The Wall Street Journal can tolerate a perpetual Greek debt crisis or one confined to the pigs: Ireland, Greece, Portugal, and Spain, even though Spain is the fourth biggest economy in Europe. It got a little concerned when Italy, the third biggest economy started to have trouble selling its bonds. Then the suspcion centered on France. This was the cause for scrutiny. But when Germany’s growth started slowing down in the latest report, the Wall Street Journal in the article, Fresh Plan For Europe Crisis, pulled out all the stops.
It’s not that Germany is having trouble selling its bunds. That would be unthinkable. But in a report just released, its economic growth in the second quarter stalled after growing at an incredible pace in the first quarter, 5.5%. It’ now only .5% — practically dead still. Everyone in the Euro Zone was counting on Germany’s money to fund all those bailout loans. Now Germany won’t be able to afford it.
This lack of growth has occurred at just the wrong moment when all the other economies of the Euro Zone need restructuring and bailouts. The Journal goes so far as to predict, “that ahs pushed the continent’s common currency to the brink of collapse.”
Remember, the euro is the D-mark, and the old D-mark is the euro.