_ All EU nations indicated that they might join the intergovernmental agreement about the currency — except Britain. David Cameron adamantly refused. He said he wanted protection for Britain’s financial sector that produced about 10% of the country’s wealth. But really he was objecting to entering into anything run by Germany.

This is understandable after fighting two world wars against Germany. But this time England can’t play the America card the way Churchill did with Roosevelt. America doesn’t care what Europe does as long as the market likes it. We want to avoid another recession ourselves.

So David Cameron can go bark up his own tree.

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_ During the last days of the Third Reich Hitler’s staff loyally followed him because they thought he had a secret weapon. The worse things got, the more likely they thought he was to deploy it. They had only to trust the Fuhrer and he would get them through the war.

This is eerily parallel to the feelings of many in the EU right now. They have a faith in Sarkozy and Merkel to pull them through the Euro Crisis.They are not quite sure how it would work, but they just know the leaders won’t let things get worse.

It could be that the leaders won’t know what to do to get through the crisis and will let the EU fall apart just as Hitler couldn’t stop Germany from being conquered.

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_ The idea that Germany’s idea of a treaty change for the Euro Zone is not democratic is a political ploy that Britain is trying to mount against Germany in a move that looks like a continuation of the World Wars of the last century. Anyone who watched the “Yes Minister” or Yes, Prime Minister!” series on the BBC knows that the aim of Britain’s foreign policy for hundreds of years has been to keep Europe weak and divided. They fear the growth of a German super state with continent-wide influence. It was this fear that led the British and Churchill to give up their Empire during World War II just to defeat Hitler.

The truth is that Germany has been growing in influence and economic power since the unification of Germany in the mid-nineteenth century under Bismarck. This continued under Kaiser Wilhelm II during the First World War and Hitler during the Second World War. The Germans could never seem to get it right. Britain fears that this time they may have gotten it right.

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_ S&P has threatened to downgrade most of the countries in the EU. Some people get quite upset by this. But anybody who knows a little history would see through it.

All the major credit rating agencies are Anglo-American. They think like Anglo-Americans. They expect the Germans to appeal to the lowest common denominators, while preserving a certain class consciousness, of course. But the Germans have a different philosophical bias. They believe in standards that everybody should be raised up to.

The threat of a credit downgrade is just a way of trying to enforce an Anglo-Saxon mold on the Germans. That is futile. Viva la differance!

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_ Merkel and Sarkozy hope to push through the treaty changes at the meeting of EU leaders set for Thursday and Friday in Brussels. They claim they would ideally like agreement among all the members of the European Union. But they would be satisfied with agreement only among the 17 members of the currency bloc.

They claim they have reached an agreement on all the proposals and are ready to act. They hope this accord will restore investor confidence.

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This is the week when everybody says everything is at stake. December 9 is billed as the date that makes or breaks the Euro Zone. It’s roiling the world’s economic markets.

But according to Der Spiegel the Germans feel good. The Christmas markets are busy. The shopping malls are crowded. 55% of Germans say they aren’t personally involved in the Euro Crisis. They have faith in their Chancellor. Her popularity rating is above 50%.

Despite the fact that they think worse is yet to come for the euro before everything settles out, they like the fact that Merkel holds firm on her positions and doesn’t yield. They like being the leaders of Europe. They don’t want to return to the German mark. They realize the euro is good for exports, and Germany is an export-oriented country.

It’s expressed best by Volker Kowder, the floor leader for Merkel’s CDU. He says, “Europe is speaking German.”

People in Anglo countries may think this sounds like a chauvanistic statement for a country that lost two world wars. But from a broad historical point-of-view Germany’s been emerging since unification in the mid-nineteenth century. It’s the powerhouse of Europe. And despite defeats, it still wants to figure out how to be the leader of Europe. Germans think they may have finally figured it out.



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_ Wolfgang Schauble wants 20% of the debt for each member country of the Euro Zone to be put in a redemption fund to be paid off over 20 years. Every country needs to strive for a debt at 60% of GDP. Germany has a national debt at 80% of GDP. They are trying to reduce it. So they would put 20% in the fund, too. They intend to pay off the debt with tax revenues. That is what all member countries should do.

This all seems perfectly reasonable to Germans. It’s the German way of doing things and want to spread it around Europe. Merkel says it’s “interesting” but intends to push mainly for the main proposal with “teeth” at the summit on December 9.

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_ Merkel and Sarkozy want treaty changes with a majority vote in the Euro Zone to carry the day, not a unanimous vote which has been required until now. Certain smaller countries express doubts, but do they really have any choice? Smaller countries will probably go along with the majority decision whether they grumble about it or not. I think it’s very unlikely that many of the countries will drop out and go it alone. They certainly don’t want to join Russia!

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Unemployment is at a 2 decade low of 5.5% in Germany. It’s only 4.1% in Austria. The jobless rate across the Euro Zone reached a record high of 10.3% with the highest rate of unemployment being 22.8% in Spain. This highlights the north/south divide in the Euro Zone. Germany can’t prevent everyone else from falling into a recession. That’s why the ECB plans to lower interest rates next week.
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_ Not only is the U.S. holding free trade talks with the EU, it has signed a secure trade pact with Europe. It doesn’t act as if it expects the Euro Zone to dissolve tomorrow. To prove that point today, Wednesday, November 30, 2011 the Fed announced that it was going to lend money to European banks. The Bank of the United States becomes the Bank of Europe. Obviously in the wake of World War II we want Europe to become the United States of Europe.

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