This will be a loo-flush of epic proportions. And it will happen quicker than the vast majority imagine.
What we in the US do not quite fathom (partially because our magnificent media MM©) will not clue us into it, is that most Euros *hate* the Germans with a passion. Therefore, this idea that the Germans, possibly with the Frenchies, will be able to dictate tax policy and entitlement policy to these smaller (and not all that smaller when you consider Italy had its president shoved out the door) nations is so far beyond abhorrent that they will poo-poo in their pantalons. This is viewed as the French or worse, the Germans, conquering these nations just a surely as if there had been a military victory. So these smaller countries are going to go bats**t.
“This is viewed as the French or worse, the Germans, conquering these nations just a surely as if there had been a military victory. So these smaller countries are going to go bats**t.”
Ha! The Germans saving Europe does have a certain ring of irony to it.
Prior to the Euro, the Germans always ran the strictest monetary policy in Europe. They inflated the Mark to be sure, but Italy, France, Spain, etc. all inflated their currencies much, much more. The result was a constant struggle to readjust their exchange rates downward in relation to the Mark.
This only served to highlight their fiscal foolishness and caused them quite a bit of embarrassment. The Euro project was designed in large part to do away with the unflattering comparisons to the Germans and siphon away some of their economic power.
As always, the laws of economics may be ignored but not repealed. The truth is revealed in each country's bond rates and they all look bad compared to Germany. Now, they want Eurobonds to disguise this embarrassment.
They would be better off if they did let Germany set the rules. But this is Europe and chaos must reign.
The German bankers have done what Hitler could not. And guess what; the German people aren’t too happy about it either (from what I hear).
Angie already said if this thing isn’t addressed it could lead to war.
Germany is winning this one without a shot being fired.