Buy Our Debt, Please

Angela Merkel just finished up another quick and dirty visit to China, this time to calm the Chinese down about the euro zone debt crisis and, well, to grovel for money. Neither aim was achieved just yet. But hey, you’ve got to be really patient with the Chinese, I’m told.

“The trip has a lot of ambitions: one, is to explain the euro zone debt crisis to the Chinese and two, convince the Chinese to keep supporting the euro zone and buying the bonds from some of the euro zone countries such as Italy and Spain and also Germany.”

And just in case you were wondering, no. She did not find the time to express German concern for human rights violations in China during this visit.

As Europe’s crisis persists, China increasingly sees Germany—its largest European trading partner—as a vital player in pulling the continent out of its slump, analysts say. Mr. Wen said his talks with Ms. Merkel Thursday have made him “more confident” in Europe’s ability to resolve the crisis.

Grid Your Teeth

And just keep on paying. Or how about grid and bare it?

Germany’s power grid hasn’t kept up with the explosion of new alternative energy sources — particularly the offshore windparks being built in the Baltic Sea and the North Sea off the country’s north coast. Many of those projects are at a standstill, with no way to deliver the power they generate to the mainland.

On Wednesday Merkel’s cabinet hopes to agree on a stop-gap measure to compensate power companies for losses accrued as a result of the delays, but again it will be German consumers who will ultimately suffer.

“The primary reason for the problem lies in the ‘third path’ policymakers have chosen to lead us into the renewable future. There is neither a centrally planned economy to steer the energy system nor are the rules of the market economy allowed to regulate the system according to the laws of supply and demand. Instead, a model of ‘decentralized planned economy’ is being pursued. Municipalities, states, the federal government and the European Union are all creating plans independent of each other and of those affected. There is no coordination…. The result is a fair amount of chaos with policymakers struggling to keep up. Everyone is aware that the situation cannot continue if the renewable energy revolution is to be a success. As such, the question is whether we want to move from where we are today in the direction of a centrally planned economic model or rather in the direction of market economy principles.”

The 30 Percent Solution

That’s how much more German households will likely have to pay for energy in the coming years due to the country’s way cool “energy turnaround.”

Investments of at least 150 billion euros will be needed in the next few years and that’s just the beginning and absolutely positively nothing is working out reibungslos (smoothly) as not planned. And that’s the crux of the biscuit: This is what happens when you do your panicked decision making first and your planning later.

“Wir müssen davon ausgehen, dass die Gestaltung der Energiewende länger dauert als geplant.”

The Symptoms Of The Times

Withdrawal, I am told, can refer to any sort of separation, but is most commonly used to describe the group of symptoms that occurs upon the abrupt discontinuation/separation or a decrease in dosage of the intake of medications and recreational drugs.

In order to experience the symptoms of withdrawal, one must have first developed a physical/mental dependence (often referred to as chemical dependency).

„Notenbankfinanzierung kann süchtig machen.“

Dreck am Stecken

That means having a skeleton in your closet. You know, like Germany’s Commerzbank seems to have.

Commerzbank has said it could be fined by the US authorities over its handling of transactions linked to Iran, Sudan, North Korea and other countries that are the subject of US sanctions.

Die Commerzbank soll gegen das Iran-Embargo verstoßen und Geldtransfers in das Land ermöglicht haben.

Decision Delayed On Delayed Airport’s Latest Delay

Late for a delayed press conference, which was then delayed again, Berlin officials have now announced their decision to delay their decision to delay Berlin’s delayed Airport’s latest delay.

Berlin mayor Klaus Wowereit, a Social Democrat who has made the Berlin-Brandenburg Airport his flagship project, wasted no time in delaying further comment for later, unless delayed.

“Wowereit is making the city look more and more ridiculous in international eyes.”

Clean Power Cleaning Us Out

The German textile industry, among others, is mad as hell and isn’t going to take it anymore. Not when it comes to having to pay billions into the governments way cool Ökoenergie-Förderung (clean energy surcharge = tax).

That is why three companies now plan to challenge this surcharge subsidizing renewable energy in court.

More good government in action again, I guess. Energy companies have to pay the price for electricity generated through renewable technologies, and transfer the extra cost on to their customers. While energy-intensive industries like aluminum or steel are free from the surcharge, most of the textile industry has to pay.

“You cannot get an energy turnaround for free.”

Angela Tea Party Merkel

“Wait a minute… This seems familiar to me. Romney and Ryan stole all this from Angela Merkel! That which the Tea Party wants to do is already being done by Merkel here, and for quite some time now: She wants to force other European states to save instead of just continuing to throw money at them.”

“With Ryan as vice-presidential candidate, the presidential election now has two clear and easily understandable alternatives: Obama wants to save the economy by going further into debt (financed through taxes) and pumping this into the economy. Romney and Ryan want to save the economy by lowering taxes (which should lead to more private investment) and forcing the state to save.”

Ich habe jedenfalls nie verstanden, warum die Deutschen die Tea Party nicht mögen. Logisch ist das nicht: Einerseits sind die meisten Deutschen erschrocken und verängstigt ob des schwindelerregenden amerikanischen Haushaltsdefizits und fest überzeugt, dass Amerika die Staatsschulden abbauen muss. Sonst würde es doch irgendwann zusammenbrechen oder von China aufgekauft. Gleichzeitig aber hassen sie die einzige politische Bewegung, die genau dafür kämpft – die Tea Party.

And now here’s some economist rap.

Friedman’s Prophecy

I don’t believe in prophets. I’m very skeptical when it comes to economists of all flavors, too.

But when looking around at what’s going on here in Europe these days and considering how even the Spiegel itself now warns us about investors preparing for the euro collapse, I can’t help but wonder if Milton Friedman didn’t have a functioning crystal ball after all.

“There is no historical precedent for such an arrangement (the euro). It involves each country’s giving up power over its internal monetary policy to an entity not under its political control. Such a system has economic advantages and disadvantages, but I believe that its real Achilles heel will prove to be political; that a system under which the political and currency boundaries do not match is bound to prove unstable.”

Now I’ll Call Swiss Bankers Organized Criminals

Unable or unwilling to address the real reason why Germans (who can) move their money out of this country to countries where their money is treated better, SPD boss Sigmar Gabriel has now accused Swiss banking of “legalizing tax evasion.”

Maybe if the German state wouldn’t burn as much money as it does, those being milked might consider leaving it here. And maybe before accusing others of criminal intent, he might want to ask himself if the now regular practice of dealing in stolen goods (buying CDs with lists of German Swiss account holders from informers) is really the way Vater Staat (Father State) ought to behave. And maybe, just maybe, this guy ought to think about trying something different than this tired old primative populism of his. Maybe.

“Was mich ärgert ist, dass wir hier offensichtlich nicht in der Lage sind, mal eine Schwerpunktstaatsanwaltschaft zu gründen.”