The Key Players Are Showing Their Hands… Will Germany Go “All In”?

As I’ve stated time and again, Germany is the only EU member that has the money to get Greece through this next round of debt payments (14.4 billion Euros coming due March 20). But Merkel isn’t going to give the money without Greece submitting to German fiscal demands.

However, there is no way Greece will submit to German fiscal authority. Heck the Greeks are even going so far as to bring up German war reparations from WWII!

Greek MP’s raise the issue of German war reparations

The Athens News reported that the MP’s have stressed that Germany owes Greece a debt of 54 billion euros before interest (70 billion with interest). They are calling for the issue to be raised as a national issue as Greece was the only country to which Germany failed to pay war reparations.

The issue of war reparations is one which is widely discussed amongst the Greek population who are increasingly resentful of criticism from Germany, which came to the fore when Germany proposed that Greece hand over budgetary sovereignty to the EU. In an article in German paper Der Spiegel in June 2011, eminent historian Albrecht Ritschl, a professor at the London School of Economics, criticized Germany for their hostility towards Greece in the current economic. He pointed out that Germany’s debt default in the 1930s makes the Greek debt look insignificant in comparison.

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The Key Players Are Showing Their Hands… Will Germany Go “All In”?
February 27, 2012 By gpc1981

As I’ve stated time and again, Germany is the only EU member that has the money to get Greece through this next round of debt payments (14.4 billion Euros coming due March 20). But Merkel isn’t going to give the money without Greece submitting to German fiscal demands.

However, there is no way Greece will submit to German fiscal authority. Heck the Greeks are even going so far as to bring up German war reparations from WWII!

Greek MP’s raise the issue of German war reparations

The Athens News reported that the MP’s have stressed that Germany owes Greece a debt of 54 billion euros before interest (70 billion with interest). They are calling for the issue to be raised as a national issue as Greece was the only country to which Germany failed to pay war reparations.

The issue of war reparations is one which is widely discussed amongst the Greek population who are increasingly resentful of criticism from Germany, which came to the fore when Germany proposed that Greece hand over budgetary sovereignty to the EU. In an article in German paper Der Spiegel in June 2011, eminent historian Albrecht Ritschl, a professor at the London School of Economics, criticized Germany for their hostility towards Greece in the current economic. He pointed out that Germany’s debt default in the 1930s makes the Greek debt look insignificant in comparison.

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http://www.bloomberg.com/news/2012-02-08/merkel-approval-in-germany-climbs-to-highest-level-since-2009-re-election.html

The second thing Merkel is doing by emphasizing that she doesn’t want to kick Greece out of the Euro but will give Greece more money only if Greece submits to German fiscal control, is:

2)   She’s covering herself in case Germany has to pull out of the Euro and others accuse her of not doing enough to stop the debt implosion (her defense will be “we offered the money time and again when no one else did, but they didn’t want to get their financial house in order”)

This last option is not some delusion. Germany has just gone to the IMF and G20 requesting additional funds for the Greek bailout and was told, “firewall Europe first, then we’ll talk.” The majority of Germans don’t want a second bailout. And Germany’s Finance Minister has made it clear that Germany won’t be putting up more money for the various EFSF or ESM bailout funds for Europe.

In other words, the big players at the table are finally showing their hands. Given the public outrage concerning the 2008 bailouts as well as the fact it’s an election year, the US-backed IMF won’t cough up money for a European bailout. Which means Germany is on its own here. And it’s very likely going to lose its biggest ally in the fight for austerity (Sarkozy).

Will Germany go “all in” on the Euro experiment? I doubt it. In fact I’ve found the “smoking gun” the little known act that Germany has recently implemented that proves the country has a Plan B that involves leaving the Euro with minimal damage.

Written By: Phoenix Capital Research