THE GERMAN ELECTIONS: SCHAUBLE OUT… FOR THE MOMENT…October 4, 2017
I've been meaning to comment on the German election results and what they might portend, but divining that will certainly be another case of high octane speculation, from start to finish. As is known by now, Mad Madam Merkel was returned to the Chancellorship. Hoch soll Sie leben, dreimal hoch! But enough of that. In referring to her as Mad Madam Merkel, I do quite deliberately mean to evoke images of the Disney cartoon character, Mad Madam Mim, for the physical - and policy - resemblance between the two is quite palpable.
But in spite of the way the election is being spun in some outlets, Frau Merkel returns as Bundeskanzlerin in a considerably weakened coalition government, and it remains to be seen how long this government will last. For one thing, the AfD (Alternativ fur Deutschland) Party, the party rejecting the wacky Gramscian multiculturalism agenda that, in the guise of refugee policy, seeks to transform German, and European culture, captured some 12.6% of the vote and 94 seats in the Bundestag. As for Frau Merkel's CDU (Christian Democratic Union) party itself, its share of the votes plummeted from 41.6% percent in the previous election to under 33% in this last election. The source of these statistics is here (shared by Mr. V.T.):
Notably, this means that only 3 in 10 Germans voted for Frau Merkel, a true measure of the popularity of her policies. Indeed her coalition with the Social Democrats has collapsed, and as Roberts points out in his analysis of the elections, Merkel - like Prime Minister May in Great Britain - has had to reach out to so-called "fringe" parties in order to form a government and retain the Chancelloship. All of this means her government is now extraordinarily weak, and could collapse under any modestly strong political strain. The tightrope she must now walk is considerably thinner, and required to bear much more weight. In this respect, the rest of Paul Craig Roberts' analysis is certainly worth pondering carefully.
Obviously the Germans are upset about Merkel's refugee policy, and unlike Mr. Roberts, I suspect quite a few of them, in the business community in particular, are as upset about Merkel's lapdog subservience to Washington's sanctions regime and extreme rhetoric against Russia. After two world wars of unbelievable scale and destruction between the two nations, neither power wants a repeat. So who can blame the Germans for being upset with these twin policy blunders? But there is one bit of news about those elections that I think is possibly even more significant for Germany and Europe in the long run than the dramatic rise of the AfD from nothing to 94 seats in the span of one election cycle, and that's this:
Herr Schauble's departure from Merkel's cabinet as the German Finance Minister is an indicator, perhaps, of several things, not the least of which is Merkel's weakened position and her utter lack of grasp on what is really happening in the global economic and financial scene, and Herr Schauble was one of the few finance ministers in the world who really "gets it," notwithstanding his austerity policies toward southern Europe. He well knows the "Goldman Sachs" game of pump, dump, implode, and buy for pfennigs on the Deutschmark. (Oh, and speaking of the Goldman Sachs game, members will definitely want to listen to the upcoming 3rd quarter wrap up interview with Catherine Austin Fitts, coming out shortly!)
Much more important than that, however, is that Herr Schauble knows something fundamental about the current state of the global financial system, and more importantly, about the central bank model. At a recent meeting of the economic powers of the world in China, it was Herr Schauble who boldly stated the obvious: "The debt growth model is over." Let that one sink in for a moment, for it means that the "finance-speculative crony crapitalism" model is over: there is no way to print out of it; growth must be in real production of real things, and not paper gains on virtual markets run by algorithms that, in effect, make "price" no longer a reliable indicator of actual human production and market realities. The "constant market intervention" model is over, and this is a lesson that Herr Schauble - almost alone of the world's major finance ministers - knows.
And now he's in a very interesting position as President of the Bundestag. It is, of course, the Bundestag that actually elects the Federal Chancellor.
There's something else Herr Schauble also knows, and that is, one cannot keep flooding Europe with barbarians who have no understanding of, nor sympathy for, European culture, traditions, and rule of law. In short, Herr Schauble knows that the policy is an economic disaster for Germany and for Europe, and that things cannot possibly continue on the same road. If Schauble starts giving credence and a sympathetic ear and voice to the legitimate concerns of the AfD, then watch out, for at that moment, all political bets are off...
Bottom line: he will either be marginalized even more, or he will re-emerge as a significant locus of opposition to the madness of Mad Madam Merkel and the globalist technocrats of Brussels. This is, for the moment, a man to pay attention to.
See you on the flip side...