{"id":4583,"date":"2012-06-10T07:17:22","date_gmt":"2012-06-10T11:17:22","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=4583"},"modified":"2012-06-10T07:17:22","modified_gmt":"2012-06-10T11:17:22","slug":"berlin-is-ignoring-the-lessons-of-the-1930s-ft-com","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/10\/berlin-is-ignoring-the-lessons-of-the-1930s-ft-com\/","title":{"rendered":"Berlin is ignoring the lessons of the 1930s &#8211; FT.com"},"content":{"rendered":"<p>Germans must understand that bank recapitalisation, European deposit insurance and debt mutualisation are not optional; they are essential to avoid an irreversible disintegration of Europe\u2019s monetary union. If they are still not convinced, they must understand that the costs of a eurozone break-up would be astronomically high \u2013 for themselves as much as anyone.<\/p>\n<p>After all, Germany\u2019s prosperity is in large measure a consequence of monetary union. The euro has given German exporters a far more competitive exchange rate than the old Deutschmark would have. And the rest of the eurozone remains the destination for 42 per cent of German exports. Plunging half of that market into a new Depression can hardly be good for Germany.<\/p>\n<p>via <a href='http:\/\/www.ft.com\/intl\/cms\/s\/0\/c49b69d8-b187-11e1-bbf9-00144feabdc0.html#axzz1xHuDXIr4'>Berlin is ignoring the lessons of the 1930s &#8211; FT.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Germans must understand that bank recapitalisation, European deposit insurance and debt mutualisation are not optional; they are essential to avoid an irreversible disintegration of Europe\u2019s monetary union. If they are still not convinced, they must understand that the costs of a eurozone break-up would be astronomically high \u2013 for themselves as much as anyone. After &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/10\/berlin-is-ignoring-the-lessons-of-the-1930s-ft-com\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Berlin is ignoring the lessons of the 1930s &#8211; FT.com&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33],"tags":[365,962,1001,1295,1299,1417,2348],"class_list":["post-4583","post","type-post","status-publish","format-standard","hentry","category-uk-europe-countries-regions","tag-bank-recapitalization","tag-debt-crisis","tag-deposit-insurance","tag-euro-zone","tag-eurobonds","tag-fiscal-union","tag-monetary-union"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Berlin is ignoring the lessons of the 1930s - FT.com - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Berlin is ignoring the lessons of the 1930s - FT.com - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Germans must understand that bank recapitalisation, European deposit insurance and debt mutualisation are not optional; they are essential to avoid an irreversible disintegration of Europe\u2019s monetary union. If they are still not convinced, they must understand that the costs of a eurozone break-up would be astronomically high \u2013 for themselves as much as anyone. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.\",\"sameAs\":[\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\",\"https:\/\/www.instagram.com\/colin_thepatientinvestor\",\"https:\/\/au.linkedin.com\/in\/colintwiggs\"],\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/author\/investor\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Berlin is ignoring the lessons of the 1930s - FT.com - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Berlin is ignoring the lessons of the 1930s - FT.com - the patient investor","og_description":"Germans must understand that bank recapitalisation, European deposit insurance and debt mutualisation are not optional; they are essential to avoid an irreversible disintegration of Europe\u2019s monetary union. 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He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.","sameAs":["https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/","https:\/\/www.instagram.com\/colin_thepatientinvestor","https:\/\/au.linkedin.com\/in\/colintwiggs"],"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/investor\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-1bV","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":2365,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/26\/fiscal-union-is-the-only-real-solution-credit-writedowns\/","url_meta":{"origin":4583,"position":0},"title":"Fiscal union is the only real solution | Credit Writedowns","author":"ColinTwiggs","date":"November 26, 2011","format":false,"excerpt":"A fiscal union led by Germany would in effect force debtor nations who want more German and ECB support to surrender more of their fiscal sovereignty, in a binding way, to EU Commissioners, who would have greater authority in shaping national budgets and fiscal policies. Rather than ECB bond buying\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10850,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/09\/richard-koo-revitalizing-the-eurozone-without-fiscal-union-april-2012\/","url_meta":{"origin":4583,"position":1},"title":"Richard Koo: Revitalizing the Eurozone without Fiscal Union, April 2012","author":"ColinTwiggs","date":"September 9, 2014","format":false,"excerpt":"Richard Koo in a 2012 paper identifies 3 challenges facing the eurozone: The current crisis in the eurozone consists essentially of two macroeconomic problems and one capital flow problem. The first macro problem is profligate government spending, as exemplified by Greece. In such cases austerity is required: the government must\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7617,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/30\/eurozone-risks-japan-style-trap-as-deflation-grinds-closer-telegraph\/","url_meta":{"origin":4583,"position":2},"title":"Eurozone risks Japan-style trap as deflation grinds closer | Telegraph","author":"ColinTwiggs","date":"April 30, 2013","format":false,"excerpt":"Ambrose Evans-Pritchard reports: The region\u2019s core inflation rate \u2013 which strips out food and energy \u2013 fell to 1pc in March. This is far below expectations and leaves monetary union with a diminishing safety buffer. \u201cThe eurozone is tracking the experience in Japan in mid-1990s. There is a very high\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2363,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/26\/euro-pressures-mount-necessary-for-eventual-resolution-credit-writedowns\/","url_meta":{"origin":4583,"position":3},"title":"Euro Pressures Mount&#8211;Necessary for Eventual Resolution | Credit Writedowns","author":"ColinTwiggs","date":"November 26, 2011","format":false,"excerpt":"Germany is using this crisis to tighten its hegemony in Europe. It needs to close the fiscal loopholes. Many have recognized that this was a necessary birth defect in EMU\u2013monetary union without fiscal union. A fiscal union\u2013where countries, especially those that struggle to adhere to the Stability and Growth rule,\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1631,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/28\/socgen-ecb-will-have-to-act-ambrose-evans-pritchard\/","url_meta":{"origin":4583,"position":4},"title":"SocGen: ECB will have to act &#8211; Ambrose Evans-Pritchard","author":"ColinTwiggs","date":"October 28, 2011","format":false,"excerpt":"Albert Edwards from Soci\u00e9t\u00e9 G\u00e9n\u00e9rale said the ECB will have to act, over a German veto if necessary. \"The increasingly frenzied attempts of eurozone governments to persuade financial markets that they can draw a line under this crisis will ultimately fail.\" \"The impending threat of a euro break-up will force\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1055,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/28\/frau-merkel-it-really-is-a-euro-crisis-ambrose-evans-pritchard\/","url_meta":{"origin":4583,"position":5},"title":"Frau Merkel, it really is a euro crisis \u2013 Ambrose Evans-Pritchard","author":"ColinTwiggs","date":"September 28, 2011","format":false,"excerpt":"The reason this crisis keeps grinding ever deeper is because the euro itself is a machine for perpetual destruction. The currency is fundamentally warped and misaligned. It spans a 30pc gap in competitiveness between North and South. Intra-EMU current account deficits have become vast, chronic, and corrosive. Monetary Union is\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=4583"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4583\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=4583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=4583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=4583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}