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Can Germany Carry Europe’s Weight In The Next Financial Crisis?
Submitted by Erico Tavares of Sinclair & Co.
Can Germany Carry Europe’s Weight in the Next Financial Crisis?
Within the European economic context Germany has been a star performer in recent years, outgrowing in GDP terms its Eurozone peer group as a whole in all but one year since 2006 (complete with a magnificent football/soccer team). This was quite a reversal of fortune from the ten years prior, when Germany consistently lagged in wealth creation.
Together with its size and unwavering historical commitment to the EU project, this has created the expectation in political and even financial circles that if Europe faces another major economic crisis Germany will have no choice but to support the most vulnerable member states, possibly even relenting to the mutualisation of the Eurozone's debts.
While this is a very complex topic, the following graph puts the odds in favor of one outcome: the next time push comes to shove in a big way, Germany will likely say NEIN!
Evolution of Government Debt-to-GDP in Selected European Countries
(Source: EuroStat)
(a) Simple average of the Netherlands, Denmark, Finland and Sweden.
Several notable facts stand out from this graph:
Since 1995, Germany’s government debt-to-GDP ratio increased by almost 50% from trough to peak. This increase is particularly evident when compared to Germany’s Northern European peers (the EU Nordic countries plus the Netherlands, also traditionally fiscally-prudent exporters) and even its much smaller and historically more indebted German-speaking neighbor, Austria.
The reunification is undoubtedly a major reason behind this increase... This is a major political, not economics, project but the financial ramifications are quite significant. While we could not find official figures of how much has been paid to date to shore up the eastern half of the country (probably because this is a sensitive political topic), some think tanks estimate somewhere in the vicinity of €1.5-2 trillion. This is a very large figure indeed, easily exceeding half of current GDP levels.
… and is still costing a lot of money. Twenty years on, an estimated €70-90 billion a year are still flowing east through various support mechanisms, including the renewed Solidarity Pact that is projected to last until 2019. West German politicians clearly underestimated how much the reunification would cost. How can we tell? In 1992, as part of the Maastricht Treaty Germany agreed (and most likely pushed) to have a 60% government debt-to-GDP limit on all EU member states (they were at 42% then); but then it took them just six years to breach that level, despite a relatively benign economic environment throughout the 1990s. Oops.
What about the banks? Contingent government liabilities, including exposure to potential financial sector losses, are not included in this graph. As will be outlined in a forthcoming article, prior bank stress tests and rating agency notes suggest that European banks could need help yet again in case of another financial crisis. This could throw another wrench at government finances across the board.
And what’s going on in France? French politicians did not have to worry about funding a massive reunification effort, but that did not stop them from keeping pace with Germany’s debt increases as percentage of GDP. And from 2009 they finally got ahead and never looked back... Allez les Bleus (Go Blues)! While we speculate that expensive social programs and lenient working hours may have something to do with it, for whatever reason France’s fiscal policy looks truly extravagant compared to all other countries in this graph.
***
Where does this leave us? German taxpayers are still coping with the reunification and a national debt that is much higher than they ever expected. So while many European politicians continue to push for more “solidarity”, Germany is in short supply of financial resources, let alone political will, to bail out other member states.
And France, Italy or Spain, which together with Germany account for 55%+ of the EU’s GDP, are in a worse position - nobody saved for a rainy day. And many states across the EU are still reeling from the last financial crisis.
If global growth picks up considerably from here, a lot of these issues could be postponed or even fall away. But it’s the scenario where it does not that concerns us.
Anything could happen then, including politicians throwing all remaining caution and financial orthodoxy to the wind. After all, Germany pushed its leverage up a full 17 percentage points from an already stretched level in response to the recent financial crises – making the prospect of going back to the 60% debt level unattainable in a decade, if not much longer. France, Germany’s big partner in the EU project, already seems to be going down that path with gusto.
However, at some point this policy could have unpredictable consequences, especially if financing costs in certain states begin spiraling out of control. Central banks can continue to provide liquidity and – to a measured degree – hold interest rates down to ease the debt burden, but they can’t restore solvency on their own. Social and pension programs, economic growth, the ability to backstop the financial system and even cohesion within Europe could all suffer as a result.
