Story here, from the always-on-target Investors Business Daily. If you prefer a podcast, then here is your podcast.
Angela Merkel is the Chancellor of Germany. She also has a Ph.D in Physics.
First a little background:
British Prime Minister Gordon Brown’s idea for a “global stimulus plan” has met with resolute opposition from Germany’s leader, Angela Merkel. Good to see that common sense isn’t dead, at least in Europe.
Brown, who’ll be hosting the leaders of the G-20 nations later this week as they seek a way out of the global financial crisis, has pushed what he calls a “global New Deal” of up to $2 trillion in added spending.
But he’s had trouble selling his idea to others — to put it mildly. Czech Prime Minister and EU President Mirek Topolanek called it “a way to hell.” Even Bank of England Governor Mervyn King trashed the idea.
And then Merkel jumps on the pile:
Now comes Merkel, who, as head of the world’s third-largest economy, has probably killed Brown’s big idea.
“I will not let anyone tell me that we must spend more money,” she said over the weekend. “We must look at the causes of this crisis. It happened because we were living beyond our means. . . . We cannot repeat this mistake.”
We need to listen to Merkel, because she knows what she is talking about. She has a perspective we don’t because of Germany’s tragic history in the 20th century.
After World War I, Germany tried to spend its way out of a recession brought on in large part by the onerous war reparations.
As Weimar Germany printed money, inflation soared (in 1918, $1 bought 4.2 German marks but by 1923, $1 fetched 4.2 trillion marks) and unemployment surged.
If you want a real stimulus, try being like the communist Chinese. I blogged about their sales tax cuts on automobiles before, and about how worried they are about our deficit spending, (along with everyone else in the G20). But look what I found over on Ace of Spades HQ.
They cite an article from semiconductor.net, and here is an excerpt:
…The Chinese government alerted all silicon, ingot, wafer, cell, and panel manufactures that it intends to announced a very aggressive Solar subsidy that is equivalent to $3 USD per installed watt, in cash, as an incentive to aid the Chinese population to install solar. Currently in China non UL, non CE, and non TUV panels can be purchased for under $2 per watt…
…With the combination of lower panel prices, renewed Federal and State incentives, utility rebates, the finance freeze thawing out, and oil prices moving up, Solar is once again looking awfully attractive. When you take into consideration the increased value of your home upon a solar installation and the tremendous credits and rebates available, you can literally install solar for 20 cents on the dollar….
Why did we elect a socialist ACORN lawyer from the party that got us into to this mess in the first place?