The article linked above mentions Röpke and Eucken as champions of free market capitalism, so to speak. Ironically, Bernie Sanders is quite in line with many of Walter Eucken's core ideas. For instance, Eucken declared legal responsibility to be an absolute necessity for competition within a market economy. Meaning that under Eucken's notion of capitalism, US prisons would be filled to the brim with white collar criminals from Wall Street and just about every multinational corporation, including Volkswagen.

Ludwig Erhard, credited by many to be the main figure behind the German "Wirtschaftswunder" (nothing wonderous about it), postulated real wage growth in line with productivity and target inflation as an imperative for a working social market economy. Again, very much in line with Bernie Sanders. Maybe even to the left of Sanders. A 5% increase in productivity and a target inflation of 2% requires a wage increase of 7%, otherwise your economy will starve itself of the demand it requires to absorb its increased production. You can steal it from foreign countries, like Germany's been doing for more than a decade now, but that kind of parasitic behaviour is generally frowned upon. Minimum wage in the US according to Erhard would be what now, $25-$30? So much for Sanders' $15...

Sennholz further mentions the CDU as a counterweight to the SPD. Well, the CDU's "Ahlener Programm" in 1947 declared that both marxism and capitalism failed the German people. In fact, it put significant blame for Germany's descent into fascism at the feet of the capitalistic system and called for a complete restart with focus NOT on the pursuit of profit and power, but the well-being of the people. They called for socialism with Christian responsibility, later watered down and known as social market economy or Rhine capitalism.

As for the economic policies conducted by the occupation forces: German industry, and large corporations in particular, were shackled for the role they played during the war. If you work tens of thousands of slaves to their death, you lose your right to... well, anything. If they had stripped IG Farben, Krupp and the likes down to the very bone, nobody could have complained. No economic liberties for the suppliers behind a genocide.

Next in line, the comparison with Germany's European neighbours. Sennholz wrote that piece in '55, so you can't really blame him for it. Italy had more growth from '58 onwards, France had more growth than its devastated neighbour from '62 onwards. The third Axis power, Japan, had significantly more growth from '58 onwards.

Why did some European and Asian countries grew much more rapidly than the US? Fair Deal? Nope, Bretton-Woods. Semi-fixed exchange rates caused the Deutsche Mark and the Yen to be ridiculously undervalued compared to the Dollar, thus increasing German and Japanese competitiveness at the cost of the US. Stable trade relations created by the semi-fixed exchange rates plus the highly expansive monetary policy in the US – that's what boosted Germany's economy most of all. Sort of like China over the last two decades, except we were needed as a bulwark against the evil, evil Commies, so the US kept going full throttle.

Our glorious policians tried the same policies (Adenauer/Erhard) in East Germany after reunification, even though global conditions were vastly different, and the result is the mess we now have over there. The entire industry was burned to the ground when they set the exchange rate too high, thus completely destroying what little competitiveness remained. Two trillion DM later, still no improvement. A job well done, truly.

Anyway, if anything, Bernie Sanders' program is closer to post-war German social market economic principles than to the East-German bastard of socialism, state capitalism and planned economy imposed by an autocratic system. However, even that messed up system produced significantly less poverty, both in quality and quantity, than the current US corporatocracy. No homelessness, no starvation, proper healthcare for everyone – reality in the German Democratic Republic (East Germany). And despite the fact that they were used as cheap labour for western corporations, no less. My first Ikea shelf was produced by our oppressed brothers and sisters in the East. The Wall "protected" the West from cheap labour while letting goods pass right through – splendid membrane, that one.

PS: Since that article was written in '55, I have to mention one of my city's most famous citizens: Otto Brenner. He was elected head of the IG Metal, this country's most influential trade union, in 1956 after having shared the office since 1952. The policies he fought for, and pushed through, during his 16 years in charge of the union are very much in line with what Sanders is campaigning for.

Even here in Canada both UPS and Purolator have "No signature needed" levels of service where it just gets left at your door.

If you look at your next Purolator "sorry we missed you" stickynote, you'll see where to pick it up, whether they'll try again, and if you like, they'll just leave it if you call them up.

I've personally run off someone trying to grab a package off my neighbour's doorstep. Turns out it was a laptop sent to my neighbour fraudulently. Fraudulently in that the guy trying to grab it used someone elses's credit card to buy it, had it shipped to my neighbour's address, then waited around for the courier. It just so happened I was coming home at exactly that time.

The "hero" actually staged the whole thing to get with the the blind kids sister.

Idk. It's hard. "violence is sometimes the answer" is perhaps an inadvisable message to give to teenagers. but yeah, if there was ever a case where it was entirely appropriate, nay, warranted, to get mad and a bit physical, this is surely it. Who would you want to be your neighbour?

