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.
Well, there’s disillusion and there’s disillusion.
A new survey indicates that German disillusionment with the US president is “widespread.” Wow, like what a surprise or something. Even the Germans catch on eventually.
But wait, please look a little closer. The real news story has to do with the numbers behind this so-called disillusionment. “Disillusionment with Obama” over here means:
Nevertheless, they (the Germans) still have overwhelming confidence in Obama’s overall international leadership. In fact, at 87 percent, Germans are the most supportive in Europe… And nine out of 10 Germans want to see Obama re-elected.
Huh? OK. Unbelievable as usual. It never ceases to amaze me. In a nation so openly sensitive to the concept of Gleichschaltung (enforced political conformity, as in the Third Reich kind), how can you get more gleichgeschaltet than that?
In retrospect, hopes for an Obama presidency were unrealistically high, especially among Europeans.
All of this is kind of like religion, don’t you think? First you’ve got some prophets who come out of the wilderness (the political class preaching the virtues of the euro, come hell or high water), then what they say gets labeled as heresy by the faithful (by the “man on the street” who wants to keep his deutschmark), then the euro faith overcomes this persecution, establishes itself as the true universal teaching and becomes orthodoxy. Then the next voice out of the wilderness comes along and the game starts all over again, etcetera and so forth already.
Don’t get me wrong, I don’t beleive that Thilo Sarrazin is a full-fledged prophet or anything (I just think he wants to make a buck, I mean euro). But he’s not a full-fledged heretic, either. And that’s something the euro high priests could never admit to.
The euro, in Sarrazin’s view, is just the old German deutschmark extended to a lot of countries with less robust currencies.
Germany, in other words, is being used as a guarantor of other countries’ debts.
“The German political class bet that the political union would follow shortly thereafter almost as a matter of natural law, because without that the common currency wouldn’t be stable. That bet has failed.”
Germans are hostage to their sense of not wanting to be responsible for Europe’s failure.
Germans are hostage to their sense of historical guilt.
“Pro-euro Germans are driven by that very German reflex, that we can only finally atone for the Holocaust and World War II when we have put all our interests and money into European hands.”
“Angela Merkel to like the friendly woman on the navigation system in my car.”
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.
And it looks like it’s a word that’s going to cost Germany millions in fines for not being willing to go along with the guidelines concerning it as determined by the EU.
I mean, we all know that Vorratsdatenspeicherung is a touchy subject and all. Some countries do their Vorratsdatenspeicherung this way, other countries do their Vorratsdatenspeicherung that way. But any way you cut the Vorratsdatenspeicherung cake, Vorratsdatenspeicherung is Vorratsdatenspeicherung and I, for one, find it irresponsible of Germany to just ignore the EU’s Vorratsdatenspeicherung guidelines like that, just because they’re Germany, I mean. All Europeans are in the same Vorratsdatenspeicherung boat, after all.
Who do they think they are, anyway?
You should be ashamed of yourself, Germany. Put that in your Vorratsdatenspeicherung pipe and smoke it.
“Was wir auf den ersten Blick sagen können ist, dass Deutschland anscheinend keinen Fortschritt bei der Umsetzung der EU-Richtlinie zur Vorratsdatenspeicherung gemacht hat und weiterhin EU-Recht verletzt.”
PS: Vorratsdatenspeicherung means data retention (the EU wants to retain data for six months, Germany doesn’t).
German tourists may gladly zip off to some of the most dangerous places on earth you can imagine, but not even they are crazy enough to be heading down to Greece any time soon.
“The Germans aren’t coming here this year but there’s no reason for them to be afraid,” one Greek guy said. “Honest,” he should have added.
“We don’t have a problem with the German people, only their government,” another guy added, who forgot to say “Really.”
“That’s just the way Germans are: if there’s trouble in some country, then Germans just don’t go there on their holidays.”
Well, they won’t actually be shooting at the pirates per se (that would be bad), but more like at their equipment and stuff. You know, at the loot and the booty on the beaches? This will make the pirates run away and never come back again or at least become good or something.
It is all part of the EU’s anti-pirate Operation Atalanta off the Somali coast so it’s OK for Germans to do this, really.
The German opposition continues to criticise the operation as risky overreach for the forces and has vowed to vote against it.
The project to set up a European rating agency to challenge the dominance of American firms is at risk of collapsing, the German business daily Financial Times Deutschland reported on Monday. International consulting firm Roland Berger can’t find enough investors for its plan.
Hey, you-know-what happens. But don’t worry about it, Europe. It’s not like anybody is going to be rating you on this or anything. When in doubt (and you always are), just keep on bitching and moaning instead.
