OFFICIAL: For every € the EU crisis costs Berlin, it earns 12 times more in exports…

….and America isn’t doing badly out of it either

In the midst of European debt turmoil and a ClubMed economy-destroying austerity programme driven from Berlin, German exporters are pulling in €100 billion+ of extra business every year. That’s according to Nathan Sheets, Citigroup’s chief economist based in New York. And this export bonus represents almost twelve times the €8.7bn the country is contributing each year to the ESM rescue fund.

Heavily criticised by many (including me) for being inflexibly mad, the real plus for her national economy is now audited for all to see: Greece, Spain, Italy and Portugal may be crippled by enormous bond yields and socio-economic scorched earth, but when it comes to German exporters, their private view will be, “the longer it goes on, the better for us”.

Germany enjoys a euro that’s 20% weaker than the Deutschmark would probably have been; and if one adds the inflow of low-cost safe-haven bond money, the benefit for Berlin is around 30%.

Of course, the high cost of borrowing in Europe based on debt doubts is also a boon for the country with the biggest debts of all, the United States of America. Its bonds too are trading at almost unprecedentedly low yields, and nobody pushes the need for continuing euro-austerity more than Christine Lagarde, head of the US-controlled IMF – and the woman Tim Geithner refers to in private as “our gal”.

I’ll say she is: almost completely Americanised, Lagarde worked for over 30 years in the States as a heavy-hitting corporate lawyer, and never forgets for a second where her loyalties lie. For the US too, a lingering austerity programme that never comes to a head (and never causes a bank failure) is the win-win solution: no Wall Street collapses, cheap US sovereign borrowing….and Europe neutered as a competitor in a shrinking world market.

This is not to suggest a conspiracy or anything approaching it. Germany is over-exposed to potential EU write-offs, and the US Fed knows perfectly well that eurobank failures are still near-inevitable.

I record these Citigroup and other facts purely for the usual purpose of evidenced bollocks deconstruction: next time you hear Merkel complaining about the stress being put on Germany by lazy Clubmedders – or Geithner saying that the US economy and deficit were in great shape until Yerp screwed it up – remember those recorded factual realities.

While there is a lack of real brainstorming to help solve the EU’s appalling problems, blamestorming is no substitute for that.

The German, Brussels, Frankurt ECB, and American elites bent the law to either get ClubMed into the eurozone, or flog them cheap sovereign loans they could never afford to repay. The blame should be evenly spread for this mess between all participants in banking, politics and government. The last place it should reside is with the ordinary citizens of any of those countries…almost all of whom are paying through the nose (via their taxes) for the megalomania and corrupt greed of their leaders.

59 thoughts on “OFFICIAL: For every € the EU crisis costs Berlin, it earns 12 times more in exports…

  1. She and Schäuble and others will also tell any who are there to hear that the aid to Greece is twice as big – as a percentage of GDP – as the Marshall that launched Germany’s Wirtschaftswunder. That claim could do with a little testicular unravelling. Over to JW


  2. There will not be any bank collapses, they will just prop them up again like the last time. In truth, they, if they were going at all, should have collapsed a long time ago. If you imagine a circle with the centre being the point of collapse, then we are just moving continuously around the circumference, we don’t really get any closer to the centre.
    As I said before we will still be discussing this this time next year.
    Remember JW saying some while ago that ‘his mole’ said the EZ wouldn’t get past the Autumn? I think it’s looking like it will now. Don’t you?


  3. So: Germany gets the soft touch. Yummy for some! I would like to add a little aside here. Britain has effectively devalued its currency by no small margin, yet still lags Germany in terms of exports.

    Oh, and completely off-topic. BT was speaking about British exports to the Eurozone. I spoke to a German from Dresden today, who spoke excellent Dutch (as well as German of course!). For sales in NL, that is a big advantage. Sure, I know that everyone speaks English here – but the question is not that they do, but if you will sell more to a Dutchman speaking English or Dutch. The margin, I assure you, means it is worth learning Dutch if you want to export here.


