The interest rate for Greek 1-year paper is 70%. 2-year paper is 50%. Talks between the Greek government and the Troika, the IMF, the ECB, and the EC, European Commission, have been called off. The Greek government says it’s numbers are getting worse because of the recession. The Troika says it’s only partly because of the recession. The Greeks are not carrying out the austerity program. They are not selling government assets.

As a result 8 billion euros needed to continue the first Greek bailout in September are not being handed out. The Greek government can’t pay it’s debts without the loan, and it needs it before September 30.

A senior IMF economist says there could be a default this month. I’m inclined to agree, especially if the German Constitutional Court rules on Wednesday that Merkel’s July agreement about the second Greek bailout is unconstitutional.

Greece could default not only this month but this week.

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The Greeks are likely to miss their budget deficit goals in 2011. Their deficit could exceed 8% of GDP. Tax collection is the biggest problem. People don’t have enough money to pay taxes.

The reason? In more western countries, particularly Germany, cutting the budget stimulates the economy and creates jobs. This is because there is a larger private sector to begin with. In Greece most jobs are public sector jobs. Therefore cutting them and cutting back on pay only harms the economy.

The German austerity system doesn’t work here and will derail future prospects for the EU.

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Wirtschaftswunder! That’s the German word for the new economic miracle echoing the postwar boom. What is the secret? It’s mid-size companies, or “mittelstand”, exploiting niches in the economy.

A good example is Diens Group in Cologne, founded in 2013. It survived two world wars and the depression making precision machines for export. In 2009 they had to shorten the work week. Then they laid off workers and had their pay supplemented by the German government. By 2010 they were hiring back all the workers. Now the workers are working overtime in 2011.

This is important because Germany represents one-third of Europe’s economy. If the Greek bailout goes through, it will be funded by taxes paid by companies such as Diens.

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Germany’s government is being tested by the Greek debt crisis. The question is how much power Angela Merkel should have as Chancellor. She brokered a deal with Sarkozy and the EU in July about the second Greek bailout. But has she exceeded her powers in agreeing to increase the powers of the EU bailout fund? Does it impinge on Germany’s sovereignty and Germany’s constitution?

Some members of her own party, the CDU, say yes. They want more influence over future deals like this one. They’re withholding their vote on the bailout until she gives it to them.

The vote is now postponed until September 29 almost one month from now. The eyes of Europe are turned to Germany to watch the outcome of the vote.

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Adolf Hitler failed in his attempt to make Europe an empire ruled by Germany at the end of World War II in 1945. The EU as a loose confederation of the “United States of Europe” is in danger of breaking up in 2011 with an end to the common currency, the euro.

Right now the German Constitutional Court will rule on September 7 on whether the original Greek bailout and the Portuguese and Irish bailouts were unconstitutional. Merkel’s own party, the CDU, is also not behind her in the deal that was brokered in July about the second Greek bailout. If that wasn’t enough trouble, Slovakia, Austria, the Netherlands, and Finland all want collateral for their loans to Greece, giving certain creditors preference over othes.

This is no way for the European Union to survive.

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If you look for articles, you can find them almost every week. The Germans are knocking down another monument, digging up another grave, demolishing an hotel, doing everything except expunging the historical record itself. And who knows, they may do that next.

What is all this negative activity about? Germans are divesting themselves of every last remnant of the Third Reich and Hitler. They want to pretend he never happened and he wasn’t part of it.

It’s understandably human, considering how much grief the Third Reich cost the Germans, now only one generation removed from the Second World War that shaped the world in which we now live. They were invaded by foreign powers. The Russians claimed half of their capital in East Berlin and what became known as East Germany. In addition all sorts of Anglo-American news media, politicians, Hollywood movies, TV, and people in the street call them all sorts of horrible names all the time. Anyone who speaks German has been a stock villain for decades. I am just a German American, and I was asked in college if I felt guilty because I was German.

