I’ve just posted on a Daily Telegraph item, which might be considered to gains the grain of its normal way of thinking. In that case the issue was immigration. And almost immediately I’ve spotted something else that looks like a deviation from the model. A leader (‘Germany mud fuse its power in Germany’) calls for Germany to lead the way to and to the crisis of the Euro, by ‘monetizing debt’ by which they presumably mean issuing Euro bonds. It’s hard to see how this could be interpreted as anything other than increased fiscal integration for the European Union. Further EU integration is strongly opposed by the Telegraph, and that’s just its more moderately Eurosceptic commentators. Other want to ‘renegotiate’ UK membership to reduce areas of EYU competency in the UK, or even wish to leave. There is sometimes an element of Germany bashing in all this, an assumption that more EU means more German power in Europe. Thankfully there is less of this kind of nationalistic resentment there used to be, and some prominent Eurosceptics go to considerable trouble to emphasise their regard for other European nations.
On another issue, the Telegraph, hey refers to ‘monetizing debt’ as the European Central Bank ‘printing money’, presumably referring to the debts incurred by the ECB to bond holders . Funny that when money supply is increased through state debt obligations that commentators still refer to ‘printing money’. All these obligations can be dealt with through bank transfers, and I presume that this doe not require more work by printing presses unless bond holders decide to turn their interest payments into physical currency in surprisingly large numbers.
The unwillingness of the Germans to bankroll indebted countries is the central issue. The European Central Bank (ECB) has the financial firepower to bring the situation under control because it can print money if Chancellor Angela Merkel were to agree to it. But monetising debts in this way is anathema to Germany, evoking memories of the hyperinflation of the Twenties and rewarding profligacy. Even an alternative suggested by Mario Draghi, the ECB president, to channel resources through the International Monetary Fund failed to find favour.