  4. InTelegent, you are totally right. If you dig a bit into numbers you will realise that most of the money lended to Greece by Troika, go back to ECB – they are used to pay for the Greek bonds that ECB/EFSF holds (plus interest). A small percent goes to assist the state budget deficit, so that pension system won’t crack at the seems…which is bound to happen in the next months anyway. As for development assistance, Marshall plans, investements….nothing, nix, zero!


  5. @Gemz: Yeah, I accept your criticism about Brits not speaking other languages and trying to do business in English. It’s the 70yr American influence doncha know! And yes, when a forriner fails to understand us in English our normal response is to repeat ourselves at a higher volume.

    It has its benefits …English is the accepted international language for all kinds of things including doing business and flying etc.


  6. ” For every € the EU crisis costs Berlin, it earns 12 times more in exports…”
    Well… of course. Did people think Germany was being philanthropic? I have never known Germans to give away money… or not find a way to make a killing. I have noticed an interesting phenomena… many people addicted to MSM think of the bailout LOANS as some kind of “gift” Germany is giving Greece. Of course they are making money… what, did people think they were helping their EU partner Greece?… come on.


  7. 48 Billion of 53 Billion annual budget goes back to propping up Euro zombiebanks… and keeping the worlds fake financial system afloat.


  8. Gemz, off thread I know but being over there and all I wonder if you could tell me what the average randstaad voter thinks of Geert Wilders? Man of the future? Local nutter? Figure of fun? Visionary? Someone we’d rather not talk about?


  9. @BT: if only my business associates in UK could understand that they need to speak Queen’s English, when we’re calling in for tech support….:-(
    It really affects business you know. In the past, we had to drop a partnership with a UK telecom vendor, because of this lack of communication.


  10. As an Englishman that has lived in Holland, and who does speak Dutch, I can say I really didn’t see a problem doing business in Holland speaking English, in the workplace my Dutch was actually pretty irrelevant. The reason I learnt it was because it helped me more in my social life and helped me get more involved.
    As to German exports well the small matter of being 20% undervalued as was stated .


  11. Soapy

    there is a big difference between working in an English-speaking “international” business such as yours – and they are common enough, right across the world. However, the point I wanted to make was that to sell to ordinary business people here, your knowledge of Dutch would be an immense asset. Even that little touch at the beginning – enough to say “yup, I lived there” – would be enough to tell them that you had a respect for their culture.

    To my point of view, your comment was quite legitimate.


  12. BT – see my response to S. McT below.

    It is the international language, but just as academics don’t want to read turgid treatises at home whilst relaxing, speaking in simple and effective language that allows them to feel more at home will help. JW as a copywriter will be well aware of keeping his writing clear and direct.


  13. Ioannis

    I have never known an American, Greek or Brit – let alone a German or a Chinaman give money away freely. It is part of the modern economic system. As has been mentioned earlier, the monies transferred largely go straight back into banker’s coffers. The German public are as much at a loss here as the ever-increasing debt burden of peripheral countries is almost certainly unpayable. That means they won’t see that money for a very, very long time – if ever. On the other hand, the banks lap it up.

    As an aside, the US lent lots of money to the UK in the time of the First World War – and wanted every penny repaid, with interest. It took three generations to manage that. Guess what Germany did in those circumstances, but that was quite as damaging.


  14. Pingback: John Ward – Official : For Every € The EU Crisis Costs Berlin, It Earns 12 Times More In Exports… And America Isn’t Doing Badly Out Of It Either – 17 July 2012 | Lucas 2012 Infos

  15. Jon

    Geert Wilders’ party the PVV (Partij voor de Vrijheid or somesuch) has around 15% of the seats in the Dutch second house. That is to say, a little more than the likes of Nigel Farage could count on if there was an equitable voting system in the UK.

