'Germany's anti-euro party is a nasty shock for Angela Merkel'

Discussion in 'Economics' started by Wallace, Mar 16, 2013.

  1. by Ambrose Evans-Pritchard 5:00PM GMT 10 Mar 2013

    "Political revolt against the euro construct has spread to Germany.

    A new party led by economists, jurists, and Christian Democrat rebels will kick off
    this week, calling for the break-up of monetary union before it can do any more
    "An end to this euro," is the first line on the webpage of Alternative für Deutschland
    (AfD). "The introduction of the euro has proved to be a fatal mistake, that threatens
    the welfare of us all. The old parties are used up. They stubbornly refuse to admit
    their mistakes." https://www.alternativefuer.de/ - German, English in a few days
    They propose German withdrawl from EMU and return to the D-Mark, or a break-
    away currency with the Dutch, Austrians, Finns, and like-minded nations.
    The French are not among them. The borders run along the ancient line of cleavage
    dividing Latins from Germanic tribes.
    "The Italian election shows how dangerous the whole euro crisis really is. Whether
    countries can and will pay back their debts is dependent on the unpredictable
    voting choices of their peoples," he said.
    Some say Germany is "winning" because its firms are conquering Club Med
    markets with a rigged exchange rate, but that is a Pyrrhic triumph. [ - winning at too
    great a cost ] Latins will not tolerate this, once they grasp that the "gains" of their
    internal devaluations -- ie 1930s wage cuts -- are dwarfed by the greater losses of
    a wasted youth.
    There are no winners. Each country is blighted in turn, and in different ways. Like
    Goethe's Sorcerer's Apprentice, they have launched an experiment they cannot
    control. The broom has a fiendish will of its own."
    . . .
    "Political revolt against the euro construct has spread to Germany" says it all when
    the citizens of the country who's said to have benefitted most from the EMU are
    turning away from it: "The latest ZDF poll shows that 65pc of Germans think the
    euro is damaging, and 49pc think Germany would be better outside the EU."
    "The appeal of German exit is obvious. It is the least traumatic way to end the
    20-30% misalignment between North and South, the cancer eating Europe.
    Club Med keeps the euro. It enjoys instant devaluation, while still able to uphold
    euro debt contracts."

    some questions:
    1: does the EU continue to exist without the EMU ?
    2: would Club Med members adopt 'their' euro ?
    3: would they re-adopt their original currencies ?
    4: would Club Med in fact 'uphold debt contracts' or simply default on them ?
    just a storm in a tea cup, the EU and EMU will continue, as does the debate that's
    been going on for years - the EU/EMU will/won't fail
    5: is the best idea to keep the EU but get rid of the EMU/euro ?
    6: but if they get rid of the euro, does the EU collapse ?
    7: which scenario is the most beneficial to currency traders ?
  2. This is just like during the 1920s when these types of fragmented political parties started springing up all over the place. We all know what happened next.

    The writing is on the wall, but I doubt most will see it until it is too late.
  3. zdreg


    you have not shown correlation.
  4. When the larger parties start to break into smaller fragments it has historically been a warning sign (not a correlation).

    But here you go: Radical liberalism (extreme multiculturalism), debt bubbles (1929), over-extended social welfare payments, declining traditional values, rising inflation, rise of far-right political classes, and the above mentioned... still not clear enough? Read up on the Weimar Republic.
  5. Well put! I agree, what's coming is what's been before.
  6. The 1920’s German economy was in a depression after WWI and the hand writing then led to Hitler. The 2013 German economy is an economic powerhouse today. So I don’t see how you can draw any conclusions between the two era’s? :confused:
  7. rhk


    here is a link to an article written by a guy who lived thru the fall of the weimar republic... I found it interesting...and relevant


  8. Yes, but what happened before is that Germany was put under pressure by its neighbors (France, UK) and the US to pay what was considered by many Germans to be unfair war reparations after WWI (Marshall Plan). I find there to be similarities between this and Germany having to support/bail out its neighbors "unfairly". This could lead to a similar feeling among the population which is already leading to small dissident parties like the one above.

    Also don't forget that a healthy GDP does not translate into a well-off population. There are a lot of growing poverty in Germany and a widening wealth gap which is blamed on globalization. Globalization back in the 1930s was linked to the Jewish lobby... you see where this could go....

    We still have yet to see how the southern EU crisis could spill over to Germany. We are indeed years away from this. But Hitler was banned from giving speeches before he came to power. This stuff can flip as easily as market sentiment. There is always the calm before the storm.

  9. Are you saying because land was privatized this created slave conditions ?? little confused with article