Thu Jun 5th, 2014 at 10:47:55 AM EST
As certainly everybody here knows inflation across Europe is running way below target. This month it has come in at only 0.5%. Now how did SPON (Spiegel Online) a big and influential news page react to this news? Well it gave us a report about Sparkassen-Präsident Georg Fahrenschon who demands higher interest rates...because currently the 'German Saver' is not high enough interests on his saving. And this is going to threaten peoples retirement savings.
Now, could it possible that low interest rates are a product of the collapsing European economy? Would it not be prudent focus on the amount of goos produced in Europe, instead of focusing on how much you get for your savings? Should we demand that you actually have to take some risk if you want to have a high interest rate?
Obviously, these are questions not asked in the German Media.
front-paged by afew
Last night I watched Tagesschau. These is a 15 Minutes news show, which is watched by a huge amount of Germans. Not one second was spend on lowflation. I have now doubts that tomorrow, after the ECB has decided to do some minor rate cuts, we will have an extended scene on people warning about all the bad bad things the rate cuts do to the 'German saver'. Then ominous warnings about inflation. Its just around the Corner. Hans Werner-Sinn will pontificate how this decision once again shows how the German saver is being expropriated.
If you now want to take all this a step further you can turn to Wirtschaftswoche. The biggest and most influential Business magazine in Germany. The issue of the last month was dedicated to making fun of all those lefties who would think that deflation is an issue we should be worried about. The issue of this month is dedicated to a stern warning about the dangers of cheap money! It could cause inflation, did you know?
This reporting drives me crazy. So I thought I write a diary about it. I actually wrote two diaries way back in 2008, when I was actually optimistic about the EU. Today I thought that I maybe should vote for AfD, just so that Germany leaves the Eurozone, and everybody else is being saved from our Madness when it comes to Monetary policy.
It is now even a matter of left or right! I know a lot of people who are leftish, yet who are constantly bitterly complaining about the horrible inflation. I discussed with a friend of mine just recently about it. I argued that the rise in the Apartment prices in the city where I live might be a because the city is popular and the number of apartments is constrained. And so demand outpaced supply. But for him it seamed clear that it is caused by the ECB, and that the ECB should fix it.
More and more I get the feeling the Eurozone can not be saved.
Well anyway, at least at work I have many colleges from southern Europe. They agree with me.