Euro Crisis Will Strike Back with Full Force in Autumn


27 July (EIRNS) Numerous German media, Handelsblatt and Wirtschaftswoche most of all, note that with the Bundestag parties trying to avoid any mention of the euro crisis, a rather unattractive and boring election campaign can be expected. However, although politicians are so silly as to believe that if one does not talk about it, it isn’t there, the crisis is there — and it is deepening. It will be much worse after the elections, and Handelsblatt interviews former ECB chief economist Juergen Stark on that. He warns that the crisis will become so severe that Germany and the ECB will be forced to come to the rescue of France, and that Draghi will be forced to have the ECB launch another OMT program, pumping hundreds of billions into the markets.

This sudden media attention to the crisis allows euro-critics to make it into the mainstream media. Wirtschaftswoche interviews Wilhelm Hankel, who reiterates his proposal to replace the insalvageable euro with a parallel, new system, an ECU II which keeps the euro as an accounting and referential unit, but has the national currencies returning. Even if the new d-mark should be considerably revalued, it would be a benefit for the Germans, because it would increase their purchasing power and make imports much cheaper. It would also reduce Germany’s euro-denominated debt, since Germany would have to pay less with an upvalued mark, Stark says.

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