“Trump is awful but…”

“He’s right.”


Uh-oh. All bets are off now. I may have found a German economist who is willing to take an unpopular stand and defend certain aspects of the Trump administration’s policy. Unpopular? Sacrilegious is more like it, right?

“On one side there’s the EU with a trade surplus that is mostly supplied by the huge German surplus. On the other side is the USA that has been living with deficits for 30 years. Germany is the world’s largest surplus country and the USA is the world’s largest deficit country. The trade practiced between these two national economies may be free but it is not efficient. This criticism of the German undervaluation strategy – that is, the relatively weak salary increases combined with a weak euro – has been around since presidents Bill Clinton and Barack Obama. Politicians in Congress have warned about making trade deals with notorious surplus countries. Trump is just the first one to do anything about it.”

“Every country can do whatever it wants – but not when it is part of a currency union in which there are no exchange rates that could be adjusted. Germany procures an advantage in global trade not just due to the quality of its products vis-a-vis its EU partners, the USA and other countries. In the past 15 years salaries in Germany have remained far behind productivity. We gain advantages over other national economies through wage dumping.”

“Will the punitive tariffs have a real effect on the German economy? Not so quickly. They have just been little needle pricks up until now. But if the EU now pursues the loud-mouth announcements made by Commission President Jean-Claud Juncker and reacts with its own punitive tariffs it is possible that the USA’s reaction will be more massive. Yet Trump is merely following a very simple rule here that no one in Germany wants to believe: The losers in such a trade conflict will be the trade surplus countries and the winners will be the deficit countries.”

Aber wenn die EU jetzt den großmäuligen Ankündigungen des EU-Kommissionspräsidenten Jean-Claude Juncker folgt und mit eigenen Strafzöllen reagiert, kann es sein, dass die USA noch massiver reagieren. Trump folgt doch einer einfachen Regel, die in Deutschland niemand wahr haben will: Verlieren werden in einem solchen Handelskonflikt die Handelsüberschussländer und gewinnen werden die Defizitländer.


What’s A Few 4500 Billion Euros These Days?

Give or take 1000 billion? Fur European taxpayers, I mean. When the financial system “Draghi crases” and burns after the interest rates start heading up again.


Bank expert Markus Krall shows in the book “The Draghi Crash” what drastic measures are needed to save Europe from the death of the financial system. Five measures are necessary – otherwise threatening costs up to 4500 billion euros.

The vast abuses in the banking sector hang like a sword of Damocles on Europe. “We are all trapped in the trap that the ECB has dug for itself and us with its Keynesian interest rate policy,” warns Markus Krall. The imbalances in the credit sector are so huge that even a small turnaround in interest rates could lead to a crash.

The problem: the Eurozone countries do not have the resources to deal with the consequences this time around. In Germany 3000 billion euros of national wealth are at stake. Krall estimates the total amount of defaulted loans in the European banking system to be at least 1000 billion euros. And when interest rates rose, an unprecedented wave of bankruptcies threatened Europe’s zombie companies. “That costs again up to 1500 billion euros,” said the consultant.

Staatsschulden, Lebensversicherungen, Bankbilanzen – Banken-Experte Markus Krall zeigt in dem Buch “Der Draghi-Crash”, welche drastischen Maßnahmen nötig sind, um Europa vor dem Exitus des Finanzsystems zu retten. Fünf Maßnahmen seien nötig – sonst drohen Kosten bis zu 4500 Milliarden Euro.

EU + Brexit = 3.5+ For Germany

That’s 3.5 billion more. Euros. To pay, I mean. Annually.


Somebody has to compensate for the Brexit shortfall and Greece won’t answer the phone. Nor will Italy, France or anybody else out there. Maybe the EU dream team back then should have tried a little harder to keep Britain in and compromised just that little tiny bit more but hey, that was then and this is now. Get out your checkbook, Berlin.

What a mess.

Konkret sprach Oettinger gegenüber der Bild-Zeitung von “mindestens 3 oder 3,5 Milliarden Euro” jährlich. Zu den neuen Aufgaben gehörten etwa der Schutz der Außengrenzen oder der Kampf gegen Terror. Zudem könnten zusätzliche Zahlungen Deutschlands dazu beitragen, die durch den Austritt Großbritanniens aus der EU entstehende Lücke zu schließen.


Merry Christmas!


“It wasn’t my idea. This decision came from Brussels.”


No More Döner For Dinner?

Huh? That’s absolutely, positively my favorite German food!


Leave it up to the Enlightened Left to help protect us from ourselves again.

The EU’s Umweltausschuss (ecology committee) plans to restrict the use of phosphates in frozen meats. A loophole in their legislation had allowed frozen Döner Kebab to contain phosphates up until now. Only fresh Döner will be allowed to have phosphates in the future.

