No country is economically more dependent on the survival of the euro than Germany: the export powerhouse thrived because Eurozone countries could borrow unlimited amounts of euros to buy German goods. But now that the gravy train has stopped in front of a mountain of unmanageable sovereign debt, Germany finds itself at war—with itself.
Participants in the G-20 meeting in Cannes thought it would be a relaxed affair of photo ops, handshakes, and fancy dinners, interrupted by rubber stamping the Grand Plan of bailing out Greece, bondholders, and European banks. But then Giorgios Papandreou, prime minister of Greece, fired his bazooka. And the Greek extortion racket was back on.
The German parliament has a historic opportunity to say no to the bankers: it gets to vote on expanding the European bailout fund to €1 trillion, though it had just been expanded to €440 billion. Since no one has any money, it will be in form of leverage, the very mechanism that has wreaked so much havoc already.
Berlusconi, waiting for money.
Germany and France kissed and made up before the G-20 powwow in Paris last weekend. A contrived show of unity to boost the markets. And it worked. But already, Germany is sniping at France again. Over money. Because German taxpayers might have to subsidize a French company. Via Greece.
Fighting over taxpayer money.
The Eurozone debt crisis gets worse. Bankers interfere. And the truth comes out:
“The dreams to see the crisis ended by Monday couldn’t be realized,” says the German government. Easy solutions have evaporated.
“We’re not doing this for the Greeks, but for us,” said Angela Merkel amidst a cacophony of doomsday scenarios. It’s all about propping up German banks and exporters. For the French, however, the European debt crisis doesn’t seem to exist.
The White House is lobbying European governments to shut up and do something. No more disputes in public. No more disagreements over fundamental issues. The world is collapsing, and it’s time to act boldly. Hank Paulson’s extortion racket is back.
Geithner gets smacked down, and Germany might be threatened by a populist movement to exit the E.U. For the first time ever, a clear majority of Germans no longer sees any benefits to being part of the Eurozone. And two-thirds reject aiding Greece and other heavily indebted countries.
And BMW blinks. With sales of new vehicles approaching 18 million units in 2011, China is the largest car market in the world, far ahead of the US. No major car maker would want to miss out on the opportunities in China. Yet, there is a problem: Pressure by the Chinese Government to transfer the newest technologies.
The right of German religious organizations to terminate an employee for violating their moral codex, even in deeply private situations, has been affirmed by the Federal Labor Court. And they’re among the top employers in Germany! If you’re a divorcee and work for a Catholic hospital, you may get fired if you remarry. Heck, you may get fired for getting divorced.