Reuters reports (June 23, 3010) that Soros is wringing his hands over Germany’s savings policy:
“Germany’s budget savings policy risks destroying the European project and a collapse of the euro cannot be ruled out, billionaire investor George Soros said in a newspaper interview released on Wednesday.
“German policy is a danger for Europe, it could destroy the European project,” he told German weekly Die Zeit.
Soros, who earned $1 billion in 1992 by betting against the British pound, added that he “could not rule out a collapse of the euro.”
“If the Germans don’t change their policy, their exit from the currency union would be helpful for the rest of Europe,” he said.
Chancellor AngelaMerkel unveiled plans earlier this month for 80 billion euros ($107 billion) in budget cuts over the next four years — a package she hopes will bring Germany’s structural deficit within European Union limits by 2013.
“Right now the Germans are dragging their neighbors into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk,” he said.
“Germany is globally isolated … Why don’t they let their salaries rise? That would help other EU states to pick up.”
Merkel on Monday defended her budget cut plans after U.S. President Barack Obama preached patience in clamping down on public spending. A German government official said on Tuesday Berlin did not expect to come under pressure at a G20 summit in Toronto this weekend to provide fresh stimulus measures.”
My Comment:
All is not going well with our lords and masters. Perish the thought that people should start pulling together, looking after their own interests rather than the hides of some Eurocrats in a huddle somewhere.
Of course, I wouldn’t discount an element of propaganda in this.
“Deflation is coming, deflation is coming,” and “the Euro is falling” are nice memes to set in motion in order to make sure rates stay low in the US and spending is never cut, lest the dollar too tumble like its transatlantic cousin.
Actually, the perception that the Eurozone lacks financial discipline is precisely what has caused the Euro to lose its credibility, according to Jim Rogers, among other experts. And the same perception will knock down the dollar too, once its current run-up ends…..which might be sooner than you think.
“…..which might be sooner than you think” don’t say that , i still need to pay my student loan!
Kaus –
Sorry.
We can go slow on the social program cutting so people don’t get hurt at the lower end but we can surely cut the military by half without a problem..
Then we can pursue the banks and corporations for some money..
but when there is no political will to do anything that is correct, then you must expect to be ruled by crooks..
Personally, from what I’ve seen of the “opposition” my money is on the crooks.
Sorry to say that.
“…But remember the richest people in the planet become socialists. Socialism is a great thing for George…”
Hugh Hendry, british Hedge Fund manager.
http://www.zerohedge.com/article/hugh-hendry-i-want-bring-george-soros-down
I said that partially in humor, I am talking about relative strength of Dollar towards Indian and Chinese currencies.
As far as I know its not in an Autocratic or a Corrupt regime to have fairness or rationale in currency prices , its probably more important for them to have their own herd in check and working gainfully so that they don’t try to rebel against them. It does cause asset price inflation in those countries but that never hurt the elites it only makes them more powerful and the plebes work harder. I don’t see a reason for a secular drop in Dollar value.
Yes…
keep everyone a slave to the paycheck
a slave to the tax man
a slave to the TV and public opinion and PC thought police
Blogs must scare the living daylights out of these people.
Any little upstart can get up and point out the emperor’s bare back side.