because politics in a planned economy are always more important than economics

18 Jul

Until Reality Intervenes ….

Meanwhile, Germany, meant to be the back-stop for this lunacy, is losing patience. It has become clear that the agreements that arose out of the June summit were not agreements at all. Chancellor Merkel only agreed to things she knew would not be ratified by the German political establishment. Even the German President, Joachim Gauck, in a TV interview on July 7th, took the extreme step of calling for Merkel to justify staying in the euro and to explain why it is vital for Germany to save it at great and increasing expense to taxpayers.

At the same time, nothing is being done to stem the capital flows into Germany from Greece, Italy, Portugal, Spain, Cyprus, and Ireland — capital flows that starve the banks of deposits and increase the likelihood of banking failures in those countries.

The questions arises:How can the Eurozone stay together… Indeed

Zero Hedge

 

 

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