Edit : Sometimes you write to fast for your brain to keep up. As I wrote that ECB bigshot Jean-Claude Trichet is hoping to succeed Nikolas Sarkozy, a few neurons must have temporarily misfired. I was of course thinking of Dominique Strauss-Kahn of the IMF. It really is all the same with these politrucks though, since every major economic powerpeddler in Europe seems to have had their finger in pushing Germany to approve the Greece bailout. I hardly doubt that the IMF had some say as well. Still - right should be right, especially when throwing this kind of stuff around. Text duly updated to reflect reality.
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The tension between fiscally and monetary prude Germany (all is relative) compared to the rest of the Eurozone is becoming more and more evident. The metaphorical gloves are coming off, and things are starting to turn nasty.
How else is one to explain that Mr. Smaghi of the ECB board has publicly tried to lecture Germany for acting too slow and not being supportive enough when it came to the Greece rescue. And is he aware that the European Monetary Union stands and falls with Germany? It is my belief that the rest of Europe has come to believe that Germany will never again be a sovereign nation, and that they will always allow the rest of Europe to push them around, because they so love the European Union and its monetary experiment. However, I see increasing evidence that Germany is getting more and more fed up with the attituted of France, Italy, Greece and the rest of the deficit douche-bags.
And today, Der Spiegel runs a story that top central bank members in Germany believe that the ECB decision to start purchasing Greek government debt was in fact a French Plot to rid their own banks of worthless Greek Debt. Might a certain Dominique-Strauss Kahn of the IMF, aiming to replace Nicolas Sarkozy, have had some influence over the ECB dealings? And why did Jean-Claude Trichet do a 180 on monetizing debt? But regardless of the answers to these questions, France will hardly get the last laugh, because any conspiracy would without a doubt lead to the instant German bail from the monetary union, and France would have to go down in flames with club med.
Is the political elite of Europe laying the groundworks for future geopolitical tension in the 21st century? One has to wonder. The only positive thing that I can think of right now is that a lot of Brussel Bureucrats would be out of a job, would the EU project collapse. Always something.
Thanks, Hans. Do you see the possibility of a German/Russian alliance as recently posited by George Friedman of Stratfor?
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