Sunday, May 19, 2013
Germany Reaps The Cash Of Austerity. They Are Some Brilliant Dirty Bastards
For months I have been following the current goings on in Europe especially as it pertains to the current so called "Euro Crisis". Countries like Spain, Italy, Portugal, etc... in exchange for loans from the European Bank have had to undertake a series of austerity measures that have buried these countries and their citizens in a misery which many are comparing to being on the losing end of a bitter war. These austerity measures include severe cuts in government jobs, sharp reductions in pay of up to 40 percent, crushing concessions by unions all to bring these countries in line with European Union targets of lowering the debt these countries owe. According to the theory, these austerity measures are supposed to, somehow lead to growth in the borrower countries economies. Who is it that is the biggest proponent of austerity? Germany and its leader Angela Merkel. According to them there is no other course but for the countries that are in trouble but to radically slash expenses, sell off private industries like water and electric companies and to not spend a red cent that absolutely, positively does not have to be spent. Now most can understand Germany's reluctance to throw money into the pot of the struggling nations without getting its quart of bloodin return. Germans are hard workers ans savers. But most of all it has saved billions on billions of dollars by not giving its people a raise since Ricky Riccardo first sang "Baba Loo". So what does that entail? A shirt made in Germany costs much less than another EuroZone country that thought it best to maybe give their people a little better standard of living than a worker in a Chinese sweatshop.So whose shirt are you going to buy? So Germany's economy has very little debt compared to many others. But you may say "Isn't in Germany's interest to see all the countries of the EuroZone doing well instead of now entering it's 9th straight quarter of recession since 2011? Shit no! Germany takes advantage of borrowing costs from the Euro Central Bank that are practically free. But here's the real rub. Everyone one in the Euro wants to park their money in a safe place right now, even if that means making no interest. An example, lets say you want to park some of your money in an Italian bank. To get your money that Italian band is going to have to pay somewhere about 5.7% interest because the Italian bank seems more risky. Park that money in a ultra safe German bank and you know what you get? Practically nothing. Your parking it there just so you don't lose money , not because your looking to make money. So Germany has this big storage of money.Now why would the want to see an end of austerity measures in other countries? Why would they want to see countries like Spain, Portugal and Italy do better? Because then people may want to start parking their money in these banks instead of Germany. The damn Germans will stick to these austerity measures for as long as they can. They will sit and watch millions on top of millions live like dogs while they have full stomachs. They will see riots in the streets of Greece, and Italy and chuckle. But watch Germany, your numbers haven't been all that good either recently. How do you export to a country that cannot buy, even at your slave-gotten prices. Ms. Merkel, I thinks it's about time you took your emphasis a bit away from rigid austerity and give some measure designed for growth a try or else, as we say in America it might come back and bite you in the ass.