Germany crisis WARNING: Taxpayers’ cash AT RISK - ‘State won’t go bankrupt, CITIZENS WILL'
TAXPAYERS in Germany will be the ones to pay for any looming economic crisis, economists have warned.
Economists, Marc Friedrich and Matthias Weik made the startling claim about Europe’s largest economy in a report for the German media publication, Focus Online. They warned any future recession would cost Germany even more than the last collapse, adding, “nothing is without alternative and someone will have to pay for the crisis and that is us, because it is not the state that goes bankrupt, but its citizens.” Germany’s economy narrowly avoided falling into recession during the final months of last year as the economy registered zero growth during the fourth quarter of 2018.
The economists wrote: “There is a storm brewing and people are bracing themselves.
“It doesn’t just look bleak for the car manufacturers in Germany.
“Incoming orders in the manufacturing sector have been falling almost exponentially since June 2018.
“There is no doubt that a recession is upon us.
“The only question is how bad it will be this time after the central banks only artificially created the boom.”
The economists warned that a recession would be the “worst case scenario of the central banks”.
However, they warned the European Central Bank’s policy to combat any recession has led to steep prices on the stock markets and has meant that a normal earner may find it difficult to afford a house in cities.
They said: “Living is now a luxury. In short, the rich get richer and the hard-working get poorer. In the long run, no society can do this.”
Central bank policy of the European Central Bank has already cost Germany 700 billion euros, but this is likely to increase in the future, say the experts.
The esteemed authors wrote: “However, anyone who thinks that the European Central Bank has already fired their guns since the last crisis, is wrong - and indeed enormously so.
“The central bank policy of ECB boss Mario Draghi has already cost Germany 700 billion euros, according to the former Ifo boss Hans-Werner Sinn.
“We absolutely cannot understand the fact that the citizens have tacitly accepted this.”
They warned people who decide against saving and just use cash for interest-free purposes could lose thousands of euros.
Last year’s slow down in the economy in Germany has been blamed on a slowdown in the global economy and a weaker car sector.
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