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Soros: Germany should bail out the euro

The Local · 15 Apr 2012, 09:59

Published: 15 Apr 2012 09:59 GMT+02:00

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The US investor, known for nearly bringing the Bank of England to its knees in a wave of currency speculation in 1992, laid out an elaborate plan for saving the common currency, in an interview with the Welt am Sonntag newspaper.

He was also quick to blame the German government and its federal bank, the Bundesbank, for the euro's current woes.

“German policy and above all the Bundesbank stuck with their rigid dogma and it is making it dangerous for the euro,” he said.

But the bottom line of his thinking is that Germany, as the continent’s strongest economy and big winner from the common currency, needs to finance the way out of the current monetary mess.

“The Germans have to decide if they want the euro or not,” Soros said. “If they do, then they have to make the transfers. If not, they should leave [the currency zone].”

But a German exit from the euro would provoke serious damage to German exports, Soros notes. “The new German currency would appreciate sharply,” he warned.

Story continues below…

Soros, a US investor with Hungarian roots, said, “there is no (currency) union without transfers – either political or monetary.”

The Local/mw

The Local (news@thelocal.de)

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Your comments about this article

10:26 April 15, 2012 by derExDeutsche
Comment removed by The Local for breach of our terms.
10:47 April 15, 2012 by MattyB
Whenever Soros advises a plan of action, it's always best to go the exact opposite direction.
10:52 April 15, 2012 by ovalle3.14
Germans stuck with rigid dogmas? No clue what this guy means.
11:06 April 15, 2012 by smart2012
Euro as it is managed today is not working for anyone. German guys going on vacation to turkey as they cannot afford Italy and souh of France anymore (nothing against turkey from my side, but in Germany there is a big thing against turkish), people losing every second day on the stock market, banks in deep s... not borrowing money to people as before, 20% of people in germany earning ca 1000 euro net (u cannot live in DE with those money), people retiring at 67 and now they r already talking of increasing to 70... Plus a strong nationalism coming back with people burning flags of other eu countries.. Is this working?? If u are looking for a 3 rd war yes.
11:10 April 15, 2012 by VictimEuropa
Comment removed by The Local for breach of our terms.
12:31 April 15, 2012 by hallopeople
come on d"""mm bag , why should the german tax payers has to support this people and their children? We are working hard to pay high taxes for health, etc.. education for our children like some countries in europe.The lessons, you save and save don't let tax payers of other countries pick the bills for the future of you and your childrens...Life now is the survival of the fittes. We have to spend our own money now and for us and the future of our children. I get out from ENGLANDbecause their are so much conning there (I don't LIKE to make tricks that's why I don't get this houses and cars ),enjoying their life style got cheap houses , free cars from the govt.they are young and healthy and we tax payers who don't know the loopholes HAVE TO PAY THEIR HOUSES and cars .

Now I'm in Germany still the same?Supporting this kinds of people.
12:34 April 15, 2012 by auslanderus
Why is it always Germany having to save everyones hide? Who will save Germany`s butt? Time that Germany thinks about Germany.
12:41 April 15, 2012 by smart2012

No one is asking Germany to save the others. What soros is saying is that we need a eu bank printing euros, like everywhere else in the world. Otherwise crisis, impacting you guys too in Germany (and me as I live Munich), will never end... Actually it will end in a disaster... Merkel has to decide: alone or partner with eu, but she has to decide soon, being in the middle like now is worsening the situation for me and my kids
12:48 April 15, 2012 by taxpayerrr
ha!ha! "survival of the fittes" sorry to tell you it does not mean that honest people is the only one who will survive . I will tell you this kinds of people who know how to get money from the tax payers of their own countries to support their houses and cars and even other hiding expenses there.They are the one who will survive, the honest are the losers. If they know how to tricks their govoernment and taxpayers they can easily spread their own tricks in other countries.
12:58 April 15, 2012 by Englishted
Comment removed by The Local for breach of our terms.
13:03 April 15, 2012 by Navigator_B
If Germany doesn't follow George Soros's plan, other Eurozone countries will have to default on their debts and that means big losses for speculators like Soros. German intervention would be a transfer of wealth from ordinary Germans to billionaire speculators. 

