Is Merkel screwing the Euro on purpose...

Is Merkel screwing the Euro on purpose...

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Discussion

johnfm

Original Poster:

13,668 posts

250 months

Thursday 20th May 2010
quotequote all
..So she can pull Germany out of the single currency?

Why else would she do this?

revrange

1,182 posts

184 months

Thursday 20th May 2010
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Well i am sure the German exporters have not complained about a fall in the Euro? I think she was happy at the start of this to see the Euro fall, helping her economy but now i think the writing might be on the wall, and could very easily caue the double dip recssion so many fear.

Fittster

20,120 posts

213 months

Thursday 20th May 2010
quotequote all
johnfm said:
Why else would she do this?
She's a politician and therefore only has a limited ability to see the consequences of her actions.

johnfm

Original Poster:

13,668 posts

250 months

Thursday 20th May 2010
quotequote all
I wonder if the German people are feeling uneasy about the bailouts and want their Deutschcmarks back.

Germany pulling out of the single currency would be a good start!

JMGS4

8,739 posts

270 months

Thursday 20th May 2010
quotequote all
johnfm said:
I wonder if the German people are feeling uneasy about the bailouts and want their Deutschcmarks back.

Germany pulling out of the single currency would be a good start!
All the germans I speak to, didn't want the Euro and weren't asked if they wanted it. the general attitude here is feck the Euro and give us a stable DM back...

Lickasaurus Rex

3,097 posts

176 months

Thursday 20th May 2010
quotequote all
JMGS4 said:
johnfm said:
I wonder if the German people are feeling uneasy about the bailouts and want their Deutschcmarks back.

Germany pulling out of the single currency would be a good start!
All the germans I speak to, didn't want the Euro and weren't asked if they wanted it. the general attitude here is feck the Euro and give us a stable DM back...
Yes, but we can't have anything getting in the way of the grand project.

The Christian Democrats are one of the biggest forces behind the EU project.

Just like none of us will be given the choice.

If Merkel is screwing the Euro on purpose, it will be to deflate it to a level where the PIIGS problem disappears to a degree (until next time). As soon as the Euro dies down, you'll have everything back to normal. The snag is that people will try and get their money elsewhere for the shrink.

It will be the thrifty who get hammered, a la UK.

DonkeyApple

55,301 posts

169 months

Thursday 20th May 2010
quotequote all
My guess is that as Germany is the largest economy in the zone but with a balance sheet better than most of the others she is attempting to protect Germany from the outside speculators who whther they mean to or not are looking to collapse the PIGS economies.

I don't think she had any choice.

I suspect that the reason she included the big financial institutions as well was because they are large holders of Euro bonds and so the speculators would have instantly hit them as a means to short the bonds.

If the EU is to survive then 2 things need to happen, they need to remove as much speculative down pressure as possible on the markets and they need to done some strong Bavarian marching boots and go and kick the teeth in of Med govt's and keep beating them until they make the massively aggressive cuts that they need.

Imagine how the English would feel if an entity such as Wales was just sucking cash out of England and giving it all to the people as inflated salaries, pensions and welfare etc and then when it went bust they were likely to collapse England as well.

Not a brilliant analogy but I'm pretty sure it gives the idea as to how ze Germans feel right now.


Digga

40,324 posts

283 months

Thursday 20th May 2010
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DonkeyApple said:
Imagine how the English would feel if an entity such as Wales was just sucking cash out of England and giving it all to the people as inflated salaries, pensions and welfare etc and then when it went bust they were likely to collapse England as well.
You're talking about Scotland right?

Irish

3,991 posts

239 months

Thursday 20th May 2010
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DonkeyApple said:
Imagine how the English would feel if an entity such as Wales was just sucking cash out of England and giving it all to the people as inflated salaries, pensions and welfare etc and then when it went bust they were likely to collapse England as well.

Not a brilliant analogy but I'm pretty sure it gives the idea as to how ze Germans feel right now.
Haven't you just described Scotland and Northern Ireland?

Andy Zarse

10,868 posts

247 months

Thursday 20th May 2010
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DonkeyApple said:
Imagine how the English would feel if an entity such as Wales was just sucking cash out of England and giving it all to the people as inflated salaries, pensions and welfare etc and then when it went bust they were likely to collapse England as well.
Yes, that would be truly terrible... Oh, wait!