The problem here: Almost all of the Döner restaurants in Europe depend upon frozen Döner meat being delivered to them. Some 500 tons of it are eaten every day. 80% of that in Germany. Over 110,000 jobs would be affected. And please note: The same EU bureaucrats (from another EU department, of course) have declared that 4200 mg of phosphates per day does not pose a health hazard. A Döner Kebab has on average 134 mg.

What can you say? What else can you say? “I’m from the government and I’m here to help.”

Wegen Sozialisten und Grünen im EU-Parlament – Dem Döner droht das Aus!


German Of The Day: PESCO

That’s actually English and stands for Permanently Stalled Cooperation, I think. It is the EU’s attempt to move closer to having permanent joint European armed forces.


But they’ll never manage this, of course. Most European nations don’t even live up to their NATO obligations right now.

Seit vielen Jahren ringen die Europäer um eine gemeinsame Verteidigungspolitik, der Erfolg war bisher äußerst überschaubar. Das aber könnte sich nun ändern: Am Montag haben die Außen- und Verteidigungsminister von 23 der 28 EU-Staaten dem Europäischen Rat mitgeteilt, in der Verteidigung künftig gemeinsame Wege zu gehen. Zumindest vorerst nicht dabei: Dänemark, Irland, Portugal, Malta – und natürlich Großbritannien, das ohnehin die EU verlassen will.

PS: Is she sexually harassing those guys up there?


Let’s Do The Math

Yeah, that makes sense. When Britain does it’s Brexit thing and leaves the EU the money they’ve been pumping into it all these years will stop coming in.


That means the remaining countries – like Germany – will have to make up for this. OK. Are you still with me here? Good. Now can you tell me why this is supposed to be a news item? You should have worried about this before you failed to compromise with them and let them get away in the first place.

Of the expected 10.2 billion euros that will be permanently missing in the EU budget after the Brexit, Germany will most likely have to come up with an additional 3.8 billion annually if the general conditions remain the same.

Von den voraussichtlich netto 10,2 Milliarden Euro, die im EU-Haushalt nach dem Brexit dauerhaft fehlen würden, müsste Deutschland bei unveränderten Rahmenbedingungen rund 3,8 Milliarden Euro übernehmen.


This Is A Horror Scenario For The Future?

It’s already happening now, folks.


“EU enlargement has been largely abandoned, other states have left the community, Europe has lost its global competitiveness… The increasingly disorderly, sometimes chaotic and conflict-prone world has dramatically changed the security environment of Germany and Europe.”

A possible vision for the year 2040? Nope, nobody has to wait that long for this.

In einem der sechs Szenarien (“Die EU im Zerfall und Deutschland im reaktiven Modus”) gehen die Autoren von einer “multiplen Konfrontation” aus. Die Zukunftsprojektion beschreibt eine Welt, in der die internationale Ordnung nach “Dekaden der Instabilität” erodiert, die Wertesysteme weltweit auseinanderdriften und die Globalisierung gestoppt ist.


Homeless Go Home!

Homeless go home? So you can be, I dunno, homeless there instead?


There were roughly 2,000 homeless in Berlin twenty years ago. Ever since the Eastern European countries have allowed freedom to travel it plain to see that more and more people live in the city’s streets and parks. The railway station mission and Caritas organization estimate that up to 10,000 homeless are stranded in Berlin today.

Half of the rough sleepers in the German capital are Polish nationals, German news outlet Deutsche Welle has reported.

City authorities and charity organisations in Berlin expect Poland and other Central and Eastern European countries to pull their weight in helping their homeless compatriots by providing financial help and social workers, said Ortrud Wohlwend, from the Berlin-based Stadtmission organisation.

Foreign rough sleepers in Germany are not entitled to any help from the state. They do have the right to medical care as EU citizens, however, and may apply for unemployment benefit after five years of living in the country.

Vor zwanzig Jahren, heißt es, hätten rund 2000 Obdachlose in der Stadt gelebt. Seit der Reisefreiheit für osteuropäische Staaten ist aber mit bloßem Auge zu erkennen, dass in der Stadt immer mehr Menschen auf Straßen und in Parks leben. Bahnhofsmission und Caritas schätzen, heute seien bis zu zehntausend Obdachlose in Berlin gestrandet.


How Poor Is Germany?

Why Germany is so poor it can’t even put its two cents in the conversation.


Poor? Germany is so poor it scams the Nigerians.

Germany is poor. It’s so poor it drives a Poor-shh.

And to top these jokes off, Germany is so poor that German states like Brandenburg will continue to need aid from the European Union for, like, well… Forever.

Remember: “The state (or in this case the über-suprranational-EU-state) is that great fiction by which everyone tries to live at the expense of everyone else.”

Brandenburg darf aus Sicht von Finanzminister Christian Görke (Linke) bei künftigen notwendigen Haushaltseinsparungen der Europäischen Union nicht belastet werden.