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Germany-US Rift Gets Deeper, As Merkel Openly Mocks Obama's Keynesian Guidelines
The transatlantic smackdown is getting vicious, as Angela Merkel makes a point to demonstrate her refusal to follow Obama's policies before a business audience in Berlin. As Bloomberg reports, "Chancellor Angela Merkel championed German export strength as “the right thing” for her country, spurning President Barack Obama’s call to boost private spending as both leaders prepare for Group of 20 talks. Merkel, addressing a business audience in Berlin today, said she told Obama in a phone call that cutting government debt is “absolutely important for us,” exposing a second point of contention ahead of the June 26-27 G-20 summit in Canada." It appears Germany's chancellor is actually prudently thinking ahead after realizing that the recent bailout of Europe has massively angered potential voters, cost her parliamentary majority, and absent damage control, her career would come to a premature end. If that means openly mocking the pinnacle of Keynesian insanity these days, Washington D.C., so be it. It is strange that our own president has yet not realized his own political career will be very short unless he follows in Merkel's footsteps. Instead, he and the Fed will melt the market up to unprecedented highs in the months leading to the mid-term elections in hopes that this will presumably indicte just how strong the US economy is, even as fresh new millions in the GoM find themselves unemployed courtesy of some salt water content in the oily gulf. Perhaps Orszag is much smarter than people give him credit for: surely his pitchfork avoidance skills will come in very handy when the tide finally turns.
More from Bloomberg:
Reducing the budget deficit by 10 billion euros ($12 billion) per year “won’t put a brake on the world’s economic growth,” Merkel said, relating what she told Obama yesterday. Germans are more likely to spend money if they feel the government “is taking precautions” to ensure solid finances, she said.
Four days before world leaders meet in Toronto, Germany is heading for conflict with the rest of the G-20 over tighter financial regulation, a banking levy and U.S. calls to boost growth rather than cut debt.
The G-20 must “safeguard and strengthen” the economic recovery and promote “global demand growth that avoids the imbalances of the past,” Obama said in a June 16 letter to fellow G-20 leaders. He expressed concern about “heavy reliance on exports by some countries,” which he didn’t name. Treasury Secretary Timothy F. Geithner called on June 5 for “stronger domestic demand growth” in European countries like Germany that have trade surpluses.
The upcoming G-20 meeting will likely be very contentious:
Merkel said on June 11 that she expects to have a “hard time” from fellow leaders at the G-20 meeting, where Germany and France are leading Europe’s push for a global commitment to impose bank levies and a tax on financial transactions.
The G-20 faces a test of unity on the banking levy, a German government official said earlier today, warning that leaders can either pull together or split into two camps over the tax. The official spoke to reporters on condition of anonymity.
And the punchline:
Obama’s appeal “isn’t anything that goes against what we are doing,” Merkel told reporters yesterday. “If we don’t get onto a path of sustainable economic growth but have rather a growth bubble, then if the next crisis comes we won’t be able to pay for it.”
How long before our own "elected" leaders realize they should follow the will of the people, not the recommendations of economic advisers who have a 2 year shelf life?
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It will be interesting to see how she is portrayed by the U.S. mainstream media.
She-Devil?
How dare she mock our Kenyan president...
Merkel has garnered worldwide respect, her comments are duely noted.
I'm beginning to see and smell some rats leaving some sinking skips. We shall know the end is near when the rats repudiate the almighty dollar. That milestone is still some distance off, but getting closer on a daily basis. When, not if.
True dat, CD. I had copied the sentence from Tyler's post that struck me the most, and then saw your comment. Here's Tyler:
The rats are certainly moving... some are leaving the nest... others have left the nest and are already singing a new tune to placate the engraging masses.
Merkel and Osborne are both on the right side of the equation here. If Obama had entered his term with a massive budget surplus (thanks Mr. Bush) perhaps there would be more stimulus to work with. The question is whether Obama takes the next step to Keynesian Hell, or whether the light bulb turns on and the next step is the American version of austerity.
As long as Summers, Geithner, Emanuel, and Bernanke have the President's ear, I'm thinking we remain on the road to nowhere.
Barry can't change positions. He's already fully committed to the model of dealing with a debt problem with more debt. To step away now would invite attacks from to many angles. He would be accused of making a mistake/flip flopping, and he would also be accused of not sticking with the doomed Keynesian model by people like Krugman. The die has been cast and he must now move along with his decision.
Now having said that we might see a change post election as he surveys damage and then tries to pass the problems onto a new Congress.
