When the final epitaph is written on the decline and fall of Germany, how will it review Merkel? With fond memories or the catalyst of doom? In the background of the war rhetoric against Russia, the European financial crisis continues to smolder where the stench is starting to be noticed as the Euro keep declining. European Central Bank continues to hold interest rates lower than ever before in a vain hope that someone will borrow from a banking system not interested in lending. Add to this mess, the ECB plans to buy dangerous credit securitization to save the banks, but this highly questionable that this will save anything. With various free trade agreements Merkel hopes on hope that some major international corporations will open up new possibilities and save the day. She ignores the global economic trend headed into recession and is thus praying only to false gods. None of this appears very hopeful and the burden upon the German middle class continues to grow. In a desperate measure, the EU considers simply plundering the ESM bailout fund, which was supposed to stimulate the ailing economies in southern Europe. Now France is bankrupt and the economic cancer is eating away at Germany undermining the Euro for that is all that is left to prop up a dying currency without a nation.
All these measures have one single thing in common – they are targeting Germans to pay for the upkeep of Europe. The German savers and taxpayers are being made to pay the reparation payments after all. They just do not realize that is what they are doing.
These steps are all moving down the path of the inevitable crash and fall of Europe. While there are those who want to think there will be no crash and fall admit there is a decline, but assume somehow all will be saved in the end – they just cannot articulate how. History begs to differ. The outcome of the current crisis can only lead to the crash and burn. It is Schumpeter’s wave of Creative Destruction that cannot be avoided.
