Germany’s economy to suffer biggest slump this year, govt. warns
by Jim W. Dean, VT Editor, …with PressTV, Tehran
[ Editor’s Note: That EU economies are going into recession is certainly not news. But how far they could go down is news, with all eyes on Germany, as however much lower Germany goes, the other EU economies will be worse.
The traditional battle once again is the southern EU countries wanting to benefit from debt funded stimulus money shared by the EU as a whole, versus a country level approach. This punishes those countries that did a better job, but is pitched as somehow unfair by countries like Italy.
Of course, if the Balkan countries charged Italy with having an “unfair” tourism economic advantage due to its classical tourist attractions, Rome would say “tough doo-doo”, and resist subsidizing for example Balkans tourism development.
So the poor EU, already humiliated by the US with its gangster sanctions extortion, despite its rightfully pursuing a more balanced trade situation, plus the Brexit upheaval, now finds itself taking a triple hit with the coronavirus economic hammer.
All three combined at one time presents a threat to the EU maintaining its current alliance. Who would benefit from that, and how? The US can’t benefit from trading partners that are broke, if they can’t afford US imports.
A general worldwide deflation might be in the wind, which could be felt as long as a decade, as the German guest in today’s interview predicts. Right now the main Asian countries that are at the top of the list for handling the virus way better than most are going to be in the best shape to pick the bones of Western businesses at ten cents on the dollar.
An EU airlines expert said just this yesterday, with the caveat that the best possible outcome would be 7 to 8 years before airlines could return to their former profitability, as so much of their revenue depended on tourism.
I would add to that, with the virtual tourism that is all the craze while people are home now, might we see that as a double hit to hammer the airlines even more? It is anyone’s guess at this point.
The great irony in all this is that those living in countries that have been pillaged by sanctionistas, will get to experience what living under “Covid sanctions” is like, where their economic futures are throttled back by an outside force through no fault of their own… Jim W. Dean ]
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– First aired … April 30, 2020 –
The German government has warned that the country’s economy is expected to suffer the biggest slump of its history this year over the COVID-19 crisis.
Jim W. Dean is VT Editor Emeritus. He was an active editor on VT from 2010-2022. He was involved in operations, development, and writing, plus an active schedule of TV and radio interviews. He now writes and posts periodically for VT.
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Ah!… this is the best line of the week so far ! 🙂 “There is so little to lose by planting a garden, and soo much to gain.” If only if our Michigan governor would let us buy seeds now.
imagine 10 years ago someone saying that would happen. how much more can get taken before we try to take it back? are we giving up?
Jim, if you got land, why not to plant? It is a great economy 😁.
I think having Lagarde or Georgieva , might be leaps beyond Mnuchin. The difference I see from the 30’s is we have an in place comfort level that has been sustained financially to the point of almost complete disconnect from the lifestyle that can bounce back. The formation of new habits, or just acceptance of loss, will also hurt the return of tourism to what it was. Egypt can attest to that even after the one plane crash. Wariness of a false sense of confidence, is what makes me urge people to plant gardens now, as it is spring. Timing is a grace. There is so little to lose by planting a garden, and soo much to gain.
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