Germany's at it again, some things never change, if you have read the history of the Nazi party, once Hitler had gained power through democratic elections, he created a series of crisis to consolidate it. Taking temporary special powers that then become permanent. So this latest German diktat could have been written, and would have certainly won the approval of that 19th century megalomanic madman himself.
These sorts of ultimatums were made by the megalomanic madman to annex Austria, Sudetenland in Czechoslovakia and finally the rest of Czechoslovakia. He came unstuck over Poland and as they say the rest is history.
The really bad news is that the more I read and research the into the causes of the Euro crisis, the more I realize that Germany is at the heart of it, with the French their
Paris is an open city compliant poodle, lapping up to them and providing the clout they need to be the major dominant European power. They need the EU countries for this otherwise the most powerful European country will become Russia again.
1. Germany and France drove a train through the original Euro stability pact, which stated sovereign debt must not exceed 60% of GDP and a maximum budget deficit of 3%. When Germany and France were confronted by the EU commission, Germany and France got other Governments to vote with them (including the fool Brown) to defeat the EU commission.
http://www.bbc.co.uk/news/world-europe-167610872. Part of the Eurozone rules include a pact that there would be a target for wages to increases in all of the Eurozone countries by 2% per year. France, stuck to this 2% target, Southern Europe broke it by exceeding 2% and Germany broke it by targeting a lower in reality 1.4%. This gave them a competitive advantage with lower prices for goods, which in turn has boosted their trade surplaces and increased the trade in-balances and stresses between the Eurozone countries.
http://seekerblog.com/2012/01/17/euro-crisis-german-unit-labor-cost-repression-is-the-primary-cause-of-periphery-stress/3. Greece should have defaulted in 2010, rather than being bailed out. If she had done so, it would have stabilized her economy and the country would probably be growing now, the same applies to Ireland, Portugal should be currently considering it and in the future so should Spain, Italy, Austria, Belgium and France. Countries defaulting is a surprisingly common occurrence, with 50% (yes 50%) of sovereign states defaulting in the 1930's and in the 1950's. Defaults tend to happen in clusters, the last one was around 2000 when Argentina, Uruguay, Ecuador, Russia and the Ukraine (Ukraine defaulted twice!) occurred. Once Greece defaults expect more countries to follow. This document has a history and analysis of defaults and currency debasement. Has the UK ever defaulted, yes, but not in modern times. The UK defaulted 3 times before 1600, the first in 1340. Guess which country was the first to default, in written history, yes you've guessed it Greece in 377BC and she has defaulted 5 times since independence. Spain holds the record having defaulted 13 times since 1496!
http://www.economics.harvard.edu/files/faculty/51_This_Time_Is_Different.pdfThis paper has analysed a number of recent defaults and shows that once a country defaults, their economy starts to recover almost immediately and unemployment starts to drop.
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=845952If Merkel with her poodle continue down this path, things will at some point get very, very ugly and brutal, as future diktats will demand every further compliance and subservience to Germany and her poodle's demands, as their confidence grows in much the same way as Hitler's did, from 1933 to 1938.
The 1930' Great Depression, went like this: Financial markets crashing and economies going into recession (like 2008), followed by currency wars where everybody is trying to make their currency lower than everybody else (UK have been more successful than most with 25% devaluation, but it has not improved our economic performance, just increased inflation and decreased living standards to produce stagflation), this is followed by trade barriers and trade wars and finally followed by real war.
If you had asked me three months ago what are the chances of a war in Europe over the Eurozone problems, I would have said 1 in 10,000, now I think it has fallen to 1 in 1000 or maybe even as low as 1 in 100. With 23% unemployment (and rising) in Spain and over 50% youth unemployment, these are the sort of levels that you start to get serious unrest (like the Arab Spring, this was primarily over high unemployment). If Spain can't control the problems, will we see another German intervention like in 1936 (This time with her Poodle's help)?
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Topic: Greece to cede sovereignty? (Read 1861 times)