All this makes us wonder: does Europe have a credible Plan B in case Germany does not show up with the goods next time around? European bank depositors should be very concerned, and indeed everyone else for that matter.
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It is a stupid question.
Countries do not create and distribute money. bankers do. Bankers decide which countries will have lots of money and which countries will have little money.
Bankers decide who gets to keep their gold.....and who doesn't.
Can we really trust Germany with gold?
new GetZeeGold,
Is this a serious question?
If Germany were smart, they would tell the EU to go fuck themselves and align with the BRICS countries...
More importantly, if Italy, Spain, Greece, Portugal, Ireland and central European countries were smart they would tell the ECB to pound sand, join the new BRICS block and leave Germany, France, Belgium, the Netherlands, England (yes I know not a full member) and the Nordic countries to discuss old times and their common interests.
It really boils down to one critical question:
Was the EU created to benefit the member states, or to control them.
If the latter, and if Germany is given the trophe to lead, as in the World Cup, then YES.
Welcome to the NWO.
I think even Greece spends 3.4% of GDP on Nato and war equipment, whereas the German taxpayers spend only 1,1% .... give and take they got to do smt more than the rest ... i understand the importance of Frankfurt though ...
Der Fuhrer's answer:
http://www.youtube.com/watch?v=1MLry6Cn_D4
Sieg Heil Mein Fuhrer
old naughty,
Germany is the Emperor of EU. Where do you think Germany export its surpluses?
Keyser,
By Dubaibanker: There ARE no BRIC’s. There's only China.
The EU is dragging Germany down and now with the new sanctions the EU wants to impose on Russia, it places Germany in a sensitive place as they have over 2000 companies doing business in Russia, not even mentioning that 40% of the oil and 30% of their natural gas supplies come from Russia... German exports will not change if they abandon the EU as Germany has proven they are a manufacturing powerhouse and leads all of the EU economically... If I were the strongest player in the block I would not want my neighbors dragging me down...
You might not want your neighbors dragging you down, but like the strongest businesses in Detroit during the last 30 years you might have no choice. The strongest in Detroit moved. Can Germany move out of Europe? I think not.
The NWO agenda is border-less with single controlling body.
You think they talk who's who? No, they say fuck EU, etc.
Name is given to be pointing fingers at, BRICS, G20, they are of no importance.
If they succeed in narrowing the world down to three regions, next up will be the number reduction. And then humans will be "transformed".
Remember: "Resistancwe is futile"?
Time to WTFup.
"Was the EU created to benefit the member states, or to control them" - first, it's countries, not states. second, it's the countries that control the EU. third, regarding benefits... what are the options? go full "free trade"? no, thanks
What's the difference between a country and a state?
are you really advocating the BRICS bloc as an alternative to the Eurozone ? Brics : 4 continents, 5 currencies, no common history or culture, hundreds of languages... Hardly a bloc. What unites the Brics seems to be their ( maybe not unjustified ) resentment versus US and EU. And you want Southern Europe and Ireland to join that 'bloc'. Funny perspective.
Why does it matter when it'll be the same scam, only with a different frontend?
All hail our banker overlords.
Because the BRICS are not controlled by the Rothschilds and their network of central bankers... Are you really that dense?
I wouldn't be so sure...
Just like when someone tells you 100 years ago the Fed...etc
Check out the story (his-story?) Five in 1913 Austria...
Hint: Did Karl Marx "invented" communism or invented for him? Who funded the key people to go "study" in France (of all places?) before CCP was established...and so on.
And who first coined BRIC / BRICS ?
What can be seen is temporal (fill in the rest yourself).
The invincible hand is stirring persistantly.
Because the BRICS are not controlled by the Rothschilds and their network of central bank... Are you really that dense?
they are only controlled with somethng less advanced and less civilized
Don't underestimate the Rothschilds. They have a HUGE investment, and consequently amount of control, in the BRICS.
I do not know how big the group is that you designate by "The Rotshilds", but somehow I suspect ( do not know ) you could be in for a nice surprise as far the links between the financial elites of Brazil, South Africa , India and the Western financial elites are concerned. Russia and China might be another matter, but I simply do not know.
