The NYT Instructs Germany How To Behave and Save Europe: Spend and Loan More!

Abstract: The New York Times advises Germany to continue to lend to the beggars in the European Union. The best option is for Germany to opt out of this wreckage as the debt levels are so high that many members of the EU cannot recover and must default. It is terminal this time.

When we read politically predisposed essays we are obliged to translate the words into clearly explicable parts so we can obtain a clear and broad view on how and why the statements appear as they do. This requires some background research into the subject matter, the authors and an assessment of the direction by which the political organization that created this missive is directing our attention to. Simplifying this task, we can start out with the provable knowledge that the bankrupt[1] New York Times—aka the Walter Duranty Papers[2][3]-- has steadfastly echoed the elements of socialism or world government anywhere and everywhere on this planet for some 7 decades or more.  And, what do we expect today? Anything different?

As for background, we need to merely inspect the basic elements of what happened in Europe since the 1870s to see that Germany is both the growth engine and the most warlike element in the current shaky European Union, which is not so European, certainly not a union but a hurried assemblage of mostly weak sisters who huddle together to prevent another world war. Peace must be sustained at all costs.

To analyze the text, we have to highlight certain words or slogans that define the ultimate fire wall of the political group and these give us the translation we need. Thankfully Maureen Dowd, the Old Red Lady [4][5][6]of the Old Gray Lady, has conveniently provided us with her ‘Unspoken Words Theorem.’ She has the supernatural but politically stimulated facility to hear what is not spoken and provide us with an analysis and we might borrow this method to print herein what is not mentioned in this op-ed today. We can thus extract the exact meaning in a given text.

How to best read my blogs:

[I offer extensive quotes in this blog/essay so that the reader can view the exact language and can be confident that nothing was taken out of context or that nobody was misquoted. The easiest way to take in the salient points is to read the emphatic points in the quotes and then peruse my comments. Comments on my comments are always welcome: ryckki@gmail.com.]

Starting off, we look at the opening salvo from this little piece and highlight the buzz words, slogans and themes:

“Germany’s commitment to the European Union has been central to its postwar rehabilitation and its economic success. For years, Germany played the role in Europe that America so frequently plays globally — the locomotive whose dynamism and demand helps turn around recessions before they deepen into depressions.”

“Now, at the worst possible moment, Germany is turning to nationalist illusions. Europe’s past economic successes are now viewed as German successes. Europe’s current deep problems are everyone else’s except Germany’s. That is neither realistic nor sustainable. But German politicians and commentators are callously and self-destructively feeding these ideas.”[7]-- Germany vs. Europe By the Editorial Staff Published: May 26, 2010 [Emphasis is mine in all quotes.]

The first word here [rehabilitation] is a 60 year old catch word that is daily reiterated to remind us of German militarism dating back to Frederick. The Russians are never mentioned in such a comparative  context even though they murdered 50 million souls since 1917 and dominated most of Europe for half a century with disastrous results. So, we begin with a reproof of previous actions in Europe that really date back some 25 centuries but the payoff is that the political focus is made current for us and stripped bare of any tinsel or spangles.  This word is intercalated with the derogatory terms nationalist illusions that immediately remind us of Fascism.  Fascism bad—Marxism good. The comment about everyone else in the EU cluster is a crude gloss and an unveiled but persnickety condemnation that clearly states that Germany can adjust to many political climates and continue to remain prosperous. This is clearly not the outcome that most liberals and especially their Neo-Marxist brothers in liberalism wanted to see. They wanted Germany to be a common player in this socialist game and not rise above the hated median[8] that exposes the losers from the rest of the pack. The words “callously and self-destructively feeding these ideas” are merely wandering around the central argument of this piece and are avoiding the direct accusation that Germany is the best of the best and they know it.

This tells it all. The rest is comprised of some fluff, threats and other puerile antics that tend to compel this mighty nation into a soft-soap acquiescence to the maudlin standards of socialism, where everybody loses.

Now, for the specifics:

The EU is collapsing from debt derived from the insatiable nostrum that the ‘rich’ can be taxed to create a wonderful society reminiscent of the utopias[9] of the past. [10] The threat is that Germany might leave the EU and that is clearly the best option as the rest of the weak sisters, affectionately known as PIIGS, are hopelessly mired in terminal debt. Germany has some tough decisions to make here and most of them that include staying in the sticky cluster of the EU are not realistic.

The English have a different view:

“The European financial crisis may look and smell rather different to the American banking crisis of a couple of years ago, but strip away the details – the breakdown of the euro, the crumbling of the Spanish banking system to take just two – and what you are left with is the next leg of a global financial crisis. Politicians temporarily "solved" the sub-prime crisis of 2007 and 2008 by nationalising billions of pounds' worth of bank debt. While this helped reinject a little confidence into markets, the real upshot was merely to transfer that debt on to public-sector balance sheets.”[11]-- Is Europe heading for a meltdown? By Edmund Conway, Telegraph.  This financial crisis is worse than the sub-prime crash of 2008 because the sums are so much bigger and it is governments that are in dire straits. Edmund Conway explains the dangers [Emphasis is mine in all quotes.]

