#14 Germany News – German Central Bank: Economy to Improve ‘markedly’


Logo of Deutsche Bundesbank, Frankfurt am Main, Germany (Photo credit: Wikipedia)

Germany’s central bank anticipates that their economy will show a big improvement in the second quarter. The first quarter was very weak. They believe this to be true because they expect companies to begin investing in equipment and machinery. Industrial orders were up by 2.2% in March which was unanticipated.

The German bank, Bundesbank, did warn that there is still high risk because of government debt in other euro countries. Germany has low interest rates while Italy and Spain have higher rates making it harder for people to solve the problems of a recession. Growth suffers when governments need to raise taxes and impose spending cuts.

Second quarter growth figures will be available in mid-August. Hopefully, they will reflect a gradual recovery.

Response: 

After all the problems of the eurozone countries including a recession, this article brings some hope. For their sake. I hope the Bundesbank is right and second quarter will show significant growth.

http://www.miamiherald.com/2013/05/21/3408180/german-central-bank-economy-to.html

#13 Germany News – Europe At Odds Over Next Steps to Banking Union


German Finance Minister Wolfgang Schaeuble sorts files at the beginning of the weekly cabinet meeting at the chancellery in Berlin, Germany, Wednesday, May 8, 2013. Photo: Michael Sohn

Europe is in a muddle! Seventeen European countries are part of the European Union (EU). Most of the seventeen wish to move quickly in getting a regulator for central banking and an authority that can help the failing banks. They want this to happen quickly because of their more-than-three-year debt crisis. The eurozone’s debt crisis was caused by Europe’s banking industry. Property investments nearly brought the European banks to collapse and Spain and Ireland came to their rescue. This rescue has brought on a high debt level.

Recently the seventeen eurozone finance ministers met in Brussels, Germany.  Olli  Rehn, the EU’s top financial adviser  argued in favor of moving quickly to form a banking union. He believes such a union would help to make more jobs and employment possible.It would make investments possible that are necessary for jobs and recovery. He believes a banking union isn’t to rescue the banks but to make a flow of credit possible.

Berlin, however, doesn’t want to move quickly because  to set up an authority to rescue the banks would mean changing  EU treaties and that would be very time-consuming! One finance minister said Europe should go as far as it possibly can with the treaties that exist and then see what might need to be changed. He insisted that they could go very far and that it should be done now!

Even though Germany is dragging its feet and wants to move slowly most countries can’t understand why they should hinder any possibility of  making progress on forming a banking union and, hopefully, begin to turn their debt crisis around.

Response:

If nearly all seventeen countries want to move quickly and form a banking union, and, if indeed it would help to reverse the debt level, then why not? Isn’t it okay to believe that  in the majority there is safety?

http://www.sfgate.com/business/article/German-finance-minister-suggests-2-step-bank-union-4510160.php

#12 – Germany News – Why Germany Cannot Escape Inevitable Inflation


BERLIN, GERMANY – The Reichstag (Getty Images via @daylife)

The contributor, Stephen Leeb, thinks inflation for Germany is inevitable. But Germans hate inflation! In 1921 – 1924 inflation was so severe that the Weimar Republic issued one trillion mark notes to overcome the severe catastrophe. The Great Depression followed in the 1930s and in most respects was far worse then in the 1920s. Yet by controlling the flow of money, there followed a time of steady growth and the Nazis came into power!

Leeb believes today there is an economic analogy similar to WWII. In the 1930s Germany suffered greatly due to worldwide austerity. Now Germany is exercising its dominance over Europe. The euro is used exclusively in 17 European countries, but the euro is of much less value than the German mark would be if European countries could trade freely withe the German currency. The German mark gets less valuable as it combines with the currencies of countries that are much weaker.

English: Germany 500 marks 1923 (inflation time)

English: Germany 500 marks 1923 (inflation time) (Photo credit: Wikipedia)

Germany is greatly skilled in manufacturing and leads worldwide in exporting more goods as a percentage of its GDP. Germany exports more cheaply because of its undervalued currency and in this was takes advantage of other countries in their attempts to export.

