“The largest espionage scandal in the 21st century is shaking Germany,” wrote Peer Steinbrück, the man who’s desperately trying to unseat one of the most popular German politicians, Chancellor Merkel. Massive anti-NSA protests spread across the country. Well, 1,000 demonstrators straggled through Frankfurt. It’s going to be tough for him.
Europe
Germany’s Government-Sponsored Export Machine Takes Aim At Greece, Argument Breaks Out
by Wolf Richter • • Comments Off on Germany’s Government-Sponsored Export Machine Takes Aim At Greece, Argument Breaks Out
When going overseas, Chancellor Merkel doesn’t leave home without planeloads full of executives from Germany’s most coddled companies – exports being the core of foreign policy. And if these deals get snagged on the rusty nails of payment risks, it’s up to the government to help out with guarantees, even if they’re infested with conflicts.
Just How Low Can Spain Go?
by Don Quijones • • Comments Off on Just How Low Can Spain Go?
BBC’s article about the political funding scandal gripping Spain featured a photo of hapless leader Mariano Rajoy licking his lips like a “dirty old man.” It spread like wildfire across the social media, setting off a cacophony of calls for Rajoy to resign for the irreparable damage he’d done to Spain’s overseas image.
Austrian Steelmaker Offshores Production To … Texas
by Wolf Richter • • Comments Off on Austrian Steelmaker Offshores Production To … Texas
Voestalpine, an Austrian steelmaker with 46,000 employees, saw its revenues decline by 4% last year. It blamed the “cooling down of the global economy,” and “dwindling momentum in Asia (especially China).” Now it’s under pressure to cut costs. Hence offshoring to cheap countries! China or Indonesia? Nope.
Blinded By Optimism, German Economy Now Below Stall Speed
by Wolf Richter • • Comments Off on Blinded By Optimism, German Economy Now Below Stall Speed
The financial crisis was brutal for Germany, but the recovery steep, and in 2011, the gloating started. They called it the German “success recipe,” a superior system that would keep the economy growing even amidst Eurozone debt-crisis mayhem. That optimism has endured, and stocks have hit new highs, but the economy has diverged sharply.
(Broke) Italy “Would Love To” But Can’t Pay Its Bills This Year
by Wolf Richter • • Comments Off on (Broke) Italy “Would Love To” But Can’t Pay Its Bills This Year
In most countries, it would be an act of mind-bending chutzpah, or perhaps a display of political insanity, but in Italy it barely made ripples: for a government official, a minister no less, to declare that the country cannot pay its long overdue bills, and not for a month or two, but for the rest of this year! Due to “technical” problems.
Beware, the Borderless Tax Man Cometh
by Don Quijones • • Comments Off on Beware, the Borderless Tax Man Cometh
Contributed by Don Quijones: The first four items the G-8 dealt with was the need for governments to share information to “fight the scourge of tax evasion.” If only their primary targets were multinationals, banks, and hedge funds that pay a pitiful fraction of the taxes they owe in the countries they operate. But they’re going after the little guy.
‘Total Surveillance’ Officially Brushed Off In Germany
by Wolf Richter • • Comments Off on ‘Total Surveillance’ Officially Brushed Off In Germany
Chancellor Merkel’s coalition is likely to emerge victoriously from the elections in September, unless a major debacle blows up. So no debacle is allowed to occur until after the election. But just then, new revelations about NSA spying blew up: turns out, all citizens anywhere can be under surveillance by any government, including their own, beyond control and oversight.
The Big Four Central Banks Muddy The Same Sea Of Liquidity, And Then There’s China
by Lee Adler • • Comments Off on The Big Four Central Banks Muddy The Same Sea Of Liquidity, And Then There’s China
Contributed by Lee Adler, of The Wall Street Examiner. The Fed, ECB, BoJ, and BoE all deal with the same banks. Of the Fed’s 21 Primary Dealers, its sole counterparties, only seven are US domiciled. Three are Canadian, eight are European, including three British banks, and three are Japanese. All of them are major players in Europe and Japan.
Former TBTF Bank Chief Receives Get-Out-Of-Jail-Free Card
by Don Quijones • • Comments Off on Former TBTF Bank Chief Receives Get-Out-Of-Jail-Free Card
Contributed by Don Quijones:Two weeks ago, Miguel Blesa, former president of Spanish savings bank Caja Madrid, went to jail for his role in the bank’s demise. Finally, a TBTF bank chief got nailed for his role in the financial crisis. But it was too good to be true! Now a witch hunt against the judge has begun.