Feature: Technorati Women/Career & Money

Germany: The Last Domino in the Euro Debt Crisis

Author: Stephen Alexander
Published: November 23, 2011 at 1:02 pm
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Germany, the last dominoThe European Union may be seeing the beginning of the last domino to fall in Europe. That domino is Germany. Once thought to be virtually immune to the entire Euro Debt Crisis plaguing Eurupe, Germany is starting to show cracks in it's own sovereign financing.

Today, Germany failed to raise the funding it needs in a bond auction at the interest rate it set. In other words, the bond auction failed and Germany had to withdraw over 35% of its bonds from the sale.

According to Germany's Financial Agency, the latest euro6 billion ($8.1 billion) auction of 10-year bonds met with only 60 percent demand. Or course, they placed blamed on everyone else.

The interest rate offered this time was only 1.98%. In previous auctions, Germany offered up to 3.25% this year.

The political opposition to German Chancellor Angela Merkel, Social Democrat Sigmar Gabriel, blames the current government's leadership for allowing Germany's debt to increase as it calls for other countries to lower their own deficits.

Mr. Gabriel says that other European governments may “righteously clench their fists over your government's arrogant position.”

With the cracks from the inside of Germany starting to grow externally, Germany's domino has started to wobble.

 
 

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Article Author: Stephen Alexander

A Circuit Civil - Family Law - Divorce Mediator serving throughout Florida: Daddy, Husband, Attorney with a Bachelor in Materials Engineering and a Juris Doctorate from University of Florida.

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