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Is Germany Already Signaling The Complete (Economic) Collapse Of The European Union?
In an attempt to try to divert a looming economic stagnation in the European Union, some leading German and French economists have launched some plans to try to revive (read: ‘resuscitate’) the economy of the Eurozone by tackling two issues which might have deteriorated the economic situation in the currency bloc.
Enderlein, an associate at a German school of Governance and Pisani, member of a French think thank have announced some ideas focusing on solving the issue of the rigid French labor market and the lack of government spending on infrastructure projects in Germany. This could be the perfect time to push some of these ideas through as the next elections in both countries are still 2.5 years away which means there’s plenty of time to implement new measures and restoring the popularity of the politicians before the next elections.
The interesting part is that both Ministers of Economy of both countries are agreeing that something needs to be done which is relatively easy to implement without disturbing the labor market or the public finances too much. However, the German minister of Economy has stated that Germany is unwilling to increase its budget for infrastructure works. He states that a total amount of 10B EUR has been included in the 2015-2017 budget which will be used to fund infrastructure and construction activities, but that it’ll be close to impossible to increase this amount to 24B EUR. That's interesting because if Germany would borrow an additional 14B EUR at a term of 10 years, its annual interest payment would be just 178M EUR per year as the 10 year government bond rate has been declining for six years now (see next image).
That’s a surprising statement as several economists would have thought the proposed 10B EUR to be insufficient for the necessary upgrade works anyway, and it looks like Germany is once again playing it hard. As the Minister of Economy said that the real problem in Germany is the lack of private investment, we wouldn’t be surprised if he was trying to put some pressure on those private parties in the German system.
Even though it’s unlikely that Germany will revert its stance and more than double its investment in infrastructure-related projects, it does look like the country would be willing to keep the door open for private parties to incur the expenditures. Those will obviously have to be incentivized by for instance a tax holiday or some other monetary advantages. But the budget for infrastructure isn’t Germany’s only problem. Because of its rapidly ageing population, there will be a strong need for new entrants on the labor market and those will very likely have to be sourced through immigration. One of the proposed plans is to automatically give foreigners who graduate from a German university a work permit. This should entice more people to effectively stay in Germany and to support the pyramid of the labor market.
Germany used to be the growth engine of the Eurozone but after some harsh decisions to keep its budget aligned with the European requirements, it’s very clear that its economy is in a worse shape than expected. If the European Union won’t find a solution which is easy to implement soon, we might be heading towards a complete economic collapse in either the European Union and the Eurozone. Until recently, Germany and some other strong countries were able to keep the economic growth rate at a decent level, but now the largest economy of the European Union is showing signs of fatigue, a comprehensive action plan will be needed.
And that brings us to the next problem in the European Union. The only thing politicians care about is their own job and job security. Nobody really has the balls to push through a certain reform as he/she knows it will cost votes. Precious votes which could result in not being re-elected for another term. There will be a lot of conversations and talks on a high level in the European Union, but we dare to bet that nothing will really change. As usual. So be prepared for the complete implosion of the EU.
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More spending is not the answer!
Less spending is part of the answer.
Eliminate the predator class is crucial.
+100...
give the man, er..., the lady a cigar!
Things do still look good in Germany according to the latest IFO Institute publications
http://www.cesifo-group.de/ifoHome/facts/Forecasts/Ifo-Economic-Forecast...
Saint Nicholas will not let his elves down.
For the economies of Europe, the past few months have felt like one long ice-bucket challenge that never ends: A perpetual state of shock induced by the bone-chilling fact that deflation has become a reality in many European countries.
http://www.globaldeflationnews.com/as-early-as-2011-ewis-analysis-warned...
Looks like someone wants Germany and France to import more Muslims, despte the locals being deeply opposed and France already swimming in them. Hmm.
speaking of which, the Fr Aquitaine region is now having it's bin removal service cancelled as of 01/01/2015 and now citizens must take their rubbish to the local Church where recycling bins are being installed. So on a physical reality, 1 lorry doing up to thousands of people's rubbish is being replaced by everyone using a car instead - and they are telling us in their propaganda that it's good for the environment.... inverse-logic at it's finest.... And on a psycological level people will now visit the local churches to throw rubbish at them.... visiting them more for that than religious reasons... [and of course never a mosque]. They now claim, as a magnamous gesture, that local tax wont go up next year [having risen by double digit % most years anyway] - they cancelled the f-ing service so have nothing to pay , and are still going to charge this years rates for a non-service next year and every future year ???... Again, their tract extols the money-saving aspect, the green aspect, 'modernising',etc, but fails to say they will now be selling your [ tri-selected] rubbish rather than paying to remove it, will still charge you as if they were runnung that service, and you will now pay for petrol every time you got some bags to chuck....
top-down directive, enacted by spineless, stupid, or ignorant functionaires to shaft everyone a little bit deeper....
