Mutually Assured Disillusionment

May 14, 2013 By Hermann Observer in Habitudes, Hard Facts, Heconomy, Helplessness, Home Cooking, Hurt Feelings, Hysteria Tags: Berlin, Economy, EU, Euro, Euro Crisis, Europe, France, German, Germans, Germany, Humor, Polls, Psychology, Satire, Surveys, The Euro Zone Leave a comment

And here you thought that the Germans could bitch and moan about Europe.

And boy can they ever. But the reigning Weltmeister of Whining is now suddenly getting some unexpected stiff competition from France, of all places (with Spain, Italy and Greece picking up speed in the griping department, too).

“No European country is becoming more dispirited and disillusioned (with Europe) faster than France,” according to a Pew Research Center report, released in Brussels and Washington. “The French are negative about the economy, with 91 percent saying it is doing badly, up 10 percentage points from 2012.”

France’s malaise with the European Union’s outlook is more similar to sentiment in Spain, Italy and Greece than it is to the mood in Germany, which is the only EU nation of eight surveyed where at least half the public backed giving more power to Brussels to deal with the economic crisis.

So let’s get with it already, Germany. This race ain’t near over with. We (as in you) can do this. When the going gets tough, the tough get moaning.

“Deutsche leben mental auf ihrem eigenen Kontinent.”

Rich Germans Actually The Euro Zone Po Folks

April 9, 2013 By Hermann Observer in Hard Facts, Heconomy, Helplessness, Higher Education, Home Cooking, Humor, Hurt Feelings, Hypochondria, Hypocrisy, Hysteria Tags: Bailouts, Berlin, Cyprus, Economy, EU, Euro Crisis, Euro Zone, European Union, German, Germans, Germany, Humor, Satire, Savings, Wealth 2 Comments

As recently reported, rich Germans have suddenly and inexplicably become the poor men of Europe, relatively speaking.

According to the latest ECB Vermögensstudie (wealth study), the Cypriots, of all people, are among the richest citizens in the euro zone. Germans, on the other hand, have come in at last place.

Wait a second. Wasn’t there something recently about Cyprus striking a 10-billion euro bailout deal with the European Union? I must have got that wrong (or the Cypriots certainly got that right).

Ausgerechnet die Zyprer gehören zu den reichsten Bürgern der Euro-Zone, Deutschland steht am Ende der Rangliste.

Inequality For All

March 7, 2013 By Hermann Observer in Habitudes, Hard Facts, Heconomy, Home Cooking, Hurt Feelings, Hypochondria, Hysteria Tags: Berlin, Economics, Economy, Equality, Fairness, German, Germans, Germany, Growth, Humor, Perceptions, Satire, Statistics, Wealth Leave a comment

That seems to be what most Germans think their country provides them with these days. They are forever moaning and groaning about how the German “social divide” keeps widening.

Germans can be pretty innumerate, you see, believe it or not (when the media hype wants them to be). Nobody ever stops to consider the numbers here, either (just like everywhere else). You have to go to professional-like people on the outside (like at The Economist) for that.

DIW, an economic think-tank in Berlin, says that inequality rose significantly after German reunification; but that it has fallen a bit since 2005 (see chart). Awkwardly for the left, that is when Angela Merkel became chancellor, in coalition first with the SPD, then with the FDP.

This is the opposite of what the public believes. According to a study by Allensbach, a polling institute, 69% of Germans think wealth and income are unfairly distributed, and almost two-thirds believe inequality has risen in the past few years. That is good for the left.

Germany remains a huge social and economic success, something that it often seems unGerman to savour.

“Dramatically Poor”

November 8, 2012 By Hermann Observer in Hard Facts, Heconomy, Helplessness, Home Cooking, Hurt Feelings Tags: Berlin, Economy, Exports, German, Germans, Germany, Industry, The Euro, The Euro Crisis, The Eurozone Crisis Leave a comment

German exports fell in September at the fastest pace since late last year, official figures show, adding to evidence that the eurozone crisis has infected the continent’s economic powerhouse.

September imports fell 1.6% and exports declined 2.5% month-on-month, seasonally adjusted data from the Federal Statistics Office showed. Overall exports were down 3.4% from a year earlier but orders from eurozone countries plunged 9.1%.

“The trade figures are a normal consequence of the dramatically poor industrial orders, which have fallen at their sharpest rate in a year.”

BEA-EADS-RIP

October 12, 2012 By Hermann Observer in Heconomy, Helplessness, Hi-tech, Hurt Feelings, Hypocrisy Tags: Airbus, BAE, Berlin, Bureaucracy, EADS, Economy, EU, German, Germans, Germany, Government Interference, Mergers, Politics Leave a comment

Massive political resistance or pure economic theory? Or both?

“From an economic perspective, this should of course be avoided. Pure economic theory would say that the state should stay out of it and leave the market alone.”

“The massive political resistance was ultimately too great to overcome.”

