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Guest Post: How Much To Save The Euro?

Tyler Durden's picture





 

Submitted by Geoffrey Wood

How Much To Save The Euro?

Germany keeps being told that it must pay up to save the euro. But how much can Germany pay? No-one seems to have thought about that, but there is already concern about the possible size of bill – German bond yields rose soon after news of the Spanish bail out, even before it was announced where the money was going to come from. (And it was of course a bail out for Spain, regardless of what Spain’s prime minister says. If I borrow money and then lend it to someone else I’ve still borrowed it.)

There is though a more basic question. How much does it make sense for Germany to pay? What sort of bill would it be reasonable to present to them? In fact the best approximation one can arrive at is a bill of zero.

Why zero? What about all these exports that have been produced because Germany has a currency whose value is determined not just by Germany but also by less productive, higher cost, economies?  That link has artificially depressed the prices of German exports. These net exports resulting from Germany’s Eurozone membership are actually the problem.

Germany has been exporting more goods and services than it has been importing. So non-German residents have been making net transfers of funds to Germany. If they can not earn these funds, and they did  not because if they had Germany would not have run a trade surplus, they must have borrowed them. A trade surplus being run by a country means, in other words, that it is a net lender to the rest of the world.

That is certainly not always bad. Often it is good for both borrower and lender. The classic, and one of the longest lasting and relative to national income one of the biggest examples of that is the lending by Britain to the United States that went on from just after 1870 to shortly before the First World War. That lending was beneficial to both sides. In the USA it was invested productively, developing and opening up the prairies. These were, and still are, among the most fertile agricultural land in the world. The investment helped to make the USA a major and very prosperous agricultural producer. And Britain meanwhile not only earned a higher return on capital than could be earned by investing at home (Britain was even then a mature developed economy) but saw a sustained fall in the cost of living as the cost of food fell due to the imports that started to flow from the USA.

Recent German investment has not all been like that. Some has been productive – motor car factories in Brazil, the Czech Republic, and Mexico, for example. But much of it has just been lending to enable governments and individuals to spend more than they have been earning. As is now clear, many of the recipients of these loans are unable to pay them back. So in contrast to the earlier British/US experience, where both sides gained, both sides have lost.

Another aspect of this appears if we think about what would have happened in Germany if net exports had been smaller. Workers and factories would not have simply sat around. More goods and services would have been produced for investment and for consumption inside Germany. By increased investment Germany would have become more productive, and because individuals in Germany could consume more they could have had a higher standard of living. These big exports have in effect been a subsidy from Germans to many of their trading partners.

That is not the end of the story, not the end of the bad news for Germany. What an economy produces can be roughly divided into two categories: goods that are traded internationally and goods that are not. These categories – tradable and non-tradable goods as they are termed – are not of course clear cut categories, but some goods are much more easily traded internationally than others. The depressed German exchange rate has shifted productive resources, labour in particular, from the non-traded to the tradable sector. These resources are more productive there only so long as the exchange rate stays at its current artificial level. When that changes, they will have to incur all the costs of moving back. And, of course, they have been employed producing goods for which in many cases Germany may never be paid.

This is actually the exact reverse of what is now facing Australia. Its exchange rate has been driven up by a mineral boom. Policy makers and voters there are now thinking about two issues. What is a reasonable distribution of the benefits of the strong currency? And what planning should there be to deal with the inevitable end of the boom?

In conclusion, then, it is clear that it is wrong to say that Germany has benefited because of the boost to its exports delivered by a depressed euro. There have been some benefits, for some of the associated overseas investment has been more productive than it would have been at home; but there have also been some costs. The net effect is immensely difficult to calculate, but there can be no doubt that claims that Germany has gained so Germany must pay are just wrong. Any attempt to put the burden of saving the euro on Germany has to be supported by other arguments. I have yet to see them.

 


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Wed, 06/27/2012 - 17:12 | Link to Comment TWSceptic
TWSceptic's picture

Germany foremost benefited from the reforms it did, strangely enough this is mostly ignored by those in the 'pay up' camp.

