In Defence of Germany’s Economic Policy – Personal Reflections from John Gelmini

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I recently raised the following question in a blog:

Is Germany Really Following a Policy of Economic Narcissism in Relation to Other Euro Countries?

I am sharing below, as a separate blog, the personal response that I received from John Gelmini

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Germany’s export boom and much of the present prosperity it now enjoys has been hard-won.

Only a few years ago, their unemployment rate was very high as a result of too much complacency in the good years prior to that time.

They restructured themselves, became more productive, and invested time and effort in moving further up the value-chain and carefully developing markets in the BRIC countries, particularly China.

The other countries of Southern Europe, particularly Italy, Spain, Portugal, France and the worst case Greece, have become lazy and unproductive, due to their unwillingness to pay the price in terms of productivity and producing things which people want.

The Euro was a mistake to begin with, a triumph of overweening pride and stupidity by Bilderbergers and the Committee of 300 trying to force economies with different cycles into a set of currency unions which they later wished to merge into a single electronic currency and one Government for us all. This set of King Canute like boneheads created the situation under which Globalisation occurred and many of the blue-collar jobs moved offshore, leaving C1′s, C2′s, D’s and E’s unemployed and ready to swell the unemployment rolls.

For the past 25 years, even with the second German economic miracle, the EC has not created a single net new job and is losing jobs to China, India and the BRIC countries as we speak.

None of what happened occurred because of the German people or even their industries but because of this small elite including Merkel, Sarkozy, Monti, our own David Cameron and George Osborne, all of whom became Bilderbergers long before moving into their present roles, and are responsible for the policies which we now see despite what they say to us publicly.
It is not so much German Economic Narcissism but merely being in the right place at the right time, not wishing to waste their hard-earned money and enjoying a brief moment of elation at their hard-won good fortune.

As I predicted some weeks ago, China which has access to $6 trillion dollars worth of copper and lithium from Aynak in Afghanistan and the required 2 trillion euros to bail out the system, has evaluated the situation along with Russia and Brazil, and has decided to see whether the Europeans will save themselves.

So far, the Europeans have not done so which is why the Chinese said last week through their official news agency that Germany had to step up to the plate.

In the end, it will be forced to do so because the rest of Europe and the UK is incapable of doing so quickly enough.

Then at the 11th hour, you will see the Chinese Sovereign wealth fund assisting, but only to protect their exports and to buy up European distressed assets such as what is left of Greece, Eire, more recently Portugal and soon our distressed banks following their recent joint purchase of Northern Rock with Sir Richard Branson.

The other BRIC countries which promised money on the proviso that Germany injects money into the bailout will then follow suit.

This will leave Germany as the powerhouse of Western Europe in an unofficial alliance with China sitting in the background with the rest of us having to live with the new reality.

gelmini@btinternet.com

JOHN A GELMINI

http://www.transactionfocus.com