Article

2005-11-25 Europe

German crisis of confidence 'getting worse'

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Posted by lotp 2005-11-25 00:00|| || Front Page|| [11132 views since 2007-05-07] Top

#1 Weimar?

Posted by RWV 2005-11-25 00:46|| 2005-11-25 00:46|| Front Page Top

The budget deficit could reach 4pc of GDP this year, breaching the constitution, while the national debt is nearing the danger level of 70pc of GDP

For comparison, the US Deficit was around 368 billion for fiscal year 2005, total debt is 8.1 trillion, and GDP is 11.75 trillion. Thus our deficit 3.1% of GDP and our national debt is 69% of GDP. Not that much different from Germany.

The big difference is that our economy is growing at 3-4%, and our budget deficit is dropping. President Bush pushed through the tax cuts which helped boost both GDP and tax revenue.

How does Germany get its economy growing when it can't enact needed economic reforms?

Posted by Chuck 2005-11-25 03:19|| 2005-11-25 03:19|| Front Page Top

#3 get the wheel barrows out.

Posted by Mr. poop feathers 2005-11-25 04:09|| 2005-11-25 04:09|| Front Page Top

#4 Actually, given population trends and the lack of demand it's more likely we'll see deflation similar to Japan's rather than the German inflation of the Great Depression.

Posted by DoDo 2005-11-25 08:46|| 2005-11-25 08:46|| Front Page Top

#5 Please to be hush.
A German defecit is not to mucher to be feared, worry about when the ECB starts discounting Itaian and perhaps Spanish bonds. Thatn skary.

Posted by HalfEmpty 2005-11-25 10:54|| 2005-11-25 10:54|| Front Page Top

#6 HalfEmpty is worried about excess capital formation and the lack of return on same.

Posted by Shipman 2005-11-25 17:24|| 2005-11-25 17:24|| Front Page Top

#7 wait til their leader gets attacked by a rabbit...then you'll know ~~malaise~~
"profound failure of nerve"

Posted by Frank G">Frank G 2005-11-25 18:26|| 2005-11-25 18:26|| Front Page Top

#8 It will be interesting to see who is the first German politician to call for departure from the Euro and return to the DM. While I think that has very little to do with Germany's problems or their resolution, it will strike a responsive chord with the electorate.

Posted by Omaising Thronter9359 2005-11-25 19:00|| 2005-11-25 19:00|| Front Page Top

23:33 Zenster
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