Disastrous Manufacturing Figure Herald German Economic Recession

Germany has long been the prop that held up the economically feeble EU, in which more than helf the 27 members that will remain in the bloc after Britain leaves are economic basket cases (some due only to the strictures of Eurozone membership, others because of the traditional weakness of their national economies,) so with Germany slipping towards the recession we and other well informed blogs and news site have predicted since Merkel’s ‘open doors’ immigration policy allowed a couple of million iliterate, uneducated, unskilled and unemployable immigrants to flood into the country, incresing the bill for welfare services exponentially, problems for Germany’s high – tech manufacturing led economy which needs highly skilled, well educated and adaptable workers and professionals was inevitable.

When we wrote about the early signs of recession in the German economy we were scoffed at, called far – right nut jobs and conspiracy theorists, and inevitably, racists because anyone but a racist would know that a couple of millon unemployable immigrants living on benefits can only boost a high – tech economy.

Today, for all the auusurances by Europhile politicians and bureaucrats that everything in the European Union is on the up and up, Germany is on red alert for recession following the biggest collapse in activity for its mighty industrial sector since the financial crisis. Technically Germany already is in recession, they’re just not willing to admit it.

The eurozone’s bigge,t and most powerful economy relies on exports but its car industry has been punished by a slowing global economy,   government policies promoting electric vehichles which nobody want to buy because they are hideously expensive and useless, and the fallout of the trade war between the US and China.

Financial information service IHS Markit’s latest snapshot of Germany’s manufacturing growth – where a score under 50 signals contraction – dipped to 41.4, its worst level since 2009, as demand from non – EU trading partners slumped. There were also worrying signs that the manufacturing slump is spreading to the service sector after firms in that sector experience their first fall in new business since 2014.

Confidence among German businesses is the weakest since 2012, private sector job creation is stalling after six years of growth and companies are eating into backlogs as new orders begin to dry up, the figures showed.

Germany’s economy shrank an overall 0.1pc between April and June. Monday’s dire survey data comes after recent official figures showed a sharp 0.6pc drop in industrial production in July.

Phil Smith, principal economist at IHS Markit, said Germany’s manufacturing data was “simply awful”, with combined readings for services and manufacturers “firmly in contraction territory” and the weakest for almost seven years.

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Cracks In EU Unity Facade Are Beginning To Show

Coincidental with the bizarre events in the UK’s Supreme Coirt, where judges tried to usurp the power of parliament to themselves in a globaloist bid to stop Brexit, the economic situation in Europe, which as we have reported many times is dire, has entered into a critical period.  With one of the two net contributors o the EU treasury about to leave,Germany, which for decades has propped up the bloc financially as more and more economic basket cases were absorbed into Brussels’ wannabe empire, has stumbled into if not actually a recession then something very like one

Year on Year (YoY) growth in the German economy, from July 2018, July 2019 is 0.4% – what you would expect in the middle of a depression, and significantly less than the official inflation rate (while the real rate of inflation is, predictably, higher still. UK growth figures are slightly better coming in at 1.2%. Poor old Italy recorded a GDP growth of -0.1% YoY, (that’s a minus sign by the way).

Italy has a Debt-to-GDP ratio of 132% and finally France with a growth rate of 1.4% and a debt-to-GDP of 97% is effectively broke. That’s the big four in the EU/Eurozone.

So, the biggest economies in EU/Eurozone have a growth rate ranging from -0.1% to 1.4%. Oh, and I almost forgot negative interest rates are now becoming the norm in The Eurozon and 85% of German Bunds are non-performing and/or at negative interest rates.

Inexplicably the ECB is getting geared up for another round of QE, which means that the euro is going to be devalued. Of course, the Americans aren’t going to be best pleased with this turn of events but doubling down on the policy that failed is par for the course with the EU. Only a few years ago they decided the way to resolve the problem of mass immigration was ………… more mass immigration, and are currently proposing more politicalintegration of member states to counter the resurgence in nationalism triggered by …………….. wait for it ………………. forcing political integration on member states.

By failing to support US trade tariffs on nations that have pissed off Washington, the EU has involved itself peripherally in the US tade war with the world. but this can onlu=y increase problems. Germany in its present economic travails, and lined up to take the biggest economic hit from Brexit, is not going to welcome any increased costs for its export industries.