Wed, 06/27/2012 - 17:17 | Link to Comment BarreraNorman70
BarreraNorman70's picture

my friend's mother makes $82 every hour on the computer. She has been out of work for five months but last month her paycheck was $15988 just working on the computer for a few hours. Go to this web site and read more www.MakeCash.Com (just visit once and click home tab )

Wed, 06/27/2012 - 17:23 | Link to Comment OttoMBMP
OttoMBMP's picture

Research by Hans Werner Sinn (Ifo Institute in Munich) shows that Germany actually has been a big loser of the Euro.
This mainly due to a strong capital drain in favor of southern Europe.
Note that the share of German exports going to EMU countries has gone down since the inception of the Euro.

Wed, 06/27/2012 - 17:45 | Link to Comment Ghordius
Ghordius's picture

Otto, the UKUS Financial analysts have decided the Euro is doomed. It's over. Perhaps next year it will be eating babies. Meanwhile Germany is culpable. We don't know yet why, but "Ihr seid Schuld". Perhaps the tune changes next week or next year, we'll see...

Wed, 06/27/2012 - 17:50 | Link to Comment OttoMBMP
OttoMBMP's picture

Yep. If they spare us the carpet bombing this time.

Wed, 06/27/2012 - 22:39 | Link to Comment alex_g
alex_g's picture

you're actually bitching about WWII??

Thu, 06/28/2012 - 02:41 | Link to Comment Ghordius
Ghordius's picture

I don't know about Otto, I'm bitching about all this propaganda made by Financials. targeting people who have seen too many WWII movies and depicting German intentions as if we where moved back 70 years.

Meanwhile, Nick Clegg et al have understood that this stance is not going to help them. The FT is brimming with articles telling PM Cameron that he has to sit down with the EU Council and behave, i.e. bring some constructive proposals. The City of London made it clear to him that his ultra-arrogant-and-destructive stance last time is not helping them - it just tickles the tummies of his powerbase in the Torys that has this "the Euro must die" fetish.

Fear of being shut out of the eurozone made the Square Mile think. There might be some progress, thanks to that...

Wed, 06/27/2012 - 19:42 | Link to Comment agent default
agent default's picture

Germany enacted pretty hard austerity measures after the dotcom bubble burst.  At the same time all the other Eurozone countries started borrowing ans spending like mad, on non productive projects and social policies.  And now it is Germany's fault.  Germany should tell them to get lost and get out of the Euro.  Let's see how much the Euro and the Eurobonds are worth without evil Germany.

Wed, 06/27/2012 - 17:27 | Link to Comment TraitorsHang
TraitorsHang's picture

I'm sorry, I have to be promised at least $16632 per paycheck before I click a spam link.

Also, your figures imply that your mother worked 195 hours last month.

Utter fail.

Wed, 06/27/2012 - 18:01 | Link to Comment bdc63
bdc63's picture

... ? ... why would you even bother doing the math ...

Wed, 06/27/2012 - 18:44 | Link to Comment CaptainObvious
CaptainObvious's picture

Because it's fun, like baiting a Nigerian scammer.

Thu, 06/28/2012 - 03:46 | Link to Comment lewy14
lewy14's picture

And a compulsion. And I mean that in a good way. Weird thing is, I'm thinking, damn, I didn't do the math... didn't catch that... getting soft... Must. Try. Harder. ... 

Wed, 06/27/2012 - 17:30 | Link to Comment sessinpo
sessinpo's picture

Not forgotten at all. Of course I would expect someone to benefit from loaning me money whether it is a nation, a bank or someone I know in person. However, I am not forced to take that loan and if I do, then expectations are I pay up. But I certainly don't think banks should be bailed out. The banks took the risk, they should pay the piper for non performing loans.

 

Thu, 06/28/2012 - 01:28 | Link to Comment skistroni
skistroni's picture

It was German banks and multinational corporations that have benefited the most from the Euro experiment. Only some of this money trickled down to the hard-working German population. 

German banks, plus the ECB (funded by Germany), have been giving "subprime" loans to the periphery for them to buy German products and services. Think Hochtief, Allianz, Siemens, Bayer, auto industry, retailers and so on. The periphery could perfectly live without these, but the politicians (backed of course by the people in their respective countries) could not resist the temptation. A strong DEM would have never allowed this to happen. 

I would also definitely say that the German taxpayer should not pay for bailouts. It's about time the German elite pays back. And they only way they can do that in a fair manner for the people is by defaulting themselves. The German people will work their way out of the mess, as they have done before. 

Thu, 06/28/2012 - 01:52 | Link to Comment LowProfile
LowProfile's picture

 

How Much To Save The Euro?

I give up...  How much?

