Germany is suffering from slower growth during the second quarter of 2011. With Germany’s slow growth, the prospects of solving the bond crisis in Europe are dimming. The euro is essentially the old D-mark. Everyone who adopted it was privileged to adopt it. But Germans refuse to turn it into a currency with standards looser than the ones they would have if it were just the currency of Germany.
For one thing. The German budget deficit is supposed to shrink to 1.5% of its GDP. It’s tiny compared to deficits in Japan, the United States, and the rest of Europe.
Germans had to endure the hyper-inflation of the early 1920’s during the Weimar Republic. This led to the rise of Hitler and National Socialism. They will never forget that you have to balance your budget.