In this case, recycling is a word re-branded by gov/eu to hide many scams. And will actually work against the environment, rather than help reduce human impact.
Deflation is inevitable. Even if they inflate over and over on the way there, it will deflate. If the really want to look like heroes they should run a controlled deflation with a debt jubilee, write down half of all outstanding loans especially home mortgages. That will free up money in the hands of the people, promote spending, and even make saving possible again.
But the banks will never allow a debt jubilee because the banks "shrink" and feel out of control, so the system will crash until uncontrolled deflation will do the same thing via defaults and bankruptcies.
Nothing new here, just history all over again.
Interesting how deflationists never take a big drop of supply into account in the economic crash. When economy crashes, production crashes as well as imports. When things are scarce, they tend to become expensive, much more expensive. Please take all parts of the eqution into consideration, not just the money supply. That one is the least important when the going gets tough! Seriously, man!
Disagree on the debt jubilee for those in debt or who were fortunate at the time to obtain a mortgage.
All those that are not in this financial position need to be handed an equivalent value of worth because as the central banks directly manipulated the economy to generate inflation they stole what they denied in the rise in asset rises such as homes.
Even now they are attempting to prop up the home buying sector by those considered more worthy in the UK and thereby genenrate growth. They are also handing handouts to those with property (note:- not those without) a value to reduce the cost of money savign features that they get to enjoy.
Can you see how this manipulation they are bragging about only needs the debt jubilee for those with homes so all those that don't own homes can leegitimately kill all those that do.
I just reckon it gets ugly and in the future if the above actually occurs killing those getting even bigger government handouts today than those on welfare can be thrown on the bonfire first on the grounds the poorest actually cost alot less than others and easier to rob with no assets. A BANKERS PARADISE THAT.
Good point, but as mortgage prices drop, rental prices will drop too. Although they wouldn't drop until later as landlords try to get extra profit from renters.
And I know debt jubilees are not fair, especially to those who worked hard and paid off their debts honestly. But through most of history some form of debt jubilee was always there to wash bad debt out of the system before it broke the middle class.
As long as bankruptcy laws stay in place this will happen one way or another, but watch for changes in bankruptcy law: already home mortgages are one debt not erased by bankruptcy, even though that was money printed out of thin air with no loss the the debtor! Meanwhile private debt owed to institutes who worked for that money do lose that debt-asset!
Germany has the right idea. Just the wrong implementation.
Their problem is they are too focused on moral hazards, and their Calvinist mindset requires them to 'punish' such, even if it means an exacerbation of the trouble. The hardships they might also suffer as a result are seen as a sacrifice that simply must be made.
They are trapped within the tight little box of their own self-imposed morality. They forget that economies are by nature AMORAL, and that their sacrifices are thus wasted.
Seriously, the economy doesn't give a rat's ASS how you rebalance, just that you DO. If you don't it will be done FOR you, with results you won't like.
Imagine the nightmare of Russia, China, Brazil, India, South Africa (a port for Chinese investments in Africa), Venezuela, Iran, North Korea exchanging currencies freely without supervision of the Banksters!
Do you think Turkey will be out of this?
Do you think that Middle Eastern oil-exporting countries will be outside of that?
Sweet illusion!
hehe.
The damage is big, very big ...
This new system will charge its obligation to the other papers issued their checks.
It will be funny to know that the "overdraft" or money written in the credit card does not exist.
If a debtor does not pay the bills, is only sold again with advance payment.
In Ukraine this happened.
It was only a sample of what can happen with Europe and USA.
Does the dog law!
Who pays takes the product.
Enter a supermarket in Europe or the US, read product labels, look to see where they are produced and mentally withdraw from the shelves those produced in other countries, you will be horrified!
We went through this in Brazil in the 1970s, I survived it, the Russians also have survived it.
Watch empty shelves is not new.
Will this generation in the US or Europe are prepared for such a thing?
hehe.
Are there no bankers of politicians in Brazil? That was not the feeling I got when I was in San Paulo.
"Imagine the nightmare of Russia, China, Brazil, India, South Africa (a port for Chinese investments in Africa), Venezuela, Iran, North Korea exchanging currencies freely without supervision of the Banksters!"