All the central banks of the Brics seem to be members of the Bank of international settlements ( BIS ).
http://en.wikipedia.org/wiki/Bank_for_International_Settlements
we are advocating joining so called free trade blocks only because we have no free trade
You forgot to mention nearly 40% of the world population in 5 countries as well.
sure, but a few billion people does not mean a few billion united people
Not necessarily!
The principles of control of the masses are just as true in the BRICS as they are in the western would. Those principles are being USED RIGHT NOW to unite billions of people to do the bidding of their masters that control the earth's media empires. This is the reason large media empires (without any serious competition) are so valuable.
If you, and all your fellow citizens, are locked up in a concentration camp -- and our current system of "nations" are really just large concentration camps -- and continuously fed a dogma of propaganda, you will eventually be trained to do the bidding of the propagandists. If you're part of the small minority that can't be trained, you can be culled instead.
"If we understand the mechanism and motives of the group mind, it is possible to control and regiment the masses according to our will without them knowing it." -- Edward Bernays
yeah, the value of media empires is mind boggling indeed. Murdoch offered 80 billion USD for Time Warner wtf..and still not enough ?
Considering what these media empires have accomplished for their owners, it's fair to say they're "priceless".
How much is the position "Emperor of Earth, Winner Take All" worth?
Murdoch and his ilk, as the enablers and co-conspirators of the deaths and enslavement of billions of humans, are guilty of crimes against humanity. They are terrorists. Their lies are similar to the liar -- but MUCH WORSE -- that stands up in a crowded theatre and yells "fire" solely to stampede the people and watch them die.
If we or our descendants are to have any freedom left, these giant media empires MUST BE BROKEN UP and the toxic, radioactive pieces buried forever.
What you write does not really resonate with me.
I have some humble advice for you : Moderation in all things, not least in your judgements about others.
But then again, there is so much I do not know, and you are probably just be probing me.
GetZeeGold, Is this a serious question?
Dunno......do you think it's a serious question?
they won't. they can't. They are far douche bank has the largest derivitives exposure of any bank in the world. Interest rates move too far, too fast, they are wiped out, insolvent(i would call them insolvent now, so the illusion of their solvency is wiped out). Why do you think they have been so quiet about getting their gold back? because they have to choice, and the bankers have them by the balls. Unless they are willing to let douche bank fail, they will do whatever they are told
Makes sense until you realize that db can simply leverage its derivatives to buy whatever gold reserves they want to rebuild.
In fact, given the low price of gold, it's surprising that more countries aren't doing that. I suppose that the Fed is seeing to it that this does not happen, they are somehow preventing a gold run. For now.
They already are in secret negotiations with BRICS. But, damnit, who is going to run the BRICS Central Bank? My guess is, just another member of the banking tribe.
they want, but they can't.
structural prisonner.. any move out of the sideway and EU bus ready to smash
in the text it has never been predicted that a country could leave EU...
very significant.
When do Hans and Franz shrug?
Can we really trust Germany with gold?
Redundant question as they'll never get theirs back from the Fed.
Notsobadwlad,
Thanks!
Next?
Maybe, but bankers alone can not give that money some value.
I see.
What are the other steps required, other than setting commodity prices through control of the markets, setting foreign exchange rates with each other and purchasing the laws they want, including monopoly status for their currency?
just printing money does not give money value. Commodities need to be mined/produced, roads build, inventions invented, wars fought ( to back a petrocurrency for example in case of the US ), the public (mis)led ... Go off and be a banker in.. let's say Malawi. Are you gonna make it the country with most money/wealth soon ?
To understand what is going on, one has to understand that the vast majority of bankers are tied together through a network that is tied in each country to their central bank and then the majority of the central banks to the Bank of International Settlements (BIS). The banks will be the central control system should there ever be a global empire and one global currency.
