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

That is just nonsense. Your picture of an europe where all other countries are not only powerless but not even able to understand what they sign is a fairy tale.

Caveat emptor, eh?

In point of fact, they did not understand what they were signing. This is a matter of public record. Nowhere in the Eurozone was there any substantive public debate on the consequences of accession. And what sorry excuse for a debate there was adopted Lysenkoist economics wholesale.

Suppose, now, that Germany was, in fact, acting in good faith. What is the good-faith response to realising that you have proposed a system that manifestly does not work?

It is to say "oops, sorry, let's fix this." In this case, to support unconditional fiscal defence of full employment, backed by the full seigniorage power of the central bank.

Germany has not made this good-faith response to the crisis. On the contrary, Germany has been the loudest and most hysterical voice decrying any and all reasonable plans, and proposing one Rube Goldberg-esque bullshit pseudo-solution after the other in order to avoid negotiating in good faith.

The fact that Germany is not the only Eurozone country to do so does not detract from the fact that it is both the largest, the most vocal and the most extremist in insisting that others bow down before its inflation neurosis.

And that is shifting the goalposts. Tgere was a very considerable fiscal stimulus in Germany, perhaps the biggest in the G8.

No. To be "considerable," it has to bear some considerable relationship to the magnitude of the problem. Defining "considerable" as "considerable relative to what the Swabian Housewife Economists at the Bundesbank would have liked," by contrast, is moving the goalposts.

What about the Netherlands or Finland? or Luxemburg?

Were they invited to the Merkozy mini-summits?

No, I thought not.

If you presidentialise the EU around Frau Merkel, then you don't get to play the victimisation card and the "but they do it too" card when people assume that Merkel is the president of Europe.

All german puppets? Once again, you are denying the agency of all other EU countries.

I am noting that under current treaty arrangements they have no power to overrule an obstructionist German position.

And neither the fed nor the BoE was able or perhaps willing to bury their great recession.

The US Fed/Treasury are doing an almost reasonable job of fighting their recession.

The BoE can't tell the Exchequer to spend more money. But it sure as Hell isn't telling the Exchequer that it can't spend more money.

The central bank and the treasury have to work together to bury a downturn in newly printed money. In the UK, it's the Tory-controlled Treasury that is obstructionist. In the Eurozone, it is the BuBa-dominated ECB that is obstructionist.

And I thought I was joking. You really think everything is a german conspiracy. Have you worked in templars and jesuits yet?

I am not postulating a German conspiracy. I am noting that Germany has been peddling toxic economic Lysenkoism to the rest of Europe for four solid decades now.

The fact that the Swabian Housewife Economists believe in the bullshit they peddle is not an excuse, any more than being a fervent believer in homeopathy is an excuse for pretending that it can cure disease. Nor is the fact that the rest of Europe believes it as well.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 11:13:04 AM EST
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