Zero-Sum Red Alert: Number Of German Millionaires Rising!

Germany is not only 1) a society based on envy, 2) Germans think that anyone else’s gain is automatically someone else’s loss and 3) they expect the wealthy to be punished for being wealthy. If they failed to be punished, then that would only encourage others to become wealthy too.

Money

World Wealth Report: Germany’s dollar millionaires on the rise – The number of Germany’s dollar millionaires rose by 100,000 in 2019, according to the World Wealth Report. The US had the biggest upturn, although the coronavirus crisis could change the upward trend.

PS: A new groundbreaking study published in the American Psychological Association Journal Emotion has just discovered that, on average, the more income someone makes, the happier they are.

The Decline and Fall of the German Empire

The German Automobile Empire.

Cars

Could 400,000 car industry jobs in Germany be lost? – The car industry is in apparent decline in Germany. Some estimates predict that half its 800,000 jobs will be gone by 2030. The industry disagrees with that estimate, but the road ahead looks bumpy.

“The production of electric vehicles can be automated more easily. If there is no improvement in the competitive position of the German industry in the area of electromobility in the next few years, and if the need for imports of battery cells and electric vehicles continues to grow in light of the launch of electromobility, employment structures will be severely hit.”

The Regulator Failed?

Well, then let’s give the regulator more money and personnel.

Wirecard

To ensure that they keep on failing in the future? Government in action, folks. If it’s not too big to fail it’s too much of a failure to fail, I guess.

Germany to overhaul regulator after Wirecard scandal – Germany’s finance minister wants to beef up the nation’s financial regulator in the wake of the Wirecard scandal. The finance watchdog admitted its ineffectiveness in preventing the auditing disaster.

“If we come to the conclusion that BaFin needs more money, more jobs and more competency, I will make every effort to ensure that this happens.”

That Would Be A Great Step Forward

America’s relationship with Germany may never be the same again, Berlin warns.

Germany

Defense spending, a brewing trade war between the U.S. and Europe and the threat of U.S. tariffs on German car exports are all bones of contention, as well as the mega gas pipeline Nord Stream 2 (a German-Russian project) and, most recently, the Group of Seven (G-7) alliance and the U.S.’ decision to withdraw troops from Germany.

The Germans don’t want to cooperate, not in any of these areas and they’re playing the victim by putting all the blame on Dr. Evil. It’s  a pretty easy tactic to see through and its been quite successful up until now. They got themselves into this mess, however. Germans always want an Extrawurst (an extra sausage, something for nothing). Trump sees this and is pointing the finger in the right direction. The Germans know that he sees this and they don’t like having been caught.

“We’re protecting Germany and they’re delinquent. That doesn’t make sense.”

“Collective Response?”

Most likely, if it’s directed against US-Amerika everybody jumps on board.

Germany

Germany Weighs Measures Against U.S. Over Nord Stream Threat – The 1,200-kilometer (745 mile) pipeline under the Baltic Sea, designed to pump Russian gas directly to Germany, has triggered deep division between EU member states. But the prospect of a direct U.S. intervention in the 27-member bloc’s energy interests should prompt a collective response, said the officials, who asked not to be identified.

“The government is called upon to develop and put forward proposals for a measured, clear reaction on behalf of Germany and the European Union.”

Will It Be A Proper Landing For Lufthansa?

Or will it be more of an arrival?

Lufthansa

Or is it time to say goodbye? I wouldn’t place any bets on this one, folks. Lufthansa got kicked out of the DAX yesterday –  while Wirecard was allowed to stay? Go figure.

Lufthansa, Berlin in eleventh hour bailout rescue attempt – The German government leapt into action Monday (22 June) to rescue a proposed €9 billion coronavirus bailout for Lufthansa that has run into resistance from a billionaire shareholder…

The clock is ticking as Lufthansa shareholders are voting Thursday (25 June) on the rescue plan, which would see Berlin take a 20% stake in the company with the option of adding 5% more in the case of a hostile takeover bid.

Weiterhin keine Einigung zu Stellenabbau bei Lufthansa.

This Is The Real Problem

Not Donald Trump withdrawing American troops.

Germany

The Germans want a free ride and they’re offended at having finally been caught.

The Sorry State of Germany’s Armed Forces – Trump’s calls to withdraw U.S. troops from the country are impulsive, but Germany isn’t blameless.

The German armed forces are in a sorry state, and that’s not because Germany, more important to NATO’s efficacy as a collective defense pact than any other European member state, lacks the means to fix this problem. It does not.

Germany’s gross domestic product, valued at $4 trillion, ranks fourth in the world and first in Europe. The country is also Europe’s technological powerhouse. Indeed, in 2018, the World Economic Forum hailed it as the world’s leader in technological innovation.

And yet the German military remains riddled with problems. A damning 2019 report (available in an English-language summary) issued by the Bundestag’s then commissioner for the armed forces, Hans-Peter Bartels, summed up the problem.

PS: Please note here that the woman who ran the Bundeswehr for years and years and proved to be unable to fix it is now the woman EU technocrats (voters weren’t asked) have chosen to fix Europe.

German Of The Day: Säumig

That means delinquent.

Trump

You know, as in Donald Trump accusing Germany of being “delinquent” in its payments to Nato, and saying he would stick with the plan unless Berlin changed its course? The truth hurts, Germany. “Why does Germany pay billions to Russia for energy and then we’re supposed to protect Germany from Russia? How is that supposed to work? It doesn’t.”

Trump confirms plan to cut troops in Germany – US President Donald Trump has confirmed plans to withdraw 9,500 American troops from bases in Germany. 

„Warum zahlt Deutschland Russland Milliarden Dollar für Energie, und dann sollen wir Deutschland vor Russland schützen? Wie soll das funktionieren? Es funktioniert nicht.“

What’s An Increase Of 42% Among Friends?

Somebody just slammed Germany in the face with a brick. I mean a Brexit.

EU

Germany to contribute 42% more to EU budget: report – The European Commission would like to see €13 billion more per year from Europe’s largest economy. EU leaders, including Angela Merkel, are meeting Friday to discuss the bloc’s future budget.

Germany currently contributes an average of €31 billion a year to the EU budget. The proposal for the new budget would raise that contribution to €44 billion — an increase of 42%.

$1.5 Trillion?

There must be a better word than “stimulus” for that.

Stimulus

Wherever medication is given in huge and sudden doses, there’s a risk of unpleasant side effects. In Germany, and Europe generally, one of these may be a lasting shift in governing philosophy from market-friendly policies to state interventionism. That needn’t end in central planning. But even going part of the way would mean buying relief today at the price of misery tomorrow…

First, governments tend to confuse a company’s size with strength. Second, they’re usually worse than private investors at spotting winners, and always worse at pulling money out of losers. Third, they turn the economy into a big lobbying competition for businesses, which eventually hurts taxpayers and consumers.