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Old December 25th, 2011 #21
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Plans laid out by the Jewish writer Kaufman written to destroy Germany are being used against the rest of the Gentile world. Here's the classic:

Germany Must Perish
 
Old December 25th, 2011 #22
Alex Linder
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I believe the origins of its successful business are many however two seem to stand out for me.

1. Germany's central bank (and its successor the EZB) have been relatively prudent with their monetary policy. French economic Richard Cantillon pointed out that with central banks printing money, this benefitted those who first received (i.e. those receiving the money prior to the inflation caused by its creation setting in) enormously.

In places like the United States and Britain, we have not seen prudent monetary policy. This has meant that the creation of dollars and pounds has been to enormous benefit to the few, in this case the investment banks and other financial services companies. Ridiculously large salaries (Goldman's chief received 800 million dollars in compensation in his best year to date) bears no relationship to the value (which is minimal despite what they tell you) that investment banks provide society. Their compensation is not market determined but driven by monetary policy (printing dollars). Add to this we now note that the risks of speculators like Goldman are subsidized and carried by the public taxpayer. It's an absurd system where the working class who makes things has to subsidize the elite oligarchy who do not.

What this means is that in the US and Britain the best and brightest are attracted towards degrees in business administration and finance as their ticket to investment banking whilst in Germany or Japan, the brightest are attracted towards engineering and the physical sciences - i.e. the people who make things.

German speaking countries (Austria and Switzerland although smaller also make great stuff) do not experience the internal brain drain of the bright towards the unproductive or indeed, as we've recently witnessed, destructive activities of a financial services industry that is not driven by market forces (i.e. what the public needs and wants) but by government policy.

2. Many of Germany's companies are not publicly owned and many of the publicly listed companies are under the control of families. Families tend to take a long-term, conservative, investment oriented, technologically innovative approach towards their businesses, after all they are going to pass these companies along to the next generation. In the UK and the US, not so much. Instead, companies are owned by short-term owners, hence the absurd focus in the US on things like annual, half-yearly and absurdly quarterly earnings. CEOs are all focussed on their share price as though it was some measure of success when indeed it is not. The love of debt amongst listed companies is linked to this myopism. The democratization of corporations has led to the same short-term focus that it has taken in politics.


http://www.economist.com/node/18061718/comments
 
Old December 25th, 2011 #23
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The German Health Care System

By John Goodman Filed under Health Insurance on June 4, 2010 with 13 comments

The Rhetoric: German health officials and health policy analysts believe the two best features of their health care system are (a) solidarity and (b) income-based (progressive) premiums.

The Reality: (a) 10% of Germans opt out of national health insurance and enroll in private plans and (b) 80% of those in private plans are civil servants and their premiums are paid for by government (taxpayers).

Effect on Doctors: In the general system, primary care physicians operate with as many as 100 separate quarterly budgets for the services they provide; when they hit a budget ceiling, they stop providing the service until the next quarter.

Effect on Patients: Ordinary Germans are traveling to other countries (even the UK!) to get services they cannot get promptly in Germany.

http://healthblog.ncpa.org/the-germa...h-care-system/
 
Old December 25th, 2011 #24
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Showing Germany/Germans are still too naive, too willing to take at face value, too gullible, too uncomprehending of the actual nature of other countries, too trusting of seemingly objective standards that could serve as cover for frauds and scams...

http://www.hewinsfinancial.com/blog/...-but-verify-2/
 
Old December 25th, 2011 #25
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When the economic and financial history of this period is written in the fullness of time, Germany will likely be mentioned often for its large and important role for all that has and has still yet to occur. It will be a history of great wonder and of contradictions. The German economy and the financial habits of its citizenry provide a model of prudent saving and sound investment. The population is famously cautious and risk-averse. Leading up to the 2008 Financial Crisis, there was no great real estate boom in Germany. The practice of borrowing to fuel consumer spending is just not a part of the culture. Thanks to these good habits the German citizenry is in a position to consider bailing out the weaker EU nations as well as the European banks.

Yet many German financial institutions provided the fuel that drove the lending binge across Europe and the United States. They financed the frenzy in places like Ireland and Iceland and were large buyers of U.S. subprime mortgages. In those places alone it is estimated that German banks have lost over $180 billion. German bankers were not financially incented to make big, risky bets like their counterparts at U.S. investment banks were. Their salaries and bonuses were relatively modest. So why did they make big bets that in retrospect look quite reckless?

We can speculate on the impact of typical German mentality and behavior on these bankers as they made these decisions, but suffice it to say that the ability of Wall Street to make packages of risky assets look riskless proved to be remarkably successful in Germany – a place where trustworthiness and rules count for a great deal. If a U.S. investment bank could create a security that earned very high credit ratings and conformed (at least on the surface) to a number of criteria on a checklist, it found the German investment sector to be a great market in which to sell its wares.

Likewise, being trustworthy and rules-oriented allowed Germans to go along with the grand designs that cobbled together the European Union and the Euro. The Achilles’ heel of these noble German qualities of trustworthiness and the honoring of rules is that, sadly, others may prove to be less trustworthy. When the Germans agreed to the single currency, they demanded a rule in the charter of the European Central Bank that they would never have to bail out another member country. That rule was violated last year to help Greece, and many Germans have been quite upset since. The Germans demanded that all the member countries that adopted the Euro conform to strict rules regarding budget deficits. Never could they imagine that the Greek government would fabricate its budget statistics.
 
Old December 25th, 2011 #26
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When the economic and financial history of this period is written in the fullness of time, Germany will likely be mentioned often for its large and important role for all that has and has still yet to occur. It will be a history of great wonder and of contradictions. The German economy and the financial habits of its citizenry provide a model of prudent saving and sound investment. The population is famously cautious and risk-averse. Leading up to the 2008 Financial Crisis, there was no great real estate boom in Germany. The practice of borrowing to fuel consumer spending is just not a part of the culture. Thanks to these good habits the German citizenry is in a position to consider bailing out the weaker EU nations as well as the European banks.

