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Is Germany Actually Preparing To Leave The Euro?

For a long time, most analysts have believed that if someone was going to leave the euro, it would be a weak nation such as Greece or Portugal.  But the truth is that financially troubled nations such as Greece and Portugal don't want to leave the euro.  The leaders of those nations understand that if they leave the euro their economies will totally collapse and nobody will be there to bail them out.  And at this point there really is not a formal mechanism which would enable other members of the eurozone to kick financially troubled nations such as Greece or Portugal out of the euro.  But there is one possibility that is becoming increasingly likely that could actually cause the break up of the euro.  Germany could leave the euro.  Yes, it might actually happen.  Germany is faced with a very difficult problem right now.  It is looking at a future where it will be essentially forced to bail out most of the rest of the nations in the eurozone for many years to come, and those bailouts will be extremely expensive.  Meanwhile, the mood in much of the rest of Europe is becoming decidedly anti-German.  In Greece, Angela Merkel and the German government are being openly portrayed as Nazis.  Financially troubled nations such as Greece want German bailout money, but they are getting sick and tired of the requirements that Germany is imposing upon them in order to get that money.  Increasingly, other nations in Europe are simply ignoring what Germany is asking them to do or are openly defying Germany.  In the end, Germany will need to decide whether it is worth it to continue to pour billions upon billions of euros into countries that don't appreciate it and that are not doing what Germany has asked them to do.

German Chancellor Angela Merkel’s Christian Democratic Union party recently approved a resolution that would allow a country to leave the euro without leaving the European Union.

Many thought that the resolution was aimed at countries like Greece or Portugal, but the truth is that this resolution may be setting the stage for a German exit from the euro.

The following is an excerpt from that resolution....

"Should a member [of the euro zone] be unable or unwilling to permanently obey the rules connected to the common currency he will be able to voluntarily–according to the rules of the Lisbon Treaty for leaving the European Union–leave the euro zone without leaving the European Union. He would receive the same status as those member states that do not have the euro."

So was that paragraph written for Greece?

Or was it written for Germany?

That is a very interesting question.

What is clear is that the status quo cannot last much longer.

Voters in Germany are definitely not in the mood to give any more bailout money to other nations in Europe, but if Germany is going to continue to stay in the eurozone many more bailouts will be required in the coming years.

Meanwhile, Germany is rapidly losing control over the rest of the eurozone....

*Greece has implemented some of the austerity measures that have been required of it, but many others have not been implemented.  In a few weeks there will be a national election, and parties that are opposed to the austerity measures are surging in the polls.  It is likely that the new government will be much less friendly toward Germany.

*The Spanish government is already defying the budgetary requirements that the EU is trying to impose upon it.  Spain is definitely going to miss the debt targets mandated by the EU, and the Spanish government has absolutely no plans of making more reductions to government spending.

*The upcoming election in France could be absolutely crucial.  Nicolas Sarkozy is not doing well in the polls and the new French government could totally wreck the recent fiscal agreement that the members of the eurozone recently agreed to.

The following is how Graham Summers recently summarized the current situation in France....

We should also take Schäuble’s statements in the context of Angela Merkel’s recent backing of Nicolas Sarkozy’s re-election campaign in France against hardened socialist François Hollande, who wants to engage in a rampant socialist mission to lower France’s retirement age, cut tax breaks to the wealthy, and break the recent new EU fiscal requirements Germany convinced 17 members of the EU to agree to.

Obviously Germany has been trying very hard to keep the eurozone together.  But the German government also believes that if it is going to be bailing everyone out that it should also be able to set the rules.

So what happens if the rest of Europe tells Germany to stick their rules where the sun doesn't shine?

Well, Germany would be forced to make a very difficult decision, and Germany appears to making plans for that eventuality.

For example, Germany recently reinstated its Special Financial Market Stabilization Funds.  This money would be used to bail out German banks in the event of a break up of the euro.  The following is from a recent article by Graham Summers....

