This is just precious…
We’ve got a new Socialist elected in France. We’ve got the product of too many “Social Welfare” programs and the “Green Economy” taking down Greece and Spain. We’ve got a “modern social democracy” in Germany that has been making loads of money by selling their goods cheaper than they otherwise would be to the rest of Europe (plus some status cars to China and some other tech odds and ends) via a shared currency preserving productivity disconnects. A kind of internal mercantilism.
Germany has been funding the “bail out” of the rest of the EU. Now they want to say no.
Looks to me like the German’s have discovered the tendency for Socialism to want to spend “other peoples money” and has discovered the tendency for the inevitable collapse of socialism in excess spending to try to find any and all other money to spend. And they don’t like it. Golly. Maybe they ought to read the works of Maggy Thatcher. ;-)
Europe’s 30-month effort to save the euro by slashing spending and debt levels risks turning into a crisis of political legitimacy after EU leaders’ strategies collided spectacularly with the wishes of voters in Greece and France.
The impasse was most graphically demonstrated when Germany’s chancellor, Angela Merkel, insisted Athens must comply with the stringent terms of its €130bn (£100bn) bailout even though more than 60% of the Greek electorate had voted for parties rejecting those terms.
Following a French election campaign in which she strongly backed the loser, Nicolas Sarkozy, and snubbed the president-elect, François Hollande, Merkel stressed her opposition to Hollande’s central campaign pledge: reopening the euro’s new rulebook, or fiscal pact.
“That’s just not on,” she told a Berlin press conference called to address the huge shift from right to left in France.
Europe crisis spreads as Merkel resists big steps
Colleen Barry, Associated Press, Milan | Business | Fri, 06/15/2012 8:20 AM
A growing number of European countries are being squeezed by a financial vise just days before a Greek election that could escalate the region’s political and economic turmoil.
The rise of Italian and Spanish borrowing costs to alarming levels Thursday heaped pressure on leaders to prevent Europe’s debt crisis from engulfing its largest countries. No grand solution appears imminent.
German Chancellor Angela Merkel opposes solutions that many experts are pushing that would increase costs for Berlin.
Merkel has found herself isolated from the leaders of Spain, Italy and France, who want the 17 countries in the euro currency union to move quickly to bind their governments’ finances and debt.
Such action could take the form of jointly issued debt or European-wide guarantees on bank deposits. Either step would spread the risks that individual countries bear across the eurozone.
Hey Angela! Here’s a clue: When there is a socialist in the mix, watch your wallet. Even if you, too, embrace Socialism Lite…
That is the way it always is. People vote for themselves the largess of the public purse until it runs dry, then borrow up to their eyeballs and raid the purses of anyone near them that has any money left. By moral suasion or by theft, however nicely disguised and wrapped in legal and financial niceties.
It’s just nice to watch it happening inside the EU Social Welfare State Collective …
Now if we can just get the USA to guarantee that we will not be presenting our wallet, oh, sorry, our Chinese Credit Card, for their use…
I need to catch up on financial postings, but the net-net is that after a load of jumps up and down, last week ended about no change of significance. Now, today, we’re plunging on this news. Just nutty. Mostly standing aside and waiting for smoke to clear and / or the EU to figure out if it will become the new Socialist Holy Roman Empire, or go back to being independent countries responsible for their own fate and using markets to coordinate themselves.
Also wondering how long before the Mercantilist Socialist Government of China will decide that bailing out the USA excessive Social Government Spending via loans is a bad idea… Same pattern, different scale and different players, so a different time scale. Eventually the same outcome, I’d expect.