Independent country banks are not allowed. Iraq, Afghanistan, the Sudan, Libya, North Korea, Syria, Venezuela, Cuba and Iran all have (or had) independent central banks and so they were or are targets of aggression. When the west invaded Libya (a country that had the highest standard of living in Africa and was organizing an independent African union) a BIS tied central bank was set up in Benghazi before Gaddafi was dead or Tripoli had been conquered. Iraq and Afghanistan now also have BIS tied central banks. (Watch ISIL and see what happens with the Iraqi central bank. This will be a big clue into who is really behind ISIL... my guess is that this is an attempt to end-run Assad and his control of his own money system)
You talk about mining, etc. Banks decide which projects/inventions are funded, which governments get money for wars and the rules/covenants under which they will be funded. Those who go along get funded and get rich and those who do not get destroyed or swallowed up. Banks also determine price for commodities.
ok good point as far as funding decisions are concerned, these give banks a lot of power indeed.
However, I believe some banks are under a ( quasi-) obligation to buy governement bonds ( or at least in an impossibility not do so as not doing so would be to their own detriment ) The banking world and governements are really hand in glove, the political world and banking world need each other, a collusion between bankers and politicians if you like. So I do find that the very common idea here on zerohedge that bankers rule the world needs a bit of pushback. E.g. World War three starts : is Lloyd Blankfein or Jamie Dimon going to address the American public ? I do not think so. They will desperately need politicians to do that, and that gives these politicians tremendous power as well.
"Independent country banks are not allowed"
Where does China fit in here ?
Lloyd Blankfein and Jamie Dimon already OWN plenty of politicians. They don't "desperately need politicians" anymore. They have been investing (and still are) at a huge rate to keep their empires intact (and to stay out of jail for all the felonies they've committed).
I do not believe that "own" is a fair characterization of the power dynamics at play between bankers and top politicians. They need each other really. I do agree bankers have way more power than the public at large is aware of. And maybe many people are just waking up to that fact and in that process they are exagerating a bit ( as you are ). Bankers are not all powerfull in my opinion. The world is a bit more complex. But if you really believe otherwise, I would say you have lost hope, or are being megalomanic ( if you are a banker yourself ). Pick your poison.
The history of the 20th Century and the current Anglo-American political administration suggest the banking families have consolidated their control of the political process in America, and the rest of the world too, due to Anglo-America's domination of the world economy and the military domination to back it up.
Yep, I've lost hope.
Douche Bank detonates and we'll be asking moar serious questions
First, there is no Plan B. For the past 25 years, countries across the world have been pillaged by their rulers. Russia had its Yeltsin, who gave away state owned industries to economic autocrats, Mexico under the Salinas brothers let druglords run wild and privatised TelMex, letting Carlos Slim buy it for no money down. In the USA, Clinton had NAFTA and allowed massive outsorcing in general, wiping out the country's industrial heartland in the process. This government sanctioned looting on an international scale is the reason we have so many multi-billionaires now. Even Mao's grand daughter is now worth $500 million. As the U.S. middle class was wiped out by excessive taxation, it now turns out that the rich guys, the hedge fund operators, paid little or no taxes thanks to tax exemptions written into the U.S. tax code by a corrupt Congress. The world is now a thieves' bazaar. The chances of these crooks at the top ever facing any sort of punishment is about the same as a sadistic New York City cop being punished for applying an illegal chokehold on a black guy. 1 in a 1,000.
Yep. Perrty much.
They will have to confront Putin's Russia...something fraught with peril. Unlike in 1941 however where they had a "go it alone approach" I think many in the region are ready for the first baby step of real collective security and a Europe "whole and free." This stands to benefit Germany enormously....but it is highly risky.
Russia is not going down in Ukraine without a fight.
Germany is outta there!!!
http://www.examiner.com/article/jim-willie-source-confirms-that-germany-...
The money that West Germany has paid to integrate East Germany has stayed in the German economy. It is the leakage from an economy to places like China that kills it.
"All this makes us wonder: does Europe have a credible Plan B in case Germany does not show up with the goods next time around? European bank depositors should be very concerned, and indeed everyone else for that matter."
Plan A is print, aka Bazooka. That's it.
Plan B is to watch Mises' prediction of a credit-fueled crack-up boom consume all dollar/Euro dependent economics.
