Social evolution to rapid revolutionary change and contemporary globalization dynamics: Emphasizing the an Analysis of Global Economics.
An article that recently appeared in The Korea Herald, "U.S. And Germany stress cooperation" details a visit to Germany by U.S. Treasury Secretary Tim Geithner, who met with his German counterpart to discuss the financial crisis that has enveloped Europe as of late. The context for this meeting was important, as the European Union's currency, the Euro, has consistently been devalued in the past few years and several countries that are part of this alliance (17 altogether) are contemplating various measures in which the currency and the economic solidarity of the EU could be saved.
The crux of this article, which directly correlates to Hans-Werner Sinn's opinion editorial, "Why Berlin is Balking on Bailout" actually has less to do with the meeting between the two financial heads of the U.S. And Germany and more to do with possible solutions to the pecuniary woes plaguing the EU. One of the solutions that was discussed near the conclusion of "U.S. And Germany stress cooperation" is the fact that the European Central Bank, which is the primary issuer of the Euro, could actually enact a series of purchases on bonds that could help to boost the economies of the countries affiliated with the EU. Despite the temporary alleviation of the financial crisis that such a move would inevitably bring, Germany has...
Sinn's article details a number of reasons why, beginning most eminently with the fact that such purchases on the part of the ECB are in direct violation of the Maastricht Treaty, which would more than likely be "rejected by Germany's Constitutional Court" (Sinn).
A fact that both articles allude to, however, is that by failing to endorse measures for the ECB to purchase bonds in attempt to rally its flailing economy of the southern states that are part of the EU, Germany is essentially attempting to stay clear of the debt in this part of the world. This attempt on the part of Germany is admirable in one sense, as the last thing the nations of Europe need is another country burdened by debt, yet may adversely affect the member nations of the EU due to the German's fastidiousness. Moreover, another fact that Sinn implies in his article is the fact that such a bailout on the part of the ECB is somewhat akin to how the U.S. Federal reserve bailed out several financial institutions leading up to its fiscal crisis of 2008. Although such solutions appear to lessen the impact of financial matters in the short-term, they simply overburden the federal government that has attempted to the bailouts, and made things worse for itself in the long run. Anyone cognizant of U.S. economic developments in the past five to 10 years can adjudge this fact to be verifiable. Or, to put it in Sinn's terms, "Such schemes…
