, or Idaho.  Shipping and Handling extra.

GMadScientist's picture

I believe it's spelled 'Eugenics'.

Boilermaker's picture

Well, whoever owns common shares in the company that makes those oversize calipers to measure cranium girth is going to be RICH!

Anthropometry is making a comeback baby!

Nussi34's picture

ClubMed: The pit for corrupt & lazy people

Nussi34's picture

ClubMed: The pit for corrupt & lazy people

mpyre's picture

USSA...Gold standard for morality and ethics last 200 years...Indian slaughter, slavery, home of war financiers, millions slaughterd in their own homelands through our misguided foreign policy...and we have been a democracy all those years, unlike others stained with the same crimes...

Dr. Engali's picture

The U.S. has the world by the nuts. The world has so much of our debt that Ben will print them into oblivion if they don't keep funding our iPads , welfare of all types, and wars.

Snidley Whipsnae's picture

The world has only ~ $7 Trillion... peanuts compared to the deveritives mkt...

Let them eat cake.

Got PMs?

LawsofPhysics's picture

Unless the rest of the world presents a united front, you are correct.  The rest of the world will, in essence, fund it's own destruction.  Such is the way with empires that have grown militarily powerful and long since abandoned the rule of law and common sense.

bdc63's picture

that's laughable.  the US does not have the world by the nuts ... over the past 5 years, everybody has been dumping our debt.  The FED is the big buyer now.  And any nation that is still buying debt has probably negotiated some pretty favorable terms (like 'backed by gold').

less than one decade after we loose 'reserve currency status' we are third world, in every freak'in way imaginable.

LawsofPhysics's picture

Already there.  None of this is about money or paper, never has been.  So the world dumps our paper for their own paper (if you really think that the PBoC isn't printing then you are an idiot).  It is still fucking paper.  This is all about power and control of commodities, always has been.

iinthesky's picture

Don't leave out population reduction.

LawsofPhysics's picture

World population is still growing exponentially, just like world debt, conincidence?

Herd Redirection Committee's picture

For me a 3rd world country is identified by cronyism (the politically connected are most well off), corruption, and two sets of rules, one for those with tonnes of money, and another for the rest.

By that simple guideline America is already 3rd world.

Dr. Engali's picture

While it's true the fed is the largest buyer of long dated treasuries it doesn't mean the rest of the world isn't buying. The world hasn't reduced their holdings by any significant amount, they have been reducing duration however. China has been given direct access to the auctions bypassing the primary dealers. My suspicion is that by the increased volume of direct bidders we will see China has added treasuries to their balance sheet.
Even if the fed were the only game in town Ben could still print them into oblivion.

GMadScientist's picture

Dependent on reserve currency status (which is inversely proportional to Ben printing anything into oblivion).

Element's picture

Only Merkel has the status and cred to say something like that and have it stick.

Boilermaker's picture

So much 'cred' that she's going to be defeated in the election by a landslide.

Element's picture

Maybe so, understandably so, but imagine if Barosso had said it, everyone would just turn around and kick him in the nuts.

That's what I mean.

Herd Redirection Committee's picture

They're just afraid of her because she doesn't have nuts (I don't think) and is former STASI.

GeneMarchbanks's picture

"It is rather hypocritical when the Americans and the British, whose own mountains of debt have reached a high point, try to lecture the Europeans. One number is sufficient to reveal what a bad tactic this is. At a time when the budget deficits of the US and Great Britain are about 8 percent, the euro-zone members have almost managed to bring their deficits as a whole down to 3 percent."

How in the world is this possible? We need more stories about Greek troubles obviously. CNN, BBC, CNBC, Bloomburg get to it, chop chop.

falak pema's picture

When Oligarchs fall out the night of long knives is not far away....

WhyDoesItHurtWhen iPee's picture

+1 good call.  Someone(s) will get retired/replaced/redacted at this historical time.

old naughty's picture

are they falling out?

Didn't someone here say they're way ahead of us?

What if Germany is asked (eh, told) to join Russia and China to start a new reserve currency (backed by gold, maybe/maybe not)?

Oh, should we go with the chart indicated US still have time to match up to Spain-France-UK (4get Netherlands and Portugal, too small)?



smb12321's picture

 No one in their right mind would enter a relationship dependent upon Russia.  Due to rapidly declining population, it will be smaller than Turkey in 30 years yet defending a land mass 20 time bigger. Big changes are waiting in the wings.  

The real reason Germany wouldn't do anything so foolish is that she has seen the results of sharing a currency with others who are not financially prudent. She would be dependent upon the word of Russia & China for financial accountability and no one with an atom of sense would trust their currency to those guys.

francis_sawyer's picture

So ~ when they lashed out, did a lightning bolt strike along with a horse whinnying in the background?

Dr. Engali's picture

More like crickets with the occasional croak of a frog.