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George Soros: Germany Is Stupid For Staying In The EU and Euro

It’s nice to find George Soros and myself on the same page….again. The EU is a basket case and a bad idea. I have been a proponent, for quite a while, that Germany should have said Auf Wiedersehen to the EU and Euro a long time ago. They could have gone back to the Deutsche Mark and watch their economy skyrocket. Instead, they are supporting socialist French, flamboyant Italians,  forever fiesta Spaniards and we are never going to pay you back Greeks. With cultural differences going back thousands of years, I very much doubt that the EU will be able to survive over the next 20 years. If German people wise up, they will be the first out of the door.  

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George Soros: Germany Is Stupid For Staying In The EU and Euro Google

 

Soros: ‘EU fulfilling my worst expectations’

Germany should have quit the euro zone to help boost its indebted counterparts in the currency union, according to billionaire investor George Soros, who discussed the future of Europe at an event in London on Wednesday. The exit of Europe’s largest economy from the 18-country currency bloc would likely have weakened the euro (Exchange:EUR=), potentially helping the region’s struggling economies to recover from the recent sovereign debt crisis. (Read more:Russia’s Putin acting out of weakness: Soros )

With regards to Germany’s decision to remain in the zone, Soros said: “This has fulfilled my worst expectations.” Before German elections last year, Soros said he was an advocate of the country leaving the single currency. This, he said, would have created a difficult but “quick fix” that would have allowed the region to rebalance. Now the chances of this happening are almost none, he added, saying Europe will likely face a prolonged period of painful readjustment and stagnation.

“(This is) endangering the European Union from what it is meant to be, namely a voluntary association,” he said. “(It’s changed into) something that is radically different, into a creditor debtor relationship.” He added that as a result the European Union (EU) now has two-tiers – or two classes – of members. “Currently the power is in the hands of the creditors,” he said with Germany’s government holding most of that power.

A crisis of ignorance Soros viewed the euro zone crisis as “a crisis of ignorance” – a very complicated situation which neither markets nor government authorities had fully understood. There was some optimism on the Union though.

Soros said a new public debate was now beginning. “The understanding of the issues is now catching up with reality…it gives me hope,” he said. Following the global financial crash of 2008, a sovereign debt crisis raged across the continent in 2011 with bailouts needed for several euro zone nations. Austerity followed with tough fiscal tightening required of some of the more indebted countries.

Despite opposition and a rise in fringe politics, the underlying fundamental data in many euro zone countries have improved. These flickering signs of growth have helped the bloc manage to exit a prolonged recession. Meanwhile, the euro has strengthened significantly – since the middle of 2012, it has risen around 13 percent against the dollar.

Soros also criticized Germany’s leadership, saying that it should never insist on austerity policies in a deflationary environment. ‘QE saved the world’ His comments follow the launch of his book “The Tragedy of the European Union,” in which Soros questions whether it is too late to preserve the EU. If the 28-country economic and political union collapsed, the effects would be felt way beyond Europe, according to a press release on Thursday, with “serious economic and political consequences” for both the U.S. and the rest of the world. (Read more: Why Soros and Paulson’s bet on Spain could pay off )

The founder of Soros Fund Management called on European politicians to react to these “unusual circumstances” quickly – and not to cling to old rules for the union that have proved inadequate. He heaped praise on the U.S. Federal’s Reserve’s quantitative easing program (QE), which saw it buy up bonds to lower interest rates and boost money supply.

“Quantitative easing has saved the world from a repeat of The Great Depression,” he added. With regards to the ongoing trouble in Ukraine, Soros stressed that it should be a “wake-up call” to the EU that “people are willing to sacrifice their lives to move closer to Europe.” Gun battles between police and protesters last month resulted in the ousting of former president Viktor Yanukovich but also claimed many lives. -By CNBC.com’s

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EU Fools Throw Away $15 Billion. Just A Regular Day At The Office.

You got to love EU Bureaucratic fools. Their own Union is basically insolvent and on the verge of a collapse, yet they are doing their best to waist another $15 Billion on an illegitimate Ukrainian government that paid snipers to kill innocent people two weeks ago.

Last time I checked Cyprus and Greece were in technical default. With Italy and Spain not that far behind and with French socialist party doings its best to drive out businesses and high net worth individuals, Germany is the only sane country left. However, with EU throwing their money away, the question is……for how long? 

Also, get a load of this, “the EU package is designed to assist a committed, inclusive and reforms-oriented government in rebuilding a stable and prosperous future for Ukraine,” Don’t make me laugh EU. Say goodbye to your $15 Billion, on top of $1 Billion from the US. You will never see it again. 

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EU Fools Throw Away $15 Billion. Just A Regular Day At The Office.  Google

EU Fools

BRUSSELS (AP) — The European Union is ready to give Ukraine 11 billion euros ($15 billion) in loans and grants over the coming years to help stabilize its economy, the head of the bloc’s executive arm said Wednesday.

The aid comes on top of $1 billion in energy subsidies the United States pledged Tuesday. It will help support Kiev while it negotiates a broad bailout program with the International Monetary Fund.

The EU package is “designed to assist a committed, inclusive and reforms-oriented government in rebuilding a stable and prosperous future for Ukraine,” Commission President Jose Manuel Barroso said.

The aid will include 1.6 billion euros in loans and 1.4 billion euros in grants from the EU budget and at least 8 billion euros fresh credit from financial institutions run by or controlled by the EU and its member states, the European Investment Bank and the European Bank for Reconstruction and Development.

The package foresees helping to modernize Ukraine’s gas transit system and providing technical assistance ranging from judicial reform to assistance in preparing elections, the Commission said. The package also calls for steps to accelerate achieving visa-free travel for Ukrainians to the 28-nation bloc.