His sincerity has to be questioned until he fully reveals how much he would gain from such a bailout. Remember that George made a billion pound profit when Britain intervened to try to keep the pound in the ERM.  
13:16 April 15, 2012 by smart2012
@ navigatorB

If Greece fully default (they already had a partial one) u think German banks will not suffer??? And if German banks suffer, who will have to pay to save them? Maybe German ordinary people??? For sure not soros.
13:25 April 15, 2012 by leuteleute
Hmmm... I cannot sleep when my house and cars etc... is paid by the hardworking taxpayers.
14:13 April 15, 2012 by Navigator_B
smart2012,  Yes, German banks will also suffer from any defaults. One of the main reasons for the bailouts so far is to protect the banks, not the people of Greece and other countries. 

Ordinary Germans will have to pay something, one way or another, for the past mistakes of banks and others. If a bank goes bust from too many loan defaults, the savings will have to be protected with taxpayers money. Maybe that would be the best solution because German taxpayers would only be bailing out each other and not the people who caused the crisis.

All that can be done now is to minimise the cost to the German people and that means passing as much of the losses as possible onto the banks' management and speculators like private bondholders and shareholders. 
15:10 April 15, 2012 by smart2012
@ Navigator B, agree, we should start a political party together :-)
17:16 April 15, 2012 by wolfgang60

is this the group og people (supported from the tax payers money) also who can "afford holidays" but also st%%%ling towels and other things inside th rooms of the hotels, and went to buffet table and putting foods inside their bags, it's a funny stories but I know personally this kinds of people and it's the lowest of the lowest you can imagine.
17:30 April 15, 2012 by JohnnesKönig
I think if the Euro needs a bailout, then there is a bigger underlying problem! Time to end it!
23:31 April 15, 2012 by Havel
I'd say let's start to short Soros, the sucker is up to no good
23:43 April 15, 2012 by christmascorner
German People. Beware of sheep in wolf clothing!!!!!!
06:06 April 16, 2012 by derExDeutsche
haha. popular article. all that's missing is the barring of an SS Soldat from Israel. Too funny, good thing Germany doesn't ban or jail anybody for their political beliefs and statements.
06:47 April 16, 2012 by Enough
He only wants it bailed out to save his hide (millions of which he should have to begin with). I say let him loose his shirt and take this world econ/political agitator down a notch.
07:52 April 16, 2012 by bugger
Comment removed by The Local for breach of our terms.
09:43 April 16, 2012 by elboertjie
Debt is the instrument of control and oppression that is used, so the more debt any country gets itself into, the better for those folk who pull the strings behind the curtain.

Soros wants other countries to keep their debt (and increase it) and also Germany to increase its own debt, so Soros is nothing more than someone who wish to control everyone else for their own selfish and misguided agendas.
17:50 April 16, 2012 by Englishted
Trying a new approach ,I have a rope has anyone got a tree.
18:48 April 16, 2012 by derExDeutsche
Mango, I think you're the only who doesn't understand. The Euro Project is a complete shitstorm, and Europe is sacrificing its democracy for it. The Euro Project needs to end. If it continues, it has the potential of creating far greater unrest. WWIII anyone?
01:39 April 17, 2012 by Logic Guy
Well, the most esoteric and ironic thing about this world is that although it is severely troubled, yet there are simple and effective solutions to every problem it has ever encountered. Sufficient knowledge has been available for literally thousands of years, and yet humans remain bewildered in much of the same dysfunctional chaos.

"The Universe / God will "Allow" history to repeat itself over and over again, until an individual or nation evolve to a higher level, or until they become extinct." AD

There is absolutely no way to avoid the quote above. Obviously the human species must very soon consider a new way of thinking.
11:08 April 17, 2012 by AlexR
I am the last person on earth to agree with Soros and his gang but, regardless of his motives, he is effectively correct when he says that "there is no currency union without transfers ­ either political or monetary". This is not Soros' personal opinion; it's what economists and historians have been saying all this time.

Historically speaking, it hasn't been any successful currency union of this size that didn't involve political and monetary transfers. The Latin Monetary Union (between France, Belgium, Italy, Switzerland and later Spain and Greece and others) collapsed due to the same reasons that currently plague the Eurozone. Even the Scandinavian Monetary Union, where all the countries had comparable economies (not like the Latin Monetary Union and the Eurozone), the collapse became unavoidable for the same reasons.

