GERMANY AGAIN: ANTI-KEYNES, PRO-MIDDLE CLASSApril 12, 2012
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:
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...