Submitted by: Donald Hank
Germany is a frugal nation. Say what you want about the German personality, but there is a component of honesty, hard work and thrift in them that has made them prosper -- traits shared by the Chinese, now an even bigger exporter than Germany (thanks to Western softheadedness). I would argue that the British and some others, e.g., many Americans, share this trait.
Because of this trait, and because of their experience with the disastrous Weimar Republic (where ordinary people took their earnings to the bank in wheelbarrows) indelibly etched in their collective memory, the Germans (unlike their government) are loathe to assume too much debt. It's déjà vu.
But with an unprecedented economic crisis upon them (see article below), they now face the specter of this dreaded monetization (money creation out of thin air) once again.
Will the outcome be much different from the Weimar Republic? If so, wheelbarrow manufacturers should fare rather well.
Monetization explained:
Need I explain the expected domino effect of all this on the US economy?
Don
No country is economically more dependent on the survival of the euro than Germany: the export powerhouse-largest exporter in the world until China overtook it last year-thrived because Eurozone countries could borrow unlimited amounts of euros to buy German goods. But now that the gravy train has stopped in front of a mountain of unmanageable sovereign debt, Germany finds itself at war-with itself.
