Here is the truth of the matter: we let con men take over the global currency system and install fake money as currency. This policy was was cemented into stone globally when the
Why is this? Simply because we are a global world now with huge dependencies on trade. Any country that acts honestly with its money and does not devalue it is effectively telling the rest of the world that it does not want to trade with it. The dynamics are simple: when one country fails to debase its own currency in locked step with its trading partners, that currency and the locally manufactured goods priced in it, become more expensive in terms of the other debased currencies. We are now at a point where attempts to be honest within a corrupt global fiat money system will be met with great punishment in the form of collapsing exports.
In light of this its no wonder that the famously "safe" Swiss Franc is now being threatened with a peg to the Euro. In other words, the Swiss government is threatening all those who are seeking refuge in its currency (including its own citizen-savers) with being tied to a collapsing currency like the Euro. Right now it is only a threat but you can take it to the bank that it will eventually happen because the Swiss exports will collapse unless it does. Non-Swiss people will simply not be able to buy Swiss products because they will be priced out of the market by the strong currency.
As for the misguided Germans, they think their error was joining the Euro. However, I assert that if the Germans still had their own currency they would effectively be in the same boat as the Swiss. The German Mark would be soaring right now (just like their bonds are doing...) relative to sovereign currency of the PIIGS but at the end of the day the Germans would have to debase their currency too because their economy is too dependent on the scam of tryng to use exports as a sustainable profit strategy. Given that the Germans are caught up in the Euro they have no currency to debase and so they are doing the same-money equivalent which is transfer payments to the PIIGS. In other words, they are forgiving the debts of the PIIGS whether they want to or not. The sin of Germany is not that they joined the Euro but rather that they bought into the scam of fiat currency and fractional reserve banking along with the rest of the world. Their sin was compounded by the false belief that exports are the secret to prosperity when in fact the only true economic value of exports is the increase in life quality related to having diversity of consumption which is enabled by trade.
Early on in the collapse, the Germans are just trying to forgive a limited amount of debt but at the end of the day it will be full debt forgiveness because the money associated with vendor financed trade was gone the very minute they loaned it to someone who did not have the economic value generation capacity to make repayments. In other words, if you loan money to a bum you should never expect to get repaid because the bum can never repay you. Recording the payments to bums and freeloaders in your little accounting spreadsheet and acting like they owe you back that which you gave them changes nothing. All you are doing is fooling yourself if you ever think that the bum will pay you back. What cannot be repaid will not be repaid.
