In each of these past historical events, Germany has had to pull back from its plans, as they were to large to digest. In each case, Germany found itself drained internally, and facing a bleak future. In each case, Germany has had bitter lessons to learn in the process.
In each case, German governments have attempted to expand Germany’s spire of influence beyond the capacity of the German peoples ability to absorb the losses.
Today, it appears that Germany has finally learned from its lessons. In simple terms, Germany appears to be throwing in the towel on its status as the backstop of Europe. The reality of the EU structural status, and the cost of bailing out Europe appears to have reached the German government. Saving Italy, is more than Germany can handle.
This mornings headlines are eye opening.
- German Govt: Italy Too Big For EFSF To Save – Spiegel
- German Govt: Doubts Whether Tripling EFSF Would Help It Save Italy
- German Govt: Italy Must Make Savings, Reforms To Exit Crisis – Spiegel
- Italy Debt Guarantee Could Raise Doubts Over Germany’s Finances – Spiegel
- German Govt: EFSF Should Only Help Small, Mid-Size Countries – Spiegel
This weekend, in capitals all over Europe, the unimaginable is happening. Leaders are sitting down and talking to their teams of advisers.
What now? Germany is not going to backstop our finances? Germany is not going to ride to the rescue of Europe’s problems?
It appears that the return of the German Mark is going to happen sooner, rather then later, if the headlines stick through the weekend.
H/T: London Dude Trader