100 years on Germany ‘pulverizes’ Europe

I found this ‘frightening’!

Falling for Germany:

“Germany’s exceptionalism is obvious. Whereas electorates across the European Union have punished their governments for the Great Recession and the euro crisis, Germans reelected Chancellor Angela Merkel and displayed strong support for her party, the Christian Democratic Union (CDU), in the recent election. Indeed, as with postwar Germany’s first leader, Konrad Adenauer, there are jokes about Merkel being Chancellor for life (Germany has no term limits).

Elsewhere, populist anti-European parties of the right have been gaining ground with campaigns directed against immigrants and minorities, especially Muslims. This has fueled concern that the populist bloc will be the largest in the European Parliament after next year’s EU-wide election.

Germany, by contrast, has no anti-European party with any serious support. Even the newly formed Alternative for Germany – which did unexpectedly well in the recent election, finishing just short of the 5% threshold needed to enter the Bundestag – insists that its anti-euro agenda is not anti-Europe. They want to end the common currency, because, in their view, it is undermining the European ideal.

Against this background, Germany’s neighbors have been showing their love – or at least admiration. At the end of 2011, Polish Foreign Minister Radosław Sikorski called upon Germany to take a stronger leadership role in Europe. This year, confronted with a revival of nationalist sentiment, former Polish President Lech Wałęsa – the leader of the anti-communist Solidarity movement – suggested that his country should enter into political union with Germany.

Likewise, as France slides into a governance crisis and its leaders’ credibility rapidly erodes, the leading French intellectual Alain Minc has published Vive l’Allemagne (“Long Live Germany”), in which he argues that Germany is Europe’s healthiest and most democratic country.

In Italy, the bourgeoisie of Milan and Rome have made a point of spending winter days dressed in characteristically German Loden overcoats. When Italian philosopher Giorgio Agamben recently appealed for a Latin empire to assert itself against Germany, his call was widely rejected, with several of his contemporaries asserting that, on the contrary, Germany should serve as a model for Italy as it seeks to overcome its current malaise.

Even in the habitually Euro-skeptical United Kingdom, Prime Minister David Cameron has sought to boost his international credibility by highlighting his close ties with Merkel, rather than by emphasizing the UK’s “special relationship” with the United States. Revealingly, the writer Miranda Seymour’s recently published book Noble Endeavours reminds Britain of the centuries-old love affair between Germany and England. Maybe the royal family will go back to styling itself the House of Hanover?”

Hope it doesn´t end with Germany ‘overseeing’ a bunch of “Vichy governments”.

Silent movie

6 thoughts on “100 years on Germany ‘pulverizes’ Europe

  1. Pingback: | The Corner

  2. “At the end of 2011, Polish Foreign Minister Radosław Sikorski called upon Germany to take a stronger leadership role in Europe. This year, confronted with a revival of nationalist sentiment, former Polish President Lech Wałęsa – the leader of the anti-communist Solidarity movement – suggested that his country should enter into political union with Germany.”

    Distressing.

    But based on my own highly biased, personal, and anecdotal perceptions, Polish distrust of Germany is so deeply ingrained in our DNA that political union with Germany is absolutely impossible.

    When I was last there I even noticed that farm animals were nervous around German speakers.

    http://www.dailymotion.com/video/xmj0ug_arrest-orders-from-casablanca-1942_shortfilms

    Captain Renault: “Carl, see that Major Strasser gets a good table, close to the ladies.”
    Carl: “I have already given him the best, knowing he is German and would take it anyway.”
    Casablanca

  3. The fed paper that proposes a lower employment threshhold to the evans rule also takes a look a NGDPLT

    Click to access english.pdf

    “We found that in our model these proposals(NGDPLT or shifting to a higher IT) could improve economic outcomes if the change in framework is well understood by the public and is seen as credible. However, these are strong maintained hypotheses, and we noted that both proposals push very hard the assumptions of rational expectations, full credibility and absence of doubt about the model, in order to deliver their promised benefits. While there may be some situations in which such changes would be appropriate, given that they involve significant communications challenges we argued that a cautious approach was appropriate, and that central banks should carefully consider the potential risks and costs of these approaches as well as their possible benefits.”

    • That chart Fig 12 is interesting but they could/should have looked at RGDP and CPI revisions too. That 2007 Q4 nominal income turned out to be 5% than initially reported is a bit of a red herring, the growth rate is surely more important. That 2008 Q4 was not really 2% too low is irrelevant to the tens of millions thrown out of work. What was the 2008 Q4 nominal income forecast growth rate, at the time? I think we know, and we know the disastrous results.

  4. You know, sometimes I like analysis, parsing, careful position papers etc. But sometimes, I just say, “Print more money print more money, put the printing press on high and print money until the plates melt.”

    After five years of central bank dithering since 2008, I think my “lazy” side was right: Just print more money, and keep printing it until you see robust growth. Then we can work out some details…

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