Economically speaking, you will struggle to find any serious economist (except the puppies working in International Monetary Fund, European Central Bank, European Commission and French/German governments) who doesn¦#39;t support what Soros said, i.e., that the Eurozone currency union cannot succeed without transfers of money and political power. And that the current policies of IMF/ECB/EC and the German/French governments of solving the crisis by just imposing harsh austerity measures to the PIIGS countries, is not a real solution but it actually makes things even worse for the Eurozone.

Currently there are 17 countries in Eurozone and only 3 of them (Germany, Finland, the Netherland) still manage to keep their AAA rating. And things are getting worse by the hour. The only solution if they want to keep the monetary union intact, is the monetary and political transfers. Just like the transfers between the (bankrupt) California and US, Southern and Northern Italy or between West and East Germany.

In any other case, the Eurozone will completely break up or we will end up with two Eurozones; one with the triple-A countries and one with the rest.
13:02 April 17, 2012 by DavidtheNorseman
George Soros is only interested in the well-being of .... George Soros. Germany has more than enough folks skilled with banking and economics to figure out what the path ought to be.

That said, it's catch-22, isn't it? The Eurozone has created Germany's present wealth (by driving up the cost of labour in the other Eurozone countries like, say, Greece). If the Zone collapses it's back to cheaper Greek goat-cheese....

Can Germany out produce Southern and Eastern European corruption is the question. With Italy in the mix, I frankly doubt it - and the rest of Europe has no intention of taking orders from Germany so the model where Germany manages Europe is a fairy tale.
13:06 April 17, 2012 by murka
I too agree with Soros (on this isolated issue :)) - such economically diverse territory can not have a common currency without adequate transfers in place. This is true for the USA (California would be broke without federal transfers) and Germany itself - we bailout Berlin and vicinity on daily basis, Greece is peanuts compared to it.
17:19 April 17, 2012 by AlexR
@DavidtheNorseman: "Can Germany out produce Southern and Eastern European corruption is the question."

How can Germany "outproduce" corruption when it's the German companies that participate and promote this very corruption in Southern and Eastern Europe?

Take Greece for example. The two biggest corruption scandals in Greece for the past four decades were both directly related to German companies.The first one, involved Siemens that was bribing Greek officials to win lucrative deals since the 70s and for almost 40 years.


The second one, involved Ferrostaal company that paid millions in bribes during a deal for four German submarines.

08:28 April 20, 2012 by luckylongshot
The Euro collapse is the inevitable consequence of the Rothschild controlled fractional reserve banking system and the plans for a one world currency that Soros is clearly privy to. Blaming Germany is a nice diversion when the truth is that Soros and the rest of the Rothschild cabal should be the ones held responsible. What is good news is that they can afford it as recent reports put the Rothschild family wealth at around 500 Trillion Euros.
23:35 April 22, 2012 by A.Duhe
George Soros was one behind the creation of the Euro....knowing full well it would hit just this point and collapse these sovereign nations into global governance....

Be smart Germany and stop bailing...and that evil Soros is anti-American.

...Let the Euro collapse and each nation once again be responsible or it's own health, wealth and sovereignty....and currency and bills...put an end to this garbage of collectivism ...meant only to enslave the working people to the politicians and the non workers .

The end to the Euro cannot come soon enough. Germany cannot be expected to pay the way for countries such as Greece and their profligate citizens...some people's, as some countries are simply more..., make more responsible financial decisions and deserve better returns for their efforts.... Not to be left holding the bill for others. Break the Euo and sink or swim by your own efforts....

Greece lied about their debt to enter the Euro and then spent away...the wealth of other nations...

The same holds true within the USA...

I am tired of paying for the whiner class...

Forget Affirmative Action or any program to equalize those who will not work or contribute equally. Afro Americans living today suffered not from slavery nor did those paying their bill exist during slavery ..

People suffer only from excuses provided and agreed to by pandering government and corrupt politicians. Enough! This is breaking our country here in the USA...We are at the abyss because of this nonsensical thinking and pandering political rules.

Like Greece ...grow up, stop expecting something for nothing and receive according to what you contribute.

Germany - stop paying the way for the lazy or the unevolved. Your people deserve better. You are replaying WWI again....
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