At the meeting of G8 Angela Merkel was scolded by other leaders and the concept of austerity has been criticized. There has to be "growth", said Barack Obama accompanied by other leaders. Well, in fact Germany has a good and stable growth... And it is because of the conservative fiscal policy, savings and diligence. These are the keys to growth. Germany has a real growth, unlike U.S., where FED and Obama created a fictitious growth, by printing dollars and accelerating the inflation. So in fact Merkel is the most active pro-growth politician - one that makes real results.
On the other side are Obama, Hollande and some other socialist country-leaders that only speak of "growth" but make no results. In fact, when say "growth" they understand something other - printing money to "stimulate" the economy. But they don't call it "printing-money", because everyone knows what does it mean. Instead they call it "growth strategy" - a new label with the same content.
At current moment there is no other source of money for government "growth" spending than printing it. I.e. making fake money.
Especially in EU, all government budgets are squeezed to maximum, all taxes are at max possible level choking the economy. And no enough income, still deficits exist. Also exhausted is the loan method, as governments are deeply indebted and have no much possibilities to borrow extra money. In fact this indebting is to high extent due to past "stimulus and growth" spending. So with no tax income and no borrowing possible, the only way to find money for government squandering is by printing money... That is what Hollande and Obama are talking about. That is the only such irrational leaders can do. To print and spend artificial money.
I think all this will end with a rebirth of the German Deutsche Mark. Germans will leave the Euro to those that want to do experiments with stimulus and "growth" by money-print. Germans will restart their old currency and will create a fortress around their economy with a heavy walls built by Deutsche Marks. So after Hollande, Tsipras, Rajoi and some other leftish leaders collide with the crude reality, they all will go to beg for Marks, although they will have plenty of Euros ...
May 21st 2012