So you and I sit down at a cafe (in Wiesbaden of course) and we energize ourselves into a legal binding agreement to be a company (at least on paper). Naturally, it'll be a Greek company (to make this work).
Then on paper, we sold something of a fake and non-existent nature from our company in Greece to another company (one single guy working for us) in Germany (Company #2).
Then we arrange for a 2nd sale (resell) from our bogus #2 company to a a bogus #3 company (in Wiesbaden). That tax (required by Germany and the EU), the VAT, is then 'forfeited'. Company #3 then resells the product (at least on paper) back to company #1 (the fake Greek company that we started).....at full price and VAT included.
The VAT 'plus-up'? 19-percent? If this were a million Euro purchase from company #1 to #2, and the sell from #3 back to #1 occurred....you and I would walk away with 1,190,000 Euro (190,000 Euro profit). Imagine turning this twelve times a year (making a cool 1.9-million Euro between the two of us.....mostly all just a paperwork drill).
This got brought up today. Both the EU and Germany have come to realize that various mafia gangs are actively engaged in this type of VAT deal, and reselling on a constant basis. How much? The news media say about 50-billion Euro a year is missing from the EU in this mafia game. Germany alone? About 14-billion Euro is figured to be moved around and lost by the German government.
Fixing this? Go ask them about the various schemes, and how nothing has been done for at least two decades that they've known the schemes existing.
Sunday, May 12, 2019
Saturday, May 11, 2019
'Soviet' Bavaria
So this is one of those short historical essays that I occasionally write on German history.
Few people ever grasp this, and it's certainly not in most German history classes in US universities. But for roughly a hundred days at the conclusion of WW I, things were in chaos.....then as bad as you might think it was going to get....around the beginning of April of 1919....the city government of Munich fell apart, and for roughly 30 days, it was 'Soviet' Bavaria and 'Soviet' Munich.
Toward the first week of November of 1918 (the war is over), the King of Bavaria has determined that a major conflict is about to break out, and he's left the region. Kurt Eisner (head of the SPD Party in Bavaria) has assumed the leadership role (for better or worse).
The region of Bavaria? It's been renamed to the People's State of Bavaria. If it sounds socialistic.....it is.
The bulk of Eisner's life? Journalist. For a brief period, he'd insulted the Kaiser and spent some time in jail.
As the war was in it's final year....Kurt had been in the middle of things.....attempting strikes, and trying sow enough negativity....that it's not only the national government falling apart....it's the Bavarian government, and that around Munich.
From the fall of 1918, to 21 Feb 1919....Kurt ran the government. Then on 21 Feb, Kurt was assassinated by a right-wing anarchist. Most historians looking over this period will say that things were pretty bad already, but this situation really split up everybody in Munich and created a chaotic mess.
So enters Erhard Auer (the Interior Minister under Eisner). I suspect that Auer was going to lay down the various reasons for his need to step up and take charge. But an odd thing happened. A rumor got out that Auer had arranged for the assassination of Kurt Eisner. This rumor (for the telling of this story) has never been proven and is unlikely. But most people on the streets of Bavaria believed that Auer had done something.
So an assassination attempt occurs on Auer (and fails). There's at least one person killed in this chaos, with a number of folks disappearing, and historians say that at least two of the city officials had some kind of nervous breakdown.
In this two week period in Munich....it's safe to say that no one is in charge, and it's a fairly big mess. Then there's this meeting, where Johannes Hoffman steps up and is appointed by the Party to lead things.
Hoffman is a fairly weird character. For a brief period, he was a school teacher. He was also a anti-war activist. Things might have been OK in this rebuilding of confidence stage, but roughly four weeks into this new leadership.....Hungary goes through an overnight revolution. The head of this Hungarian revolution then calls upon an imaginary Bavarian 'Soviet' or 'Red' Army to take charge.
Hoffman? He has no idea who this 'Red' Army is, but the fear is there, and in a matter of hours, he's packed up and run off to Bamberg (roughly a 3-hour ride by train, north of Munich).
