German Consumers Are An Odd Lot

They have this annoying tendency to not spend money they don’t have.

It has to do with something they call “debt.” Whatever that is.

Analysis: Spend the recession away? Not the thrifty Germans – A drop-off in spending by inflation-hit consumers was one of the main reasons Germany fell into recession in the first quarter, even as other countries in the region managed to avoid it.

What’s more, even with inflation starting to ease across Europe, the signs are that Germany’s famously thrifty shoppers are not ready to spend their way out of recession – meaning the region’s largest economy will have to look elsewhere for growth.

Everything Is Going To Plan

You didn’t really believe that Germany was going to spend that 100 billion euro special fund for the military for the military, did you?

German military in worse shape than before Russia’s invasion – The German military is suffering from a greater shortage of weapons and equipment than before Russia’s invasion of Ukraine a year ago, the Parliamentary Commissioner for the Armed Forces said in her annual report on Tuesday.

“The Bundeswehr has too little of everything, and it has even less since (Russia’s invasion on) Feb. 24, 2022,” Eva Hoegl, who acts as an advocate defending the rights of the troops, told reporters in Berlin.

German Of The Day: Allzeittief

That means all-time low.

Buying mood in Germany drops to all-time low – Consumer sentiment in Germany has reached an all-time low due to the high cost of living. The consumer barometer of the German Retail Association (HDE) fell for the third month in a row, reaching a value of 84.14 points in October, the association announced on Tuesday. The value had already fallen to 90.53 at the beginning of the Corona crisis in April 2020 but then temporarily rose again to more than 100.

Consumer pessimism is expected to have a “negative impact on private consumption in the coming months,” the association said.

Do As I Say And Not As I Do

Or, if you prefer, no more German Alleingänge (going it alone)… After this one. Promise.

Tensions flare over the EU’s new irresponsible big spender: Germany – Countries say Berlin has a burden of responsibility not just to pour billions into its own economy — when German mistakes created the crisis.

Ten years ago, when Europe was in the throes of the eurozone crisis, Germany led the drive for austerity. Now the rest of Europe is fuming about Germany’s heavy spending on energy subsidies that they fear could exacerbate the Continent’s politically explosive rich-poor divide. It hardly helps these growing tensions that it was Berlin’s misguided dependence on Russian gas that helped trigger the bloc’s energy crisis in the first place.

More Funds

Are always more fun!

Give me a break, people. Look, I’m burning this money as fast as I can!

German minister call for more funds for companies as debt debate intensifies – The German economy minister (Greens) on Thursday called for more government funds to support companies as a debate intensifies on whether Berlin should suspend its debt brake next year.

We’re Just The Government

We only create the inflation. We’re clueless when it comes to knowing how to stop it.

Anybody out there have any ideas?

German government tasks experts with proposing inflation-busting ideas – he German government will establish a committee of experts and task them with coming up with policy proposals to combat the soaring cost of heating and gas, Chancellor Olaf Scholz said on Thursday.

“New Steps To Ease Energy Price Impact?”

After being responsible for creating the problem in the first place? That just means taking away and burning more of the money of the people you’re doing the “easing” for. All “free” stuff is like that.

Germany’s SPD plans new steps to ease energy price impact, document shows – Germany’s ruling Social Democrats (SPD) will propose further measures to help its citizens cope with rising energy prices, including another discounted national transport ticket, a document seen by Reuters showed on Sunday.

Households are facing higher energy costs after the German gas market operator set a levy from October to help utilities cover the cost of replacing Russian supplies.

With energy prices rising following Russia’s invasion of Ukraine, the government has already introduced two relief packages this year, including a 9 euro ($8.96) transport ticket allowing travel anywhere in Germany that expires on Aug. 31.

“A Limit To Fiscal Capacity?”

Is there really such a thing? Someone should inform the Biden administration immediately.

Germany’s federal government has reached the limit of its fiscal capacity, its finance minister said, with extra financing to cope with the coronavirus pandemic, the impact of the war in Ukraine and a climate fund having exhausted government coffers.

“There are no reserves in the 2022 federal budget,” Christian Lindner was quoted by news website t-online as saying on Saturday, Reuters reported.

He warned against granting further financial support before the autumn to citizens to offset the impact of rising inflation. “I advise letting the measures taken so far take effect,” he said.

A €9 Per Month Public Transport Ticket?

What a steal. From the taxpayers, as usual. But still.

Germany offers €9-a-month public transport ticket – Cut-price deal allows nationwide travel as Berlin acts to soften the impact of rising inflation and expensive fuel.

The €9 ticket opens up the entirety of Germany to many who couldn’t otherwise afford it. It’s now so easy to scramble up the Harz mountains, stroll through “Frau Holle Land” and drink a few beers on the Ruhr. You could even reenact Inglourius Basterds in the Elbe Sandstone Mountains or find out why Tom Hanks fell in love with Eisenhüttenstadt for yourself.

German Of The Day: Sozi

That’s short for Social Democrat. And that’s short for Socialist. And that’s short for the big spending of other people’s money. Or “redistribuiton,” if you prefer.

Olaf Scholz is a Sozi.

Social Democrat Olaf Scholz elected as German chancellor – German lawmakers elected Social Democrat Olaf Scholz as new chancellor on Wednesday, ending 16 years of conservative rule under Angela Merkel and paving the way for a pro-European coalition government which has vowed to boost green investment.