I am getting tired of listening people on the radio drone on and on about European solidarity, shared European responsibility, the joint construction of the European project, investment in European growth and other ways of saying that Germany should pay for everything.
Or they do that leftist thing of pointing out how people are hurting and how Germany has all this money, implying that we should be able to just take it.
Here's the thing: Germany will not simply pay for PIGS deficits. It doesn't really matter how good your moral arguments that they should pay, they won't. The German voter does not want to pay any money to the Portuguese state or the Greek state.
Also, calling Germans Nazis, however subtly, is not a good negociation tactic (anymore, it used to work with a previous German generation). You are probably better off calling them the callous rich, but it won't work either.
I have repeatedly argued that the ECB is at fault and should push for monetary expansion (money is way too tight). But this need not, should not, involve transfers from Germany to the PIGS. In fact, I think the solution probably involves the ECB buying a whole lot of German Bunds (and whatever the Dutch call their bonds) with newly printed money.blog comments powered by Disqus