The new boss of Munich? Well, this is the curious part of the story....a playwright by the name of Ernst Toller. Left-wing radical? Yes, to the far extreme.
Toller's description of this period? The Bavarian Revolution of Love. Yeah, it's a catchy title for a musical or opera.
Toller is selecting people who are probably borderline 'nutcases' (my term). The head of the Bavarian military? A former butler. The new head of Bavaria's police? A guy known for convictions (mostly for breaking into houses).
The length of the Toller 'regime'? Well....six days. On 19 March 1919, the Toller period comes to an end. At this point, the Communist Party in Munich has a meeting and seizes power on the 12th of April.
Eugene Levine now becomes the sixth 'boss' of Munich in six months. At this point, reforms start occuring on an hour by hour basis....like the seizing of cash from banks, and the seizure of food from any community grocery or products shop.
Oddly enough, there's an order given that all factory and industry workers in Bavaria will need to receive military training (means weapons training).
Somewhere in the mix of this short period, an order is given (handed down by Lenin) to arrest and detain anyone having status or wealth. You can imagine the effect of this order and the immediate fear that starts up in Munich.
So by the afternoon of the 13th (roughly 36 hours into this new extreme government)....some members of Munich's society, along with the police, attempt a coup. It fails (at least 20 dead and scores wounded).
There's a major battle (combined, near 38,000 men shooting) five days later at Dachau (a suburb of Munich). The counter-communists folks are out-numbered on this day. With a day or two after this battle, 20,000 Freikorps troops arrive from the federal government.
The Communists are now having issues, and the 'war' is coming to a close.
Executions on the street? Historians argue over this, but most agree that a minimum of 1,000 pro-Communists were executed.
Several months pass, and on 14 August 1919....the Bamberg Constitution is written into form, and the Weimar Republic comes to exist.
Had this counter-attempt failed? Well....Soviet Bavaria would have existed, and likely flipped the other states of Germany into a revolution. All of Germany a Soviet state? Yes.
The story worth a major epic movie? Yes, if you bring up most of this....even most Germans (unless you grew up in Munich) haven't heard much of this period, or the executions done on the streets of Munich in 1919.
Few people ever grasp this, and it's certainly not in most German history classes in US universities. But for roughly a hundred days at the conclusion of WW I, things were in chaos.....then as bad as you might think it was going to get....around the beginning of April of 1919....the city government of Munich fell apart, and for roughly 30 days, it was 'Soviet' Bavaria and 'Soviet' Munich.
Toward the first week of November of 1918 (the war is over), the King of Bavaria has determined that a major conflict is about to break out, and he's left the region. Kurt Eisner (head of the SPD Party in Bavaria) has assumed the leadership role (for better or worse).
The region of Bavaria? It's been renamed to the People's State of Bavaria. If it sounds socialistic.....it is.
The bulk of Eisner's life? Journalist. For a brief period, he'd insulted the Kaiser and spent some time in jail.
As the war was in it's final year....Kurt had been in the middle of things.....attempting strikes, and trying sow enough negativity....that it's not only the national government falling apart....it's the Bavarian government, and that around Munich.
From the fall of 1918, to 21 Feb 1919....Kurt ran the government. Then on 21 Feb, Kurt was assassinated by a right-wing anarchist. Most historians looking over this period will say that things were pretty bad already, but this situation really split up everybody in Munich and created a chaotic mess.
So enters Erhard Auer (the Interior Minister under Eisner). I suspect that Auer was going to lay down the various reasons for his need to step up and take charge. But an odd thing happened. A rumor got out that Auer had arranged for the assassination of Kurt Eisner. This rumor (for the telling of this story) has never been proven and is unlikely. But most people on the streets of Bavaria believed that Auer had done something.
So an assassination attempt occurs on Auer (and fails). There's at least one person killed in this chaos, with a number of folks disappearing, and historians say that at least two of the city officials had some kind of nervous breakdown.
In this two week period in Munich....it's safe to say that no one is in charge, and it's a fairly big mess. Then there's this meeting, where Johannes Hoffman steps up and is appointed by the Party to lead things.
