Is The Eurozone A German Scam? The Right And The Left Should Be Concerned

I get tired of hearing that right wingers are responsible for fighting austerity in their nations. At the least, we need to define their version of right wing politics in the light of right wing politics in the USA. In the USA, right wingers want massive austerity and cuts to social programs.

Ron Paul has come out saying he doesn’t really like Social Security. He wants to cut 60 per cent of the food stamp budget. That is not what I get from the Euro version of the right wingers. Those guys are tired of austerity. And it appears that many left wingers, socialists, like Hollande of France, are also against the idiocy that is the Euro and the Eurozone and the austerity that comes with it.

You don’t have to be labelled “right wing” for opposing the financial new world order in support of national sovereignty of nations!

The problem with austerity is that it does challenge MainStreet, and causes grief for the masses. Austerity is a poison that is being forced upon the Eurozone so that one day, Germany will go in to the Euro Bond agreements and each country will guarantee the debt of the Eurozone. But without the Germans being involved, there is no unified Eurozone.

Here is where we stand now. The Germans are the takers, the lenders, the sellers of goods. I made a couple of comments on the article 14 Reasons France is Under Fire here at BI:

“You don’t have to be a right winger to be a Euro sceptic. You just have to understand that without a national union a currency like the Euro cannot work. Germany wants to take the benefits of the Euro but does not want to guarantee debt through the common Euro bond. So, really, Germany is the country most responsible for this failure of the Eurozone. First she was the primary predatory lending nation and now she does not want the guarantee the debt that she helped to create!”

and in response to a fellow who said the Germans would eventually come around to Eurobonds:

“What are the Germans waiting for in adopted the Eurobonds then? The austerity push will be over before Germany gets her way in depressing all the other nations. Even the Dutch have grown tired of it.”

Well, my Eurozone friend came back with this statement:

“The problem with you, Gary Anderson, is that you still believe that Germany is the cause of all the world’s troubles. When will you understand that that’s not the case? Countries freely joined the Eurozone, no one was forced. And the same is true about loans, which, by the way, weren’t provided by Germany, but by multinational corporations, which in some cases have their headquarters in Germany. How on Earth can you blame Germany for the problems a Greece? They lied their way into the Eurozone, evaded taxes on a massive scale, lived beyond their means for decades and time and time again refused to do something about it. The euro isn’t the problem, mismanagement is. If you’re in favour of currency debasement, debt monetization and loose monetary policy, then yes, the euro might seem like a joke to you. But if you’re actually in favour of fiscal soundness, low inflation and responsibility, the euro is the best thing since sliced bread. It actually forces governments to live within their means and the Eurozone has a truly independent central bank. The Fed is just a branch of the United States government.”

I would argue that the Fed is a private central bank as well. The important issue I have with Germany and this Eurozone anonymous fellow’s statement is that Germany loaned easy money, and claims to be fiscally responsible as she is irresponsibly allowing her banks to lend money in a very irresponsible manner. It is just like the banks did in the US housing crisis. The blame for bad lending always rests with the lender!

Fiscal soundness sounds good, but the game Germany plays is as follows: Germany doesn’t allow lending of easy money to German citizens. Her Homeownership ratio is low. She has risk if there is inflation because many folks rent. But Germany does allow easy money lending abroad and did so on a massive scale with German banks becoming the most levered in the world during the housing boom years.

So, to say that Germany is blameless when she takes from the Eurozone, and profits from the Eurozone without wanting any of the risk associated with the Eurozone is just stupid. People hate the austerity imposed by Germany because they hate the German attitude of superiority in these matters. You don’t have to be a left or right winger in order to hate this attitude the Germans have. They have made out like bandits in the Eurozone.

One other anonymous fellow summed it up with great insight:

“The Eurozone has become more about taking control of nations than it is about trading with them. They sure are sick of been dictated to by overpaid unelected suits, once the people get a chance to make important votes it will be curtains for the Eurozone Technocreeps, and they know it. Pretending all these problems are a Right or Left issue is bollocks.”

There are some writers at Business Insider who are making a big deal about the right or left fight against the Eurozone. But anyone who cares a bit about national sovereignty should be very concerned about the Eurozone. Until Germany actually accepts Eurobonds and the Eurozone acts as one nation under debt, then the Euro is simply a big joke.

And the bankers have reason to want the Eurozone to be unified, so that they can be guaranteed a slush bailout fund from a Eurozone ECB that will cease to exist if the Eurozone ceases to exist. And it looks like many of the banks that would benefit from the Eurozone would be the German banks, the easy money banks.

So it is in the national interest of Germany to actually become part of the Eurozone debt guarantee by backing Eurobonds. It makes no sense for Germany to take any other view unless the ultimate aim is for German banks to be bailed out and then a German exit from the suckers who listened to her and fell for the scam. And it looks like just a big scam to me as it now stands. The Eurozone is just a big German scam.

Prove me wrong.

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