In short, Germany has given the SoFFIN:

  1. €400 billion to be used as guarantees for German banks.
  2. €80 billion to be used for the recapitalization of German banks
  3. Legislation that would permit German banks to dump their euro-zone government bonds if needed.

That is correct. Any German bank, if it so chooses, will have the option to dump its EU sovereign bonds into the SoFFIN during a Crisis.

In simple terms, Germany has put a €480 billion firewall around its banks. It can literally pull out of the Euro any time it wants to.

If the rest of Europe continues to defy Germany, then at some point Germany may decide to simply pick up the ball and go home.

Germany is the strongest economy in the eurozone by far, and if Germany were to pull out the euro would absolutely collapse.  Whatever currency Germany decided to issue would be extremely valuable.  Such an event would actually have some tremendous side benefits for Germany.

Right now, the German national debt is denominated in euros.

If Germany left the euro, the value of euros would plummet and would likely keep declining as the rest of the eurozone fell apart financially and Germany would be able to pay back its debt in rapidly appreciating "marks" or whatever other currency it decided to issue.

All other debts in Germany would also be denominated in euros and would also be repaid with a much stronger currency.

Are you starting to get the picture?

Yes, Germany would likely have to bail out German banks if it left the euro, but leaving the euro could also prove to be a tremendous windfall for Germany.

If Germany chooses to say in the euro, it is going to be faced with extremely expensive bailouts of other countries for as far as the eye can see.

How expensive?

The following is from a New York Times article....

Bernard Connolly, a persistent critic of Europe, estimates it would cost Germany, as the main surplus-generating country in the euro area, about 7 percent of its annual gross domestic product over several years to transfer sufficient funds to bail out Europe’s debt-burdened countries, including France.

That amount, he has argued, would far surpass the huge reparations bill foisted upon Germany by the victorious powers after World War I, the final payment of which Germany made in 2010.

If Germany leaves the euro, that does not mean that the dream of a single currency is dead.  Germany could just let the rest of the eurozone collapse and then invite them to join the new German currency eventually after all the carnage is over.

At that point, Germany would have all the leverage and Germany would be able to dictate all the rules.

What is clear is that the status quo in Europe is becoming extremely unacceptable in Germany.  The Germans do not intend to give endless bailouts to other nations that do not appreciate them and that do not intend to follow the rules.

At some point Germany may actually decide to walk, and there are lots of whispers that Germany has been steadily preparing for that day.

For example, there are persistent rumors that Germany has ordered printing plates for the printing of new German marks.  Philippa Malmgren, a former economic adviser to President George W. Bush, says that she believes that this is already happening....

"I think they have already got the printing machines going and are bringing out the old deutschmarks they have left over from when the euro was introduced."

Increasingly, it really is looking as if Germany is actually preparing to leave the euro.

If Germany did leave the euro, the consequences for the rest of Europe would be catastrophic.

The euro would rapidly drop to all-time lows.

The global financial system would be thrown in chaos.

Countries such as Greece would lose their major source of bailout money and would be forced to default.

The recession in Europe would likely deepen into a devastating economic depression.

So there would be a lot of downside.

But Germany would fare much better than most of the rest of Europe, and in the end Germany would be left holding most of the cards.

Keep a close eye on the upcoming European elections and the evolving political situation in Europe.

If things don't go well for Germany, at some point Germany may just get fed up and walk away from the euro.

Stranger things have happened.

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  • Paranoid

    To be truthful I no longer care. Just get it on!

    • luke

      paranoid , i too stopped caring about all of this fear based ,collapsed culture we live in ,keep the focus on yourself and your family ,the rest is all fear based bull ************

    • JustanOguy

      Right with you… I don’t care if the banks that lent all of the funny money for Greece and the rest to live the high life go under.

      In the long run, it would be best for the U.S. Economy anyways. When all of somebody’s money is paying interest on funny money, it means they don’t have the money to purchase products.

  • http://www.youtube.com/thepreparedpastor Prepared Pastor

    Complex societies being recent to human history, collapse is simply the return to the normal human condition of lower complexity.

