Germany's Fear And Desperation Leak Out

Wolf Richter's picture

Wolf Richter

A hullabaloo erupted between France and Germany that both governments are trying to silence to death. According to unnamed sources of Zeit Online and Reuters, German Finance Minister Wolfgang Schäuble broached an unprecedented topic with the members of Germany’s Council of Economic Experts on Wednesday when they presented their Annual Report. In its 49-year history of advising German governments, the Council has never delved into policy proposals for other countries. And yet, Schäuble asked them: Could they produce a reform concept for the troubled French economy?

The French, who are currently engaged in national soul-searching and navel-gazing to halt their declining “competitiveness,” were not amused. The office of President Francois Hollande wrapped itself in silence. Prime Minister Jean-Marc Ayrault brushed it off. The German Ministry of Finance declined to comment on “unofficial discussions.” Council Chairman Wolfgang Franz backpedalled: “That’s largely misinformation,” he said. “An order for a Special Report is not even in the most distant sight.” He figured that the French government “wouldn’t tolerate something like that.”

Nevertheless, he said, the government is highly interested in reform ideas that would make the monetary union more stable. And it is in this context that the Council would “think about France” in December. After which they would talk again with Schäuble, he said.

But the Council is already “increasingly worried” about the economic developments in France, admitted Council member Lars Feld when he presented the Annual Report to Schäuble. “The largest problem isn’t Greece anymore, or Spain or Italy, but France because France has done nothing to rebuild its competitiveness and is even heading in the opposite direction.” He didn’t mince words. “France needs labor market reforms,” he said. “It is the country among Eurozone countries that works the least each year; so how do you expect any results from that?”

The problems are piling up in France. While central government spending—56% of the economy!—is expected to remain relatively constant and provide some stability, the private sector is deteriorating with breathtaking speed. Every day, new evidence seeps out.

On Friday, it was an Insee poll of CEOs in the manufacturing sector. They’re cutting investments in plant and equipment in the second half. In 2013, they would reduce their investments by an additional 2%—though in the previous poll in July, they’d planned on increasing their investments by 5%. A harsh reversal [one that has been playing out for months; read... Worse than the Infamous Lehman September: France’s Private Sector Gets Kicked off a Cliff].

Then the Bank of France released an estimate for fourth quarter GDP: it would shrink by 0.1%. For the third quarter, it also estimated a decline of 0.1%. If these figures are confirmed, France entered a recession in July. Five quarters in a row of total stagnation, a first in France’s post-war history!

The Germans are concerned. France bought €101 billion of German goods in 2011, or 10% of total exports. But German exports fell 2.5% in September, and exports to the Eurozone crashed 9.1%. Germany has been through this before. Its economy lives and dies by its exports [The Noose Tightens on Germany’s “Success Recipe”].

Schäuble must feel the pressure. But fear of a dip in exports to France might not be enough for him to risk a diplomatic confrontation with his most important neighbor. He certainly wouldn’t want to stir up, without good reason, even more accusations of meddling and Teutonic arrogance. So why this unusual request?

Fear and desperation within the government about a much greater threat. The credit markets, which are currently sleeping through the French private-sector fiasco, might wake up someday—as Greece found out, it can happen suddenly—and demand much higher yields. Even if still digestible for France, it would likely throw Spain over the edge, and Italy would follow. Or the markets might walk away from France entirely.

France is too big to bail out. If the debt crisis suddenly arrived in Paris, only all-out, no-holds-barred, unrestricted bond-buying operations by the ECB could save the euro. But it would violate even the last pretense of treaty-based limitations, and would in the process debase the euro. While this might please some countries, including France, it would enrage German voters who might take out their anger on Chancellor Angela Merkel and her government. And that strikes terror into their hearts.

Alas, she still has big plans. On Wednesday, she addressed the European Parliament, the only democratically elected European institution—by design, an emasculated one. There, she laid out her ideas on how to bring European nations together to where their budgets and other national prerogatives would become part of her “domestic policy.” And she’d be on top of the heap. For that whole debacle, read.... Merkel Has A Dream.

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Zero Govt's picture

Another good fact-filled read, thanks Wolfy

so German politicos are looking at advising French how to run their economy? Hollandes only been in office 10 minutes and he's already flunked the leadership job and looking for outside help!!!

People vote for the national leaders on the understanding they are competent, they can solve problems and they can deliver national prosperity. Isn't that their campaign promises?