What you're describing is PLan A, and everything is going acording to plan. The financial system must be destroyed (but not before the control grid is firmly established) and then a One World Economic/Political Order can be implemented. Order out of chaos. There are black swans that can take the plan down though, (although most black swan events can be used to foment the needed chaos). A black swan event can derail the NWO plan if it occurs after the NWO is established.
BSE's:
Comets/asteroid impacts
Inadvertant release of infectious disease
CME strike
Fukushima event
Spontaneous mass paradigm shift
You need to work the Anti Christ into there somewhere.
Every man for himself at that juncture, damn the women and children, who will be trampled in
the rush for the lifeboat.
At some point, you have to save yourself, to be able to save others later.
Germany has acted as the enabler to the european debt junkies.
Tough love ..
The first thing the flight attendant tells you is to put the air mask on yourself before you place it on your children, if the plane is deliberately diverted into a war zone and struck by a missile.
Germany is a co-dependent. She has no way out of her relationship with her dependent junkies short of suicide.
I think the western oligarchs are desperate to start WW III before their financial house of cards comes tumbling down. Germany will survive, the EU may not.
The blatant propaganda from the main stream media whores is laughable and backfiring in rural America.
BTW - Paul Craig Roberts has a good article this morning, a good read but may be too harsh for those addicted to psychiatric drugs and/or government cronyism...
http://www.paulcraigroberts.org/2014/07/26/world-doomed-western-insoucia...
Even PCR doesn't quite get it it.He decries the evil DC leadership without taking it
to its logical conclusion.
The western leaders are indeed bribed by the US.
Personally blackmailed by the US as well.
The biggest stick by far though, is the certainty that is all else fails, the US
will nuke their countries to keep its hegemony, and the petrodollar.
Now put yourself in their shoes, and come up with a solution.
I understand your meaning.
The US oligarchs (crony-capitalists and their political minions) are not only a threat to our alleged enemies, but to our alleged allies as well.
Alleged enemies and allies would have to work together to eliminate the ability of the US to threaten them with weapons of mass physical and financial destruction.
Well, at least the US is "bringing the world together"... (SARC).
No longer will france say je suis
Instead, france will be saying ich bin
The day when some major world economy finally crumbles under it's debt load and defaults/renounces its debt, all the media pundits will be out there saying "Well, that's what happens when your run your debt to 500% of GDP", as if any of them weren't cheering it on as that debt was accumulated in the pursuit of "growth".
When called on that fact (if their hipocrisy is ever pointed out at all), they'll say "we told them 400% debt/GDP is where they needed to turn the ship. That last 100% is where they lost control. We've been saying that for X years now."
What they loudly pronounce today as "unthinkable" and "ridiculous" will suddenly morph into "oh, that was obvious."
This question is the core of the decision for Germany regarding wether they participate in trying to steal the Russian 7 time zones of undeveloped resources “with” the USA from their Russian citizens
Or do they ?
Engage in an active cooperative mercantile relationship with Russia where the jobs created and business developed put their citizens in a better off position – all in – than trying to steal the assets to pay for the EU liabilities.
The financial debacle is continuing participation in the EU
The EU is unsustainable with or without Germany unless they have hard real assets to pay for the liability sinkhole
The USA will treat them as so many stooges and vassals for the next 100 years if Russia goes away since the USA will control the resources and their price.
Freedom from slavery is worth the risk for Deutchland
Like Kartoffein mit Salz.
thank you for sharing your insights :-) ( I forgive the misspelling )
This article is written as if Germany is doing a big favor to other European countries by staying in the EU. The Euro zone concept (no customs, the same currency...) is the reason that the German bussines as a whole is doing so fine. At the same time this same German Economy also forces the local companies to close doors becouse there is no way that you can compete pricewise with a giant Europeanwide German held company. The manager level of the same German companies wont let Germany exit the EU... they are also the ones that sing the tune to wich Angela dances...
Crap....German companies are hardly superstars....just where did Hoechst AG go ? Whatever happened to Kiekert ? Who is building high-speed trains ? Where is KMW tank builders going ?
