The Real News has the interview Did Social Over Spending Cause the Euro-Crisis?.
Carlo Panico: Most media pays no attention to scientific economic literature.
Follow the above link to see the transcript of the video below.
You have to listen to the interview very closely to get the point that the government misbehavior being discussed is in two parts. Most governments in Europe were following an agreed upon expansionary growth policy that lowered interest rates and encouraged spending (maybe too much in some places). At the same time, Germany took advantage of these other countries, by tightening the reins for internal spending in favor of getting an advantage over these other countries by exporting to them by undercutting their prices.
The Germany was very encouraging of the European Central Bank’s financing these countries to buy German exports. Now that Germany has sucked these countries dry, they are firmly against a continuation of the policy by the European Central Bank. For some reason, Germany is the major roadblock to solving the European crisis. I don’t know what Germany thinks it is going to gain in the long run by killing the economies of their major customers.
This last idea is something that just occurred to me, and is not part of the interview. Perhaps they are planning to buy up all the companies in these countries when those companies must sell themselves in distress sales.
You might pick up the these ideas more easily from the interview if you had seen some of my previous posts from The Real News. A few of these are listed below.