The problem with American austerity is America is the greatest ponzi scheme. When austerity kicks in they are in effect admitting to the public it is a ponzi scheme. The blowout will be spectacular, and the damage done to the dollar incredible.
All true statements, Shameful.
Whether Obama stays the course or changes to austerity, he is political kryptonite. Once he discovers that this November, perhaps he changes course... who really knows? The longer he delays austerity, the bigger the unwind will be... he will not be able to successfully pass the problems to a new Congress, as his "legacy" has already been set.
If the austerity measures gain traction elsewhere in Euroland and progress is made toward recovery, the dollar will crash regardless. Our best bet (really) is to take the medicine at the same rate as everyone else. Sure, the clothing will be revealed as the ponzi scheme that it is... but do nothing and the loss of the dollar as the world's reserve currency is pretty much guaranteed.
My fear is that we just keep on printing until that rubicon is pretty much crossed. We get there, then the pitchforks do come out.
Once he realizes that his game plan is severely flawed and the end of the road is in plain sight, he will switch gears, or at a minimum, attempt to make it appear that he is.
He ignored the Gulf spill until the political pressure forced him to act.
Staying the course, once proven to be disastrous, will force him to alter his course but it will be to no avail.
I happen to think the Rubicon was crossed long ago. Back in Bush's reign at the latest time for a real point of no return. The dollar cannot be saved. Best case we suffer a massive devaluation and loss in standard of living and don't undergo to much social disorder. Quietly slip into an underdeveloped country. But where is the profit in that? They gain by keeping the ball in the air and looting while they can. Now the less brave are fleeing as we speak, they are taking their loot and running. Others are more dedicated to their looting ways are ready to ride it out.
Also never forget that this is the biggest criminal gang on earth. Do not think for a moment they would not see the pitchforks coming and deploy super weapons to stop them. Worse case for them they get bottled up in Mordor and then flee to their overseas assets as the nation slides into oblivion. In reality I think they are going to try to ride the tiger down with a police state (and stage an event if need be). It will be one hell of a ride, but I think a lot of people are going to want to get off.
" I think they are going to try to ride the tiger down with a police state (and stage an event if need be). "
Excellent, Highly Probable Call.
lets not kid ourselves...austerity is a big scam, just to gain more time before the inevitable..it is too late for austerity, maybe 5-10 years ago it would have worked..how can greece or spain save itself with austerity or germany for that matter with its insolvent banks..
He would get much criticism, yes, but if he feels it is the right thing then he should do it, it will get respect from myself anyone who realizes the ability to admit and fix your mistakes is crucial
The last exit is a dwindling dot in the rear view mirror...no U-turns from where we're at...
"Thanks Busch"?? For what?
Don't get it? Busch spent the surplus trying the SAME fking thing Bama is. Keynesian stimulus from the supply side. He faced the same all-out debt meltdown deflation forces as have been lurking since 1970
The decision to devalue was made long ago. (Not that I actually know that to be true or not, but I think a multi-year pattern of behavior is enough to safely say so.)
The problem is that they can’t come out and simply say so. "We are going to devalue the US$ by 50%" would be soooooo banana republic.
There is only one way the U.S. can devalue its currency, and we’re witnessing it.
They can't until the petrodollar link is broken. This would require a major break by KSA, which is only foreseeable if there is major revolution there.
We got a taste of our mortality in 1973, and now every single thing we do geopolitically is to defend that petrodollar link. Without it we are instantly finished and everyone knows it.
We kind of need a sunni destruction of both Iraq and Iran's shiite populations because the sunni axis is much more under our control in the Gulf
Agreed.
That's why I said it will take a while. But once there is USA blood in the water, I will only be surprised by the speed at which the USA dollar is thrown overboard, not that it is. I personally think this is why the Fed and US Gvt controlled banks and brokers attacked the Euro. To discredit it in the eyes of people who are looking for something, anything, other than the dollar.
"I'm beginning to see and smell some rats leaving some sinking ships..."
Time to Invest, Bitchez!
Rat Zapper
Merkel, Bitches!
US and Europe are in a different fiscal parallel universe. It is like captain picard trying to communicate with the paclids. They do not understand each other unless one is willing to give it a try.
Yes, and if the USA keeps pumping their deficit spending will be supporting economies moving to austerity. We're d00med
Good point. With austerity, everyone else will need a bailout. Uncle Sugar to the rescue.