You make it sound like German business is tops......well it isn't. In whole areas it faces stiff competition
I agree with you that German business is not top at all. I just wanted to say that the German comapnies NEED the EU. Well maybe BRICS markets are the next step for them. I can imagine that Germany is looking for a way to take some other EU countries with them and just join the BRICS as a group...
demoses, anyone, what is the journal that most honestly expresses the geopolitical thinking of "... the manager level of the [giant Europeanwide German held companies, who] sing the tune to which Angela dances..."? Does anyone translate it into English?
Apparantly Germany has already decided to leave the EU.
nine!
Nein! Es ist NEIN Scheiße Kopf!!
http://www.youtube.com/watch?v=1MLry6Cn_D4
Typical Anglo-Saxon over-hyping of Germany. The average German complacently expects a pension to fund a leisured class lifestyle and a VW or Mercedes to drive him to early retirement. Some are even suckered by cheap Baugeld at 1.89% on a 5 Year Fix to build a house usually in areas where appreciation will be zero at best.
Demographics suggest Germany should be in budget surplus before the wave of overweight crocks hits the hospitals as they age. Demographics suggest noone to buy these overpriced houses. East Germany gets huge transfers from every city and town in West Germany but loses young population and ends up as wrinklie zones with superb infrastructure.
Germany is sucking wind already - cut off exports to Russia and lots of zombie companies will fold. The same pattern is happening in GE as in UK and USA - wealth is moving to big cities and finance and away from non-urban areas and manufacturing.
Germany was given a 10 year window by Gerd Schroeder and Agenda 2010.......Merkel simply coasted on it just like her mentor Helmut Kohl would have done. Germany is going down the drain under Merkel. It is not a Leistungsgesellschaft - it is a Freizeitsrepublik
And your junkers are disagreeing WHY?
Why should they want to?
Germany will pull out of the EU and ally with Russia.
Then they'll take over Europe.
are you some kind of oracle ?
You are clueless about modern Germany then.
You must be another guy with a PhD in Statistics. ;-)
>>>
The reunification...estimate somewhere in the vicinity of €1.5-2 trillion. This is a very large figure indeed, easily exceeding half of current GDP levels.
<<<
It is a very large figure, but Merkel really believes in the EU-dream.
And she won her election.
So she will be prepared to spend at least that much to keep the EU-dream alive.
Watson
Unglücklicherweise hast Du Recht mit Deinen Ueberlegungen. For the Germans the European project was the solution for no more war. Never ever any more. They lost 2, remember that.
They lost two wars to the UK, and then only because The City leveraged NYC. And as NYC goes, so does DC.
This time they have the opportunity to do the same, but with other Continental neighbors on their side, to unshackle themselves from the true slave master: the USD and it's true owners.
That's why the only real argument that needs to be made and maintained with a laser focus, is "Freedom from the hegemony of the GRC status of the USD."
Kill the GRC status, create diversity via Regional Reserve Currencies (RRC), and the world pulls back from the unprecedented disaster that is the March Toward Global Neofeudalism.
can i get a hard-on watching Yellen speak?
that is the multi trillion dollar question!
Down a bottle of Viagra (all of them!)?
"The German political class is ready to give “earth and water” to the German economic elite in order to avoid the latter to emigrate permanently to other markets with very cheap labor. Since, however, at least for the moment, it is impossible to throw salaries in Chinese or Indian levels, politicians must give something more. Expensive gifts are oil, natural gas and land, at excruciating prices in all countries that have not yet been privatized or remain unexploited, such as Greece. Sellout in other parts of eurozone, since everything in Germany has been sold and there are no fields of oil and natural gas. If someone wants to see an example, could only have to take a look at the relatively recent past and how former West Germany behaved against former East Germany, with the fast and massive privatizations and companies that passed into the hands of the West Germany's economic elite under excruciating prices. German oligarchs are organizing a new "Treuhand" throughout Europe. Other multinationals will follow to take advantage, and preparing for big party on potential oil and natural gas fields. Maybe this explains the absence of France in recent decisions on Cyprus and the... nap of Moscovici in recent Eurogroup."
http://failedevolution.blogspot.gr/2013/04/a-scenario-nightmare-for-futu...
Let's see... wealth, power, privilege/entitlement, land and resources -- that can be transferred to heirs.
