UK sources suggest that Cameron’s meeting with Mrs M was “surreal”.

The fear is that the market is beginning to question the financial strength of Germany – absolutely dangerous if I’m right. The other issue is that number of people are positioned for a sharp market rebound.

If this shambles continues, well….

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

12 Responses to “Germany: Merkel/Cameron Meeting ?”

  1. MTstiles says:

    I assume they have already stopped questioning and accepted the strange rationality of the Germans. Their response to this entire crisis has been bizarre.

    Congrats on 20,000 posts!

  2. DeDude says:

    Now if they had brought a Bazooka to the initial gun-fight with the bond vigilantes. But that was then; now they have a whole new level of problems and they may not have the needed weapons or ability to use them in time.

    Would be tragic if they have come to the point where the politics have cornered them into a “we-will-not-hand-over-another-dime-even-if-it-kills-all-of-us” trap. All good things can become poison in the right situation and the German’s and True Finn’s may end up killing themselves and everybody else with their sense of prudence and fairness.

  3. Henry says:

    There was no indication of this in the German press.

    The UK is not happy about Merkel’s idea for a financial transaction tax.

    Efficiency and competence in Germany are staggering

    In my little translation business to fund my aesthetic project, German customers are by far the most professional, most demanding, most reliable and most efficient in terms of contracting, review and payment.

    Perhaps we should consider how it is possible for us to attain such a position ourselves.

  4. Mike in Nola says:

    There’s a good chance of an anti-German backlash making the situation even more difficult. It’s easy to imagine anti-German demagogues arising as average European voters get squeezed more and more by austerity measures insisted on by Germans. What is happening to Greece, Italy and Ireland is analogous to the attempts to collect WWI reparations by the allies that allowed the rise of the Nazis.

    For example, Merkel wants changes to give the EU bureaucrats more power to impose austeritiy without the need for voters to approve it. This is causing problems even within Germany itself.
    http://www.telegraph.co.uk/finance/financialcrisis/8890144/Utopian-Germans-risk-full-blown-EMU-depression.html

    You’ve got the Euroskeptic crowd looking smarter than ever and playing the anti-German/authoritarian card as in this entertaining speech here:
    http://www.youtube.com/watch?feature=player_embedded&v=bdob6QRLRJU

    And then it comes out that Germany has appropriated to itself the right to inspect and approve budget plans of other member states before those states’ legislative bodies even get to see them
    http://uk.reuters.com/article/2011/11/18/uk-ireland-germany-concern-idUKTRE7AH1B920111118
    http://www.irishcentral.com/story/roots/the_american_in_ireland/irelands-sovereignty-is-probably-gone-for-good-134148153.html
    See, also, this Irish front page:
    http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2011/10/GERMANY%20IS%20OUR%20NEW%20MASTER.jpg

  5. Greg0658 says:

    well …. sometimes wet sometimes dry .. sometimes shallow sometimes deep .. sometimes blows up black goop all over your shores

  6. beaufou says:

    “I can understand that the British don’t want that when they generate almost 30 percent of their gross domestic product from financial-market business in the City of London,” Volker Kauder, the parliamentary leader of the Christian Democratic Union, said in a speech to the party congress in Leipzig. “But Britain also carries responsibility for making Europe a success. Only being after their own benefit and refusing to contribute is not the message we’re letting the British get away with.”

    ouch

    http://www.businessweek.com/news/2011-11-15/merkel-cameron-clash-on-taxes-eu-exposes-widening-breach.html

  7. Jojo says:

    WSJ
    THE SATURDAY ESSAY
    NOVEMBER 19, 2011

    2021: The New Europe
    Niall Ferguson peers into Europe’s future and sees Greek gardeners, German sunbathers–and a new fiscal union. Welcome to the other United States.

    http://online.wsj.com/article/SB10001424052970203699404577044172754446162.html

  8. theexpertisin says:

    Europe…..

    Same old, same old dice and slice.

    EU– never meant to be.

  9. DeDude says:

    @Mike;

    Yes and it won’t get any better when everybody realize that they got screwed when they were lured into having the same currency as Germany. The EU basically allowed the stronger northern economies to take away the devaluation defenses weapons from the weaker economies, so they could rob and enslave them. Tribalism and nationalism will win and everybody will blame the others guys for their own problems. I don’t see the politics allowing the solutions that are viable from the economic perspective.

  10. blackjaquekerouac says:

    nothing in actuality works when the only goal is to nationalize each nation’s respective banks and try and socialize the losses but insodoing “blowing up perfectly okay countries.” Contiental Europe should have reviewed how Sweden handled their banking crisis and proceeded accordingly instead of simply scoffing at the USA (who it would appear have handled their financial collapse to an amazingly effective degree) and “calling that a plan.” Greece nearly obliterated the EU last week…and the result was political unrest which the Western media is now doing its upmost to suppress. The bottom line is so far there is nothing more than a policy of anarchy “writ large” being created with the massive European labor movement “leading the charge for change.” How England and Germany get along is far less critical than how the USA and Germany will. The United States could wind up leading a bailout of Germany itself–should they wish to remain a unitary state. this may not in fact be the case however. with all the insanity going on in the Middle East while being brought directly home to the USA simultaneously is there any doubt….

  11. Jojo says:

    Bloomberg BusinessWeek
    Opening Remarks
    November 17, 2011

    The Euro: As Good (and Bad) as Gold
    The gold standard forced austerity and helped cause the Depression. Today’s problem is the hard-money elites of the euro zone

    Like the gold standard of a century ago, the euro has promoted free trade and investment across borders. The 12-year-old unified currency also shares the gold standard’s greatest flaw: the lack of an escape hatch. If a country runs chronic deficits, it can’t regain competitiveness through the market’s depreciation of its currency. Under the gold standard, exchange rates were fixed, which is to say the escape hatch of depreciation was locked. Under the euro, exchange rates no longer even exist. The escape hatch has been locked, welded shut, and sat on by the leaders of the Continent’s most powerful economies.

    What does a country do when it can’t depreciate its currency to lower its prices? Now, as in the 1930s, the only alternative is an internal devaluation, which means cutting wages and other costs, including government benefits. That’s a painful process that creates enormous social stress. In the 1920s and ’30s the impoverishment of the working class led to the rise of Hitler and Mussolini. Even if fascism is averted, punitive austerity can lead to a downward spiral as trade and financing dry up, deflation sets in, debts loom larger, and one country after another gets sucked downward.

    http://www.businessweek.com/magazine/the-euro-as-good-and-bad-as-gold-11172011.html

  12. CitizenWhy says:

    Your cryptic entry has my imagination going. Sure, the most likely topic was Britain’s hyperventilating opposition to a financial transaction/trading tax.

    But I like to imagine, among other topics:

    1. Moving Ireland from the Euro to the British Pound.

    2. Asking Britain to declare that they have finally lost WWII and that Germany now rules. You know, the way the south in the US has finally wins the Civil War whenever the Dixiecrat-Republican Party takes the Congress and/or the Presidency.

    3. Britain asking if it could be Germany’s poodle rather than the US’s.