Iron Lady.
haha. she was knocked down by sarkozy and she's gonna be knocked down by obama. merkel "kills" every political opponent within her party and in the hole country. but in order to be accepted by her foreign colleagues, she's exactly that kind of brown-noser we all used to hate back @ school.
using the words 'iron', 'lady' and 'merkel' in one sentence is just ridiculous.
greets from the south of germany
Not even when she lunches with Christine...
For A. Merkel -
"The older I get the less I listen to what people say and the more I look at what they do." A. Carnegie.
Say what you want - mock Obama to the same crowds that applauded him without reason 20 months ago - we will not forget your spineless trillion dollar bailout.
Who is Obama to be telling another country to cut deficits, when the US deficits have doubled in the past 2 yrs he has been in office and set to triple. Don't you think you need to get your own house in order, before you tell other people what to do??
This government is out of control, the American people better wake up. Bernanke and Geithner need to be removed from their posts quickly and prudently. By force if it comes to that, along with this crooked Congress.
Try pulling food from a pigs mouth and let me know if you get bit.
Heh heh heh...
Better wake up?
Remove Bernokio & Turbo Timmay?
Congress cannot even pass a decent financial reform bill or reintroduce Glass-Stegall.
"...your own house..."?!
Obama: "Let me be perfectly clear: We can all agree that, and no one would dispute that, this is the house that Bushitler built, with help from Rezko, er, Cheney."
It will become Obama's house if and when things have finally turned the corner, but not until then.
You misunderstood. US is encouraging other countries including Germany to increase deficit spending.
Obama is looking more and more like an economic rodeo clown every day.
Thanks Timmy!
Funny, I didn't build up my personal reserves to fuel growth. Quite the opposite.
The inmates are truly running the asylum.
Timmy is indeed the Assman.
Credit availability is improving because no one can afford to build more credit. Quite the opposite... we are purging debt, and for good reason.
Companies who are building up cash reserves -- and not using them -- are doing so for a reason. Perhaps one of those reasons is to absorb expected losses on the balance sheet... or for re-investment 3 years down the road when asset values are 50% lower and interest rates are prohibitive.
Of course, we all here at ZH already know that. So do most businesses.
Oh, and poor credit conditions didn't drag this economy into recession in 2007(8)-- rampant fraud in the credit markets did that trick. Just something that we all know needs clarifiying.
Other people's blance sheets are some people's income statements
Good point, double down... they'll be screwed, too.
Corporate cash levels are at record highs, but so are liabilities (Fed Flow-of-Funds). Corporate net worth is down 25% since 2007.
Germany does not have the unfair advantage of possessing a reserve currency. It's a license to steal. The Germans know they cannot mimic the PIIGS or the US. They design and produce products others want. They educate their citizens to be leaders in their field. They don't believe in stupid concepts like a consumption based economy or you can base an economy on information or services. Germany will still need to tackle it's huge other problems however or they will go down the toilet too.
What the hell kind of nonsense is that? That's no way to run an economy/country! [/sarcasm]
absolutely correct.
absolutely incorrect. our citizens are educated to be super-useful slaves in big government and big corporations, just as anywhere else in state schools. critical thinking different than mainstream? no need for that! no employer wants people like you!
haha! u don't know that guys of SPD, green party and the left party. what do you think, where the official €1.7bn of debts (>70% of GDP) come from? intelligent investments?
US has the only really working printing press.
No one else can follow US printing madness ad-libitum, or the bond vigilantes will get'em.
Remember, US printing press is the tool for world domination, once we finish killing the dollar, the joke is on the foreign US debt holders.
It's my understanding that the US Bureau of Printing and Engraving prints currencies for other countries as well. Does anyone have a list of them?
Anyone have any idea where I can get some Deutsche Marks?
Already printed waiting for the other shoe to drop. Germany has made a killing off the Euro. They were able to grow exports to other EU cuntries and absord East Germany. They still have more gains to eek out of the Euro before the party ends.
"...a growth bubble (what is that?), then if the next crisis comes we won’t be able to pay for it" (what??? I don't even understand the concept. Every crisis needs to be paid for? Hooray for crazy people.)
you don't understand; Germany has a real economy. Germany makes things. They make automobiles that people want around the world. They make trucks and buses that people want around the world. They make heavy presses, machine tools, printing presses, industrial mechanical and electrical infrastructure. Germany has a real economy upon which to fall back.
The USA has mortgage brokers, real estate agents, home builders, tax preparers, real estate appraisers, building department employees, education administrators; none of these things are of any value to anyone, certainly not outside the USA
The US has greatly diversified its exports since GD1... it used to be that we just exported grains. Now we export grains AND bad debt.
+10
+ 1000..
