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Germany 4 - 0 USA In The Economic World Cup

Tyler Durden's picture




 

UPDATE: FIFA bites back and bans Uruguay's Luis Suarez for 4 months

As 12ET rolls around and USA's soccer team prepares to engage zee Germans with the goal of advancing to the FIFA World Cup's knockout stage, Bloomberg undertook an 'economic' face off to see just how the two powerhouse nations stack up. The result - a 4-0 win for Germany does not bode well for the soccer...

 

Read more here at Bloomberg Briefs

 

Stage 1: Economic Growth (Germany wins on reality vs hope)

German gross domestic product grew 2.3 percent in the first quarter. That compares with a 2.9 percent contraction for the U.S. economy, which was revised down yesterday from a 1 percent drop. [clear win for Germany]

Economists surveyed by Bloomberg ahead of the revision forecast a rebound for the second quarter, with GDP growth of 3.5 percent. Germany's expansion is predicted to slow to 1.8 percent. [USA marginal win on 'hope']

 

Stage 2: Jobs (Germany wins)

Germany's jobless rate has fallen to 5.2 percent from 8 percent in June 2009, according to Eurostat. The labor-force participation rate has risen to 81.38 percent from 80.71 percent in the same period, OECD data show. [clear win for Germany]

The U.S. unemployment rate is 6.3 percent, down from 10 percent in October 2009. Participation has fallen to 62.8 percent from 65 percent in the same period, according to the Bureau of Labor Statistics. Using comparable OECD measures of participation, the spread between the German and U.S. figures is almost 17 percentage points, compared with less than 14 before the global financial crisis. [win for Germany]

 

Stage 3: Current Account (Germany wins)

Germany's current account surplus was 7.5 percent of GDP in the first quarter, driven by a trade surplus of 17.4 billion euros in April. That compares with a current-account deficit of more than 2 percent for the U.S. Some European Union leaders have urged Germany to reduce its trade imbalance to help spur growth in the region. Still, the Kiel-based IfW Institute predicted on June 12 that foreign trade will contribute little to Germany's expansion in 2014 and 2015. Instead, growth will be driven mostly by corporate investments and consumer spending, IfW said. [Germany win]

 

Stage 4: Costs of Funding (Germany wins)

U.S. Treasury 10-year yields are the highest relative to comparable German bunds in almost 15 years, as Federal Reserve and European Central Bank policies diverge. The Fed's bond-buying program is on pace to end later this year, while the ECB announced on June 5 it would "intensify" preparations to purchase asset-backed securities. [Germany clear win]

Read more here at Bloomberg Briefs

Goldman Sachs predicts the game to be a 2-1 win for Germany.

On the bright side - FIFA banned Luis Suarze for 4 months...

 

 

 

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Thu, 06/26/2014 - 10:18 | 4897571 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Ban him for 4 years! Bunch of whimps.

Thu, 06/26/2014 - 10:20 | 4897592 Hippocratic Oaf
Hippocratic Oaf's picture

Germany wins without manipulation.

Put the real USSA numbers up there and it's a blowout!

Thu, 06/26/2014 - 10:24 | 4897603 lordylord
lordylord's picture

What does the "winner" of this competition get?  A slightly less destructive economic collapse?  Sorry, but if it is going to shit, let it ALL go to shit.  Hopefully people will see that government was the problem all along and we can finally rebuild.

Thu, 06/26/2014 - 10:34 | 4897646 Haus-Targaryen
Haus-Targaryen's picture

Sure, both will go to shit, but the key difference;

In Germany -- "God damnit, all our money is gone.  Grandma what do we do?  'Take a vacation, and things will be back up and running in a week.'" 

In the USSA -- See, Los Angeles post Rodney King, or New Orleans in August of 2005. 

Thu, 06/26/2014 - 10:35 | 4897655 SumTing Wong
SumTing Wong's picture

But the U.S. does have one thing...possession of German gold. Now who is the winner, bitchez???

Sure, we'll get it back to you...about the third of NEVER! Not that this is a proper thing, but it needs to be accounted for in the economic situations.

Thu, 06/26/2014 - 10:38 | 4897667 Haus-Targaryen
Haus-Targaryen's picture

Germany does in fact have over half of its total reserves domestically in FFM, which is way more than what it is sitting at Ft. Knox and the NYF (which is zero).

Thu, 06/26/2014 - 11:35 | 4897952 Börjesson
Börjesson's picture

No, it doesn't. The aim of this current drive to (try to) bring home some gold from the US and other places is to reach that halfway line. So once this drive is completed (in 2020 or never, depending on who you ask), then Germany will have half its gold stored domestically. Until then, it's less than half.

