Germany, The alleged “demise of the Eurozone” and the banking wars!


Here we go again with the “Greece 2” case, being played all over again in Cyprus, although now for completely different reasons, serving completely different purposes. We have once more the “usual strangers” speaking of the demise of the Euro and the Eurozone, but if we had one penny everytime this phrase was written, we would be…worrying about our bank savings honestly. The last one was a joke, meaning that we would be oligarchs as well having been reassured that our money is well deposited in the “tax free paradises” and it would be more likely for the Eurozone to be destroyed rather than our savings to “evaporate”.

We are here, though, as ordinary people, above all judging the situation from a scientific and a sociological perspective, not to mention a historical one as well. For the last time, let’s note, The Eurozone will be fine.

We have seen this very same scenario when Vladimir Putin was unleashing a “pogrom” against his country’s oligarchs, well it worked back then, so much so, that Germany decided to apply the same politics on a Euro/Global scale. Both Germany and Russia have more to win than to lose and this was first stated by us, then well esteemed publications such as the Financial Times published something analogous, which was on the same line. Then Bloomberg published the First Deputy’s Prime Minister statement about Russia having more to gain than lose and last but not least the Russian President’s adviser spoke of the beginning-not of the end of the Eurozone-but the beginning of a worldwide de-offshorization process. The message is clear both from the German and the Russian side, “you can run but you can’t hide, we will find you and we will tax you”. There’s no more Panama, Caymans, Marshal islands, Cyprus and so on and so forth. It is unbelievably provocative for some to hold the world’s GDP in offshore companies and banks and to go untaxed, while the majority of the people of the Western economies strive to make a living.

In Greece, Germany used other measures, but that was not a decision based on lack of “prior inspiration” in terms of taxing the bank deposits. When the whole thing started, Germany needed the banks, the EU was at best, a loosely connected networks of reluctant states, each wanting to follow its own way. If there ever was a danger for the Euro to collapse was before the financial crisis of 2008, not after. We base this statement on the fact that the “external blows” that Europe has suffered made it more resilient, as the member states began gathering around Germany. Some tend to forget history, yet history is very important. In the not so distant past, during the ’90s, Germany spent enormous sums of money to rebuild Berlin, which was until then divided by The Wall, yet few are aware that this money came from Germany’s victory in the stock exchange rallies, which marked the “Black Wednesday” and laid the foundations for the creation of the Euro.

The questions that “float around” are logical, indeed, but for each answer there is a different reference point. Germany is not pursuing the laissez-faire, at least not anymore. That said, would it be wise to try to understand what Germany is doing based on a completely different platform? No, of course not! And it’s not that they have not stated it! They have, multiple times, indicated their intentions, yet the rigidity of this mentality having started during the geoeconomic era does not allow the Economists to judge correctly, not to mention the billions the speculators are throwing in the markets, totally convinced that the Euro is going to fall! Germany’s pincers have been closing around the banks for at least three years and those that have not seen it were either blind or naive! The bankers yielded too much power to allow Germany to proceed with a banking union, based on the interests of the nation! It’s an early 2000s Russian “deja-vous” all over again!

If Germany managed to cover the expenses of rebuilding Berlin by exploiting its gains from the currency wars during the ’90s, one can only imagine what it can do by dipping its hands in the “Blackbeard’s Treasure”. Of course there will be a migration of funds, for now, and European banks will face a capitalization problem sooner rather than later, but we are talking about a lot of money here, the sum of which can cover the recapitalization of the European banks plus extra money, which are going to be funneled in the States’ real economies in order for them to be revived!

What we now see in the news is the reaction of the banks, in a banking war rather than a currency one contrary to what economists had talked about some time ago. In the US they may be printing money, but in the EU no citizen will be blaming Germany once the purged will have finished. This constitutes a grand scale political victory as well, in the eyes of the “Beholder”, in that case the people, as the Germans will eventually compare Greece, where people are dying and the Country faces humanitarian problems, to the “New Solution”, as being more humanitarian. What’s more, they will not hesitate to put the blame on the banks when the time comes, for not letting them apply the same measures to revive the Greek economy, instead of destroying it.  

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  1. You really make it seem so easy with your presentation but I find this matter to be really something which I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I’ll try to get the hang of it!

    • Dear Vickie, sorry for our late reply and thank you for your comment! Indeed, the issue is very hard for one to grasp, especially if one goes into stock exchange details and complicated financial derivative elements, offshores and so on. We did our best in order to present the facts as they are, in contrast to the distorted version of some people who have bought the so called Credit Default Swaps (The insurance of their bonds) and they try to make the markets nervous as to believe that the Euro is going to break down. Once this info is spread, the price of the CDSs they have bought goes high up, so they can sell them, thus making billions of dollars in just days. We will be posting more on the Geopolitical aspect of the offshore reform by states such as Germany and Russia, in the future! In the meantime don’t bother yourself understanding complicated and technical financial issues, but rather focus on the simplistic version of “I buy, you sell” and vice versa plus to what is good for states such as Germany and Russia, which do not rely that much on the derivative products! I hope this helped! Should you require further information please do not hesitate to contact us again! It is our pleasure to have readers who are interested in what we write and happen to have questions.


      Alexandros Boufesis

      Director Focus Dynamics Research Center and owner of

  2. Excellent article over again. Thank you.


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