N. Korea....? Surely you jest...
Strange - they didn't discuss dismantling socialism?
Da, da, da .....
Agriculture in Europe is eating its exports to Russia, south pipeline will many German steel rethink their investments.
No production no tax collection, is a chain reaction.
Are the "costs" of Obosta sanctions.
Very calm right now, tomorrow (15 / Dec / 2014) Russia will be testing its equivalent to SWIFT, will be the third porrrada.
It would not surprise me if there was a ban on export of Russian rocket engines to the US - and soon after a series of explosions in attempts to use the engines already sent.
There is still a lot up front but time is short, very short.
hehe.
Germany refusing to prop up the spendthrift EU ?
About time.
Sort out the French labour market ?
About time.
Only two of the problems that could hasten the end of the stupidity that is the EU.
The end of the EU ?
BRING IT ON !
Has anyone ever wondered, what's putting 'private' investors off? Could it be the possibility of civil war across the EU soon? All acros UK and EU, we have Islam trying to impose it'self on Christian countries, if it was me, I would be looking for some form of stability as a way for making my investment grow, not throw it away!
Christian Countries? Tell me, how does taking part in the CIA torture agenda, and having secret prisons for said torture, fit in with the concept of Christianity?
Not a bad idea.
Turn them into suit and tie wearing Mormons while you have the water on.
Not Christian enough?
Friday night Bingo Catholic might take an awful lot of water but they already have that kneeling business down pat.
Christians kill or torture only to save lives. Muslims kill or torture only to enforce their barbaric religious laws.
Politicians are too afraid of upsetting their right-on dinner pary chums from the meejaa, so would rather demonise Russia.
The Euro-zone is in a far bigger mess than recent headlines and figures suggest. Most of the growth in the Euro-zone over recent years has been in Germany and that bright spot is now under pressure. Italy has been in recession for two years; France’s economy has been stagnant for months.
Now that Germany is slowing many economist think the chances of a Japan-style deflationary spiral have risen sharply. Blame is being cast upon German policymakers that remain pigheadedly opposed to the stimulus the euro area wants, but what they need is serious reforms. Debt does matter! Germans know this and it is only logical that sooner or later they will pull the plug. Bottom-line and what it all boils down to is Germany can’t keep buying Greek bonds with German taxpayer money until the end of time.
http://brucewilds.blogspot.com/2014/10/global-economic-malaise-due-to-debt.html
Bull shit! What Germany and the EU need to do is stop the idiotic sanctions. No, They will cut off their nose despite their face. They've tied their economy to the dying US hegemon and deserve exactly what they get.
First step to recovery. Throw all them economists in a hole with a few burning car tires.
My bet is that Germany works with Putin and the rest of the world to destroy the NWO. I quess it would be possible to tell by any military buildup within Germany. But like the US I don't think Germany has a military.that is not controlled by the NWO.
Germany is a vassal state of the ussa keep dreaming
Germany (and USA) are a vassal states of the Rothschilds. Fixed it for you.
true. but for how much longer?
according to the not published information at least until 2099.
2099 is stated in nondisclosed documents, singed with the capitulation in 1945 in Potsdam.
true. but for how much longer?
...what?
Is truly amazing that with all these ideas about how to revive the economy of said broke nation the one solution that is never discussed is TAX CUTS FOR THE PEOPLE. This is what happens when government becomes the economy and not the people who work for a living.
Idiot leftists always see a sale on some items as great and it helps you save money, but they never understand that in order to spend in the economy you have to have savings past what the government takes from you.
If the government is constantly spending your savings through taxation then the only economy is the government.
Boy this sounds familiar. It's like a plan or something. It reminds me of I word I've heard before. I believe it's called SOCIALISM.
Eventually you run out of OTHER PEOPLES MONEY.
Go die Governments of the world. All you do is rape and murder
Every form of government eventually runs out of other people's money.
Just the length of time it takes varies.
That's because every form of government is a parasite, and as such will continue to suck its nourishment from the life blood of its host until such time that the host dies. All of these extreme machinations they push forward are designed to save THEIR asses not ours.
Fully agree and the end is approaching. In Belgium, "government" expenses have reached 54% of the GNP and nobody asks himself how the remaining 46% will ever be able to pay for those 54% - even if one confiscates the whole economy. France : same story.
It easy to see that the powers that be are worried and dubious reports claiming that we need more spending, more migration and more Government pork barrel projects.
Thats a great idea guys more of the same, lets double down on the shitty ideas that got us where we are. Maybe if we started to live more within our means, ended the Asylum migration bullshit and hung all of the elite who landed us in this mess thing would improve.
