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:
Continue reading "Germany to Benefit from Lower US Credit Rating"
Tuesday, April 12. 2011
Germany is Europe's "indispensable nation," in charge of "the unipolar moment within the eurozone," and it is to the EU what the United States is to NATO. That's how European and US think tankers compare Germany with the US:
Constanze Stelzenmueller wrote in another Financial Times article about Germany: "In economic terms, it is to the European Union what America is to NATO: the superpower that gets to call the shots."
Germany should lead? No thanks. Most Germans rather want their country to be a bigger version of Switzerland. We prefer to just sell our cars, machines and tools around the world, play soccer, watch Tatort, and attend to our Gartenzwerge (lawn gnomes).
Thursday, February 10. 2011
The New York Times (via ACUS) describes a joint proposal from German Chancellor Merkel and French President Sarkozy to the EU leaders as a "German diktat." That's the first weird assessment in this Germany bashing editorial. Here are three more:
a) Has the NYT forgotten what the EU agreed on two decades ago? According to the Maastricht Treaty of 1992 deficits should be below 3 percent and debt below 60 percent of GDP. Most countries broke the rules. For some this caused more serious economic problems than for others. Now Germany is asked to help them.
Continue reading "NYT Criticizes German Leadership"
Tuesday, November 23. 2010
From a Washington Post editorial:
A good defense of German policy against US criticism of its "export-led growth model" can be found on Atlantic Community: Stop Lecturing and Do Your Homework, America!
Tuesday, June 22. 2010
Ahead of the G-20 summit we are witnessing rising German-American disagreements. Germany wants to reform the financial markets and deal with the debt crisis, while US academics and the president prefers economic stimulus plans and criticize the teutonic export champion. Spiegel International:
Personally, I am not sure, if the US and Europe really need and can afford more stimulus plans right now. They make the long-term debt crisis worse. Besides, tax cuts do not lead to more consumer spending, when citizens are smart enough to realize that the economy and government finances are in trouble and consider tax cuts for what they are: desperate measures to stimulate growth. In those cases citizens use the tax cuts to save more money to prepare for the worst. Of course, stimulus is more than tax cuts.
ENDNOTE: I am sorry for the lack of blogging. In the last six weeks, I learned quite a lot of stuff the hard way: First, a new bike with strong front wheel breaks is not necessarily a good thing. Second, I cannot fly. Third, a broken elbow joint requires two surgeries, the second one kept three doctors over four hours busy. Fourth, doctors and nurses are nicer and more caring than I thought. Even the hospital food was good. Our health care system is still okay. Fifth, even if only the elbow is broken, fingers don't work (typing etc.) very well. Regaining full flexibility apparently takes months. Sixth, one can get quite a lot done with just one functioning arm. Now "I'm a graduate of pain." Yeah.
Tuesday, May 11. 2010
Posted by Andrew Zvirzdin in International Economics on Tuesday, May 11. 2010
Sixteen months ago, I began to grow worried about Greece's debt problems and its implications for the euro. At the time, I wrote,
The euro area has yet to demonstrate its cohesiveness when confronted with the growing economic divergence of its member states and even the specter of a sovereign debt default....Leaders will have to act together to show their commitment to preserving the single monetary policy in the euro area.Yesterday, EU leaders rose to the challenge and solidified the euro's position in world monetary affairs. The announced $1 trillion package does more than provide indebted countries with a source of funds during periods of crisis; it demonstrates the commitment of leaders to the concept of European integration. In so doing, European officials have significantly increased the credibility of the EU in the eyes of their American counterparts and taken the first step towards some degree of fiscal integration.
A few details of the announced aid package are particularly noteworthy:
Continue reading "The Euro Comes of Age"
Friday, April 30. 2010
Guest post by Joe Joe Noory is an Architect, investor, and independent observer of news and opinion:
Somewhere between the emotional populism of wanting to burden the higher performing European states with guilt over resisting to bail out the Greek government, and the risk investors are being offered to take are the hard truths of bailing out of the broke Greek government by investing in their bonds: they might not just default on ?8,5 billion in obligations to bond purchasers due on 19 May, but run the risk of never being paid back for future bond offerings (of perhaps two years or less), much in the way depositors in an uninsured failed bank will never see a red pfennig of their invested savings on a default.
Before you react, take the statement for what it is: a warning. It isn't a characterization of the ur-Greek citizen, or a nationalistic reflection, or a cultural issue, but a warning that the discipline to raise revenue and cut budgets in face of the street protests and strikes of civil servants and dependants on entitlements. It isn't a characterization of what they did, but a warning of future events, one which prices them and tells us what something is really worth, just as watching those who short an equity or commodity does.
Continue reading "Anxiously Waiting on a Trojan Horse"
Thursday, March 25. 2010
I am quite excited that Germany participates in the Eurovision Song Contest with an original, charming and funny artist, who can actually sing and is a bit crazy and therefore represents the new Germany very well. Lena Meyer-Landrut will perform the song Satellite at the Eurovision Song Contest, which was written by an American-Danish duo.
Although for the first time in years, Germany deserves "douze points," I don't think Lena Meyer-Landrut will get them from the other European countries. Animosities against Germany are too strong. Most Europeans have stronger emotional ties to other countries.
And Germany's current economic and fiscal policies make us the new bad boy. The NY Times writes "Germany Begins to Shed Its Role as E.U. Integrator":
I guess, we act now like a "normal" country. Well, so be it!
Germany's previously strong monetary and political support for EU integration did not make us popular enough to win the Eurovision Song Contest either. It just paved the way for German unification, but we got that now and have to focus on bigger national interests, like the Eurovision Song Contest and the Soccer World Cup.
My statements to the Russian English language TV station Russia Today probably cost us a few votes from Greek's Eurovision Song Contest community as well. The 10 minutes live interview took place last Friday. The video clip is from a weekly round-up and mentions just a few short statements of mine:
Google the Site