Germany's Economic Strategy

There was this interview given in the last week....appearing in Der Spiegel, with billionaire George Soros.  By the end of the interview....Soros had dumped on German Chancellor Angela Merkel.  In simple terms, she was bringing Germany to the edge of a Great Depression repeat.

Soros did his best to pump up the idea of taking money out of your pocket....to pump up a nation's financial woes, and if necessary....borrow excessively (kind of like the US model).....to save the German economy.

For months now, Merkel's model in the finance game....was to cut along the edges and just wait out any economic woes.  Various German programs have been put on a tight budget.  You won't find any billion dollar stimulus package ideas floating in Merkel's game.  So far, the strategy has worked.

The problem with the Soros strategy.....you end up with debts later.....owing someone (maybe even Soros himself).  So you might be in a more favorable economic period, but find this mountain of debt sitting there....and some country or banking organization expecting you to pay them back.  So the better economic times really aren't that much better, if you think about it.

Some folks in Germany will get pumped up about Soros and his interview....thinking Merkel has screwed up.  The more you think about it though.....if you can afford the cuts, why would you not accomplish them?  If Soros was such a great country-saver in terms of economic planning....he'd be sitting on various adviser positions for the US, Japan, China, England, etc......but he's not.  He's a billionaire guy, making money off currency changes.  He wants strong currencies to go weaker.....to gain on his investment strategy.

The German model might not be perfect.....but it's not a 1-star strategy.  It might be worth hanging onto.