Unemployment in eurozone countries is reaching epidemic proportions. People in despair organise demonstrations from Dublin to Athens. One country after the other have no option but agree to the austerity policies stipulated by troika. Capital is fleeing to British, German or Swiss Banks. They sense the fear and demand more austerity.
The Nobel laureate Joseph Stiglitz warned in his book Freefall in 2010 that "the notion that cutting wages is a solution to the problems of Greece, Spain and others within the Eurozone is a fantasy". He proposed that "there is a far easier solution: the exit of Germany from the Eurozone or the division of the Eurozone in two subregions". Others warned before him that the Euro was an experiment doomed to failure. Germany did not listen. They have the weight, the interests and the means to do what is necessary, but they opt to protect their own interests against those of Ireland, Portugal, Spain, Italy, Greece or Cyprus. A weaker euro suits them fine: It keeps German products competitive in world markets. The European Union suits them even better: It promotes German products and technologies based on political decisions on how to protect the environment, the workers, the consumers or the security of energy supply, aggravating existing trade imbalances amongst euro-zone countries. German banks, as if by magic, unload their assets in euro-zone sovereign debt, just before a political process is set in motion to give a hair-cut in the debt of the x or y country.
Eurogroup politicians can only agree to the solutions allowed by Wolfgang Schäuble. Eurocrats support budget and pay cuts in member states but they promote budget increases and pay rises for the Commission and other European bodies. The new game is neither corruption nor greed. Nor even fear. It is hypocricy.
A large proportion of people in Europe feel helpless. There is no one they can trust. But there is a solution that can compensate for all the failures of the politicians, the eurocrats or the bankers: JUST STOP BUYING GERMAN PRODUCTS. Buy products or services from troubled economies. This will have the same effect as Stiglitz's proposal in Freefall and will help German politicians to assume their European responsibilities.
