Friday, July 22, 2011

'Germany feeding off debt-ridden zones'

Source: Press TV

Germany's export market is parasitically benefiting from fragile, debt-stricken economies and would therefore prefer to sustain the status quo, an analyst says.

“Germany benefits from having these weaker economies stay weak because it keeps the Euro relatively cheap and helps their export market,” said Paris-based financial journalist and broadcaster Max Keiser in an interview with Press TV.

He likened EU efforts to prevent the collapse of the European Monetary Union (EMU) in an emergency meeting in Brussels to continuing to “kick the can down the road.”

“None of these policies are addressing the actual problem here, which is that the growth can't possibly be robust enough to pay down these debts.”

“They [EU leaders] will continue to impose austerity measures on the peripheral countries and this is just going to perpetuate the current environment of unsustainable debts, failed policies and a bankrupt central government in the ECB (European Central Bank),” he added.

Keiser dubbed the current economic crisis as a “charade” tracing its roots to US banks in particular, which are merely in pursuit of gold.

“That's what this whole charade is about. Stage a fake financial crisis and give us your gold. In my opinion that's really the dimension of what we're talking about.”

Keiser advised financially stricken countries to follow Iceland's suit in divorcing themselves from these “corrupt banking institutions.”

“Obviously these countries like Greece and others would do much better if they had their own currency and were in control of their own destiny.”

The eurozone plunged into a financial crisis in early 2010, as the specter of insolvency threatened heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain.

European leaders held an emergency meeting in Brussels to agree on further aid for Greece amid fears that the debt crisis could spread to other eurozone countries.

The EU debt crisis continues to undermine confidence in global markets, and has gone as far as to jeopardize the existence of the euro itself.

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