Germans Begin To Suffer From Europe’s Woes
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  • @ “he worries whether the money in his pocket will be worth anything a year from now.”

    How about 4 or 5% less than it does now? Several years of moderate inflation would not spell the end of the world. Germany needs to get over its hyperphobia.

  • hyperphobia: n, fear that any inflation presages hyperinflation.

  • Kenny

    Oh, Mr. Mead.

    You write, “If things continue to go badly in Europe, neither the Germans nor the Americans will escape the problems that are headed our way.”

    No kidding?

    The fact is that neither the U.S. nor any part of Europe can escape the damage done to the world economy due to massive debt and deficits of the governments.

    Don’t you get it?

    The chickens of decades of reckless spending are coming home to roost. The Day of Reckoning is fast approaching. Nobody will be able to avoid the pain .. except the corrupt government & financial elite who feathers their own nests at the expense of their respective countries.

    There will be pain everywhere. The idea is to minimize it by doing the right thing now, and the right things does NOT include going deeper into government debt in order to ‘grow’ or to increase government spending which is already out of control.

    There is sooooo much fat and waste in government, yet nobody seems interested in going after it. We’re locked in a power dive,
    and we’re heading straight into the ground.

  • Cunctator

    Very interesting. But, if I am not mistaken, the state of Berlin has essentially been bankrupt for years now — but Berlin is a wonderful city to visit (well certain non-German areas are less welcoming) and one would never guess at the economic distress below the surface.

    I would be curious to know what is happening in the smaller towns and cities. WRM is visiting the major urban centres and, like Berlin, they perhaps can hide the impact of bad economic tidings for a little longer.

  • Anthony

    To paraphrase a well known financier: it is difficult to be a good house in a deteriorating neighborhood; either neighborhood improves or value of house declines.

  • john haskell

    I wonder why the Greeks aren’t more thankful for all the efforts the Germans have made to bail out the German banks that loaned too much money to Greece.

    Oh well, you know how it is, you bomb someone’s house so they can be free, then they turn on you in wrath and accuse you of having horrible motives.

  • Rhodium Heart

    What alternative universe do left-liberals like Commenter #6 live in, that taking on too much debt is only the fault of the creditor who loaned it to you and that you, the debtor, are absolutely powerless to stop all that lending? Those poor Greeks! Forced to live well beyond their means for SOOOOOO many years by those nasty Germans. The Greeks should be on-their-knees thankful that European indebtedness problems aren’t solved today like they were for thousands of years of human history. Of course, if Greece were to be invaded and the people carried off into slavery, it’s not like you could get them to do any work. And, of course, the Greeks would demand that they be allowed to retire from slavery with full pension at age 52.

    I just don’t understand how the whole edifice/artifice of Europe hasn’t collapsed yet. That is the unsolvable mystery. Three years and counting of life on the verge. When’s the verge going to happen?

  • Tblakely

    Yeah, those poor helpless Greeks. Mean, nasty banks forced the Greeks to take those loans and then forced them to waste it on unsustainable, social spending.

    Those bastard banks. /sarc

  • Thucydides

    “I wonder why the Greeks aren’t more thankful for all the efforts the Germans have made to bail out the German banks that loaned too much money to Greece. ”

    What, the German bankers forced the Greeks to take out loans and sell bonds government at gunpoint? German bankers (although they should have known better) placed their trust in the “good faith and credit” of the Greek government (and all the other PIIG nations as well) in the expectation these governments and societies were following the rules they agreed to when they joined the EU.

    The scam was exposed, but the bankers and their investors (i.e. the people who deposit their money in the banks in the expectation they are buying high quality assets) are now in a position to loose 60% or more of their equity (deposits).

    If anyone should be reacting with fury it should be the Germans, and if they start moving in and seizing any salable assets to recover their losses, I won’t be too surprised, nor will I shed a tear for the Greeks.

  • How about 4 or 5% less than it does now? Several years of moderate inflation would not spell the end of the world. Germany needs to get over its hyperphobia.

    You should absolutely keep whistling past that graveyard on your left. Nothing to see here. Nothing at all. /sarc

  • SEer

    I’ll add a clue that will effect us all: like the situation the Germans find themselves in, the same minorities in the U.S. who currently oppose any cuts in gov’t spending (due to the cuts THEY would suffer) will be the very same folks who INSIST on cuts at some time in the near future when the beneficiaries are primarily the old whites who are providing the majority of the tax revenues now. Plan on it-

  • newrouter

    “If things continue to go badly in Europe, neither the Germans nor the Americans will escape the problems that are headed our way.”

    glenn beck 2009

  • Walter Sobchak

    Luke Lea: “Several years of moderate inflation would not spell the end of the world.”

    Spoken like a person who:

    1. Is too young to have lived through the 1970s as an adult trying to make ends meet.

    2. Has no savings of his own.

    3. Believes that macroeconomics is a science.

    I am old enough to have lived through the 1970s, lucky enough to have accumulated some savings, and wise enough to know that macroeconomics is intellectual masturbation with fancy statistics. The German people are smart enough to reject your wiseacre version of economics, and the American people are loosing patience with Ben Bernnake and his sophomores.