  • Joy

    Germany is still feeling hard done by the former East Germany, which was far more expensive to bail out than anyone imagined in 1989. This experience alone means that the German people will balk at carrying the PIIGS on their back for decades.

    • Paul

      Nah,

      The takeover of East Germany was very lucrative. The West got all the patents and infrastructure and especially highly trained people for free.

      West German companies got East German companies for 1 DM and didn’t have to pay the debts those East German companies owed to East German banks. Those East German banks were written off or their obligations taken over by the tax payer.

      East German employees only get 68% of the salary of West german employees, even for the same job at the same company. And because all local competition was killed, supermarkets in the East now are more expensive than those in the West.

      Greece just got millions so they can pay for the tanks they bought from Germany. All paid for by the German tax payer.

      East Germany was beautified from tax money that went straight to West German companies, for making new pavements, roads and airports.

      Unification in 1991 saved German industry from the crisis of the 90s.

      After introduction of the Euro in 2001, most of German Exports went to Euroland. In 2005 Germany was exporting more to Eastern Europe than to China.

      Now in 2011, German companies can expect more profit to be made from taxpayers money through bailouts.

      Let’s see what 2021 will bring.

      • Count de Money

        Not at all.

        You have no idea what the place was like. I do because I was there multiple times. It was like going back 50 years in time. East Germany was a mess and twenty years later it still hasn’t recovered from forty years of “worker’s paradise”.

        Highly trained people? By Warsaw Pact standards, okay. By Western standards, not at all. Technology common in the West was nearly unknown and nobody worked all that hard. Ever hear of a ten year waiting list for a new Trabant? Even now there is still a stigma against Ossis as not being hard workers. If anybody bought companies for 1 DM, it was probably more than what is was worth.

        If East German workers got 68% of what Wessis got, it was because they were only 50% as productive and probably less than that. And what local competition? The place was Communist! There was no local competition at all.

        The West Germans dumped over a trillion dollars into the place because it was a wreck. The pavement on the Autobahns was the original that Fritz Todt laid down in 1936. Local roads between towns were cobblestones probably from the time of the Kaiser. Now you can’t tell the difference between the roads in the west and in the east. But in 1989 you could tell by your ass hurting.

        And don’t give me East Berlin as an example. That place was Emerald City compared to the rest of the country. If wanted to see the real East Germany you should have gone to cities like Erfurt, Weimar or Dresden.

  • Sid Davis

    Maybe not only will the European Union break up, but if we are lucky the union of States we call the USA will break up too. It happened to the USSR in the 1990′s when it became overextended and broke, and the USA certainly has followed a similar path so far.

    Centralized control is a complex and expensive task, and as energy becomes less available and more expensive there will be heavy pressure to return to less complex political arrangements. We simply won’t be able to afford the expense and waste inherent in centralized government, especially one that operates more on the basis of plunder and control rather than on protection of liberties. People are already angry and we are just entering the new paradigm of long term economic contraction under the weight of the fraudulent, unconstitutional debt based monetary system and reduced industrial output from lack of cheap energy to fuel it. Eventually the pain will be intolerable and violence will follow unless the federal government just closes up shop and fades into the darkness like the USSR did.

    The long term historical trend is for nations to break up into smaller units, with only the USA bucking this trend over the last 250 years.

  • Rain23

    A relative is in trouble through his own mismanagement. He asks to borrow money, enough that your family will have to tighten its budget if you provide it. You realize your relative is really in trouble so you make a plan and help him out.

    Shortly after agreeing to the loan, you run into your relative knocking back a Grande at Starbucks. You wave, juggling your umbrella and your commuter mug full of homemade generic coffee. He makes a face and says “I don’t know how you drink that cheap stuff.” He waves you to a chair and says “Sit down. You should relax more. Oh, thanks for the loan. I really didn’t want to start working 40 hours a week, or cut back on my paid holidays and my pension. We’re not like you guys. You LIKE to work hard all the time, you’re so serious and dull. Our family knows how to really enjoy life.”

    As you hurry away to get to work on time, you overhear him telling the barista what a Nazi you are, putting all those loan terms on money that should have been a gift anyway because you’re family.

