Merkel makes a mess of it

Stupid German crashes euro

goodbye, auf Wiedersehen?goodbye, auf Wiedersehen?
Just weeks ago all of the UK political parties had their own somewhat unrealistic hopes and fears for the future following the general election. A hung parliament was indicated by some polls, however, the variations between polls was too great to take this to heart and there were distractions. Typical was the term balanced parliament, this is ridiculous, what does it mean and what was wrong with the old term? A hung parliament means just that. But balanced implies beneficial equilibrium, this is contrary to what a democracy needs. It must be possible for a majority to make changes, did some media guru invent the term?

It's the same with the financial crisis in EUland. The EU elite clings to an unrealistic view of the future. Then they go on to use quaint terminology. They do so because of their lack of realism during the creation of the eurozone so it's now too late to be honest. Thus we see, at home and from 'our partners' the same delusions. The Lib/Con alliance has welded itself together in an act of mutual support as if to get away from the disappointment of the UK general elections, so we get the Nucoalition. This is as mad as what's happening within the EU and is going the same way. So the UK Nucoalition and the crisis in the EU are closer together than you might think, closer in both behaviour and absurd terminology.

Angela Merkel, very much the Queen Bee of the EU, is saying some stupid things. She is obsessed by the idea that her precious EU is being destroyed by square-headed monsters, people called Speculators. These people, she says, she wants "brought to heel". Now dear reader, any imagery involving uber discipline and jackboots is entirely of your own manufacture. Merkel goes on -

β€œTo some degree this is a battle between the politicians and the markets, but I am firmly resolved – and I think all of my colleagues are too – to win this battle.”

Put simply, what a stupid remark. She said that almost a month ago and it speaks volumes about her, Germany and the EU. The markets of which she is so dismissive are not an errant child or family pet to be disciplined but the very mechanism upon which her country is founded. How else can you explain the 'German economic miracle'? Merkel was first elected in 1990, Greece adopted the euro in 2001, obviously she is not solely responsible for the Greek financial crisis. However, she shares, along with all of the EU, particularly the eurozone and especially Germany, the blame for allowing Greece to get away with what they did, that is they cooked the books. To speak now of bringing Greece to heel is, in terms of her own political career, 20 years too late.

In all that time an immense trade gap has existed between Germany and other EU countries, Greece is just one. With the roads of Greece, the most dangerous in the EU, awash with German cars, it's a bit late now to wonder if the Greek rush to consume, founded on deceit, was wise. The Greek economy was an accident waiting to happen. When first spotted by the UK MSM, the liberal left gave Merkel the sort of brownie points now given to Obama. Her performance falls way short of the hype, even so she has just a bit more dignity than Sarkozy. His oh-so Gallic tantrum and threat to take France out of the euro was risible. France and Germany are always portrayed as the motor of the EU, the car analogy is reasonable in that in reality they are jointly the crap driver speeding recklessly on their way to a crash.

The bailout agreed by the EU, including non eurozone members like the UK, is not going to solve the problem. So Greece is in trouble, but other countries with their own difficulties will not be helped by making over such large amounts of money to Greece. It will weaken them too. But who will help them when, if, the time comes?

Back in the UK we now see that Nulabour had a scorched earth policy on the run up to the election. This ranks alongside the situation in Greece for stupidity. Equally so is hoping the present Deputy Prime Minister will be much help putting this right, Nick Clegg is an ex-MEP who cannot, like Merkel and Sarkozy, see the problem for what it is. A long way to go yet, it will get worse before its gets better too.

Update
Even more stupidity from Merkel, the German ban on short trades was bound to fail. The woman is mad, see HERE