GERMANY AGAIN: ANTI-KEYNES, PRO-MIDDLE CLASS
Yesterday I blogged about the German point of view during the European economic woes, and I'd like to follow yesterday's reference to articles appearing in the Christian Science Monitor with another one:
European debt crisis: Germany's fight against Keynes
There are again some paragraphs here that deserve closer attention:
"Twenty years ago, the German people reluctantly sacrificed the Deutsche mark for the euro, even as then-Chancellor Helmut Kohl championed it as a step toward European unity. To reassure domestic skeptics, Germany insisted that the European Central Bank be sited in Germany so that its monetary bias would remain dominant.
"In light of this hesitancy, Germany’s current policy becomes clearer. It has set out to convert the euro into a worthy heir of the Deutsche mark. Indeed, many Germans still yearn for the return of their stalwart currency.
"Today, many in the United States are arguing that European stability will only come about if the European Central Bank were to exercise the same level of “courage” shown by the US Federal Reserve in 2008 – when it printed money in unprecedented amounts to paper over a collapsing economy. These voices now call on Germany to adopt an Anglo-American-style “quantitative easing.”
"Berlin has steadfastly resisted these efforts. Meanwhile, it reacts enthusiastically toward any moves that would extend its influence over government fiscal policies throughout the continent.
"Germany recognizes that it has the potential to break the entire continent’s addiction to Keynesian currency debasement. Such a Europe could offer the world a real distinction from the economic policies of Washington."
That, in short, is one of the arguments I've been attempting to make over the past few months and years, namely, that there are deep fissures within the so-called New World Order crowd, and those deep fissures are philosophical in nature, not merely a tactical disagreement over techniques or methods. Berlin is politely, but firmly, saying no to London, New York, and Washington.
Note also that this German approach is actually one that strives to create and protect the middle class, that class that created the German economic powerhouse during the imperial period, and the same class that was wiped out in the post-World War One period by the imposition of measures dictated precisely in London and Washington. The class precisely targeted by the actions of the Anglo-American financial elites.
There will be an inevitable result should London and Washington succeed in pressing their "quantitative easing" measures on Europe: Berlin will simply not change a successful economic policy, and gravitate more and more towards the BRICS nations, while trying to maintain its position in Europe. That is a rapprochement, both economically and geopolitically, that neither London nor Washington can afford to see happen, and Berlin knows this. It is evident in and calm but firm position that Chancellorin Merkel has repeatedly emphasized in European summits.
Frankly, while I do not live in Europe and particularly in those countries affected by Germany's austerity policy, it must nonetheless be acknowledged that Berlin has a point: the vast credit defaults swaps, the illicit profligacy of the funny money polices of the rest of the West, have self-evidently been an abject failure. Germany is simply holding the rest of the west accountable for it. And in the final analysis, who can blame them?
See you on the flip side...
Help the Community Grow
Please understand a donation is a gift and does not confer membership or license to audiobooks. To become a paid member, visit member registration.
Germany is a multi-facetted phenomenon. What is overlooked is the origin and nature of its peculiar, indigenous “social-market economy” that is in a way unique on this planet, after Japan which nearly shares its principles. It’s success is a ‘mirage’, vividly visible in times of socio- and politico-economic crises. It has nothing to do with free market liberalism. See this for a profound critique: https://mises.org/daily/1932 and a different perspective here: http://mises.org/daily/3635. Without knowledge of some backgrounds the German ‘phenomenon’ can’t be understood. The last few lines in the latter article show where Germany is heading, within a patchwork of nation-states by some called “United Europe”. Bear in mind that at present frontiers are being restored to ‘prevent (im)migrations’: http://www.bbc.co.uk/news/world-europe-13171403
No doubt that Germany didn’t suffer from the “political corruption” applied by political factions in the -since 2008- collapsed Med-countries Spain, Italy and Greece. Countries that were lured into the Euro-Zone, led to believe their entry had ‘advantages’ (not for them, but for Germany). Portugal, Belgium and Ireland have slightly different problems, as do have several of the former East-Block countries now joining ‘Europe’. Firstly: to verify and appreciate the concept of ‘political corruption’ see this: http://wiki.nolesvotes.org/wiki/Corrupt%C3%B3dromo . The thought that Germany and their dominance in Brussel’s European Council can oppress their “One size fits All”-philosophy upon others, creating a social chaos in the first place with misplaced ‘austerity’ measures against their (German) concept of ‘growth’ (read Von Mises Institute articles in links above), I hold for absurd and/or catastrophic. Nextly: it’s not Germany, but the Euro (the common ‘political’ currency without fiscal and social backbones) under rigid German-France ‘control’ that is the centerpiece of the disaster that struck most countries in Europe, outside Germany and Holland.
