Der Spiegel: Euro collapse = Doubles German unemployment, 10% decline in GDP

Watching CNBC, unnamed German Finance Ministry sources say if Euro collapses, it would double German unemployment and cause a 10% decline in GDP, source Der Spiegel.

Closest article here:
www.spiegel.de...

One doesnt need any economist to tell the truth of that fact.

When EU member govs toe Merkal's line on austerity, it only means less spending, which equals less spending not only in EU, but around the world as well.

Our world and civilisation are built upon trade. When trade halts, all comes to a stop. More so espacially for those whom halts it. EU will suffer, and as for Germany, which had built its civilisation, wealth and economy on trade with others, will be the ones to suffer the worst.

Even worse is the competitor cheap, corrupt and low quality China CCP govt picking up the leavings and cherished brands known for quality at basement prices. Notice that they don't fund govts, but only buy up equities - resources, and through it will be able to make demands and directions on the economic pursuits of all Europeans.

Nothing wrong with that, as european slaves had long been under the collar chain of bankers and elites. Only thing is, the new masters will be far worse, for the CCP have no checks and balances in their rule. They are tyrants and rule of law only meant whatever the tyrant wakes up in the morning and say it is.

Dissent or improvements will be curtailed or silenced, for they have a history of slaughtering such citizens or making them 'disappear' into the night, even up to today. Unions or even the basic human right to negotiate on wages and benefits on sustainable living with dignity does not exist with these new rulers.

They cheat on economic data under a patronage and corrupt system, and with monetary supplies, can freely print as much paper money as they wish that the west with check and balances would never dare to even try with a watchful and unfearful humanity.

What had Dr.Merkal done to mankind, with her continued belligerance to drive EU to flames and all europeans to suffer by not sharing debts and allowing growth?

Sometimes...the insignificant nobody me fatalistically feels that we this current generation and world are on a lighted wire to a detonation...It's..no...longer...a matter of correcting mistakes...perhaps ..too late...due to our greed, selfishness and apathy....a retribution price to be paid...Fukishima, Climate change, Iran nuke, Israel-Palestine, China-tibet-south china seas, Syria, Eu..etc...

There is no need to depend on even Mayan or biblical prophecies for amageddon to happen. The evidences and awareness for those not braindead are right in front our faces daily...

Either we remain selfish, apathetic and watch our world disintegerate....or we this generation including the old whom prefers the current status qou of enslavement collars for ILLUSIONS of security, wisely embrace courageously what is to come and try to take as much of the necessary pain and suffering, to shield the innocent next generations whom trusted us unconditionally to do the right thing for mankind.....

reply to post by Dbriefed


If one buys into the idea that the Euro is doomed regardless (which I do believe), then Germany faces the ultimate Cath-22 here. Either lengthen the life of the Euro by continuing to be, really, the sole buttress against the smaller EU countries failing... meanwhile building even more exposure/risk for the ultimate collapse, or step back and allow it to collapse now while your exposure is somewhat manageable.

Merkel has played a loser's game here and, soon, will find herself in the same position Sarkozy found himself in... voted out by her own people because she sold out their interests to other EU nations.

Originally posted by burdman30ott6
reply to post by Dbriefed

 

If one buys into the idea that the Euro is doomed regardless (which I do believe), then Germany faces the ultimate Cath-22 here. Either lengthen the life of the Euro by continuing to be, really, the sole buttress against the smaller EU countries failing... meanwhile building even more exposure/risk for the ultimate collapse, or step back and allow it to collapse now while your exposure is somewhat manageable.

Merkel has played a loser's game here and, soon, will find herself in the same position Sarkozy found himself in... voted out by her own people because she sold out their interests to other EU nations.

Or, the third option, start trading bailout Euros for gold collateral, and when it crashes and everyone goes back to their currencies, Germany either has a gold-backed Euro or a gold-back Deutschmark.

All of these unemployment figures and whatnot are true, but they're of no real concern to Merkel. She has one term left, and will go out with as much loot as she can whilst doing her masters' bidding. The figures are only published to goad the German people into voting against their own self-interest by convincing them they have hope of maintaining their lifestyles via the bailouts of other countries. It won't work, ultimately, but it will buy time, and more importantly, sovereign bullion.

I can understand the conundrum that the German People are facing now, while EU is tethering.

Option 1

The German People is right to reject any further supporting of bailouts of trouble other EU states' banks or even loaning to other EU People. Germany alone DOES NOT have enough to fund anyone, thanks to gambling, corruption and recklessness of the EU banking class including even german banks. NO ONE else that kind of money combined today in our world.

Those funds in Germany belongs to the German People, their pensioners and savers. Take that away and the German People WILL STARVE.


Option 2

The German People is equally right to comprehend that if EU is not saved with bailouts and loans for responsible growth, it is only a matter of time before German savings will dry up a well, for there will be on one left on Earth to buy German goods, or any nation's good for that matter.

Our civilisation is built upon trade and fully dependent on one another. Once a huge market stops its monetary circulation, it affects all. Example:- Germany sells coal to China, which China uses it for their industry to manufacture goods to Europe. But EU drys up with no growth, China has no one to buy its products, and germany has no buyers for its coal, leading to german retrenchments and even industrial collapses.

Dr Merkal is a physicist, a person of science. She views event and situations solely based upon scientific rigid laws, which is a problem of all world leaders, for they presume themselves alone masters of world. They aren't. There is NO GENIUS of Civilisation on Earth.

But there are many humans with individual skills in the different aspects of civilisation - religion, secularism, economics, science, history, arts, politics, etc, but they need to come together to share and discussed, and only then can they find a solution to crises.

Dr Merkal's scientific analysis is to let EU take responsibilities for its own actions ( which actually were the reckless actions of bankers and not the common people), let it burn to the ground, and had choosed Option 1.

Good luck to the German People. Chosing either Option 1 or Option 2 will still screw the German People and the world.

There is an OPTION 3:-

Keep up with the illusion of bank stability - Print more money to shore up the banks, devalue world currencies (BRICS had been insidiously doing that anyway, taking away wealth from foolish westerners), flood the world with money to circulate, BUT at the same time, have more oversight regulations on reckless banking once stability is acheived.

No doing this only option, the world will see food resources go rotten, mineral resources uptapped, human capital resources starved. When humankind have nothing left, they have nothing left to loose. We will only start blowing up each other to hasten for a merciful end ourselves.