One day Americans will realize this. But.. it will be too late.. We will need to hit the reset button by then..
Saw "Designed in the USA" on a particular product recently which just about sums up the level of US manufacturing and the mentality of the average marketing graduate.
The part that Obama doesnt get is that the majority of German companies are still family owned. No shareholders means more cash going back into the firm / community / central tax. One firm will be responsible for keeping a small town fed, clothed and housed (common for mittelstand firms to own their own housing stock and then offer cheap rents to employees) - this is what Merkel is protecting.
If it does go tits-up in the fatherland, Uncle Sam left 10 nukes behind which may well come in handy.
Germany also doesn't outsource every last thing that isn't nailed down. And a German with a high school (Gymnasium) diploma is a well educated, functional person. Look at the VW factory in Dresden:
http://www.youtube.com/watch?v=nd5WGLWNllA
http://www.youtube.com/watch?v=ByFno9qIMLM
Recently, saw a rerun of American Chopper, in which they visited a Mercedes plant. The place was immaculate. It was hard to believe they built cars there.
Don't forget that the German government encourages education to keep the unemployment number low. That's why Ingenieure haben alle Master-Studiengänge
and germany doesn't have a 25% third-world demographic with IQs averaging around 90, nor a massive, 40-year program to ensure that as many of this demographic as possible are forcibly promoted into mangement positions.
What we have here is not just a failure to communicate, but it's a study in network theory or dynamic design. How many nodes can be total failures in an organizational network before the entire structure collapses.
The US is still playing pretend like it is 1950 and we can AFFORD to put wheelchair ramps on aircraft carriers or whatever the ADA mandates, among other things. We are flat out fking silly and it will be the end of us.
But...but...what about all of the entrepreneurs on eBay, Multi-Level Marketing like Shaklee & Avon et.al....We not only buy and sell to one another, but some of these entrepreneurs ship globally...You mean that we can't support a multi-trillion economy with the likes of these?
If one really wants to see just how lazy and worthless American's have become, just try one of the Multi-Level Marketing scams...I did a research paper back in 1995 which included gathering real data from first-hand experience in MLMs...Everyone would attend the FIRST meeting to get all signed up and GET RICH, but when it came to getting off their lazy asses and DOING something, well forgetaboutit!!
Do not forget auditors
USA also has millions of computer programmers who write apps. That must account for something, right?
The US has just enough people with just enough knowledge of code development so they can debug the stuff written in India and China.
More than what your punk ass is worth.
Excellent thoughts but you've forgotten the other industries that keep this soon to be train wreck rolling for now. Strippers, beer and the medical industry.
When I watched CNBC's "Last Days of Lehman Brothers" the other day, I noticed a line from Paulson. He said 'we've got to hold this together for just a little while longer'. Now that could've been in reference to the Bush administration or something else.
Personally, I think we're done and one day soon, the Chinese are gonna show like some angry collectors for the Mafia.
(now for the math test)
No. the Chinese are the Bamboo Lounge. WE are the mafia.
Without the generous pension benefits which are being laid to waste, this is only going to get worse. The labor is too cheap in Asia, our corporations will never sacrifice cost-cutting in order to have more jobs here and increase our manufacturing presence.
That said, it seems the Chinese are becoming aware of their slave-labor state and demanding more compensation, though for now the increases are insignificant. Though we'll just move labor to exploit some other country when this gets too expensive. Its a disgrace to see what our corporations are paying these workers. And to anyone who says that "well you wouldn't be willing to pay more" if the labor moved elsewhere, I say, maybe not, so then I wouldn't buy their products, so what? Maybe their executives will be forced to cut their insane compensation packages, OH NO!!
How dare the Rineland tell us we cannot spend to our hearts content, only to drive the world into yet another crisis.
She's right. I only hope she can stand her ground. Obama and the idiot policy makers he has on staff have NO business telling anyone how to manage their economy. They have already f***** this one up (and most others through incompetent oversite / all administrations to blame here).
"It is strange that our own president has yet not realized his own political career will be very short unless he follows in Merkel's footsteps."
As someone who voted for him and has friends on the far left, I can tell you that he is a one term President.
Even if Sarah Palin runs with Barry Goldwater as the Republican ticket, I'll stay home and watch Turner Classic movies.
The global credit problem that we face now is unfixable with the current terms of diplomacy and verbiage. World War III or massive economic pain world wide will hit the reset button.
I'm curious about your fixation on Sarah Palin.
To me, the far left and the far right are basically the same. One wants the oligarchs inside Government and from that position to own everything. The other wants the oligarchs to own everything, including Government. They both revere the same oligarchs.
