Bye Bye Berlin So Say German Businesses…

Is Merkel upside down in her thinking?

Should the German economy support the euro, at any price?  Not according to many German business leaders who are wondering where the seemingly never-ending euro-zone bail-outs, to which Germany is the biggest contributor are taking them.  As many are beginning to think that the cons of such support outweigh the (considerable) advantages of the single-currency argument.

To further aggravate their concerns is they are made uncomfortable by what they see as political drift in Berlin. Many Germen based business leaders, say they have lost faith in the ability of Angela Merkel’s government to steer Europe out of trouble. Because as they look towards Berlin from their holds elsewhere in Germany, they seem to only see weak leadership coupled with perverse decision-making and sorely lacking communications.

However as an outsider looking in, why is there a belief that Germany (read as Angela Merkel) must Sheppard the whole of Europe away from the abyss of over spending brought on by their own (not German) miss management?  As should they not be looking at their own Robber Barron fiefdoms as who do they think are buying their products either direct or indirectly?

It seem that many wax for an earlier day when the world (Germany) was a simpler place and the Deutsche Mark  reined as king and what happened in Germany stayed there.  However as the Americana adage goes, you can’t go home and the sooner this becomes a realization, the sooner it’s possible to move on to solve the real problem at hand.

As this isn’t a just German problem either as the entire G7 needs to wake up to the fact that more money and please read this as hard currency is flowing outward then is coming back into their countries.  Never before has such a condition been possible, therefore the standard rules of engagement by which all have become comfortable living by no longer work.

As here is a good example as many Germans see the purchases [by European Central Bank’s decision to buy Spanish and Italian bonds] as a dangerous deviation from its normal “orthodox” monetary policy, and a step towards yet more fiscal support.  While I too question this as the purchase of a nations bonds is also the delusion of their GDP (Gross Domestic Product), yet as a stop gap its critical to stem a potential default cycle so the unorthodox of yesterday can quickly become the “orthodox” of today is what all must come to understand…

About Joseph Campbell

As a strong believer in the fact that "people work for people", it has been a life driver to better to understand the complexities of the various aspects which drive efficiency within this axiom, especially the concepts of leadership. Supporting this, I have been fortunate enough to having experienced this as leader on a global basis over the last decade and half. During this time it has been clear there are three core drivers being Life, Leadership and Economics.
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