GERMANY AND THE EURO PART COMPANY, HELLO TO THE MARK

                              Germany Doesn’t Want to Become a Have Not

“I think we’re weeks to months away from a catastrophic failure somewhere in Europe, and the slowdown in Asia is much worse than is being reported.  Any belief that we’re going to avoid the repercussions of these events is pure folly”.

A recent post states Germany may start to print and use Marks and dump the Euro, Why?  Giving away all your money to others, i.e.  Greece, etc. makes you go broke, that’s why.  Domino’s don’t all fall down at one time, but they eventually will if you don’t stop it SOMEWHERE.  How long can you live on debt?  What do you do when the credit cards of nations max out their credit lines and can’t pay back the borrowed funds to begin with?  As a parent, how much debt will you allow your kids to throw your way until you cut up their credit cards or not pull out your wallet on demand?  Tough Love, and Germany has had it with supporting their step-children, the European Community.

China and India, the great new super economies have less than 10% of the population working within their FLOURISHED manufacturing world, based on sweatshop wages and massive exploitation.  Unheard of quantities of goods and services (call centers) were producing and manned by such a small percentage of employable workers it is absurd to think that their emerged economic strength has been shared throughout their populace.  Chinese and Indian poor, which constitutes the majority of their billions of citizens are out of work, have never had a “working wage” job, and are poorer now than ever before. Yes, the Chinese government has the money, the people don’t.  India’s rich have the money, the government and the people don’t.

Now figure that all those zillions of tons of products that the Western world consumed, clothes, toys, electronics, etc. that their sweat shops were going 24/7, cargo ships hauling exports in record numbers year after year.  The vortex has been reached and the tonnage is dropping at record rates, faster than the climb.

Now consider that the World’s majority of consumers are now more or less BROKE, and what happens to production when consumption goes down?  Right, they stop producing.  What happens when you slow down or stop producing?  You lay off the employees.

Now with the massive amount of the new founded workforce in China and India, nearly 300,000,000 only representing a smaller proportion of their total population, but again if you lay off a large percentage of those masses, that represents multi-millions of newly unemployeed persons.  You have instantaneous problems with mouths to feed and housing that have no income.  They can’t buy all the new products that THEY were producing, which represented the new “Chinese/Indian” consumer base, and therefore further disembowing the Manufacturing/Servie base, thus furthering further lay offs until you have chaos.  

Do you understand that?  No work, no money; no money, no consumption; no consumption then no production; and further no work.  The cycle has started, the world recession or as I see it, depression, has sucked up all available disposable income and has made belt tightening in the western world effecting all the economies that depended on the mass consumption of these western countries unsatiable consumer habits.

Now even India and the Philipines are even losing the Telemarketing and Call Center industries, and China in the Textile industries to other “labor” cheap or “cheaper” nations.  As wages climbed to over $4 per day or more, the corporate thinking as profits and quantities drop, you move to a place like Nicaragua where you can get labor for nearly half of that AND have shorter transportation costs for shipping.

Add this to the already US Dollar and Euro monetary problems and the economies they support you have as they say, “the light in the tunnel IS a train coming right at you and gaining speed”.  Germany has to bail out of supporting the deterioated (not deteriorating) Euro economic base or their reletive stable economy will be bailed into unsupportable debt and eventual collapse.

Too much mayhem in the economic markets have persisted so long that for their own survival, they are going to have to go it on their own, taking gigantic hits on their exportation costs to have a strong currency in their new Mark, but to survive in the long run they must get out ASAP, and I feel they will.

Any interest in investment in Nicaragua, please contact David Cardin at the Playa Roca Beach Hotel: www.playaroca.com.  Small and large investors to get in on the ground floor of the vast paradise and economic opportunities in this gorgeous Central American country. 

Nicaragua is the “Survivors” choice of destinations and we need more survivors interested in experiencing paradise for dimes on the dollar.  Save more money on vacation than staying at home!  www.playaroca.com http://www.laspenitas.net http://bit.ly/4Ujkk  http://www.fodors.com/news/story_4253.html