Thursday, October 13, 2011

German Savior

This from zero hedge considering the strength and determination of Germany to sustain the European Union. As usual the news, not reported in the maistream, does not appear to be good. Russ Winter of Winter Watch says the cracks are starting to appear in the solid façade presented by France and Germany in the face of increasing demands for cash to paper over Greek bankruptcy. Interestingly enough Germans, though infinitely more solvent than their neighbors are feeling less secure than any major economy. Occupy Wall Street is on every commentators lips these days not least because the people in charge know that their grip on our economic well being is slipping. Quantative Easing failed and will continue to fail to bring us relief. Talk of "no recession in the US" is bullshit and we all know it. As long as our bosses lie to us we know things are bad. Germans seem to have a clear idea that they are being ripped off to support Greece and they don't like it. When a majority in the US understand what Occupy Wall Street means they will be Germans too.


As far as the so-called pristine "flight to safety" of AAA German debt, some analysts are predicting that a credit downgrade is at hand and soon - even before the implementation of the next round of EFSF, even before the nationalization of sick German banks and even before the Greek bankruptcy. Two years ago, Germany's debt to GDP was 64%. Now, it's 84% and moving up fast.



So far, political leaders in Germany have chosen to ignore all this and instead have passed a fresh measure to throw 211 billion euros more into the pot as Germany's contribution to the "do that" problem. Apparently, the appeal of the EFSF issue is that it will be another AAA supranational debt guaranteed by the rest of Europe, which coincidentally has far lower than a AAA rating. The "rest," namely France and Germany, are facing debt downgrades and have populations in deepening funks while their political will is being blown off.



In judging how this plays out from a social and political perspective, it would seem that Germany is the weak link. The U.S., with even more debt than Germany and less cohesive as a people, can also drop like a rock in a heartbeat. There is major political discontent in all these countries, but so far all the public can do is vote for a stranger and stranger revolving-door of politicians, who employ the same one-trick-pony bailout economics. It is increasingly obvious that the persistence of struggling and suffering populations combined with politicians unresponsive to their wishes, leads to protest movements such as Occupy Wall Street. But most of the serious protesting is in truly ruined countries, where much larger groups are suffering.



As the sovereign debt crisis spreads to Germany, France, the UK and the U.S., and some austerity enters the scene, at what percent of population counted as struggling and suffering does democratic protest turn into something far more dangerous (or in the end positive)?

1 comment:

Anonymous said...

Interesting article that asks an original question....Is the NWO unraveling? Disregard the authors checkered past.

http://www.wnd.com/index.php?fa=PAGE.view&pageId=355405