Merkel Ready to Negotiate: But “All the Kings Horses, And All. . .”

posted by Ida B. Wells IV @ 0:22 AM
May 18, 2012

What is going on in the European Union (EU) is mindful of the ending of that nursery rhyme, “All the Kings Horses and All the Kings Men Couldn’t Put Humpty Dumpty Together Again!” Or to put it another way, German Chancellor Angela Merkel may be offering ‘too little, too late!’

    But in this case, if ‘the king’ falls, the crash will send a fearful jolt, not only throughout Europe, but in the rest of the world, including the United States.  But voters in Greece have made it clear that they can no longer suffer austerity.

In their article for The New York Times, “Softening, Merkel Says She Is Open to Stimulus for Greece,” Nicholas Mulish and Melissa Eddy write that Merkel is “ready to discuss stimulus programs to get the Greek economy growing again.”  And also that she is “committed to keeping Greece in the euro zone.”

Of course, they also point out that this new approach is quite different from the hard line that the Chancellor took both before and after the Greek people rejected their nation’s major parties that had agreed with austerity.  Merkel had insisted that Greece either makes the next loan payment due or leave the EU.

Obviously, the Chancellor now sees the political ramifications of what Greece’s exit will mean to the dozens of other nations in the EU, that are likewise struggling through austerity.  Now she knows other countries are also near the edge.

Now Greeks hurriedly run to ATM machines to get their savings in euros out of banks before their funds are devalued in any new Greek economic system.  Bloomberg estimates that as of today “Anxious Greeks have withdrawn as much as 700 million euros ($893 million) since the inconclusive May 6 election.”

To many commentators, the run on the banks signals Greece unraveling. But to the American economist Paul Krugman, Greece’s collapse will soon be followed by complete disintegration of the euro [i.e. and of the European Union?]:

“1. Greek euro exit . . . 2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany. 3a. . . . with banks forbidden to transfer deposits out of country and limits on cash withdrawals. 3b. Alternatively, . . . huge draws on ECB credit to keep the banks from collapsing.

“4a.  Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision. . .— basically, to give Spain in particular any hope . . both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or: 4b. End of the euro.”

Our blogs stress that these events will result in economic tsunami, not just for Europe, but for the United States . . . and they will ultimately lead to World War III.  These events signal it is time to open Christian prayer books and pray!  As Apostle Paul instructs:  “I exhort . . . that, . . . prayers . . . be made . . . for all that are in authority; that we may lead a quiet and peaceable life . . .(1 Timothy 2:1-2).”

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