But Germans have to draw a line somewhere. And I think the line’s been reached. I read in an article in Spiegel Online that the grave of Rudolph Hess was being exhumed and Hess’s remains being cremated and sent to sea. Hess was part of history. Whether you like it or not, you can’t erase the past. And by trying to destroy monuments, you make sure that future generations will not have all the information they need to figure out what helped to create the present.

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Apparently the Bavarian town of Wunsiedel exhumed the body of Rudolph Hess last Wednesday. They even took down his tombstone with the words, “I have dared!” His family is supposed to have his remains cremated and buried at sea.

The reason? Neo-Nazis visited the grave site in 2008 carrying flags and wearing jackets indicating that they were members of the National Socialist Party. Even though Wunsiedel was the town where Hess used to vacation as a boy and is the town where his parents are buried and even though Hess himself in his will specified that he should be buried there, the town doesn’t like attracting notoreity.

Hess was the deputy that Hitler sent to Britain to try to make peace with the British in secret. He supposedly parachuted in. To this day his visit is shrouded in mystery. No one knows for sure what his message to the British was.

But it shows a terrible ambivalence toward Britain. The Nazis never could make up their minds about it. It shows in the almost fifty years Hess was imprisoned first in Britain and then in the Spandau prison in Berlin where he committed suicide on August 17, 1987.

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Anyone who goes online to German websites must notice how commonplace English translations are. Germans have been learning English in school since the nineteenth century. So it should be no surprise that today the country saw its first royal wedding in decades. Everyone was supposed to be watching the union of the great-great-grandson of Kaiser Wilhelm II to Sophie Johanna Maria Princess of Isenburg. Kate and Prince William rode in a carriage. These royals are to do the same at their family estate outside Berlin.

This admiration for Britain goes so deep in Germany that even Hitler wanted them to be on his side. He liked to deal with Neville Chamberlain as Prime Minister simply because he knew there would be peace and he needed the cooperation of the British Empire to carry out his plans. It was also why Rudolph Hess went on a mysterious mission to Great Britain to see if he could work out peace terms and was parachuted in.

The admiration continues to the present day despite all the protests by left-wing demonstrators.

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The Great-great grandson of Kaiser Wilhelm II, the last ruler of Germany who was forced off the throne in 1918, is to marry on Saturday. Georg Friedrich Ferdinand Prince of Prussia is to wed Sophie Johanna Maria Princess of Isenburg and step out of a church on the grounds of the former royal palace in Potsdam. They are to ride in a carriage drawn by six horses through the city streets as did many of their ancestors for the past one thousand years of Hohenzollern history.

One hundred years ago right now in 1911 no one would have thought anything of it. It would have been business as usual — for three more years. Everything was about to change radically, and no one guessed. Wilhelm was the German ruler who directed Germany’s part in World War I and was forced to surrender, thereby losing his dynasty’s hold on power.

Germany never forgave him. The Treaty of Paris was a disaster as were the reparations that followed. That all led to the rise of Hitler, which is one of the reasons so many Germans resent the monarchy to this day — that and the Prussian military tradition that led to the Wehrmacht in the Second World War. And of course all that led to Potsdam becoming part of East Germany under Communist Russian rule for nearly half a century.

That is one reason why many leftist groups are planning satiric protests about the royal wedding. Germany can’t make peace with Wilhelm II, Hitler, or its twentieth century past.

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The German economy is teetering on the brink of recession. Business confidence has gone down. There’s been an unexpected fall in EU factory orders as the economy loses momentum. There was a slowdown in new orders. Exports have slowed in response to a global slowdown.

The decline is the biggest since just after the collapse of Lehmann Brothes in September of 2008. The economy in Germany is not moving at all. Second quarter growth was only .1% whereas the first quarter growth was 1.3%.

This is why there can be no resolution to the Greek debt crisis right now, nor a resolution to the Spanish, Portuguese, or Italian bond crises either. If Germany’s going to have a crisis all the member countries of the Euro Zone will have to weather it with her. It’s a big enough economy to pull everything else down with it.

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