Ihnen wird nicht nur wegen Fehlbewertungen eine Mitschuld an der Finanzkrise gegeben. Auch ihre Rolle bei der Beurteilung der dramatischen Rettungsbemühungen und -konzepte für hochverschuldete Euro-Länder wie Griechenland, Portugal und Irland ist umstritten. Das Urteil der Ratingagenturen prägt letztlich vielfach die Marktreaktionen auf solche Bemühungen.
The German government didn’t reach even half of its planned savings in the federal budget in 2011. Only 42 percent of the spending cuts named by Merkel’s coalition government, comprised of the conservative Christian Democrats and the business-friendly Free Democratic Party, were actually not implemented…
The government is also falling behind on its targets for this year. Of the originally planned €19.1 billion in savings, less than half has been implemented…
This lapse (in reaching savings targets) is particularly embarrassing for the German government because the news comes just after 25 European Union member states agreed in early March to an international fiscal pact obliging them to adhere to greater fiscal discipline…
The aim of the pact is to make EU countries maintain binding austerity measures that leaders hope will contain the debt crisis and prevent countries like Greecefrom being able to pile up massive debts again.
And countries like Germany will show them how to do it, see? Next year, maybe. Or the year after that. Hard to say for sure.
“It (the pact) is a milestone in the history of the European Union.”
I call it Hurt Feelings Burnout Syndrome (HFBS). With an emphasis on the BS. Oh man, I had to laugh out loud while reading the latest on the poor, misunderstood German front.
It appears that many German intellectuals are very concerned about how their European neighbors think of them (Germany) these days. Needless to say, it isn’t very highly at all. And some have come to the stunning conclusion that they are so disliked at the moment because, now get this, they are so big and strong. Imagine that.
Germany is the USA of Europe – only with a different history.
You don’t need to puzzle for very long about the question of why so much Nazi name-calling is going on at the moment: For the first time since 1945, Germany has appeared in full strength again. Not because anybody wanted it, but because the European debt crisis has made the most economically powerful country the most politically powerful one, as well. Germany is now intervening in the internal affairs of others in a big way.
Slowly but surely, the country is taking over a role for Europe that the USA has played for the rest of the world for so long, as being the country that uses (and sometimes misuses) its power, the country that is to blame for everything, the country that is supposed to save everything and is reviled for the way it does it. What has America not been accused of? The CIA has always been behind everything and American imperialism has always been the motivation.
How moving. Or something. And the rest of the story? Now folks are calling Germans Nazis again (as if they had ever stopped). Boo-hoo-hoo already. Come on, Germany. Wake up and smell the coffee. You’re the big kid on the block. Run with it. Enjoy. It comes with the turf.
And in a related story (I find), it turns out that Germans are also now “burning out” like flies (it’s hard to carry on when nobody likes you, I guess). This imaginary disease (yet another American import – are we having irony yet?) is currently running rampant among Germany’s workforce, with nearly 1 out of 10 sick days in Germany in 2010 being attributed to it (tendency rising). Another connection to US-Amerika? Oh my God. No wonder so many Germans are getting sick. Please note: The high-brow daily Frankfurter Allgemeine Zeitung questioned why burnout was being written so much about in Germany, while in France, which is economically a lot worse off, “it’s hardly a preoccupation at all.”
Remember: HFBS is incurable, but there are many effective treatments. One of them is shutting the #!?#! up.
Man braucht wirklich nicht lange an der Frage rumzurätseln, warum die Nazi-Vergleiche im Moment so oft gezogen werden: Zum ersten Mal seit 1945 tritt Deutschland wieder mit voller Macht auf, nicht weil man das gewollt hätte, sondern weil die europäische Schuldenkrise das ökonomisch stärkste auch zum politisch mächtigsten Land gemacht hat. Deutschland greift nun tief ein in die inneren Angelegenheiten Dritter.
Allmählich bekommt das Land für Europa eine ähnliche Funktion, wie sie die USA lange Zeit für die ganze Welt hatten. Als jene Macht, die ihre Kraft gebrauchte, manchmal missbrauchte, die an allem schuld war, die alles retten sollte und sich dafür beschimpfen lassen musste, wie sie es tat. Was wurde den Amerikanern nicht alles Übles angedichtet, immer steckte die CIA hinter allem Bösen, stets wurden die Amerikaner des Imperialismus geziehen.
PS: I hate to admit it, Germany, but I guess we’ve got more in common than we would like to admit (thanks for the idea, Old Phat Stu).