Oh, you don't know either?   Glad I skimmed to see that and saved some time.

Wed, 06/27/2012 - 17:23 | Link to Comment twocents
twocents's picture

Communism fails again. When the people realize that the plan was always to 'harmonize' standards of living across EU countries, the ones who worked, saved and did the right thing will finally figure out that it means lowering their own standards of living to raise those of the lower ones, permanently. Tough sell.

Wed, 06/27/2012 - 17:52 | Link to Comment THX 1178
THX 1178's picture

Communist banking catel. Socialist Banksters. Transferring all of Wall Street's money to Main Street. Ain't that a bitch.

Wed, 06/27/2012 - 17:25 | Link to Comment lewy14
lewy14's picture

How much?

All they have is not enough.

A pfennig is too much. 

Wed, 06/27/2012 - 18:07 | Link to Comment noses
noses's picture

To quote Pete Townshend:

 

 

Give blood
But you may find that blood is not enough
Give blood
And there are some who'll say it's not enough
Give blood
But don't expect too ever see reward
Give blood
You can give it all but still asked for more

Give blood
But it could cost more than your dignity
Give blood
Parade your pallor in iniquity
Give blood
They will cry and say they're in our debt
Give blood
But then they'll sigh and they will soon forget

Wed, 06/27/2012 - 17:28 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Germany is guilty of mercantilism just like china. if you run the trade deficit scam long enough you either get paid in ever more worthless currency or you don't get paid at all. Everyone who is crying for germany because they did the right thing is full of beans. Let shylock have his pound they say. sick.

Wed, 06/27/2012 - 17:36 | Link to Comment OttoMBMP
OttoMBMP's picture

Hey, but you know that GER doesn't have a currency which could appreciate and thus have a counterbalancing impact on the trade balance.
So, you take away this mechanism. What do you expect them to do? Artificially increase unemployment? Force people who save for retirement to buy Gucci bags or a thousand gallons of olive oil?
Go take some economics lessons.

Wed, 06/27/2012 - 17:38 | Link to Comment buzzsaw99
buzzsaw99's picture

where? harvard? maybe in switzerland? sprechen zee german? HAHAHAHAHA!!

Wed, 06/27/2012 - 17:47 | Link to Comment OttoMBMP
OttoMBMP's picture

Hahaha, do you speak a foreign language?
Have you learned anything else useful?
I hope it for you.

Wed, 06/27/2012 - 23:33 | Link to Comment China
China's picture

He should learn Chineese if he is American. China buying gold/silver. Americans buy cheap trinkets at our favorite store - Wal-mart

Wed, 06/27/2012 - 17:40 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Hey fart face germany got rich off housing bubbles in all the other countries and never said a word because it was good for business. Let the Euro suk it bitchez.

Wed, 06/27/2012 - 17:41 | Link to Comment buzzsaw99
buzzsaw99's picture

you tell 'em midge! NO SOUP FOR YOU!

Wed, 06/27/2012 - 17:43 | Link to Comment OttoMBMP
OttoMBMP's picture

You are very elegant, sportsfriend.
Mom and dad are certainly proud.

Wed, 06/27/2012 - 17:46 | Link to Comment buzzsaw99
buzzsaw99's picture

dad is an erudite useless eater just like you.

Wed, 06/27/2012 - 17:47 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Don't fight my battles for me buttwipe, you know I hate that.

Wed, 06/27/2012 - 17:54 | Link to Comment buzzsaw99
buzzsaw99's picture

Blow it out your bunghole buzzard breath.

Wed, 06/27/2012 - 18:54 | Link to Comment TWSceptic
TWSceptic's picture

Absolutely clueless.

Wed, 06/27/2012 - 17:39 | Link to Comment ArkansasAngie
ArkansasAngie's picture

That link has artificially depressed the prices of German exports. These net exports resulting from Germany’s Eurozone membership are actually the problem.

Right so the problem can easily be solved by raising German prices ... Inflating them?

So the cost will be zero?

Horse manure.

 

Wed, 06/27/2012 - 17:45 | Link to Comment falak pema
falak pema's picture

3.5 T according to Buiter of Citi. Thats peanuts to become king of Eurogroup for twenty years!

Wed, 06/27/2012 - 20:53 | Link to Comment darkpool2
darkpool2's picture

No for only one dollar would i want to be king of all those useless asswipes!
I have maintained for a while that Germany will bail ( walk, not fund !!!) , and the longer this goes on, the more that seems the logical outcome. Who they then team up with is the really interesting question. Many will not like the answer.

