The German press spoke about the paradoxical situation in the European economy

The German press published material that examines the financial and economic situation in Germany in connection with the coronavirus pandemic. Die Zeit has published an article by columnist Mark Shiritz who discusses economic uncertainty.

Schiritz writes that the German government this week will allocate almost 1,4 billion euros in the form of guarantees, loans, grants and other financial assistance to support industry and business. Other European countries follow the same path. So far, plants and factories are forced to stop production due to a pandemic. But the allocation of funds by the state is actually a violation of the basic law of the liberal economy, which Europe has always stood for - the state’s interference in economic processes.

The author reports that in Germany and Europe as a whole, an avalanche-like drop in demand for entire lines of goods and services is recorded. On the other hand, the suspended work of industry can lead to a limitation of offers on the market, and already leads. The same medical masks, medicines, medical equipment, personal hygiene products, food.

A paradoxical situation arises in the economy when, on the one hand, the consumer buys almost nothing (except the most necessary), and on the other hand, the manufacturer has practically nothing to offer him for purchase.

Mark Schiritz suggests reflecting on what this paradoxical situation will lead to, when a shortage of goods and services threatens inflation and, at the same time, a drop in demand can lead to deflation. In this situation, investors simply have a head spin: does it make sense to invest credit in business projects, if there is absolutely no understanding of which direction these projects will begin to move, will they not collapse at the first stage.

According to a German journalist, the answer to such questions depends on the duration of the economic crisis and economic uncertainty. But the problem is that today no one in the world will undertake to say exactly how long the crisis will last.

Comments

[Svarog]

So far, plants and factories are forced to stop production due to a pandemic. But the allocation of funds by the state is actually a violation of the basic law of the liberal economy, which Europe has always stood for - the state’s interference in economic processes.

Germany moves away from liberal trailers, but we don’t ..

[Honest Citizen]

In such a situation, investors simply have a head spin: does it make sense to invest credit in business projects, if there is absolutely no understanding of which direction these projects will begin to move, will they not collapse at the first stage.

So let “analyticoff” and “iksperdoff” ask around.

Quote: Svarog

Germany moves away from liberal trailers, but we don’t .. wassat

So they probably have economists in the government, and not like ours - financiers.

[Gray brother]

Quote: Honest Citizen

So let “analyticoff” and “iksperdoff” ask around.

The analyst asks the expert:
- Listen, can you understand what is going on?
- To explain to you?
“No, I can explain it myself.” Can you UNDERSTAND?

[iouris]

Quote: Gray Brother

Can you UNDERSTAND?

It is impossible to understand. You need to remember that you have to work only for food, or work in the garden and grow food yourself. But in Europe there are no dachas and never will be.

[x.andvlad]

But the problem is that today no one in the world will undertake to say exactly how long the crisis will last.
With a high degree of probability, the crisis will decline along with the decline of the pandemic.
They know how to work in Germany, and their goods have always been in high demand.

[bar]

They know how to work in Germany, and their goods have always been in high demand.

Meanwhile, Volkswagen plants in Kaluga have been shutting down since Monday. Due to the termination of the supply of components from Europe

[malyvalv]

No one doubts German goods. Doubts are in solvent demand. Germany has too much export, which will inevitably collapse after an epidemic. In America, more than 3 million were listed on the stock exchange in one week.

[Fuethe]

Most likely it is just unfolding. The current crisis is not a crisis of overproduction in its classical understanding, but a systemic crisis. The economy is flooded with unsecured money and is supported only by the demand constantly heated by various mechanisms. The fall in demand will pull the economy along with it, it will be saved, as before, by pouring unsecured (Empty) money under guarantees of subsequent success (State guarantees). But that won't help in any way. The policy of quantitative easing, which has been carried out so far, has led to this. It needed a reason to explode all over the world. Two reasons just ripened - Coronovirus and overproduction of oil, as a result of the collapse of the OPEC + agreement and the collapse of oil prices .... Everything is just beginning .... We take places in the forefront and observe. "Interesting times" are coming ....

[AU Ivanov.]

Where is liberalism in our country? The state is actively climbing into the business sphere. And, by and large - interferes with work.

