Euro Until the Endsieg
Toni Straka
The Prudent Investor
Breathless but futile discussions about the creation of a new layer of debt in the form of Eurozone bonds are going nowhere. Jean-Claude Juncker, head of the eurozone group of finance ministers, now clashes with France and Germany who both reject the proposal as it would raise their financing costs. On Thursday he said in Germany's main TV news "Tagesschau" that Eurozone governments would have to finance 40% of their debts via Eurozone bonds, which would lead to a northward conversion of German yields with their weaker Euro brothers in arms.
As the Euro dream has rapidly mutated into a nightmare for Greece and Ireland, with Portugal and Spain to follow for sure, I note a fatal tendency in EU circles to hold out for the Endsieg despite all the contrary evidence pointing to a not too distant disintegration of the common currency.
The term Endsieg was first coined by immortal social-libertarian Austrian politicial critic Karl Kraus in 1918 - he was the official Austria's pain in the a.. a century ago with his weekly newsletter "Die Fackel" - and was hijacked later by Adolf Hitler's propaganda minister Joseph Goebbels.
'Endsieg' became part of the Nazi doctrine before the ultimate downfall of the Third Reich: Temporary losses (including of civilian lives) notwithstanding, the 'Third Reich' would ultimately prevail, and thus any breakdown in allegiance to Nazi ideology was not to be tolerated. This conjuration of final victory became more desperate in 1943 when allied successes forced Germany onto the defensive. Joseph Goebbels still spoke about the 'Endsieg' as late as March 1945.
The Euro propaganda ministry in the European Central Bank in Frankfurt frantically tries to implant the similar wrong belief that all is right with the Euro. What charts do they watch?