Thu, 06/26/2014 - 11:33 | 4897939 JRobby
JRobby's picture

Bring back Rollerball

Thu, 06/26/2014 - 10:27 | 4897613 Freddie
Freddie's picture

USA is a feral Obama county with drooling idiots watching TV and Hollywood like retards.  The US Military is best known for sellout traitor coward midgets like General Betrayus. 

The greatest generals were totally involved in using tanks against Americans in the bonus army.  F Ike, Patton, MacArthur.

Soccer/Football/World Cup = bread and circuses for idiots.

Thu, 06/26/2014 - 10:28 | 4897625 Oldwood
Oldwood's picture

Is it manipulation if you are loaning money to your customers to make purchases? Admittedly, if they can do this by lending from real savings and assets rather than through debt, it is far better than how America is doing it, but do we know this? Where is the capital that the Germans are using to finance consumer debt in the rest of the world coming from? I have little doubt we could get our unemployment rate super low if we simply printed the money to employ everyone to carry Barry's golf bags, but I don't think it would be sustainable.

Thu, 06/26/2014 - 11:16 | 4897829 kellycriterion
kellycriterion's picture

Where is the capital? Humans.

Thu, 06/26/2014 - 11:38 | 4897962 asking4it2k
asking4it2k's picture

Eventually the Republican party will die off and we will have a political system like Germany has with center left, and far left wing parties with a very small right wing (GOP)

In about 2020 the US political gridlock will cease with Democratic super majority in congress and Hillary as President. Once that happens things can get done to help the people and USA will adopt similar economic policies as Germany. We will have lots of unions again, high taxes on the rich, universal health care, and import tariffs to protect our manufacturing industries. Then we will see a healthy economy again.

The GOP will fade away like the whig party did and USA will see progress and real growth. That my prediction.

 

Thu, 06/26/2014 - 11:51 | 4898035 25or6to4
25or6to4's picture

@asking4it2k
Your post is missing the sarc tag.

Thu, 06/26/2014 - 11:31 | 4897920 Crtrvlt
Crtrvlt's picture

right because the entire Euro project isn't one big farce

Thu, 06/26/2014 - 10:41 | 4897595 PartysOver
PartysOver's picture

Ah geeze.  Now Merkel is going to biatch slap Obama.   How the mighty have imploded.  Stand aside Putin, Merkel's turn.

Thu, 06/26/2014 - 10:19 | 4897578 madbraz
madbraz's picture

Ban the NY FED for a week and it's over!

Thu, 06/26/2014 - 10:20 | 4897585 prains
prains's picture

mmmmmmmm, Zombies

Thu, 06/26/2014 - 10:20 | 4897587 BadDog
BadDog's picture

German gold = gone

Thu, 06/26/2014 - 10:21 | 4897597 Big Corked Boots
Big Corked Boots's picture

Eaten by the Fed.

Thu, 06/26/2014 - 10:22 | 4897602 blabam
blabam's picture

4 - 1

Thu, 06/26/2014 - 11:00 | 4897754 Jorgen
Jorgen's picture

3-0

Thu, 06/26/2014 - 10:29 | 4897631 buzzsaw99
buzzsaw99's picture

the usa will steal their gold (again)

Thu, 06/26/2014 - 10:29 | 4897598 Captain Planet
Captain Planet's picture

Auf geht's Deutschland shiesst ein Tor (nimmt ihr gold zurueck)! (ergh, strike-through function not working.....you get the point)

Can't wait to see zee Ameri-cans learn a thing or two about german efficiency. 

2-0 Deutschland

Thu, 06/26/2014 - 10:23 | 4897609 youngman
youngman's picture

Its going to be a tough game for the USA...maybe they can play out of their heads....we will see soon

Thu, 06/26/2014 - 10:39 | 4897674 Jlasoon
Jlasoon's picture

The monsoon like whether should make this game pretty entertaining. 

Thu, 06/26/2014 - 10:28 | 4897623 NoWayJose
NoWayJose's picture

Germany kept all its high value manufacturing jobs and companies in Germany, while the US exported both to China by using its tax code to force jobs and factories overseas, and even sold or gave the high value technological knowhow to China. In turn, China steals the technology and builds its own knock off factories undercutting even the US companies that located factories in China.

Thu, 06/26/2014 - 10:42 | 4897692 Oh regional Indian
Oh regional Indian's picture

It's an inverse fractal mind fuck of the lead up to WWII, only in slow motion.

Axis, Allies, Evil, North Korea, Iran, Mumbo Jombo AL Alweed fricking FSA, good guys, war fighter (WTF????)....

USA is falling over in slow motion, like they show the Statue of Liberty crumble in all those end of the world hollywood mind fuckilms.

