"V" is for Victory!

Sadly not for Blighty, but rather for the Jerries - here's the Economy Minister, Peter Altmaier, holding up the Fatherland's V-shaped GDP recovery ...

https://www.google.com/amp/s/amp.dw.com/en/germanys-pandemic-recovery-raises-age-old-questions-about-european-economy/a-55090733

Yet it is already clear that Germany's economy is faring much better than its closest European equivalents France, Britain, Italy and Spain. Its GDP fall for the lockdown quarters was substantially less than those countries while its recovery for the third quarter of the year is projected to be much better.

How did the Jerries manage to do an encore of their spectacular post-WWII 1950's recovery that saw Germany have its most prosperous two decades in history?

Firstly, an intelligent lockdown that zapped the virus but kept production going ...

According to Lars Feld, chairman of the German Council of Economic Experts, Germany's reasonably positive economic situation is driven by the fact that its lockdown was never as strict as elsewhere in Europe.

"Despite lockdown measures, an interruption of value chains or lower private consumption due to considerable uncertainty, the German economy continued a considerable part of its activity. For example, the construction industry had very low restrictions," he told DW.

And secondly, a full-fat 88mm Panzerschreck rather than Blighty's skinny 60mm Bazooka ...

Another major help is the massive financial support the German government has provided to businesses and citizens, something it was able to do after years of frugality in terms of its budget.

The "bazooka," as German Finance Minister Olaf Scholz called it back in March, amounted to close to €1 trillion ($1.16 trillion) in aid when everything from state-backed loans to the country's much-admired Kurzarbeit scheme is included.

"The German economy has had more reserves than other European economies, be it with respect to fiscal space due to successful consolidation of public finances in the past or with respect to private firms which have a sound equity base in general," says Feld.

"Dank Gott" for Dave Cam and George Osborne and their Thatcherite austerity in the good times when Blighty was in the EU and leading the GDP stats of the developed world that she even has the skinny 60mm Bazooka of £350bn to aim at the problem!

And what about the rest of Europe?  Well apart from the €750bn EU Bazooka funded in large part by the Jerries - yes, that's in addition to their own €1tr! - the Jerry value chains of supply burrow deeply into Europe, meaning EU member states benefit from the Jerry €1tr as well ...

"A strong German economy could serve as an economic engine for other EU member countries, in particular regarding the strongly developed value chains in Europe," said Feld.

"The quick takeoff of the German economy triggers demand in other EU countries. It should also be kept in mind, that the high credit-worthiness of Germany is a strong backup for the EU budget and the ECB balance sheet, both allowing other countries in Europe to restart their economies without further turbulences, e.g., on financial markets."

Meanwhile, of course there will be one state not benefitting from the double Panzerschreck of Jerry and EU fiscal largesse, hidden behind the parapet of tariffs and differing standards rules and regs, cut off from supply value chains like an army encircled in a pincer movement.

Good call 23rd June 2016.

SoD

 

 

Comments

[Wigner’s Friend]

Except that we, like Germany, would have been giving rather than receiving.

[Loz]

We'll have nothing to give soon enough, Wiggers, and we'll be on the receiving end again like 1975 when we were bailed out by the IMF, if that's what you're after.

SoD

[Backofanenvelope]

The Germans are hollowing out the EU. 40% youth unemployment in Spain; 30% in Italy. Sooner or later the whole thing will implode and the Germans will be rewarded.

Luckily for the UK, we voted out in 2016.

[Bob]

"Your meddling in continental affairs, and trying to make yourselves a great military power, instead of attending to the sea and commerce, will yet be your ruin as a nation. You were greatly offended with me for having called you a nation of shopkeepers. Had I meant by this that you were a nation of cowards, you would have had reason to be displeased; even though it were ridiculous and contrary to historical facts; but no such thing was ever intended. I meant that you were a nation of merchants, and that all your great riches, and your grand resources arose from commerce, which is true." - (attributed to) Napoleon

Maybe invading the Falkland Islands again would make you feel better. And yes, I do see the irony in an American writing this.

[Backofanenvelope]

Try and be accurate Bob. We didn't invade the Falklands, we liberated them.

[Bob]

Backofanenvelope,

And it was less expensive than liberating Iraq.

[JK]

Iraqi Freedom was and is a misnomer.

That was an invasion.

[Glesga]

Bob, you are delusional or just lying.The UK Army is not large enough to defend itself. Us old guys me and David Duff would have to manouver our zimmers to the front line using public transport.

[Wigner’s Friend]

SoD,

Some sense here:

https://www.conservativewoman.co.uk/memo-to-boris-hold-your-nerve-and-ignore-barnier-the-blusterer/

[Bob]

Glesga,

Thank you. I will seek help immediately.

[Bob]

JK,

Then why did the Bush II administration originally name it "Operation Iraqi Liberation"? Just because the acronym is OIL?

[JK]

Well Bob the rendering of our Fourth Amendment was called 'The Patriot Act' if you'll recall.

Something about GW's naming conventions I suppose.

[Whitewall]

Looks like "No Deal" with the EU. Leave. There never was going to e a deal.

[Whitewall]

be. Dammit.

[Glesga]

Whitewall. The EU will not accept the integrity of the land and sea UK borders. The EU are a dictatorship. It is soo sad that many countries are now economically under the thumb of this mob of criminals moreso the Irish Republic and the poorer Southern EU States. Maybe they will get some bottle and recover their pride, hopefully!

[Whitewall]

Jimmy, I guess something had to replace the USSR.