    People like this empty your savings account, then turn up on a regular basis. “Sorry about the loan payment. There’s this little crisis and you have it to give so it’s only fair you share, right?”

    Germany’s just about ready to stop answering the doorbell, and I can’t say I blame them.

    • Michael

      Good analogy.

      Michael

    • N. Daniels

      Good analogy for a lot of the situations we are facing as a nation ourselves.

    • jox

      It is actually a very bad analogy. You americans love to oversimplify things, when reality is a lot more complex.

      While Germany exiting the Euro is certainly a possibility, I don’t think it is plausible. Germany has gained a lot within the Euro, and they know that with a new currency of high value their exports will suffer. On the other side, for the rest of Europe having a weak Euro is not necessarily bad.

      So, we will see, but my opinion is that german and greek leaders use all this arguments for agitating internal populism, but nobody is actually thinking in leaving the euro.

    • Mustard Seed

      You are so spot on!!!!!

    • CatNap

      You forgot to mention said relative then bad-mouths you to all the rest of your relatives and suddenly you’re no longer invited to Christmas dinner.

      Wonder how Germany thinks they will manage surrounded by pissed off “relatives” who want to TP their house…

      (Somehow doubting they will still be welcome in the EU if they leave the Euro.)

    • Highspeedloafer

      I’ve always heard, the best way to end a friendship is to loan a friend some money. This works well with relatives too.

  • http://www.TotalCollapse.com TotalCollapse.com

    BREAKING NEWS!!! Obama impeachment bill now in Congress…

    http://totalcollapse.com/2012/03/11/breaking-news-obama-impeachment-bill-now-in-congress/

    • Alasha

      Alex Jones has been talking abt this for few days… I suspect this if were even to get off the ground – it wud be like the Clinton impeachment… And he did not go anywhere

  • Richard

    That is SUCH A GOOD ARTICLE. No hype. No sappy tugging at the heart strings. No repetitious words ‘for effect’. No asking of rhetorical questions to dramatize. Just a simple statement of a monumental problem in easy-to-understand language, allowing us to draw our own conclusions as to the severity of the situation.
    Thank you a thousand times, Michael. Can you please keep up your new-found journalistic style?

    • Raymond Reason

      Yes it is a good article. But he is suggesting that Germany has the option of pulling out of the Euro. The US and the rest of the Evil Empire won’t allow it. It would trigger a financial derivative bomb.

    • Rowell

      If such silliness were true, Bush would have been impeached years ago.

  • whteshark

    Break it up! Why should German’s pay Greece’s bills? And why should Greeks surrender their liberty to unelected technocrats placed in power by European powers?

    How insane has the world become with this kind of juxtaposition?

    Here in the United States we have Obama and his minions–and Bush and the Republicans before him–spending like crazy but if anybody speaks up and ses it’s unsustainable they get labeled as anti poor or they’re racist or against women’s reproductive health because taxpayers don’t want to pay for somebody else’s birth control pills.

    Fact is even if we did pull our military out of every country in the world–which I believe the time has come as we’re near bankrupt–it will not save us from the iceberg entitlements have become.

    So, the band plays on and we rearrange the chairs on this fiscal Titanic.

    • jack sprat

      How soon before there comes a white knight on a steed?

    • Dave

      Well said!

  • nowwthen

    Remember how the Euro is working out whenever anyone brings up the subject of the Amero — the merger of the American dollar, the Canadian dollar and the Mexican Peso into a single North American currency — or any other hybrid version of the U.S. dollar. As pathetic as the dollar has become over the past 100 years it is still a reminder that we are still (for now anyway) a sovereign nation.

