Germany’s public debt is much higher than officially shown, Handelsblatt reported, citing calculations by Bernd Raffelhueschen, an economics professor at Freiburg University. Apart from 2 trillion euros ($2.7 trillion) of public debt, there are liabilities of another 5 trillion euros because of shortfalls in the social security and pension funds, according to Raffelhueschen, the newspaper said.
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Sunday, September 25, 2011
The truth about Germany
Germany’s public debt is much higher than officially shown, Handelsblatt reported, citing calculations by Bernd Raffelhueschen, an economics professor at Freiburg University. Apart from 2 trillion euros ($2.7 trillion) of public debt, there are liabilities of another 5 trillion euros because of shortfalls in the social security and pension funds, according to Raffelhueschen, the newspaper said.
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Germany’s public debt is much higher than officially shown, Handelsblatt reported, citing calculations by Bernd Raffelhueschen, an economics professor at Freiburg University.
Apart from 2 trillion euros ($2.7 trillion) of public debt, there are liabilities of another 5 trillion euros because of shortfalls in the social security and pension funds, according to Raffelhueschen, the newspaper said.
To contact the reporter on this story: Christian Vits in Frankfurt at cvits@bloomberg.net
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
Germany’s public debt is much higher than officially shown, Handelsblatt reported, citing calculations by Bernd Raffelhueschen, an economics professor at Freiburg University.
Apart from 2 trillion euros ($2.7 trillion) of public debt, there are liabilities of another 5 trillion euros because of shortfalls in the social security and pension funds, according to Raffelhueschen, the newspaper said.
To contact the reporter on this story: Christian Vits in Frankfurt at cvits@bloomberg.net
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
It would be political suicide to suggest to the financially prudent Germans
that they should go on a debt funded spending spree to rescue those whom they see as improvident.
And why should China reduce its exports?
On an exports per capita basis it is at around number 80 in the world.
Policy tinkering seems to be a way for economists of the centre right and centre left to avoid confronting the bigger issues,[ as Matthew Parris puts it "Freudian displacement activities"].
Economic growth of the past is over.Debts cannot be repaid and the value of fiat currencies will fall.
Global oil supply is flat and has been since 2005.Goodbye cheap energy and cheap food.
Everything else is addressing symptoms not the illness itself
Mr H. I didnt go to Cambridge but what follows is what I think and given that I have been right for the last 5 to 6 years then I put my Euros up against yours.
But I admit it is all a question of judgment. But as nice John Kay wrote in the FT to be a good judge is difficult.
Agreed Greece cant pay and never will be able to. It also is a completely lost cause when it comes to institutions supporting what could loosely be described as Government. It cant even police its own borders never mind collect taxes or stick to any agreement with anyone.
For Greece the choice is easy. We pay. We fire the Government. We send in a European army. We set Greece up as a dependent state a bit like Belgium and Brussels.
EFSF scaling up agreed.
The ECB should increase rates by another 0,5% immediately. What beats me is that you economists havent the faintest idea of what money means. We are not faffing around on a normal business cycle with an after-you-James mentality we are in a fundamental shift from our previous priviledged position and now we have to slum it with the people in Bombay.
QE is death to society. It is deliberately inflationary and should be reversed immediately.
As for the big surplus countries all I can say is that you are a good accountant who understands nothing of the dynamics. The big surplus countries are no different from the SWFs and pension funds : they are trying to protect their future. It wont work but that is what they are trying to do. If you propose something for Germany then that also applies to everyones pension in the UK. See you at the next riot : I shall be carrying a red rose between my teeth so as not to look conspicuous.
A debt crisis and the solution is more debt, $2 trillion this time? Bold, no?
The banks might need to be recapitalised but I'm not seeing the reform. This was Britain's mistake, to transfer huge funds in return for nothing. Any funding for the banking sector needs to be accompanied by rationlisation, in particular the winding-down of loss-making activities and forbidding bonuses to departments that don't make a profit. Otherwise we'll see Zombie banks hogging capital for years.
And if countries can agree on the need to splurge money, note the ulterior motives. The Greeks need money, Germany wants someone else to pay, France wants money for its banks and the US, in electoral mode, is keen to paint Europe as the handbrake on the world economy. As Eachran says, each country is trying to save itself.
La victoire de la gauche au Sénat, dimanche 25 septembre, bouleverse le paysage politique. Les conséquences pratiques de ce changement sont encore difficiles à déterminer. La gauche pourrait être tentée de profiter du Sénat pour donner corps à son opposition et émettre des propositions de loi, mais aussi amender les textes gouvernementaux, même si l'Assemblée nationale garde le dernier mot. Le président du Sénat aura aussi des pouvoirs en matière de nominations au Conseil supérieur de la magistrature (CSM) ou au Conseil constitutionnel, et sera présent, en tant que deuxième personnage de l'Etat, aux côtés du chef de l'Etat, Nicolas Sarkozy, dans les cérémonies officielles.
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