Thursday, June 14, 2012
Far-Right lawmakers expelled from German parliament for wearing clothing label favoured by neo-Nazis
Far-Right lawmakers expelled from German parliament for wearing clothing label favoured by neo-Nazis
Wednesday, June 13, 2012
Russia sending attack helicopters Syria
http://www.dailymail.co.uk/news/article-2158439/Russia-sending-attack-helicopters-Syria-says-Hilary-Clinton-warns-conflict-dramatically-worse.html
Merkel sacrifice Greece save euro says Osborne
http://www.dailymail.co.uk/news/article-2158454/Merkel-sacrifice-Greece-save-euro-says-Osborne-bid-voters-steps-save-currency.html
Monday, June 11, 2012
Friday, June 8, 2012
Thursday, June 7, 2012
Wednesday, June 6, 2012
Russia and China refuse to step up the pressure on Assad regime
Russia and China refuse to step up the pressure on Assad regime: Russia and China refused yesterday to harden their stance against the regime of Bashar al-Assad, even as the Syrian government threw out a handful of Western diplomats in another sign that the UN-brokered plan to end 14 months of bloodshed was disintegrating.
Tuesday, June 5, 2012
Monday, June 4, 2012
Sunday, June 3, 2012
Egypt erupts 10,000 protestors return to Tahrir Square
http://www.dailymail.co.uk/news/article-2153953/Egypt-erupts-10-000-protestors-return-Tahrir-Square-outrage-Mubarak-avoids-execution-sons-henchmen-free.html
Holocaust survivor ordered to return ancient artifact
http://www.dailymail.co.uk/news/article-2153707/Holocaust-survivor-ordered-return-ancient-artifact-swapped-cigarettes-German-museum.html
Saturday, June 2, 2012
Friday, June 1, 2012
Thursday, May 31, 2012
Wednesday, May 30, 2012
Tuesday, May 29, 2012
Monday, May 28, 2012
Sunday, May 27, 2012
Friday, May 25, 2012
Thursday, May 24, 2012
Euro zone members are preparing for Greek exit
Undercover US agents brought new superset down, claim Russian
UK Double Dip Recession
Wednesday, May 23, 2012
Tuesday, May 22, 2012
Monday, May 21, 2012
Japanese officials ask US town to remove memorial to Korean sex slaves
The young woman who dared to defy the Taliban
NATO summit protests thousands swarm Chicago
Three cannibals executed selling and eating human flesh in North Korea
Sunday, May 20, 2012
Saturday, May 19, 2012
Friday, May 18, 2012
Germany must shoulder burden of saving Greece, insists Cameron as Britain has £190bn wiped off share values in past two months
Germany must shoulder burden of saving Greece, insists Cameron as Britain has £190bn wiped off share values in past two months
See? Again, there is only so much and for so long that the German government and economy can continue to support the Euro.
See? Again, there is only so much and for so long that the German government and economy can continue to support the Euro.
Cameron to tell Merkel she is the only person who can save the euro - Europe - World - The Independent
Cameron to tell Merkel she is the only person who can save the euro - Europe - World - The Independent
So, one of the few posts that I will actually make a remark or two about. I don't think it takes a PhD in Political Science to have predicted this. However, I have been privately arguing that the bailout of failing Euro Zone economics by Germany can go only so far before the bailouts began to hurt the German economy. Most of the bailouts are supported by the German government, or in other words, the German tax payer.
Let me regress back to 2002/2003. As many of you may recall, to say that the German economy was struggling since 1990 would have been the understatement of the year. Several socio-economic pressures were faced by Germany: the reconstruction of eastern Germany after unification, coupled with a sever recession during the mid-1990s and a high social welfare burden that the German government was obliged to cover. Unemployment in Germany exploded to 11-12% by 2003 under Chancellor Gerhard Schröder. Even under the Social Democrats and Greens-led governments of Schröder (1998-2005), there was a realization among politicians that the welfare state and economy needed much need reforms. As part of Schröder's reform efforts, the government began to cut taxes to encourage growth and hiring, i.e., business and personal income taxes (2000 and 2003), and reform the economic and social welfare structures through the Agenda 2010 reforms (2003). These reforms became the basis for the German economic recovery that were carried through Chancellor Angela Merkel's governments.
Today is a different matter. The German economy has recovered, unemployment is relatively low and the German government has the ability to bailout EU. The reforms of the past decade have positioned Germany to remain a strong world economy for years to come. However, there are challenges to this.