Sarah Palin is the opposite of all of that. That was why she was selected by McCain. Her approval ratings in Alaska were very high, coming from both sides of the political spectrum.
How did the far left expect Obama to "play out"? After all, he was the oligarch's point man. He defined their marketing "brand". When you heard of "Hope & Change" what did you think was going to happen?
"How did the far left expect Obama to "play out"? "
_
They expected Obama to play to the far left.
(that was a trick question, right?)
(As for Sarah Palin, if you think that it is right to give her the launch keys to thermo- nuclear warheads - then you stand for everthing I detest in the U.S., ignorance, stupidity and arrogance.)
__
On the flip side:
Don't be so gloomy. After all it's not that awful. Like the fella says, in Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed, but they produced Michelangelo, Leonardo da Vinci, and the Renaissance. In Switzerland they had brotherly love - they had 500 years of democracy and peace, and what did that produce? The cuckoo clock. So long Holly.
--
Well said, in all respects.
Your inquiry linking Sarah with nuclear warheads was spot on -- it cannot but help to make one shudder. If one's popularity in Alaska -- a welfare state of there ever was one -- and her background of Wasilla mayor and half-term governor there are regarded as qualifications for Leader of the Largest Military Empire the world has ever seen, one can only cast hope aside.
Refresh my memory here - what were Bama's qualifications prior to this job? Answer: none.
Busch? Same answer.
WTF does it really fucking matter? You guys' hardon for Sarah Palin, both for and against, totally makes me laugh because it's completely STUPID
I agree
Thanks for your honest answer. That's how I thought the far left expected things to play out. It's a shame it isn't going to happen that way.
Oh well, in for a penny, in for a pounding...
with all due respect, sir, sarah palin is george bush in a skirt. her understanding/knowledge of critical issues is a mile wide and an inch deep.
without her her team of media-con handlers to program her with soundbyte response she would sound like just another small state governor in way over her head...........
her, yomama, dubya, they are all prototypical, bought and paid for, sock puppets.
"
As someone who voted for him and has friends on the far left, I can tell you that he is a one term President.
Even if Sarah Palin runs with Barry Goldwater as the Republican ticket, I'll stay home and watch Turner Classic movies."
You and your friends should have done that last election.
Obama will muster the entire army of the think tanks available on the planet and send them in a US-taxpayer funded jet to Berlin to make a verbal assault on Merkel. Wait and see. After G20 Angela Merkel will be ... a changed person...
Go Angela go! Rub it in his ugly face! The Germans may not be perfect, but at least they are heading in the direction of some sanity.
Certainly the president has Dr. Krugman on his side. The Dr. is recognized and honored as one of the greatest economists of all time - however, that seems to mean squat because he's an awful mathematician blessed with a complete lack of political understanding. Advocating a spend now - we'll save it later option to a senator or congressman is a green light to fiscal madness - only coming to an awful end in collapse because addicts can't stop spending or promising (buying your vote).
Mathematical sanity must be embraced and yes today's standard of living will take a 25% hit but that's better than a 45% hit five years from now.
"Certainly the president has Dr. Krugman on his side. The Dr. is recognized and honored as one of the greatest economists of all time - however, that seems to mean squat because he's an awful mathematician".
Shirley, you mean this in jest as it is so obviously contradictory. In case you are serious, let me correct you. Krugman is NOT one of the greatest economists of all time. He is, however, one of the greatest douchebags of all time.
I really don't think he is joking.
And don't call him Shirley.
Airplane
Goon Show, 1951...
Assetman... YES - I was joking but I guess it backfired on me as some of you thought I was actually being complimentary to Professor Dr. Krugman.
Krugman, like most academics, is disconnected from the real world.
What reason, other than insanity, could bring him to recommend that consumers, already overburdened with debt, increase their spending?
Seriously, what could Krugman do if he were send out into the real world with no money? Could he drive a cab? Could he manage a 7-11?
Krugman has drunk to Keynesian kool-aid for so long he doesn't know any better.
Learn It
Know It
Live It
Krugman will commit hari kari once he discovers the failure that he truly is.
William K. Black addresses this subject. Black doesn't believe that a sixty year old man will ever admit to being wrong about everything and to having no useful skills.
Do you think Krugman could cut it as a bellman at a NYC Hotel?
Of course I meant it in jest - being an economist or a reader of Tea Leaves is the identical art - the magic of the gypsy.
