Ms. Merkel\’s not really getting it is she?

Ms Merkel told German television yesterday: “The markets want to force us into doing certain things – and that we won’t do.” She added: “Politics cannot and will not simply follow the markets.”

We\’re rather getting set up for another pantomime, aren\’t we?

\”Oh no we won\’t!\” say the politicians.

\”Oh yes you will!\” say the markets.

Recall, \”the markets\” are not some distinct entity, that\’s simple reification. They\’re just the accumulated actions of some 7 billion human beings. The battle is not between the tribunes of the people and some cabal of shadowy financiers.

It\’s between the tribunes of the people and the actions of the people.

And the thing is, not only do the people have more power in the end than the tribunes do it\’s right and proper that they should do so as well.

8 thoughts on “Ms. Merkel\’s not really getting it is she?”

  1. Tim, I agree with your point in a general sense but in this particular case (Eurobonds) the only people Ms Merkel should be listening to are the German voters. Do they wish to be liable for the debts of other Eurozone countries? If not, then she should not sign up to Eurobonds. The markets here are mostly the PIIGS government bond holders who want taxpayers of other countries to be forced to bail out their mistakes.

  2. The beggars weasled out of their reparations after the First World War, and paid nowt much after the Second. Time to divi up, I say.

  3. I do not see that the markets are specifically calling for euro bonds. The markets are signifying that they have insufficient confidence in what is being done by politicians to solve the euro zone crisis. If Merkel has an alternative solution to euro bonds and that restores confidence all well and good. Berating markets and banning short selling is not going to change the attitudes of markets and if she and other European leaders are stupid enough to believe it will and continue to make similar crass comments then the crisis will deepen.

  4. Merkel must have somebody else in mind with very deep pockets to buy up future debt issuance if she won’t get dictated to by ‘the markets’.

  5. In this case when she and other politicians berate the markets they mean those who they have borrowed money from and want (need?) those markets to lend them ever more money, at rates to suit the politicians not the lenders.

    Perhaps those with more knowledge on this subject could help me out here. I’ve been wondering recently if politicians aren’t going to be hoist by their own regulations. As I understand it, certain institutions such as pension funds have to keep an amount of their investments in AAA rated products and a big source of these has been sovereign debt.. If countries get down graded won’t this mean that these organisations can’t legally buy bonds anyway and might even have to sell some?

  6. I’m sorry, but this is not about what Germany will put up with or not.

    Germany has enjoyed the benefit of the southern Europeans acting as an anchor on the Euro, but doesn’t want to pay the price of that benefit.

    Dead simple Angela, your options are “suck it up” or “fuck off”. There are no two choices about it if you want the Euro, you have to pay the price. That price is covering the losses of the deadbeats that you let into your precious Eurozone when you shouldn’t have.

    Whose fault is that? Nobody asked me. I knew the Euro was a dead duck when it was originally announced back in the day. Pretty damn obvious if a bunch of nitwit politicians are going to create a fiat currency and ignore the fundamentals.

    Stupid fucking bitch.

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