Globalists Say Britain Should Rejoin The EU, Are They Having A Laugh? German Citizens Are Not Amused

 

Germany: the 'sick man' of Europe again?

August 4, 2023

Despite the constant wailing and gnashing of teeth from globalists who insist on trying to blame Brexit for Britain's economic woes as if we alone are suffering a multi - layered economic crisis and that the only was out of it is for the UK to rejoin, the EU, taken as a single economy is in a worst state than the UK.  The German economy, on which solvency in the EU has depended for a long time, is in deep trouble with inflation soaring and growth stagnant, and as long as current policies remain in place there is no sign of improvement in the foreseeable future. The serial crises of the past decade and a half, from global financial meltdown through immigration, political uncertainty, COVID and the aftermath of lockdowns to the Ukraine war, energy crisis and sky high inflation, have exposed the weaknesses of the country's business model.

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Shortly before the turn of the century British business magazine The Economist published a series of essays and articles on the German economy, which concluded by describing the country as the sick man of Europe. Although this was at the time when the rest of the world was still being propagandised into believing in the German Industrial Powerhouse the insult served as a wake-up call for German politicians, which, having bought into their own propaganda was still living in the boom years that followed reunification reunification. Germany's Federal Government had been delaying much needed reforms, hoping like Mr. Micawber that 'something would turn up. 

 

Prodded by the Economist and other critics the government of Chancellor Schröder introduced major reforms to the labour market, directing the main thrust of its efforts towards reforming Germany's generous social welfare program. In particular, the government wanted to reduce the costs of the bloated welfare system; with an ageing population and high levels of sickness and disability, the number of beneficiaries was increasing at a rate exceeding the number of contributors, thus driving the state budget close to insolvency. High benefit levels had to be paid for and economic recovery was hampered by high taxes. In response to this Schroder attempted to relieve the burden on businesses of the country’s high taxes and labour costs, which had driven away foreign investment and encouraged German firms to close German plants and move them overseas.

 

These steps slowly trurned things around and in 2014, a group of economists from Berlin and London wrote that Germany had developed"From sick man of Europe to an economic superstar."

However in 2023 the wheel has turned full circle and German economy is again struggling. For the final quarter of 2022 and the first of 2023 economic output has declined putting the national economy in "technical recession." In the most recent quarter, Germany's gross domestic product (GDP) has stagnated at the level of the previous quarter, and all the important economic indicators show a decline.

"Germany's economic situation is darkening," was the conclusion of the president of the Leibniz Institute for Economic Research at the University of Munich, Clemens Fuest. The Institute surveys 9,000 executives each month about the current state of their businesses and their expectations for the next six months. The resulting Business Climate Index (July 2023) has fallen for the third month in a row. The Institute researchers expect Germany's GDP to decline again during the current quarter. ... 

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Commerzbank chief economist Jörg Krämer reinforces the opinion of Clemens Fuest and the Munich Institute for Economic Research: "Unfortunately, there is no improvement in sight," Krämer told the Reuters news agency. "The worldwide interest rate increases are taking their toll, especially since German businesses are already unsettled due to the eroding quality of their location."

The country's industrial sector, the showpiece of its economy, is causing the most concern. It accounts for a relatively large portion of Germany's gross value added (GVA), about 24%, and has been suffering  global trends along with other developed nations. A worldwide economic slump in the wake of the COVID pandemic fiasco added to globalist ideologies' influence on policy making it easier for manufacturers to move operations from highly regulated areas such as the EU to nations ith more lax regulatoty and business taxation jurisdictions. Germany's once mighty engineering and automobile sectors, which were heavily reliant on exports, are feeling the effects of foreign customers holding back while cheaper imports from China and other 'emerging' economies flood the domestic market.

And on top of all this a decade of unregulated mass immigration of semi - literate, poorly educated, culturally incompatible, unemployable migrants from third world nations has bloated the welfare system again.