Yet many German financial institutions provided the fuel that drove the lending binge across Europe and the United States. They financed the frenzy in places like Ireland and Iceland and were large buyers of U.S. subprime mortgages. In those places alone it is estimated that German banks have lost over $180 billion. German bankers were not financially incented to make big, risky bets like their counterparts at U.S. investment banks were. Their salaries and bonuses were relatively modest. So why did they make big bets that in retrospect look quite reckless?

We can speculate on the impact of typical German mentality and behavior on these bankers as they made these decisions, but suffice it to say that the ability of Wall Street to make packages of risky assets look riskless proved to be remarkably successful in Germany – a place where trustworthiness and rules count for a great deal. If a U.S. investment bank could create a security that earned very high credit ratings and conformed (at least on the surface) to a number of criteria on a checklist, it found the German investment sector to be a great market in which to sell its wares.

Likewise, being trustworthy and rules-oriented allowed Germans to go along with the grand designs that cobbled together the European Union and the Euro. The Achilles’ heel of these noble German qualities of trustworthiness and the honoring of rules is that, sadly, others may prove to be less trustworthy. When the Germans agreed to the single currency, they demanded a rule in the charter of the European Central Bank that they would never have to bail out another member country. That rule was violated last year to help Greece, and many Germans have been quite upset since. The Germans demanded that all the member countries that adopted the Euro conform to strict rules regarding budget deficits. Never could they imagine that the Greek government would fabricate its budget statistics.
 
Old December 25th, 2011 #27
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What's the difference in mentality between a German and an Australian?

This is an interesting question because both countries are located extremely far away from each other, Germany is in the Northern Hemisphere and Australia in the Southern Hemisphere. Both countries are very different in many aspects and so you could ask if there is also a difference in thinking between Germans and Australians.

Well, I tell you a little story and make it quite clear using a real-life example.

The Teachers

Joe was a teacher from Australia who was working at a German school for some time to gain experience and to improve his German.

It was winter and the snow was hanging in the trees. The Australian teacher had a break and was going to have his lunch. He entered the teachers rest room and sat down on a chair to relax.

It was a nice day and everything was fine. Suddenly the door opened and another teacher, a real German, came in.
"I am teacher Hampel", he said to Joe.
"Nice to meet you", said Joe.
"Well, Why don't you get up?" the German asked.
"Why that?" Joe asked.
"Because this is my chair", the german teacher answered.
"But there are a lot of other chairs around", said Joe wondering about all this senseless talk.
And then came an incredible statement:
"I have sat on this chair since twenty years and so this is my chair!"

And then came an incredible answer:
"Get lost, or I cut your balls off!"

Do you understand now the difference in mentality between a German and an Australian?

http://ezinearticles.com/?Difference...ian&id=5777154
 
Old December 25th, 2011 #28
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But when Damon and wife Sabrina Bochen journeyed to Germany to find previously unexported wines for their new retail/import/ distributor operation, they discovered that the forward thinking went only so far forward. "I said to them, 'We want to be an extension of who you are in the U.S.' We will always be specialists in German wines; we like the idea of carving out a microniche for ourselves and getting really good at it. I've always had that sort of brand mentality" -- perhaps the fruit of running a franchise restaurant company with his brother for four years. But, he found, "These guys don't market or brand. They just don't really believe in it." Decades of negative fallout from Blue Nun and Liebfraümilch would probably be enough to account for that, but there's also the matter of tradition. "They're very German -- their whole mentality is, 'We've been here for 600 years. We sell out of our cellars, and we sell out every year. Why do we need to sell to the U.S.?' For most of the estates, it was the flatter-factor that interested them. They were so flattered by the fact that some couple from the U.S. would come over to meet them, try their wines, and bring them over here."

Even so, they hesitated when they heard what Damon was after. "They'll sell 50--70,000 bottles a year out of their cellar, but they'll hand sell it, with the average customer buying a case. People have been coming for 30 years. That's how they do business, and here I was, showing up and saying, 'We'll be taking two pallets. I need 50 cases of this, 20 of that.' They were blown away."

On top of that, this eager American was asking for exclusivity. "That was a big step for a lot of these guys. When they do business in Germany, it's a handshake. But my goal is to get these wines reviewed, and I'd like to reap the reward of doing the work. If they sell them to every other importer in the U.S., where does that leave me?" Particularly if another, larger importer decides to eliminate the competition by scooping up everything available for the U.S. market.

http://www.sandiegoreader.com/news/2...ity-weve-been/
 
Old December 25th, 2011 #29
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Germans have a hard time bending the rules. Way too stubborn.(My mom was half German so lived it)


Americans are much more casual in their outlook.

I remember when we drove through Germany with our 12 year old son. We wanted to get a room to sleep overnight, the hotel manager MADE us get two rooms because the rules said two people per room.

That was plain insane, we were too tired to make a fuss but changed our travel plans after that.
 
Old December 25th, 2011 #30
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Sometimes I think you have Asperger syndrome Alex. You see everything so black and white
 
Old December 25th, 2011 #31
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Quote:
Originally Posted by Swede View Post
Sometimes I think you have Asperger syndrome Alex. You see everything so black and white
Are you referring to something specifically? These above were nuggets I found when searching 'German mentality.' Some things are black and white, some aren't. It's important to know the difference and neither undersimplify, as intelligent people do, nor oversimply, as dumb people tend to do.
 
Old December 26th, 2011 #32
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Default Difference between Germans and French

A large pregnant blonde German gal, and a skinny pregnant brunette French gal waiting to see the doctor.

French gal: "I'm having the Le Maze method. What method are you having?

German gal: "The German method."

French gal: "Oh yeah, what's that mean" ?