That is what we just did. We took in massive  debt in the form of ‘affordable housing’[12] from people with little or no credit or jobs and tucked it into the government’s dust bins known as Fannie Mae and Freddie Mac to rot and then tried to make up the lost  action  in the GDP rate with more debt. The only real difference in the short term is that the U.S. can handle this for a few years but the EU has exceeded the elastic limit of debt stress and will soon snap. You cannot spend[13] your way out of debt.[14] We need to watch California[15][16][17]and the EU collapse to learn the hard lessons about debt and ignorance in governance.

Now, ‘reasons’ why they should help out the Greeks and other beggars:

“After a rough stretch following reunification, Germany took the tough decisions necessary to restore its competitiveness and revive growth. As a result, it is doing far better than the rest of Europe, with a low fiscal deficit and strong export surpluses. But its export-dependent economy would sputter if European consumers — its main customers — could no longer afford to buy its goods. German banks lent billions to Greece and other troubled European countries. If things don’t turn around quickly, those loans may have to be written down.”— Germany vs. Europe

Now, for the missing parts supplied by the Unheard Words Theorem:

The reunification process was a pathology from the old Soviet system. It was a disgrace to the world that reflects the obvious defects of a command economy and the NYT must not broach the subject too closely because that is that is what they want for the entire EU and the US as well. The lefties see loot here ripe for the plunder so they play on mistakes made by Germany dating back to a dozen decades or so they play upon the misplaced and unjustifiable guilt of the Germans.  They always know how to spend your money better than you can. We know that the German banks lent money to the hapless Greeks and other socialist losers but the threat that those loans may have to be written down is not valid unless you believe that [1] this may not happen again because of more prudent spending but if it did then the banks will have to write off much more debt and [2] flicking some alms into a bottomless pit like Greece or Spain will bring some rewards if even limited to those select countries. There is little hope that the PIIGS can recover from this without a series of massive sovereign defaults.[18]

Now, we place blame on the winners in the usual Marxian style. Germany is at fault for not putting the losers in the stocks and whacking their behinds:

 “Europe’s most-troubled economies today — Greece, Spain, Portugal and Italy — bear plenty of responsibility for this mess. They spent lavishly during the bubble. They failed to reform their rigid and inefficient labor markets and to contain their increasingly uncompetitive wage costs. The rest of Europe, including Germany, should have demanded adjustments earlier, but didn’t.”— Germany vs. Europe

A reading of the EU treaty does not give any nation any meaningful control over another sovereign state. Further, there is no way to control Greece’s spending other than by browbeating coupled with the threat of pulling back all financial support for these idiots. Their whole country is swamped by Marxist unions who demand cushy jobs, early retirement, tax loopholes and do not want to work.

Germany should pay for this:

 “With devaluation not an option for euro members, Europe’s high-deficit countries have been forced into steep tax increases and deep spending cuts to bring their soaring deficits under control and calm the bond markets. Necessary as they are, these cuts also run a very high risk of plunging the Continent into deep recession this year unless Germany offsets them with aggressive stimulus of its own. We hope Treasury Secretary Timothy Geithner will remind German officials of that on his visit to Berlin on Thursday.”— Germany vs. Europe

The devaluation comment line merely highlights the preposterous notion that a slapstick collection of countries can share a common currency given the dissimilar attitudes and work ethics of their members. The combination of steep tax increases and deep spending cuts will only ensure that their GDPs will drop like rocks. The EU is already in deep recession because of their foolish debt. It is unclear how Germany would offset anything that might secure some aggressive stimulus of their own. Germany has done its best under her own conditions and that works well. The rest of the EU members have not.  All this growth madness fails to persuade because there is no investment capital at hand here—only some liquidity for the banks of the fallen. Who would invest in Greece with their taxes and confiscatory mentality for foreigners?

Germany’s direction to date:

“Instead of committing to more spending, Germany is now preparing a multiyear program of deep spending cuts. Given its troubled history, we can understand its fear of deficit spending and inflation. But right now more German austerity will likely cripple Europe’s nascent recovery and Germany’s own prosperity. That is another hard truth that Mrs. Merkel needs to tell her party and her country”— Germany vs. Europe

This is standard liberal socialism or worse. Let the winner sacrifice everything earned from prudent handling of their economy and assets and hope that this booty will do some good for the losers in the meanwhile. It is okay if everybody is broke but there can be no winner in this. This is identical to the hackneyed concept of ‘tax the rich’ and ‘spread it around a bit’ mentality of the left.  We all know that the begging and taunts will continue and even if the Germans put up more loans and other alms the process will continue in a downward loop like a dead buzzard falling from the sky. Abandon hope when you listen to socialists.

As usual, the NYT advises thrusting money[19] toward the ‘poor,’ a process that is incessant and will continue to guide their every analysis and also ever jot and tittle on every page of their protoMarxian screeds and crass  pleas for alms. For the left, they always identify wealth in any location and demand that that be spent on their social programs or themes.

Germany must opt out of the EU and let the weak sisters stew in their own rot and circumstance. There is no hope for socialism.

rycK

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