FXStreet (Guatemala) – Analysts at Rabobank noted that the headlines this morning are shocking: Germany has told Greece to surrender fiscal sovereignty to it, or be forced out of the Euro.
Key Quotes:
“That kind of demand is usually the privilege of a conqueror not a trade partner. Indeed, this year I’ve been talking to clients about the long-run history of ‘FX Wars’, and how the same tragedies play out over and over – but yet again here none of the key players are learning from the past.”
“Of all countries, Germany should recall the lesson of 1919, when the Treaty of Versailles unfairly saddled it with unpayable debts in reparation for a terrible war that all involved had been party to, not just it; and that Chancellor Bruning’s deliberate austerity policies led to the rise of the Nazis and the horrors of World War 2; and that after the War, the US Marshall plan rebuilt Germany, while the Allies slashed its debts and included the key provision that repayments were only to be made while Germany ran a trade surplus, to incentivize others to buy German goods (despite more than a little “lack of trust” about the Germans at the time…)”
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