German gal: "That means going in there and getting the damn thing over with."
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“To learn who rules over you simply find out who you are not allowed to criticize” —–Voltaire




 
Old December 26th, 2011 #33
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Quote:
Originally Posted by Alex Linder View Post
Many of Germany's companies are not publicly owned and many of the publicly listed companies are under the control of families. Families tend to take a long-term, conservative, investment oriented, technologically innovative approach towards their businesses, after all they are going to pass these companies along to the next generation.
It's long been alleged that closely-held German firms manage for market share, which is to say they're sadly unenlightened by modern finance theory. I'd like to know how the Germans finance sizable family manufacturing enterprises. The article below talks about "self-financing" and bank financing. The former, retained earnings, begs the question (oops) of how much they're earning. The latter is very difficult in the US, factories being dubious collateral compared with hotels or retail inventories. Does Germany's far more concentrated banking sector facilitate real "relationship banking," which is only an ad slogan here?

The German Miracle Keeps Running: How Germany’s Hidden Champions Stay Ahead in the Global Economy

Quote:
Lessons from Simon’s analysis of Hidden Champions

1. Hidden Champions strive for world market leadership to become No. 1 in the world in their markets/segments.
2. Market definition is an important part of strategy development, usually leading to narrowly defined markets, both from a customer and technology perspective and a highly focused strategy.
3. Specialization in product and know-how is combined with global selling and marketing.
They serve the target markets through their own subsidiaries and do not delegate the customer relationship to third parties.
4. Hidden champions are very close to their customers in particular to their top customers.
They are value, not price oriented.
5. They are highly innovative in both products and process, not only confined to technology. Innovation activities are globally oriented and continuous.
6. The overall company orientation is not one-sided but both technology and market driven.
7. Hidden champions create competitive advantages in product quality and service. They are close to their top competitors and defend their position ferociously.
8. They rely on their own strengths. They mistrust strategic alliances and outsource less than other companies. Their value chains are deep. They see the foundation of their competitive superiority in things which only they can do. Together with lesson 2 their strategies could be defined as “deep rather than wide”: Deep in their value chain, not wide in their coverage of different markets with different needs.
9. Hidden Champions have very strong corporate cultures associated with excellent employee identification and motivation. Selection for jobs is sharp.
10. Their leaders are very strong and stay at the helm for decades.
Quote:
Their raison d´être is thus not only to maximize profits but to secure the company’s existence for the next generations. Firms are designed to stay independent and to achieve multigenerational continuity.
Quote:
In addition, Mewes advised companies to shift their objectives from profit maximization to maximize their “power of attraction” for their target group. Profit is not the objective, but rather the result of these efforts.

Last edited by Mike Parker; December 26th, 2011 at 09:55 AM.
 
Old December 26th, 2011 #34
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It's always government. Look first and last there. Never has there been more statism- yet this era is called "liberal". There is enough buying and selling under corporatism (fascism) that it palms itself off as "capitalism".

As A. J. Nock showed, ALL governments were and are established for only one reason- economic exploitation.

Mankind has only one problem- stopping the special interests from taking over the government.

I presume Germany is just as cartelized as the 'Kwa. The "enabling act" here was the Swope Act of 1935, from GE CEO jew Gerard Swope. This formed the big three auto makers, who embraced the UAW, and all stuck it to the consumer. The Swope act took care of Preston Tucker. . .



Jason A. Gorn

German banking is distinguished from neighboring European banking systems by the influence of its public sector banks. Nearly 50% of German banking is carried out by government owned state banks (ländesbanken) and regional savings banks (sparkassen) whose roots date from the 18 th century. German banks play a particularly important role in the economy and exert more control over firms and corporations than do their American counterparts. German banks tend to be less profitable than foreign
counterparts. German public banks were originally founded to foster local and regional business. However, the operations of German public sector banks now extend into all forms of international investment. German public banks are currently seeking new business models to increase profits as they are being forced to compete in the global financial market under liberal market practices dictated by the European Union. Turbulence in the global financial market precipitated by the U.S. sub‐prime mortgage meltdown has severely impacted German public sector banks, precipitating a banking crisis that leaves German taxpayers exposed to staggering losses. These global financial pressures dictate the restructuring of the German financial system. This restructuring has forced a breaking point in the traditional German corporatist banking model and is associated with significant risks to the stability of the German banking system.

http://scholarship.claremont.edu/cgi...=pitzer_theses

The EU motherfuckers are DICTATING LIBERAL MARKET PRACTICES.

Lots of folks need a severe bitch-slapping. Under real liberalism these State-owned banks would not exist. . .

Last edited by Rick Ronsavelle; December 26th, 2011 at 12:47 PM.
 
Old July 31st, 2012 #35
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Krugman: Germany Needs a Bubble To Save the Euro
Posted by Bill Anderson on July 30, 2012 08:24 AM

Remember when Paul Krugman called for Alan Greenspan to create a housing bubble to replace the collapsed NASDAQ bubble? While he has since backtracked from that and last year said that the U.S. Government effectively can fight this depression by preparing to fight off an invasion by imaginary "space aliens," he has a new plan to save the euro: create a bubble in Germany. He writes in response to the current troubles of Europe:

What could turn this dangerous situation around? The answer is fairly clear: policy makers would have to (a) do something to bring southern Europe’s borrowing costs down and (b) give Europe’s debtors the same kind of opportunity to export their way out of trouble that Germany received during the good years — that is, create a boom in Germany that mirrors the boom in southern Europe between 1999 and 2007. (And yes, that would mean a temporary rise in German inflation.)

Never mind that the boom was based upon an unsustainable bubble. In effect, he is demanding yet more bubbles and when they collapse, he will blame private enterprise, as he always does. I deal with his statements here.

http://www.lewrockwell.com/blog/lewr...es/116810.html
 
Old July 31st, 2012 #36
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Almost everybody always wants the get-rich-quick scheme and the bubble. The problem with bubbles is twofold. One, by its very nature a bubble is a malinvestment. Time, money and effort is put towards the bubble when it would be better saved or put elsewhere. Secondly, bubbles pop.