Dienstmarke - Inflation - 400000

Dienstmarke – Inflation – 400000 (Photo credit: Wikipedia)

Eventually, Germany will meet inflation. If one or more European countries have political changes they may dissolve the euro and if there should be a sudden rise in the German mark it will drastically affect the German exports. If Germany doesn’t ease up on its dominance of European countries, trouble is in the offing.

Response: 

It seems so unfair that Germany should take advantage of other European countries in exportation and in use of the euro. Apparently European countries won’t withdraw from the euro because they are afraid that they would have to endure another massive inflation and they think that inflation is far worse then depression.

http://www.forbes.com/sites/greatspeculations/2013/05/08/why-germany-cannot-escape-inevitable-inflation/

# 11 Germany News


Sign reading arbeit, German for labor, work

Germany has worked through the financial crisis very well according to Christoph Köhler, a German sociologist. They are doing well in the global market. However, there are big divisions among those who earn high salaries and those with low salaries. There are also divisions among secondary and primary employment.

Köhler believes that there will continue to be opportunities for highly – skilled persons. There will be a future for their young people. Meanwhile, the employment opportunities for low – income people is stagnating and even shrinking. This isn’t because of immigrants, he writes, but it is the Germans themselves.

Christoph Köhler, head of the Institute of Sociology at Jena University

How to solve the problem is controversial. The middle class doesn’t approve of having the socially disadvantaged children in the same schools because they believe their own children will get a worse education. So they want school segregated.

There is also division about employment and how to improve the benefits for the unemployed. Some want to introduce a minimum wage for everyone and reduce irregular employment contracts. Others fear that approach will lead to high labor costs and more joblessness. Köhler thinks the motto is that it is better to have poor employment than none at all!

education (Photo credit: Sean MacEntee)

Response:

It seems to me that Germany’s situation is not unlike the United States. We have lots of unemployment. The gap between highly – skilled and the unskilled is widening. We also have educational issues. Some parents don’t want the disadvantaged kids in the same classroom for the same reasons as the German middle class. I hope the United States can figure out a way for our children to get a good education regardless of social status. It is not by dismissing teachers and crowding more students into a classroom. Each person deserves dignity, respect, and opportunity.

http://www.dw.de/opinion-germanys-labor-market-is-split/a-16781544

# 10 Germany News


At 590-feet long, the Azzam is the world’s longest superyacht is the length of two football fields.

Bremen, Germany launched Azzam, the world’s largest superyacht on Friday, April 5. It’s the size of two football fields and cost $609 million. Nauta Yachts in Italy designed the superyacht, but Lürssen Yachts in Bremen, Germany built it. It took four years to complete its construction. It’s equipped with two gas turbines and two diesel engines which produce 94,000 horsepower and can go as fast as 30 knots or 35.5 MPH.

The Azzam is designed to provide accommodations which are luxurious and sophisticated. It will take a fifty-person crew to man the superyacht. The owner of this monster is still a mystery. The yacht will be delivered to the owner sometime in 2013. The building of this superyacht is a milestone in yachting history.

Milan-based Nauta Yachts designed the Azzam for a year and Lürssen Yachts in Germany constructed the behemoth private vessel in three years.

Response: 

We live in a world of hurting people. Due to war and natural causes, many people are hungry and homeless. It seems to me that God would have been very pleased if this enormous amount of money would have been used to help the poorest of the poor around the world.