    He is not popular amongst the more intelligent Dutch – and the Dutch are notoriously well educated. The working classes however find him more appealing. I would suggest that those who are really aware of Dutch politics, they are cautious about the PVV. They have been part of the government, and so have been seen for what they stand for. That cannot happen in the UK in the same way.

    None of your descriptions fit the man. He is an extremist, and is seen as such. The likes of Farage get a bad name simply because he cannot command seats in parliament – and were there more people would have a more balanced view of him. Possibly more negative too.

    There is considerable anti-Muslim feeling in NL. Holland is essentially a Christian country for all its modernity. Yet Mosques are being built in prominent places which is not helping matters. Sure, there are substantial Muslim areas to be catered for, but that does not mean that the building must be so obvious.


  16. Nick M

    As for development assistance, Marshall plans, investements….nothing, nix, zero!

    Is it not true that the entrepreneurial Greeks left during the time of the Colonels – that is the view of many. Were they to be encouraged to return, that would be a beginning – yet for that to happen, the Greek system of business would need to be freed up. Greeks who pay their taxes in Melbourne and Chicago would probably do so in Athens as well, that for one thing would be a help.

    Sadly my taxes are going to pay for banks and interest, not where it is needed.


  17. Once we had kingdoms ruled by kings,

    Then we had empires ruled by emperors,

    Now we have countries…


  18. Wilders was after my time in Holland but I lived in bothe Rotterdam and Den Haag. Their immigration levels, particularly in Den Haag were in my view ridiculous. We have a lot of immigration in England but really nothing on what’s happened there. Gemz is right the Dutch on the whole are a well educated bunch,but it would not surprise me if many Dutch had serious and understandable concerns about it, which may pick Wilders up some votes


  19. @Gemz: True – good point. There are still some entrepreneurial people left in the country, there are still private businesses in SME sectors (like mine) that struggle to make it out. And there are still some academic minds with brilliant ideas to contribute on planning. None of the above has real power. Corruption (plus greed, stupidity) is like a cancer on Greece’s body. There are parts totally infected – others still healthy and struggling.
    What i meant is
    a) as you point, Greece needs structural reform big time. Local PTB has done almost nothing in this direction, and local society still lives in a lie…
    b) we also need help from abroad. Brussels/Berlin PTB also did nothing in this direction. Fatty promises, bureaucratic plans, totally amateurish.
    (i do understand here that no help is granted for free – what i expected from EU is to come up with a serious, realistic win-win plan).


  20. I can’t speak for the other countries Gemma, but the generosity of the British is legendary if the cause is close to their hearts. I suspect you’re confusing Government official foreign aid with gifts from the people or maybe the proximity to Brussells has expunged thoughts of the common people from your immediate thinking?

    War loans tend to be just that, a loan, seems churlish to criticise the terms of the loan post event, unless you’re minded to engage one of those ambulance chasing PPI legal eagles and sue that nice Mr Obama for mis-sold war loans?

    Maybe we could get together with you guys bordering La Manche and sue as one in a rare case of real unity?

    Wouldn’t that be ironic, America, a spent land that invented the litigious society brought to book with a class action by a spent European union!


  21. Yes they did! especially: the Greeks, Spanish and Italians.. spend spend spend-” Money for nothing and the Drinks are free”.< Quote from song another quote from Chris Rea Song…"Money is all just bits of paper… Flying away from you"

    I wonder was it just my family who talked about "those Germans are up to something" 1974?


  22. We are talking about THAT GERMANY who charged murder victims the rail fare to their impending death – not only that: made millions from selling stolen property and emptying murdered victims bank accounts- why they even tore the tatoos from Gypsies and sold them to make lamp shades… a real enterptising bunch them Germans AND.. it was all LEGAL. If Eurpoe had a shirt.. the Germans will have it off their backs as soon as…


  23. I always made a point of trying to learn the language
    in any country I have lived.Urdu,Farsi etc.,
    Most difficult was American.Sounds English,but the words
    don’t mean the same thing in both.


  24. Miss B

    all you quote was legal, it was not moral.