Germany capitalizes on the rest of Europes failures. A weak Euro drives their export driven economy, leaving much room for austerity without painful cuts. Staying on this path, when the Euro finally fails they will then pay off their debt and purchase fire sale european assets with newly minted Uber-marks.
As they should. DE paid for the modern infrastructure in 6-8 PIIGS. If the rest of Europe (+ N. America) are not interested in producing world-class products, then let them suffer the consequences. Success/solvency is a choice, not a pre-determined fate.
I am sooooooooo jealous. Since I am not known for bullshit (diplomacy), I would give anything to be a member of the G20 so that I could actually get right up close and personal with The Messiah and GET IN HIS FACE with the TRUTH.
I would also be happy to lie down on the floor so that I could GET IN THE FACE of Tiny Turbo Tim. I will admit that when standing up I just might happen to step on the LYING BASTARD and have to clean the soles of my boots. They are already full of horseshit from cleaning the stables, so adding Timmy, while a step down from horseshit, won't bother me.
Should Merkel now be hauled before congress for a dog and pony show? Then be ordered, right after McChrystal, to the White House for a beating after bashing the great "O"? hah
McChrystal dissed Oprah?
"Perhaps Orszag is much smarter than people give him credit for: surely his pitchfork avoidance skills will come in very handy when the tide finally turns."
There will be no pitchfork avoidance if and if / when the tide ever turns. Everyone knows this. The danger now is knowing that the battle is lost and that an economic contraction is schedued to set in later this year that they take the economy to a war-time footing by starting a major regional war in the gulf. Then they can blame the fall economic disaster on the high price of oil and terrorists and what not. You err in underestimating the nefarious nature of these beasts. They are quite murderous. View all below them as slaves and vassals to be bought and sold at their leisure. They respect neither God nor man and will have no qualms about starting a regional war.
Peter Orzag was sold as a 'boy genius', who when he was 5-years old would compute cash flow statements from reading corporate reports just for fun.
Germany & Russia, history will repeat.
Think Putin is sitting on his hands watching soaps while Brussels burns?
Russia has resources, Germany has ,well those all too smart, das goote engineers. Germans did not forget who pissed in the punch bowl last time. (Obuma getting ready to be suckerpunched by Germany very soon.)
EU will fall - does China join the Axis this time (in place of japan)??..Southern Europe was not worthy for the last go round..Italy and Spain are much too metro-sexual now. But Iran and Syria seem real butch..so I am sure they are on board.
I hope the DDept and CIA/NSA have gamed this
scenario.
told with some tongue in cheek but who would have thought we would elect a man who may not even be a real citizen??
Son,
You are on the right track but you're confusing the writers with the actors:
"I hope the DDept and CIA/NSA have gamed this"
If what you suggest comes to pass, it will be scripted, edited and produced by said organisations, your very own tax funded federal war gamers.
Wars don't just happen.
"Wars don't just happen"..Sorry to have mislead you with nuance..think COLD WAR & New reserve currency , all the benefits to those in power without too many caskets crowding Dover air base hangers.
the world needs a balance to USA, so the power elites can control the outsiders like Iran..it worked great for many decades ..until Russia screwed the pooch.
Only fear is having an inept lazy CIC and ideologue Administration here in US to screw it up and turn it hot.
There is the "world" and then there is the "US"
How about this for balance?
The US is a pretty isolated empire these days.
Speaking of 'screwing the pooch'.. are you sure the Russians fucked up more than the American Bankster Gangsters?
give the banksters gang bangers a few more trillion and then I will agree..QE 2 will just about do it..and we (USA) will have screwed it beyond belief.
.
"Wars don't just happen."
I agree and I never identified who I was talking about I merely described my belief in how their little black hearts work. The current politicians we call "leaders" are easier to herd than sheep even if they are not of a similar mind. It's just astonishingly nefarious. Makes a total mockery of the enlightnment idea of human progress. Still I think they do it as they are all about retaining their power and this is the only way I see at this point. If they try the internal divisions like black, versus indentured white versus indian versuus slave versus poor but free versus conservative versus liberal versus homosexual or whomever I think it turns against them as the recent theft is too fresh and too obvious to obfuscate. I think they know this. So I think they go back to an us versus them, freedom versus tyranny, versus christianity versus islam versus judiasm versus whomever type approach. Resurrect the message of the old Grim Brother fairy tales and change the names. Good propoganda. Easier to sell in the current circumstance. Even so I still find the depraved indifference to human life and the idea of progress absolutely repellent. I am very saddened. I earnestly hope I am wrong but I know of no historical precident that would indicate that this should be the case. That somehow things will be "different" this time.
