How Germans Feel About More European Bailouts
In summary, this is how Germans feel about continued ongoing bailouts of Germany's liquid(ity) crack-addicted neighbors:
As Spiegel confirms, "I think it is almost futile" by a mile, and most notably the lead is getting bigger and bigger, as we predicted a year ago, as the various liabilities, open and contingent (up to an including the €1-2 billion in daily TARGET2 of liability transfer to keep the periphery buying Germany products), are being increasingly more appreciated by Fritz Sechspack. It is in this context that we urge everyone to take any and all pronouncements by Mario Monti that Germany has caved with a bushel of salt, as unless Merkel is resigned to, well, resign, it just ain't gonna happen (as the market realized once again late last week).
And probably just as important is the fact that unlike the rest of the world which is spending like a drunken sailor, it is only the Germans who realize, perhaps courtesy of their all too recent past, that there just isn't such a thing as a free lunch. Because the one question the respondents felt most strongly about was whether as a result of the Euro crisis, are you concerned about significant inflation in daily life. The vast majority, or 69% responded with Yes. Of course, they are right, and at this point it is just a matter of time, because all else equal, just the popping of the €720+ billion unsustainable Bundesbank imbalance bubble will lead to runaway inflation as explained last week.
It will be interesting to watch the developments of all these response series in time, as Germany gets dragged ever deeper into Europe's growing economic depression, and as those who currently find no reason to worry about their jobs, a whopping 64% of them, start in fact worrying about their jobs, and projecting their fears, and anger at unemployment on, you guessed it, all their European neighbors.
One query which saw overwhelming support, not surprisingly, was whether Europe should create a centralized European authority, which has strict control over Europe's fiscal future, aka a central-planner, one which is implicitly German. 74% of Germans are in favor. So far so good. We wonder, however, how Spain, Italy, and France would respond to a question asking them if they are ready to cede their own sovereignty to a German uber-state. If history is any indication, not very favorably.
Full survey here.