  • GermanyNot leaving

    Don’t think Germany will leave the euro and here is why;
    Bailouts are deeply unpopular in Germany, and for good reason, but they look like the cheaper path.
    it would be much, much cheaper for Germany to simply bail out Greece, Ireland, and Portugal outright (that would cost about 1,000 euros for every German man, woman and child in one swoop) than it would be for Germany to exit the euro zone (which would cost the average German 8,000 euros the first year and 4,500 euros thereafter).
    Source:
    http://www.washingtonpost.com/blogs/ezra-klein/post/could-germany-just-leave-the-euro-not-easily/2011/11/28/gIQAhvjn5N_blog.html

  • mark

    The Germans can work real hard to make real nice items, but unless they continue to extend credit or bailouts they will not have any buyers of their stuff. That is the trouble with an economy based on debt.

  • Jay

    If I was a German citizen, I would say “Let’s get out of the Euro this week.” No, not really. I would wait just a bit longer to leave when things were optimal for MY country
    Germany has sacrificed so much to the ungrateful politicians in their neighboring countries. Time to change the approach and move things in the right direction.

  • http://globalschoolchoice.com Scott Christie

    Nice article. I believe the German people are going to start driving the train soon. We will see the euro train jump the tracks very soon…

  • Gary3

    The European Socialists have been spending other people’s money without concequence for so long that they are dumbfounded when someone asks for something for their money. The EU slackers don’t have to agree to ANY German conditions, but the bailouts will stop and the Socialists can then create their heaven on Earth however they wish.

    If I was German, I’d say ******* the PIGGS (and France), why should I work until I drop so Greeks and Frogs can retire at 50(from useless make-work jobs)? Unless confident of a bailout, only a fool would loan ANYTHING to the PIGGS. Countries like Greece will NEVER be able to repay the bailouts, even if they wanted to (and let’s be realistic, they have no intention of repaying, EVER).

    • JustanOguy

      Well stated reality of the situation.

    • Dave

      This article and comment were Great. Southern Europe is toast and it is starting to burn.

  • Dr. Detroit

    Your the only alternative media guy that works and posts Sundays..you rock

    Charlie from Wide Awake needs to work Sundays to

  • Bone idle

    Read this article :

    The Germans are the losers in the EU game

    Germany can’t afford to leave the Euro and let the single currency break up They are owed to much money.

    • jack sprat

      The Telegraph has been told to keep playing. Meanwhile, the senior officers are at the ship’s davits, busily preparing the lifeboats for themselves. There will be no shared sacrifice. (Unless they’re hunted down like the fat dogs that they are.)

  • mondobeyondo

    Wouldn’t surprise me if Germany wanted to leave the euro.

    They are tired of bailing out debt-ridden broke European countries (just like the American people are tired of bailing out debt-ridden broke banks and corporations).

    At some point in time, probably right after Angela Merkel watches the movie “Network”, they’re just going to say “We’re mad as hell, and we’re not gonna take it anymore!” And then they’ll just go back to the Deutschmark.

  • luis

    Thanks micheal for all this blog information thank u so much

  • KieloByte

    Hallo,
    I’m from Germany and have been following your blog for some months now.
    I agree with most of your points in the article, but I think If Germany really leaves the Eurozone, the other countries suffering from the coming “devaluation-storm” would sue Germany to the death at the European Court and/or implement rules to kick off a country out of the European Union, aiming at Germany. The next would be measures of protectionism against the German industry.
    I don’t believe that Germany as a Nation and Part of the EU can leave the Eurozone.
    PS: And if we do anyway, the Britains would laugh their asses of for a decade, I guess ;) Just joking.

  • Paul

    It wouldn’t be the first time Germany goes it alone.

    In 1946 Adenauer effectively divided Germany into East and West by having a separate currency reform in the West, with the threat of the worthless old currency flooding the smaller east part of the country.

    Hence the immediate blockade of the borders by the Russian administration. (Remember: Germany and Austria were to be administered for 10 years by the allies after the war)

  • chiller

    If Germany was so smart, why didn’t they realize they were backing a bunch of losers in the first place? Seems to me one would want to intensify the vetting process BEFORE they were let into the EU, not after. Like buying a car over the internet just to find out it will cost you more than the purchase price to fix when you get it home.