That measure, if approved, would go down particularly badly in Moscow, since Russia has sought visa-free travel to Europe for its citizen for years. Suspending discussions on that project are among the measures EU leaders will consider at an emergency meeting Thursday to punish Russia over its occupation of Ukraine’s Crimean Peninsula.

 

Coincidentally, the headline figure of $15 billion for the EU’s aid package is the same amount that Russia was prepared to grant Ukraine in loans until the government of President Viktor Yanukovych was ousted last month.

Yanukovych took the Russian loans instead of a wide-ranging trade and economic agreement with the EU, a move that fuelled the protests that led to his ouster.

Barroso said that agreement was still on the table, and the EU is prepared to provisionally grant Ukraine the benefits deriving from it before a full ratification. Ukraine’s industrial and agricultural exporters could save some 900 million euros annually through reduced tariffs, the Commission said.

“The situation in Ukraine is a test of our capability and resolve to stabilize our neighborhood and to provide new opportunities for many, not just a few,” Barroso told reporters in Brussels. “We need to be up to this challenge.”

The timeline over which the EU funds and loans would be disbursed varied from a few hundred million euros this year to multi-billions between now and 2020. The details were left vague because the situation in Ukraine is still uncertain and negotiations between Kiev and the IMF are ongoing, EU officials said.

Most disbursements will likely hinge on the formation of a new Ukrainian government after elections in May and an agreement on wide-ranging reforms with the IMF. The fund will likely insist, among other things, on a currency devaluation and a sharp hike to natural gas prices, which Ukraine subsidizes heavily.

Ukraine estimates it needs $35 billion in international rescue loans over the next two years.

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US To European Union, “Straight Up F$%# You”

I am scratching my head here. Yes, yes… everyone knows that the US has the biggest cock on the block, but what the hell is the US doing meddling in Russia’s and EU business is beyond me. What was long speculated upon by Russia and Ukraine was finally revealed to be true. The US is sticking its big nose into Ukraine’s “you know what”, trying to smell what Russia is cooking. 

Yet, the US wasn’t done. One thing we have in excess in the “Land of the Free” is arrogance.  Taking this unlimited natural resource in mind, the US Officials proceeded to accuse Russia of spying on their secret communications.

WTF???  What planet do these people live on. First, NSA spies on every monkey with a cell phone on the face of this earth. Then the US Government tries to engineer or assist in a political coup in Ukraine (territory that Russia firmly controls) and they get “angry” because Russia intercepted their communication. I give up. The Dow is going to 25,000 by March….I better go buy some stocks now.  

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Bloomberg: Intercepted F-Bomb Phone Call Shows U.S. Role in Ukraine

Some undiplomatic language by the top U.S. diplomat for Europe has rattled relations with the European Union and added more tension to the East-West strains over Ukraine’s political crisis.

“F–k the EU,” Assistant Secretary of State Victoria Nuland said in a private phone call, expressing frustration with European Union efforts to resolve Ukraine’s political turmoil.

On the eve of Russia’s showcase Olympics in Sochi, the U.S. suggested yesterday that Moscow’s intelligence apparatus was involved in some way with the leaked recording of the intercepted phone call between Nuland and U.S. ambassador to Ukraine Geoffrey Pyatt. The call was made last month, based on references in the discussion.

State Department spokeswoman Jen Psaki blamed Russian “tradecraft” — a word used to describe espionage activity — after an unknown individual posted the audio recording on Google Inc.’s (GOOG) YouTube. The clip, which was subtitled in Russian rather than Ukrainian and accompanied by photographs and images of people mentioned in the call, was reported by the Kyiv Post earlier yesterday as Nuland arrived for talks in the Ukrainian capital.

US To European Union, “Straight Up F$%# You” Google

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German People, You Have Chosen Poorly

Bloomberg Writes: Merkel Records Biggest Victory Since Kohl’s Reunification Vote

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Angela Merkel won an overwhelming endorsement from German voters, putting the country’s first female chancellor on course for the biggest election tally since Helmut Kohl’s post-reunification victory of 1990.  Merkel’s Christian Democratic bloc took 41.8 percent to 25.6 percent for the Social Democratsof Peer Steinbrueck in yesterday’s election, projections on ZDF television showed at 12:02 a.m. in Berlin. That leaves her short of a majority and needing a coalition partner to govern Europe’s biggest economy.

 “This is a super result,” Merkel, who is now set to become the fourth chancellor since the war to win a third term, told supporters at her party’s headquarters in Berlin. “To the voters, I promise that we will handle it responsibly and with care. We will do everything we can in the next four years to ensure that they’re once again successful years for Germany.”

Read The Rest Of The Article Here

 

In one of my previous posts Germany Should Leave The European Union. Like Now  I have argued that German people have a wonderful opportunity to shift the direction of their country towards economic prosperity.   Unfortunately that did not happen on September 22nd as Merkel and her party won re-election.  While seemingly unimportant, this decision will have severe consequences on the overall global economy.

Germany is an economic powerhouse and is the only thing that’s keeping “fiscal mental hospital” that is European Union together. I strongly believe that without Germany, European Union has no chance for a very long survival.  German people had a wonderful opportunity to set their country on the path to eventually leave the EU by voting for AfD, but they let it slip away.

So, what now?

Unfortunately, for Germany nothing will change going forward. Germany will continue to support Greece, Italy, Spain and the rest of the freeloaders for the foreseeable future at the expense of the German people. That will put a significant drag on the overall German economy and any chance of loosening up the shackles that could have set Germany on the path to economic prosperity they haven’t seen before.

In summary, more of the same as fiscal insanity that is EU continues uninterrupted.

 

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