I don't see how somebody could have seen American households lose 40 percent of their value in the past 5 years and go...GERMANY NEEDS THAT, TOO!

The German's conservative FUCK DEBT mentality that values hard and honest work left them to be in a position to bail everybody out. They are now the well off relative that all the shithead, fuckup relatives pester for food, housing and money. The absolute last thing Germany needs is a bubble. That is the stupidest notion I've heard all month.
 
Old September 22nd, 2012 #37
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Guardian comparison of bankers, London vs Frankfurt
http://www.guardian.co.uk/world/blog...here-lads-gone
 
Old August 6th, 2013 #38
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article about vacationing in Germany, and why don't more British?

http://www.telegraph.co.uk/travel/de...#disqus_thread

many comments, some are interesting:

cuthbert

02/25/2013 03:58 PM

I work for a German company and go there a lot. The bad thing is that the food is pretty awful unless you are in one of the major cities. The good things, more or less everything else, and the overall impression is of a country a lot more prosperous, relaxed and self confident than austerity Britain.

Germans are kind of quaint in their manners. They remind me of my grandparents! If they don't know you they can be very formal indeed and can take a long time to get to know, which British people often mistake for arrogance or being unfriendly. Shyness is considered acceptable and normal, not the affliction that it is in the UK! Once you get an Einladung from a German, however, it is a sincere expression of friendliness and Germans tend to be quite sweet and loyal friends.



GermanMichel

02/25/2013 04:44 PM

After getting to know the US, I really started to appreciate this German quality you mention: "Shyness is considered acceptable and normal, not the affliction that it is in the UK (or much worse the US)! "

They talk so much about all kinds of discriminations over there, but never mention one of the most obvious and hard-core discriminations they live everyday in an almost pathologically extroverted society - the discrimination of shy people. I have seen so many otherwise interesting and sympathetic shy people over there that virtually transformed themselves into caricatures of themselves with their desperate fight against their shyness.




GermanMichel

02/25/2013 04:56 PM

The last two German Bundespräsidents managed to become pretty unpopular mouthpieces of the system instead of speaking for the nation as a whole.

President Wulff did not get tired to mention that "the Islam is part of Germany", happily showing himself in Berlin Olympiastadium during a soccer match between Germany and Turkey, with a scarf in Turkish national colors, enjoying himself among some 30000 fanatical Turks with red Turkish flags, booing at everything German, the national hymn as well as the 'traitor' Mesut Özil. That was like going back to the 1930ties, only the colors changed from brown to red.

The actual German Bundespräsident who hold the speech you mention was unscrupulous enough to say in his xmas-speech that 'people are killed in German subway stations because of their dark skin and dark hair'. What a lier and traitor to his own people. A quick look at the police statistics would have shown him that its the dark haired and dark skinned members of a certain religion who, almost always in groups, kill innocent (and often blond) people just for fun on the street or in the subway station, probably in 90pc of all cases or so.





BritishHardman

02/25/2013 03:20 PM

Germans definitely see themselves as a superior nation to the UK.

The Germans are somewhat jealous that the UK has preserved its old buildings and cultural heritage better than Germany has, for obvious reasons, but they regard themselves as more modern, more forward thinking and all together more intelligent.

They like visiting Britain for its castle and cultural heritage, but see the British as being inward looking, old fashioned and regressive in their outlook and world view.

They find the British way quaint and somewhat unique, but ultimately inferior to German modernity and forward thinking.




BritishHardman

02/25/2013 03:11 PM

Deep down Germans don't like the English. They resent the fact that the English entered WW2 and they resent the fact that we bombed their cities in the process.

Germans seem to forget that they bombed British cities during WW2, and just paint us a nasty butchers for bombing Dresden.

Germans have a rather impolite phrase for the British, they call us "inselaffen", which means "island monkeys".

Germans have a victim complex about WW2 and many believe that the British treated the German people harshly, brutally and unjustly and that the British should be blamed for the brutality and violence of WW2 just as much as the Germans should be.




BritishHardman

02/25/2013 03:04 PM

German cities are just multicultural dumps like British cities.

Although, German cities are somewhat less multicultural than British cities, they're well down the road to white Germans being a minority pretty soon.

[i like that multicultural dump, that bears repeating]





rewboss

02/25/2013 03:36 PM

You're not wrong with your observation on the difference between German and British humour. German culture is very strictly divided between "funny" and "serious", and never the twain shall meet. There is a time and a place for being funny, and while the Germans admire our British "dark humour", they can't quite muster up the courage to do it themselves. I have never been to a British funeral where nobody laughed; and I have never been to a German funeral where anyone did.

I'd characterise it this way: The American comedy hero is the wise-cracking genius who teaches you that you can use humour to vanquish your enemies and come out on top. The British comedy hero is the cynical failure who teaches you that you can use humour to make life's trials and tribulations bearable. The German comedy hero is the clown who first takes you away from everyday life to a fanciful Land of Comedy, a safe distance from where you can hurl abuse at life's absurdities. That's why German comedy is full of grotesque caricatures pouring scorn on politicians and religious leaders.




zimmy

02/25/2013 02:14 PM

You have been fooled. They do not really understand the joke, anymore than they know how really to be gentlemen. They try, but the facade always cracks under pressure.

Captain W E Johns had their measure. "Unimaginative," that's how he described them.






henrikthegreat

02/25/2013 01:38 PM

I love to drive my 12 year old Mercedes E class at 130 mph down the autobahn without speed cameras everywhere ...
also I guarantee at 130mph I will be overtaken regularly.
It is ironic that the UK has more CCTV cameras per person than any other country in the world.....the Stasi and their DDR masters would be proud of us. Germany is a very liberal country compared to Britain....





