Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
<Theo Weigels' merry men wrote the 3-percent deficit limit into the Maastricht Treaty.>

No. They proposed it; and 1< other governments accepted it. What about their agency?

In most ethical systems, the quack and the con-man is held to a higher standard of foresight than his marks.

> Germany opposed fiscal stimulus as the G20 in 2009 on the grounds that "automatic stabilizers were sufficient" only to spearhead the destruction of the EU's welfare state and social compact when the said automatic stabilizers pushed deficits well above 3% EU-wide as they couldn't possibly fail to do in a deep recession.>

That is a bit dubious history. In July 2009, when the summit happened, in Germany the stimulus was already enacted at about 1.6% of gdp in 2009.

Which is chickenshit compared to the magnitude of money printing needed to restore private sector solvency.

That was not really then the stimulus in the US, not to talk of the other G8 countries. And the argument that countries with big automatic stabilizers like Germany need a smaller explicit stimulus is at least plausible.

Only if you do not then proceed to destroy those automatic stabilisers when they start working.

<Germany has for 2 years and increasingly transparently pushing a laundering a bank bailout through Greece, in the process destroying the Greek economy and making the Greek debt situation worse with each  crisis "resolution" proposal.>

You mean Germany and the other EU-countries, I hope.

No, Germany and France.

If you start holding mini-summits with Merkozy and presenting their conclusions as fait accomplis that Germany will not deviate from, then Germany and France are to blame for EU policy.

And France will get its comeuppance soon enough, so again we're back to the problem of con-men and marks.

And the greek economy was hardly in a healthy state in 2009.

Irrelevant when the German response was to do everything in its power to make the crisis worse.

There was and in same sense is a global crisis starting in 2008, even if you like to pretend it isn't.

Irrelevant to the Eurozone. The Eurozone would have been fully capable of burying the crisis in newly printed money if the Bundesbank assholes and Frau Merkel and her merry band of Swabian Housewife Economists had not pitched a hissy fit every time an actual workable solution was proposed.

You don't mean Merkel, you don't mean right-wing policies, you mean Germany, going back to at least Waigel.

Germany has been consistently conducting right-wing policy at least since Weigel. So, yeah.

But probably you think that the root of this ancient conspiracy goes back to when Helmut Schmidt duped Giscard d'Estaing into a common european currency.

No, it goes back to when Schmidt duped d'Estaing into accepting that the Bundesbank's Lysenkoist economic theology was used as a foundation for that common currency.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 10:12:43 AM EST
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