Posted Apr 6, 2013 by Martin Armstrong
The view of the USA from outside is always enlightening for those stuck in a domestic world. All we ever hear about is the US debt, the Fed monetization, and Obama’s latest attack upon the constitution. That notwithstanding, the view in Japan with North Korea itching to draw first Japanese blood and Europe demonstrating it is about as honest as any local politician. The debt picture of Germany is not much better than the USA. It is actually far worse. The whole idea of the Euro was to increase trade. So let’s see, if we impose huge austerity upon the rest of Europe with unemployment above 50% among the youth, this will increase trade and profits for Germany exactly how? I fail to understand the logic here. The German economy will decline sharply, unemployment will rise further, and the whole Euro experiment will prove to be a failure. It is like pretending you are married, without the certificate, in a state that does not recognize “common law” marriages and you expect the IRS to honor an unwritten agreement? Good one! That is what Gay Marriage is about. Two people can live together, share the expenses and contribute equally to the mortgage, and when one dies the other has to pay inheritance taxes. You cannot create a European marriage among nations using a single currency, but then drawing the line and say what we each owe is our own and not joint. Sorry – it is not a marriage in the eyes of the law or the financial markets. The German debt picture is no better than the USA if not worse given its much smaller economy.