Sonbeams

02/25/2013 01:29 PM

I lived and worked in Germany in the 1960s, one year in the RAF and one year on the domestic economy. My main purpose was to learn the language and I managed to do that. Although most of it has now gone I can still converse with German speakers after a fashion.

I loved the country, the people and the language which is one of the most expressive I have learned. Germans are very helpful when one wishes to learn more about their language and their culture, unlike the French who are much more dismissive of one's earnest attempts to speak French. They are also more willing to engage in a philosophical dialogue with complete strangers than any other people I have met.

I travelled in both the North and South of the country. There are local festivals in virtually every little town at different times of the year. The Germans love their beer and sausages and singing. They are a very convivial people.

As to why the British would tend to avoid Germany as a travel destination, if this is true it is likely because in general we have been a very insular people for most of our history. We are also still subjected to a relentless barrage of Second World War propaganda that probably colours our perceptions of the country and the people. Margaret Thatcher was particularly affected by this insidious conditioning and seemed to be quite prejudiced in her dealings with the Germans.





Mr Marlboro

02/25/2013 01:27 PM

Germany is what Britain would have been if it hadn't been for the various political parties and their 'experiments' with our demographics, aided and abetted by the BBC and the arrogant elitism of our politico/corporate hierarchy.

Personally, I enjoy my visits there, precisely because I don't meet any of my chav countrymen/women.

One day I might even move there.






BritishHardman

02/25/2013 01:23 PM

The majority of Germans are very polite, formal and conservative. More so than the English actually.

The only region of Germany that breaks this stereotype is Bavaria, who tend to be louder, more jovial and far more like Southern Europeans, which is understandable, given their proximity to Italy.





zagato

02/25/2013 01:04 PM

I go to Germany a lot. Very competent but unyielding and inflexible and lacking somewhat in common sense. If rulebook doesn't say so they won't do it. Countryside pretty from a distance but lacking interest close up. Monotone. Most of UK is far prettier and little English towns lovely. German architecture stern. For holidays France or Portuguese coast. Germany for work.

Last edited by Alex Linder; August 6th, 2013 at 06:40 PM.
 
Old October 5th, 2013 #39
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Default German Economic Policy

GERMAN ECONOMIC POLICY
by WILHELM BAUER


State and Business

THE basis for all government intervention in business in Germany is to be found in the National-Socialist conception of the relation between business and the State. According to the German theory business is subordinated to the State. Formerly, it was believed that the fate of the State and of the nation lay in business, for it was said that business was of such great importance and so powerful that it controlled the State and determined State policies.
In the National-Socialist State the relation between, business and State is just the contrary. Today the State or State policy controls or rules business.
I must emphasize that in National-Socialist eyes the State incorporates in itself no absolute value as is the case, for instance, in an absolute monarchy. The supreme value is the nation which we call in German Volksgemeinschaft, the community of the nation. The State is only the form of organization and the manifestation of the will of the people.

This means that the State is not concerned with economic conditions as long as they do not conflict with the welfare of the nation. The principle of private initiative has been maintained. However, where it seems necessary to bring business into line with the welfare of the nation, the State will not hesitate to intervene and direct business into the desired channels. In Germany, contrary to the usual belief, we have no "planned economy", but rather a "directed" economy if I may use such an expression.

The Aims

The aims of the present regulation of production can be summarized in a few words. First, the securing of supplies of raw materials for industry. All measures serving this aim are included in the Four-Years-Plan the aim of which is to make Germany as independent as possible of imports by increasing domestic production.
Second, an increase in domestic agricultural production with the aim of making Germany, as far as possible, self-sufficient in the field of foodstuffs.
Germany has only a few raw materials and has always been faced with the necessity of importing the greater part of her raw material requirements. But as you realize, imports can only be paid for out of export proceeds or other credit items in the balance of payments such as shipping, insurance, or proceeds from capital investments abroad. As a result of the War, Germany is no longer a creditor but a debtor country.

In other words, she was burdened with a tremendous indebtedness and had at her disposal no great income from investments abroad, while her other income from abroad is today less than it was before the War. Germany must therefore limit her imports to the extent of her exports, with the consequence that Germany's raw material and foodstuffs imports are dependent on the amount of goods which other countries are able and willing to take from her in payment.

Indirect and Direct Regulation of Production

The German government follows no definite theory in establishing the methods by which intervention in the field of production is to be accomplished. This is one of the most characteristic traits of National-Socialist economic policy. In combatting unemployment, the government did not follow one theory such as the theory of direct public works or the theory of the stimulation of private initiative, but followed both theories impartially according as to which seemed best at the time. The same is true of the regulation of production.
The various measures may be classified as: 1. indirect and 2. direct.
The State undertakes indirect measures when it intervenes not in production and capital investment themselves but in conditions which govern them.
There are four special groups of indirect measures:
1. Regulation of taxes, especially reduction of taxes.
For example, in order to revive automobile production, which was at an extremely low level, and thus to stimulate motorization in Germany, which had lagged far behind the level of motorization in other countries, as early as 1933 the Government abolished the tax on all new passenger cars, later extending this to all automobiles. This made automobiles much cheaper and increased the sales of the industry.

In the last five years, these measures together with the economic upswing have brought about a great advance in automobile sales and a great improvement in German motorization. In 1932, only 19 out of every 1,000 people in Germany owned cars as compared with 41 in France and 37 in Great Britain; today, however, the figure for Germany is 35 in every 1,000, as compared with about 51 per thousand in France and Great Britain.

A further example of regulation of production by means of tax reductions was the exemption of short term capital goods from income tax. After 1933 the value of these goods could be deducted from taxable income of the individual and from the taxable profits of an enterprise. This stimulated the purchase of such goods and was a means of increasing the low activity of the capital goods industry. The elasticity of the National-Socialist economic policy can be seen in the fact that this measure was repealed as soon as the capital goods industry was fully employed.
2. The second means of indirect regulation of production is price policy. This can take place in two ways: by a reduction in costs and by an increase in, or guarantee of, sales prices.

