My Advice to Italy and France: Don’t Poke Germany, They Might Leave

Varoufakis has said this in the past, that if maintaining the illusion of an artificial fiat monetary union becomes too expensive for those who have to support it (Germany), then Germany will simply exist. There is no problem with Germany going back to the Deutschemark. Or Mark. Or whatever it is. (Or GOLD or God’s sake.) It would cause a minor disruption but nothing catastrophic.

Then again, even Germany is sporting 80% debt to GDP. Back in the 19th century governments never ran more than 10%. Germany may well just leave because they cannot afford to finance the debts of even more indebted countries. France is at 93%. Italy, well, you know, they’re the second highest debt in the Eurozone.

France and Italy are now ganging up on Germany. This hasn’t gone well in the past. Those two should shut up, or they might push Germany out, simply because it doesn’t want to fund all this nonsense anymore.

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