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My view from Dar es Salaam, Tanzania, East Africa

As you witness the machinations in the European Union with market perspective riveted to that situation please do not ignore reality. Perception makes price in the short term but reality is the unavoidable

The following comment from CIGA Pedro throws light on what appears to be a destructive act by Germany.

Dear Jim,

Given the American predilection for German rehabilitation after WWII, and the often-overlooked symbiosis between Germany and America for well over 100 years, it looks like this may have been the plan all along. Germany lays down the law in Europe, France is marginalized, and an Amero-IMF entre is provided into EU financial matters. Brussels is humiliated... there is now an American star on the EU flag ... and Germany is the country that put it there.

Maybe those Marshall planners were right when they chose to finance German industrial rehabilitation before and above all others after WWII. In their reasoning they clearly stated that, ultimately, the German economy was the only one really worth helping within Europe. Today the rest of Europe looks as marginalized now as it did then.

Regards,

Pedro

Germany's economic success over time stems from their understanding of disciplined money. At one point, the United States understood it as well. Unfortunately, political expediency has come to replace the discipline necessary to support a solid economic foundation over the course of a few generations. This transition has created many of economic trends we see today.

Board of Governors Monetary Base Adjusted for Reserve Requirements and Change Year-over-Year (YOY)



Further Reading: moneyandmarkets.com