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I read another comment on the Merkozy failed to save the eurozone-article in the FT. I'm not saying I'm agreeing with it, but I think it does induce some well needed balance here, as I think there has been to much "Blame-Germany-First". After all, not only does it take two to tango, but there also takes two to make a loan. Anyway, here I give you the thoughts of SUPERFRITZ.

"The Germans" totally understand that huge imbalances within the Eurozone are not sustainable. It's quite clear for everyone to see. But how, if not by way of increasing the periphery's competitiveness, are the imbalances supposed to be resolved? Germany CANNOT become less productive and competitive, because it needs to compete on world markets with players like the US, the UK (sic!), China, and others, not just with Greece and Portugal (unfortunately). In fact, the ressources that Germany will need to sort out the Euro mess need to earned somewhere. Germany needs to run a trade surplus with countries outside the Eurozone/the EU or else, it will not be possible to finance the consumption - lack of tax enforcement, pensions, blown up administration, useless prestige projects, etc. - in the periphery (another question is whether it wants to). It is clear that Germany will need to continue to subsidise the South for many years to come (much as it did with Eastern Germany), but it cannot do so unless there is a credible effort by the periphery to reform.

A credible commitment to long term remedies is the precondition for short term remedies. Why is this so difficult to understand, Mr. Wolf?

Otherwise, Germany could as well close shop and hand its assets over to the rest of Europe as a Christmas present. (I know this is what the periphery thinks we owe them, because we cruelly forced the Euro on them, made them buy BMWs and Mercedes, prohibited them from investing the cheap credit in their competitiveness, rather than beach front homes, and then we also invaded Poland only 72 years ago - essentially, it's all our fault. Wait for the Protocols of the Elders of Germany to pop up soon. Parts of the Greek press are already very close to that intellectual level...)



Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Fri Dec 9th, 2011 at 02:08:40 PM EST
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