Finally: bear in mind that Greece, Spain and Italy have demographical problems (aging, massive unemployment (25%) and frozen labor-markets), whereas Spain fails a solvent banking industry. Virtually all their banks are bust on a construction boom between 2001 and 2007 due to large freedoms for banks (see the ‘corruption map’ in link before to understand) and by miscalculating the intentions of several million of imported workers from South-America who didn’t or couldn’t buy the homes in fact built for them. Which at the same time reveals a misaligned educative system contributing to vast youth unemployment (50% of the group age 18-32). The Euro is the magnifying glass for Germany’s ‘success’. As soon as one or more countries leave the Euro (2013?) that dream will be over…
Why follow anything? People are so prone to follow the latest fad whatever that seems to be and the media is the best way to spread that nonsence. Taking responsibility for once action is for so many people as foul swearing. That for me is the real problem. The problem is not am I sold a lie but have I bought a lie.
And I am sorry to say most of us like buying lies if it makes us not responsible. For the moment it is still a majority that chooses not to be responsible but the group that is waking up is growing. Lets hope it stays growing and momemtum will take over and at least we choose something we are willing to be responsible for and change it when it doesn’t work.
This also assumes that we are adults and the elite did (and still does) a very good job of making a majority of people be emotionally tantrum people if they don’t get there way, instant gratification is the norm and most of us are completely addicted to that. It is not nazism, capitalism, communism that is the problem that is just packinging.
Our addiction to instant gratification is.
Dr. Farrell, the difference is that the Bundesbank had ONE mission: keep inflation down, and that has transmitted to the European Central Bank. That mission supports the middle class because it rewards thriftiness.
The Federal Reserve has TWO missions: keep inflation down AND maximize employment.
These two missions have some built-in tensions; sometimes, it’s impossible to do both. This leads to some pretty wild boom/bust excursions.
Today endet in Nürnberg/Germany the 5th conference of raw materials. There met the industrial elite of Germany and Russia and decided to reinforce their exchange. Germany is interested in “seldom soil/earth”, rare materials, used in new technologies (cell phones, computer, …?, …?). Germany offers good and periodical payment and scientific exchange. Because of the lack of raw materials, Germany developed recycling technologies that allows a better exploitation of these materials.
thank you for your thoughts. It is something that I am also watching with interest, but had not thought of that perspective before.
I live in Scotland, your may be aware that there is a political movement to obtain Scottish Independence, with a referendum to be held in 2014.
The latest edition of the Economist has a fear-mongering anti-independence cover illustration. This has not gone down well; http://www.newsnetscotland.com/index.php/scottish-news/4783-youll-regret-insulting-scotland-first-minister-tells-skintland-magazine-
What I think they are thinking about on another level is that:
a) London is the lions (banksters) nest
b) Independence might break their Monetary Rule
c) Expose them as fraudsters.
I see little evidence of the people of Scotland waking up and becoming aware of the money issue in more terms than just ‘oh, Scotland couldn’t go it alone…blah…blah…no money….blah…get in debt….etc’.
As an Independent Nation we might just create our own currency you know! Unfortunately the SNP (governing Party) Manifesto for Independence put Scotland Under the British Crown with the Monarch as Head of State, continue to use the UK Pound. That is not an Independent Nation, me thinks….
Well if you’ve managed to get a chance to read this comment, thanks….
Again, we are seeing the two sides of the economic coin – Keynes and Hayek were friends at Oxford, and even stood guard together during the Blitz. They adopted opposing poles of economic theory, at least poles in the capitalist realm, and the recovery of Europe, the US, and Japan after WW2 was founded exclusively on Keynes work.
Then, almost like Austrian clockwork, in the 1970s, Keynesian economics suddenly stopped working, for reasons no one understands. The switch to Hayek was part of a conservative “revolution” paid for by wealthy conservatives working in concert. Over one billion dollars was funneled into the US from one “former” Japanese war criminal alone, using the Moon church and its friendship with Reagan to buy American media. This was all elegantly orchestrated and carried out, as the last 4 decades have witnessed – the consolidation of media into a very few conservative hands, changing of laws to benefit corporate interests versus the common person, the gradual conversion of US culture into one which echoes Nazi Germany more and more each day – all planned and carried out by supposedly “loyal” American leaders.