Most importantly this includes the cost of the raw material essential to Germany’s manufacturing/export sector. Natural Gas and oil are piped to Germany from Russia and the construction the of Nordstream 2 pipeline, which the US wants to alt to put Putin in his place, is crucial to the German economy. America wants to force Germany to buy more expensive, less reliable, Liquified Natural Gas (LNG) by taking alternative suppliers out of the picture and is threatening to impose sanctions on any company and/or state to get their own way.

GERMANY’S ENTSCHEIDUNGSZEIT (DECISION TIME)

This is a clearly a case of “deja vu all over again” and a moment of truth for the Germans. Do they do what the Americans tell them, which would be economic suicide, or will they pursue their national interests and give Uncle Sam the finger. This was precisely the setting in 1985 though with Japan then the object of US financial and economic destabilisation.

The Plaza Accord was a joint-agreement, signed on 22 September 1985, at the Plaza Hotel in New York City, between France, West Germany, Japan, the United States, and the United Kingdom, to devalue the U.S. dollar in relation to the Japanese yen and German Mark. The resulting recessionary impact which pushed up the value of the Yen against the dollar in Japan’s export-dependent economy.

This created an incentive for the expansionary monetary policies that led to the Japanese investment bubble of the late 1980s. The Plaza Accord triggered the Japanese asset price bubble, which progressed into a protracted period of deflation and low growth in Japan known as the first Lost Decade. Has Germany, and by implication Europe learned the lesson one wonders?

Bearing this in mind it should also be noted that Germany is a big investor in Russia.

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Negative Interest Rates – Final Nail In The Coffin Of Neoliberalism?

Negative interest rates, in plain terms a situation in which we pay bankers for holding our money, are the latest ruse of politicians and economists to make uis start spending our investments and savings, thus kickstarting the global economy they have screwed up.

The idea is if your saving and investments are costing you rather than earning a little, you will start spending instead of saving. More likely, when people understand they are being shafted again the backlash will become to big to contain with propaganda.

Click the link to learn more about this latest globalist scam to grab out money

Negative Interest Rates – Final Nail In The Coffin Of Neoliberalism?

 

German economic crisis: industrial output plunges to ‘disaster’ level -other economic data revised down

This news site and our sister publication Original Boggart Blog have spent three years arguing logically and reasonably against the emotionally overwrought ravings of people who supported ‘Remain’ in the 2016 EU referendum and cannot accept they lost. Brexit will be a catastrophe, they scream, people will starve, we wil have no medicines or toilet rolls, no food or water or beer or anything, toilets will explode and spew boiling sewage and blood into our homes, aircraft will fall out of the sky, clocks will run backwards and our nostrils will be assailed by wet dog smelss because no nation of a mere 60 million people can survive outside the EU.

And those of us stubborn enough to pick up the gauntlet have pointed out that Canada (30 millonish) Australia (20someting million, New Zealand (more sheep than people,) and the 85% of the world’s nations that are not EU members seem to do OK. And then we have backed up our assertions with evendence that since the referendum was won by Leave predictions of economic collapse for britain have failed to materialise, while for most EU nations, stagnation is turning into recession. The latest evidence for this is another news item showing the mighty German economy, on which the EU has always depended and will depend even more once the UK leaves, is running into trouble.

Yesterday (6 August 2019) it was announced that industrial production in Germany dropped by a greater degree than expected in June, showing a 1.5% month on month decrease, thus compounding fears that Europe’s biggest economy is facing an imminent recession.

Output fell 5.2 per cent year on year from June 2018, the German national statistics office revealed on. According to Reuters, analysts had estimated output would fall 0.4 per cent during the month compared with May. Production, excluding energy and construction, was down 1.8 per cent.

These figures from Destatis come only a day after the same source revealed that factory orders, driven by an increase in demand from countries outside the eurozone, were higher than expected. While those figures offered a glimmer of hope among a plethora of bad news for EU economies and particularly for Europe’s economic powerhouse, business analysts pointed out that new orders have dropped by an average of 0.7 per cent every month throughout this year.

June’s decline in output “kills off any hopes that the strong orders data published yesterday marked the beginning of a recovery”, said Andrew Kenningham, chief Europe economist at Capital Economics. “Business surveys uniformly point to a further contraction in July, so things look set to get worse rather than better.”

Other economic data published this week included revised down figures for services that showed the sector in Germany had grown at a slower rate in July than had been earlier thought, prompting fears that the eurozone’s biggest economy is heading into a recession.

German website Handelsblatt commented: “If both sides remain stubborn, this can jeopardise the stability of the financial markets.