[Fuethe]

But classical liberalism has long been gone, and whether it existed. This is a mask that is beneficially applied when it is beneficial. Government regulation is generally global practice. A simple example is American Treasury (Treasure is a generic name for US government debt, derived from the English word "Treasury", from which the word "treasury" came from) - a way to attract foreign investment under state guarantees. You noticed - State. But the state prevents it from working, not because it crawls into all areas, but because it incompetently creeps into areas and makes unprofessional decisions. There is no holistic state policy aimed at the growth of the country's economy, no strategic planning, no coordination. There are only declarations. I would say that the state is just not in the management of the country's economy or it is extremely insufficient. Ineffectively.

[iouris]

The economy is of course ... The consequences of falling living standards and a shortage of food products for the "golden billion" have not yet been calculated. No matter how a new Fuhrer appears.

[Svarog]

Quote: iouris

The economy is of course ... The consequences of falling living standards and a shortage of food products for the "golden billion" have not yet been calculated. No matter how a new Fuhrer appears.

It feels like soon to appear .. and maybe not one ..

[Zoldat_A]

Quote: iouris

falling living standards and food shortages in the "golden billion"

The "Golden Billion" is unlikely to have a shortage of food as long as there are these products on Earth, as long as money can buy them and as long as someone on Earth needs money. At least for those who are ready to exchange food for money.
It would be interesting to look at the "golden billion" in some post-apocalyptic fantasy in the spirit of Hollywood. When money does not have a value from the word "absolutely", and the main value is water and food. That pampered billion will die out in a week, it will turn into rogue feral, begging for stubs from the strong and skillful, adapted to survival.

Here's who would have explained to our citizens, far from the "golden billion," at least a couple of weeks ago that it is not necessary to buy tons of buckwheat and noodles. And then the people were delighted, they thought that again they returned to the deficit for buckwheat - they rushed to buy cereals-noodles with such energy that, it seemed, they were buying them for the rest of their lives. Saleswomen in "Magnet" told that an old woman - almost the same age as the Great October Revolution - came and took away 15 kg of salt on a cart. Where is she so much? And at the kiosk where I take flour, two aunts fought over buckwheat.
It’s good that even now you can go to the store and calmly buy a kilogram of sugar and a couple of packets of noodles. Perhaps the most thrifty citizens have run out of reserves?

[Pathos]

Interesting fiction on the first point, but there is one thing but the golden billion is armed to the teeth. It’s as if I’m not doing nonsense with reserves for the future. But after the darkest speech about the holidays until April 5th I’ll go buy the ammunition for the gun. Whoever has cartridges will have buckwheat

[aybolyt678]

Quote: Zoldat_A

It would be interesting to look at the "golden billion" in some post-apocalyptic fantasy in the spirit of Hollywood.

Elon Mask has already proposed the creation of a colony on Mars ... and this idea is in demand .. It’s true that only a million will fly away during the War, communism will return and again!

[iouris]

Quote: Zoldat_A

the grandmother came - almost the same age as the Great October Revolution - and took away 15 kg of salt on a cart.

Learn! But try to diversify purchases in the hope that in the future the natural exchange of goods will improve, and then you can exchange salt for something else (alcohol, canned food, cartridges).

[Zoldat_A]

Quote: iouris

in the hope that in the future natural exchange of goods will improve

I don’t think so wild ...

Well, if it happens, then I will envy the "golden billion" much less than that grandmother with salt. Grandma lived a life in which there was always the word "deficit" - she will be able to dispose of her salt. And the nouveau riche and their lipsy friends very quickly forget how they got to the police for speculating in bed linen near the metro and did not taste anything sweeter than carrots at their aunt's in Saratov. They blocked a credit card - life is over ...

And we also remember our Sergeyevich

“Everything is mine,” said gold;
“Everything is mine,” said damask steel.
“I’ll buy everything,” said gold;
“I'll take it all,” said damask steel.

As the great V.F. Margelov used to say

There are cartridges - there will be food.

And what is worth any oligarch without protection? So, the skin is sausage ....
Yes, the protection is the first and will be robbed on occasion.

But it’s better, after all, to watch a hungry post-apocalypse performed by Hollywood than to live in it.