By the way, a Tornado doesn't have the range to reach Russia, especially not with a B61-12 as payload. So it doesn't really come as a surprise that our Eastern European neighbours are not particularly pleased either, given how it would be either them or us who this shit would be dropped upon when zealots in uniforms get up on the wrong side of the bed.

Nuclear proliferation, the cornerstone of future Fallout LARPs.

Our beggar-thy-neighbour policy, now featured on NC:
http://www.nakedcapitalism.com/2015/08/german-wage-repression-getting-to-the-roots-of-the-eurozone-crisis.html

"[Amazon]’s proposal carves out airspace from 200ft-400ft exclusively for autonomous drones, with a further 100ft above it declared a no-fly zone."

http://www.theguardian.com/technology/2015/jul/28/amazon-autonomous-drones-only-airspace-package-delivery

Delivery drone, delivery, delivery, surveillance, delivery, delivery, surveillance, neighbour's drone with a blowtorch attached hunting Amazon drone, delivery, surveillance, delivery, delivery, delivery, Reaper.

Yeah, how about a no-fly zone. Or do we have to roll out these puppies again...

Not true. Homosexuals are to be put to death, as are witches and people who work on the lord's day or let others (including animals) work for them, people who practise divination or "seek omens", people who curse their father or mother and people who have sex with their father or their daughter-in-law or their neighbour's wife or who give their children away as sacrifices to Molek.

Ever done one of these? I mean worked on the lord's day or had anyone work for you? (Not given away you children as sacrifices to Molek.)

It's all up to Francois Hollande now. Matteo Renzi is reasonably angry at how Germany is handling this shit, and France + Italy might just be enough to rein in the hardliners in Germany/Finland. If Hollande doesn't go into open opposition against Schäuble et al tonight, Grexit becomes inevitable.

Luckily though, my neighbours found some fitting stone plates at an abandoned(?) house to finally finish a spot in their backyard. I'll be over there the rest of the afternoon, pounding those plates into place with a rubber mallet.

Edit: Also, fuck the social democrats for turning on the people again.

8:18 – "Germany is very financially responsible".

The clip makes a few good points, twists others and omits some central issues. But I want to comment on the quote above most of all, because it forms the basis for all kinds of arguments and recommendations.

The claim that Germany is financially responsible stems from what has been paraded around domestically as the "schwarze Null" (black zero), meaning a balanced budget. Given how focused most economic debates are around the national debt or the current budget deficit, it shouldn't come as a surprise that not running a deficit evokes positive responses in the public. If there has ever been an easy sell, politically, it's this.

However, it's not that simple.

For instance, the sectoral balance rule dictates, by pure accounting identity, that the sum of public balance, private balance and external balance is 0 at all times. In case of Germany, this means that the balanced public budget (no surplus, just a fat zero) requires a current account surplus of the same size as private savings – or an accumulation of private debt. For someone to run a surplus, someone else has to run a deficit. In this case, foreign economies have to run a deficit vis-á-vis Germany, so that neither the German government nor the German private sector have to run a deficit.

The composition of each sector is another topic entirely, but the point remains: no surplus in Germany without a deficit in the periphery. If everyone is to be like Germany, Klingons have to run the respective deficit.

My question: is it financially responsible to depend on other economies' deficits to keep your own house in order? Is it responsible to engage in this kind of behaviour after having locked yourself into a monetary union with less competitive economies who have no way of defending themselves through currency devaluation?

Second point: capital accounts and current accounts are two sides of the same coin. If Germany runs a current account surplus of X%, it also runs a capital account deficit of X%. Doesn't explain anything, but it's the same for the countries at the other side of these trade imbalances. Spain's current account deficit with Germany meant a capital inflow of the same size.

Let's look at EuroStat's dataset for current accounts. Germany had run a minor current account deficit during the late '90s and a small surplus up to 2003. From then on, it went up, up, up. Given the size of Germany's economy within Europe, that jump from 2% to 7.5% is enormous. Pre-GFC, the majority of this surplus went to... yap, PIIGS. Their deficits multiplied.

Subsequently, capital of equals size flowed into these countries, looking for investments. No nation, none, can absorb this amount of capital without it resulting in a massive misallocation, be it stock bubbles, housing bubbles, highways to nowhere or lavish consumption. Michael Pettis wrote a magnificent account (Syriza and the French indemnity of 1871-73) of this and explains how Germany handled a similar inflow of capital after the Franco-Prussian war: it crashed their economy.

As Pettis correctly points out, the question of causality remains. Was the capital flow a pull or a push?

The dataset linked above says it all happened at just about the same time, in all countries. It also happened at the same time as Germany's parliament signed of on "Agenda 2010", which is the cause of massive wage suppression in Germany. Germany intentionally lowered its unit labour costs and undercut the agreed upon inflation target (2%). German employees and retirees were forced to live below their means, so the export sector could gain competitiveness against all the other nations, including those in the same currency union. Beggar-thy-neighbour on steroids.

