Or Maybe It Does Stink (Our Debt)

What, me worry?

The German debt agency was forced to retain almost half of a sale of 6 billion euros due to a shortage of bids by investors, sparking fears that Europe’s debt crisis is now even starting to threaten Berlin.

The German government is still resisting calls (from France and elsewhere) to allow the ECB to act more decisively.

“It is a complete and utter disaster,” one financial expert dude in London said. “And everybody has hurt feelings,” I replied. “And that’s the main thing.”

It’s starting to get ugly, folks, in other words. Uh, are we having a panic yet?

“The debt crisis is burrowing ever deeper, like a worm, and is now reaching Germany.”

We Hate Being The Hegemon

But somebody has to do it.

It wasn’t all that long ago that Germany knew how important it was in Europe but kept its mouth shut about it (while pulling the strings behind France’s back). Those days of semi-credible falsche Bescheidenheit (false modesty) are over, sort of. Now they continue to refuse to lead openly, but still pull the strings. Only France isn’t standing there anymore.

As shown once again during yesterday’s latest “rescue” of Europe, Germany makes the decisions while France still holds the press conferences, but the absurdity of this show is starting to lose a lot of its regular viewers. This formula has jumped the shark, in other words.

But as long as major contradictions keep on coming, everybody here in Germany is happy. You remember, don’t you? Germany fled into the EU to protect itself from itself (there was something about World War II a few years ago). Now it dominates Europe through its sheer economic power anyway, but still psychologically/socially/institutionally traumatized (and loving it), refuses to openly take the role history has assigned it. It prefers instead to publically turn its back on Europe (nobody on the street in Germany truly undestands or much cares about Europe) and concentrate instead on more important things at home like solar energy, local elections and not hurting coalition partners’ feelings.

In other words, Germany may clearly call all the shots now, but it still refuses to lead. Which is kind of clever, if you think about it. When everything ends up going tango uniform later, it wasn’t Germany’s fault.

Mit politischer Macht verhält es sich wie mit Millionen von Euro auf dem Konto: Man spricht nicht darüber.

Do as I say, not as I do

Believe you me, Europe, President Barack Obama knows what he’s talking about when he’s talking about debt.

And that is why he wants YOU to solve your eurozone debt crisis pronto. He is, after all, “deeply engaged” with European nations about solving the eurozone debt crisis, if less so about solving the American one, and is deeply convinced that European countries need to coordinate fiscal policies just like the American administration and Congress have not.

“Right now you have a single currency but you don’t have a single set of economic policies, and that’s created great difficulty,” the President said. “Like duh, we know all about that. Just look at us if you want to see what that kind of clueless leadership gets you.”

“Europa hat derzeit zwar eine geeinte Währung, aber es verfügt über keine gemeinsame Wirtschaftspolitik. Und das schafft große Probleme.”

Germany To Save Europe

Or maybe not, hard to say for sure.

But according to billionaire investor and currency-crushing “Man Who Broke the Bank of England” and therefore absolute expert on the subject George Soros (HIMSELF), “Only Germany can reverse the dynamic of a European decay. Germany and other countries with an AAA rating (sorry USA, better luck next time) have to approve some sort of euro-bond regime. Otherwise, the euro will implode.” And nobody wants an implosion around here or anything, I don’t think.

Soros also thinks that German Chancellor Angela Merkel’s reaction to the sovereign-debt crisis has been too slow. Like duh? Even non-billionaire types know that. But hey, it’s just like back home I tell ya, somebody’s got to not do it (got not to do it?).

Die aktuelle Krisenstrategie mit Krediten für Griechenland und einem von verschiedenen Ländern garantierten Rettungsschirm (EFSF) sei untragbar, schrieb Soros. So müssten Italien und Spanien mehr Zinsen für ihre Staatsanleihen zahlen, als sie selber von Griechenland für Stützungskredite erhalten.

 

Leaderless in Seattle

No, I mean in Europe.

Gee, this sounds just like back home. The president of the Federal Association of German Banks has strongly criticized European leaders in general and German leaders in particular for their lack of leadership in all things debt crisis.

They just let things drift along and then get driven themselves, he says. Like I said, just like back home.

“If the euro really does end up in trouble then it won’t be because of Greece, the EU’s weakest member. The monetary union will then fail because Germany, its strongest member, won’t fulfill its leadership role and says what needs to be done.”

“Wenn der Euro tatsächlich Probleme bekäme, dann nicht wegen Griechenland, dem schwächsten Mitglied. Die Währungsunion würde dann scheitern, wenn Deutschland als stärkstes Mitglied seiner Führungsrolle nicht gerecht wird und sagt, wo es lang geht.”

PS: Speaking of leadership, or the lack of it, the yes we cans seem to be dropping like flies these days.

Germans Meant “Work Harder”

Down south (in battling the Greek debt crisis, for instance). Not longer. A study based on OECD and Eurostat figures has determined that Germans work less annually than their no good and lazy Southern European neighbors.

The study indicates that “a German’s average annual work duration (1,390 hours) was substantially lower than for a Greek (2,119), an Italian (1,773) a Portuguese (1,719) and a Spaniard (1,654).”

But at least for that the Germans work more intensely, right? Not according to that study, they don’t.

But at least they mean well, or something?

“Germany’s productivity per head remains close to the average of southern European countries. Its hourly productivity rate is above average but not better than France or Greece,”

My Big Fat Greek Bailout II

Certainly not back by populist demand, the German government now seems prepared to stop the bitching and moaning long enough to support funding for the sequel to the first Greek Bailout box office flop and enable the EU to wrap up a second package of aid loans to help a struggling Greece or, to be more exact, the German banks that are now terribly exposed to a possible default there.

“Germany is considering dropping its push for an early rescheduling of Greek bonds in order to facilitate a new package of aid loans for Greece, according to people familiar with the matter. Berlin’s concession that it must lend Greece more money, even without burden-sharing by bondholders in the short term, would help Europe overcome its impasse over Greece’s funding needs before the indebted country runs out of cash in mid-July.”

But if you want any popcorn, you’re going to have to bring it yourself.

Größter Garant der griechischen Zahlungsfähigkeit nach dem IWF mit 30 Mrd. ist Deutschland mit 22,4 Mrd.

Germans Go Home!

“To Save the Euro, Germany has to Quit the Euro Zone

“When the euro was launched, leading German politicians used to argue, with evident relish (and much to the chagrin of the British in particular), that monetary union would eventually require political union. The Greek crisis was precisely the sort of event that was expected to force the pace. But, faced with a defining crisis, Ms Merkel’s government is avoiding airy talk of political union – preferring instead to force harsh economic medicine down the throats of the reluctant Greeks, Irish, Portuguese and Spanish electorates. This is becoming both economically and politically unsustainable. If the objective is to save the currency union, perhaps policy makers are looking at this from the wrong end. In the end, paradoxically, to save the European Monetary Union, the least disruptive way forward would be for the Germans, not the periphery countries, to leave.”

And in a related story…

Everything must go! The Greek government is selling everything it still has its debt-ridden little fingers on so guess who is now interested in buying Athens International Airport? Fraport AG (Frankfurt Airport).