Hoffman is a fairly weird character. For a brief period, he was a school teacher. He was also a anti-war activist. Things might have been OK in this rebuilding of confidence stage, but roughly four weeks into this new leadership.....Hungary goes through an overnight revolution. The head of this Hungarian revolution then calls upon an imaginary Bavarian 'Soviet' or 'Red' Army to take charge.
Hoffman? He has no idea who this 'Red' Army is, but the fear is there, and in a matter of hours, he's packed up and run off to Bamberg (roughly a 3-hour ride by train, north of Munich).
The new boss of Munich? Well, this is the curious part of the story....a playwright by the name of Ernst Toller. Left-wing radical? Yes, to the far extreme.
Toller's description of this period? The Bavarian Revolution of Love. Yeah, it's a catchy title for a musical or opera.
Toller is selecting people who are probably borderline 'nutcases' (my term). The head of the Bavarian military? A former butler. The new head of Bavaria's police? A guy known for convictions (mostly for breaking into houses).
The length of the Toller 'regime'? Well....six days. On 19 March 1919, the Toller period comes to an end. At this point, the Communist Party in Munich has a meeting and seizes power on the 12th of April.
Eugene Levine now becomes the sixth 'boss' of Munich in six months. At this point, reforms start occuring on an hour by hour basis....like the seizing of cash from banks, and the seizure of food from any community grocery or products shop.
Oddly enough, there's an order given that all factory and industry workers in Bavaria will need to receive military training (means weapons training).
Somewhere in the mix of this short period, an order is given (handed down by Lenin) to arrest and detain anyone having status or wealth. You can imagine the effect of this order and the immediate fear that starts up in Munich.
So by the afternoon of the 13th (roughly 36 hours into this new extreme government)....some members of Munich's society, along with the police, attempt a coup. It fails (at least 20 dead and scores wounded).
There's a major battle (combined, near 38,000 men shooting) five days later at Dachau (a suburb of Munich). The counter-communists folks are out-numbered on this day. With a day or two after this battle, 20,000 Freikorps troops arrive from the federal government.
The Communists are now having issues, and the 'war' is coming to a close.
Executions on the street? Historians argue over this, but most agree that a minimum of 1,000 pro-Communists were executed.
Several months pass, and on 14 August 1919....the Bamberg Constitution is written into form, and the Weimar Republic comes to exist.
Had this counter-attempt failed? Well....Soviet Bavaria would have existed, and likely flipped the other states of Germany into a revolution. All of Germany a Soviet state? Yes.
The story worth a major epic movie? Yes, if you bring up most of this....even most Germans (unless you grew up in Munich) haven't heard much of this period, or the executions done on the streets of Munich in 1919.
'Welcome' Blocks
My village (4,000 residents) has a little fest once a year....stretching from Friday night to Monday night. On a typical Friday and Saturday night, with decent weather....there might be well over 10,000 (a fair number from Wiesbaden come over) who hang out and attend. Food and drink are abundant, with two different venues offering musical entertainment, and a dozen 'rides' at one end for kids.
This year has one different setting. They brought in around a dozen one-meter by one-meter blocks to ensure terror car-attacks don't occur. You can go to the ends of this street fest, and one or two side streets being blocked with the 'welcome' blocks.
The thought of terror? Over the past five years, this little fear has crept into virtually every German's world. If you go into Wiesbaden for any significant fest.....streets are blocked with the heavy blocks or with garbage trucks. It's part of life now, you have to accept it.
Cops? Toward 9 PM, I noticed around six cops walking the beat on the fest. It used to be primarily to handle drunk juveniles. Now, it's mostly to reassure the public that they are armed, ready for action, and will put down terrorists if required.
The 'welcome' blocks? Same way. Simply to reassure the public that measures have been taken.
This year has one different setting. They brought in around a dozen one-meter by one-meter blocks to ensure terror car-attacks don't occur. You can go to the ends of this street fest, and one or two side streets being blocked with the 'welcome' blocks.