Bing o

15,184 posts

219 months

Thursday 20th May 2010
quotequote all
DonkeyApple said:
Imagine how the English would feel if an entity such as Wales was just sucking cash out of England and giving it all to the people as inflated salaries, pensions and welfare etc and then when it went bust they were likely to collapse England as well.

Not a brilliant analogy but I'm pretty sure it gives the idea as to how ze Germans feel right now.
I had a chat with my boss in Frankfurt about this yesterday and that was exactly how he felt - not a happy camper at all!

Lost soul

8,712 posts

182 months

Thursday 20th May 2010
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anonymous said:
[redacted]
Why would she have a prpbem with that ?

Digga

40,324 posts

283 months

Thursday 20th May 2010
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anonymous said:
[redacted]
The thing is, until all this nonsense about the Welsh National Assembly and Holyrood, we'd muddled along with our collective interests.

Seems like there are those in Scotland and Wales who will clearly profit from antagonising for a parting of ways, at a time when we need to stand together.

The comments on here about the disgust of the German public for the cost of the bailout and the general unpopularity of the Euro certainly ring true with my experince over there. The EUSSR was a socialist experiment foisted on a largely unwilling European population. Clearly the PIIGS couldn't wait to get their noses into the trough, but ask a German or a Frenchman for that matter...

DJC

23,563 posts

236 months

Thursday 20th May 2010
quotequote all
Er, why the shock and confusion?

Germany as a whole has just realised they are being asked to fork out the best part of 200Bn Euros for another mob who appear to not give a damn. This is only a relatively short amount of time after the reasonably affluent West Germans were forced to fork out an awful lot of DM's to "integrate" a knackered East Germany to form a solid country. But of course they were told that it would work out in the long run.

Merkel is fighting for her political career at the moment, Germany society is now starting to fight for their own financial future well being, the 2 are on opposite sides of the argument. Unfortunately the rest of the domestic German political cupboard is rather bare in terms of talent, ability and better ideas.

DonkeyApple

55,301 posts

169 months

Thursday 20th May 2010
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anonymous said:
[redacted]
Exactly. It's a relatively minor impact within the UK. We are much closer to each other and as much as we English like to poke fun at the others it's not really all that important.

In Germany's case they are not close to any of these countries and the amount of money they have given them and are still giving as well as underwriting is plain frightening.

These countries could completely collapse Germany. I really think that Merkal would have been better off launching the rescue package and kicking Greece out at the same time. Greece won't change and none of the other countries now will as they know the Germans will cover all their debts.

The Germans are in a difficult situation due to history. They know very well that in order to control the masses it is best to make a public example of one of them, but I doubt they have the stomach to do what on this occassion is the right thing.

Trommel

19,121 posts

259 months

Thursday 20th May 2010
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DonkeyApple said:
They know very well that in order to control the masses it is best to make a public example of one of them, but I doubt they have the stomach to do what on this occassion is the right thing.
What does Poland have to do with it?

Lickasaurus Rex

3,097 posts

176 months

Thursday 20th May 2010
quotequote all
DJC said:
Er, why the shock and confusion?

Germany as a whole has just realised they are being asked to fork out the best part of 200Bn Euros for another mob who appear to not give a damn.
That's socialism for you.

The UK people realise this as well, whether it be the EU socialist project or social security in this country.

Sadly, the people in charge think it's all a really good idea as they themselves can get more money/power. Screw everyone else.

You have to be worried when there is no alternative to vote for. Then what do you do?

The Euro project is an unaccountable, unelected, corrupt mess which costs far too much and spends money frivolously.

The EU needs to be about facilitating economic growth of all members in the best way, rather than creating some sort of socialist dictatorship which suffocates everyone from nations to companies.

Edited by Lickasaurus Rex on Thursday 20th May 12:19

OnTheOverrun

3,965 posts

177 months

Thursday 20th May 2010
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anonymous said:
[redacted]
When's the Lowestoft to Bristol wall going up then? biggrin

DonkeyApple

55,301 posts

169 months

Thursday 20th May 2010
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anonymous said:
[redacted]


King Offa used a dyke to stop them getting through. Much like a Green Party security guard.

The Black Flash

13,735 posts

198 months

Thursday 20th May 2010
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DonkeyApple said:


King Offa used a dyke to stop them getting through. Much like a Green Party security guard.
excellent rofl