We have two economical opinions in Germany. The first is: open the wallet and support the southern states – and our government is half part of this opinion. The second wants to close the wallet and release Greece out of the Euro zone and let it solve their problems alone, like England and the 10 other European countries without the Euro do.
I belong to the second party.
In the past politicians of the whole Western world thought that they could make debts year for year, endless debts without consequences. Germany had no debts in the sixties but then had quickly rising liabilities, the quickest rising in the Euro Zone for the last 20 years, from 40 to 80 percent of the gross domestic product. And in absolute figures it has the highest debt, coming up to 3 trillion Euros (hidden debts included). The whole Euro zone has in total 10 trillion Euro debts. Together with the 15 trillion Dollar US-debts this money has in the past flooded the Western economies, bancs and investors who were lending this money to the states. And in the following of the years the results can be seen in Hedge Fonds behavior, the US-House-Market, and in the stock market with all its perversities.
The first to notice this were the rating agencies and they started to downgrade Greece and the PIGS.
Suddenly we had the Euro crisis because everybody could clearly see: States can fail.
Even worse: we have no exit strategy in the Euro zone. We still don´t have. It lasted two years to decide a hair cut (which price quadrupled). And the price is still rising.
Germany has 211 billion credits (with risks up to 400 billion Euro in the European rescue fund) plus 338 billion of the German Bundesbank and the rating agencies already marked if this would go on they would downgrade Germany´s AAA.
(It is interesting that the Open-Wallet-Party never mentions the rating agencies and the risk, being downgraded.)
Germany still gives good advice to the Southern European states and still doesn´t think of reducing its own debts. Though it has 48 billion Euro risen tax income in 2011 – its new debts for 2012 will exceed to fifty billion Euro, I guess, 28 alone in the Bundeshaushalt.
If you open the newspapers you could think that our politicians have Alzheimer, “what crisis?”. They just decided another 6 billion supporting young families, or smaller sums like 50 millions for a new statistic office or in NRW some 30 millions for supporting the poor with free public transport.
So for my opinion we have crossed the Rubicon. Our politicians who don´t even know what saving means, in USA and in Germany, because they still think that they be subject of other rules than companies or households, they will go on and on and on…
till the crash comes – or even worse, inflation.
Eingestellt von dirk kranefuss um 15:14
