"This is what the Brits call "spot-on."Europe's future is not up to the Bundesbank," by George Soros
The Bundesbank is also tightening credit at home. This would be the right policy if Germany was a freestanding country, but the eurozone's heavily indebted members badly need stronger demand from Germany to avoid recession. Without it, the eurozone's fiscal compact, agreed last December, cannot possibly work. The heavily indebted countries will either fail to implement the necessary measures or, if they do, they will fail to meet their targets because of collapsing demand. Either way, debt ratios will rise, and the competitiveness gap with Germany will widen.
Now, I'm not a capitalist. George is, but he's huge on a mixed economy, which is better than a laissez-faire (anarchical) capitalist economy.