You cannot
continue with this way of acting, it is this way impossible that the UE goes
back neither its economy, neither its political project, neither anything of
anything. The central bank requests fiscal stimuli to Merkel, Germany rejects
it the BCE he already announced purchases of values of the private sector.
Berlin opposes himself to more and this way and an another time, it is no
longer question of reasons it is democracy question and unit, you cannot be so
selfish and to maintain you privileged situation to coast of the other
ones.
The
president of the Bundesbank, Jens Weidmann, assured that you don't see
necessary fiscal stimuli in Germany, rejecting a petition of the president of
the BCE, Mario Draghi, so that Berlin increases its levels of public
investment, with the objective of helping to sustain the area euro. But it is
not that alone, the attitude of Germany is that neither he wants that there are
stimuli for anybody of the UE, this is to my way of seeing intolerable and I
believe that the rest of partners of the UE should already stop him the feet to
Germany, I eat he/she already said in my article of the past 16.
Germany, a
strong defender of the fiscal austerity, it is pressed from all over the world
by countries like USA and financial officials, so that it dedicates part of
their current surplus to invest. Benoît Coeuré, member of the Executive
Committee of the BCE, assured that the governments can help to counteract the
low prices (that is to say the deflation) with fiscal politicians, when they
are available without questioning the long term to sustain of the debt. Words
dedicated to governments like German so that they invest.
But neither
for those, the not to agree between the strict Weidmann and the near ones to
Draghi like Coeuré underlines the deep divisions inside the Council of the BCE
it has more than enough until where the bank should arrive to support the
economy, in a moment in that the upset markets look for security. The Germans
reject the public investment and they underrate the suggestion that more public
investment in Germany, he can help to other economies of the area euro.
But it is
that at the time Weidmann criticized the plans of the BCE of buying values
supported for active (ABS, for its initials in English), a strategy rejected by
other high positions of the monetary organism. With the excuse that the impulse
to the outlying countries for an increment of the investment public German is
probable that it is insignificant. Because how well, then that you plan to
make, because that that yes it is safe it is that the inaction took to but
recession to your surroundings and then that he will make Germany, I in view of
all this reaffirm myself in the idea that Germany, chooses to rotate toward the
east to continue being developed and he abandons us to our luck.
And I base
myself on what I finish writing, in the thesis that Weidmann maintains.
"With the economy operating to a normal capacity, Germany neither has
stimulus necessity, and this will continue this way with the revised forecasts
that they continue speaking of on-line growth with its potential", this
evidences that Germany doesn't wait anything but of the UE and that he doesn't
have any interest in acting neither I eat locomotive, neither I eat leader of
the union, this is absurd it cannot be that Germany allows to fall the euro
area because behind the euro goes, unless these negotiations with the Russia of
Putin with the gas and Ukraine like lid go for other courses.
The BCE
already reduced the types of interest to historical minima and develop a plan
to buy active of the private sector (covered funds and ABS), but Berlin opposes
himself to spend more and other governments are taking time with the structural
reformations that Draghi requests. The president of the BCE believes that the
market will be stimulated this way and the companies will have an alternative
source of credit. Nevertheless, Weidmann argues that these purchases are
"problematic when they imply a transfer of the risks from the banks to the
balances of the central bank (the other German central bank). At the end, it
could mean to transfer the risk from the European banks to the German
taxpayer.
Something
smells bad in the UE., I already days ago come it writing and I believe
unfortunately that the partners of the UE mainly those of the euro area, they
should stop the feet to Germany, maybe he must threaten or with to abandon the
euro or to abandon Germany, until he sees how much he needs the European market
and enter in reason, I told it yesterday and I repeat it today, Merkel is a
communist reconverted and its politicians go blindly for these roads,
imposition and pursuit of its economic plan, although the society complains,
because its Lutheran religion also tells him that the poverty and the sacrifice
please the god.
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