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Do the German public know what really is at stake for them?

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Do the German public know what really is at stake for them?

Postby Eurusd Trader » Sun Oct 23, 2011 8:29 am

Germany has many interests in the ongoing European debt saga.

From an economic point of view I will claim that Germany is the big winner from being part of Euro. The alternative to Euro for Germany would be a currency likely 25%+ higher in value – and a real threat to their enormous export income. During the Euro years Germany has likely benefited more than a trillion Euros from being part of a currency weaker than the one they would have had on their own. Most Germans do not recognise this benefit as almost ¾ of the population thinks that the Euro is a failure.

Now Germany is requested to help out solving the debt crises that the region is in the middle of – and in a way which the German public is not happy with. Polls show that around ¾ of the population is against helping Greece.
German papers have taken on a very tabloid approach to these issues and are very much to blame for – what I would call – a selfish approach to an issue which can only be solved being non-selfish.
The question is whether the Germans really understand that being cooperative in these questions – and in fact – being more than that in terms of helping out with a hand of leadership and capital – is very much in their own interest.

Much attention has been paid the Angela Merkel’s party and coalition party’s recent bad performance in regional elections. It’s not a surprise that they are doing badly when they are not able to get the real message through. And the real message should be that Euro is a gift to the country – as it has always been. Just put figures to this argument and calculate how many more unemployed people Germany would have had if it was not for their membership in Euro. Public opinion would likely look very different if reality was presented to them. The German public is not stupid but they need the facts.
It’s a surprise to me that these simple facts cannot be debated public – with emphasis on what they are. Instead it is a debate which is turned into one set by emotions and rather distasteful arguments.

Go on like this – and the Germans risk that some countries have had enough – and actually will leave the Euro – for reasons Germans might have underestimated. If they do so – Germany will be the biggest loser of all eurozone members. The more of the weaker economies potentially to leave – the stronger the Euro will be – and in the end it will be as strong as it would be if Germany still had the old German mark. Germany’s export would shrink and unemployment would accelerate.

German politicians know this and what comes through to me is that they try to play s game where Euro is to be kept floating with all its members in place. Weaker economies shall get help only to the extent of keeping them alive. As such the weaker economies will continue to have a negative effect on the value of the Euro, which is very much in the interest of Germany.

The question is: How long will it take before others are fed up and take the matter in their own hands?

So maybe the headline should read whether the German public are aware of what is at stake for them – not for the reasons the German tabloid papers are setting out – but for the reasons of German politicians playing a dangerous game in Brussels.
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Re: Do the German public know what really is at stake for th

Postby eklein » Wed Oct 26, 2011 11:12 am

Well written mate and oh so true!
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Re: Do the German public know what really is at stake for th

Postby DNorris » Fri Apr 20, 2012 7:41 am

I don't see really how Germany is the winner for bailing everybody out (basically paying everybody else's bills) or being loser because they're telling somebody else to pay their own bills. How come it's never come to anybody's attention that one country can be bankrupt using the same currency that another country is (but it doing just fine)?

Would you pay somebody else's bills due to their bad spending/management?
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Re: Do the German public know what really is at stake for th

Postby The Prince of Darkness » Sun Apr 22, 2012 3:30 am

DNorris wrote:I don't see really how Germany is the winner for bailing everybody out (basically paying everybody else's bills) or being loser because they're telling somebody else to pay their own bills. How come it's never come to anybody's attention that one country can be bankrupt using the same currency that another country is (but it doing just fine)?

Would you pay somebody else's bills due to their bad spending/management?


The problem is that if they don't then they are also doomed ;)

The problem is that how long they can keep on doing that :roll:
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Re: Do the German public know what really is at stake for th

Postby F0r3xMaster » Wed Sep 12, 2012 3:46 pm

I have a friend living in France and the Europeans are not aware of the impact of this crisis on their lives.
They talk about Greece and Spain, but they do not know that the may be the next ones to suffer.
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Re: Do the German public know what really is at stake for th

Postby mdenamul » Mon Sep 17, 2012 10:44 am

Germany has many interests in the ongoing European debt saga. From an economic point of view I will claim that Germany is the big winner.The German Public know what really is stake for them.
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Re: Do the German public know what really is at stake for th

Postby F0r3xMaster » Thu Oct 04, 2012 2:57 pm

Actually NO European country would be able to exit EU without losing a lot of money... it would be more expensive than trying to save the other countries.
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Re: Do the German public know what really is at stake for th

Postby kevin101forex » Tue Oct 23, 2012 4:18 pm

Vrey well. I couldn't agree more.
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