Concerns that the industrial output drop exacerbates long – standing fears over German economy first appeared on The Financial Times website. That such concerns are being expressed by serious economics writers in a heavyweight publication like The Financial Times exposes the level of scaremongering based on fake news that hasd been used in the Brexit debate by those determined to overturn the result and deny the democratically expressed will of the people.

Germany slips into economic meltdown as US-China trade war escalates
Germany looks to be headed for economic meltdown (as this publication has predicted since early in the year,) due to the trade war between the US and China […] Sebastian Dullien of the Institute for Macroeconomics and Business Cycle Research claimed the German Chancellor is burying her head in the sand regarding how Trump’s tariffs will impact German exports …

Germany: Economy crisis a growth stalls – car production crashes
Germany’s federal Government today reduced its growth forecast for the EU’s largest economy today after for the second time in two months as plunging car production figures sent shockwaves through the Eurozone. The German economy, already technically in recession, has been propping up the economically stagnant EU for years. After Brexit of course …


Europe’s Bank Crisis Arrives In Germany: €29 Billion Bremen Landesbank On The Verge Of Failure

… yesterday we observed a surprising development involving Deutsche Bank, namely the bank’s decision to quietly liquidate some of its shipping loans. Reuters reported, “Deutsche Bank is looking to sell at least $1 billion of shipping loans [a market sector] whose lenders face closer scrutiny from the European Central Bank.


Europe Prepares To Join The Currency War

Things seemed to be going to plan for the European Unon’s single currecncy, The Euro, which was the biggest single step in the plan to merge the twenty eight member states into a single political entity. Ties to the German economic powerhouse the poorer nations of southern Europe could not manage their finances efficiently and soon became dependent on bailouts from the European Central Bank with were made with attached conditions suggested by Germany. It seemed that as long as the German economy prospered the ‘European project,’ (referred to, a tad unkindly perhaps, by this news site among others as Greater Germany,) would stay on track.


Germany admits hard Brexit will cause havoc in EU financial markets – ‘Common sense MUST prevail’

Germany, the EU’s most powerful economy, has urged Prime Minister Theresa May and the EU’s chief negotiator, the pompous French clown Michel Barnier to do all in their power to avoid a hard Brexit due to risks of French instransigence disrupting the financial sector. This would be catastrophic for the EU’s financial markets, though the leading German economists say the prospect is becoming “more likely every day”.

Yanis Varoufakis bombshell: Pound to Euro Exchange Rate ‘Paradox,’ weakness of pound against Euro is good news for UK

posted by Phil. T Looker, 22 July 2019

Former Greek finance minister Yanis Varoufakis claimed the reason why the euro is valued so highly compared to the pound or US dollar is because of a “delicious paradox” which sees the Eurozone actually being on the verge of a dramatic break-up, newly-resurfaced footage reveals.

Despite the uncertainty [surounding Brexit], the euro has largely remained strong since the 2016 referendum but, according to former Greek Finance minister Yanis Varoufakis, there is a shocking reason why this has occurred.

Mr Varoufakis called it a “delicious paradox”.

In a 2018 debate at the Oxford Union, the Greek minister explained: “Why do the money markets value the euro so highly compared to the pound, the American dollar?

“Suppose you are a Singaporean, Chinese, American or even a German investor, and for some reason, you agree with me that the fragmentation of the Eurozone is at an advanced stage, and the euro has never been weaker or more problematic.

“Should you sell your euros?

“No, let me share a secret with you. You should shift your euros to a German bank account.”

Mr Varoufakis explained that if the Eurozone breaks up and all the countries revert to their pre-euro currencies, euros held in German bank accounts will be re-denominated into Deutschmarks, which will be stronger than any other European currencies because of the country’s “huge account surplus”.

READ FULL STORY at express.co.uk

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How Much Does The UK Actually Send To The EU

Big kerfuffle this week over Conservative Party leadership contender Boris Johnson facing a court hearing over his claim, made during the EU Referendim campaign, that Britain sends £350million a week to Brussels. Originally the Rabid Remainers tried to claim somebody in the Leave campaign (they weren’t quite sure if it was Boris, Nigel Farahe, Jacob Rees – Mogg, Michael Gove or somebody else and didn’t really care,) had said all of the money would go to the NHS. Nobody had actually said it of course but such is the solipsism of the globalist camp that if they want something to be true, they can easily convince themseles it is true.