Ordo ab chao....no doubt. The bird's eye view is the preferred one in these times...

ori

Thu, 06/26/2014 - 11:30 | 4897914 asking4it2k
asking4it2k's picture

Funny how Republicans in the USA lie all the time and say "unions and regulations are bad". Yet Germany has tons of unions and regulations are our kicking our butt.

Germany also has a VAT tax on foreign imported goods to protect their manufacturing industries. USA needs to do that but the insane GOP block it.

Thu, 06/26/2014 - 10:29 | 4897628 maneco
maneco's picture

What does the giant squid know about football?

Thu, 06/26/2014 - 11:35 | 4897946 Doom and Dust
Doom and Dust's picture

Well last time there was this octopus called Paul...

Thu, 06/26/2014 - 10:29 | 4897633 firstdivision
firstdivision's picture

Hey Germany, how's your gold doing in "capable hands"?

Thu, 06/26/2014 - 10:31 | 4897637 NoWayJose
NoWayJose's picture

Everything is manipulated, even the World Cup. Yellen has made it rain in Brazil just to improve the chances for the US team. As long as the US team is still alive, they distract people from the economic news.

Thu, 06/26/2014 - 11:38 | 4897966 Doom and Dust
Doom and Dust's picture

Yeah I think I just spotted her helicopter

Thu, 06/26/2014 - 10:38 | 4897673 The Reich
The Reich's picture

Living in a still US-occupied country (aka Germany), will they nuke us if we win this match?

Thu, 06/26/2014 - 10:40 | 4897680 Haus-Targaryen
Haus-Targaryen's picture

I imagine the USA will be more pre-occupied with its 160 million gun owners than the BRD.

Thu, 06/26/2014 - 11:59 | 4898075 25or6to4
25or6to4's picture

@The Reich
What is the relationship between your handle and what appears to be the Norwegwan flag? Just curious.

Thu, 06/26/2014 - 10:50 | 4897721 syntaxterror
syntaxterror's picture

But we gots an african president! And gay too!

Thu, 06/26/2014 - 10:52 | 4897731 Oldwood
Oldwood's picture

Yes, it IS the brave new world.

Thu, 06/26/2014 - 10:52 | 4897728 edifice
edifice's picture

The actual game will reflect this score, as well.

Thu, 06/26/2014 - 11:08 | 4897795 Kirk2NCC1701
Kirk2NCC1701's picture

What Germany is doing doesn't sound Kosher to me.

Thu, 06/26/2014 - 11:12 | 4897812 venturen
venturen's picture

What the hell do Washington and Wall Street care...we have more billionaires and that is the point!!!

Thu, 06/26/2014 - 11:26 | 4897881 asking4it2k
asking4it2k's picture

Lets not forget Germany's constiution was helped written by the Democratic Harry Truman Administration after WWII. Germany basically got the New Deal on steroids. We helped Germany get everything that USA wanted but Republicans would block.

 

So today Germany has tons unions, high taxes on the wealthy, balanced budgets, and most importantly PROTECTIONIST TRADE POLICIES !!!

GERMANY PROTECTS THEIR INDUSTRIES WITH A VAT TAX ON FOREIGN IMPORTS !!!

 

Thats why they are doing better than USA. So all the Republican lies about unions and protectionism being bad is FALSE.

Thu, 06/26/2014 - 11:31 | 4897926 prymythirdeye
prymythirdeye's picture

Republicans bad, Democrats good!  Right, left, red, blue....keep chasing your tail askingblahblah.  They're all on the same team, PERIOD, PERIOD, PERIOD.

Thu, 06/26/2014 - 12:05 | 4898106 25or6to4
25or6to4's picture

@asking4it2k
Yes, yes. Please in your next post educate all of us here at ZH how the New Deal and WWll ended the Great Depression. I'll be waiting with bated breath.

Thu, 06/26/2014 - 12:27 | 4898182 Emergency Ward
Emergency Ward's picture

The current War State gang of "fearless leaders" is trying its best to ignite an "economy-boosting" 21st-Century version of WW "X" ...

Thu, 06/26/2014 - 12:15 | 4898145 Emergency Ward
Emergency Ward's picture

Your Harry Truman nuked and carpet-bombed hundreds of thousands of civilians, so he's a good example to follow when it comes to economic policy.  The dead cannot laugh.

Thu, 06/26/2014 - 11:31 | 4897927 smacker
smacker's picture

Suarez is a VAMPIRE.

Thu, 06/26/2014 - 12:10 | 4898133 Sorry_about_Dresden
Sorry_about_Dresden's picture

Eaten by the BIS then regurgitated to feed the FED.

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