There’s an old Scottish saying (by way of Star Trek); “Fool me once, shame on you. Fool me twice, shame on me.” They don’t go on to a third time, and neither should we.
This generalization of every political ideology that people don’t like, into the category of “Nazis”, is comical. Reagan was an American Conservative, not a Nazi. Nazism was a German third position, defining itself in opposition to both, Western Capitalism, and also to Communism. Nazism even went so far as to define itself as being unique and distinct from other forms of Nationalism. That being said, I see no evidence whatsoever of this claim that American culture echoes Nazi Germany. Both parties of the Republicrats are anti-White, and reject the racialist component of Nazism. The Jewish owned media, and their holocaust industry, cranks out holocaust documentaries, and are held to absolutely no standards of investigative reporting, but rather they have a free license to say anything they want about WW2, so long as it paints Germans as being crazed lunatics’, supporting Nazi atrocities. The FBI and other law enforcement agencies literally hunt people for their opinion, if they dare call themselves “Nazi.” Anytime I’ve ever seen so called “Neo Nazis” try to distribute their literature, they are literally shouted down, and harassed until they leave. They may not book rooms to have meetings, because those who rent such rooms are afraid to do business with them. I hear about them coming to town to speak all the time, and every time the Hotel cancels their room, because some group of Libtards throws a fit. I always think to myself, “These people can’t even meet in private to discuss their opinions?” In most Western so called “free countries” if you say anything that can be considered “Nazi sounding” you will go right to jail. Just try it in Germany and see what happens. Yet somehow, these leftist American Marxists keep claiming that America is “Becoming more Nazi” All this, while America is promoting Marxists Multiculturalism, the Communist egalitarian Star Trek ideal of utopia by government enforced equality, the Communist ideal of equal wealth, by government redistribution of wealth, Affirmative Action, so call anti-racism, which is really just a code word for anti-White, and their genocide program for Whites, Destruction of the private sector, Government takeover of private property, big brother police state, Soviet style committees, and government agencies to watch over you, expensive Marxist universities, and licensure to work is dependent on proper Marxist brainwashing at one of these universities. I could go on and on, but I won’t. American culture simply does NOT echo Nazi Germany in any way, shape, or manner. In my opinion Americans watch too much TV, and too much Star Trek. America is in every single way becoming more Communist!
The Holy Roman Empire anyone or as it is named in Fullmetal Alchemist Central Germany finally inherits the mantle of the Roman Empire afther all the centuries of roadblocks against it.
There is always a price to be paid for foolishness. The foolishness of the Keynesian crowd will one day have to bow to the reality of their folly. We may see Germany become the financial pacesetter in the NWO. Again, refresh my memory..Who won WWII?
I wonder if the Germans built this monolith that amateur stargazers found on Mars.
If you look closely you can see a group Nazis giving a Sieg Heil. It has to be Nazis right? What else could it be? The Sleestak? 🙂
you bet they did….
Isn’t that a rerun ?
Personally, I think Germany should just say screw it, join the BRICs, install a public central bank, and print their own money debt free. Only reason they don’t is because they know that the Jewish owned media companies would go on a wild frenzy, trying to paint Germany as being anti-Europe, and they would say that Germans are Nazis. Who is the corn god, and who is the debt god here? It seems today’s Babylon Banksters, are no different than the ancient Babylonian’s who couldn’t read the writing on the wall. “Your empire has been divided and given to the Medes and the Persians.” Today it says, “Your Empire has been divided and given to the Germans and the Russians.” Add to that, A Ron Paul America, burn down the Federal Reserve, and print our own money debt free, and we could really get some stuff done. We could actually stop running around the world, bombing countries and murdering people for ABSOLUTELY NO REASON!!! I think maybe too, the Evangelicals might be disappointed, because that looks more like a peaceful transition where thinking rational people, assert a common sense solution to problems, rather than a bloody apocalypse, and the prophetic fulfillment of a stupid 1984 psyop, designed to enslave humanity.
Merkal being a physists is a proper economist trained in known facts not therories known to be false that benefit the parasite class of babblers. .
Germany is in good hands.