The tenor of the times is such that one needs to pay attention, close attention, to those who can shed some light on the financial crisis that is veering toward existential dimensions. And largely for worse, the Germans can provide us with a frightening cautionary example of where we might be headed.
They have been there, they have done that, and it wasn't pretty.
This week past Germany's chancellor (talk of a freighted title) the stalwart Angela Merkel sternly warned, "You should not underestimate the huge feeling of injustice among the people about what is happening, and it will only get worse."
The chairman of the Bundestag's parliamentary committee that oversees the government's bank rescue program, Albert Rupprecht, put it ever so bluntly, "If we cannot explain why the crisis took place, confidence in the economic system, the market, even democracy could collapse", (FT "Merkel Ally Warns Of Threat to Democracy" 3.25.09). These comments being generated by rising concern over the potential political impact are caused by the steepest downturn in the German economy since the 1920s/30s. I don't think a history lesson is needed here to know where that led.
This weekend thousands will be taking to the streets in Germany carrying banners emblazoned with "WE WONT PAY FOR YOUR CRISIS". Rupprecht meanwhile is calling for an inquiry to determine the causes of the crisis to be modeled on our 9/11 Commission. He wisely understands the investigation should not be handled by politicians in that they, like bankers and regulators, would be among those sitting in the dock. The commission would have subpoena powers and its findings should find their way into civil and/or criminal actions before the courts.
"We do not need a witch hunt nor an inquisition tribunal, but we need to identify who or what was responsible for the crisis. We should not leave it to the populists". And that comment, coming from the mists of German history, speaks volumes.
Furthermore the organizers of the dems tried too much, The intention was not only to protest against the crisis but also to protest against the coming G-20 and against NATO in general.
Today Germanys biggest newspaper Süddeutsche Zeitung wrote about the Germans becoming bored and annoyed towards news slogans which were getting worse with every day. Its true that Germans tend to be too anxious (German Angst), and the German government is doing too little to confront the crisis. Everybody seems to look to Washington, even here in Germany.
So: disapppointment, even frustration about our current government yes, a trend towards extremism: no (there is a relatively strong neo-nazi movement in eastern Germany, but this current has nothing to do with the actual crisis).
Cheers from Transatlantikblog
It's not all about money, money, money and me, me, me, you know ...
I read the FT and NYT and surfed the internet on my Blackberry - World Edition to keep up with the slow motion train wreck in progress in the economic global system. Nobody was in the least bit concerned, except for some - a minority to be sure - who are aware of these things and even predicted this exact thing. But the vast majority of the people had absolutely no idea. What was apparent at the time to Germans was the fact that their aging population and zero population growth could not support the retirement benefits of the older generation. One day, beer prices shoot up and that was the first signs of financial distress.
Germans will take to the streets. For example, undocumented workers would be confronted with an armed response. A soccer game will bring thousands to the street drinking and signing all night in the public squares. Americans will only take to the streets if they have no food. Big difference.
They also "have the bloody right to know" why the United States Government not only dismantled protective legislation, but quietly passed other legislation to FACILITATE what was going on. (Think about it... if a law actually says, "this is neither 'insurance' nor 'gambling,' and therefore may not be regulated as either"... what was the AUTHOR of that little bit of writing actually afraid of?!)
We all know that, in our heart of hearts, we're schnooks. We're Jacob Marley and Ebenezer. We're the cast of characters in "A Tale of Two Cities" and "Les Miserables," all in one, and we know why those were such thick books. But still, we like to pretend, and when we actually try to trade with one another's nations, we need for those pretenses to more-or-less be true.
And they weren't. In fact they were enormous and deliberate lies. (They still are!)
Yes, Germany in particular has 'been there.' In the 1920's, for instance . . .
As for the "two century experience in Democracy", only white American man have that.
The biggest difference, however, is that the U.S. today does in no way resemble Germany after WWI. There was a hyperinflation, a dollar was millions of marks which wiped out everyone who did not have relatives in the U.S.. Millions of returning soldiers were crippled, more than half a million children starved in the street. The U.S. economy is in a bad shape, but by no means that bad.
In addition, since America only has two parties, due to the winner-takes-all-system, a fascist party here would need to take over one of those two completely to rise to power
The problem with Americans is that they have not evolved enough since the Revolutionary War in their political thinking compared to their European counterparts - with the exceptions of the fascist and right wing NAZI periods to be sure. But the Europeans have developed much more of a social system based on more progressive ideas. Things seem civilized there and less so here as we fight over gay rights, and abortion, and fundamentalist dogmas in religion and economics.
I love America and hope that we all learn a lesson that we are all in this together in our country. Maybe we will emerge a better people now that market fundamentalism has been tarnished a bit and birth control and reproductive choice issues are seen as being wedge issues. The Germans have learned about war and hyperinflation - either word scares them. They want peace with the Russians.
The middle will hold in America unless there is no food.
"In addition, since America only has two parties, due to the winner-takes-all-system, a fascist party here would need to take over one of those two completely to rise to power."
And just what exactly do you think happened to the Republican party?
And I would say in response to the racist comment about white men having democracy: It's not white men, it's RICH men that have had democracy, and that's questionable too.
