Marshall Auerback on Germany’s choices and the likely outcome.
So whilst many Germans might think they want a smaller, more cohesive euro zone without the troublesome profligates, the policy elites in fact recognize that a “United States of Germany” under the guise of a United States of Europe, actually suits their aspirations to dominate Europe politically and economically. Which is why the outlines of a deal along the lines of increased ECB involved as a quid pro quo for greater German control of fiscal policy across the euro zone, is emerging. It’s the equivalent of the golden rule: “He who has the gold,rules.”
Not a good outcome for Ireland either apparently as he goes on to quote Warren Mosler:-
And the austerity looks likely to not only continue but also to intensify, even as the euro zone has already slipped into recession.So from what I can see, there’s no chance that the ECB would fund and at the same time mandate the higher deficits needed for a recovery, In which case the only thing that will end the austerity is blood on the streets in sufficient quantity to trigger chaos and a change in governance.” (our emphasis)
At least we will have bought some time to prepare for an exit to our own sovereign currency as described by Pilkington and Mosler.