The thought of terror? Over the past five years, this little fear has crept into virtually every German's world. If you go into Wiesbaden for any significant fest.....streets are blocked with the heavy blocks or with garbage trucks. It's part of life now, you have to accept it.
Cops? Toward 9 PM, I noticed around six cops walking the beat on the fest. It used to be primarily to handle drunk juveniles. Now, it's mostly to reassure the public that they are armed, ready for action, and will put down terrorists if required.
The 'welcome' blocks? Same way. Simply to reassure the public that measures have been taken.
Taser Story
There's a police investigation going on here in Hessen....against two cops. They had a situation develop with a guy who refused to cooperate. These cops were ones armed with the 'authorized' taser weapons. They used it on the guy, who happened to be a diabetic. He went into a serious health condition, and died a couple of days later. So the authorities are worried now over the consequences.
So lets get to the real discussion here and what happened.
This dead guy was severely overweight. Some situation had occurred in the home where the wife felt that he was very close to having serious issues. No one says heart attack, but the wife felt it was an emergency. So she called the ambulance.
The crew arrives, and tries to attend to the guy. Basically....he doesn't want to be picked up or carried to the hospital. He doesn't want their help. He is actively denying the ambulance crew.
With the ambulance crew, was a doctor (it's standard German policy that a doctor respond). The doctor viewed everything and said 'yes', this is an emergency and you need to go. The diabetic guy said 'no'.
The doctor turns to the cops, and asks them to enforce the procedure. Whether this is standard or within the law.....I might question. Their response was....to use the taser.
Cause of death? Blood poisoning and pneumonia. Triggered by the taser? Well....you can't say a 100-percent. It's possible that the blood poisoning was already going on.
A stupid call by the German cops? I hate to suggest this, and no one says much over the age of the two cops who responded. Generally, if a German cop asks you to cooperate....it is extremely wise to cooperate. My guess is that some rule will be developed that if the person in question is sitting or laying down.....there's to be a rule that you can't taser the guy.
So lets get to the real discussion here and what happened.
This dead guy was severely overweight. Some situation had occurred in the home where the wife felt that he was very close to having serious issues. No one says heart attack, but the wife felt it was an emergency. So she called the ambulance.
The crew arrives, and tries to attend to the guy. Basically....he doesn't want to be picked up or carried to the hospital. He doesn't want their help. He is actively denying the ambulance crew.
With the ambulance crew, was a doctor (it's standard German policy that a doctor respond). The doctor viewed everything and said 'yes', this is an emergency and you need to go. The diabetic guy said 'no'.
The doctor turns to the cops, and asks them to enforce the procedure. Whether this is standard or within the law.....I might question. Their response was....to use the taser.
Cause of death? Blood poisoning and pneumonia. Triggered by the taser? Well....you can't say a 100-percent. It's possible that the blood poisoning was already going on.
A stupid call by the German cops? I hate to suggest this, and no one says much over the age of the two cops who responded. Generally, if a German cop asks you to cooperate....it is extremely wise to cooperate. My guess is that some rule will be developed that if the person in question is sitting or laying down.....there's to be a rule that you can't taser the guy.
Thursday, May 9, 2019
Missing Commerce Profits
It came out today via the German Finance Ministry....that between now and 2023 (five years of commerce)....they expect 124-billion less Euro to be generated for state and federal government taxes.
It's a fair sum of money (figure 25-billion less a year) and it will cause a ripple affect for various programs and 'gifts'.
A German recession? Around six to nine months ago.....the warning went out that a recession would start in 2019. Screwing up the various social programs? Yes, and that will translate into various issues for the 2021 election (where Merkel is finally gone).
It's a fair sum of money (figure 25-billion less a year) and it will cause a ripple affect for various programs and 'gifts'.
A German recession? Around six to nine months ago.....the warning went out that a recession would start in 2019. Screwing up the various social programs? Yes, and that will translate into various issues for the 2021 election (where Merkel is finally gone).
Fachkräfteeinwanderungsgesetz?