The Azzam, which launched on Friday, will be delivered to its mystery owner later in 2013.

http://www.nydailynews.com/news/world/world-longest-superyacht-azzam-launches-germany-article-1.1310110?localLinksEnabled=false

# 9 Germany News – Germany’s Band Of Brothers


Band of Brothers (TV miniseries)

Band of Brothers (TV miniseries) (Photo credit: Wikipedia)

Last Sunday evening millions of Germans and Austrians were glued to their televisions to watch the first part of Unsere Mutter, Unsere Vaeter (Our Mothers, Our Fathers). This broadcast featured a close up view of the experiences of German young people during World War II. It was a response to a wartime series called Band Of Brothers which was broadcast a decade earlier.

The miniseries tells the stories of five friends who met in a cafe in Berlin to celebrate their friendship and youth before entering the war. What follows is their stories of disillusionment, lost careers, hopelessness, and death.

The miniseries is an attempt to help the German and Austrian people to be compassionate and caring to the older generation, the seniors, among them who were the youth during World War II and witnessed the horrors of the war in Nazi Germany.

Response:

I think a broadcast like Unsere Mutter, Unsere Vaeter would ignite all kinds of emotions for the elderly folks. It would invoke the horrors of World War II and the dreams that never materialized for them. Joining the armed forces is advertised as noble and good. But as this television broadcast confirms, it dashes hopes and dreams and brings with it sadness, devastation, and death. Wars don’t bring peace and happiness to countries or individuals.

http://www.huffingtonpost.com/franzstefan-gady/germanys-band-of-brothers_b_2992364.html

#8 Germany News


Joachim Gauck, president of Germany, recently gave his first major speech to 200 guests at Bellevue Palace in Berlin. This occurred after being in office nearly a year!

He spoke about the mood of the German people brought about by the eurozone debt crisis and globalization. He insisted change must occur, a renaissance highlighting equality, cooperation, tolerance and solidarity. He called for the European people to take an active part in bringing about change, challenging them to contribute to change.

President Gauck prefers to talk with individuals, with ordinary citizens. But he says what he thinks regardless of who it is, even on controversial topics.

He has visited all the countries that surround Germany. He also visited Israel and urged them to stop building settlements.

He sees hope in the young people, listens to their questions, and attempts to give answers.

In surveys, the German people seem pleased with their president after his first year in office. Only 10% critized him.

Response:

According to this article, President Joachim Gauck must be doing a good job. He speaks his mind but he also listens. He makes good contacts and builds relationships by traveling to other countries. He cares about individuals, especially the youth. The survey shows that most German people seem very supportive of him.

http://www.dw.de/how-has-germanys-president-fared-one-year-in/a-16678907

#7 Germany News


“German Economy Minister and Chairman of the Free Democrats political party (FDP) Philipp Rösler and Rainer Brüderle, Chairman of the FDP Bundestag faction smile during the FDP national congress on November 13, 2011 in Frankfurt am Main, (Photo: Getty Images)”

Rainer Brüderle was named Germany’s Free Democratic Party (FDP) lead candidate for the September 22, 2013 national elections Sunday. More than 600 delegates attended the FDP’s convention in Berlin and gave him a five-minute standing ovation. Philipp Rösler won a second two – year term as party chairman for FDP on Saturday. He had 85.7% support.

Fantasy logo of the Swiss liberal Free Democratic Party (Photo credit: Wikipedia)

Nationally, FDP’s popularity has dropped significantly below the 5% cutoff mark partly due to failed promises that were made to cut taxes. Brüderle told the delegates at the FDP convention that he knows everyone will fight and go into battle with him. After the speech, Rösler handed Brüderle a  football as a symbol of fighting together.

In September Chancellor Angela Merkel is seeking a third term for the Christian Democratic Union (CDU). Merkel prefers to govern in a coalition with the FDP. However, if the FDP fails to get the support needed to reach the Germany’s National Parliament (Bundestag) support threshold it would be a big blow to Merkel in seeking a third term as Chancellor. In 2009 the FDP support rating was 15% nationwide.