Here we are looking like Germans are meddling in France because the French are not up to the job. And ditto Greece whose political class have abjigated their role as the nations leaders, because previous have spent their nation into oblivion (not that they'l be held responsible for any of it), and are looking up to international bodies to save them.

Failing to solve their own national problems, failing to lead and worse passing the buck to bodies the people have not mandated to meddle in their country

It just goes from farce to farce at every level with these snake oil sheisters

ebworthen's picture

IMHO German society still has some collective guilt about what Hitler and the Nazi's did to Europe.

I'm sure many would like to back out and return to the Deutschmark now, but the sense of responsibility over the damages of WWII is mingled with national pride and a desire for self-preservation.

It may make them give too much for too long and back out of the Euro-fiasco much too late.

Orly's picture

Sometimes you make so much sense...

rwe2late's picture


In the MSM parallel universe, AP reports today that the doomsayers are way off the mark (no pun intended):


The worst of Europe's financial crisis appears to be over...

European leaders have taken steps to ease the panic that has plagued the region for three turbulent years. Financial markets are no longer in a state of emergency over Europe's high government debts and weak banks. …

"We are probably well beyond the worst," says Holger Schmieding, chief economist at Berenberg Bank in London. …

Evidence that Europe has turned a corner can be found in countries' falling borrowing costs, rising stock markets and a slow but steady stabilization of the region's banking system

Much of the credit for easing Europe's financial crisis goes to the European Central Bank, which has become more aggressive over the past year under the leadership of Mario Draghi.   





PeaceMonger's picture

The article should be re-titled "Germany's Hope and Excitement Leak Out".


It's only after the big players start to fall that an international crisis can be declared and the new Global e-currency will be implemented.  Economic freedom will be granted or withdrawn at the touch of a button.  How about that for POWER?  

akak's picture

"The end of the decline of the Stock Market will probably not be long, only a few more days at most." - Irving Fisher, Professor of Economics at Yale University, November 14, 1929

"Hysteria has now disappeared from Wall Street."
- The Times of London, November 2, 1929

"Gentleman, you have come sixty days too late. The depression is over."
- Herbert Hoover, responding to a delegation
requesting a public works program
to help speed the recovery, June 1930

"There is nothing in the situation to be disturbed about."
- Secretary of the Treasury Andrew Mellon, Feb 1930

"Unless we are to have a panic -- which no one seriously believes, stocks have hit bottom."
- R. W. McNeal, financial analyst in October 1929

"While the crash only took place six months ago, I am convinced we have now passed through the worst -- and with continued unity of effort we shall rapidly recover."
- Herbert Hoover, President of the United States, May 1, 1930

"[1930 will be] a splendid employment year."
- U.S. Dept. of Labor, New Year's Forecast, December 1929

"The spring of 1930 marks the end of a period of grave concern...American business is steadily coming back to a normal level of prosperity."
- Julius Barnes, head of Hoover's National Business Survey Conference, Mar 16, 1930

"I am convinced that through these measures we have reestablished confidence."
- Herbert Hoover, December 1929

"...there are indications that the severest phase of the recession is over..."
- Harvard Economic Society (HES) Jan 18, 1930


Peter Pan's picture

With the central government accounting for 56% of spending, it s clear that the French are addicted to their set up. Just look at Greece with its bloated government sector. Despite the government agreeing to slash and burn policies they can barely implement most of them and the economy is reeling. Do we honestly expect the French to look at Greece and follow suit?

AnAnonymous's picture

“The largest problem isn’t Greece anymore, or Spain or Italy, but France because France has done nothing to rebuild its competitiveness and is even heading in the opposite direction.” He didn’t mince words. “France needs labor market reforms,” he said. “It is the country among Eurozone countries that works the least each year; so how do you expect any results from that?”

And Greeks are near top or top when counting worked hours.

Great 'american' thinkers, trained years and cant even no longer coin a cogent lie, when they do not state one thing and debunk it in the same breath.

'American' economics is all about consumption. Tough days when overconsumption of the environment is looming its heads at a global scale.

Time to call the NASA and ask about the release outlet: pionneering the space frontier.

akak's picture


Time to call the NASA and ask about the release outlet: pionneering the space frontier.

Mush better to call the Chinese Space Agency and ask them about fostering the Chinese Citizenism cosmonaughty spirit --- "To go where no roadside shitter has gone before".

Notarocketscientist's picture

I thought Spain was too big to bail?   So why should we think France is?