I'm a white man, but poor. And as such, I have no more voice, or access to justice than my melanin-enhanced brethren. Racism is racism. And a far worse crime when those who've suffered it, perpetrate it.
A much better analogy is the French Revolution. The parallels with 1787 "bailout" of the French financial sector are frightening.
The German fascists came to power by making sure that the Weimar Republic failed. Blame for the depression fell on those who were in power at the time (a perfect scapegoat) and the Nazis fingerpointed their way into power.
The Nazis did basically paint the Social Democrats in the Weimar Republic as clueless and inept. They blamed, however, Wall Street and bankers such as the Warburgs (i.e. Kuhn, Loeb) for the reparations as well as for the Great Depression, including the Madoffs and Greenspans of these times. You may want to read Ron Chernoff on that subject.
Alternet and the grass roots organization New Way Forward are helping to co-ordinate a nationwide series of protests set to take place on April 11th. Last time I checked, 11 cities were named and thousands of people had signed up.
If it has finally gotten to the point where the ire of overfed and sedated American citizens has been raised and these concerns are being taken to the streets, it may be that this article has appeared just in time.
I haven't waved a placard since my college days. I have yet to decide if I will participate.
Middle class Americans seem willing to accept their new status as serfs to the economic elite.
Do the numbers, we are joining Mexico and Russia as a failed state. We cannot even pay for healthcare for our soldiers....
Sending Bernie Maddof to jail won't suffice.
CEO's and CFO's are just the tip of the iceberg.
We need the board members who are supposed to be accountable to be investigated and prosecuted too. They were paid for failure too.
Nor can we forget that many who profited off this scam were not the ones who were left holding the bad assets.
The politicians protecting the bankers who paid for their elections are just as guilty.
America needs a Truth Commission that is NOTHING like the 9/11 Commission which was full of insiders protecting their own.
I'm not worried about Germany.
I am deeply concerned that the guilty will be let off the hook... which WOULD justify pitch forks.
Or retired insiders.
Countries with well developed democratic and moral ethic, especially those like Germany, that have been through particularly tough times and have a well developed social conscience, will face a new conundrum: will their political leaders be able to sustain their goodwill towards the United States, the country that has lead the World into this mess? The emerging big picture is far more terrifying than you or anyone else on this site is discussing at present. Most posts are still covering inconsequential side shows in and around Wall Street, using ever increasing cutsie vocabulary and side-stepping the real issues.
But there is hope and we should, of course, remain positive... I wonder?
Your explanation of the differences are reassuring because people everywhere are totally angry over this crisis. We are all calling for the heads of the people that caused it.
the trick is to get the right ones. Bernie Madoff was pretty simple but sorting the others will take time and diligent effort. Thank you again for clarafication.
Bull's Eye!
"These comments being generated by rising concern over the potential political impact caused by the steepest downturn in the German economy since the 1920's/30's. I don't think a history lesson is needed here to know where that led."
If you are trying to scare the hell out of the civilized world and infer that the BRD could revert to a NAZI-esque dictatorship, then you are as wrong as wrong can get. The chance that Germany reverts to so a thing are just a big as the chance that the USA could revert to such a thing.
I, as a progressive american jew living in Germany since 1997, expect better journalism than this, especially from progressive journalists. You should be ashamed of yourself for the gaping holes in knowledge that are presented in this article.
Not meaning anything derogatory to kiwijohn, that is. thanks to both of you for your articulate takes on this crisis which I am afraid is just beginning. Hopefully the G20 will accomplish something when they meet next week in London.
Berlusconi, that's another story. But the real rightwingers are in Poland or Beloruss.
Those banners are aimed strictly at german bankers who are doing the same swindling as american bankers. The very fact that german citizens have the same right to protest and express their views openly as citizens in the USA are allowed to do so, is a tribute to Germany's modern day republic, based on democratic principles, just like our republic in the USA. The german constitution is basely almost entire on our own.
"This week past Germany's chancellor (talk of a freighted title)"
Had you informed yourself first, then you would know that the head of state in Germany is the Bundespräsident, Horst Köhler. Merkel is the chancellor, yes, but the reins of power are shared by these two personalities, in order to make sure that 1933 is never, ever repeated. Your use of "freighted title" is really, really inappropriate. For the correct term since 1949 is: Bundeskanzler (or in the case of a woman: Bundeskanzlerin), which literally means "Chancellor of the Union"; before 1945, the term was "Reichskanzler", which literally means "Chancellor of the Kingdom". There is a HUGE difference here, in spite of the fact that both words are loosely translated into english as simply "chancellor". This means that Angela Merkel has a whole different slate of powers (much more restricted) and responsibilities than Adolf Hitler grabbed for himself and the brown mob in 1932.
I am German, born in 48, grown up in the consciense of the crimes that have been commited by parents and grandparents (though hopefully not in person). I am a socialdemocrat since the age of 16.
I thank you, bonncaruso, for your willingness and ability to see the change that has taken place in Germany. Today, this country is one of the most pacific and antifascist places in the world. There is no danger of anything like the 30tees.
To Kojerk::
Please, please don´t mention Berlusconi and Angela Merkel in the same sentence.
Sarkozy is a split personality The husband of Angela Merkel gave her a box with all the movies of Louis de Funes to make her understand this strange (though sometimes likeabel) person.