“Deutsch: Logo der CDU”

Response:

This seems to be a very critical time for Germany in which a lot of hard work needs to be done before their national elections in September. However, Brüderle did say that the FDP made the CDU a lot better then before. Without it, Germany, would be in a much worse state then it is today.

http://www.dw.de/fdp-elect-br%C3%BCderle-as-lead-candidate-ahead-of-german-election/a-16662018

http://www.dw.de/fdp-one-party-two-chairmen/a-16659222

# 6 Germany News


ARCHIV - Blick in den Konferenzraum im Londonderry-Haus während der Unterzeichnung der Verträge zur Regelung der deutschen Auslandsschulden am 27. Februar 1953. Sie regelten in erster Linie die Wiederaufnahme der Zins- und Tilgungszahlungen auf die deutschen öffentlichen und privaten Auslandsschulden aus der Vorkriegszeit. Viele Deutsche schimpfen über die Griechen, aber auch die Bundesrepublik brauchte schon einmal internationale Finanzhilfe. 1953 wurde Deutschland entschuldet - unter anderem Griechenland unterschrieb das Londoner Schuldenabkommen. dpa (nur s/w - zu dpa-Korr «Als Deutschland entschuldet wurde - Staatengemeinschaft half» am 19.09.2011) +++(c) dpa - Bildfunk+++

Sixty years ago half of Germany’s debts were canceled. Germany had been hopelessly in debt after World War II. However, in 1953, the London Debt Agreement was signed and “the German economy was given room to breathe again.” So says Ursula Rombeck – Joschinski, historian of  Stuttgart University. Economic growth after the war was extraordinary, but wouldn’t have been possible without the debt agreement. Proud Germans call this growth the “economic miracle.” School children have been taught that the Germans are hardworking and that they “were supported by US money after the war.

Municipal workers march during a protest against austerity measures in front of the Greek Parliament building in Athens, Greece, 09 November 2012. Greek lawmakers on 08 November began debating next year's budget, hours after parliament passed a new round of austerity measures that are a precondition for the country to receive its next round of international aid. EPA/FOTIS PLEGAS G.

“The parallels with Greece today are hard to overlook”

Germans seem to have forgotten that they were hopelessly in debt after World War II. Germany owed around 30 billion Deutschmarks to around 70 countries. The Britons thought Germany could pay back everything. “But the Americans blocked them because they had an interest in making sure that Germany had money left over for other things, especially rearmament.” So “around half of the debts were written off, the rest restructured for the long term.” In addition, a foundation was laid for Germany’s export strength. It “could only service its debts as long as it earned  money through foreign trade.” That meant “creditors had an incentive to buy German products. ” Greece today is highly indebted to Germany because of billions spent on German tanks. Perhaps Greece and Germany could agree to a trade balance in order for Greece to pay for their debts also.

  •  It’s not being honest if German students aren’t taught about the canceled debts. They should know the truth about why Germany’s economy grew and that it was more then just German people working hard!! 

http://www.dw.de/german-economic-miracle-thanks-to-debt-relief/a-16630511

#5 Germany News – Immigrant Problems


Refugees shout slogans during a protest by asylum seekers calling for fairer treatment from authorities as they pass through Brandenburg Gate in Berlin, October 13, 2012. “Refugees shout slogans during a protest by asylum seekers calling for fairer treatment from authorities as they pass through Brandenburg Gate in Berlin, October 13, 2012.”

The immigrants to Germany from Austria, Italy, and other countries are seeking asylum in Germany. They are frustrated and impatient. To make a point, they erected tent camps to draw attention to their situation. Volunteers, local residents, and the migrants themselves run the camps. The movement has three demands:

  1. Abolish the camps
  2. Abolish deportation
  3. Gain the freedom of movement in Germany

The only hope of these immigrants seems to lie in the possibility of a newly, elected government next fall. Until changes are made in the laws the immigrants appeared to be stuck!

Asylum seekers stand outside an accommodation at a refugee holding centre in the town of Bad Belzig some 135 km (84 miles) south-west of Berlin, December 12, 2012.“Asylum seekers stand outside an accommodation at a refugee holding centre in the town of Bad Belzig some 135 km (84 miles) south-west of Berlin, December 12, 2012.” 

