But a game-changer happened in 1990, what the Germans referred to as die Wende (The Turning Point)- the process where the German Democratic Republic (GDR/East Germany) joined the Federal Republic of Germany (FRG/West Germany).
Currently the EU is comprised of 27 member states, and after some 20 years of German reunification, it is now the single strongest economy in Europe, and ranks among the top 5 in the world. It’s manufacturing sectors, tech industries and their export markets are consistent and solid, and the country also boasts a surplus in its current accounts for both unemployment and health benefits.
Next to the rest of the rest of Europe’s failing and jobless, debt-addicted crack-house socialist economies- Germany looks like the Uberman in comparison.
Now the Greek debt issue is weighing heavy on Germany, and this latest crisis only confirms what forecasters and financiers have known for some time now- that for economic leaders, there is too much risk of exposure in the eurozone.
So here comes the next big game-changer, or die Wende, for Deutschland: as Germany appears to be at their wit’s end playing the Euro bailout game by injecting their hard earned cash into the economic veins of Gamblers Anonymous global poster-child Greece, political pressure is coming to bear in Berlin, and penny has nearly dropped. Yes, rumors have been rife for weeks that the Germans are intending to walk away, having already ordered printing plates to resume the printing… of their Marks.
This was confirmed this week by former White House economic advisor and Deutsche Bank board member Philippa Malmgren.
“The German announce they are re-introducing the Deutschmark. They have already ordered the new currency and are asking the printers to hurry up”, said Malmgren.
Here’s the bit that’s difficult to figure out: is it that Germany no longer wishes to be captain of a sinking ship, or is it more likely that was their plan all along?
Financial guru Max Keiser dedicated his latest Episode 192 of the Keiser Report on Russia Today this week to the rise of the German Mark, and made it clear that he predicted on air many times before this moment would eventually arrive.
According to Keiser, “The whole Euro project was a ‘trick-bag’ to reunify German under the umbrella of the Euro, and things went bad, as they inevidibly would do, they could eject themselves from the Euro, and there it is- The Deutsche Mark ”, explained Max Keiser.
Experts are warning however, that the ascent of the Deutsche Mark may cause a rapid collapse in value of the Euro, but this may in turn offer Europe’s periphery nations a way out out of their mountain range of toxic mega debts.
Keiser Report’s co-host Stacy Herbert summarized Malmgren’s announcement adding, “You can expect a European bank holiday, and then the devaluations will happen across Europe… huge inflation(of the Euro), therefore all of the money, all of the new liquidity is going to go into gold, diamonds, agricultural assets, energy prices, mined asset prices will rise. Default will reduce the debt burden and allow growth and inflation to return.”
Orthodox skepticism says that the new Deutsche Mark would become ridiculously strong next to a crippled Euro is stoking fears of Euro hyperinflation and knock-on damage to the US dollar, an event which could potentially kill Germany’s export markets (unlike most first world economies, Germany actually make real good and sells them abroad). In a volatile global market place, this is also a real danger, one which will make Germans proceed with caution.
One of the tipsters to jump on this story was Karl Denninger, Editor of Market Ticker. He noted:
“The sell-off in the equity markets is bad, but the implied forward view looking at high yield credit is far worse, and that looking at credit-default spreads is even worse than that. The latter on a number of institutions are showing the sorts of numbers that immediately preceded Lehman’s failure, implying the potential for a “no-notice” liquidity seizure.Greece’s 2 Trillion Euro Haircut
If it happens, and if it does it is likely to come almost without warning if not literally without warning, Germany would find it very expedient to leave the Euro.
… the treaties that formed the Euro left no means to expel a misbehaving “member.” But there’s no way to restrain a nation from deciding to quit as opposed to being expelled.”
Another boom and bust cycle. In the face of sovereign defaults, those bankers need their cash. Some banks could raise the funds privately, while other hope to be recapitalised by the state or by the European Financial Stability Facility (EFSF). Only problem is that the EFSF is not fully funded yet, and if EU forgive 50% of Greek debt it would increase the ESFS bailout fund to whopping 2 trillion Euros. And trust me when I say, those bankers really want to get that 2 trillion Euros (even if they never really had it in the first place).
A Greek default might also trigger, among other things, Greece’s return to the Drachma, an escape route from their economic chains in the eurozone. Certainly, there is enough political pressure in Greece to prompt such a move, but it is more likely that Christine Lagarde and the IMF will be dangling a very large carrot in front of Athens, an irresistible short term fix that their debt-addicted government cannot refuse.
If this chain of events does come to pass, the effects will be many and far-reaching. Euro default ripple effects are not just confined to Europe, as Malmgren states here:
“Apparently, the Europeans are warning the US to come up with a plan to nationalize Bank of America given that it is already in a precarious position, despite the injection of capital from Warren Buffet. The multiple lawsuits against BofA and other banks alone will render the US banking system vulnerable to any dramatic announcement out of Europe. But, no doubt US banks have immense exposures to European institutions and some may even have sovereign credit risk directly on their balance sheets.”German vision for a Greater Europe
As Germany takes the lead in Europe once again, we might ask where this latest move fits into the bigger chess game of modern history. Is this a spontaneous survival move by the Germans, or was Germany using the Euro to build up economically, whilst always planning to jump ship from the Euro experiment- and sending the single currency down as it jumps?
