September 29 will decide the fate of the euro. In any case, it is considered so. And this fate is decided (you will be surprised) by Germany. In an unhealthy, frankly, internal and external environment.
Agency Standard & Poor's warned Germany that it would lower the country's rating if the Merkel government agrees to allocate additional funds to the European Foundation for Financial Stability. The rescue plan for troubled countries in Europe provides for the redemption of a significant part of their debts at the expense of the Fund, which, accordingly, should be increased several times: according to different options, from 1 trillion to 3 trillion euros. At present, the contribution of Germany alone accounts for almost half of its funds.
A good American agency arrived in time. Little Merkel's own headache, and here still caring Obama arrived in time with the advice.
“What is happening in Europe? They didn’t fully recover from the crisis that began in 2007 year. They didn’t understand the challenges that their banking system faced. Against what’s happening in Greece. They are now going through a financial crisis, which scares the whole world. They are trying to take responsible actions, but they are not taken as quickly as necessary, "said US President Barack Obama.
What a luck! The second wave will come from Europe, not from America. And you can blame everything on Europe. They say that America has recovered, but Europe has not recovered. And everyone, you see, scares, especially Obama. Obama extremely tough answered the German Minister of Finance.
"The problems of Europe are not the cause of the problems of the United States, even if Obama thinks differently," said German Finance Minister Wolfgang Schäuble. "It is always much easier to give advice to others than to solve something yourself. I can also give advice to the US government."
The advice follows: "look at yourself!". As Alexey Kudrin, a former colleague of Schäuble, recently said wisely, “the problems of Europe are more acute, the problems of America are more fundamental”. The bottom line is that America is pushing Europeans to print "evryry" with the same ease with which they print dollars. Americans are not afraid of hyperinflation because they have never seen it. And the Germans saw. And they are afraid.
“Europeans have a slightly different experience due to a number of lost wars. They act more judiciously, more carefully and thoughtfully. Therefore, I believe that when we succeed in combining American resolve and European prudence, then together we can make a very valuable contribution to world politics.” said German Finance Minister Wolfgang Schäuble.
This current Minister Schäuble told us 7 years ago in a more prosperous Europe. Today we see American recklessness combined with European indecision. Valuable contribution to the global economy.
The idea of turning the European Financial Stability Fund into an instrument of buying up “bad debts” of problem countries, companies and banks, in fact, “into a junk fund” of the American style, is not new. However, this requires the empowerment of the Fund, which requires approval by the parliaments of all 17 countries. To date, such consent is obtained only from 6.
"I have never been a Euro-optimist. The only thing that binds European countries is a common currency ... In any case, I think the euro will be a very unstable currency. After all, if it is a currency, it should be provided with something," Professor of Economics at Columbia University, USA, Guillermo Calvo.
Not "something", but "someone." Because “something” the dollar is provided even worse than the euro. And America has twice as many debts as all Europe. However, countries such a "Europe" does not exist at all. America can print money because it is America - the owner of all this global financial mess. One problem - a mess does not work. And it will not work until all these debts are written off. Because there is nothing to give them. When the problem does not have a solution - look for the extreme. And the extreme one who is weaker. Europe is weaker.
The fate of the eurozone, in fact, is not decided today, 29 September. Fundamentally, it has already been resolved. As, actually, and the fate of the dollar zone. And the collapse of the eurozone is the smallest trouble that awaits the world in this crisis.