These methods have been chiefly used in the field of agriculture, where production reacts quickly to price changes. An example of this reduction may be seen in the prices for artificial fertilizer, farm machinery and agricultural implements. On the other hand, by a scaling of farm prices it has been possible to increase considerably the acreage given over to winter barley, the production of fiber plants and oil fruits, and the number of sheep.
3. Closely related to this price policy is tariff policy, the utilization of which is necessary where domestic goods compete with foreign products. This is particularly important in the case of agricultural products, the prices of which are considerably lower on the world market than in Germany. Special boards have been set up in order to compensate for these differences in prices, and are empowered to regulate imports.

4. The last method of indirect regulation of production is the prohibition of new private issues on the capital market. Since new issues are permitted only for special purposes all those branches of trade and industry which are shut off from the capital market are thus limited in their capital investment possibilities. They can only extend their plants, etc., to the degree that their own funds allow. Thus in 1933 a special board was set up under the control of the Reichsbank, to which application must be made before new issues are floated. Permission is only granted for private issues in the case of companies which serve the ends of the Four-Years-Plan, where, moreover, no other possibility of financing their work exists.

Capital Investment Policy

Among the large number of methods of directly influencing production, I have to mention first the government orders which predominate in some economic branches.
Apart from this a good deal of direct regulation of production by the Government consists of the regulation of capital investment activity.
Thus the regulation of capital investment activity really means a planned direction of capital investment. This was proved especially necessary when work was started on the Four-Years-Plan. In a certain sense capital investments were scaled according to urgency. Four-Years-Plan, rearmament and exports are the most important.

A number of measures have been introduced in this connection. They may be classified as follows: -- There are capital investment prohibitions, the purpose of which is to prevent industries whose capacity is sufficient to cover demand, from extending their plants. This prevents needless using up of the limited capital and material available, and avoids over-production and consequent disturbances of the market. We have such capital investment prohibitions, for instance, in the paper industry, in the glass industry, in part of the textile industry and in part of the chemical industry.

In the second place the regulation of capital investments and production by profits and sales guarantees given by the government. I have already emphasized that National-Socialism adheres to the principle of private initiative. However this does not prevent the State, if it seems necessary, from relieving private business of some of the risk it runs in undertaking certain projects. These profits and sales guarantees given by the State are especially important in the production of staple fibre, motor spirit and synthetic rubber. The companies engaged in such production in Germany are private firms; their profits however, have been guaranteed by the State to a certain extent, since their products are of great importance for the economic policy of the State.

In some fields the State itself has gone into production, and has for this purpose made capital investments. The principle that business is to be left as far as possible to private initiative does not mean that the State cannot engage in economic activity in certain fields of production and under certain specific conditions. This is the case, for example, in the field of iron ore production.
After the loss of territory in the War, only a small part of Germany's iron ore requirements could be covered by domestic production. In view of the fixed costs and prices prevailing and under the usual methods of exploitation only part of Germany's iron ore deposits could be mined with profit. The dependence on imports in the case of such an important field as iron ore had to be eliminated. But the conditions and problems in this type of production were so peculiar and so extensive that the State correctly assumed the initiative itself. The Government, founded a company, the Hermann Goering Reichswerke, the business of which is the mining of the low content iron ores which abound in Germany.

Subsidies


One of the oldest and best-known methods of State intervention both here and abroad is the granting of subsidies by the State. Outside Germany, especially in the United States, subsidies are well-known, above all in the shipping industry. Here too private business is not in a position itself to operate an economic branch in the way the State considers desirable. The same thing holds in Germany for some spheres of production. For example, certain building projects, such as the building of dwellings for agricultural workers or the erection of settlements for industrial workers, are carried out either directly with the help of contributions from the State, or indirectly with the aid of loans granted by the State on extremely favorable terms. Furthermore, the production of nonferrous metals has been supported by State subsidies for many years.

Regulation of Raw Material Consumption

The third group of measures of government production regulation concern raw material consumption. Almost the whole of German industry is subjected to the system of raw material quotas. The essence of quota-fixing lies in the control of imports, which was introduced in 1934 as part of the New Plan for German foreign trade. The control is carried out by 27 control boards, one of which has been set up for each branch of industry. Factories which use imported raw materials are only allowed to purchase a certain volume of raw materials abroad. Normally, the basis of the quota-fixing is the consumption of a certain month. But the importance of the orders which the company has to fill, is also taken into account, export orders being given special consideration.
Apart from this system of import regulation there exist a number of decrees dealing with the use of raw materials.

For instance, as a result of the scarcity of wool and cotton it has been decreed that all wool and cotton cloth manufactured in Germany for the domestic market must contain a certain percentage of staple fibre. Certain products, for example doorknobs, may no longer be made of brass. In private residential buildings only a certain amount of construction iron may be used. This system of regulation has been carefully worked out and is not too strictly bureaucratic in its application. In many cases the usual raw materials must be replaced by new synthetic raw materials which can be produced without any import. The use of these new synthetic raw materials does not mean a lowering of the quality of the finished product. On the contrary, the shortage of raw materials leads to new inventions and improvements and even brings about as in the case of buna (synthetic rubber) a technical progress which otherwise would not have occurred.

Regulation of Labor Supply

When in the course of the last few years unemployment disappeared in Germany and turned into an ever greater shortage of labor, it was impossible for the government to view this passively, since otherwise there was danger that some industrial branches would be compelled to restrict their production. Thus the government had to regulate labor supply and distribution of labor among the various branches. Labor reserves today in Germany can be secured by the employment of additional female labor, later retirement, and employment of superfluous independent workers as wage earners in industry. But these reserves are relatively small so that the question arises how to increase efficiency of labor.