    Putting things the other way around, what did the Europeans do in America to the natives? Or Australia? or … any number of places that Europeans – British, Dutch, Belgian? Did you know that in order to certify that a criminal was executed in the Congo, their hand would be cut off and transported to Kinshasa? In order for it to survive the weeks of journey they were smoked.

    Oh, and the British invented the concentration camp. Some of my forebears suffered in those. What loveliness.

    Of course, the British Navy was so popular in the 1700s and 1800s that they pressed men below decks. The conditions there were not so nice. In the war of 1812 many Englishmen fought the Royal Navy* because of the terrible conditions they suffered under having been pressed. (*On the American side where the ships had room to stand up in. On a British warship you had to be under five feet to walk around easily).

    So, please, before throwing stones, look to your own glass windows. The corruption in Europe, Britain, America etc. etc. is what is at fault here, not the better and more hopeful parts.


  25. Monk
    I was thinking more of the business community.

    Freely given help is the mark of a free human. That they do not have to does not mean that they do not. (If you can untangle that little lot!).

    My point is that freedom requires more than just words, scribbles or noises, it is something that is active, it is a verb not a noun. If you want to be free, you have to do it. It won’t come looking for you, and you can’t whistle and expect it to come running.

    It lies outside the formal contract of debt and credit – those are mechanical forms. Is it not the point of the Slog – or one of them? – that debts are forgiven?

    You cannot forgive without giving, nor can you forgive and expect to levy terms. It is entire, or it is nothing at all.

    There are people in any land who are generous, and know the meaning of real freedom. The more they give, the happier they are. Those who expect a return on their money, and are prepared to use force to receive it, are not.


  26. Nick i fear that is worse than what you describe . I personaly beleive that stupidity and corruption is so wide and deep that any attempt to fight them becomes unpopular measure.


  27. John may advocate forgiveness Gemma but I’m more a default sort of guy. Of course that’s more to do with me thinking that they do know what they do rather than the straightforward Jesus peddled version.

    There’s a honesty about default that the cloying goodness of forgiveness can never achieve given it’s nature of never being allowed to be forgotten, a caveat forgivers usually insist on.

    Creditors need to see pain visited on those that borrow, especially if they’re not getting it back.

    Default and hurt is a natural leveller as we all end up with fvck all, it’s easier that way, fairer too.

    Forgiveness fosters bitter people.

    That was the beer talking Gemma, in case you’re wondering…..


  28. Pingback: OFFICIAL: For every € the EU crisis costs Berlin, it earns 12 times more in exports… / Eίναι επίσημο, για κάθε ένα Ευρώ που η Ευρωπαική κρίση κοστίζει στο Βερολίνο , κερδίζει 12 φ

  29. Really very real GEMZ
    all you quote was legal, it was not moral. > Indeed, I think that bit went over your head.

    I would not dare to excuse or apologise for my forefathers behaviour. I was not seeking to extract the same from the German people of today. My point is The Germans are reknown for not doing something for nothing- in the context of the thread and subject matter John was highlighting. If you would be so kind as not to assume I do not know My countries history- thank you. I never hold back my opinions which I express when the opportunity arises, to condem political leaders of My country which in my opinion is still commiting crimes against humanity. I will ‘throw stones’ as you call it – as and when I chose, in whatever medium I chose. Feel free to call me names and tell me off… Just don’t expect me to take any notice.


  30. Slightly off topic but very relevant to the ongoing scams, machinations and downright fraud of the E.U. politicians and bureaucrats, anyone who has the slightest interest in being relatively up to speed and conversant with the multitude of facts and figures relating to the E.U. and its motives and objectives should purchase a copy of this book by,
    Dr Lee Rotherham
    Everything you wanted to know about the European Union but didn’t know who to ask.

    I have no financial or any other personal involvement in this book, my only interest is that as many people as possible should have access to the wealth of not easily obtainable information contained therein.


