A Matter of National Interest

BERLIN (Own report) – In light of the drastic warnings of the EU’s possible disintegration, Berlin seeks to prevent the formation of contending forces. “The European Union is drifting apart to an extent hardly imaginable 15 years ago,” according to a recent analysis, written by a board member of the German Council on Foreign Relations (DGAP). The “dividing lines” between the north and the impoverishing south, as well as between western and eastern EU member countries are disquieting. To prevent the formation of a southern European bloc opposing the German austerity dictate, Berlin is particularly trying to integrate France into its EU policy. Yesterday, the German chancellor sought closer cooperation with the Czech Republic and Slovakia, to undermine an alliance of the Visegrád members against German predominance. At the same time, promotion of the EU has been intensified within Germany. German Foreign Minister Sigmar Gabriel explained how Germany ultimately profits from its net contributions to the EU budget: The success of German exports depends on “the people in the other EU countries” being able “to afford” German products – with the help of Brussels’ subsidies. Continue reading

Transatlantic Trade War

BERLIN/WASHINGTON (Own report) – In the looming trade war between the EU and the USA, Brussels is threatening to officially denounce the United States as a “tax haven.” The EU Commission is currently preparing this affront to the world power, following Washington’s strong criticism of Germany’s excessive trade surplus. In the six years, from 2010 to 2015 alone, this surplus has led to an outflow of nearly a quarter trillion euros to Germany from the United States because of the “grossly undervalued” euro, according to Trump’s trade advisor Peter Navarro. This has been confirmed by the Bundesbank’s recent analysis, showing that through its monetary policy the European Central Bank (ECB) has contributed to the euro’s undervaluation, which in turn has facilitated record German exports and the large US deficit. The trade conflict is flanked by a propaganda offensive against the Trump administration, exploiting the new US president’s racist and chauvinist policies to designate him as an enemy. This conflict could lead to the first major power struggle between Germany and the United States since 1945. Continue reading

German economy left SHATTERED after Brexit vote, shock new figures reveal

CONFIDENCE in Germany’s economy has plunged in the wake of Britain’s vote to leave the European Union, dramatic new figures have revealed.

Business morale in Europe’s biggest economy tumbled in August at its fastest rate since the height of the eurozone debt crisis in 2012, showed the closely-followed economic institute Ifo survey.

The monthly 106.2 reading – from 108.3 in July – is now sitting at its lowest level since February. Continue reading

‘We should nationalise German banks’ Warning Deutsche Bank teetering on edge of CRISIS

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Deutsche Bank headquarters in Frankfurt

 

A TOP economist has warned that Germany’s biggest bank is teetering on the edge of crisis and they only way to protect it against future shocks is to nationalise it.

Martin Hellwig said stress tests carried out by the European Central Bank revealed the Deutsche Bank would be left in a precarious position in the event of another financial crisis.

While it would probably not go bust in a fresh downturn – he predicted the bank which is crucial to the German economy would face serious equity problems.

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New financial MELTDOWN set to sink EU as German banks lose £14,292,610,000.00 in 90 DAYS

As yet another reminder, and you may well already know after being a reader here for a while, Deutsche Bank has over $70 trillion in derivatives exposure. We could be seeing the effects of that right now. What’s more, Commerzbank is a “Tochterunternehmen” of Deutsche Bank. In English, that’s to say it’s a subsidiary. Therefore, the true scale of DB’s exposure is not 100% known. In this century’s total economic collapse race, Germany is making a strong push to be the first in the world. America’s in the same boat, but it has a better method in kicking the can down the road.

 

EUROPE’S biggest economy was plunged into fresh chaos tonight amid warnings a new financial crisis in Germany could destroy the EU.

Shares in Germany’s two biggest lenders – Deutsche Bank and Commerzbank – fell sharply again as panic gripped global markets. They have now seen their combined market value plummet by more than £14BILLION in the past three months.

Deutsche Bank shares fell by nearly four per cent to close at an all-time low amid turmoil not seen since the depths of the financial crisis in 2009.

Meanwhile shares in Commerzbank, Germany’s second biggest lender, fell even further, by 4.65 per cent, to close at their lowest level in nearly two-and-a-half years.

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To Win the Second Cold War

BERLIN/MOSCOW (Own report) – A fellow of the German Council on Foreign Relations (DGAP) advocates intensifying confrontation with Russia and declaring organizations in EU countries, receiving support of Russian citizens “agents of the aggressor.” In a recent paper, published by the DGAP, Vladislav Inosemzev is calling for “the West to mobilize the necessary resources to win the second cold war.” These include political, but particularly economic measures. The steps proposed by the DGAP fellow, would result in comprehensive economic warfare against Russia and serious measures against “Putin’s apologists.” Meanwhile, the discussion of policy towards Russia continues in Berlin. Business circles insist on ending sanctions because they fear billions in business losses and the loss of a strategic market. The German government is therefore again contemplating concepts à la “transformation through trade,” according to an insider. These concepts aim at profitable business for German companies, in spite of political confrontation – as in the first Cold War.

