SUBSIM Radio Room Forums - Germany is the 'schmucks' of europe...

To my great unbelief today I read in the news that after Poland some days ago said it voluntarily no longer plans to introduce the euro as soon as previously demanded (they now delayed it at least for several years - i wonder why ;) ), Estonia however has been accepted into the union - at the same time when the commission is warning of upcoming high inflation in Estonia.

Obviously they have learned nothing both on EU and Estonian side. I do not know Estonian economy, what I am about is that it is strajnge to think abpout such things like new members and how to grow in club size in times like this. If Estonia has a stabile economy, their government must be very stupid to join the union now. But if they expect to get problems soon, it explains why they want to join the club: they eye for the bailout.

It is also in the news that the commission now wants a bigger say in national budgets. Great - more power accumulating at the very top, forming effectively this European superstate that has zero, none, rien, nada democratic legitimation by any european voter, and that at no cost I do want.

The big winner again are the banks, especially the French banks (who have a heavy hand on the Greek market), for the bailout will come at the cost of interest rates that add to their profits. Also, with the ECB now buying garbage bonds by poltiical command and thus effectively printing money, inflation will raise. This sgain helps the French who so far have shown not much entusiasm to tackle their debts, but can practically reduce their value the more the faster inflation is climbing.

The union is a pure debt union now, a transfer union that neither forms a stabile currency, nor any need for corrupt economist regimes to do their homework. It is to be assumed that maybe this was the goal behind at least the recent years' policy if not all of the currency project, at least from the perspective of those that now profit from the card balance for any current and future bailouts. The existence of the bailout network also will help to damp critical nation'S ambitions to enforce unpopular cuts at home that would enrage their voters, like now in Greece. why should they save instead of spending if they know that the schmocks in Austria, Germany and some others agreed to forever pay for them if the going gets too hot.

One also should note that the nations now act with fundamental lack of rrason. when the markets do not will any more credits to critical countries, due to the risk of not getting back the money, now the countries olike Germany have to give them those credits. That makes the nations acting more silly than the banks. the losses of banks became externalised and now are the losses of the taxpayers in the paying nations. It also means that countries like Germany will take bigger debts themselves, too, which will revenge itself in the future.

Regarding Greece, it is insolvent, nd it will not be able to pay back the money it now sucks out of othger EU nations. I give it zero chances to be saved, becasue the cuts the Greek government are not far-leading enough alöthough they may already be hurting the private Grrek taxpayer, pensioner or emplyee, but the calculation by the Greeks where to raise additional taxes could be raised is already being shown to be far too optimistical. These projected additonal incomes for the state, by all reason, better should be expected to be only around 30-40% of the now projected sums.

In practically all critical nations the numbers show that their national budgets will remain highly dificitary even if all their debts would not create any interests they must must service. It is illusory to assume that the raise of debts will be stopped, not to mention to reduce existing debts.

No matter how you look at it, the big looser in all this is Germany, Germany, and again: Germany.

Winners are the banks being engaged in the critical countries, and France (destroying the sovereignity of the ECB to make it available for political manipulation in French interest has been a years-long project of theirs). Winners also are the potential bancruptcy candidates, who are allowed to live on and on at the cost of those countries' taxpayers who pay their bills.

At high risk are all those holding long-running state bonds.

Nuke the EU. :down: