Tectonic shift in Europe By Don Hank A political seismic event without precedent in recent decades is underway in Europe, where it was once almost forbidden to speak out against the EU and mainstream media dutifully reflected the will of the all-powerful central elites. The online journal German Foreign Policy, a left-of-center publication, has said that German media are turning against the Euro Zone (the monetary branch of the European Union), which they deprecatingly call "the German transfer Union" alluding to the fact that Germany has been obliged, very much against its will, to pay out bailouts to irresponsible governments like Greece's. Blogs like Wikileaks have already changed the way the West thinks and hence does business. Love him or hate him, founder Julian Assange has taken secrecy and PC almost off the table (secrets like those involved in the “global warming” scandal that exploded when hackers revealed the contents of emails sent to and from the University of East Anglia). Bad news for the military and government, good news for people who feel disenfranchised and beholden to the whims of Washington or Brussels. The discontent over the dictatorial European Union, which operates like the US congress, acting almost completely against the will of the people on important issues and importing millions of Muslims every year, granting them residency, welfare and near-immunity from prosecution in clashes with the police, is quickly coming to a head. Proof of this is that the mainstream media in Germany are no longer taking the PC stance on this and are finally siding with the people. Setting the stage for this shift, Chancellor Merkel recently made the unprecedented statement that "Multikulti" (derogatory for multiculturalism -- imposed largely by the EU) has failed. Months ago she had also balked at forking over the Greece bailout. Finally-- better late than never -- the media have piled on and it seems as if the EU's popularity has plummeted among Germans. But it won’t stop there. Politicians in other European countries are striking back with strong anti-EU rhetoric. Here is my translation of the article: The German Transfer Union BERLIN (our own report) -- In Berlin the debate is raging over a possible 2-way division of the Euro Zone. Numerous media are saying "Germany pays, Europe collects. In other words, the EU is on the way to becoming a "transfer union." The first top politicians in Berlin are meanwhile proclaiming solidarity with open euroskeptics. The Community currency is, so say press commentaries, at its core not an economic project but rather a political one. “The mission of the Mark was the price the French demanded for reunification. Vengeance is now being exacted. Indeed, it is well-founded interests of the dominant German export industry that have led to an intensification of the debate over the future of the euro. So far the Federal Republic has managed to achieve considerable trade surpluses – de facto capital gains – over other southern European euro countries. The savings programs now mandated in the South raise questions about these surpluses., while at the same time, the proportion of exports to non-European states is increasing significantly. As a result, the change in mood of the German functional elites is taking on a new dynamic.
German to English translation
BERLIN (Own report) - In Berlin swells up to the debate on a possible division of the euro zone. "Germany pays, Europe conceded," it says in influential media, the EU is on its way to a "transfer union" to be. First Berlin's top politicians are now about to open expressions of solidarity, said Euro-skeptics. The single currency was to judge press commentators, the core of any economic but a political project, "the task of the D-Mark" is "the price" was, "which the French called for the reunification." This revenge now. In fact, there are tangible interests of the dominant German export industry, which lead to the intensification of the debate on the future of the euro. So far it succeeds in Germany, compared with the southern European countries € substantial trade surpluses - to achieve - de facto capital gains. The forced savings programs now in the south, these surpluses in question while at the same time, the share of exports to non-euro countries is growing significantly. Thus the change in mood to prevail within the German elite new dynamic function.
"Save our money"
"Save our money - Germany is sold out!" - Is the title of the former President of the Federation of German Industries (BDI) Hans-Olaf Henkel recently introduced his new book in which he for a splitting of the euro area into a "North" - and promotes a "Southern" group. Henkel has in mind, which became economically "northern group" should remain under the "leadership of Germany, while France had to lead the" flexible southern group "of over-indebted euro countries. Wins [1] His plea for a two-class Europe in the German media increasingly popular. [2] Even Berlin's first leaders were raised now by his side. Sun campaigned Federal Minister Rainer Brüderle (FDP) at the book presentation in Berlin open for Henkels Scripture. With this approach he has "in the black-yellow coalition frown" caused, it said in the media about the divisions in the federal government. [3]
A huge transfer of wealth
Opponents of Henkel's thoughts toward him think that it is the euro area - and especially the southern European periphery - the most important export markets for German industry was and is still. Over two thirds of all exports from Germany are in the European Union, with more than 40 per cent in the euro zone. Of crucial importance is the foreign trade surplus which German companies have largely achieved towards the countries of the euro zone. In 2007, as Germany was able to realize nearly two thirds (114 billion euros) of its total trade surplus of 195 billion euro within the euro zone. Since the introduction of the euro currency to the second quarter of 2010, succeeded the German export industry to achieve compared to the other euro countries have current account surplus of more than 672 billion €. This amount is in fact a transfer of wealth in favor of the German export industry.
The South as a financier
In the euro area is therefore in fact a "transfer union" - finance, however, not one in which Germany other countries would, but one in which the German export surpluses - which are synonymous with asset growth - with an escalating deficit formation of the weaker southern economies have been paid. The German export boom, which contributed to the debt of the Southern States was instrumental, in fact, made possible by the euro: the single currency adopted the Mediterranean countries to restore their competitiveness through currency devaluation, at least to some extent [4].
More important than the €-O
Proponents of Henkel's claims within the German elites found their deviant thoughts also on economic considerations. Accordingly, had the current export-led economic recovery in the Federal Republic "developed trade with countries outside the euro area very dynamic" in particular. The "emerging countries in Eastern Europe" had become important markets for the German export industry and would therefore "even more in importance than the €-periphery". Even with Asia, it says that the German economy "good business" do. But one need not adopt the euro. [5]
Scorched Earth
In fact, Southern Europe loses since the crisis began as a market for the German export industry of growing importance. Since the local debt dynamics can not be maintained, while Germany's trade surplus to fall in the region. The debt-ridden economies that are facing decades of economic stagnation same periods, from the perspective of German companies "scorched earth", which will no longer act as a growing market. For example, the German trade surplus fell year-over Spain from 26.9 billion euros in 2007 to just 12.3 billion in 2009. The same happened with the German business in Italy: The trade surplus decreased 19.8 billion in 2007 to 13.4 billion in 2009. Declining trade surpluses, Germany has also to Greece and Portugal.The euro zone forms a whole in the context of the latest German export drive up the rear, with German exports there laid after the severe crisis-induced slump of 2009 from January to October 2010, only 13.3 percent over the same period last year, while the total German exports in the said period to grew 19.1 percent. Asia in particular - with an export growth of around 30 percent - and the Russian Federation - Export growth: 26 percent - were among the growth drivers of the German export machine.
Maximum benefit
Core of the current debate about the future of the euro is a balance between rising costs that are necessary to maintain the euro area, and export advantages offered by the Monetary Union, Germany that will go away but clearly and with increasing speed.Provisional experience "reform proposals" an economy that - as thoughts Henkel - amount to the debt-ridden southern European countries from the euro zone to exclude, but without completely abandoning the euro. This is to preserve the advantages of the single currency as much as possible while minimizing the cost of future crisis for Germany - for the biggest beneficiary of the actual € "Transfer Union".
Further background on the topic can be found: The German Question, think the unthinkable, pure sub-economic protectorate, the power in Europe, Wilhelmine, saving dictation, the new German question (I), the new German question (II) The new German Question (III), the crowbar as a management tool, the new German Europe and Europe's zero hour.
[1] Coalition fears the Euro-revolt www.spiegel.de 12/06/2010
[2] see also Europe's zero hour
[3] coalition fears the Euro-revolt www.spiegel.de 12/06/2010
[4] see also saving for Germany
[5] Who will benefit from €; Frankfurter Allgemeine Zeitung 06.12.2010Journal "German Foreign Policy" reports EU losing media support
BERLIN (Eigener Bericht) - In Berlin schwillt die Debatte über eine
mögliche Zweiteilung der Eurozone an. "Deutschland zahlt, Europa
kassiert", heißt es in einflussreichen Medien; die EU sei auf dem Weg,
eine "Transferunion" zu werden. Erste Berliner Spitzenpolitiker gehen
mittlerweile zu offenen Solidaritätsbekundungen für erklärte
Euro-Skeptiker über. Die Gemeinschaftswährung sei, urteilen
Pressekommentatoren, im Kern kein wirtschaftliches, sondern ein
politisches Projekt; "die Aufgabe der D-Mark" sei "der Preis" gewesen,
"den die Franzosen für die Wiedervereinigung forderten". Dies räche
sich nun. Tatsächlich sind es handfeste Interessen der dominierenden
deutschen Exportindustrie, die zu der Intensivierung der Debatte über
die Zukunft des Euro führen. Bislang gelingt es der Bundesrepublik,
gegenüber den südeuropäischen Euroländern beträchtliche
Handelsüberschüsse - faktische Vermögenszuwächse - zu erzielen. Die
jetzt im Süden erzwungenen Sparprogramme stellen diese Überschüsse in
Frage, während zugleich der Anteil der Ausfuhren in Nicht-Euro-Staaten
deutlich wächst. Damit gewinnt der Stimmungswandel innerhalb der
deutschen Funktionseliten neue Dynamik.
mehr
http://www.german-foreign-policy.com/de/fulltext/57964
Thursday, 9 December 2010
The German transfer union 12/09/2010
Sent: Wednesday, December 08, 2010 7:06 PM
Subject: Newsletter vom 09.12.2010 - Die deutsche Transferunion (Euro-Krise)
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