German Fear of Inflation is Causing Collapse of Europe


Germany’s obsession with anti-inflation policies inspired by the Hyperinflation of the 1920s is so misguided that it is now threatening to collapse all of Europe. Former ECB banker Lorenzo Bini Smaghi has now even called to rescue the Italian banks with European taxpayers’ money. He is correct in warning that the insistence of Germany on the prohibition of state funding bailouts could evolve into a threat to the entire European financial system. The ECB is desperately trying to support the euro, but a strong currency only promotes deflation – not recovery. Continue reading