Angela Tea Party Merkel

August 14, 2012 By Hermann Observer in Hard Facts, Hate, Heconomy, Helections, Helplessness, High Art, Home Cooking, Humor, Hypocrisy, Hysteria Tags: Angela Merkel, Berlin, Economists, Economy, German, Germans, Germany, Hayek, Humor, Keynes, Romney, Ryan, Satire, Taxation, Taxes, Tea Party Leave a comment

“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.

172 Economists Can’t Be Wrong

July 6, 2012 By Hermann Observer in Heconomy, Helplessness, Hurt Feelings, Hypocrisy, Hysteria Tags: Banking, Berlin, Debt, Economics, Economists, Economy, German, Germans, Germany, The Euro, The Euro Crisis, The Euro Zone 1 Comment

Right? Right.

We have to approach this differently, folks. Pick an economist. Pick five. Find one that has ever been right. When it comes to dire warnings about the future, I mean.

Sure, I don’t like the idea of Angela Merkel deciding “to agree to allow eurozone bail-out funds to support sinner states” either, but if 172 economists are all hot and bothered about it, then maybe it wasn’t such a bad decision after all.

“First of all, this is about better banking supervision, and one can only say that that is urgently necessary.”

I Need Your Clothes, Your Boots And Your Motorcycle

June 21, 2012 By Hermann Observer in Hard Facts, Heconomy, Helplessness, Home Cooking, Hurt Feelings, Hysteria Tags: Berlin, Economy, Exports, German, Germans, Germany, Manufacturing, The EU, The Euro Crisis, The Euro Zone, The Terminator 1 Comment

Is it termination time yet? For the booming German economy, I mean?

The Spiegel says: German manufacturing activity has hit a three-year low and export orders have also seen a big drop. This data suggests that the crisis is starting to hit the previously robust German economy.

Hasta la vista, baby? Maybe.

Bonds, German Bonds

June 14, 2012 By Hermann Observer in Habitudes, Hard Facts, Heconomy, Helplessness, Home Cooking, Hurt Feelings, Hysteria Tags: Berlin, Borrowing, Economics, Economy, Euro Crise, Euro Zone, Europe, German, Germans, Germany, Humor, Merkel, Monetary Policy, Satire, The Euro Leave a comment

That’s the thing about a crisis: There’s always a winner, too. Take the euro crises, for instance. And the demand for German bonds these days.

Demand for German bonds, seen as the safest haven in the euro zone, has pushed Berlin’s borrowing costs so low that some investors are effectively paying Germany for the privilege of lending it money.

Damn. This gives German bondage a whole new meaning.

Low interest rates on German bonds are translating into billions in savings. Now economists have calculated that the country should be able to balance its budget by next year — something that is likely to increase criticism of Germany’s crisis management.

…The perception that Germany is benefiting financially from the crisis while imposing strict austerity measures on countries in southern Europe is unlikely to win many friends for Chancellor Angela Merkel, who is already highly unpopular in countries such as Greece.

The Great European Divide

May 18, 2012 By Hermann Observer in Habitudes, Hard Facts, Heconomy, Helplessness, Home Cooking, Hurt Feelings, Hypocrisy, Hysteria Tags: Berlin, Debt, Economy, EU, Europe, Finance, German, Germans, Germany, Greece, The Debt Crisis, The Euro, The Euro Crisis, The Euro Zone 1 Comment

There’s Germany, it seems. And then there’s (practically) everybody else in Europe.

The Economist notes: The hope is that Germany, which produces over a quarter of euro-zone output, can pull along the rest. But the worry is that the latest bout of euro sickness may sap confidence even in Germany, aborting a broader recovery.

With unemployment at 6% compared with a 15-year high of 11% across the euro zone and over 20% in Spain and Greece, Germans feel less pressure to save in case they lose their jobs. And a more confident Germany helps everyone by spending more on imports. German inflation at 2.2% is now below average.

German resilience reflects several strengths. Although growth in the first quarter was helped by exports, the usual mainstay, it has increasingly been backed by domestic demand, which accounted for three-quarters of GDP growth in 2011. This reorientation has happened because Germany avoided the debt excesses (? hmmm, relatively speaking perhaps, but I’ve seen some other numbers here), both private and public, that inhibit growth elsewhere. With relatively low debt, German households and firms can borrow more. What is more, they can do it at rock-bottom rates. Paradoxically, Germany is benefiting from the euro crisis, as investors seek a haven. Yields on ten-year German government bonds have fallen below 1.5%.

Paradoxically, Germany is benefiting from the euro crisis, as investors seek a haven. Yields on ten-year German government bonds have fallen below 1.5%.

And yet, after having read all these impressive figures up there, there’s another German paradox I keep running into here all the time: Germans on the street aren’t nearly as confident as this article wants to imply, at least not when it comes to the euro and the euro-zone. How else do you explain the fact that nearly every second German now thinks that the introduction of the euro was a big honking mistake in the first place?

Die Euro-Einführung war ein Fehler, glauben knapp die Hälfte der Deutschen.

Observing Hermann

“Was interessiert mich mein Geschwätz von gestern?”

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