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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Germany’s Econ Minister Brüderle hits back at French and US criticism

Posted by WARREN MOSLER on October 22nd, 2010

The don’t know the elevated fiscal deficits due to their ‘automatic Keynesian stabilizers’ did the trick, including (temporarily) weakening euro?

So why are they spewing this nonsense?

Class warfare to keep union demands in check and domestic demand suppressed so the well off can optimize their personal real terms of trade?

Expect austerity to continue to work against domestic demand and keep the forces in place that will continue to drive the euro to a level high enough to contain net exports.

Germany hits back at French and US criticism

By Gerrit Wiesmann and Stanley Pignal

October 21 (FT) — “Growing domestic demand shows our recovery is standing on two feet,” said Rainer Brüderle, Germany’s economics minister. Gross domestic product is expected to rise by 3.4 per cent this year, up from a spring forecast of 1.4 per cent, and 1.8 per cent in 2011, up from 1.6 per cent. Mr Brüderle said Germany’s recovery was “a non-Keynesian growth programme” in which fiscal discipline spurred private investment. “It’s a textbook recovery,” Mr Brüderle said, describing how an uptick in foreign demand earlier this year had spurred exports, then investment and finally job creation in Germany itself. Unemployment is expected to fall below 3m this autumn and remain “clearly below” that mark next year. At the start of the year, economists had worried about whether the German upturn would be “V-, W-, L- or U- shaped”, he said. “Now we know that was irrelevant. This has become an XL [extra-large]-recovery.”

2 Responses to “Germany’s Econ Minister Brüderle hits back at French and US criticism”

  1. roger erickson Says:

    Finally, we seem to be in total agreement (given that both recent & current US administrations also want to export instead of build domestic capabilities). Now we can turn to devising a fix.

    Only a poorly informed electorate can degrade into this state!

    Solutions are to be found by addressing the root causality behind lagging situational analysis. Too few scouts, too little brash analysis, and too little honest dissemination of the most relevant data = a national security disaster in the making, from a discounted direction (our own, non-mil, internal operations!). We’re smarter than this, and have too many people simply failing to stand up and speak out about required operational standards.
    Complacent logistics at home can undo the fortunes of any team in the field.

    Lincoln triggered a war to keep the Union from willfully breaking up. Now we’re in danger of seeing it simply disassociate, just for want of drill at maintaining team affinity! Gentlemen, to exhibit group intelligence, we need higher, not lower, interaction rates. This is not rocket science, and is wanting ONLY for effort.

    Reply

    WARREN MOSLER Reply:

    we need someone of sufficient influence to promote the 7 deadly innocent frauds

    Reply

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