Thus far corporate media has been quite receptive to Germany’s proposed “debt bazooka”, as has the German public. It is not hard to understand why—the economic data of the past few years makes plain that Germany needs to change its economic course and quickly.
However, there is no getting around the reality that Germany may not get to fire that bazooka, and even if it does, no guarantee that it will be able to hit the target.
What happens to Merz’ government in that worst-case scenario is an unknown, of course, but it is difficult to fathom an outcome to that scenario where Merz and his coalition are around for very long if the “debt bazooka” does fail.
Links & Sources
“Germany's planned spending spree: what it means for the economy”: https://archive.ph/Ob3pB
German Industrial Production: https://tradingeconomics.com/germany/industrial-production
German Manufacturing Production: https://tradingeconomics.com/germany/manufacturing-production
German GDP Growth Rate: https://tradingeconomics.com/germany/gdp-growth
German GDP From Manufacturing: https://tradingeconomics.com/germany/gdp-from-manufacturing
German GDP From Construction: https://tradingeconomics.com/germany/gdp-from-construction
German GDP From Agriculture: https://tradingeconomics.com/germany/gdp-from-agriculture
German GDP From Public Administration: https://tradingeconomics.com/germany/gdp-from-public-administration
“Germany’s ‘whatever-it-takes’ spending push to end years of stagnation”: https://archive.ph/c5XRp
“‘A really big bazooka’: German defense spending likely to rise after parties agree historic debt change”: https://archive.ph/1OxOn
“Germany's planned spending spree: what it means for the economy”: https://archive.ph/Ob3pB
Article 115 Of Germany Basic Law: https://www.gesetze-im-internet.de/englisch_gg/englisch_gg.html#p0685
Article 79 Of Germany Basic Law: https://www.gesetze-im-internet.de/englisch_gg/englisch_gg.html#p0416
German Inflation Rate: https://tradingeconomics.com/germany/inflation-cpi
German Inflation Rate Month On Month: https://tradingeconomics.com/germany/inflation-rate-mom
German Core Inflation Rate: https://tradingeconomics.com/germany/core-inflation-rate
German Energy Inflation: https://tradingeconomics.com/germany/energy-inflation
German Food Inflation: https://tradingeconomics.com/germany/food-inflation
“Japan's "Abenomics" Experiment”: https://newsletter.allfactsmatter.us/p/japans-abenomics-experiment
German 10-Year Bond Yield: https://tradingeconomics.com/germany/government-bond-yield
“The Breaking Begins: BoE Intervention Halts The Rise In Yields At The Expense Of Everything Else”: https://newsletter.allfactsmatter.us/p/the-breaking-begins-boe-intervention
“Silvergate Capital And SVB: How A Liquidity Crisis Unfolds”: https://newsletter.allfactsmatter.us/p/silvergate-capital-and-svb-how-a
“German spending boost to leave lasting impact on world bond markets”: https://archive.ph/1twB9
“Opposition builds to Germany’s trillion-dollar debt plan”: https://archive.ph/bWpuZ
“Will Europe De-Industrialize?”: https://newsletter.allfactsmatter.us/p/will-europe-de-industrialize
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