Monday, December 17. 2012
Posted by Editors in
International Economics on Monday, December 17. 2012
The rising economies in Asia and South America have been hyped for many years in the US and European media. Now, finally, there is a renewed focus on transatlantic free trade because the United States and the European Union "remain the anchor of the global economy. Together, they produce more than 50 percent of the world's gross domestic product and account for almost 30 percent of global trade. Europe buys three times more U.S. products than China, and European investment in California alone is greater than all U.S. investment in China and Japan put together."
Stuart E. Eizenstat, a former deputy secretary of the Treasury, and Daniel S. Hamilton of Johns Hopkins University, describe how the new Trans-Atlantic Partnership could look like:
Continue reading "The Next Big Transatlantic Project: A Free Trade Area Plus"
Wednesday, January 25. 2012
Posted by Joerg Wolf in
German Politics, International Economics on Wednesday, January 25. 2012
Dear Don Lee and Los Angeles Times,
Thank you very much for writing and publishing a positive article about the German economy that goes beyond the usual focus on our exports and also looks into the general economic model and the frugal lifestyle with plenty of recreation:
Every summer, Volkmar and Vera Kruger spend three weeks vacationing in the south of France or at a cool getaway in Denmark. For the other three weeks of their annual vacation, they garden or travel a few hours away to root for their favorite team in Germany's biggest soccer stadium.
The couple, in their early 50s, aren't retired or well off. They live in a small Tudor-style house in this middle-class town about 30 miles northwest of Frankfurt. He's a foreman at a glass factory; she works part time for a company that tracks inventories for retailers. Their combined income is a modest $40,000.
Yet the Krugers have a higher standard of living than many Americans who have twice that income.
Their secret: little debt, frugal habits and a government that is intensely focused on high production, low inflation and extensive social services.
That has given them job security and good medical care as well as well-maintained roads, trains and bike paths. Both of their adult children are out on their own, thanks in part to Germany's job-training system and heavy subsidies for university education.
Continue reading ""Germany has the economic strengths America once boasted""
Sunday, January 15. 2012
Posted by Joerg Wolf in
Transatlantic Relations, US Domestic and Cultural Issues on Sunday, January 15. 2012
Mitt Romney's Anti-European rhetoric is stronger than the Anti-American statements by leading German politicians in the last few election campaigns. Romney seems to assume that Republican voters are so stupid, uninformed and Anti-European that he can get their votes with scaremongering.
His Europe bashing seems to be his response to the criticism of his "socialist" health care policy in Massachusetts and his French language skills. (Newt Gingrich released the attack ad "The French Connection".)
In Iowa Mitt Romney accused Obama of turning the United States into "a European-style welfare state," saying Obama's policies would "poison the very spirit of America and keep us from being one nation under God," according to the Washington Post.
In his New Hampshire Primary Victory Speech he said Obama "wants to turn America into a European-style social welfare state society. We want to ensure that we remain a free and prosperous land of opportunity. This President takes his inspiration from the capitals of Europe; we look to the cities and small towns of America." (See video at 6:30 minutes.)
Well, Norway, Finland, Denmark and even Germany and France deserve the title "land of opportunity" more than the US does because social mobility is higher. The NYT writes about five such studies.
Continue reading ""Europe" is a Dirty Word in the United States"
Tuesday, January 10. 2012
Posted by Joerg Wolf in
Transatlantic Relations, US Domestic and Cultural Issues on Tuesday, January 10. 2012
"Europe bashing has become an important stump-speech cornerstone for the entire Republican field," writes Spiegel:
Europe is socialist, bloated and a threat to the global economy. That appears to be the message from the ongoing presidential campaign in the US. Republicans in particular have discovered Europe as a convenient punching bag -- and have even begun accusing each other of being too "European."
What they conveniently ignore is that American Dream is not what it used to be. (Neither is the European Dream of an ever closer union, but that's another story). The United States is increasingly less the land of opportunity. America is not only less equal, but also less mobile than many European nations.
Continue reading "Republicans Campaign with Anti-European Rhetoric"
Thursday, August 18. 2011
Posted by Joerg Wolf in
International Economics, Transatlantic Relations on Thursday, August 18. 2011
Is this going to be a new running theme? Vanity Fair runs a long essay under the headline "It's the Economy, Dummkopf!"
With Greece and Ireland in economic shreds, while Portugal, Spain, and perhaps even Italy head south, only one nation can save Europe from financial Armageddon: a highly reluctant Germany. The ironies-like the fact that bankers from Düsseldorf were the ultimate patsies in Wall Street's con game-pile up quickly as Michael Lewis investigates German attitudes toward money, excrement, and the country's Nazi past, all of which help explain its peculiar new status.
Continue reading "German Dummkoepfe"
Monday, July 18. 2011
Posted by Joerg Wolf in
German Politics, International Economics on Monday, July 18. 2011
Former Chancellor Helmut Schmidt is the only elder statesmen who constantly smokes cigarettes on TV and sometimes uses the term "shit" as a description. He gets away with it because of his huge popularity. His outspoken manner and lack of concern for political correctness also reinforces his popularity, especially at a time, when Germany is governed by uncharismatic politicians, who lack vision and do not even make much of an effort explaining their policies (link in German).
Schmidt has used the term "shit" repeatedly when talking about the World War II. Last week, however, he used the term (for the first time?) to describe the financial crisis.
Continue reading "Outspoken Helmut Schmidt"
Monday, April 25. 2011
Posted by Joerg Wolf in
International Economics, Transatlantic Relations on Monday, April 25. 2011
"Standard & Poor's warning the United States could lose its AAA rating may ultimately bring investment to Germany, reduce interest rates on its bonds and help the country lower its own debt," writes Deutsche Welle:
"Standard & Poor's reassessed US sovereign debt and decided to put it on negative watch for the first time, meaning there is one-in-three chance the ratings agency will downgrade the country's hitherto cast-iron AAA credit rating in the next two years. "Germany wins in this equation because it gets a dividend through stability," said Clemens Fuest, a member of the German finance ministry's technical advisory committee. "Interest rates will be pressed down as a result." Germany maintains a secure AAA rating, pays less for a 10-year bond than the United States, and has a constitutionally-mandated 'debt brake.' In Europe, German bonds, known as bunds, have long been the benchmark for investors. (...)
Continue reading "Germany to Benefit from Lower US Credit Rating"
Posted by Joerg Wolf in
Transatlantic Relations on Monday, April 25. 2011
Since it is Easter, CNN writes this:
Kinder Eggs, a popular European chocolate egg that contains a toy inside, is banned from importation into the United States because it contains a "non-nutritive object embedded in it."
With the Easter holiday around the corner, the agency issued the reminder this week, warning that the candy is considered unsafe for children under 3. Last year, Customs and Border Protection seized 25,000 of them in 1,700 incidents.
Continue reading "Kinder Surprise Eggs Banned in the United States"
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