Constantin Gurdiev

Are Germans getting the message?

In Blog, Politics by Fedayn8 Comments

Constantin Gurdiev

Constantin Gurdiev

In an interview with Arte TV of Germany, Constantin Gurdiev explains to the watching German public that their impression of bailing out the Irish is in fact the inverse of what’s actually occured as Irish citizens shoulder half of Europe’s debts.

Comments

  1. Of course, he is only partly right.

    It is the debt of the German people because the four of cheap money that flooded out of France and Germany beginning in 2003 was created by ECB policy, specifically to boost German and French economic performance. Germany was in breach of Maastricht deficit limits and the German economy was fairly moribund. When the ECB dropped the interest rates to suit Germany, it did so regardless of the obvious impact such a policy would have on Ireland. German banks had a glut ofoney they had to invest, and they gambled on Ireland.

    This was the result of public policy. Strictly speaking, such debts should just crystallise as losses, but if a public is to rake on the debt, the the majority of it belongs to the German public, not the Irish.

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