https://www.scmp.com/comment/opinion...-borrowed-time
Quote:
Germany has given up the ghost on trying to control the ECB’s monetary excesses. There seems to be a palpable sense of “if you can’t beat them, join them” for the sake of presenting a united front and avoiding a damaging public row. In the pre-euro days, tough Bundesbank policies and the strong Deutschmark were solid anchors of the European monetary system, implacable yardsticks which helped other European countries govern their own performances.
These days, Frankfurt’s fiduciary responsibility seems to have been quietly abandoned in favour of political expediency, economic survival and a softening in standards. The ECB has abandoned Germany’s monetary rigour, spending its way out of recession through debt monetisation and underwriting Europe’s explosive fiscal expansion in the process. The forefathers of the Deutsche Bundesbank would turn in their graves.
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Like in the US subprime crisis, it’s fine while the charade lasts, but once confidence begins to wobble, that is where the danger lies. It’s a bit like the tale of the emperor’s new clothes – once someone calls attention to the reality, the pyramid of risk starts to implode.
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What I have started to fear some years ago already is that when the moment of truth has come, what states' politicians will do to not drown. It is known to rescue swimmers that people drowning can even easily panic and then kick and poull other sudner water in desperation for keeping their head above the waterline, rescue swimmer I think are beign told to knock them out them (at least Kevoin Costner said that in his The Guardian movie). I fear that states will turn openly authoritarian and totalitarian to enforce their fiscal regimes and the expropriation of private property.