Thu, 06/28/2012 - 04:37 | Link to Comment falak pema
falak pema's picture

same goes for USA...its called the Titanic. But those on board have to try and escape. We are in those times and those waters.

Wed, 06/27/2012 - 17:51 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

How much?

Whatever it takes, after they get the interest rates at or near zero.

Why they have't done that is a bit of a mystery.

Wed, 06/27/2012 - 17:56 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture
''When the paper mache artisans start talking about a total of $10 to $12 trillion for Western Europe, the United Kingdom, and the United States combined, then they will be seriously planning a banking system recapitalization. They prefer the futile incremental approach, with the proviso of not liquidating the big banks. The hilarious factor is that even $10 trillion would not work, but it would indeed buy another couple years, maybe three years. So  if an alcoholic has the Delirious Tremens, the consensus stupidity calls for feeding him a higher proof Jack Daniels whisky and from a vat for intravenous application, which will revive him, when a mere few liters would not. It is utterly amazing that Bernanke and Draghi are given any respect at all. This is utterly absurd, since the wrong-footed solution is going to be simply higher volume of what does not succeed in reviving the system. WHEN THEY START TALKING ABOUT BIG BANK LIQUIDATION AND A NEW GOLD-BACKED MONETARY SYSTEM, THEN EXPECT SOME TRACTION. But such a plan would involve plowing the system under and removing the bankers from power. Until then, plan for a bigger killing field. The great tragedy is that the killing field is the entire Western monetary system, attached at the hip to the Western Economic system. Witness the gradual collapse.''

 

Jim Willie.........from today.......from SilverDoctors

Wed, 06/27/2012 - 18:00 | Link to Comment TaxSlave
TaxSlave's picture

And WHEN it comes, the 'gold-backed' part will mean "paper debt notes backed by gold (but you can't have any of the gold)".   Bet on it!

Wed, 06/27/2012 - 22:10 | Link to Comment g speed
g speed's picture

yep-- the banks played that game in 1837 in the good old USA  -- 

Wed, 06/27/2012 - 17:57 | Link to Comment TaxSlave
TaxSlave's picture

Wikipedia says Germany has a national debt of 82% of GDP.

So, just to clarify, Germany does have money to lend, it just has better 'credit'.

Here's hoping people worldwide begin to equate the word 'bond' with 'bondage' -- their slavery.

Wed, 06/27/2012 - 18:48 | Link to Comment CaptainObvious
CaptainObvious's picture

Wikipedia also says that Lady Gaga is an "artist" and that global warming is caused by man.  Don't believe anything that can be edited by people who will make money from the edit.

Thu, 06/28/2012 - 07:12 | Link to Comment my puppy for prez
my puppy for prez's picture

Did everyone hear that Lady Gaga is coming out with a new perfume that, in its scent formula, has the elements of her own blood, an anonymous seme sample, and a highly poisonous-to-humans plant?  

I am not making this up!

Wed, 06/27/2012 - 18:04 | Link to Comment Sudden Debt
Sudden Debt's picture

We'll see how it turns out...
...

THIS MEETING NUMBER 19!!!!!'
19 WITHOUT ANY RESULTS!!!!

There will be a meeting number 20.... And 21.... And 22....
And all this shit will go worse and worse untill they just open the floodgates of hell.

Wed, 06/27/2012 - 18:06 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

 <<neg trade balance = BK

 << no, that's not why!

are we to believe that the EU debtors are BK b/c they had a negative balance of trade with germany?

or not? 

what is the correct  answer for this  afternoon's 'save the euro' dichotomy article? 

andbody know?  L0L!!!

Wed, 06/27/2012 - 18:14 | Link to Comment buzzsaw99
buzzsaw99's picture

salacious. falacious, sagacious, outrageous. the whole system is fuktarted.

Wed, 06/27/2012 - 18:18 | Link to Comment Youri Carma
Youri Carma's picture

Donald Coxe: “It used to be that the number that would solve things was $500 billion, then it got to $1 trillion, and now I’m reading responsible people who say, ‘We will really need about $2 trillion over the next twelve months because of debts maturing.’” http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/26_Do...

Youri Carma: “All in all the ECB would need around an estimated $6 trillion to accommodate their imediate and inter-imediate funding needs.”

FROM: Wonder What Would Alice In Wonderland Say To The Vampire Squid?
27 November 2011, by Youri Carma (FPP)
http://forum.prisonplanet.com/index.php?topic=223284.0

Wed, 06/27/2012 - 18:24 | Link to Comment ddtuttle
ddtuttle's picture

They don't print that much.

Simply, Germany will not pay what it will cost to get the peripheriy out of hock.

In other words, the only solution (get rid of the debt), is impossible for Germany.

The ONLY thing that makes sense is for Germany to leave the Euro, and let find its true value.

In the long run, it will be MUCH LESS expensive for Germany to have a strong DM, than to pay for the rest of Europe.

Thu, 06/28/2012 - 00:21 | Link to Comment wandstrasse
wandstrasse's picture

Germany is the last piece of collateral available in the western world to keep the ponzi going for a couple of months. Bankers want it, bankers get it. Rest assured. With D-Mark or with Euro, does not matter. It has been decided decades ago, cannot be stopped neither can the direction be changed.

Wed, 06/27/2012 - 18:26 | Link to Comment data_monkey
data_monkey's picture

How am I supposed to read this if ZH doesn't Bold any of it?

Wed, 06/27/2012 - 18:36 | Link to Comment q99x2
q99x2's picture

Banks are stealing the German tax dollars to bribe their politicians just like over here. Next they'll be paying for a DHS, that will be used by the banks against them, with their tax money. They have to get rid of the banksters while they still have a chance.

Wed, 06/27/2012 - 19:26 | Link to Comment MrBoompi
MrBoompi's picture

The parasites will confiscate wealth wherever and however they can.  And just like the states in our union, they will make damn sure everyone sinks to the lowest common denominator together.

 

 

Wed, 06/27/2012 - 19:36 | Link to Comment EverythingFubar
EverythingFubar's picture

The problem with Zerohedge is there are way too many clever souls trying to read things into what is happening right now. From nefarious Illuminati to TPTB cackling as they pull the strings, everyone is trying to figure it out..but... I put forward EverythingFubar's General Theory of Incompetence (TM) which basically postulates:

1. Those in charge actually don't have a clue about how to solve the problems we're facing

2. Everything being done, including printing money, suppressing PM's, dropping interest rates etc, is a desperate stall attempt to buy time to come up with answers to 1 above.

3. There is no 3

 

 

Wed, 06/27/2012 - 20:42 | Link to Comment Venerability
Venerability's picture

From Seeking Alpha, in answer to a post by Kathy Lien, whom I respect greatly, making a rare less-than-balanced argument against the Euro:

The stinger in all this, Kathy - besides the essential, ongoing problem of Too Many Euro Shorts - is that while everyone is focusing on the Eurozone Summit, we're also getting the imposition of Eurozone sanctions on Iran and many, many signs of serious problems in the Middle East.

The Brent spread already began to blow out today. I think it blows out Bigtime again next week - especially with the US on July 4th holiday - and that the various Commodity Currencies and BRIC Currencies - not a complete overlap - begin to bounce off their lows dramatically as well.

In other words, if the Euro were to weaken further, it would be out of whack with various correspondences which have held for four years now. And I am not sure the World wants to see that.

The Transactions Tax - the first regional Tobin Tax, hopefully of many - may also have a much greater immediate effect than some are yet recognizing.

Currency instability has essentially been the Tail That Wagged the Dog - and the DOG - making all world markets more unstable than they need to be.

Reducing the instability in the currency markets will reduce the instability in ALL markets.

In fact, the D-Minus Treasury Note Auction we got today may have been a HUMONGOUS Signaler that the JPM Nexus is losing respect; that the more egregious forms of currency manipulation are losing their power; that - cross fingers - the outrageous manipulation of the Monetary Metals is losing favor among more and more worldwide market participants, particularly as PM trading moves rapidly from the West to the East.

Many of us remember the days right before Washington Agreement One caused a Sea Change literally overnight.

Some of us have that tingling feeling again. That a similar Sea Change is imminent. And Yes - a welcome, not an unwelcome, one.