[Fuethe]

You would look into history not far. USA, 1928-1933. Prior to this, a completely prosperous country, and here you are - the World Depression and a huge army of unemployed .... Horrors can be listed for a long time. They are described well. In a market economy, it’s good only when everything is calm around, when conditional balances are more or less supported, but when you start to stagger, then an avalanche-like panic matures and everything falls. In the United States, it all started with an exchange panic, it pulled the banking sector into itself, and he, in turn, invested thoroughly in the economy. It took 10 years and even more and serious state regulation for the economy to recover. The system will be unbalanced pretty quickly and can mess. And then everything is possible even in the countries of the golden billion (and it is there that happens most strongly: the higher it rises, the more painful it is to fall) Well, a non-gold billion does not live like ice, although it will also hook it. In our global world there will now be very large storms, because everyone is tied up and no one can sit out.

[Operator]

Episode V: The Chinese Empire Strikes Back at the Western Alliance

George Lucas warned.

[iouris]

Quote: Operator

The Chinese Empire Strikes Back at the Western Alliance

This is not an adequate picture. The economy of China and the West are two sides of a single economic system. If anything, they will fall together.

[rocket757]

the problem is that today no one in the world will dare to say exactly how long the crisis will last.

Shaw say, shaw say .... gathered in a circle, but talked with a hand.
Ali how, will the market ruin everything?

[aybolyt678]

Quote: rocket757

Shaw say, shaw say .... gathered in a circle, but talked with a hand.
Ali how, will the market ruin everything?

Crisis in Greek court. And the courts are long. The court is for the aimless satisfaction of needs, excesses, over-expenditure of raw materials .. For all this, we and our children will have to answer .. Normal Communists, so that the Goal is indicated and the Way is illuminated, like the legendary Danko. Is there really no leader? Where did our sacrifice go for the interests of society?

[rocket757]

Quote: aybolyt678

For all this, we and our children will have to answer.

This is both obvious and probable!
Everything is complicated and simple at the same time.
Simple, because the methods are known and time-tested. Difficult because no one rush to follow them.

[aybolyt678]

Quote: rocket757

Difficult because no one rush to follow them.

Do you mean the storming of the Kremlin?

[rocket757]

It was besieged for a very long time ... by analogy, the last time the "White House" defended itself from someone.
But these are all undercover games, though with serious consequences for everyone who preferred to watch from the sidelines. The troubled times, however, do not want to be repeated, because the goals, objectives, and the current / title figures are not clear, not defined.
After all, a simple question, FOR WHOM ??? How many people will be able to give a definite answer to it?

[Fuethe]

I agree that the attack that fell on us (it's not about the coronavirus, it's just a trigger) for a long time and the pit will be deep. This is a total of "pouring into the world community." And the trouble is that living with wolves - howling like a wolf. Here, no matter how you rearrange the beds in the brothel, all one thing will not work. The processes that are going on are objective and individuals play a relative role here, they can only either strengthen or weaken, delay the inevitability, but it will come anyway, because it is inevitable. So is this crisis. It has long hung over the world, and therefore over our, economy. And what recipe - Unfortunately utopian at the moment - to change the system of relations. The classics argued about the possibility of building socialism in a single country. Did not work out. So it is necessary that in all .... Then this problem will go away forever. Only we won't have to see it ...

[Andrey Mikhaylov]

But Russia is a leader in liberal reforms, only on paper, all is well.

[Beringovsky]

This is not true. Fortunately, Russia is very far from the same Eastern European countries, not to mention Western Europe and the USA.
Therefore, we have a better situation.

[lucul]

A paradoxical situation arises in the economy when, on the one hand, the consumer buys almost nothing (except the most necessary), and on the other hand, the manufacturer has practically nothing to offer him for purchase.

But because demand was spurred by propaganda. And when propaganda slowed down, it turned out that these goods were not really needed ....

[knn54]

-Agriculture, food industry (always want to eat).
- Light industry (to dress, put on shoes, etc.)
-Heavy industry, primarily weapons enterprises ..
And then - the specifics of the industry of a single country: winemaking, tobacco products ...

[16329]

You are wrong, judging by today's German retail, you need to urgently invest in the procurement and production of hygienic paper products (toilet paper has already disappeared, towels and shawls are in line), disinfectants (not manufactured in Germany, purchased in India), flour, etc.

[il-z]

A colleague, originally from Tatarstan, told a joke recently on the topic:
"Naberezhnye Chelny Cardboard and Paper Mill in connection with the economic situation that has arisen due to the coronavirus pandemic is going to buy PJSC" KAMAZ "

[16329]

Indeed, in Amazone TB prices have already risen substantially with delivery in April (in Germany). The public continues to sweep paper products, people are concerned
It seems that Retail is trying to negotiate and raise prices but cannot yet, so there is no product in retail

[Cowbra]

According to a German journalist, the answer to such questions depends on the duration of the economic crisis.