O-Meds:
that's definitely the way things are headed. germany and russia will turn european hsitory on it's head, with a new, trade based 'hard' currency thrown into the equation to boot. expect the arab brotherhood to join that team, as well; that's where they sell most of their oil..........................
hangemhigh, China might just be with them as well, every exporting nation holds too many $$
but Putin is working on a way to minimize the pain...some might think it is GOLD.
A gold back reserve currency or more likely a basket of commodity backed (PM's Oil) might fit the bill. Mid East would like it, China less so, Russia a win win (gold and oil)..
Germany has awoken to the fact that Russia has them by the balls with energy. What value does a bankrupt EU/ USA offer Germany?
O-Meds:
i would think that the idea of a german-russian energy/trade merger, with the with the arab oil boys as part of the cartel, would cause a lot of sleepless nights in beijing.
if that were to come to pass, i would expect our good friends in the middle kingdom to co-opt not only the japanese but the south koreans, indonesian and malaysians as well.
the great game prize remains the energy assets in central asia... i would thank that is where most of the pushing and shoving will take place. iran will, of course, be a major player.
as for the home team, they have already squandered lots of critical resources and would seem to have very poor field position and an exceedingly weak bench................
Barry is Slim Pickins in Dr. Strangelove....he is going to auger in! No change of course, straight in!
Yeah, Peter Orzag, life turned out just great for the "boy genius", just like your "brother" Barry....
China wants Germany's consumer market, so expect soon Russia to interrupt its gas exports to Germany.
we know - we all installed wood-pellet burners after the last time they tried it on
What???? China and Russia very rarely agree on anything. They certainly would not waste a nanosecond on such drivel. And by the way China already owns Germany's consumer market. They also supply large amounts of electronic components inside German vehicles and equipment. Germany is key to Russia's export market for oil and gas. They are the main investor in Nord Stream. The Nord and South streams will bypass Ukraine, Georgia and Poland thus putting a stake in the heart of the color revolutions.
What is of particular interest is the total inability to recognize very simple mathmatics.
ie It is simple math as to what would be beneficial to the US economy.
If the main objective is growth...then what is the bottom line ?
The bottom line is the fullfillment of employment and wages via the production of goods and services.
Growth means..."sell more and not less"...
Increases in the size of government simply means a higher tax component of all prices.
Printing money is simple dilution....and thus increases the prices of all goods and services....
.............................................
Money dilution and increasing taxes negate sales.....and thus negate growth....
So...what is the US government doing ? Dilution of money and tax increases....
Just the opposite of what true economic growth requires.
Furthermore....there are no economic rewards for savers...that save money from working via production of goods and services....A zero percent reward imposed by the government is a negative for savings and work.
The ability to work means the ability to save....and make funds available for investment and consumption....
This is a problem created by big bank leverage...
This will not be resolved until the "leverage" issue has been resolved.
Frau Merkel reads NullHecke (ZeroHedge).
Many Germans are still programmed to cherish and adore Barack Hussein Obama much like the Americans do but the star is fading.. fast.
This G20 stint could be interesting game changer. Security is tighter than at Canada's Winter Olympics.
Is Obama scheduled to drive through Toronto in a convertible limo?
Remember, all eyes will be watching...
Germans have a thing for guys who give good speeches.
he'll survive his 4 years, not even the tea party want a socialist martyr to compete with
I do not wish the man any harm. He has a wife and two daughters.
But he WILL NOT survive 4 years politically.
Mark my words.
Not sure if there's a precedent for this in the US history of presidential terms.
Barack Hussein Obama will not finish his term.
I am convinced of that as much as I'm convinced there is going to be a double dip recession (depression).
"Not sure if there's a precedent for this in the US history of presidential terms."
There is but it involves burgling the republicans
How does a man who becomes elected on one platform complete deviate from proposed platform and embrace a 1000% corpratist agenda?
Wanna know why the markets fell after his election? They wanted the President to get in line and support the Fed and the their full backing of taking money from the taxpayers to reinflate their assets. Once they realized he was on board with bailouts and stimulus along with ZIRP forever and gave Bernanke free reign along with Geithner to try to fake a recovery in the stock market via manipulation under the archaic Working Group authority granted by Reagan it was a matter of just that. Autonomy to participate in the stock markets, currency markets in the name of stability.
Why was it that during financial regulation and a quiet President when we had true Glass-Steagall and fed audits on the table did we then out of nowhere see an Enquirer story involving the President and Vera Baker for 1 day only on May 1? Why was there discussion of a tape and then the story rescicnded?