  • BeenThere

    The book of Danial in reference to the divided nations of Europe says:

    “2:43 And whereas thou sawest iron mixed with miry clay, they shall mingle themselves with the seed of men: but they shall not cleave one to another, even as iron is not mixed with clay.”

    Many have tried. Charlemagne, Napoleon, Kaiser Wilhelm II and Adolf Hitler. All have failed. So too must this latest attempt fail.

    • Jessie Powers

      I don’t think that is just talking about Europe… The UN might be more direct, no country agrees with them on anything except nuclear war

  • marianne

    Who is this person riting this excellent articles? It is a pleasure to read it and what is the aim with the articles?

  • http://www.goldsenze.com/ goldsenze

    Proof that the U.S. government has been hijacked by a ROGUE global government. Repeal BRETTON WOODS TREATY and we will get out of the international banking, globalist union, United Nations, etc. Contact your senators and demand they put a bill in to repeal Bretton Woods TREATY Agreement….a little known government that was created, now known as the New World Order…illegally RATIFIED by the U.S. government in 1945.

  • GoneWithTheWind

    The thing is this is going to be a falling domino event but the dominos will fall from the center in every direction. Why is that important? Because it will all happen more quickly; less warning, less time to mitigate the effects. If it were Greece and then a few months later Portugal or Spain and then a few months later Italy or Ireland it would unfold in a “somewhat” manageable way. But if it is Germany then France will follow immediately and it will collapse in days or weeks at best.

  • madsr

    Spread the wealth, while resenting the wealthy. We in America send “aid” (bribes) to all these other countries to get them to do want them to do. They smile and say OK with their hand out. We fill up their hands and they for the most part do nothing. Germany is in the same shape saying, we will help if you will do this or that. They say OK until they get the money in their hands.
    Nation wise or individuals it is the same, if you don’t earn it you shouldn’t get it. We must at some point quit bailing out those in trouble, it’s called tough love!
    I was in business many years ago made a little money and thought I was rich, bought and spent like there was no tomorrow. Lost everything no cars, no toys, no house. Today I live well below my means, small house, 50k mile used cars for cash, toys are small and only for cash, grow a garden, planted fruit trees, have chickens I live cheap. Every penny is important. I am pretty well off today, yet I sell a few eggs and some fruit and veggies in the summer and fall to make a extra 40 or 50 bucks a week. I think most poor people would think I was being greedy because I don’t “need” a few more bucks a week I should give it to them because they “need” it. Well, I hoe the garden, I plant and care for the trees, I feed the chicken. They may be surprised if they did all that they wouldn’t need it either. You see if someone had bailed me out I would have never learned that valuable lesson.

    • Benjik

      Well said. An unintended but very real effect of our newly formed “bail-out society” is we have taken away the fear of failure, and subsequently, any sort of self-responsibility. You know our socioeconomic foundation is “bass-ackwards” when we reward failure and openly criticize success.

    • http://www.clearsay.net Scotter

      I wish more people thought the way you do. Perhaps a “culling” is near.

  • jsmith

    Maybe Germany in exchange for bailing out Europe, can regain the German territories lost to Poland, Alsace Lorraine, and form a union with Austria and Hungary? Oh oh.

  • Will

    I have one question. If Germany did abandon the Euro, how would that effect the United States and how quickly?

  • db

    This is totally off the topic, but I just wanted to thank the creator of this site for what he does(waking people up to preparedness). This past weekend while out shopping my one year old got some hand sanatizer in his eye. We had used some after shopping and when we flipped the lid to close the bottle a drop flew in the back seat of the car hitting him in the eye. Thank God we had my emergency bag with some bottled water which we used to flush it out. That situaton was a reminder that disasters come in all sizes. Thanks to sites like these we were prepared.

    • Michael

      db:

      I am thankful that people like you find value in this site.

      I work really hard on it and if nobody came to read the articles I would be really sad. :(

      Michael

  • comnenus

    Germany would do better by re-establishing a “Prussia”, consisting East Germany, the Russian-held Kaliningrad area, and the territories awarded by Truman to Poland on 1946.