This is all bullshit - if any country including Germany fails - I Guaranfuckingtie you ...  the Fed will ship trillions across the pond to shore them up.


NOTHING - I repeat NOTHING - is too big to bail.   If you don't believe it then remember the Fed is already bailing out the US buying up 61% of all debt issued...

AnAnonymous's picture

The narrative has to be fed.

So now watch how Germany will bail out France.

And ultimately, how Germany will either bail itself out or as a return of favour, will be bailed out by the rest of the EU.

This is an 'american' world and a US world order.

Joebloinvestor's picture

I predict that the breakup of the EU will not happen with Spain, but France.

France is the biggest "smoke and mirror" economy in the EU, backed by the government and secret loans from Ben.

The whole house of cards needs a cyclone hit.

Fuck this fiat fiasco.

Orly's picture

"What happened to the half-trillion dollars, Mr. Chairman?"

ebworthen's picture

France will hang on unto the bitter end.

AnAnonymous's picture

After France, you can try Germany.


First, Greece, Portugal, Italy, Spain, France etc Downfall must be somewhere around the corner.

Repent, the end is near.

machineh's picture

Next time Angela visits Paris, Hollande had better borrow a page from Mussolini and put up some big cardboard factory facades to impress her.

dizzyfingers's picture

November 9, 2012, 7:58 p.m. ET Germany Passes Child-Care Subsidy By HARRIET TORRY

BERLIN—German lawmakers passed legislation that creates a new child-care subsidy and abolishes an unpopular charge on patients for visiting their doctors, providing Chancellor Angela Merkel with a political boost among conservative voters as the country gears up for next year's parliamentary elections.

Beginning in August 2013, parents will be entitled to a monthly supplement of €100 ($128) for each child between the ages of 15 months and three years that is cared for at home rather than in a day-care facility. The payment will rise to €150 a month in 2014. The subsidy will cost taxpayers an estimated €300 million in 2013 and €1.1 billion in 2014.

Critics of the subsidy, including lawmakers from Ms. Merkel's own coalition parties, fear it will discourage women from joining the workforce and encourage immigrant families to keep their children out of German day-care centers, making it harder for them to integrate. Germany's council of independent economic advisers this week criticized spending taxpayer money on the subsidy.

But defeat of the bill would have been a serious blow to Ms. Merkel's government, and in the end lawmakers from her center-right coalition closed ranks to pass the legislation, 310 to 282 on Friday.

The subsidy is largely a political move to appease conservative voters less than a year ahead of the next general election, say analysts, and to shore up Ms. Merkel's rocky relationship with the staunch conservative wing of her Christian Democratic Union party and its sister party, the Christian Social Union of Bavaria.

The CSU proposed the child-care subsidy, saying families should be free to choose between putting their preschool children in day care and keeping them at home. Ms Merkel initially opposed the subsidy, but decided to back it to preserve peace in her party.

The subsidy is all about politics and does little to help families, say critics. They say the money would be better spent on expanding child care and enforcing an already existing law that requires German communities to ensure there is a child-care space for every child that needs one, instead of reinforcing anachronistic family role models.

"The Bavarian CSU has a very bad network of child care and they're now buying themselves freedom," said Barbara Riedmüller, a social-policy professor at Berlin's Free University. "In the CDU, it's important that they foster a conservative family ideal."

That has been a hard sell, particularly to the Free Democrats, Ms. Merkel's coalition partner, who only agreed to back the bill if Ms. Merkel's conservatives agreed to scrap a €10 fee that Germans pay per quarter to visit their local doctor. Emblematic of how unpopular the doctor's fee is, German Parliament passed the bill to scrap the fee unanimously on Friday, a rare show of multiparty unity.

Jack Sheet's picture

Right. The idea is to keep the women in the kitchen (and bedroom) where they belong according to the CDU/CSU, and reduce the prohibitive costs of building new child day-care centers which are crippled by building and zoning regulations.

THE DORK OF CORK's picture


Y1986 Renault Ireland Austerity advert during a mini depression……
A land of 800,000 ~ private mainly mini petrol cars

Y2012 Renault Ireland depression Advert although no bank holiday or inflation (although massive wage deflation (euro / world labour competition in both domestic service industry and external sales markets)
A land of 1,800,000 ~ private cars many of which are 25,000 euro + diesels

If they paid wages in national home markets many people would at least be able to afford a 600cc 2cv……but the banks don’t want that as they can’t make a global labour arbitrage cut from shorter supply lines.