The claim is in fact true but misleading. If the amount paid into the EU budget is taken, then it is close to £350million a week. Our net contribution (i.e. after the amount paid by the EU to fund various EU supported projects means the net amount we contribute to the EU is somewhat less. However that £350million is not the full story:

from The Bruges Group

The true cost to Britain being a part of the European Union is close to £661 million per week since 2010, a number hidden from the British taxpayers due to an intricate payments system and largely ignored by the mainstream media.

Our estimated figure encompasses £80billion lost to the Treasury after the European Court of Justice forced tax rebates to multinationals.

A key area of controversy is on the rebate, an annual, purported “reduction” in United Kingdom’s contribution to the EU budget that’s equal to about 66% of the difference between what the UK contributes to the EU budget and its receipts from the EU.

Even after the rebate, in membership fees alone, Britain shelled out £70.6 billion since 2010.

Data derived from a briefing paper on “The UK’s contribution to the EU Budget” indicates Britain contributed between £8-10 billion per year. The same report acknowledged “the UK made the second largest net contribution to the EU budget in absolute terms, and the third largest net contribution per head of population” in 2015.

If the EU exceeds its budget, as it did in the fiscal year 2014-2015, UK is responsible for footing the difference. We did that year in the amount of £1.7 billion, as reported by the Daily Mail.

The EU demanded the amount after recalculating the income of member states dating back almost 20 years, penalizing the British economy that was found to be larger than previously determined. The article detailed Britain “paid the amount due” in full with two instalments not subject to rebates.

Parliament has no control over these payments since Britain is part of the EU and civil servants are legally obliged to pay these costs. Britain is increasingly relied upon as a financial support structure for Eurozone countries facing serious financial difficulty or at risk of defaulting on their debt

oblications.

>>

EU’s Top Eurofederalist admits EU wants an empire
The leader of the Alliance of Liberals and Democrats in Europe (ALDE)
told CNN that plans to reform the EU and devolve power from Brussels back to the nation-state proposed by the populist paries that have spring up in member states, and led by Matteo Salvin’s Lega (League) in Italy, Marine le Pen and her Rassemblement National in France and Hungary’s Victor Orban, leader of the Fidesz party would mean that the bloc “will die inside.”

Little Donny Tusk The Polish Has-Been Tells Britain How To Vote.


Donald Tusk, who is the President of the European Council and was the centre-right Europhile Prime Minister of Poland from 2007 to 2014 made the remarks in support of his former Deputy Prime Minister, Anglo-Pole Jan-Vincent Rostowski who is standing as a Change UK candidate in London for Thursday’s election.


bYellow Vest Violence Erupts Again, 23rd Straight week Of Protests

Clashes between Gilets Jaunes (Yellow Vest) protesters and French riot police on Sturday (20 April,)during the 23rd straight week of protests across France. Police arrested 137 protesters Euro News reports.

Brexit Is Now About More Than Leaving The EU

Until now we have not posted anything in the past few days on Brexit. Our position is well know to our readers, let’s face it, the saturation coverage left nothing new to be said. The whole thing is a craptangle, but it was obvious from when the Conservative Party engineered a situation in which Theresa May was left as the only candidate for the leadership that there could be no other outcome.

EU “Sounds Alarm” Over New US Sanctions On Russia; Germany Threatens Retaliation
Late on Friday (21/07/17), Congressional negotiators agreed to advance a cross – party bill that would punish Russia for its (alleged) interference in the 2016 election according to the Wall Street Journal. And while it seems improbable that President Trump would sign the bill if it reaches his desk, the loudest complaint about the bill to date has emerged not from the Oval Office, but from US allies in NATO and the European Union …

Nigel Farage Swipes Back At Irrational, Screeching, Crazy Clinton
US Democratic Party presidential candidate Hillary Clinton launched a hysterical, irrational attack, filled with half truths and blatant lies, against the most prominent figure in the campaign to get Britain out of the EU (Brexit), UK Independence Party leader Nigel Farage, during a speech at a rally today. Mrs Clinton, responding to Farage’s address to a large and enthusiastic audience at a Donald Trump rally, may have been rattled at the prospect of having such a hihly effective campaigner in the rival camp …

Rebellion Against EU Authoritarianism Escalates As 8th Member Nation Threatens Referendum
Brussels went too far, they crossed the line in moving from an economic union to a political pan – European political empire. In the end it was a race as to which member state would quit first, Britain, Natherlands, Denmark or Italy. In the event it is Britain.