But the problem is not that of merely employing more people, it is the employment of people in industries where they are most needed. Thus it was necessary to take care that in certain industries there was no diminishment of the labor supply. A law was passed recently which makes any change in employment dependent on the approval of the labor office. This law applies to the following branches and industries: agriculture, forestry, mining (excepting coal mining), chemical industry, building industry, building material industry, iron and metal industry. By this the German government hopes that in these important branches the especially urgent needs of the state will be covered.

Increase of Production

If you were to ask me what success has been achieved in the sphere of production regulation, I could not do better than to give you a few figures which will show you the extent of the increase of production in Germany. Total industrial production in Germany is today 144 % greater than in 1932. Even the peak year of 1929 was exceeded as early as 1936, while today about 30 % more industrial goods are produced than in 1929. The production of capital goods has risen much more strongly than has the production of consumption goods, being now four times as great as in 1932 and more than one and a half times as great as in 1929.

Progress in the field of domestic raw material production has been even greater. Iron ore production has risen from an average of 843,000 n metric tons for the first 3 months of 1938 to 1,226,000 metric tons in the first three months of 1939. This means an increase of 45%. Furthermore, there has been great progress in domestic oil production. In 1938, staple fibre production has reached 155,000 metric tons as compared with 5,400 metric tons in 1933 and 102,000 metric tons in 1937.

Consumption policy

A number of measures of production regulations, namely all those which affect production of consumption goods, also influence consumption. When, for example, in the interest of a sufficient bread supply it is decreed that all bread should contain a certain amount of maize flour, this is felt by each individual consumer. (Incidentally, in view of the good harvest, this particular measure was abolished on October 1st, 1938.) The same is true of the changes in the textile field and in other fields where the new synthetic materials are gaining a foothold.
The idea of "consumption regulation" is undoubtedly something completely new to you. In the economic textbooks and handbooks nothing will be found on this subject. Of course, the fact that -- contrary to general belief -- man cannot consume what he desires, is as old as the hills. And even today in the modern economic systems the individual is subjected to many restrictions in his consumption.

In the Middle Ages there were strict provisions as to the clothing worn by the various classes. The Mercantile countries, that is, the countries of the 17th and 18th centuries, restricted consumption for economic reasons, mainly in order to stimulate home industry and to cut down imports. And if you consider your own position you will find none or only a few restrictions in your consumption as the result of State action (you will remember of course the days of prohibition!), but you will probably find great restrictions in consumption as the result of custom, fashion, habit, social viewpoint and, last but not least, industrial production.

It would probably be very hard for you to secure outside the six to eight different forms of straw hats to be found in almost every shop, one which was especially light and comfortable and in a form designed by yourself.

This is nowhere manufactured and it would be hard for you to find someone to make you a straw hat according to your own design and measure. Industrial hat production, which is rationally based on machine production of hats, will certainly not do it. While on the subject of hats, it would be impossible for you to walk around in America, in a round plate-like felt hat, instead of the usual form of felt hat, without being laughed off the street, for that would be contrary to American custom and habit. And finally the fact that each family must spend a certain part of its income on food, the amount being in inverse proportion to the income, is most certainly a restriction of freedom of consumption which weighs quite heavily on the individual.

As you can see, complete freedom of consumption is a rather doubtful matter. Once you have realized this, it will no longer seem absurd to you when I speak of government consumption regulation. In the authoritarian states, a direction of consumption forms part of the totalitarian claim of the State, which subordinates the individual to the higher needs of the nation.

The aim of consumption policy in Germany is to increase consumption and thus raise the standard of living of the entire nation, -- especially that of the working class -- to adjust consumption to production and to regulate consumption along National-Socialist lines. The aims of consumption regulation are partly of a political nature and partly determined by the economic situation.
It is far harder to regulate consumption than it is to regulate anything else in economy. For every measure of consumption policy affects the largest unit, the entire population. A decree concerning the iron ore producing industry affects only a few hundred firms. However, an appeal to the consumer affects 19 or 20 million households with 75 million people. This fact alone makes special methods necessary for regulation of consumption.

I have hinted at these methods in telling you about the bread supply and textile production. Of a similar nature are certain limitations imposed upon trade, whereby only a fixed amount is allowed to each customer, as for example in the case of fats in months when there is a shortage.
The most important means of regulating consumption is publicity. Of course, this method does not guarantee as sure a success as do legal measures. But it has the great advantage that it gives the consumer the feeling that he is doing something of his own free will and that the only pressure exerted upon him is that which is exerted by his conscience.

Nutrition

Germany is in the unfortunate position that there is a limit to which those foodstuffs the consumption of which increases with a rise in income, such as fats, butter, eggs, etc., can be produced or imported. Thus, the aim has been to influence the consumer to use as much as possible those foodstuffs which are abundant in Germany and to use to a less degree those which are not so plentiful or which have to be imported. At the same time, there was a possibility of directing nutrition in the best ways from the point of view of health.
For instance everything possible was done to convince people that for a great part of the population, for example those who do not do hard physical labor, a diet too rich in fats is not especially healthy. Along the same ideas, great success has been achieved in increasing the consumption of fish. Today Germany consumes 26.9 lbs. per head per annum, as, as compared with 18.7 lbs. five years ago.
A summary of everything desired in the field of consumption regulation may be found in the food list which the German Institute for Business Research has worked out. The Institute classified the food-stuffs into three groups, those whose consumption should be increased, those whose level of consumption should be maintained, and those whose consumption should be restricted.
The foodstuffs concerned are as follows:
Consumption to be increased: potatoes, sugar, jam, skimmed milk, whey cheese, barley, oatmeal, sago, artificial honey, buttermilk, Harz cheese, Limburg cheese, vegetables grown in Germany, fish, mutton, rabbits.
Consumption to be maintained: bread, pastry, flour, fruit, lentils, pork, eggs, milk, venison, rice, peas, dried fruits, poultry, cocoa,,beans, honey.

