The bond vigilantes, some banks, ratings agencies and biased media are effectively putting a gun to Germany's head saying print money or else.
This is not really a solution to the problem. If Germany does print, then all the financial discipline imposed on the PIIGS goes with it and we are back to square 1 after a short rally, albeit upon on a much more dangerous path.
Ireland is a case in point and a good example of how to turn these countries around. More money is simply not the answer and there is no quick fix. It needs time, with small steps and progress that needs to be checked and carefully measured.
I notice that everytime Germany calls the bond markets (& S&P in particular) bluff and tells them to get stuffed, 10 year German yields come crashing down. It's all a game. Wall Street is just mad they are not getting free cash for Christmas.
The cost of German debt for example is down -48% since the highs in May. This is a clear sign that at the core of Europe, fear is subsiding and the outlook more positive.
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