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December 11, 2017



"Only 14% of Germany invest in stocks, compared to about half of all Americans. This is disturbing since the DAX index has increased by 17% so far in 2017, while bank accounts in Germany return nothing, or even negative interest."
This is an absurd discussion far beyond reality since the lower five deciles derive insufficient income to accumulate any net wealth:
I'm afraid your investment advice is not helpful for them.


The way I see it, Germany today strongly benefits from the Euro setup. Due to the southern member countries' weakness, the Euro's value is so much lower as a Germany-only currency would be. So our exports continue to flourish, when without the Euro they would no longer.

However keeping in mind the Target2 outstanding "balance" of more than 830 billion (!) Euros we will probably never see again, I am not sure whether we may pay dearly in the end.
Should this come into play one day and the public as a result can no longer be kept unaware by refusing to discuss the issue, this might well be the end of the EU as we know it.
It would mean the equivalent of ~10K Euro per German citizen would have to be written off. Not an easy thing to communicate by a German government, which needs to address the fiscal challenges of an aging population combined with completely unnecessary additional burdens like the migration wave.

This combined with the growing number of destitute population share you mentioned in the long run might also prove a deadly combination for the stability of the German political system.


Continuing to grow the economy when the costs are higher than the benefits is actually uneconomic growth. The United Nations has classified five types of uneconomic growth:

Jobless growth, where the economy grows, but does not expand opportunities for employment;

ruthless growth, where the proceeds of economic growth mostly benefit the rich;

voiceless growth, where economic growth is not accompanied by extension of democracy or empowerment;

rootless growth, where economic growth squashes people’s cultural identity;

future-less growth, where the present generation squanders resources needed by future generations.

The downsides of economic growth can be avoided by maintaining an optimal scale of the economy. (Which is an economy not structured around growth, but stability and sustainability)

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