I tweeted months and months ago that Angela Merkel's austerity ideas are completely backward and that she would lose if she continued clinging to them. They haven't worked and won't. Austrian Economics is patently wrong — more onerous in the end than dictatorial socialism, not that we're stuck with only those options. We aren't.
The Germans have so far thrown away a golden opportunity to create a Europe based upon post-Keynesianism and better. The Germans could certainly create sufficient currency to fund what needs funding and without inflation. They simply need radical (root/systemic) monetary and banking reforms that have been fairly well mapped out by the global Monetary Reform Movement. It would not be difficult. Greece, Spain, and the rest would not need to continue suffering and could be put on a very sound footing. Germany would benefit immensely, as would the planet.
BERLIN — Chancellor Angela Merkel’s party suffered a stinging defeat in elections in Germany’s most populous state on Sunday, one likely to embolden her political opponents both at home and abroad as the European debt crisis enters a critical new phase.
One week after Socialists seized the French presidency, the Social Democrats won the parliamentary election in North Rhine-Westphalia, early results and exit polls released Sunday showed. Norbert Röttgen, the lead candidate for Ms. Merkel’s Christian Democrats in the state, conceded defeat and announced that he would step down as the party head there.