It’s getting hot in here…
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Back on April 24 we wrote: Sorry Angela, The Jig Is Up.
The gist was: People across Europe were finally beginning to vocally question the German model of dealing with the debt crisis, which was: austerity + strict reforms.
The reason people were questioning it was simple: It wasn’t working. Not only were economies collapsing around the periphery, it wasn’t accomplishing the official goal, which was to make the state solvent. Borrowing costs had only been shooting up.
Of course, The Germans loved the German model for the Euro, since it’s produced such tremendous benefits. The cheap currency has allowed the German economy to thrive even as its peers collapse. Unemployment is ridiculously low in Germany. The country is still growing. Borrowing costs are at rock bottom as money races into its borders and banks.
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