Germany in recession and the inevitable end of the euro

Germany has always had an economic structure designed to export. In economics, the type of strategy adopted by the Teutons is defined in the Anglosphere world with the expression “beggar thy neighbor”, which translated into Italian means “impoverish your neighbor”.

When a country decides to export its goods and when it decides that exports must be the driving force of its economy, the country in question will do everything to make its goods more competitive to the detriment of others.

And it has been like this since the Second World War, when Germany founded its economy on a strongly mercantilist approach, the result of its Protestant culture.

What kept Germany from inflating its exports too much in the past was its exchange rate, the well-known heavy Deutsche mark.

Germany was never able to reach the desired levels of its exports because its currency had too strong an exchange rate compared to other currencies, such as, for example, the Italian lira.

For this reason, the German political class has always looked for ways to build monetary unions and limit the possibility for other countries to devalue their own currencies and make their goods less expensive.

Slightly older readers will remember in this regard that in the 70s and 80s, the infamous EMS (European Monetary System was born (ER: see Wikipedia), a union of fixed exchange rates that can be defined as the ancestor of the euro. (ER: It lasted for 20 years, from ’79 to ’99, and was put in place by UK globalist and Labour shill Roy Jenkins, who for a time was President of the European Commission. He was part of the UK’s Gang of Four.)

Countries belonging to the EMS were subject to a fixed exchange rate regime. This system provided for a flexibility band of no more than 2.25% for all members, with the exception of Italy, Great Britain, Spain and Portugal, which could instead devalue their currency up to 6% compared to other European currencies, until once again the ineffable Ciampi as governor of Bankitalia in 1989 decided to switch to the narrow band tightening even more the monetary noose around Italy’s neck.

The German industrial elite wanted to stifle Italy’s growth

Keeping other countries, especially Italy, in this cage had been the objective of mercantilist Germany from the beginning, which somehow needed rules built on measures in order to win the game.

And it was actually like this above all thanks to the help of the ruling class, that of the First Republic, which brought to Germany the flexibility of the lira and the independence of Bank of Italy from the Treasury in 1981 when Andreatta, Minister of the Treasury, and Ciampi, governor of the Italian central bank, through their private correspondence decided to take away the State’s ability to control its central bank.

It was a “small” economic coup against the sovereignty of Italy and was unfortunately only the first of a long series that continued in the unfortunate 90s, when Italy was deindustrialized through a subversive maneuver implemented by Mario Draghi, then director of the Treasury, and Giuliano Amato, Prime Minister, who handled over all of IRI’s public industrial assets to Anglo-Saxon finance.

The sad history of Italy in recent decades is that of an endless series of betrayals committed by characters unworthy of being citizens of this nation and who have done nothing other than plead the causes of supranational interests rather than those of the country.

However, the betrayals did not end in the infamous 1992, when Italy left the EMS too late, again thanks to the contribution of those harmful characters Ciampi and Amato.

The definitive cage was needed. It was necessary to drag Italy into a monetary union that would completely destroy its residual ability to manage its own currency.

These are the years in which we actively worked on the euro construction site. These are the years of the center-left of Romano Prodi, Massimo D’Alema and, once again, Carlo Azeglio Ciampi who made sure to give the German mercantilists everything they want, and above all Italy’s participation in the single currency.

Germany was moving rather slowly in those years. Its economy was not growing and Italy, free from the EMS mechanism, had started to grow again, despite the 1992 bloodbath carried out by Draghi and Amato.

The men of the center-left, assisted by those of the center-right, thus prepared the ground for the transfer of definitive monetary sovereignty through the entry into the single currency.

It is called the euro but it is nothing more than a masked German mark.

When countries enter this new monetary union, a simple mechanism occurs. Everyone loses the ability to create money, and everyone loses the ability to devalue.

What makes the difference in this case are the inflation rate differentials of individual countries, and it is no secret that in the 2000s, German inflation was much lower than that of Italy and Greece.

The game is thus won by default with rigged rules that artificially lower the cost of German goods to the detriment of those of countries like Italy, which now find themselves even deprived of the ability to fluctuate their exchange rate to compensate for this gap, given that everyone shares the euro.

The sick German of the 90s is reinvigorated thanks to this “cure” and more than a few, still suffering from the evil of auto-racism, should keep this story in mind.

The “virtuous” Northern European is the one who rigged the game in order to win it, and then even went so far as to call the Southern European countries victims of what is in all respects a monetary scam PIIGS, or pigs.

The euro pushes up German exports and Germany made a lot of ground in the 2000s until a side effect occurred in recent years.

The euro has exhausted its driving force for Germany

The “beggar thy neighbor” policy that was lied earlier produces an undesirable effect. If you impoverish your competitor, in the end they will no longer be able to buy the goods you export, and to make this mechanism sustainable, those countries must be able to increase public spending and run deficiencies.

A prospect that Teutonic obtuseness does not contemplate since Germany’s verb has always been to keep the accounts in balance, and the classic result of the dog chasing its own tail has been produced.

Germany, which had dominated the European economy, now finds itself having to face a constant bleeding of its exports with the numbers that describe the merciless state in which the country’s economy finds itself.

Last December alone, exports collapsed by 5.5% compared to the previous month and the negative trend not only does not stop but continues.

We have reached the destination point of the history of the euro. This currency was conceived expressly to allow Germany to have a dominant position on the markets, but what several observers in past years have failed to grasp is that it is not the German people who are the main beneficiaries of this process, but the German industrial elite.

The euro is a currency that compresses wages because if the exchange rate cannot be devalued, the full weight of competitiveness weighs on the wages of workers, who are the first victims of this infernal mechanism.

This rule also applied to Germany. It is certainly true that German goods benefited from an artificially devalued exchange rate, but at the same time the German political class acted to lower wages through the precarious of work implemented through the Hartz reforms.

In this game, the winners, if there are any, are few and victory is illusory and temporary. Now we have reached what was only considered a paradox until a few years ago.

The euro is not only unusable for Italy but for Germany itself. The single currency has become a cage for everyone since it does not allow public spending due to the restrictions imposed on the deficit and the impossibility of devaluing which places, as said before, all the weight of competitiveness on the shoulders of workers’ wages.

These are the end credits of a story that was destined to end, and now we wonder what will be the last act that closes this chapter of the saga.

The current historical moment, in addition to recording a general economic crisis in the EU, also denotes an absolute irrelevance of the Union itself, which now appears obsolete and above all emptied by the abandonment of the United States, which put an end to the old Euro-Atlantic block.

There are too many crisis situations affecting the EU and the euro for them to survive for much longer.

The single currency has now exhausted the cycle that had given Germany its industrial growth while the EU finds itself increasingly isolated in a context of return to national states.

At this point, the entire building of Brussels appears like an enormous and fragile house of cards where one only has to try to understand which piece will fall first, causing the general collapse.

Germany is going through a profound economic and also political crisis, given that its political class is no longer clearly capable of providing answers to the German people, who are now increasingly impatient with the recession into which the country has fallen.

Italy, for its part, is going through the same political crisis as even its ruling class is now outdated and has exhausted its purpose which was none other than to keep the previous status quo standing.

This leads to the conclusion that neither the euro nor the EU are destined to survive and we just need to understand what will be the spark that will start the fire.

Italy, as already noted in the past, remains the ideal candidate but given the German crisis, Germany should not be overlooked at this point either.

What appears certain is that the end of Maastricht and eurocracy has long been no longer a question of if, but only of when, and the when seems ever closer.

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