Finally, Germany is doing something

Finally, Germany is doing what it's supposed to be doing.

Merkel has joined Sarkozy at the G20 in an effort to force the US and everyone else into accepting stricter regulations of the international monetary market.

The Germans know how to regulate markets - they are very conservative and generally afraid of everything that moves, so they make good regulators. Americans are too enamored by the promise of riches to regulate anything, with the argument that regulations hinder growth.

Both sides are right, or course, but up to now Merkel has been so passive internationally (Germany, the biggest economic power in Europe, has been passive since Kohl left office), but the whole point of opposing point of views is for them to meet halfway and for each side to keep the other side from going too far.

It's the American system of checks and balances on an international level, but it only works if a country like Germany does it's checking and balancing part.

It surprised me that Merkel is really standing up to Obama - or to anyone. In the end, a compromise will be reached, I just hope she sticks to her guns enough so that it's a good compromise.

(Maybe she will have to give into the Americans on the stimulus issue a little bit, but I see no problem with Merkel coming down off her high horse and spending a little more on stimulus packages - Germany has the money to burn, she is just worried about the next election. She is afraid of doing what Kohl had the guts to do - he just went in, swallowed up East Germany and was willing to take a lot of crap when the Germans finally figured out it wasn't going to be for free. But he had the guts to take the crap in the first place, and now Germany is a unified country. Now it's Merkel's turn to make a tough decision and take some crap, including maybe losing the next election.)


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