Jack Sheet's picture

The "German Council of Economic Experts" (5 Wirtschaftsweisen) is an overpaid, ineffectual, bumbling, castrated debating club, populated exclusively by academic economists, producing lukewarm, Keynesian, noncommittal kow-towing position papers at 1.7 Mio Euros a year for the German government. If you don't believe this read the last 2 issues (45 and 46) of "Wirtschaftswoche" (German Economics weekly), especially page 40 of the current issue.

Urban Redneck's picture

A staff of 5 vs the the BMF's 700... Perhaps the actual document he claims to be looking for has already been written, and this is just kabuki theater with overpaid, ineffectual, bumbling, castrated, academic human puppets?

news printer's picture

The move is unusual because it was founded 49 years ago, the Council has not yet taken care of the policies of other countries.

nmewn's picture

Man, these european leaders are some pretty smart cookies...we should try and elect leaders just like them so they can copy everything they do and impose it on us for our own good.

Oh...wait ;-)

orangegeek's picture

All Euro markets topped in 2010 and 2011.


The last markets to drop are here in the US.  Here's what the SP500 did this week.



Volaille de Bresse's picture

Since the Prez elections took place we discovered Hollande's TOTALLY disabled mentally speaking. Think W43 or Dan Qualye mentally-disabled (yeah it's that bad)...

Problems are piling up here we got 2 mil ppl living under poverty level and Hollande's obsession is... GAY MARRIAGE. I'm not kidding you.


Plus we discovered that much like Obama Dragi Monti and the rest, Hollande's a banking system whore. He'll do nothing against the banksters.


Hollande's supposed to rule my country till 2017 but methinks he'll be kicked out of office before that.

lolmao500's picture

France has already put the white flags out, not to mention the WELCOME TO OUR GERMAN OVERLORDS signs... just in case.

Derezzed's picture


Pb with France, is not a "reforms concept", they pretty much know what to do, it's just the will to do it, and also the guts to make it happen.

There are way too many forces against any kind of reform in France :

- stubborn unions closer to some kind of mafia than common sense,

- corrupt and krony politicians,

- too much government bureaucracy,

- lazy state of mind,

- ideology prone journalists close to communism,


I have come to the conclusion that it's not 1 man who will change everything, but an event. And looking at the history of my country (R.E.V.O.L.U.T.I.O.N.), that event is not too far out.


Bossuet's picture

Les syndicats, mais nom de dieu heureusement qu'ils existent et de manière très faible qui plus est, malheureusement. Le progrès social ne se fait que dans la confrontation et pas autrement ! Rapports de forces : en dehors de cela point de salut !

Il faut vraiment être le dernier des gogos pour penser que la lutte des classes est out ! Votre modèle est un retour à la fin du XIXième siècle, c'est l'horreur économique.

L'état d'esprit paresseux, dites-vous non mais vous voulez rire ? Hee-haw oui ! Vous voulez peut-être que les braves gens de ce pays alignent leurs salaires sur ceux du Bangladesh. Mais dites-moi mon vieux, avant que des politiques

ultralibérales criminelles viennent tout foutre en l'air, une certaine forme d'utopie (l'accroissement de la productivité le permet) n'était-elle pas de moins travailler pour consacrer son temps à d'autres activités ? comme la littérature, la poésie, la

musique que sais-je encore ? Vous savez toutes ces choses inutiles qui ne vous permettent pas d'acheter le dernier gadget électro-nique à la con ou la grrrrrosse voiture ou la beeeeelle montre et mais qui procurent une qualité de vie humaine

inégalée, elle n'a pas de prix ! Se trouver dans l'impuissance de donner un prix à quelque chose ? Putain, l'horreur absolue ! Je vous rassure, mon point de vue est ultra minoritaire et c'est votre vision qui l'emportera. Alors content ?

Derezzed's picture

Faux totalement faux. Ces syndicats-là : FO, SUD, CGT, etc etc ne représentent personne, si ce n'est qu'eux. Et non ce n'est pas dans la confrontation (st'rile) que se fait le progrès social mais dans la concertation.

A l'instar de l'Allemagne, où la représentation des syndicats chez les salariés est bcp plus légitime.

Maintenant si ça ne rentre pas dans votre tête, alors inutile de discuter avec les gens comme vous qui sont dogmatiques. Le reste de votre post, n'est d'ailleurs qu'insultes, crachats, hurlements, etc etc et vous disqualifie illico.