It's a fairly long German word which came up in the news today. The meaning? Basically 'experts immigration law'.
So, if you didn't know already....the population of Germany (for well over fifty years) has been on a decline. The million-plus migrants who came into Germany since 2013? That marginally kept the slide at a minimum....but it continues on.
This translates over to a harsh reality.....German industry has a aging population, and tens of thousands of positions are sitting there with people about to retire, and simply not enough Germans (skilled and certified) to fill those positions. Even from the EU countries, which could easily shift people over to Germany....the interest in moving and accumulating into German society isn't that great.
So the coalition government (CDU-CSU-SPD) has been in this talk situation. To be honest, they've been talking about a immigration law for almost twenty years now.
In the last week or two, they've reached an agreement and a law has been crafted.
The basic structure? These 'occupations' that have serious shortages will be identified. Companies will be able to 'invite' an individual to enter Germany on some type of work-visa, and there has to be a contract extended to the individual. People are allowed to 'look for a job' in Germany as well....up to six months. Benefits? No social benefits during this six month period....meaning if you get let go or think you need welfare in that period....it won't exist.
Fixing the issue? I would suggest that this might be more of a pain, and only limited numbers of people will take up this job-immigration deal.
Apparently the language business was left out of the structure, and I would imagine the intensive language classes will be a barrier for most folks. The salary structure? For some folks in 3rd-world countries, Germany might be a major bump-up. For most comparable countries.....if you walked in and looked at costs....you'd shake your head over taxation and monthly costs for rent, heat, and utilities.
I hate to suggest all this talk and negotiation work giving you no real plus-up, but I suspect that will be the end-result. But if they got just a couple of thousand entries....they'd pat themselves on the back and call it a major success.
So, if you didn't know already....the population of Germany (for well over fifty years) has been on a decline. The million-plus migrants who came into Germany since 2013? That marginally kept the slide at a minimum....but it continues on.
This translates over to a harsh reality.....German industry has a aging population, and tens of thousands of positions are sitting there with people about to retire, and simply not enough Germans (skilled and certified) to fill those positions. Even from the EU countries, which could easily shift people over to Germany....the interest in moving and accumulating into German society isn't that great.
So the coalition government (CDU-CSU-SPD) has been in this talk situation. To be honest, they've been talking about a immigration law for almost twenty years now.
In the last week or two, they've reached an agreement and a law has been crafted.
The basic structure? These 'occupations' that have serious shortages will be identified. Companies will be able to 'invite' an individual to enter Germany on some type of work-visa, and there has to be a contract extended to the individual. People are allowed to 'look for a job' in Germany as well....up to six months. Benefits? No social benefits during this six month period....meaning if you get let go or think you need welfare in that period....it won't exist.
Fixing the issue? I would suggest that this might be more of a pain, and only limited numbers of people will take up this job-immigration deal.
Apparently the language business was left out of the structure, and I would imagine the intensive language classes will be a barrier for most folks. The salary structure? For some folks in 3rd-world countries, Germany might be a major bump-up. For most comparable countries.....if you walked in and looked at costs....you'd shake your head over taxation and monthly costs for rent, heat, and utilities.
I hate to suggest all this talk and negotiation work giving you no real plus-up, but I suspect that will be the end-result. But if they got just a couple of thousand entries....they'd pat themselves on the back and call it a major success.
Wednesday, May 8, 2019
News Media Spinning
I often read various news sites from around Germany, and one of the 'charms' of this is the comments area where readers offer either criticism or additional info....that the German journalist may have missed or intentionally left out.
So there was this big hyped-up story via a public TV site (Tagesschau, from ARD).....and in the midst of the comments, one German offered a fairly sharp critical piece (Sabine E.): "here on Tagesschau.de with those on Breitbart. Hundreds, often thousands, comment there, and apparently everyone has their say. Here on Tagesschau.de there are maybe 20 comments, all selected. A critical word about Merkel, and you're out there. Which journalists do you trust more?"