Greece overshot the inflation target. They lived beyond their means. But due to their size, it's economically negligable. France stayed on point the entire time, has higher productivity than Germany and still gets defamed as the lame duck of Europe. Yet Germany, after more than a decade of financial warfare against its fellow members of the EU/EZ, is hailed as the beacon of financial responsibility.

Mercantilism always comes at the cost of others. And the EU is living proof.

Let's ignore for the moment what led to this current mess within the Eurozone. You point out, correctly, that Greece is too poor to service its debt. And yes, for the German government to do whatever is required to get back their loans is to be expected. However, Greece was incapable of servicing its debt five years ago. Yet the subsequent programs, all supported or even demanded by the German government, reduced Greece's ability to pay back at least portions of its debt. At the end of the day, goods and services are what it's all about. And by dismantling the Greek economy, nevermind the Greek society, they actively undermined what they publicly claimed to be working for: a self-reliant Greek economy, capable of financing the needs of Greece. And capable of paying back what is owed.

The question inescapably poses itself: was it done intentionally or are they blinded by ideology?

One doesn't have to be as far left as I am to see that it didn't work, doesn't work, and never could have worked. Even the likes of Krugman and Stiglitz are perfectly clear about it.

Varoufakis, as you note, has been just as clear about this at least since late 2010, when he published the first draft of his Modest Proposal with Stuart Holland. There was a very good discussion about it in Austin in 10/2013 under the topic "Can the Eurozone be saved?" Participants included Varoufakis, Tsipras, Flassbeck, Holland and Galbraith, amongst others. I submitted a short clip back then.

His argument that Germany won't see a dime when Greece is shoved off a cliff, as correct as it is, never had any bite to begin with. The German government, and large parts of parliament, are operating in a parallel universe, economically. Over here, mercantilism is the road to success. Monetarism works. Surplus good, deficit bad. Saving good, spending bad. Everyone should have a current account surplus.

It's horseshit by the gallons, and it's the official economic policy of the largest economy in the EU.

And we're not even getting into the political aspects of it. Throwing a member of the EU into debt bondage, suspending its democracy to please the gods of the market... that's a travesty and a half. Yet it's also inevitable if they insist on going down the road of neoliberalism.

Worst of all, Greece is just the canary in the coal mine, as Varoufakis likes to point out. Greece had plenty of issues before they joined the EZ, but when they chose to adapt the same currency as a much larger economy hell bent on competitiveness, which is the favorite euphemism for Germany's beggar-thy-neighbour policies, they were doomed to be crushed. The rest of the PIIGS are next in line, unless this whole mess explodes beforehand. Maybe Rajoy's Franco-esque repression techniques fail, maybe le Pen wins in 2017, who knows. Maybe Schäuble finds the 100k of bribes that he conveniently forgot about back in the '90s and chokes on them.

Last but not least, 208 billion Euros – that's the projected current account surplus of Germany this year. That's 208 billion Euros of debt foreign economies have to accumulate, so that the German public and private sector can run a combined surplus of €208b. That's the elephant in the room. Systematic undercutting of the inflation target through suppression of unit labour costs and a dysfunctional focus on exports.

My Google-fu was good enough to find out what I was dealing with, and from what I read, the unbearable stench is supposed to last just 24-48 hours. So for the time being, that little fucker has a sheltered place of honor next to my bike rack in the backyard. Temps are very mild these days, so it should be fine.

As soon as the smell of a thousand rotting corpses is gone, it can come back inside. But not a minute earlier. I don't want any of my neighbours to start ripping open the floor, looking for dead rats and whatnot.

Upvote for Galacduck!

My bet is that there's probably quite a lot of life out there. I'd be willing to put money on the possibility of life even within our solar system (Europa maybe?).

But equally, most of it is probably very simple. Evolution is an energy intensive process, and we are lucky that earth has an abundance of energy.

So let's say there 1,000,000 planets with life. It's quite possible that the chances of complex life arising are low, such that there might only be 10,000 planets with anything above single-celled organisms and maybe < 100 with intelligent life. So let's say that all 100 of these civilisations make it to our level of technology and a few maybe even beyond.
They would all probably be ~1000 light years from their next nearest neighbour.

Then there's the issue of timing. They might have evolved and died out a long time ago. It's possible that we will one day get a message from another civilisation that's already gone extinct and the message was sent millennia ago.

Given all that coupled with the incredibly brief period of time we've actually been listening, I'd be far more surprised if we had made contact.

Unless someone invents FTL, then everything changes.

There was a bird near my old house that copied the sound of my neighbour turning off his(?) car alarm. Perhaps not up to Lyrebird standards, but it was still pretty funny.

[author flagged as a spammer - redacted]

[author flagged as a spammer - redacted]