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Amid Greece debt crisis now GERMANY runs out of cash as strikes trigger crisis

STRIKING workers in Germany have triggered a cash crisis and a looming threat to the European powerhouse economy.

On Monday, train drivers began a seven-day long walkout that has left transport and supply chains in the country in chaos.  Continue reading

9 Ominous Signals Coming From The Financial Markets That We Have Not Seen In Years

Is the stock market about to crash?  Hopefully not, and there definitely have been quite a few “false alarms” over the past few years.  But without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash.  That doesn’t mean that one will happen now, but we are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time.  So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again.  Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.

#1 By the time the markets closed on Monday, we had witnessed the biggest three day decline for U.S. stocks since 2011. Continue reading

Fears of triple-dip eurozone recession as Germany cuts growth forecasts

Anti-austerity movement gains confidence as largest economy suffers from falling industrial output and geopolitical crises

Germany has slashed its growth forecasts for this year and 2015, sparking calls for a public spending boost to prevent the eurozone falling into a triple-dip recession.

Berlin now expects growth of just 1.2% this year and the same in 2015, it said on Tuesday, down from 1.8% and 2%, in the face of slowing export growth.

It came as official Eurostat figures showed that industrial production across the eurozone slumped in August by an alarming 1.8% month-on-month, meaning it was 1.9% lower than a year ago.

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‘The Fourth Reich’ Has Arrived

The Fourth Reich has taken over Europe, according to Il Giornale, a right-wing Italian newspaper. In a headlining story last Friday, Alessandro Sallusti, the editor in chief for the paper, asserted that Italy is “no longer in Europe. It is in the Fourth Reich.”

These bold comments come in the wake of recent non-productive talks between Italy, Spain and the European Central Bank (ecb) over fiscal aid for the two struggling members of the eurozone. ecb President Mario Draghi has put pressure on Italy and Spain to formally apply for aid from the bank before any steps are taken to provide assistance. If either nation were to make a formal request, strict conditions would be enforced by the ecb in exchange for buying its bonds—strict conditions that would essentially put either nation at the mercy of the German-influenced ecb.

Germany is not making many friends at the moment, but frankly, it doesn’t need to. The euro is crumbling, Italy is in trouble, and there is only one place Europe can turn to. If Germany chooses to bail out indebted Europe, expect Germany to exact its full pound of flesh in return—and that means economic, if not more political, control. Although a crumbling Europe is a negative for Germany’s economy, Germany is taking full advantage of the crisis to consolidate its control over the continent.

Full article: ‘The Fourth Reich’ Has Arrived (The Trumpet)

It’s too late for other Europeans to be as efficient as Germans

While some see China or Russia becoming the next dominant world super power(s), the core of what drives Europe (Germany) is more likely poised to take the stage. People have disdain for cheap quality Chinese products flooding the world, and also being a health issue (lead contaminants). After the middle east, Russia is mainly a leading energy provider in gas and oil as well as a weapons salesman/proliferator to enemies of the west. There is also a large distrust of Chinese and Russian intentions globally in general. After China, Germany is the second largest exporter and represents one of the top five largest economies in the world

To put in perspective how far their reach goes product-wise, here are some examples:

Audi, Volkswagen, BMW, Mercedes, Porsche, Lufthansa, Adidas, Puma, Boss, FC Bayern Munich, Dr. Oetker, Siemens, SAP, T-Mobile, MAN, Nutella, Nivea, Bayer, Bosch, Persil, Maggi.

Germany has the manufacturing capacity. Germany has the technology. Germany has well known and trusted brands throughout the world. Germany is the most populous country in Europe, thus having largest labor force. Germany is currently also dominating Europe, dictating terms to neighboring countries in economic plight and restructuring the continent to it’s vision. For many, Germany taking the leading role in the world might be a surprise, but not for those that follow current European events.

You know the old euro-joke about heaven and hell. Heaven is where the British do the policing, the Italians are the lovers, the French are the cooks and the Germans do the engineering. Hell is where the British are the cooks, the Germans are the lovers, the French are the engineers and the Italians run the place. Yes? There are all sorts of variants being chortled over in the bars of Brussels, but that is the gist.

Well, the European set-up is heavenly at least in the sense that the Germans are unquestionably the engineers. In this celestial world we currently occupy, the cars are German, the washing-machines are German, the fibre-optics are German, the high-value medical scanners are German and the machine-tools are German. The only thing is that the result is very far from heavenly for most of the economies of Europe. In fact, the whole experiment is looking more hellish by the day.

Full article: It’s too late for other Europeans to be as efficient as Germans (The Telegraph)