Why Buying Bunds Could Be Bad For Your Health
Why am I concerned about German economics? The numbers tell me that the “emperor” Merkel is wearing no clothes and its not a pretty sight!
Positives are that Germany are now undisputed kings of Europe ; their economy accounts for 20% of European output and 25% of all euro exports . However we currently struggle to see Germany saving themselves let alone europe why?
The German economy contracted 0.2% in Q2 of 2014 — following a dismal 0.4% of GDP in 2013 , the worse figures since before the recession. The Germans , French and Italians who account for a whopping 66% of Euro output produced a massive 0% in Q2 2014 ……………… Are we listening now? 50% of Germany’s growth comes from exporting where the main buyers are in southern Europe plus additional issue being Russia as a ‘no go’ area due to sanctions on Kremlin and Putins pups.
“Behind YOU !”
Germanys baby boom is over which adds huge pressure on economic growth which is rumored will drop below the “feared” 1% by 2024. Emperor Merkel and her new coalition are determined to undo Gerhard Schoeder’s hard reforms of 2,000. Poor, unaffordable pension reforms plus the lowering of the pension age from 65 to 63 added to a minimum national wage at a vastly higher rate than its competitors will eventually reduce jobs!
Emperor Merkel also decided to delete nuclear power and failed to provide any economical alternative; an example being that USA energy prices are 3 times cheaper; German goods are always of a good quality but not three times as good!
Sadly for Germany there is no opposition as AFD is in same position as UKIP and offering no resistance. Therefore I fear that using the German bund as a safe haven is a ‘white elephant’ and foolish option; perhaps even the thought of seeing emperor Merkel naked is enough to make you re-consider.