Putin predicted the crisis of liberalism on September 30, 2019 ... And this German "expert" was trading face at that time. and therefore his opinion - you can flush it down the toilet))))

[Engineer Schukin]

It would seem, why the VO editors did not upload the translation of the article, and not their three-line interpretation of the article, which, as always, is unclean and biased.
Previously, VO was not so disgraced. 3-4 years ago, articles were laid out in full, and not "in the US / Germany / China declared" after which the whole essence of the original article is distorted in their own words, or, which is completely shameful, user comments are given under the original article.
Straight ashamed of a once decent resource.

[Thrifty]

We would have their problems! We, too, the people can not offer YOURSELF! Because of globalization, we release what is being imposed, and not what the population needs! Moreover, we really haven’t been doing anything for a long time!

[iouris]

Quote: Thrifty

We would have their problems!

And what do you know about "their problems"? There are "problems" and there are "problems". The overconsumption society is over.

[aybolyt678]

Quote: Thrifty

Moreover, we really haven’t been doing anything for a long time!

Until recently, I thought so too. Yet something is being produced, the problem is that there is nothing FULLY of its own. Therefore, it is so expensive due to imported components.

[NF68]

Over time, the approach to the pandemic will be more balanced. At first, everyone got scared. And so not only in Germany.

[missuris]

The fundamental law of the liberal economy, which Europe has always stood for, is state intervention in economic processes.

Airbus waving them from the gateway))

[Paul Siebert]

Under the conditions of coronavirus, the fate of our country is preferable.
Russia has always stood out for its collegiality, collectivism.
Our people are compassionate. Kind Sensitive to the troubles of one's neighbor.
Decades of "wild capitalism" did not erase the main thing from the Russian people. Love.
To the native, to the neighbor, to the passerby, to the colleague ...
While the West and Germany in particular are complaining of a falling economy and sitting shaking behind locked doors, our people are enjoying an unexpected week of rest, spring outside the window, swollen buds on the trees.
Yes, the crisis will hit us. First time or what?
We ourselves will survive and save others. Already started.
In terms of salvation, our people have always been ahead of the rest.
Different enemies were - defeated everyone.
We will defeat this miserable virus

[malyvalv]

It was easier to say: "We did not live richly, there is nothing to start."

[Paul Siebert]

I don’t know what to answer.
Logically, you're right.
We live poorly. We suffer. Undernourished. Do not wallow on the beaches of the Riviera.
Six months on our streets lies snow. And beyond the Arctic Circle - half a day, half a night.
But helping others is in the soul of our people.
Therefore, if the world is bad, everyone looks towards the Russians. They will save. They will help.
And nothing can be done about it. This is the law. This is given to us from above.
A Russian cannot be happy if an innocent suffers nearby.
Because of this, we have survived as a nation. Like a people.
The people are great. yes

[EnGenius]

Now the German economy is heavily tied to exports to the United States and China, which also exports to China. If the United States begins to introduce serious restrictive measures on exports, these two countries will find themselves in a great span. So, perhaps Germany will more readily begin to invest in Russia in order to receive cheaper raw materials and components for competition with China in other markets. Here for Russia will open an additional window of opportunity.

[Fuethe]

That would be all right, but the United States, I’m sure, will keep the Germans by the throat and watch carefully so that they don’t really swing it. But I am more interested in another question, it worries, if you like. In the last 20 years, I have only heard this magical mantra - foreign investment. All our hope is in them. But the investor will make a profit and take away, and here he will create only jobs and pay taxes. And if something happens, he will simply leave with his copyrights, and you will be left with walls, possibly equipment, but without the right to release his very products. And they didn’t even develop their own, all of it, the investor, will bring ... So the country cannot be pulled out ... We need our own engineering schools, our own industry. Its own. And only this will allow to stretch the country. The general hope of a foreign investor is a disastrous policy for the country. Well, of course, an investor is also needed, but only in areas of breakthrough, so as not to lag behind. And when even pig-iron frying pans from China are brought into the country - well, this is the land. (This is a little hyperbole, but it does not change the essence)