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Old 12th Jun 2012, 11:57
  #1448 (permalink)  
Join Date: Apr 2002
Location: In the circuit
Posts: 177
Not sure Germany’s got a lot of choice. They can either:

1. Keep paying to bailout failed economies thereby keeping them in the Euro and sustaining a falsely low (from their perspective) exchange rate which means they can export and keep the German economy growing

2. Stop paying bailouts, let the Euro collapse, return to the DM (or smaller Eurozone) where the exchange rate will be high and their exports uncompetitive forcing the country into recession

Their strategy seems to be the former achieved by forcing the rest of the Eurozone into a political and economic union that nobody wants and nobody voted for. I think the PIIGS have seen that actually they will shortly be the tail wagging the dog and they are beginning to call the shots. The Greek election is going to be fascinating
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