Wolfgang Münchau has it right in his article in the SPIEGEL. A legend is created on one end of the political spectrum about Germans getting ripped off in the financial markets by evil foreigners. That legend is spun on the same day that ECB president Mario Draghi visits the German Bundestag (federal parliament) to explain his proposals. Hans-Werner Sinn and his TARGET-2 nonsense hits exactly the same chord. Grexit is the plan, and it will be sold as betrayal. The preparations in Germany for returning to nationalism are gaining speed, driven by the unwillingness of both politicians and the financial sector to tell the truth about the German Exportweltmeister system. Net exports led to a portfolio with more and more non-performing loans from the periphery, and this – together with the birth defects of the euro – is what led us into the crisis.
A Grexit and then an exit of more euro zone members would lead to high unemployment in Germany. The export sector would find itself priced out of markets as the new currencies will all devalue against the euro (or the deutschmark). Once again, international finance would be the scapegoat for German mass unemployment after a financial crisis.
Golddämmerung in Germany
Dirk Ehnts | Berlin School for Economics and Law