Sunday, September 29, 2013

Germany’s strange parallel universe

Merkel’s plan for euro zone deeply depressing
Martin Wolf Sep 25, 2013
Angela Merkel’s remarkable election result confirms her position as the dominant politician in Germany and so also in Europe. It is assumed she will get the euro zone she wants: Germany writ large. That may prove right. Alas, if she does, it is going to be a deeply depressing spectacle.
Wolfgang Schäuble, Germany’s finance minister, laid out the view on which Berlin’s current policy is based, with sobering clarity, in the Financial Times last week. The doomsayers, he argued were wrong. Instead, “the world should rejoice at the positive economic signals the euro zone is sending almost continuously these days”. If depressions and mass unemployment are a success then adjustment in the euro zone is indeed a triumph. Mr Schäuble accuses his critics of living in a “parallel universe”. I am happy to do so rather than live in his.
Ambrose Evans-Pritchard of the Telegraph has provided a colourful rejoinder. Kevin O’Rourke of Oxford and Alan Taylor of the University of California, Davis, offered a sober assessment, concluding that a break-up is not unthinkable. ….. All these countries are going to end up with gross public debt at more than 100 per cent of GDP. This will be hard to manage......To Read More.....
My Take - Quite frankly, I not quite sure what this man believes. The E.U. is doomed, and its collapse will be a reaffirmation of what I call "The inevitably factor: When reality reaches its zenith"!

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