WHERE WILL THE EURO-CRISIS TAKE US TO: GERMANY'S THIRD ATTEMPT?

Abstract

Abstract: The volume of global transactions has grown faster than global GDP since 1990. Imperialism leads to ever deeper crises. The financial, banking, and Euro-crisis is a crisis of state monopoly capitalism. Lower wages and deeper social cuts have been base for higher accumulation in FRG. imperialism as main power within EU uses EU and Euro-crisis as a vehicle to become a world power again.Key words: crisis development; global transactions; Euro; crisis of state monopoly capitalism; reunification; imperialism reconstructed; Germany main power in EU; US imperialism; division of world1918 and 1945 mark respectively endpoints of Germany's two attempts to gain world hegemony. However, in 2012 Germany without war seems to have more power in Europe than ever before. Economically it has by far overcome France and UK. All European countries managing their sovereign debt depend on Germany's approval. It can dictate conditions of loans; it can interfere in budgetary sovereignty. National independence was sacrificed for Euro and European Union. But who is commanding? Who sets rules for economic and then social and political development?Not only Greek, Spanish and Portuguese people, who suffer particularly from consequences of Germany's dominance, ask what this will lead to, but also increasingly more Germans ask for whose sake and to what extent this nation reproduces again image of ugly German and re-awakens all reminiscences of barbaric fascism. And trade unionists wonder whether example given in Greece will finally be applied in Germany itself with deep cuts in social welfare, while also in undermining trade unions and finally democracy itself.In this article, we will first survey development of crisis after so-called reunification of Germany in 1990. Then we discuss options Germany has to escape from crisis reflecting its conditions after World War II.Development of Crisis from 1991 to 20081991: The end of USSR had become stylized as the end of by bourgeois media. It was intended to show market economy as a natural to which history would have led inevitably. However, by 1998 hope of everlasting boom had already come to an end. The victory of counter-revolution in former Soviet republics meant a decrease of production per capita of 50 percent. Mass poverty grew; new Russian stock companies crashed. Capitalist systems verged on crash caused by collapse of Long Term Capital Management (LCTM) Fund,1 which had bet with high-risk constructions (derivatives, futures) on boom in Russia. The collapse of world system was avoided by a speedy joint intervention of big private and state banks. The money capital looking for investment then turned to high-tech industry, creating extremely high share prices through sudden and vast demand. These collapsed from March 2000 onwards because of a lack of sufficient produced material values as soon as cyclical boom was reversed. During stock crisis, Allianz-Group, one of biggest insurance companies worldwide, lost 90 percent of its share value. To avoid permanent stagnation of capitalist world a policy of cheap money-very low interest rates-was introduced. The US led way in pumping billions of dollars for armaments into economy, under pretext of saving world from terrorism, hoping to gain control of its debt eventually and also by monopolizing oil reserves in controlling Mideast militarily. Billions of profits made by multinational companies, benefitting worldwide by politics of war and cyclical recovery and boom after 2002, increasingly were not invested in new production facilities. Instead, searching for maximum profitability, this money capital was sent back into financial markets, creating a worldwide boom for high-risk instruments. …