The real reason for Germany's optimism Catch certain Germans in an unguarded moment and you'll hear the truth about the German perception of the troubles in Italy and Greece: "To be blunt, we have them by the balls." November 15, 2011: 10:37 AM ET http://finance.fortune.cnn.com/2011/11/15/the-real-reason-for-germanys-optimism/?iid=H_TS_News What's interesting is what happened later, during a coffee break, when I got into a discussion with two senior German executives attending the meeting. One of the German execs was a consultant, and the other headed what I'll call a quasi-official German organization. They were slightly irritated by the pessimism I'd expressed earlier in the day. He waved me off. No no, he said, it will be taken care of. The Germans, he said, understood how beneficial to them membership in the euro zone has been. Without it, the gentleman said, the value of the Deutschemark would be 50% or 75% higher than it is under the euro. "German industry would be wiped off the map." Is the government, even one under a new Prime Minister, going to push through sufficient austerity to avoid a default? Now the consultant perked up, speaking what he too believes to be the unvarnished truth. They have to, he said, because "to be blunt about it, we have them [both the Greeks and the Italians] by the balls." And make no mistake â that, in essence, is where the European crisis stands. The Germans -- and the ECB along with them -- believe (perhaps hope is the better word) that two new technocratic prime ministers, former EU commissioner Mario Monti in Italy and MIT-trained economist Lucas Papademos in Greece, will cast politics aside and force angry populations in both countries to take their medicine, whether they like it or not. Because it's for their own good, you understand. And besides, "we have them by the balls. They have to do what we say." Clarity is always refreshing, and what my interlocutor had said is very much the German perception of current political reality in Europe. We have them by the balls. ----------------------------------------------------------------------------- :eek: German triumphalism.
The Euro was put together by Bankers, Politicians and Industrialists. And it was for the benefit of.. anyone? anyone? That's right, for the benefit of Bankers, Politicians and Industrialists. Did anyone ever think it was for the benefit of the common European?
Order out of chaos. Crisis is the new blackmail. Bailouts, their antidote. The Germans and French hold the keys to the ECB. Their way, or the highway. That's the game now. Full-integration under their rules. Or suffer economic collapse. Same show coming to America.
Well said with the addition that they are the ones who created the chaos for the purpose of enforcing order on their terms after that. I think they are both fuc**ed. They are playing their last card, blackmail as you said. Countries cannot be blackmailed like individuals. They will lose big time. Like in WWII.
It definitely sets the stage for rebellion and civil unrest. And you're very right. The euro lured weak countries with access to cheap credit, while exporting what industry they had to Germany (or China). Short-term gain for long-term pain. The question is, did these politicians know before they signed the Lisbon Treaty? Or were they dupes? Of course, they'll claim ignorance. I doubt it..