Notes From Underground: 2+2=5 is all about the role of history in the theory and practice of markets

Ah, the elementary basis of all things is PRAXIS. Theory without practice is merely opinion and we know that opinions are like a-holes … we all have them. As we listen to the pundits, who couldn’t find the EU on a map until the recent photos from Greece, we don’t know whether to laugh or cry at the superficial analysis that clogs the airways. The talk all weekend was about the Sarkozy threat to leave the EURO if Merkel didn’t capitulate to the debt crisis support package  hereby known as Charlotte’s Web, an attempt to save the PIIGS by a web of financial dealings backed by the ECB.

The French will not leave the EURO as it would be the end of all they have supported and stood for 54 years. Sarkozy was like an infant screaming and holding his breath until Mother Merkel gave in and the baby appears to have achieved the candy at the checkout counter. Some see “l’enfants'” short-term smile as a victory to which we reply, HOGWASH.

The Germans are the ultimate victor for the they have received from Europe everything they wanted and needed. When the Germans needed a weaker EURO to help ease the burden of unification, the rest of Europe complied as the EURO dropped to 83 cents. France is locked into a bad situation for the ultimate destiny of Europe lies in the hands of the German voters. If they say nein to EUROPE and the continuation  of massive monetary transfers to the peripherals, then the French goal of harnessing German economic power into a global power has reached an end. In the final chapter Germany can thumb its nose at EUROPE for they have what they want: a unified nation that no man can cast asunder.

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