The Germans certainly are doing their level best to tank the Euro!
Today, a ban on naked short selling by major German banks, as clear a signal as one could wish that Berlin wants the currency to drop much further.
Not too far, of course, but far enough to keep the trade surplus going, just in case bailing out the banks sinks Das Boot!
Presumably the German banks will be allowed to dump their PIIGS bonds on the ECB, so the Germans are indeed playing the rest of Euroland for suckers.
And none of this game of denial and deception has anything to do with the fundamental Euroland problem: solvency.
Think German or any other major international banks will be willing to roll over PIIGS debt now?
Perhaps, if they’re convinced that the taxpayers will pick up the cost no matter what.
Or perhaps not, if they’re convinced the rules of the game will keep changing to satisfy the need of German politicians to extend and pretend.
Gorilla says: “Wir sind nicht alle Berliner jetzt!”