 

Wed, 06/27/2012 - 20:58 | Link to Comment Everybodys All ...
Everybodys All American's picture

Seems to me the thing to do is have Germany exit the Euro, create their own currency again, allow the Euro to be devalued by 20-25%, and then have the Germans stepping in to buy the Euro bonds with their own currency. Announce this as the composite plan and bring it all out at once. It would allow the weaker countries to stay in the EU but there would be a shared sacrifice and a European solution. To me this might actually save the system and would not punish the healthy economies/countries but rather lay the blame where it belongs and that is the Greek, Spaniards, etc.

Wed, 06/27/2012 - 21:09 | Link to Comment HungrySeagull
HungrySeagull's picture

Germany does not need to create a new currency.

All they have to do is simply roll out the Deutschmark on a barrel. Made out of gold and silver.

This will assert their economic power for years to come.

Thu, 06/28/2012 - 00:26 | Link to Comment Freddie
Freddie's picture

I thought that I had heard that the Germans never destroyed the D Marks and they put them in storage just in case.  I would guess most Germans want the D Mark back.

Thu, 06/28/2012 - 00:28 | Link to Comment Freddie
Freddie's picture

That is not a bad plan but the EUSSR has to go as well.  Those evil bastards like Baroso and Van Rompuy to name a few need to meet a rope and a lamp pole.

Wed, 06/27/2012 - 21:07 | Link to Comment HungrySeagull
HungrySeagull's picture

Nothing.

Let it die already.

Thu, 06/28/2012 - 01:54 | Link to Comment elwu
elwu's picture

" No-one seems to have thought about that"

Quite the contrary. A lot of people did that, since long. So far, the realized losses for Germany's taxpayers are ~15 billion Euro (mainly due to the haircut for Greece, which impacted the bad bank FMS Wertmanagement, the Comemrzbank and the Landesbanken). Another 310 billion to >1000 billion are at risk (depending on who you ask).

Apparently this doesn't impress all the Obamas, Geithners, Montis, Draghgis, Roubinis, Grugmans, Hollandes and so on. Otherwise it is hard to explain how come they demand more and more and more transfers and guearantees from Germany.

Thu, 06/28/2012 - 02:40 | Link to Comment luckylongshot
luckylongshot's picture

The search for who to blame for the Euro crisis gets ever more frenzied in another desperate attempt to avoid pointing the finger at the real culprits, the Rothschilds.

Thu, 06/28/2012 - 04:26 | Link to Comment Bastiat009
Bastiat009's picture

I don't know how much is needed to save the euro but I hope they do save it or all the gold I bought to protect myself against the imminent demise of the US$ promised to me last year will be worth a lot less as once again, today, gold and the euro move together at the exact same time. It's actually uncanny how they are in sync as though it was just one market.

Thu, 06/28/2012 - 05:09 | Link to Comment juujuuuujj
juujuuuujj's picture

How much euro to save the euro?

Thu, 06/28/2012 - 15:48 | Link to Comment The Age of Usef...
The Age of Useful Idiots's picture

"Any attempt to put the burden of saving the euro on Germany has to be supported by other arguments. I have yet to see them."

 

You are not really trying, are you? Here is a good start:

 

http://www.bloomberg.com/news/2012-05-23/merkel-should-know-her-country-...

http://www.businessinsider.com/richard-koo-the-entire-crisis-in-europe-s...

 

Too many clueless people discovered Europe lately and have now an "opinion". Well, one has to keep one thing in mind. It's not a simple, neat morality story. For that, a children's book will do. The irresponsible parties here were many, including all governments, Brussels, and of course, the banks. Germany's banks most of all. So, the moment one sees an "opinion" article which

1) ignores the role of German banks in the creation of the periphery's debt, and how they were bailed out at the expense of European taxpayers and 

2) ignores the role of ECB policy in accommodating Germany's needs at the expense of the periphery

is either a shill or a rather lazy, misinformed guy who figures he now needs to have an opinion, so he goes and reads a few articles and a few myths and voila! Mission accomplished.

 

The German taxpayer is screwed either way, just as the rest of Europe's taxpayers are. But this not an issue of sovereigns against one another – that’s just political theater with some actors in the know and others not - it is an issue of Europe's elite, bankrolled by the banking cartel, against the people. The banking cartel will win with more "integration" and less sovereignty. And Merkel will win an oscar in Hollywood. And the writers of this and countless other articles will be dumbfounded that in the end, through a manufactured crisis and its escalation, the incomplete undemocratic suprastate not only survived but was accelerated a few decades, at the expense of, you guessed it, Europe’s taxpayers.

Bank on it.

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