The day that Germany spoke

I remember the day in 1990; and basic arithmetic subtraction will tell you that was twenty years ago.

Worldwide Internet was in its infancy but international banking suddenly bloomed.  Money started flowing faster than the speed of light; transactions doubled, trebled and then started multiplying tenfold at a time.

Just more than ten years later 911 put a small red light on but right after that the world went bonkers; when there was not enough money they simply switched the printing presses on.  Economists and investment bankers started adding more zeroes behind their transaction forecasts [and their performance profits] and all reason was cast into the wind.

Nobody believed a cantankerous old sod like me; that is until a few days ago.

Germany has just reminded the World that everyone must not expect the Bundes Republic to jump over the cliffs of Dover with them.  The warning was loud and clear: Germany has not forgotten about their Deutsche Franc.

Why else do you think we suddenly hear voices from Europe mentioning the possibility that the Euro may not last forever?

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5 Responses to “The day that Germany spoke”

  1. christophertrier Says:

    Die Bundesrepublik — one word, and in German republic is republik.
    But that is enough for pedantry… There are a lot of variables in this.
    First, Germany is constitutionally obligated to have a balanced budget — that means that each euro it sends to Greece, Spain, Ireland, or Portugal is a euro that must be cut from Germany’s budget. It is also becoming increasingly clear that the solvency of some of Germany’s ten biggest banks is based on creative book-keeping which holds Icelandic bank and US subprime debt at face value among other “unique” financial concepts.
    Jeremy Warner, usually a thick-o and a shill for major firms acknowledged that this economy is beginning to unravel and that it might be the least dire consequence as well as the least untenable.

    • Ike Jakson Says:

      Christopher

      Yes, I did think about the Bundesrepublik, and knew it but in the end decided to Google for the benefit of others who don’t know and decided to use the Google spelling, with apologies to you.

      Our news was full all day about the Euro being at risk, not only as reflected in the exchange rates but actually as legal tender.

      The original intention of the EU as an economic union to combine forces of trade was a good idea but the marriage of politics is a foolish thing. I cannot see it lasting another ten years.

      But I like the description of “creative book-keeping.”

  2. Sour dough makes the Joneses eat stale bread from Wall Street « Ike Jakson’s Blog Says:

    […] Ike Jakson’s Blog Ike on People Affairs, assisted by Uylen Spiegel of the Global Mirror « The day that Germany spoke […]

  3. bydesign001 Says:

    In the meantime, of course, our American president is rushing to join the club. This is total madness. You simply cannot spend your way out of these situations.

    • Ike Jakson Says:

      Thanks Lady BD

      You say “You simply cannot spend your way out of these situations.” And the sensible ones will agree with you but others seem to think that you can. It’s a mad sad World we live in.

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