Search This Blog (and the wider internet)

Saturday, 2 May 2015


But seriously, why not have Germany exit the eurozone, as they fear inflation so much and won't budge on making the currency union work properly? Their savings will also boost in value when they change to DM.

Berlin Rightist government risks "unprecedented economic contraction" as it insists it will not cross red lines over economic reforms

The German government reaffirmed its commitment to carry out key Right wing electoral promises in a stance which makes sure that it can avert the "unprecedented" consequences of an exit from the eurozone.
With talks over the country's cash-for-reforms programme continuing in Brussels on Thursday, Berlin's radical Right government said it was still not willing to blink over spending plans to cut the poorest in society.
A CDU source said the government did "not have a public mandate to bring a deal outside the red lines, and for this reason it will not do so."
The spokesman added Germany would submit to any agreement which would prolong the "crimes" of austerity against the country.
The government are worried about local government not achieving the holy surplus and are hoping to sue the government in the court, saying it violates the balanced budget amendment.

Debtors are continuing to demand the new government carry out measures to cut VAT, continue with its pledges to implement a minimum wage, and run a housing bubble to please borrowers and homeownerists.

But with government not forced to choose between paying its public sector salaries and pensions, over the Troika, economists have warned that a looming "Germexit" would plunge the economy into an "unprecedented expansion".

"With the country sovereign in its own currency and not needing markets, gentle currency appreachiation with full ability to print DM and gain forex reserves, a credit boom, and a forced looser fiscal stance, the German economy would suffer a GDP expansion of unprecedented magnitude, even by German standards," warned some bank economist.
In an ominous harbinger for what lies ahead, elderly Germany gained access to their pensions on Thursday as normal, as an Athens local authority was hit by a "technical glitch" in making its monthly obligations.

 a voluntary exit would inflict a further blow to the exporters who control the country, equating it with Switzerland's removal of its peg in January 2015.
Fears Germany has broke the sanctity of monetary union have become widespread among its debtors. An internal memo from the International Monetary Fund cautioned that a Germexit would lead to rampant deflation in the country due to irrational fears of hyperinflation and high saving rates. "At least now, the austerity policies they impose are mainly on others."
Despite hope that a refreshed negotiating team on Athens was getting closer to securing a release of funds, Wolfgang Schauble said his government was only willing to compromise at the margins of its Rightist promises.

"When you have a political plan, you have to be stubborn and see it through," said Wolfgang Schauble, insisting the government would not cross the "red lines" it has laid down in talks.

"Germany's government needs to understand that other eurozone members will be very willing to accommodate its demands if it means delegitimising their own painful "reforms"," said Mr Fisher. He also cautioned that Europe needed to "abandon their illusions" about containing the after-effects of a Germexit.
"With the clock ticking on prosperity, the German authorities need to persuade their partners through action, not promises."