Germany, having beggared their Southern neighbors, now looks to be slowing down…
And remains totally in denial about Euro contagion!
Gorilla says: “Maybe they can contract their way to growth, good luck with that!”
Posts Tagged ‘Germany’
Growing Slow
Tuesday, August 16th, 2011Quote Of The Day
Monday, August 15th, 2011German Finance Minister Schaeuble: “I’m ruling out euro bonds for as long as member states pursue their own financial policies and we need differing interest rates (on government bonds) as a way to provide incentives and the possibility of sanctions, in order to enforce fiscal solidity. Without this solidity, the foundations for a common currency don’t exist.”
Gorilla translates: “Thanks to this solidity the common currency will collapse anyway!”
Being Beastly To The Germans
Wednesday, July 27th, 2011And the Italians and Spanish, too!!!
Mr. Market isn’t happy with all the extending and pretending from Angela Merkel. He wants to see big time bond purchases by the ECB to forestall a Euroland-wide contagion and the possible breakup of the single currency regime.
Hard to see this happening, given the complete dishonesty with which Chancellor Merkel has approached the inevitable. German and other relatively flush Northern European taxpayers will need to decide once and for all whether they’re ready to bail out the European banking system. Cost: at least $2 trillion.
Gorilla says: “Two speed Europe only has reverse gears!”
Ready To Roll Over
Monday, June 27th, 2011The French banking dog now wagging the German banking tail…
It’s all another version of extend and pretend. The Greeks simply don’t have the resources to pay off their northern European bankers, and the debt will only grow larger if the ridiculous austerity program continues to cripple the Greek economy.
What’s needed is default, a haircut of probably 30-50% for the bankers, an exit from the euro, and a return to competitive growth over the next decade.
Alternatively, European governments will have to guarantee all of Greece’s debts, and most likely those of Portugal, Spain, and Ireland.
This won’t go over well with French and German voters, whose leaders have lied to them about both the extent of the sovereign debt and the fundamental weakness of the European banking system.
Gorilla says: “There’s only an ugly dog in this fight!”
The Correct Headline Should Be…
Monday, May 23rd, 2011Actual headline from Bloomberg: “Europe’s Debt Crisis Deepens As Greece Cuts”
The correct headline should be: “German Banks And ECB To Remake Fantasy Island”
Frankfurt Grows, Greece No Gos
Friday, May 13th, 2011Germany and France, successfully demonstrating beggar thy neighbor works as long as you’re not the neighbor, are growing!!!
Meanwhile, Greece isn’t growing, amazingly austerity does not lead to growth!!!
And so there’s talk about additional measures Greece needs to take.
The best thing Greece could do is leave the euro.
There’s not a chance that the savage cutbacks demanded to appease German bankers will ever lead to anything other than a decade or more of crippling deflation and unemployment.
Gorilla says: “A swift exit stage drachma is better than this farce!”
Quote Of The Day
Tuesday, May 10th, 2011German Chancellor Angela Merkel: “I’m the kind of person that draws conclusions when I’ve seen the results and analyzed them. Nothing will keep me from doing that.”
Gorilla translates: “Exports a record, neighbors begging, what me worry?”
The Mess Continues
Monday, May 9th, 2011Scrambling in Euroland, as it’s clear that Greece (and likely Ireland) needs more money and time.
The entire austerity regime is a joke: it’s not possible to drastically cut spending and produce economic growth at a time of low demand.
And the approach remains the same: the Germans are more interested in not telling their own people about their banks’ insolvency than they are in pretending an unworkable arrangement will work.
Gorilla says: “Greece should leave Chancellor Merkel to her fate!”
Angela’s Ashes
Monday, March 28th, 2011Chancellor Merkel gets a drubbing!
What’s interesting is that this local defeat was more about nuclear power. Germans have clearly had enough of it.
It will be more interesting to see how Germans will react when they finally figure out their Chancellor has been lying to them: the EU bailouts are not about profligate Southern Europeans, they’re mainly about profligate German banks.
Gorilla says: “Denial is not a winner, in politics or anything else!”
Tawny Old Confidence Fairy
Thursday, March 24th, 2011Well, it’ll screw you if you’re Portuguese, but if you’re a German, Dutch, Spanish, or French bank, so much the better!!!
The shambolic EU and its equally ridiculous Central Bank continue to believe in nonexistent confidence fairies, the ones who will be so impressed if you promise to cut spending and guarantee your electorate a decade or so of grinding deflation and high unemployment!!!
Gorilla says: “The only piper you pay in Oporto is the one in denial who yells Achtung!”