That is the curious method public TV site comments....they have to be reviewed, moderated, and a fair sized number of Germans have become skeptical.
If you went back to around 2005, commentary wasn't a part of the game, and around five years prior to that....none of the German public news people offered the news via the web.
Yes, there was a period where no one could say anything or voice criticism of the journalists. You just accepted the facts as they were laid out, or quit watching nightly news.
This comment by Sabine E? She's obviously skeptical of the moderation and the need for the journalists to delete comments that they don't want to appear in public.
It's possible now to walk into a pub of a dozen Germans, and at least a quarter of them will openly suggest some former East German (DDR) propaganda expert working for public TV, and actively/aggressively working on the next propaganda campaign. It's a comical suggestion and probably loaded with limited facts....but people are focused on this and seem to believe it.
So there was this big hyped-up story via a public TV site (Tagesschau, from ARD).....and in the midst of the comments, one German offered a fairly sharp critical piece (Sabine E.): "here on Tagesschau.de with those on Breitbart. Hundreds, often thousands, comment there, and apparently everyone has their say. Here on Tagesschau.de there are maybe 20 comments, all selected. A critical word about Merkel, and you're out there. Which journalists do you trust more?"
That is the curious method public TV site comments....they have to be reviewed, moderated, and a fair sized number of Germans have become skeptical.
If you went back to around 2005, commentary wasn't a part of the game, and around five years prior to that....none of the German public news people offered the news via the web.
Yes, there was a period where no one could say anything or voice criticism of the journalists. You just accepted the facts as they were laid out, or quit watching nightly news.
This comment by Sabine E? She's obviously skeptical of the moderation and the need for the journalists to delete comments that they don't want to appear in public.
It's possible now to walk into a pub of a dozen Germans, and at least a quarter of them will openly suggest some former East German (DDR) propaganda expert working for public TV, and actively/aggressively working on the next propaganda campaign. It's a comical suggestion and probably loaded with limited facts....but people are focused on this and seem to believe it.
Cable-Car Chatter?
In this Rhine Valley region (Darmstadt, Wiesbaden, Frankfurt, Offenbach, Mainz, etc), there's been this topic of discussion going on for about a year over the idea of introducing cable-cars.
Yes, the type you'd see in various European cities to transport people from one mountainside to another, or from one side of a river to another.
Part of this discussion centers on the fact that getting new railway tunnels or trolly/tram lines built is next to impossible because of community involvement, political interest, and planning sequences. So the suggestion got put out there....like for example....why couldn't you run a cable car situation from downtown Frankfurt to some far end, where you'd get people out of their cars or lessen car traffic in the city itself?
Today, there's supposed to be a group-think and public talk in Darmstadt....with the students in the mass transit program there. Some of the current thinking suggests this would work in Neu-Isenburg, or the Walkstation area of south-Frankfurt.
Cost factor? No one discusses that part of the story.
Locally, I think it might be supported by the public if it ran from mid-town Mainz to mid-town Wiesbaden. But because of distance involved, it'd have to be at least three of these sequences as part of the cable-car route. Even if you placed them there....could you draw enough people to make it profitable? I have my doubts.
Yes, the type you'd see in various European cities to transport people from one mountainside to another, or from one side of a river to another.
Part of this discussion centers on the fact that getting new railway tunnels or trolly/tram lines built is next to impossible because of community involvement, political interest, and planning sequences. So the suggestion got put out there....like for example....why couldn't you run a cable car situation from downtown Frankfurt to some far end, where you'd get people out of their cars or lessen car traffic in the city itself?
Today, there's supposed to be a group-think and public talk in Darmstadt....with the students in the mass transit program there. Some of the current thinking suggests this would work in Neu-Isenburg, or the Walkstation area of south-Frankfurt.
Cost factor? No one discusses that part of the story.
Locally, I think it might be supported by the public if it ran from mid-town Mainz to mid-town Wiesbaden. But because of distance involved, it'd have to be at least three of these sequences as part of the cable-car route. Even if you placed them there....could you draw enough people to make it profitable? I have my doubts.
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