Looking past the obvious commentary given in the mainstream media which is “investors must think Germany is not a safe bet” for the German government not to be able to sell all of their debt.
The yield on German bonds is low compared to the likes of Italy at 7% (German bond yield is at around 2%).
If you were relatively sure that Germany would bail out Italy if push came to shove, or if you were confident that the ECB would get permission from Germany to start devaluing the Euro why would investors put their money in German bonds at 2% when Italy has around 200billion Euro of debt maturing in 2012 which is available at 7% plus.
Personally I think it would be completely crazy to draw the conclusion that because Germany was not able to sell all of it’s debt that automatically German debt is not seen as safe.
Such comments are typical of the schizophrenic news that is put out by the mainstream media.
One week Germany is key to the success of the Euro and the next Germany is just as bad as any other country in the Euro.
I believe the fact that Germany was not able to sell of all the debt it wanted to says more about possible manipulation in the bond markets and the concentration of power in a few hands rather than “the market” seeing German debt as risky.
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Sure, German debt could be seen as risky if Merkel was doing what Geithner, Barroso and Sarkozy were asking for, then Germany would really have a problem.
The fact that Germany and Merkel are standing strong and leading by example, an example which says you cannot print prosperity with a printing press, should give investors more confidence in German debt than any other debt in Europe or N. America
For the sake of Europe let us hope that Germany will continue to stand in opposition of the international banking cartel which is determined to create inflation as a way of wiping away their debts.
Make no mistake, the pressure being put on the ECB to print money is nothing less than European tax payers paying for the mistakes of the banks. Nothing more, nothing less.
Private central banks like the Bank of England and the ECB have no power to create prosperity, the only thing they are able to do is to devalue the money in your pocket.
Currently the economies in Europe are in a position where the majority of major banks are effectively bankrupt. Just like US banks, European banks are zombies, they have far more debt than they can ever hope to pay off or make money on and their only way out is for their debts to be massively devalued, and the only way this can happen through the inflation of the currency.
Pressure is now being put on the ECB to “buy toxic assets” which in reality means, print money and give it to the zombie banks. Governments hope that by doing this banks can “recapitalize their balance sheets” and be able to start lending again.
The truth of the mater is that banks are a million miles away from being able to lend again. They need massive injections of cash and the only way this can happen is if governments get involved directly or indirectly.
With European governments getting into debt problems there is now massive pressure on European politicians to give the ECB the okay to print money to give to banks so they can buy the government debt. This money printing will create huge inflation.
The sovereign debt crises are just a facade to hide the real motive and that is to get politicians in Europe to accept massive inflation.
The sovereign debt crises in Europe is just a tool of the international banking cartel which they use to get European politicians to give the okay to devalue the Euro currency.
Of course the sovereign countries in Europe do have real problems. But in free market these issues would fix themselves, whether it be through a default or restructuring.
The fact that the EU believes the ECB should interfere simply reinforces the fact that the sovereign debt crisis in Europe is being used as a tool to devalue the Euro with the goal of saving the banks with tax payers money.
Germany is the only country in Europe who seems to be opposed to giving th ECB the green light to print as much currency as it wants and this is down to the fact that the German government actually has money. Their pensions are actually funded unlike the UK, France , Italy and Greece.
Germany actually has something to lose by the devaluation of the euro currency whereas France, Italy, Spain, Portugal have something to gain by the devaluation of the Euro.
And when I talk about countries I mean governments. The governments of France, Italy, Spain, Portugal Greece have something to gain, the people do not as it means their saving getting wiped out and it means the cost of living increasing.
The most telling aspect of the whole European debt crisis is that none is asking if the monetary system that we currently live under is a good idea.
Given all the issues we are looking at namely governments having no money in the bank to pay pensions, taxpayers paying huge sums of money to service the debts run up by governments, booms and busts nobody in the mainstream media is asking if it is a good idea for governments to give a monopoly on the creation of money.
In any other business governments say a monopoly is bad, it leads to organisations abusing their power by overcharging, monopolies stifle innovation, monopolies give organisations the ability to manipulate markets to the detriment of their customer and so and so forth.
And yet for arguably the most important thing in the world, money, governments grant a monopoly.
The current economic problems in Europe and the USA are down to the mistakes of central banks. Serious questions need to be asked as to whether it is a good idea for these people to have a monopoly on the money supply given all the problems they have created and are creating.
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