The sooner the Germans divorce the EU ponzi, go back to their own currency, and start to govern themselves according to their own cultural mores and values, the better for them and the rest of Europe. The EU is nothing but a massive practical joke. It has managed to reduce the entire Continent to serfdom.
regardless of your "historical perceptions" a man with a funny moustache tried that once,,,,, besides as I stated above Germany is an ussa vassal state .. good luck
The Germans are smart people. Always were. That's why the NWO keeps them on a short, tight leash. If Germany really wants to divorce the EU they can do so, although they will have to be very careful. The NWO does not take kindly to non-compliance, and will use whatever surprise attacks required to pull back the errant nations to heel, i.e. Syria, Libya, Ukraine, Russia, etc. The jewel in the EU crown is Germany--the powerhouse of Europe. The NWO approved EU cabal knows that if Germany opens the corral gate and gets away, the rest of them will walk off the job. Bye bye EU. The Germans will have to take into consideration that they will be dealing with cornered rats.
A good "future history" of the start of the Euro Civil war o f2017 can be found at the link below. It suggests that mass migration, Islamization and bad economic/finanical management will start an ISIS style uprisiing in France which will spread to UK, Bel, Netherlands etc. A sort of Turner Diaries for the future of Europe.
https://eurocivilwar2017.wordpress.com/
I'm hooked now. Damn.
The one thing he makes absolutely clear,, and it's a point most dance around or downplay, is that Islam, while it may be a religion, it is also a political movement of conquest and subjugation.
"But there are millions of Muslims that are not radical..."
That is correct. They will be part of a Caliphate nonetheless.
Genghis Khan's Golden Horde that swept across Asia, the Near East and into Europe consisted of a tiny fraction of the entire Mongol Nation and no one who faced the Mongols wondered about their peaceful nature as they fell and died under the sword of the conquers.
The same is true of Islam. You may not have to fear for your life from a 'peaceful Muslim' but he won't save you either when the killing starts. If you survive, he will become your Jizya tax collector or jailer.
So goes Europe. America is faced with a different invasion.
Very realistic and probably not far from the mark.
Yeah, the f-ing islamonazis are taking over Europe.
Thanks to the machinations of Jews like Barbara Spectre who don't think European nations should remain white...
Sprout money initially mentions two things affecting the European union-----Germany's reluctance to dump more money into infrastructure, and France's rigid labor market. But the whole column thereafter is about Germany's reluctance to dump more money into their infrastructure. Seriously? For the whole of the European union, the largest problem by far is the rigid labor markets of most of the southern European nations along with their tough anti-business regulation. Germany's reluctance to dump billions more into infrastructure is like 20th on the list of things to do. Infrastructure spending ought to be done ONLY because they need to upgrade, and or, support the infrastructure. It ought NEVER be about infrastructure spending for the sake of dumping billlions into a weak economy. When you start down that road, you will soon grow your debt issues into an unsustainable existence. Germany does have an aging population, and with that they have billions of unfunded mandates ahead in their future. Infrastructure spending done for anything but maintenance and specific necessary upgrades will only crowd out the future of German retirees later. Of course, handling German retirees with government debt is a bad idea just as it is here in the US, but since they haven't established an adequate system that relies on the German population investing for their retirement, we know what's coming.
Gemans need to build Hover-round factories staffed with illegals from France.
Win / Win.
No PhD. in economics BTW.
You're welcome, Europe.
To the many who see government spending on infrastructure as a silver bullet for the economy and as a job creator I would like to raise a word of caution, It may be time for a "truth off'. More "bridges to nowhere" and wasted spending exist then the taxpayer could ever imagine. Often this spending falls short of creating real wealth for our country.
In my book I talk about a bridge that was recently replaced in my city that even the city's leading newspaper said we did not need. The newspaper had gone on to state the bridge did not "need" to be replaced, but only needed minor repairs. In the end they did not only replace the bridge but built a "super bridge" wasting a huge amount of money doing it. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/02/infrastructure-spending-no-silver-bullet.html
Well, that's because no one is taking time to 'deconstruct' the language used in these things, like "government spending on infrastructure".
Translated it means: Boondoggles for the construction executives.
It does NOT mean Infrastructure that desperately needs done, is way overdue.
Mostly government spending on infrastructure will go to no bid contracts who are 'connected' and not to those companies that will truly rebuild what needs rebuilding at a decent, but low profit that will hire millions of workers.
The money like most charities goes to the administrators and not the victims.
Shorter Translation: Corruption on a global scale.