Posted on 03/26/2013 8:51:58 PM PDT by Olog-hai
Throughout Cyprus’ financial crisis, German power has been on display. But Germany is pursuing the wrong ojectives, showing how it’s incapable of wielding its power correctly. Cypriot leaders came up with the idea to make their own small-scale savers liable for the bankruptcy of the banks—with the approval of Germany—because they wanted to hold true to their principles of crime and punishment.
All of Europe, indeed the entire world, took notice. Despite deposit insurance and Chancellor Angela Merkel’s own promises, in the end it’s the common people who suffer? The plan was withdrawn, and now the burden is falling mostly on wealthy Russians. But the damage is done; confidence undermined. What is the chancellor’s word actually worth? Cyprus has shown once again that Europe can’t rely on the Germans. …
… Just like twice before in our recent history, the Germans are falling deeper and deeper into conflict with their neighbors—regardless of the cost. It’s a path that could easily lead to fear of German political hegemony on the Continent. Indeed, Merkel’s idea of European integration is simply that Europe should bend to Germany’s political will. …
(Excerpt) Read more at spiegel.de ...
An article that hammers its anti-German theme at the end of almost all paragraphs. Not much give and take with this author!
Depends on what you mean by that phrase. Anti-Merkel? If the SPD did the same thing, would he not have written this? Open questions.
Amazing drama!
” - - - “If history shows anything, it is that there’s no better way to justify relations founded on violence, to make such relations seem moral, than by reframing them in the language of debt — above all, because it immediately makes it seem like it’s the victim who’s doing something wrong,” he wrote in his 2011 book “Debt: The First 5,000 Years.” - - - “
This quote from the article seemed to be the philosophical core of Jakob’s article. If so, Merkel is but an interchangeable figure.
bump for later
Gimme a break! German war crimes seventy years ago do not excuse profligacy in Cyprus today. So, basically, when the Cypriots borrow money, they have their fingers crossed and say, we promise to pay it back... with German taxpayers money!
Of course it doesn’t. But it seems rather like nothing much has changed in Europe.
Maybe. Or maybe try looking deeper into it. The social market economy rules over there. There is no comparison to the USA.
But there is comparison to what the Democrats are building USA into: socialist/national socialist. 1930’s and 40’s, Europe/Russia. 2013, Global.
I can see that comparison.
The euro is doomed from the start. It is not backed by anything, neither is the US dollar.
My advice, Hold Gold.
Yep.
Doooomed from the start.
I remember thinking at the beginning: This can only work under a dictatorship encompassing ALL of Europe.
http://www.gatestoneinstitute.org/3534/jakob-augstein-anti-semite
We are to believe what this POS writes?
“they’re (the Germans) binding other nations with the shackles of debt”.
What a ridiculous statement that only a Liberal could make.
Germany didn’t drive the PIIGS+ into debt. They did it to themselves, for decades, as conservatives warned of the consequences. Germany spent within its means, & out produced them all.
Something else:
The raid on deposits in Cyprus is a warning to debt ridden EU countries that refuse to accept austerity programs: There are worse things than austerity; & there comes a moment when austerity isn’t enough & confiscation of private assets is the only solution to save the country.
Note how the original plan was to tax all deposits with 2 tier rates. That was never gonna happen without massive riots in the streets, but it got EVERYBODY’S attention, EU wide. The current plan is still legalized theft, but affects far fewer Cypriots & resident foreigners, while still being fair warning for the rest of the spendthrift EU countries.
Actually, Germany has not spent within its means. Back in 2011, it was reported that the country has $5 trillion in hidden debt.
Also, the “austerity” of the European Union always includes tax increases. That is not conducive to growth. The manner of austerity that US conservatives call for (stipulating massive tax decreases), the EU would utterly object to (as would Germany); remember that many EU economists are trying to make the USA the scapegoat for their financial crisis, slamming what they call the “Anglo-Saxon free-market capitalism model” (when the USA has actually abandoned) in favor of the social market economy.
Correction: €5 trillion rather than $5 trillion.
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