The German Delusion
The desperate attempt to keep the Euro together is really setting the stage for sending Germany into a Great Economic Depression. Merkel now wants to raise the tax rate to pay for all her bailouts of Europe. She cannot comprehend that raising taxes to support the Euro is reducing disposable income and reducing the German living standard of the people no less fueling greater unemployment. All she looks at is trade and Germany is suffering because the system is seriously in trouble. With more than 50% of municipal government insolvent and tax increases needed to bail that out, the cost of supporting failed political theories is reaching staggering levels.
The Russian sanctions and the Euro combined are about ready to collapse the dream balloon they floated of Euroland into dust. You would think anyone with a pocket-calculator would figure this out that something has to change. Politicians are dangerous creatures for the devour whatever exists to support their lifestyle at the expense of everyone else. They are aggressive carnivores for they will strip the meat from the economy right down to the bones. Unfortunately, they will continue on this path because they are incapable of admitting a mistake. Society always pays for the mistakes of its leaders. Therein lies our worst nightmare.
Disclosure: None.
Germany is very benevolent for letting all other Euro members feed off of them already. The sad fact is that, just like kids, unless you teach them that what they are doing is wrong and the ramifications of it, they won't change their behavior. The EU needs something to make their members at least try to have a sustainable budget, we won't even go so far as to say a balanced one, and keep their debt under control. For many such as Greece, their debt is now so big there is really no solution to their woes besides debt relief. And even then, there is no guarantee that they will not just do the same thing tomorrow. Their spending far exceeds their ability and willingness to pay.
"EU needs something to make their members at least try to have a sustainable budget" I agree. But what?
Thank you for your thoughtful response Mr. Kil Woong.
The EU's issue is likened most to an issue of State vs. Federalism. Unfortunately the EU is only a financial agreement and thus there is no federal power to force enforcement. Thus, as it stands it is almost doomed to some sort of failure until the members agree upon a format where the EU can mete out punishment because rewards seem only to encourage more bad behavior since the cost is distributed among the many.