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germany debt clock

“The US has heavily criticized German austerity measures in recent days. Now, Germany’s finance minister has fired back, warning against becoming addicted to deficit spending and noting that history has made the country extremely wary of national debt and inflation.”

In a culture whose economy is predicated on ‘consumption’, any ‘austerity’ measures can only further dampen that consumption and thus contribute to the continuing decline in the economy.

World-wide, the financial system has yet to deal with the trillions of dollars in ‘derivatives’ still out there as ‘toxic’ debt. The values and priorities of our leaders could not be more evident as they literally shovelled – and continue to shovel – trillions of public dollars to those otherwise failed financila institutions where ‘austerity never entered their lexicon.

And yet, in the next breath, and because of the public debt taken on to absolve those same financial institutions from their criminal behaviour, they solemnly speak about “how we must get this debt under control,” and how we must all be prepared to make sacrifices, and tighten our belts! And so the class war continues unabated with the wealthy, enabled and assisted by their political hirelings, taking ‘no prisoners’.

Germany Warns US Not to Become ‘Addicted to Borrowing’
Der Spiegel 06/25/2010

Conflict, it would seem, will be everywhere in Toronto this weekend as world leaders gather for the G-20 summit to discuss possible reforms to the global financial system. Already, new British Prime Minister David Cameron has said that he may end up trying to avoid sitting next to German Chancellor Angela Merkel on Sunday.

“I’m not sure if that will be safe. We might get a bit carried away,” he said.

Cameron’s comments were, of course, tongue in cheek. He was referring to Sunday’s World Cup battle between Germany and England in South Africa. Still, there is little doubt that sparks will fly this weekend, particularly when it comes to competing views on fiscal policy between Europe and the United States.

Indeed, German Finance Minister Wolfgang Schäuble poured more fuel on the fire in a contribution published Friday in the business daily Handelsblatt. Referring to US demands that Germany abandon austerity in favor of additional economic stimulus measures, Schäuble said that “governments should not become addicted to borrowing as a quick fix to stimulate demand. Deficit spending cannot become a permanent state of affairs.”

Five important points

The governments gave over every single cent of the “bailout” money without so much as sending one single forensic accountant on the premises of the auto companies and/or banks and/or financial institutions. Every single person who wants money from the gov’t has to provide an accounting to show why they need the money.

2. The only proof that there was a financial problem consisted of claims to the media by the global corporations and government.

3. The ‘cure’ is now that government take the money they gave away to the global corporations, from us citizens.

4. The requirments for the cure, as dictated by the G8 and the G20 are: a) voluntary; b) have nothing to do with preventing another “financial crisis.” c) are all to do with taking money from us in the form of a “tax” to cushion yet another “financial crisis.” d) their plan for us is to let the pension plans the banks let go to hell in a handbasket, work their own way out of the mess.

This entry was posted on Tuesday, June 29th, 2010 at 9:18 am and is filed under All Posts, Europe. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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