Germany

Europe’s Fading Cosmopolitan Dream

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In headier days, Europe’s leaders dreamed of a multicultural continent, its aging cities saved by millions of new migrants eager to join a stable, prosperous urbanity. This was the promise behind former U.K. prime minister Tony Blair’s Cool Britannia, the multicultural fervor of Herman Lebovics’s Bringing the Empire Back Home: France in the Global Age, and the early enthusiasm that greeted Germany’s refugee influx in 2015—estimated now at 1.6 million.  read more »

Germany Went Totally Green Too Quickly

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Has U.S. leadership gone awry? Senators Chris Coons and the honorable Dianne Feinstein recently announced they will introduce the Climate Action Rebate Act, which aims to generate $2.5 trillion in tax revenues over 10 years by slapping a fee on oil, natural gas and coal starting in 2020. This isn’t leadership. This is followship without the fairy tale ending.  read more »

Is America Now Second-Rate?

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President Donald Trump’s recent renunciation of the Paris climate change accords has spurred “the international community” to pronounce America’s sudden exit from global leadership. Now you read in the media aspirations to look instead to Europe, Canada, or even China, to dominate the world. Some American intellectuals, viewing Trump, even wish we had lost our struggle for independence.  read more »

Death Spiral Demographics: The Countries Shrinking The Fastest

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For most of recent history, the world has worried about the curse of overpopulation. But in many countries, the problem may soon be too few people, and of those, too many old ones. In 1995 only one country, Italy, had more people over 65 than under 15; today there are 30 and by 2020 that number will hit 35. Demographers estimate that global population growth will end this century.  read more »

Germany Also Having Big Problems Building Infrastructure

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Der Spiegel had an interesting article recently called “Angry Germans: Big Projects Face Growing Resistance.” The article (linked version is English) talks about how it is increasingly difficult to get infrastructure projects built in Germany.

Wherever ambitious construction ventures loom on the horizon in Germany — from the cities to the countryside, from the coastlines in the north to the Black Forest in the south — opponents are taking to the streets….  read more »

The Leveraged Buyout of the GDR

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Until the European Central Bank purchased a call option on the future assets of the Greek government (which remains out-of-the-money), the largest leveraged buyout of a sovereign state had taken place in 1990, when the West German government acquired the German Democratic Republic (GDR), thought at the time to consist largely of liabilities. By most accounts the Bonn government paid over the odds for East Germany, estimated to have cost the West more than $1 trillion.  read more »

Who’s Racist Now? Europe’s Increasing Intolerance

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With the rising tide of terrorist threats across Europe, one can somewhat understandably expect a   surge in Islamophobia across the West. Yet in a contest to see which can be more racist, one would be safer to bet on Europe than on the traditional bogeyman, the United States.

One clear indicator of how flummoxed Europeans have become about diversity were the remarks last week by German Chancellor Angela Merkel saying that multi-culturalism has “totally failed” in her country, the richest and theoretically  most capable of absorbing immigrants. “We feel tied to Christian values,” the Chancellor said. “Those who don’t accept them don’t have a place here.”  read more »

The New World Order

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Tribal ties—race, ethnicity, and religion—are becoming more important than borders.

For centuries we have used maps to delineate borders that have been defined by politics. But it may be time to chuck many of our notions about how humanity organizes itself. Across the world a resurgence of tribal ties is creating more complex global alliances. Where once diplomacy defined borders, now history, race, ethnicity, religion, and culture are dividing humanity into dynamic new groupings.  read more »

G-20 Summit: There is No One Size Fits All

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There is one thing you need to remember as you listen to the debate about economic and fiscal policy at the G-20 Summit this weekend in Toronto: There is No One-Size-Fits All. There is not even a “One-Size-Fits Twenty.”

Back in 2001, I summarized the few things about finance and economics that most scholars agree will support a growing economy and healthy capital markets:  read more »

The Downside of Brit-Bashing

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Obama may be spanking BP’s brass today. But the other crisis—Europe’s economic mess—reminds us why it’s important that the U.S. and U.K. stick together.

The controversy over the BP spill threatens to drive US-UK relations to a historic low point. When recently in London, several people worried that the President may be engaging in “Brit-bashing” at the expense of our historically close ties. This theme has been widely picked up in the UK press.  read more »