If Germany Rejects ‘Corona-Bonds’, They Must Quit The Eurozone

Authored by Ramin Mazaheri for The Saker Blog,

Germany and their moral poses… a century of Europe cries, “Enough!”

It’s hard for those living outside of Europe to understand the resentment towards Germany; Germans themselves often seem totally oblivious – the “German professor” only ever sees bad, unruly students, after all.

When I first moved to Paris in 2009 I remarked how all the Germans I met were so very nice. I was told, “They have to be, after what they’ve done.”

Low blow?

Hardly. Ignoring history is not politeness or PC progress or evidence of forward-thinking: it’s denial, hysteria and illusory thinking.

To paraphrase Henny Youngman: Take my Mutti – please. Angela Merkel is my generation’s Margaret Thatcher. When Thatcher died there were street parties in the UK, which were brutally repressed by cops, but the billionaire-directed Western Mainstream Media ordered paeans to be penned instead.

For Merkel there has similarly never been anything but fawning coverage, as evidenced – aggravatingly – by this recent story from the Associated Press: Merkel shines in handling of Germany’s coronavirus crisis.

Why such love for an abusive mother? Because she certainly hasn’t abused the German 1%: under Merkel German corporations have re-colonised much of Central Europe, they have extracted as much wealth as possible from weaker Eurozone nations like Greece, and downward pressure on wages was maintained on the German post-Hartz Re(De)forms workforce via the importation of hundreds of thousands of skilled Syrians and detested “minijobs”.

On a pan-European level ever since 2008, and even in the heat of the 2012 European Sovereign Debt Crisis, we have Germany’s constant refusal for “more Europe”, which is the only possible way to save this (atrocious, anti-democratic, unaccountable, corrupt, American-penned, socialism-detesting) version of the pan-European project. Germany refuses to collateralise Eurozone debt, even though it is Germany who would collect as they are the debtors, because Germany doesn’t want mere dead gold but living debt slaves.

The Eurozone is simply so riddled with contradictions and stupidities it just defies journalistic explanation:

Germany just doesn’t get it – for every country with an export surplus, there simply has to be a country with a corresponding deficit. It was German (and French) banks who signed off on the bad loans to the “immoral” Greeks which precipitated the biggest Eurozone problems, and yet it is German banks who got bailed out, despite their errors; and yet it is German banks who got QE to loan; and yet it is German banks which didn’t loan a dime of QE, and certainly not to Greeks. Germany is the biggest recipient of the ECB bond-buying, even though they don’t need it, whereas Greece was excluded even though they need it?

Crazy, but let’s look at Germany’s explanation for all these selfish actions action: moral hazard. They simply cannot perpetuate immorality, and deficits (even if to pay for the elderly, the poor, health care, education, etc.) are immoral. Haven’t you read your Kant, and his OCD-morality? German absolutism is absolute; their personal conscience must be clean no matter how many murderers must be let in the door to commit murder.

So… explain your €822 billion bailout, Germany?

Wait – what? A bailout worth 22% of annual German GDP?

What happened to budget rigour and the moral imperative of balanced budgets? What happened to the total, facile nonsense that a national economy is simply a household writ large? What happened to Yanis Varoufakis recycling absurd stereotypes like “Teutonic discipline” (has he never seen an Oktoberfest?)?

Oh, I get it… Germany is in a crisis – EU deficit rules need to be relaxed.

However: Greece and others were in a crisis for years – why didn’t their crises matter?

(Millions starving in Yemen, millions dying of bad water globally, deaths from natural disasters – indeed, why does the Corona crisis matter so very, VERY much more than those crises? I just can’t comprehend the West’s crisis criterion.)

But it gets worse with Germany: Bailouts for Greece and other crisis-hit nations were contingent on forcing open their economies. German and Dutch companies gleefully bought up assets and market share, and forced in their products but now Germany Will Block Foreign Takeovers to Avoid Economy Sell-Out?

It’s disgusting, German hypocrisy.

But Europeans have been dealing with this for quite some time. In January I wrote this article to explain Europe’s perpetual stagnation and unrest: 1941, 1981, 2017 or today – it’s still Germany’s fault.

Need more? In 2017, foolishly assuming that QE would actually end, I wrote France’s historic effort for an anti-austerity Eurozone, which detailed the self-harming, wooing efforts from De Gaulle to Mitterrand to Hollande aimed at ending this historical trend: “France wanted to not be conquered by the US-German alliance, so they kept proposing a Franco-German (capitalist) alliance.”

Ramin, you seem rather anti-German. Are you a tribalist-racist?

No. What I am is a daily hard news journalist in the heart of Europe and I am fed up with reading lecture after lecture from Germany; hypocrisy after hypocrisy; duplicity upon duplicity.

Just tell me this: where is the “moral hazard” in the Corona crisis, Germany?

Shine a light on that for me, Mutti Merkel.

She cannot. There is none.

There are healthy companies – who have as much Teutonic economic discipline, intelligence and good DNA as a pure and spotless German – in places like Italy which are going to go under without something like Corona-bonds to provide financing wrought by the Marxist logic-defying Western shutdown.

Forget it – shot down already by Germany and their Dutch toadies. Same old story….

The corona overreaction defies Marxist logic and is economic suicide (socialist-inspired nations like China and Iran control their economies, so they can do things which the corporate-dominated West cannot) but yet another German refusal to help, to pool debt and risk, to show solidarity means Germany must leave the Eurozone.

Hell, we KNOW they have the money – while they have had their boots on the throats of people like the Greeks the Germans have also been assiduously picking their pockets. Germany can afford such a staggeringly huge bailout because of these incredibly immoral profits! Oh no Ramin, you’re wrong – they got those profits simply because German capitalists are so very moral. Sure, sure….

German bankers entrapped poorer Eurozone countries into debt slavery, and now that their slaves are sick Germany wants a quarantine?

You’ll never read such analyses in the West, that’s for sure, but what is absolutely, absolutely certain is that the average Eurozone citizen knows what I am talking about already. Anti-German sentiment is going to absolutely explode if Germany’s historical pattern – pro-US imperialism, anti-European project, self-interest above solidarity – continues.

Everybody in Europe (and the whole world) has seen how China, and not Germany, is the one sending supplies to corona-hit Italy. Yes, the Eurozone’s terrible structure means it is always fiddling while Rome burns, but I truly believe that German (capitalist-imperialist) leadership simply doesn’t care.

Of course there are good Germans who want Corona bonds, but the simplest solution to the Eurozone’s crisis has always been to expel Germany.

“If Germany is unwilling to take the basic steps needed to improve the currency union, it should do the next best thing: Leave the eurozone.”

 That’s an assessment from Nobel Prize-winning economist Joseph Stiglitz. Yes, I did write ‘The Euro’ by Stiglitz: Even fake leftists say ‘exit’, but the point is that only far-right neoliberals don’t see that a “Deutsch-parture” can painlessly end the Eurozone’s near-constant stagnation and dissension. The Netherlands can similarly be invited to leave as well.

Unless naked, would-be German emperors can finally get off their high horses and on board with morality and unity – via something like Corona bonds – a huge explosion of jingoism and neo-fascism in the Eurozone is around the corner.

Fine by me I guess – history shows that this is the last step before socialism because: how can fascism ever possibly succeed for the lower classes? It seems some Western nations need to go through this step (yet again) before accepting that the needs of workers, not bankers, and the poor must always be predominant in political policy.