Oh et vous utilisez le mot ultralibéral sans même comprendre le sens du mot libéral, et dans le seul but de noircir le trait, ce qui vous met hors jeu une fois de plus.

Vous êtes totalement à côté de la plaque !

Bossuet's picture


Quand on écrit ce genre de bêtise : " lazy state of mind", on s'abstient de faire la leçon. Comme insulte ou crachat, difficile de faire "mieux". 

Vous méconnaissez la situation de la France. Confrontation et concertation ? Mais vous êtes d'une grande naïveté, vu la sauvagerie de la concurrence engendrée par cette mondialisation le travailleur (pardonnez le gros mot : travailleur) est réduit à l'état de variable d'ajustement, les salades sur la concertation sont tout à fait risibles. Dogmatisme, mais c'est l'hôpital qui se moque de la charité. Insultes, crachats, hurlements ah bon, où cela ? Hallucinations ? Noircir le trait avec l'idéologie désastreuse qui s'est exercée ces 30 dernières années ? Mais il suffit d'observer la situation de votre pays pour en constater les néfastes conséquences. Néfaste, le mot est faible. Ignorez-vous tout de l'existence de cette révolution ultralibérale ? Incredible ! Libéral ? le mot est une escroquerie intellectuelle.



Orly's picture

The gentleman is correct in what he says.  It is the same here in the US: when the unions are criticised for taking and taking and taking until there is no more to take and everyone suffers because of it, they spew vile invective, call names and stand behind their "rights" as workers, wave their union flag and pump their fists.  Believe me when I say you no longer have "rights" to work.  If there are no jobs, you don't work.  You don't have a "right" to a job that is not there.

You cannot see that you are killing France with your stupidity.  When the people who want to take more and more are given the opportunity to vote for themselves even more and more, they will.  President Hollande.  Yeah, how is that working out for you?

Charles de Gaulle is spinning in his grave with the lunacy that is France today!  His ideas have been taken to the extreme by greedy people who only see themselves and not the greater good of France.

Derezzed's picture

Faux totalement faux. Ces syndicats-là : FO, SUD, CGT, etc etc ne représentent personne, si ce n'est qu'eux. Et non ce n'est pas dans la confrontation (st'rile) que se fait le progrès social mais dans la concertation.

A l'instar de l'Allemagne, où la représentation des syndicats chez les salariés est bcp plus légitime.

Maintenant si ça ne rentre pas dans votre tête, alors inutile de discuter avec les gens comme vous qui sont dogmatiques. Le reste de votre post, n'est d'ailleurs qu'insultes, crachats, hurlements, etc etc et vous disqualifie illico.

Oh et vous utilisez le mot ultralibéral sans même comprendre le sens du mot libéral, et dans le seul but de noircir le trait, ce qui vous met hors jeu une fois de plus.

Vous êtes totalement à côté de la plaque !

Orly's picture

If you seriously think that your precious union is doing the most for the collective, then you are a fool.  Unions don't work for a better collective like they did in the old days.  Unions work for themselves; extorting governments to pay them more money, with more time off and more and more benefits that the average person doesn't have.

Unions brought down General Motors and Chrysler Corporation in the US because they were greedy!  Think of making 45 euros every hour to put lug-nuts on a wheel!  It's absurd!  Oh, it must be my break time.

Sorry but you're just uninformed if you believe that unions are better for everyone because they are not.  They make your products ridiculously expensive and put onerous regulation in the face of government.  If every union dropped off the planet, that would be okay.

This is no longer the nineteenth century with child-labour in dangerous and often fatal working conditions.  Unions have long out-lived their usefulness and should be abolished.

All this is on your part is pure, unadulterated greed.  And when your cush job runs out, don't come crying to us becaue we won't have anything to give you.

Bossuet's picture


Je parle de rapports de forces, comprenez-vous cela ? La manière et les conditions dont ils sont analysés, c'est affaire d'angle idéologique, le vôtre est aisément reconnaissable. Cupidité, mais la cupidité et la convoitise sont les moteurs du Kapitalisme.(et vlan, une porte défoncée ! expression française) Epargnez-moi votre argument ringard des syndicats qui travaillent pour eux-mêmes. Extorquer ? La belle affaire, qu'en est-il d'une juste répartition des richesses produites par le travail ? Lois, réglementations mais c'est le propre d'un système évolué, d'une vraie démocratie, de celle qui protège le faible contre le puissant. Au fait, qu'en est-il de toute cette dérégulation engendrée par votre révolution ultralibérale ? Ne vivons-nous pas les conséquences de ces politiques iniques ? " If every union dropped off the planet, that would be okay." Ben voyons, vous avez trouvé les vrais responsables, hahaha ! Quant aux conditions de travail que vous décrivez, mais c'est à pleurer d'ignorance, de cette ignorance confortable. Je n'attends rien de vous, merci. Une dernière question : combien de bons alimentaires chez vous ? Salutations.


