The Euro "crisis"

[The Lawspeaker]

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Euro "crisis" (part 1) - the taxpayers subsidize the German export industry

Spoiler!

When German politicians defend the euro in talkshows or interviews, one of their central arguments is, that the euro is important for the German export industry.
This little documentary explains that this may be true, but that all this is payed for by the taxpayers.
This results in a fundamental question which I think should be discussed. Is it okay or even wanted, that the general public is forced to subsidize the profit of some?

The euro "crisis" with its various rescue packages shows, that the money that was spent in Ireland, Greece, Portugal, Spain, Italy and others (by some summarized as "PIGS" or "PIIGS") in the last years since the euro introduction, did not come from the inner strength of those countries but that the bill for all this ends up at the taxpayer.

The data from the table at 1:38 is from the German official statistic office (Page 13) http://www.destatis.de/jetspeed/port...net/DE/Content...

Link to the Deutsche Mark - Lira graph: http://commons.wikimedia.org/wiki/Fi...svg?uselang=de

euro crisis 2011 explained

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Euro "crisis" (Part 2): German wealth going south

Spoiler!

In this second part of the documentary series on the euro and its implication the most powerful detriment through the euro is examined: the "invisible" transfer of purchasing power and wealth to the detriment of the German (but also Finnish, Dutch,...) population through the exchange rate mechanism.

Did you ever ask yourself why the trade surplus countries of the eurozone, especially Germany, have not built up currency reserves like China?

The most hit are those in society who are weak anyway. Students, pensioners, people living off social welfare and so on... The gap between rich and poor widens especially because of this mechanism.

But this all is also benefitting southern Europe. In Greece, Italy, France, Portugal, Spain (Ireland) (some call them "PIGS" "PIIGS" what is actually a very rude expression). They gain wealth and purchasing power, they can consume...but at the expense of those in the northern countries.

This all is again a example of the horrible Transfer system in the EU (some call it EUSSR) and the euro through the ECB and currency system this time.

All those who stayed out of the euro can be concratulated, like the Swiss (Switzerland), Denmark, Sweden... In many corners of europe people get (rightly)worried. In Finland the "True Finns" are popular because the population there doesn't want to throw more money out the window....

ESFS ESM, its all expensive...our taxpayer bailout season 2011

Links to information used in the Video: trading statistics of Germany of 2010 http://www.destatis.de/jetspeed/port...net/DE/Content...

Interview with mister Spethmann: http://www.faz.net/s/Rub58BA8E456DE6...9FA1EB7915C436...

China holding trillions of Dollar: http://www.bloomberg.com/news/2011-0...erves-show-g-2...

Euro rescue package, decreed by Angela Merkel, European Union, public debt, bailout, taxpayer paying in the end for the euro crisis...

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Euro "crisis" (part 3) - why all the billions

Source of the video with the speech in parliament: Deutscher Bundestag


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Euro "crisis" (part 4): The ECB's self interest

Spoiler!

In this fourth part of this little documentary series it is examined how the interest and the role of the ECB changed when it was decided that the ECB would buy Greek bonds.

Links:
- Link to the WSJ money printing in Ireland through ELA: http://online.wsj.com/article/SB1000...101497562.html
- Link to the FAZ-article (in German): http://www.faz.net/artikel/C30638/gr...ne-umschuldung...

That the ECB owns these bonds, clearly influences the behavior of this institution. The focus of the ECB shifts from its actual core competencies to an involvement in the affairs of national governments.
Furthermore this video examines what would happen in the case of a Greek (Greece) default or restructuring ("reprofiling"). The ECB would maybe need new capital at the cost of (Germany's, Austrians and other's) taxpayers.
Worse: the situation could, and probably would evolve into an equivalent of money printing to keep the Greek banks and their banking sector solvent and prevent a complete collapse.
This would of course be a violation of every rule and treaty that actually should prevent the ECB from doing this. The Lisbon treaty, the Maastricht treaty, all promises would be broken, the reputation ruined.
Axel Weber seemingly saw this coming and resigned as president of the German Bundesbank months ago already.
Mr. Jean-Claude Trichet, the president of the ECB seems to become desperate and now proposes a EU/Euro-Finance ministry. This would then definitly mean that the euro-area is a federal state.
Do we want this?
And what would happen to the issuers of CDS - Credit Default Swaps?
The euro was a hughe mistake.
All this is of course in the context of the european sovereign debt crisis, euro crisis.