Actually, the Germans are unlikely to shoot themselves in the foot

       I have to admit, I'm not an expert in macro economics.  I'm just a person who tries to stay informed about world events and who is (at present) an American on the ground in Germany.  Please, dear readers, correct me if I am wrong, but it seems that some smaller, weaker countries, like Greece, were able to borrow money like never before once they started to share the Euro currency with bigger, richer countries like Germany.  So, now that we are in a horrible recession, Greece has borrowed its way into oblivion and is having trouble making payments not only because it borrowed more than it could comfortably pay back, but because austerity measures resulted in a further slowing down of the economy (not to mention personal hardship and lapses in services) and the rampant tax evasion in Greece isn't helping either.  Also, nobody thinks Greece will pay up, so borrowing rates are sky-high.  Am I right?  Please, do tell me if I'm missing something here.
       Germany, by far the strongest and richest country on the Euro, is supposed to keep bailing out the weaker economies of Greece and (possibly) soon to be Italy, Spain, and Portugal.  The Germans seem to keep saying, "We've given them enough money, it's time for them to get their act together.  We have our act together, we pay our darn taxes and work until 67."  The Euro is a bit of a mess, and the leaders are now in Belgium trying to figure out what to do next.
     On June 26, Op-Ed contributors Kenneth Griffin and Anil Kashyap wrote the article, "To Save the Euro, Leave It" suggesting that instead of Greece (for example) leaving the Euro, that Germany should instead leave.  That's all "thinking outside the box" and sexy and off the wall and compelling and everything - but I can't see how you could actually talk the Germans into it.  The writers' idea is that once the Germans returned to the Deutschmark, the Euro would become instantly weaker, and the exports of Euro countries would become much cheaper and more competitive.  Additionally, a weaker Euro, "Would not solve the debt burdens of southern European countries, but it would give them needed breathing room to restructure their economies, reform labor markets, collect more taxes and reassure investors."  Please, pray tell, how would a weaker Euro allow a debt-strapped country to collect more taxes?  Tax evasion will somehow cease to be a problem with a weaker Euro, and all those Greek billionaires will allow the tax man into their giant offshore mattresses?
       But let's leave that aside for the moment.  The basic idea of this article is that Germany could fix things by leaving the Euro and going back to the Deutschmark.  That way, the Mark would be strong, the Euro would instantly be weaker, and other Euro country exports would instantly become more competitive than German exports abroad.  Apparently, once Germany would leave the Euro, Griffin and Kashyap believe that international companies will immediately start investing in tons of  factories in Spain, Portugal, Italy and Greece, as the newly depressed Euro will allow companies to hire people to make widgets at low low prices and sell beach-front condos at low low prices too.  Apparently Germany would just have to deal with not having exports that were as competitive.  I very much doubt that Italian/Greek/Spanish/Portuguese exports would take off at such a pace, but let's say (for the sake of argument) that the writers might be onto something. 
       There's just one thing I have to ask dearest Kash and Griff, "What 's in it for Germany?"  Unlike the United States, Germany is a net exporting country.  Exporting German goods is a major part of the German economy and the German culture.  K and G admit it's going to be painful for the Germans, at least at first, stating:  "Germany’s industrial base would unquestionably endure hardship in the transition to a stronger currency . . . Over time, the industrial base of Germany would adapt and move forward."
        Griffin and Kashyap are Harvard and MIT trained financial geniuses in Chicago, and I'm sure either one of them could crush me with a single thought.  But last week I was at a public school here in the German city where I live, a public school in a tough neighborhood.  I go there once a week to help any kid who wants some free extra help with English, and sometimes I look through the extra textbooks left for teacher reference.  There are many high schools, such as the one at which I volunteer, that train students for highly specialized factory jobs.  And their textbooks are amazing.  They go on and on about how wonderful it is that Germany is a next exporting country.  How great it is that MADE IN GERMANY is an international sign of high quality and excellent craftsmanship.  How the students will go on to work in a factory and become part of this proud tradition.  Most of the kids I work with won't go to college, but they will have good paying, steady, well-respected factory jobs because Germany protects its factories, it's factory workers, and its export culture.
       Those three English words, MADE IN GERMANY, are all over the place.  Because English is more widely understood that German, the proud saying is always in English, but all the Germans understand it.  Is the local soccer team playing a game against a Spanish team?  You'll see a sign with a picture of a Seville orange over a MADE IN SPAIN sign next to a picture of a steel orange juicer over a MADE IN GERMANY sign.  There are even contemporary art shows called MADE IN GERMANY that showcase sculptures and paintings by local artists. I'm confused.  Why would Germany voluntarily leave the Euro and make life harder for all the people who make German exports?  Why?  Why would Germany so blatantly act against its own financial interest? 
       I don't doubt that Kashyap and Griffin are brilliant financial minds.  And I know that something must be done about Greece, and something must be done about the Euro.  But, I believe they are mistaken if they think Germany is going to endanger its net exporting status just to help its neighbors.  Nobody wants to keep bailing out other countries.  But if it's between forking out another huge bailout or crippling German exports for the next 50 years, I think I know which one Germany's going to pick.  The Germans didn't even finish paying off their World War 1 reparations until 2010 - so they seem to be able to grit their teeth and write a check.  It doesn't mean that they are going to let Bavarian Motor Works (BMW) become Athenian Motor Works. The MADE IN GERMANY culture is deeper than Kashyap and Griffin seem to realize.  The Germans are going to make sure that 20 year old German factory worker has a job before they worry that a 20 year old Spanish factory worker has a job.  And really, can you blame them?