Some clues can be found by looking right back into the origins of the EU and the EEC. History reveals that Germany not only had aspirations to lead the EU, but it also laid out the master plan for it. The story could trace right back to the end of World War II.
Joseph Goebbels, Hitler’s propaganda chief, had a big dream called “National Socialism”, an idea that anchored the Nazi Party’s appeal, and one which helped catapult it to its German mandate just before the onset of World War II.
But as the Red Army advanced closer towards Berlin during those last days of the Third Reich, German visionaries could see the writing on the wall- the limitations of their national vision meant that they were not enough to sustain the movement. They needed a supra-national vision, and certainly one which could later feature Germany at its hub. Goebbels described what looked to be this very process, “In 50 years’ time nobody will think of nation states.”
A declassified document, known as the Red House Report, detailed a secret meeting at the Maison Rouge Hotel in Strasbourg on August 10, 1944. At this meeting, the Nazi inner circle coordinated with an elite group of German industrialists in order to plan for Germany’s post-war recovery.
In other words, they wanted a plan for the Nazis’ return to power, and a “strong German empire”, or a Fourth Reich… through the creation of the EU.
Paul Joseph Watson reported on this discovery for Infowars in 2009:
“Adam Lebor reveals how he uncovered US Military Intelligence report EW-Pa 128, also known as The Red House Report, which details how top Nazis secretly met at the Maison Rouge Hotel in Strasbourg on August 10, 1944 and, knowing Germany was on the brink of military defeat, conspired to create a Fourth Reich – a pan-European economic empire based around a European common market.
“The Third Reich was defeated militarily, but powerful Nazi-era bankers, industrialists and civil servants, reborn as democrats, soon prospered in the new West Germany. There they worked for a new cause: European economic and political integration,” writes Lebor.
Author Rodney Atkinson’s book Europe’s Full Circle also lists some very striking similarities between the late Nazi vision of a European Empire and today’s European Union, which includes:
• Europaische Wirtshaftsgemeinschaft (European Economic Community)
• European Economic Community
• European Currency System
• European Central Bank (Frankfurt)
• European Regional Principle
• Committee of the Regions
• Common Labour Policy
• Economic and Trading Agreements
• Single Market
Watson adds here:
“The fact that the EU was a brainchild of top Nazi economists and industrialists, formulated as a means of preserving dictatorial power and then implemented by a former Nazi working under the auspices of the Bilderberg Group in 1955, proves that the entire European Union system is poisoned with a legacy and a raison d’être of totalitarianism.”
Fast forward to today, we have a an EEC single currency on the ropes and a financial crisis which is threatening the greater EU. Still though, only Germany looks determined to take the lead on all fronts. Compare this to political and economic basket cases like France, Italy and Spain. Great Britain would easily be a leader too, if not for the fact that it never threw its hat into the single currency ring. Coincidentally, many of the banks in the City of London currently own the toxic debt which is disabling eurozone economies like Greece. London’s banks are quietly pulling the purse strings that are causing so much pain on the continent.
The banking cancer
It’s safe to assume that their master plan erected back in the late 1940′s and early 1950′s did not envision that in 2011, a rogue banking class would be running such a sophisticated, relentless global ponzi scheme and financial terrorist network, one with which they may have unknowingly derailed the Nazi grand vision of a supra-national “United States of Europe”, and possibly the German economy with it.
Still though, those banks hold most of the cards in this global casino system, and they will no doubt want the game to continue as it has since 2000- that is, where they privatize their profits and socialize their losses through a series of bailouts. The same institutions who crippled Greece, Ireland, Iceland, Portugal and Spain would like nothing more than to sink their teeth next into up and coming economies like Poland, Lithuania, Latvia and Romania.
Regardless of each nation’s particular economic outcome, it will be a rocky road for almost every economy- even chaotic. This may even push some countries, and even Europe, back to something like a gold or silver standard. If managed properly, this could have a positive effect in the long run against the perennial devaluation of people’s purchasing power.
As bad as the financial picture looks for it today, make no mistake- Germany still has a lot invested in this European project, even though the bailout game will have certainly taken its toll politically at home. If Germany does indeed dump its Euro currency to resurrect its Deutschmark, the smart money still says that it will still want to support- if not retain a leading role in the European Union, and will also probably be a driving force in strengthening the Community’s legal structures and treaties. Germany is still ready and willing to lead.
German supra-national aspirations aside, most importantly Europeans must remember who started this whole run on their Euro. Who infected Greece will its toxic paper? Who will suck up all of Greece’s bailout money? Who continues to launder its derivatives and junk bonds through any economy that will take them? Who goes to bed at night dreaming about the next financial crash?
Like they did during the US bailouts, the globalist bankers are insisting that if Greece and others default and no bailouts follow for them, then there will be ‘martial law’, social Armageddon, riots in the streets and the sky will fall. The truth of the matter is quite the opposite. The only difference a default will mean is that there will be few Lamborghinis, Ferraris and McLarens sold this Christmas.
Despite all of these realities, the European bailout season has already begun, with the French-Belgian banking giant Dexia first in the queue for their Christmas bonuses.
By now we should all know the answer to those questions. If we could just get rid of that lot, we might just be able to get back to the business of running our lives, our economies, our countries.