With the increased burden that the German government has undertaken to support the Euro through bailouts of Greece, any additional obligations that the German government would accept would create additional pressures that could eventually swamp any ability of the German government to salvage the Euro. According to some observers, Greece is not the only country in trouble. We are starting to see similar problems in Italy, Spain, Portugal and Ireland.
It is possible that Germany could prop up one or two of these economies, but for how long? And would any of the citizens of these countries be willing to go through austerity measures that Germany required of Greece? If not, what will happen if their economies collapse? Lastly, how long is the German electorate willing to support Merkel's bailout of these economies? There are early signs that the current Merkel-led conservative government will not continue after the 2013 elections, which could bring about a second Merkel-led grand coalition and the Social Democrats have indicated uneasiness of continued bailouts. If the German economy even slips into a new recession, that will most certainly hurt any future bailout efforts.
Why do I mention all of this? It comes to down to additional strains to the German economy and where the strains are coming from. The main problems with the German economy during the 1990s and early 2000s were internal in nature that could mainly be solved by the Germans. However, the threats to the German economy are more external now since so many German banks are tied to these failing EU economies. Overall, these external issues will be more difficult for the German government to solve. Without the funds, or even reduced funding, these EU economies will most likely collapse and the aftermath will be messy, not just for Europe, but for the world economy. The moral of this commentary, as the German economy goes, so will the European economy.
Pax,
Mark
So, one of the few posts that I will actually make a remark or two about. I don't think it takes a PhD in Political Science to have predicted this. However, I have been privately arguing that the bailout of failing Euro Zone economics by Germany can go only so far before the bailouts began to hurt the German economy. Most of the bailouts are supported by the German government, or in other words, the German tax payer.
Let me regress back to 2002/2003. As many of you may recall, to say that the German economy was struggling since 1990 would have been the understatement of the year. Several socio-economic pressures were faced by Germany: the reconstruction of eastern Germany after unification, coupled with a sever recession during the mid-1990s and a high social welfare burden that the German government was obliged to cover. Unemployment in Germany exploded to 11-12% by 2003 under Chancellor Gerhard Schröder. Even under the Social Democrats and Greens-led governments of Schröder (1998-2005), there was a realization among politicians that the welfare state and economy needed much need reforms. As part of Schröder's reform efforts, the government began to cut taxes to encourage growth and hiring, i.e., business and personal income taxes (2000 and 2003), and reform the economic and social welfare structures through the Agenda 2010 reforms (2003). These reforms became the basis for the German economic recovery that were carried through Chancellor Angela Merkel's governments.
Today is a different matter. The German economy has recovered, unemployment is relatively low and the German government has the ability to bailout EU. The reforms of the past decade have positioned Germany to remain a strong world economy for years to come. However, there are challenges to this.
With the increased burden that the German government has undertaken to support the Euro through bailouts of Greece, any additional obligations that the German government would accept would create additional pressures that could eventually swamp any ability of the German government to salvage the Euro. According to some observers, Greece is not the only country in trouble. We are starting to see similar problems in Italy, Spain, Portugal and Ireland.
It is possible that Germany could prop up one or two of these economies, but for how long? And would any of the citizens of these countries be willing to go through austerity measures that Germany required of Greece? If not, what will happen if their economies collapse? Lastly, how long is the German electorate willing to support Merkel's bailout of these economies? There are early signs that the current Merkel-led conservative government will not continue after the 2013 elections, which could bring about a second Merkel-led grand coalition and the Social Democrats have indicated uneasiness of continued bailouts. If the German economy even slips into a new recession, that will most certainly hurt any future bailout efforts.
Why do I mention all of this? It comes to down to additional strains to the German economy and where the strains are coming from. The main problems with the German economy during the 1990s and early 2000s were internal in nature that could mainly be solved by the Germans. However, the threats to the German economy are more external now since so many German banks are tied to these failing EU economies. Overall, these external issues will be more difficult for the German government to solve. Without the funds, or even reduced funding, these EU economies will most likely collapse and the aftermath will be messy, not just for Europe, but for the world economy. The moral of this commentary, as the German economy goes, so will the European economy.
Pax,
Mark
Thursday, May 17, 2012
Wednesday, May 16, 2012
Tuesday, May 15, 2012
Saturday, May 12, 2012
Wednesday, May 9, 2012
Tuesday, May 8, 2012
Monday, May 7, 2012
Saturday, May 5, 2012
Thursday, May 3, 2012
Tuesday, May 1, 2012
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