Frau
Angela did indeed suffer a serious mauling in Nord Rhein Westphalia yesterday;
not however for giving away the farm to the Greeks, but, shock-horror, for
preaching austerity not only to Club Med profligates but to the hard-working
Germans themselves. Whoa! If the Germans can’t take a mild dose of the medicine
prescribed by Tante Angela (egged on by the SDP) and the French have given up
before they’ve even started, why should the pbG's (poor bloody Greeks) and other
credit maxed out Club-Med members take a mega-dose that many suggest might be
toxic, purgative, and far from therapeutic. The famous Tsipras diet. Except all
this anti-austerity bandwagon is fatally predicated on Fritz the BMW worker
picking up the tab. I’m fairly certain Fritz ain’t gunna do it à l’outrance (as
Ambrose would say). Sorry François. So we all agree too much austerity can be
very bad for one’s health, but too much debt financed “growth pact”, aka
incontinent spending in the public sector and rampant tax evasion/avoidance,
could well be terminal.
So
watch for a steady flood of capital flight heading north, draining the life out
of the flabby under-belly of Europe. It will build to a crescendo until every
Euro not nailed down (or printed in Greece) will be in the BuBank.
François
will try to beard Frau Angela in her den on Tuesday. The fur may fly. Who will
come out standing? Will die eiserne Kanzlerin break as she’s left alone in her
corner? Will François head back to Paris to declare “peace in our time”?
The
markets will have a lot to say this week. Watch out below. The perfect storm is
just below the horizon.
Simon
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