The eurozone's strongest economy—but is it strong enough to save the rest?
Greece and the other countries in the troubled “PIGS” quartet—Portugal, Ireland and Spain—have been the focus of recent debate about the eurozone’s survival. It was, after all, the relative weakness of their economies that exposed the eurozone’s limitations. But the future of Europe will be determined by Germany, not the PIGS.
Because of its relative economic strength, Germany is the place where the real decisions are made in the eurozone—an increasingly undemocratic project. At the same time, Germany’s relative economic weakness is blocking solutions to this protracted debt saga. Although Germany is strong in comparison to the other eurozone members, it is weak relative to its own performance post-reunification in the early 1990s. And it is certainly not strong enough to maintain the living standards of hundreds of millions people in struggling eurozone countries.
Germany’s slowdown began to
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For a system of any type to work you need feedback loops, in the old days, if the Greek economy was weak it’s currency would devalue.
The Euro does not have this feedback at the National level so what is needed
is an annual/monthly payment (not loan) from the Euro Countries who
are enjoying an export boom based on their artificially undervalued currency, to be ‘paid’ to the countries suffering from the Euro exchange rate being artificially too high for them : An EME : a Euro-Mis-match-Exchange Fee.
Calculating this amount gets more and more difficult every year
that we move away from previously having had the national currencies – which will be the base of the calculation – of course the best way now to calculate this is to return to national currencies and let the markets decide the currency value – no bad idea to do this and stay there.
The whole Euro thing was about creating a centralised Soviet system and ‘more power to Brussels’ is what is being recommended instead of the EME payments as the ‘solution’… actually : “all part of the plan in the first place” if you ask me.
But what they told us is that this Euro thing will prevent war in Europe. Well go to Germany , go to France and ask them what they think of the Greeks – there is quite a lot of vile and bile being thrown at the “lazy Greeks” etc during this
crisis – it’s not war level but it’s in that direction – it’s not being thrown at the “Oh so clever Europcrats” who invented this “non-system” without feedback loops who never even countenanced answering the vey sensible question asked of them by the British when they started it “What happens if things go wrong”. The Euro is either utter stupidity or a deliberate diabolical plan to create a Soviet Europe.
As a side point, Germany is a Net Exporting Economy as is pointed out in the article, this means that people get paid say 100 Euro to make 10 cars and 8 cars are sold abroad so there are only 2 cars left in Germany – costing 20 Euro and 100 Euro of wages in the economy… but no inflation.
This situation can be repeated using a different Financial system called NEFS : Net Export Financial Simulation and this will give the Germans all 10 cars for them to buy and enjoy using.