Is Brexit A Harbinger Of Doom For The ‘Experts’
The Brexit vote, the decision by a democratic majority in Britain to leave the European Union has sent shockwaves around the world. Not only does the EU now face a tsunami of departures, the usurpation of democracy by ‘experts’ ( technocrats ) has been challenged and exposed as a sham.

BREXIT vs. GREXIT – The Truth About The European Union And How It Treats Members
Unless the testicularly deficient politicians stand up for their nations he only thing that will halt the European Union’s push beyond Europe’s geographical borders to incorporate Asian, middle eastern and north African nations is war. Power is addictive and the bean counters of Brussels have ambitions far beyond Europe.

The Hypocrisy and Snobbery Of The Remain Campaign And The Antidote

When I had to defriend a Facebook contact because she was arguing in favour of the EU, it was not simply because I support Brexit that I had become pissed of with her, it was the snobbish and condescending way she dismissed supporters of LEAVE and their case. People are entitled to their opinion on the European Union, but they should check the ‘facts’ they post in support of their arguments.

The Labour Case For Brexit by Kate Hoey M.P.
After my short intro is a savage indictment by Brexit supporting Labour MP Kate Hoey of the way the Labour Party has abandoned the working class and is now trying to betray the party’s proud heritage and its roots in the industrial areas by taking Britain into an undemocratic, corporate controlled, capitalist friendly, elite dominated globalist control freak project.

Dutch Referendum This Week Shows why We Should Leave The EU.
Few of you were aware probably that there is an EU referendum vote in The Netherlands this week. As usual with anything negative about the EU barely a word has been printed in the topic in mainstream media and the silence from our notionally unbiased national broadcaster The Bolshevik Broadcasting Corporation (BBC) has been deafening.

French, Belgians, Dutch, Italians Follow Britain in Euroskepticism
Europeans want us British to lead them out of Europe. Don’t be fooled by project fear, the European Union (aka the Euronazi Federal Superstate) is falling apart. There will not be chaos if we leave, there will be chaos if we stay.

Head Of European Institute: Brexit ‘Better’ For Everyone
Brexit would be the best result of Britain’s in / out referendum for both Britain and the EU i a Belgian professor who heads up the European Institute at the London School of Economics (LSE) has said.

Johnson’s article lines up his reasons why Britain must exit on June 23rd. It’s time to be brave
OK, I know a lot of you think Boris is most accurately described by a word many people find offensive, but he’s put together a very good argument here on why we must leave the EU. Published in part here under ‘fair use’ terms and conditions, in the public interest …

If The Banker’s Cartel And Silicon Valley Are Pushing Cashless Stores We Should Avoid Them

This story is part of CNET’s ongoing Follow the Money series, which looks at how digital cash is changing the way we save, shop and work.

When Philadelphia City Councilman Bill Greenlee heard that a coffee shop and a salad restaurant right near City Hall didn’t accept cash, he thought it sounded unfair.

“I can get my coffee and muffin, but the person behind me who has the monetary unit of the United States of America, that’s been accepted here in Philadelphia since Ben Franklin, can’t?” he said in an interview. “It just seemed wrong.”

So last October, Greenlee (who uses both card and cash) co-sponsored a bill requiring businesses to accept cash. In March, Mayor Jim Kenney signed it into law.

Cashless stores and events are just starting to crop up in the retail landscape with much hoopla — consider the splashy launches of Amazon Go stores —  but they’re already running into hurdles from legislators in cities and states around the country. These governments are concerned that what some see as technological innovation could actually widen societal gaps between those who have access to financial services and those who don’t.

This work could ensure we don’t end up with a future in which there are stores that lower-income people just can’t use. But this legislation may also prevent new cashless experiments from ever taking hold and help cash stay king for a long time.

 

Cash’s demise at the hands of cards, e-commerce and mobile payments has been heralded for decades as a faster and more secure way to pay for stuff. After all, you can’t lose a digital wallet the same way you can lose a real one. Yet cash is still the most frequently used form of payments (representing 30% of all transactions), particularly for smaller transactions (where it’s 55%), according to the Federal Reserve.

While you might opt to pay for a bottle of water with card instead of cash, there’s still a swath of the population that doesn’t have that choice. Roughly 8.4 million households in the US were considered “unbanked” in 2017, according to the FDIC. That means no one in those households had access to a checking or savings account.

Check out Boggart Blog and The Daily Stirrer’s omnibus page on the Cashless Society