 Response: 

  •  Immigrants around the world seemed to have similar problems. The United States is presently trying to implement laws regarding immigrants to the US. I know someone who was deported from the US to Taiwan. I think we should be more sympathetic to the plight of immigrants and the reasons for their desire for freedom. 

http://www.voanews.com/content/immigrants-in-germany-struggle-for-legal-status/1608942.html

# 4 Germany


Deutsch: Zentrum für Europäische Wirtschaftsfo...

Deutsch: Zentrum für Europäische Wirtschaftsforschung (Photo credit: Wikipedia)

The economic global markets are:

* European shares rise 0.9 percent after strong German data

* Yen firms as Japan plays down foreign bond buying plan

* Euro steady after Draghi says eyeing down draft on inflation

There has been a growth in the German shares and it is bringing hope to the recoveries.

‘Even if the real economy only lives up to half the expectations, … any fears of a technical recession should turn out to have been unjustified,’ ING economist Carsten Brzeski said of the German outlook following the ZEW survey.

The Zentrum für Europäische Wirtschaftsforschung or The Centre for European Economic Research (ZEW).

ZEW is subdivided into the five research fields:

  • International Finance and Financial Management
  • Labour Markets, Human Resources and Social Policy
  • Industrial Economics and International Management
  • Corporate Taxation and Public Finance
  • Environmental and Resource Economics, Environmental Management;

and three research groups:

  • Information and Communication Technologies
  • Growth and Business Cycles
  • Competition and Regulation

The German market has two parts; the Yen Firms and Consolidation Mode.

The Yen Firms are elsewhere in the currency market.  “The yen rose after Japanese ministers played down talk of foreign-bond buying by the country’s central bank, and sterling, another currency in the spotlight, remained near a seven-month low.”

The Consolidation Mode is the “gradual improvement in the global economic environment has supported commodities, though concerns about Italy’s election this weekend and talks in Washington over a package of budget cuts set to kick in on March 1 have helped limit gains.”

Response: 

  • Their economy isn’t really that strong. I think that they need more of a motivation and more of a hope and blessing. 

http://en.wikipedia.org/wiki/Zentrum_f%C3%BCr_Europ%C3%A4ische_Wirtschaftsforschung

http://www.reuters.com/article/2013/02/19/markets-global-idUSL6N0BJ3QD20130219

#3 Germany News


Picture of Ilse Aigner, Member of the German B...

The horse meat scandal has been confirmed. The Consumer Protection Ministry has confirmed that 179,000 packages of frozen, ready – made lasagna imported into Germany contained horse meat. However, the products were not labeled that way. A German newsmagazine, Der Spiegel, suggested that, that figure could be doubled! German supermarkets had taken the product off their shelves and testing is being “stepped up” Germany’s consumer protection minister, Ilse Aigner, suspects that the use of horse meat was deliberate and “has been carried out with a great deal of criminal intent.” She is meeting with her counterparts to discuss further measures in the scandal. Laboratories can now do DNA testing to determine the meat used in sandwiches and frozen dinners. The process is quite simple and relatively quick.

  • It’s kind of like our mad cow disease epidemic and the issue of “the slime” in our meat in the USA. 

http://www.dw.de/horsemeat-scandal-hits-germany-with-full-force/a-16604366

#2: Technomedia Expands Global Presence Into Germany


Technomedia

Technomedia announced by February 11, 2013 that there was an opened office in Mannheim, Germany. “‘Germany is a high potential market for us and opening an office there is in perfect alignment with our international development strategy,’ explained Alain Latry, President and CEO, Technomedia. ‘It’s a dynamic and mature business climate with companies of all sizes needing to address critical talent management issues.'” Technomedia also has other reasons that are compelling to be in Germany.