Well the answer is that the primary owner of the Enquirer is a New York finance player and that they reminded the President that at anytime those who control the media control the country. As soon as they had his assurance he would fall back in line the story vanished as if it never existed.
Both this and the flash crash were meant to be threats of blackmail and that is a certainty. This President is no leader and merely a figure head as I have said since I was a teenager no different than the Queen of England. The last president who truly had autonomus control and imposed his policy was John F. Kennedy and we found out what happened when he did not wish to play ball.
Yes, and "THE MOOR" has served his purpose which is why there's no more need for him.
The story of Obama has always reminded me of something you'd read in the tales of 1001 Nights.
Hmmm....Thank you, John McCloy..
(Some things just need to be said, regularily, lest folks forget..)
I think it's Merkel who is making the mistake here and austerity is in fashion now not because of economics but because of political saving face. This strategy will fail.
you owe me a new keyboard..got me laughing so hard..pure gold, pure gold
Glad to provide amusement. I take it you sold 10-year UST in early April when yields were 4%? Drinking the Niall Ferguson koolaid?
That depends on the Chinese. It's not an American call anymore.
The Chinese have been buying the music for years now, they get to call the tune.
Pretty much every economy that matters is advocating budget cuts, smaller deficits and austerity measures. All except the US.
Russia, China, Europe are all pretty solid.
The muslim boogey man card will be played again for a second time. Not sure how much the world outside of the US is going to fall for it this time.
It's confirmed - you really are a fucking ignoramus.
Days like this make me proud being German ;-)
so many open doors for you Germans, lets see which one you choose:
door #1. stick with EU and get raped by the lazy block of welfare queens -S Europe.
door #2. Join Russia, China, and Mid east and run the show in the west.
door #3. listen to Obuma and fall into oblivion of debt and listless economic hell.
The US has Mexico or Canada to work with.
Ameros anyone?
Not Quite. The New US curency will be pegged to the Mexican peso at $new 6 US/ 1 Mp.
"Pesito" anyone?
If everyone doesn't print as much as we do, we start to look pretty screwed up. Merkel refuses to be our co-operating beard, and instead becomes our flamboyant fag hag.
Is it safe to say the markets have STALLED?
Someone noted that there was a huge bid support for S&P at 1110. More so than ever.
So, there's no growth report to the upside. No good news, not even good projections.
Negative sentiment and risk of deflation.
Markets won't move at all either up or down.
How long can this stale mate go on? Are we entering the American version of Japan's lost decade?
We entered it when the decision was made to bail out the banks.
In the age of Globalism, all news is just street theater. All relevant policies have been decided way before we hear about it.
Ooh yeah..
Great show Merkel puts on. The only difference between Merkel and Obama is that Obama has the printer to the reserve currency. Merkel anti Keynes? Dont make me laugh.
Even his top general is mocking him:
http://www.cnn.com/2010/POLITICS/06/22/general.mcchrystal.obama.apology/index.html?hpt=T1
What a disgrace! Any general mocking the Comander in Chief should resign or be fired!
He should resign and say whatever he wants.
The TRUTH is that provers like the military don't get along well with full of shit scam artists like Obama.
Leo, I was just wondering. Do you Canadians have a CIC? and why do you care about a general of ours speaking truth to power?
He knows what the result of those words being printed are, He was sending a message..
Perhaps you Canadians don't do Nuance?
There is a simple rule in the army: "never break the chain of command". He might know what the consequences are, but then why apologize afterward? "Oh, Mr. President, I fucked up, sorry for openly mocking you, your administration and the Vice-President".
Come on, let's get serious. This guy was Special Forces, a Navy Seal who is a top-notch soldier. I expected him to live up to his stellar reputation.
'' I expected him to live up to his stellar reputation.''
He did. I look forward to what he has to say as a civillian.
Leo, this is dysfunction at the 3d degree of separation from the president. If the striped pants and multi-blotch brigades cannot sing from the same hymnal that is the very definition of dysfunctional leadership from the top.
Too funny, Inspector Asset...(with respect..)
The coming G-20, and the accelerating preponderance of them give me cause to think of the mice meeting > 'Who will put the bell on the cat..?'
After massive speculative short selling of Euros and the Euro zone bond complex that was nicely aided and abetted by simultaneous sovereign downgrades, are we to suggest that the Europeans can't or shouldn't fight back?
Merkel is going to be destabilized and she had best prepare for it.
I wonder if the avenue that will be used will be a speculative attack on DB and its counter party/market making operations?