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Virtually nothing in this rant about German economic policy has anything to do with the article except for the expression of delight at the idea of individual G

by yborg 7y ago

Virtually nothing in this rant about German economic policy has anything to do with the article except for the expression of delight at the idea of individual Germans losing money. Germany has absorbed a large number of refugees at huge social cost precisely because they believed they could afford it. It seems disingenuous to ignore Germany's role in overall European stability and suggest that the good German burghers hoard money in order to rape the rest of the continent with cheap Volkswagens.

number6 7y ago
Yeah why not buy Volkswagen shares then?
Despegar 7y ago
It's not a rant, it's a slightly tongue in cheek but also slightly serious, analysis of the political and economic reality of Germany and the EU. Individual Germans would actually end up benefiting the most from a change in national religion about saving if their government opened up the purse strings.
Nimitz14 7y ago
It is absolutely relevant! The reason for these negative rates is because of Germany's fiscal and the EU's (influenced by Germany) monetary policy. This is happening because the average German does not understand that having a budget balanced is sometimes not a good thing. As this has caused a lot of misery to southern countries, I think the parent's complaints are totally valid.
- repolfx 7y ago
  The "misery" of the southern countries is merely one of not being able to spend profligate amounts they haven't earned on sustaining unaffordable social policies. To take the most extreme example, Greece, and some problems evident when they hit the buffers a few years ago. Hairdressing and playing the trombone are/were considered dangerous professions by the government, because that allowed people to retire at 50. The pensions in question are vast and the state cannot afford it. Public sector wages rose 50 percent between 1999 and 2007. Tax evasion was rampant. Salaries were very high, industry near none existent. Its books were fraudulent - the country was only able to join the euro at all because it misrepresented the state of the economy. Attempts to fix these problems triggered riots and political chaos, much of which had explicitly anti German rhetoric. The Germans, you see, were being totally evil by not shovelling all their savings into this money furnace disguised as a developed country. What about Spain? Home of the famous airport to nowhere: https://psmag.com/economics/airport-to-nowhere-spains-costly-no-fly-zone-39797 https://psmag.com/economics/airport-to-nowhere-spains-costly... And a giant housing bubble: https://en.wikipedia.org/wiki/Spanish_property_bubble https://en.wikipedia.org/wiki/Spanish_property_bubble Has a large (>2% GDP) government deficit but raised the minimum wage by 22% last year. Germany isn't inflicting misery on southern countries, they inflict it on themselves, and it should by all rights be dramatically worse - and if it weren't for Germans sending them such huge wealth tranfers it would be much worse.
  - samsonradu 7y ago
    And yet, here we are with people buying Greece 10Y treasuries yielding 2%. Almost risk-free...

by yborg 7y ago

number6 7y ago

Yeah why not buy Volkswagen shares then?

Despegar 7y ago

It's not a rant, it's a slightly tongue in cheek but also slightly serious, analysis of the political and economic reality of Germany and the EU. Individual Germans would actually end up benefiting the most from a change in national religion about saving if their government opened up the purse strings.

Nimitz14 7y ago

It is absolutely relevant! The reason for these negative rates is because of Germany's fiscal and the EU's (influenced by Germany) monetary policy. This is happening because the average German does not understand that having a budget balanced is sometimes not a good thing. As this has caused a lot of misery to southern countries, I think the parent's complaints are totally valid.

repolfx 7y ago
The "misery" of the southern countries is merely one of not being able to spend profligate amounts they haven't earned on sustaining unaffordable social policies. To take the most extreme example, Greece, and some problems evident when they hit the buffers a few years ago. Hairdressing and playing the trombone are/were considered dangerous professions by the government, because that allowed people to retire at 50. The pensions in question are vast and the state cannot afford it. Public sector wages rose 50 percent between 1999 and 2007. Tax evasion was rampant. Salaries were very high, industry near none existent. Its books were fraudulent - the country was only able to join the euro at all because it misrepresented the state of the economy. Attempts to fix these problems triggered riots and political chaos, much of which had explicitly anti German rhetoric. The Germans, you see, were being totally evil by not shovelling all their savings into this money furnace disguised as a developed country. What about Spain? Home of the famous airport to nowhere: https://psmag.com/economics/airport-to-nowhere-spains-costly-no-fly-zone-39797 https://psmag.com/economics/airport-to-nowhere-spains-costly... And a giant housing bubble: https://en.wikipedia.org/wiki/Spanish_property_bubble https://en.wikipedia.org/wiki/Spanish_property_bubble Has a large (>2% GDP) government deficit but raised the minimum wage by 22% last year. Germany isn't inflicting misery on southern countries, they inflict it on themselves, and it should by all rights be dramatically worse - and if it weren't for Germans sending them such huge wealth tranfers it would be much worse.
- samsonradu 7y ago
  And yet, here we are with people buying Greece 10Y treasuries yielding 2%. Almost risk-free...