  31. Thankyou, to be honest, that makes two of us. Stand up for what you believe is right.

    As to “not doing something for nothing” – that could be levelled at any industrialist across the planet, let alone a German one.


  32. M

    default, forgiveness, outright rejection – something needs to happen before the banks get their interest paid on the interest that is paid on the interest that is paid on the interest on the debt taken out by our dear leaders.


  33. @Nick M: Trust me, you’re not the only one who suffers. There are banking call centres and other places I call where I can hardly understand what they’re saying. As a Brit southerner with a slight twang of American/Aussie/South African in my own accent plus liberal use of modern jargon which most call centre staff don’t understand, telecalls can get very difficult.

    @Winston: There are some really nice American accents, mostly from the southern states. IIRC a guy in Dallas,Tx once swore blindly that I came from Pennsylvania. He couldn’t believe it when I told him I was from London, England.


  34. Mr Ward SIr,

    I’m very sorry……
    I’ve done it again.
    I write all the things in my little head, and all that happens is that I end up upsetting your other readers.
    I can’t help myself, I just keep thinking outright nonsense, and those thoughts run down my arms to my keyboard. I would write letters to my friends instead, but I don’t have any friends any more. They all asked me to stop writing my non stop unadulterated thoughtless and untrue, innaccurate NONSENSE


  35. “The blame should be evenly spread for this mess between all participants in banking, politics and government. The last place it should reside is with the ordinary citizens of any of those countries…almost all of whom are paying through the nose (via their taxes) for the megalomania and corrupt greed of their leaders.”

    Beautifully said John! It should be mounted on a bronze plaque and put in every town square in the world.


  36. [Off Topic]

    Dang. Jer know wot? Wot I fink. If I fink it den uvvers fink it too. I knows dat coz I got brians. I got lots of dem. They are all sitting in my head. If I need one, it glows from the effort. Then it sits up and I fink.

    Clevver folk dey fink, right? Coz clevver folk all think same fings. That makes me clevver coz I fink wot I fink.

    Dijjerknow jer pushes de button and jer gets letters out! It makes me look clevver. Trollikins is good at pushing buttens. It takes lots of time. Cross out. Hard workk.

    Eat blue food terday. Sit on floor eat. Good. Good to eat. Must eat. Makes yer fink. There is lots of food coz it cums in three cullers. Dang! my brian hurts.


  37. That the British Established Concentration camps is a fact. That they were initiated to protect non combatant civilians (and did just that) from rampant diseases (and mistaken attack) at the time is often forgotten. Yes some in those camps died but outside of them in the general population the death rate was (if I remember rightly) about 10 times higher.

    The association of Britain and (Nazi style) Concentration camps is a much trolled myth by those who like to do down Britains historical ‘greatness’.


  38. Pingback: GREEK TRAGEDY: Austerity…up to but not including the military and other elites | A diary of deception and distortion

  39. Pingback: John Ward – Greek Tragedy : Austerity … Up To But Not Including The Military And Other Elites – 18 July 2012 | Lucas 2012 Infos

  40. Reblogged this on Free Ireland and commented:
    Am I surprised? No. Gone are the days, if they ever existed, when people actually cared at all about anyone other than themselves. It is patently obvious that the whole ponzi scheme is designed to transfer wealth to the wealthy and to hell with the consequences for anyone else.

    It is perfectly acceptable for the 4th German Reich and Big Israel to profit from the woes of the poorer Europeans and of course absolutely right that as much wealth as possible should be transferred through austerity measures. /sarcasm


  41. Pingback: GREEK TRAGEDY: Austerity…up to but not including the military and other elites [The Slog] « Mktgeist blog

  42. Pingback: EUROBLOWN: Surprise surprise, Greece set to get debt rescheduling and forgiveness deal | A diary of deception and distortion

  43. Pingback: John Ward – Euroblown : Surprise, Surprise, Greece Set To Get Debt Rescheduling And Forgiveness Deal – 20 November 2012 | Lucas 2012 Infos

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