Merkel warns against overstrain of Germany in the Karen Millen
Euro-crisis. But the country is really dangerous to take it? Once before, the Federal Republic of the function of a global economic locomotive imposed - against considerable domestic opposition, but with success
One should be careful not to overwhelm Germany. So it said Angela Merkel in the Bundestag. It is not the first time in German history that makes the rest of the world demand on Germany, Germany will not or can meet. Recall from the Fourth Summit of the G7, the then seven largest industrialized countries, held in Bonn in 1978. Chancellor Helmut Schmidt and his Japanese counterpart Takeo Fukuda came under pressure from Jimmy Carter and others to stimulate the domestic economy. Politicians and journalists the time spoke of Germany as a locomotive for the global economy.
Schmidt conceded. The locomotive ran through Karen Millen the second oil crisis, this time to a halt, but the world economy collapsed, at least not together, despite oil shocks and recessions in the U.S. and the UK. The decision of 1978 was an important and good example, can function as a global economic coordination. Germany and Japan have not personally pulled the world economy out of the mess. But they have made an Karen Millen Dresses important contribution, that it was not worse.
When Angela Merkel asks now also a matter that we should not Germany overwhelm, then one wonders whether they like Smith will snap back then, when the Heads of State and Government of the twenty most industrialized nations earlier this week in Mexico, or the Euro-summit, a week later.
The Chancellor's bluffing?
What I more often hear in discussions abroad, the question is whether the Chancellor's bluffing. Germany would be in a Euro collapse of the chief mourner. This is due to surpluses in the European payments system and credit guarantees for Greece, Ireland, Portugal and Spain soon. This could lead to losses of one trillion euros loose. Given these figures, wondering more and more foreign politicians and economists as Karen Millen Dress
to whether you should maybe try times the hardness of Angela Merkel?
I advise against it. The German position is partly irrational. They want to limit its credit risk strictly, but you will not believe that the euro is falling apart. And when the two goals can not be reconciled, then it suggests verbal order. The behavior is more reminiscent of a psychopath who holds a gun to his head and utters threats. Even if the risk is greater for the person concerned as to the environment, there is still some residual risk. And so I would warn against overestimating German rationality in the debate.
Even Merkel's warning of an overload of Germany is such an irrational act I would call it a category mistake. If you would require Germany to pay the debt of Greece, Italy, Spain, Portugal and Ireland, then that would indeed be an overload. This can not, of course, Germany. But that's not what anyone calls with influence in this debate. The idea of ??the Union bank is not, as one commonly thinks in Germany to guarantee German Greek saver accounts. The idea is that you create in Europe a common fund to recapitalize banks and German banks, and centralized oversight. Once this is established, then the question of deposit insurance is very different. And it is not absolutely necessary that this be financed by the depositors themselves must. If the bank is Union, then this function can also at the European Central Bank will be located.
It calls for the pooling of unforeseeable risks
What is required of Germany and of all other 16 euro area countries is not the pooling of debt itself is the pooling of unforeseeable risks. Without this, the situation is hopeless. So now tinkering in Brussels on measures that they must meet in order to breathe tomorrow, and then rules on the breath.
Another sign of irrationality is the proliferation of conspiracy theories about aliens that want our hard earned money. I recently had to laugh out loud when I read in a newspaper of a conservative conspiracy Anglo-Saxon investors and the Left in Germany read. As it explains the mass exodus of Asian investors in the euro area? That are also Anglo-Saxons? Or members of the Left?
One expects no sacrifice of Angela Merkel, but only the willingness to solve a problem. Instead, she seeks refuge in long-term issues such as political union. It's as if a fire department in advance of a fire, but instead of deleting, first of all explain what everything will not be deleted, and sign ratify before using all sorts of papers and leaves. Is it an inferiority complex that determines this irrational attitude? Or look out the inability of our own food? Or perhaps a lack of understanding of economic events?
34 years ago, Germany's economic establishment was also up in arms against the government's policies. It has changed very little since then. The main difference is that the monetary union is the use of higher today.