  • Steevo

    As an American you understand their feelings but you should also understand over the years they’ve had no problem degrading you, me and our country for what they are now just getting a taste of. Just like in Greece, Sweden etc. Germany, the center of Europe has been ripe with anti-Americanism. They don’t deserve the criticism, nor our sympathies.

  • l hope he is wrong but l fear Kenny , #3 , is right. Our best & brightest elete leadership class has been playing fast & loose with reality far to long. They have enabled wishfull thinking amongst the most uninformed with their policies while at the same time making them ill equiped to ride out the looming storm. Yet thru it all Kenny is again right , the bulk of the pass thru $ sticks to their fingers. How can it possibly be fixed when they own the chairs , the table , the big house it is in. Meantime we are in the fields pulling the weeds of they know best.

  • Conor

    I must admit, there is a bit of Schadenfreude in seeing the Germans unfairly resented and hated for having a productive economy and trying to help their neighbors. Welcome to the club! But at the same time, I think the level of anti-Americanism among your average German is overstated. The is the rabidly anti-American left — like there is in every country (including in America) — but the average person doesn’t hate the United States at all. Many even understand and appreciate the fact that Germany has a good reputation in the United States. So I certainly don’t wish the Germans ill — the better their economy is, the better off we all are.

  • I like the crumbling neighborhood perspective (above). It’s applicable at so many levels, not the least of which is my own city – building a wicked cool city hall, b/c – you know – everything good revolves around the bureaucrats, control-freaks and cheese police. I keep trying to get them to understand that, no matter how much money they think the city has allocated for this monster, the residents, school dist, county, state, country and planet are broke; they will come to claw that allocated money back – one way or another.

  • Mark L

    The best response to someone who accuses you of selfishness when you do not provide enough charity to satisfy them? “Oh. I didn’t realize I was selfish. In that case, I guess I better keep all of my money from here on out because — as you point out — I am selfish. Goodbye.”

    Then find a better outlet for your charity.

  • Michael

    As a German it pains me to say the Steevo (commenter #14) sadly is correct in pointing out that the Germans — or more accurately the German MSM, which however had a noticeable effect on the population at large — for years, or rather decades, have been heaping scorn on the US, its citizens and its culture. (In doing so, we proved to be very ordinary, i.e. snobbish and ignorant, West Europeans.) If therefore some Amercicans now want to revel in some anti-German schadenfreude, well, that’s all too humanly understandable.

    Germans in a sense are the Americans of Europe, and only very slowly and reluctantly now beginning to realize it. In analogy to the Americcans, we are considered fair game for bashing by many other Europeans because

    a) we allegedly are oh-so-strong and hence, unlike, say, Luxembourg, can take it; in fact, we even need to be controlled and reined in (see: 20th century history);

    b) again due to 20th century history we even morally deserve it, bashing us is (forever?) legitimate due to our past Nazi sins. The US composite functional analogy would be slavery, Vietnam etc.

    c) because, in the eyes of many Mediterraneans at least, we have no culture — another analogy with the US.

    Steevo, I very well understand your sentiments. Maybe our own experiences (and much more anti-German resentment is in store for us in Europe) will, on a modest scale, also teach us a little about the dilemma of leadership — damned if you do, damned if you don’t — and over time contribute to a better understanding of the US too.

    Meantime, things will get a lot worse in Europe before, hopefully, they get better.

  • msq

    It will be the French that piss off the Germans, you would think that they would know better. But the biggest advantage of socialism is the immediate cancellation of all history. maybe this time they will pile the bodies high enough to make socialism work.

  • teapartydoc

    I can’t remember. How long was it between the hyperinflation of Diocletian and the adoption of the gold solidus by Constantine? Wasn’t the solidus still the coin used through late antiquity long after the Empire fell?

  • Chuck Pelto

    TO: Walter Russell Meade, et al.
    RE: Heh

    …you pay and pay to help others, only to have them turn on you in hatred and wrath, accusing you of horrible hidden motives and denouncing your selfishness. — Article

    Give money to a bad debtor and he will hate you.

    Regards,

    Chuck(le)
    [Old adages hold true, even more so today.]

  • PM

    The most ironic comment I saw recently was Schaeuble’s response to the proposal for a European aid program– he was incredulous at the thought that any country would give as much as a few percentage points of its GDP away to other European countries for several years in order to stabilise their economies.

    You know, like the Marshall Plan.

    60+ years later, and the Europeans still can’t get their you-know-what together.

  • Eurydice

    I don’t think poster #6’s comment is leftist at all. It’s merely pointing out that if the German banks were not so heavily involved, German “charity” might not be so bountiful. Also, what in the world did all these countries think they were signing on to? Didn’t it occur to them that a common currency would mean that all the problems would become common as well?

  • Chuck Pelto

    TO: PM
    RE: Heh

    You know, like the Marshall Plan.

    60+ years later, and the Europeans still can’t get their you-know-what together. — PM

    Maybe THAT explains why the Europeans hate US…..

    Regards,

    Chuck(le)
    [The Truth will out….]

  • Steevo

    Michael (#19), you’re remarkably objective – a wise man. I do hope the best for you and all Germans like-minded.

  • CCC

    Good!!!

  • Michael

    Steevo,

    thanks for the flowers. I am confident that your home is also florally quite nicely decorated.

    I wish we had American gun laws here. Oh well.

    Best, Michael

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