Orly's picture

"Extorquer ? La belle affaire, qu'en est-il d'une juste répartition des richesses produites par le travail ? Lois, réglementations mais c'est le propre d'un système évolué, d'une vraie démocratie, de celle qui protège le faible contre le puissant."

Oh, okay, Karl.  I got it.  Say hello to Friedrich for me.

donsluck's picture

"Unions have long out-lived their usefulness"

If you add corporations, I would agree. But the destruction of unions without the destruction of corporations (ie their loss of person status) will result in no counter balance to the power of the corporation. Workers who lambast unions are shooting themselves in the foot.

On another note, since one of the problems is lack of jobs, why in the world would France want to extend the workweek? In fact, I think everyone should be working less to provide more jobs and a better life style. The consequence of ever increasing efficiency must be less work, or else we are saddled with excess production, who's only solution is war.

Urban Redneck's picture

Just give me some free iCrap and CC: the bigs banks with the payment will you already... That IS the new social progress, but HOW did a such a group of people who love sit around and talk every idea and possible solution to death before ever acting ever arrive at this sad state of affairs?

trop d'annees depuis je le parlait bien

hawk nation's picture

Isnt France the political system our politicians aspire to emulate?

MFLTucson's picture

Hope France collapses under the dirt bag they elected.

TeddyBear's picture



? central planning ?

CNBC want's it for EU.

Seems like we tried central planning before, Commie style.

The world is now rushing to central planning via Msft, goog, Ge, Big banks, buying small Co's. 

Heck, the GOP even wants central planning for women and their doctors.

:)# As the test pilot climbs out of the experimental aircraft , having torn off the wings and tail in the crash landing, the crash truck arrives; the rescuer sees a bloodied pilot and asks, "What happened?" The pilot's reply: "I don 't know, I just got here myself!" :)

Everybodys All American's picture

central planning ?

Obama want's it for us. in fact he is institutionalizing it with the ACA.

EnslavethechildrenforBen's picture

Our founding fathers were adverse to central planning, and saw that the Redcoats were not there "to protect and serve", so they shot them dead.


now THAT'S Independance

THE DORK OF CORK's picture


De Gaulle is spinning in his grave………..

Time to go back to the Franc me thinks.


Once the UK and france internalise their domestic demand and capital flows the german model of overcapacity in the Rhine /Rhur Industrial heartland is cooked.



UK trade deficit in goods is down somewhat for the third quarter (record in Q2)
2012 £
Q1 : -25,415
Q2 : -28,059
Q3 : -25,443

However its oil balance just keeps on getting worse
2012 £
Q1 : – 3,092
Q2 : – 3,544
Q3 : – 3,750
However it 2011 Q3 was even worse at – 3,835 so we could be looking at some seasonal factors.

Again the UKs trade balance with Germany is striking in comparison to France.
Q3 real goods trade deficit £
Germany : – 5,846 (which could be a record high , must check)
France : + 90

the China deficit is almost as big (also showing signs of weakness) although there is less overall trade between those two countries
China : – 5,503

I have heard people on MMT sites claim this trade deficit is only a few % of overall GDP but they are confusing stocks and flows which perhaps the more sophisticated MMTers don’t do.

For example  90% of cars might have a lifespan of 12 years or so……….
So lets say 2 or 3 % of GDP * 12…………(although you must subtract depreciation)

As I said the UK is using its sov nature within the EU construct to buy real goods while it still can.
People in the UK & indeed Ireland are buying expensive diesel cars that in the case of Mercs will last 20 + years.

The UK was the only growing large car market this year and this month.
Why is that ?

Including 32,427 C class Mercs
38,102 BMW 3s

nearly 18,000 more then all the Ellesmere Astras bought this year……….

Are these functional national economies with rational trade patterns ?

Get it while you can………………………..

UK German goods imports in Y2011 : £50,457 million

EnslavethechildrenforBen's picture

Diverting the freshly printed paper from the Politicians & Bankers to the people would right the ship.

But we wouldn't want to do that now

would we?

there is no peaceful solution, if we don't stop them by force they will steal everything from us