Compared with other industrialized nations, Germany is performing exceptionally poorly — and according to an estimate by the International Monetary Fund (IMF) will be the only large country to have a shrinking economic output.

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American Financial Meltdown? Troubled California Bank PacWest Craters 60% On Report It Is Seeking Buyers - Crisis Affects Other Banks

Financial stability - it's just an illusion (Picture: thumbs.dreamstime.com/

 

This morning  U.S. Federal Reserve chairman Jerome Powell openly lied to financial reporters during a  press conference stating without a hint of irony that the US banking system is "sound and resilient."

Ironically even as Powell was speaking the news broke that  another  bank collapse was on its say.

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the next regional bank collapse was on its say.

Shortly after the close, Bloomberg reported that another regional, California-based bank (of course), PacWest Bancorp., was weighing a range of strategic options, including a sale.

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Europe is Flouting its Own Sanctions Because it Has to

 

by Noah Carl, Daily Sceptic

12 July 2022 2:34 PM

The situation in Europe is going from bad to worse.

Inflation is still rising in almost every EU country, with Estonia now logging a rate of 22%. In Russia, meanwhile, inflation fell by 1 percentage point in the month of June. And Russians are used to rising prices; inflation there is the highest since 2015. Inflation in Germany, by contrast, is the highest since the 1970s.

This morning, the Euro reached parity with the dollar, having declined by 12% since the start of the year. But that’s not the only exchange rate shifting against Europe’s interests. As the chart below indicates, the Euro is also way down against the rouble. Before Russia’s invasion, one Euro was worth 85 roubles. It’s now worth less than 60.

And the price of natural gas continues to climb, heaping pressure on consumers and businesses alike. It’s worth putting the recent spike into context to show just how high prices are, relative to what Europeans are used to. The chart below plots the benchmark EU gas price over the last ten years – it’s currently 900% higher than in the mid-2010s.  

In case you thought we’d seen the worst of it, there’s more bad news. According to Javier Blas (Bloomberg’s energy man) Europe’s natural gas crisis is “worse than it looks”. He argues that just before the winter “Moscow will completely turn off the tap” – an outcome the market “hasn’t priced yet”. Indeed, the head of the IEA has warned that, “This winter in Europe will be very, very difficult.”

As I’ve noted before, energy prices were rising even before the war in Ukraine – thanks to supply chain disruption during the pandemic, and the shuttering of too many oil refineries. Yet sanctions against Russia have undoubtedly exacerbated the problem.

At present, Europe is in the odd position of having sanctioned one major Russian commodity (oil), while it continues to buy large quantities of another (gas). In fact, it’s stranger than that: as EU leaders ramp up sanctions on Russian oil, they denounce Russia for “weaponizing” natural gas. They seem to be saying: ‘It’s unconscionable for us to buy oil from Russia; but it’s also unconscionable for Russia not to sell us gas’.

Needless to say, this doesn’t make any sense. Given the prospect of a major recession if Europe doesn’t put a lid on energy prices, you might ask: why on earth are we persisting with these sanctions? 

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Forget The Recession, Some People Are Not feeling The Pinch

Time is running out for the world's largest economy, only war can save it from debt (image source)

Some say the nations of the developed world are heading towards another crash followed by a recession. Some say we have been in recession since 2008 and only financial prestadigitation has created the illusion of any recovery.

We say that as far as the ordinary punters are concerned we have been in recession since 1991, with government and banks propping up failed economies by printing money and inflating asset values to underwrite their ruinous borrowing. But not everybody does badly when there is an economic downturn.

Below is a post from 2013, when the major economies last slipped into recession.

Forget The Recession, US Banks Post Record Profits

Do you feel the value of your savings has been eroded and the buying power of your earnings reduced by higher taxes and austerity measures governments have introduced to 'save the economy.'Yeah but ... we're all in this together aren't we and everybody is making sacrifices, you might well reply. Except we're not all in it together, not everyone is ...

 Forget The Recession, US Banks Post Record Profits

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