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|05-30-2011, 04:50 AM||#1|
One Who Soars
The following is a Google-bot-translation of a German report in weekly magazine FOCUS.
There is also a Euroshima: The European single currency, Germany has so far costed more than 2.5 trillion.
As on 11 March in the northeast of Japan shook the earth, the sea water retreated and came back as a tsunami, the media reported in the first place on this event. When shortly thereafter the consequences for the Japanese nuclear power plant Fukushima were visible - the media were there: daily and weekly. On 27 April, it was: The cost of rebuilding after the earthquake and tsunami disaster in Japan might lead to the rating agency Standard & Poor's in more than 400 billion euros.
A little reading on the other hand, the euro, although its damage to Germany is a multiple of Fukushima. Although the "parachutes" (Rettungsschirm=bailout guarantees) that for a year to throw flashes over Europe, as "damage" are perceived. Your liability coverage currently stands at 1542 billion euros. Germany accounts for 391 billion. German shares of which 15 billion for IMF guarantees, cash deposits in the European stability mechanism (ESM) 22 billion in credit guarantees for the ESM 168 billion, IMF bailout Greece 2 billion EU rescue plan Greece 22 billion, government bond purchases by European Central Bank (ECB) 26 billion, 114 billion in liabilities to the ECB, ECB loans to commercial banks: 22 billion
No one mentions the actual damage € for Germany, which occur since its introduction (1999) - every year.
Since we started the added interest, the borrower must pay the German because the former soft-currency countries pay less for euro adoption. That was a stated goal of the Euro: All these "Minderleister" (net receivers with incapable economies) reduce the cost of capital, so they could catch up by interest subsidy, so improving their productivity, the "core" countries (Germany and some neighbors). What did any of them - the interest rate subsidies were found to be pure purchasing power transfer, ie, as "consumer help".
I recall the case of Italy, which entered the Euro with debts more than 100 percent of its gross domestic product, government debt in the euro (60 per cent were allowed). Its interest rate for this decreased as of January 1999 to eleven percent five. The savings of six percent was reasonable given the level of public debt in the first year, 70 billion euros - and since then every year.
Conversely, the German borrowers pay higher interest rates since then than in the DM-time. Finally, the banks must get their income from somewhere. Looking to Switzerland, with the capital market of Germany in the DM-time had sustained similarities, we come to a higher interest for German borrowers from an average of two percent per year. A German borrower must currently pay for a loan over 36 months despite four percent of first-class collateral, repayment every quarter. A Swiss homeowners, however get a mortgage over three years to 1.75 percent annual interest, one repayment at the end. With a loan volume to be adopted in Germany from 5000 billion euros, from 100 billion a year makes - about four percent of our GDP of 2,500 billion €.
But that is not our only "hidden" power to the Euro system. Rather, we pay in foreign trade surpluses the "southern flanks-under-performers" who have until now not managed to achieve, the surplus in foreign trade. We pay them (the ECB) uncovered imports. Gives another six percent of our GDP or 150 billion euros.
These ten percent of our GDP since 1999 we carry year after year. Makes a total of more than one year's GDP. In return, the potholes in our roads increase, to reduce the municipal services and the more expensive trips to the state railway. Who reports it?
"To be with the parachutes to stop. They protect only foreign creditors of foreign states. "
But our government sees fit all, and the Bundestag as it nods. Incomprehensible to me. We no longer have Sunday sermons, but Realpolitik.
First, we must insist on being able to run back to our natural site cost competition. If we have more modern than other jobs, we need to bring the associated lower costs to the market.
Second, we must stop subsidizing by excessive bank other euro countries the interest.
Third, we in our foreign trade surpluses must again be allowed to keep for us.
Fourth: To be with the "parachutes" to stop. They cause in the affected economies, which are all partially by the inflated price for them outside of the euro has become uncompetitive, no improvement in competitiveness, protect only foreign creditors of foreign states.
Germany needs to pre-Euro-status of the European Monetary System "to return and called for reforms to the EU. For the German people the ultimate responsibility lies with the elected parliament, and this must stop to evade her.
The Secret of Happiness is Freedom. The Secret of Freedom is Courage. -Thucydides