What's that remind me of? Sorry, but the only "ism" that fits the facts and data, is... Feudalism. Neo-Feudalism, if you will. What I call "Feudalism 2.0": Renewed and Improved on the Tried & Proven (for what worked for centuries).
The other "isms" are relative newcomers, with a dubious track record of sustainability.
p.s. For those who would offer Mercantilism as an alternative model, please realize that it is a particular form of Feudalism.
Exactly:
225 years later, regression towards the new Feudalism
If Germany flees towards the BRIICS and leaves the West, the Bankers will blow up their derviate holdings. Economic black mail will keep Germany firmly in the West's camp. They may wish to flee, but the West's Central bankers have more than a few dirty tricks up their sleeves. And as far as Germany's Gold....Long gone to the East. ZH'ers know that though.
Economical blackmail doesn't work anymore, everything is way to much linked.
If i blow up yours i can be almost sure i blow up mine.
And the only way Germany can restock on gold is to look away from the West because there's none.
Come on Tyer, you know how the word works!!!!!!
Nothing never move aong
Come on Tyer, you know how the word works!!!!!!
Nothing never move aong
If Douche Bank fails then the whole system collapses, the only difference is whether or not Germany will be made the culprit for the worst depression on record, (3rd time Germany will be blamed for a world war)
You cannot isolate Douche Bank for a collapse, the system is too complicated and too interdependant.
Realisticly the US will not wage a nuclear war, otherwise the rulers can be targeted.
Keep your eye on the ball, this is all about energy resources like it always is and eventually Germany will pivot East.
The US and the West will collapse, we are at peak credit expansion with no benefit, the consumer is tapped out.
It's not just about energy. Certain members of the TPTB (on all sides) consume the crazy pills a bottle a time- whether it is the Bible-beaters searching for a Rapture, Jihadis searching for 12th Imam or the Resurrection of the Caliphate, Jews sacrificing each other for the return of blood sacrifice, and even on the anti-war side you have people who are leery of the fall of Syria leading to next world war.
The struggle to prevent Vlad and Angela from sleeping together started before Drake drilled his first oil well. Ukraine didn't heat up until Barry failed at the directly implementing Vanga. Meanwhile TBTF have setup a circular firing squad with financial WMD. It all comes together in a Gordian Knot and no one can cut through it without bringing down the house down on top of himself and everyone else.
So we need Alexander to cut that knot.
Its soaking in oil in our age.
But Alexander is not far away.
Only, by the looks of it, he is not one man but a human wave in the making.
It takes a cataclysm of coming times to make the heroes rise from the ashes.
oi vey
Wrong
"Will Germany Carry Europe’s Weight In The Next Financial Crisis?"Germany has done well because it has kept it's high value industries, and exported products - not jobs (via building factories in Asia and installing their advanced technology in those factories). You could trace a lot of this to the differences in tax rates between the US and Germany. Will Germany bailout the EU once again? My guess is NO. While Germany 'could' I see them forging more links with Asia (Merkel has been globe trotting there), and switching back to their own currency.
What do you think that silk road is all about? Germany.
Citation: "West German politicians clearly underestimated how much the reunification would cost."
No, Sir. Not everybody. But straight talking persons with clear messages were not welcome. E.g. Oscar Lafontaine - former leader and chanceller candidate 1990 - finally lost his job in the party because of talking turkey during election campaign and public appearences. Meanwhile his oponnent Helmut Kohl promised bloomy gardens within five years in East-Germany...and certainly people voted this allegedly destiny.
Later the western press called Lafontaine "most dangerous man on planet" when he started criticizising the potential danger of inflating and gambling banks or the consequences of a common currency (Euro) without previous social, economical and fiscal union (predicting precisely the big bang in 2008 and 2010).
However he was bashed by the neoliberal propaganda as demagogue and populist...and the herd of sheeps honestly followed their slaughtermen - until today (...but slowly anticipating the next big bang...)
Belgium has it covered
Germany will be wiped out picking up the losses drom Deutsche Bank, the worlds number 1 in derivataives.
Germany will be bankrupted by US.
Jews in US will never allow Germany to join BRICS, or leave EU.
Germany has no say, because they lost the WWII