  • My response to all this is that Technomedia will now be tracking Germany also. I thought that it was a good idea to put Technomedia into Germany because then the Germans could at least have a better market economy. 

http://www.marketwire.com/press-release/technomedia-expands-global-presence-into-germany-1755340.htm

#1: Geography


gm-map

Location- Central Europe. It’s bordering the Baltic Sea and the North Sea. Germany is also located between the Netherlands and Poland which is south of Denmark.

  • Where Germany is located is an interesting place to be. Yet I find it kind of harsh even though there can be a lot of changes and other things too.  

Area- Total: 357,022 sq km; Country comparison to the world: 63, Land: 348,672 sq km; Water: 8,350 sq km.

  •  Germany is the 63rd country compared to the world. Also how big it is, I would consider going there but yet I don’t know. 

Climate- temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

  •  The temperature is kind of coolish cold and yet likely to get cold more often and get sick also.

Natural Resources- coal, lignite, natural gas, iron ore, copper, nickel, uranium, potash, salt, construction materials, timber, arable land.

  •  They have a lot of resources. The main resource is coal and lignite. 

Terran- lowlands in north, uplands in center, Bavarian Alps in south.

Coastline- 2,389 km.

Land Use- Arable Land: 33.13%, Permanent Crops: 0.6%, Other: 66.27%.

  •  The land is not as arable as the other countries. Plus they have a lot of land on their hands. 

Geography Current Issues- “Emissions from coal-burning utilities and industries contribute to air pollution; acid rain, resulting from sulfur dioxide emissions, is damaging forests; pollution in the Baltic Sea from raw sewage and industrial effluents from rivers in eastern Germany; hazardous waste disposal; government established a mechanism for ending the use of nuclear power over the next 15 years; government working to meet EU commitment to identify nature preservation areas in line with the EU’s Flora, Fauna, and Habitat directive.”

  •  The issues in Germany are more definite then most other things.    

Age Structure- 

Median Age- The total: 45.3 years.

Population Growth Rate: -0.2%.

Birth Rate- 8.33 births/1,000 population.

Death Rate- 11.04 deaths/1,000 population.

  •  The population growth is less than what our country is. But yet there is more of that control to Germany. 

Economy- Overview: “The German economy – the fifth largest economy in the world in PPP terms and Europe’s largest – is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country’s social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession – the deepest since World War II – and its decrease to 6.0% in 2011. GDP contracted 5.1% in 2009 but grew by 3.6% in 2010, and 2.7% in 2011. The recovery was attributable primarily to rebounding manufacturing orders and exports – increasingly outside the Euro Zone. Germany’s central bank projects that GDP will grow 0.6% in 2012, a reflection of the worsening euro-zone financial crisis and the financial burden it places on Germany as well as falling demand for German exports. Domestic demand is therefore becoming a more significant driver of Germany’s economic expansion. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL’s second term increased Germany’s budget deficit to 3.3% in 2010, but slower spending and higher tax revenues reduce the deficit to 1.7% in 2011, below the EU’s 3% limit. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country’s 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its energy and 46% of its base-load electrical production.

  • The economy of Germany is more problematic then most other countries in the word. 

GDP- $3.55 trillion.

Labor Force- 43.67 million.

Public Debt- 80.6% of GDP (2011 est.), 82.4% of GDP (2010 est.).

  •  Their GDP is more then what is accounted for. 

gm-lgflag

Flag Description- “Three equal horizontal bands of black (top), red, and gold; these colors have played an important role in German history and can be traced back to the medieval banner of the Holy Roman Emperor – a black eagle with red claws and beak on a gold field.”

  •  The Flag has a great significance to the Germans in their country. Even though there are most complicated things that are worst then the economy. 

Religion- Protestant: 34%, Roman Catholic: 34%, Muslim: 3.7%, unaffiliated or other: 28.3%

  • There are more Protestans then most other religions in Germany. I thought that there were more Catholics then Protestants. 

https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html