Consumption to be restricted: beef, veal, butter, lard, bacon, margarine, cooking oils, fats, buckwheat, millet, imported vegetables, high fat cheese.
In Germany we do not have a regular supply of all foodstuffs throughout the year as you do in America. The Institute therefore drew up a list of those foodstuffs which are to be especially pushed in certain months. As an example I shall quote two months: January: pork, geese, fish, cabbage, root vegetables, fruit and vegetable conserves. September: mutton, poultry, mushrooms, pickles, tomatoes, beans, salad, spinach, plums, pears and apples.
However, I would like to emphasize that these are not the only goods which may be consumed, but the public is to be educated to adjust its diet to conform more or less with the fluctuations in the supply of certain foodstuffs. Publicity to this end is not carried out by the Institute for Business Research or by the Government direct but by organizations like the Reich Food Estate (Reichsnährstand) and private companies.
Another measure serving the same purpose is the Anti-Waste Campaign. The purpose of this is clearly to be seen in its name.

Other Fields of Consumption

The problems of consumption regulation in other fields are just as great as those in the field of foodstuffs. It is well-known that Germany must import the greater part of the raw materials required for the manufacture of textiles, shoes, etc. As a result of the considerable rise in income in the course of the last five years, the demand for these goods has increased greatly. Thus there arose the danger that consumption would exceed production possibilities.

Since it is impossible forcibly to restrict the consumer in this field, the aim was, mainly by means of publicity, to direct consumption in those paths where there was practically no limit to consumption possibilities. Therefore, consumption was directed to all such services as travel, theater, sport, diora, etc. The introduction of the low-priced popular car also means a direction of consumption to a ware which can be produced in quantities sufficient to meet demands.
Of course publicity is not in itself sufficient. For it is precisely in those fields of consumption where the consumer feels himself free, that it is hardest to get him to use his money for the things which it is desired that he buy. Therefore, publicity has been effectively supported by price reductions of all kinds. Here, too, the low-priced popular car is the best example.

This will cost about 1,000 RM. and will be much cheaper than any other car. Moreover, the low-priced popular radio set has promoted purchases in this field. This is being continually improved and reduced in price. The Reichsbahn, the German State Railroad, has established reduced fares for trips to all large exhibitions, such as the automobile exhibition, the radio exhibition, sports meetings, etc. so that more people can take advantage of these occasions.

Organized Consumption

A special field in consumption regulation is the organization of consumption which is carried out by the large political units, especially the German Labor Front. Here political and social aims correspond to economic aims. Everything is being done to influence the worker to spend his income as much as possible for such things as mean a substantial rise in his standard of living and as little as possible for such things as burden the German foreign exchange balance. Through organization it is possible to effect price reductions, and these price reductions are to make it possible for the worker to do those things which formerly only the better-situated classes were able to afford.

The main factor in the field of organized consumption is the organization Kraft durch Freude "Strength through Joy." The following figures and examples show what has been done. Up to 1937, 9 million German citizens had taken journeys and walking trips. The following were taken at random from a list of 350 vacation trips from Berlin which have been arranged for the period from May to September 1938: --

A two-week trip to Upper-Bavaria costs 60-50 RM., while an eight-day stay on the Baltic costs only 31 RM., and a 16 day trip to East Prussia but 41 RM. These costs include everything: railroad fare, room and board, trips, etc. In the last theater season, 1937/1938, the " Strength through Joy" arranged 7,000 theater performances. For the workers on the auto highways alone some 7,000 concerts and entertainments were arranged. In the last four years 34 million people have participated in the evenings of culture and entertainment arranged by the organization "Feierabend" which I might translate into English as "The Evening Off." Seven million have taken part in sport exhibitions, gymnastics, games, etc. On the island of Rügen a large seaside resort is being constructed, which will offer 20,000 an opportunity for recreation and rest.
Sea trips take German workers to Portugal, Madeira, Norway and Italy. By the end of 1937, over 180,000 had made such trips. Recently the German Labor Front launched its own ships, the Wilhelm Gustloff and the Robert Ley, which were especially built and fitted for such sea trips. It is planned to build about 20 steamers for this purpose.

The comfort and living conditions in that ship are but little different from those in the great liners. just as on the great luxurious liners, so on the Wilhelm Gustloff and the Robert Ley, you can have your daily bath in fresh water, enjoy running hot and cold water in your cabin, drink ice water, swim in a large pool, play in the sports room, enjoy all the deck games and dance in the evening or attend some entertainment.

The land trips which are taken are not different from those arranged by the North German Lloyd or by the Hamburg-America Line. Yet the whole three weeks only cost the sum of 158.37 RM., including the railroad trip from Berlin to Genoa and the railroad trip from Hamburg to Berlin. The usual rule is that only those workers are allowed to take these trips whose income is not over 300 RM. per month; most of the participants, indeed, earn less than 200 RM. monthly.

All these possibilities of organized consumption, which each year include more people, lead to the fact that the standard of living in Germany cannot be ascertained by the usual methods, and also leads, I would like to say in closing, to the fact that the standard of living in Germany cannot be compared statistically with that in other countries.

Therefore, when you read any statistics about the standard of living in Germany, you yourselves will have the impression, after hearing about these trips, etc., that these figures do not give the right picture, since the standard of living in Germany is affected by a number of things which cannot be shown by statistics.
 
Old November 5th, 2013 #40
muslimsareathreat
don´t panic i´m germanic
 
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Originally Posted by Alex Linder View Post
Wurst displays the typical stubborn nature of the German mentality never to admit to a fault. Attack Amero-british ways. Standard from. Self criticism is and never has been a part of the German character. Neither has irony and a sense of humour.
Which means we are so much alike the English then.
Stubborn and Arrogant Warmongers.
Well, the least germans are still hating the Allies cause of the WW2 which is understandable.
If you work all the time to pay for the E.U. there is not much space left to be honest.
 
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