    The kingdom of Prussia, a multi-ethnic kingdom headed by a descendant of the Kaiser (preferably female so it wouldn’t look too aggressive), using the Reichsmark, would soften the shock of Germany leaving the Euro while making a good escape venue for Germany if things go sour.

  • http://marriedwithdebt.com John | Married (with Debt)

    Very well researched. I hadn’t considered a voluntary withdrawal.

    I figured they might force others out.

  • http://lnx-bsp.net/ Tel

    “What is clear is that the status quo in Europe is becoming extremely unacceptable in Germany. The Germans do not intend to give endless bailouts to other nations that do not appreciate them and that do not intend to follow the rules.”

    Agreed, but you say this like Germany is causing the collapse. Germany is doing the right thing, by expecting others to follow the rules — otherwise you are left with abandoning the rules completely.

    Germany has other options open besides leaving the Euro, they could offer small payments to the struggling countries, not enough to bail them out, but just enough to tide them over (like foreign aid). This would discourage the weaker countries from leaving the Euro completely and allow Germany to encourage them back toward the part of productivity, without being foolishly overgenerous.

    “But Germany would fare much better than most of the rest of Europe, and in the end Germany would be left holding most of the cards.”

    Trade requires two parties to be successful. Germany has manufacturing superiority but lacks good food-growing land and needs raw materials, particularly oil. Germany has every incentive to keep trade channels open (by whatever means best facilitates that).

    • comnenus

      If Woodrow Wilson didn’t cheat Germany’s gain out of its hands on 1918 Germany wouldn’t have worried about that.

      It’s time to give back Germany its gains won on WWI and honor the Brest-Litovsk treaty after 90+ years.

  • deadby2020

    I see the ‘normalcy bias’ is alive and well in the ole’ USA…..

  • http://EconomicCollapse Already Gone

    na,na,na,na-na,na,na,na,hey,hey,goodbye!

  • Jerry

    Similar situations exist here in the U.S., with individual states.
    Texas and California for example: Texas which is traditionaly friendly to business,(low taxes,less regulation), much lower taxes for individuals and limited entitlements have barely felt the effects of this recent economic downturn. While stsates like California traditionaly (much,much higher taxes, unbelievable regulation and unsustainable entitlements),is completly bankrupt.
    Bottom line, states like Texas are growing tired of footing the bill. Socialism with its massive entitlements and pulverizing taxes to support them is just a complete failure. Eventually something has to give.

    • Gay Veteran

      most Red states get back more Federal money than they pay in, it’s the Blue states getting the shaft

      • Jessie Powers

        I would say the blue states give themselves the shaft :/

  • JustanOguy

    No reason for Germany to be paying for everybody else to be laying around living large off of borrowed money.

    And soon enough, California and Illinois will be the U.S.’s Greece and Portugal..

  • ScoutMotto

    Happy trails to you….

  • Jerry

    Gay Veteran,I was wondering if you could elaborate a bit on your comment.

  • antje

    Germany has become a morally bankrupt country. So even if they have money, they are still poor. No country can survive when living in such darkness. Read this for a real eyeopener on the moral state of Germany http://www.evangelsociety.org/guest/koerner-germany1pf.html

    • J.M.

      Yep and I guess the U.S. and the rest of the West is in so uplifting state…hint the rest is at Germany’s level or worse…

    • Jessie Powers

      Germany and uk are the only countries that have money in europe, And germany is actually one of the most “Moral” and friendly countries in europe…. I dont really see where your comment is intelligent

  • colin

    Todays the day! France has made its bed! The Germans will tell the French enough is enough! Live within your means! The Germans will leave the Euro. The Germans and British will continue growth after completeing their years of hardship. The Euro countries need to re-estsblish their ecconomies and could rejoin Germany in time when fit and at a correct level.

  • Tony Toni Tone

    The German Government – could (perhaps SHOULD) take decisive action against the banks in lesser economically viable countries int he Euro – by perhaps taking control of the banks that owe them the money, and ship the banks’ hard currency and gold to Germany, then selling off the shells to whomever wishes to pay up.

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