Wednesday, December 17, 2008

The Prudent Purchase: Deutschemarks

Given the proclivities of "Helicopter Ben", Henry Paulson, and Obama, maybe hedging with Deutschemarks is a good idea.

...Mrs. Merkel will not be a new Herbert Hoover, who seemed to do his best to drain the United States economy of its remaining lifeblood even as it tumbled into the Great Depression.
But her reluctance to follow other Western countries' lead has puzzled many allies and struck some of Germany's critics as oddly ascetic.


Peer Steinbr├╝ck, the German finance minister, has indicated concern over budget deficits and has characterized the British effort to kick-start its moribund economy as "crass Keynesianism." In his view, European pressure for greater spending masked a desire to exploit the German taxpayer for the benefit of the country's neighbors.

To the question of why Germany did not simply spend its way out of recessions, as Keynes, the great British economist, suggested, Mr. Steinbr├╝ck shot back, "Just because the lemmings chose the same way does not make it the right one."

Sell the DM when that Government goes out of power.

HT: Dreher

2 comments:

Anonymous said...

I thought they were on the Euro. Does the DM even exist?

Andy K. said...

They are on the Euro. I guess they still accept the DM, but I haven't come across any... Well, not any that could be used for purchasing stuff (I found some on keychains for sale)