fear of inflation
prosperity for all? The fine old economic model introduced by Ludwig Erhardt (the one with the cigar) is in danger.
Inflation is at record highs and a recession is looming.
At 7.6 percent, inflation is now higher than ever before in reunified Germany.
There is some evidence that the crisis could also erode the German middle class.
It is true that prices rose somewhat less sharply in June than in May.
But that should be due to the tank discount and 9-euro ticket.
Experts fear that when these temporary discount campaigns expire, there could be another big jump in inflation.
What is politics doing?
The federal government has approved the budget draft by Finance Minister Christian Lindern (FDP) for 2023.
He clearly bears the handwriting of the liberal.
The goal is to invest in future areas such as education and digitization.
Government spending and subsidies for citizens' wallets, on the other hand, should no longer increase exorbitantly.
The budget plan envisages a drastic reduction in net credits in order to be able to comply with the debt brake enshrined in the constitution.
The question, however, is whether the government can stick to this plan. There is still a good deal of optimism built into this budget at the moment.
If the economic situation continues to deteriorate, and gas and petrol prices rise even more, the traffic light coalition's debate on new relief for citizens will pick up speed again - and as is well known, that costs money.
First inflation, then recession: What happens in Germany when prosperity dwindles drastically?
You can find more news and background information on the war in Ukraine here:
Poland's reaction to the Melnyk scandal – it's better to ignore it:
The Ukrainian ambassador Andrej Melnyk played down the war crimes of a nationalist leader in Poland.
Despite this, the government in Warsaw is holding back criticism – the alliance with Kyiv is too important.
Conflict over Kaliningrad - »As if the Iron Curtain is lowering again«:
The Russian Baltic Sea exclave of Kaliningrad is surrounded by NATO states.
In the middle of the Ukraine war, Kremlin chief Vladimir Putin is now deliberately stirring up fears of a conflict on a new front - to the horror of local people.
Boxer Usyk in action in the Ukraine war - "Please don't let me shoot anyone else":
In September he became heavyweight world champion in London, and a little later he fought in Ukraine against Putin's troops.
Oleksandr Usyk wants to dedicate the rematch against Anthony Joshua to his friends at the front.
news blog
New dispute over old corona measures
Now it's here, the eagerly awaited expert report for the federal and state governments on the corona restrictions in recent years.
The result: Some measures made sense, while the effect of others is unclear.
There is often insufficient data.
According to the official panel of experts, protective measures such as wearing a mask can continue to be helpful against the corona virus.
Since the virus is more likely to be transmitted indoors than outdoors, “in future, the obligation to wear a mask should be restricted to indoor areas and places with a higher risk of infection,” according to the committee.
The experts also see access restrictions only for those who have been tested as a possible sensible condition under certain circumstances.
This also applies to lockdowns.
According to the experts, however, they are only effective at the beginning of a virus spread; the longer they last, the more pointless they become because fewer and fewer people are following the rules.
The exact effectiveness of school closures in curbing the spread of the virus is therefore still open.
Because several measures were introduced at the same time, their effect alone cannot be measured.
Aha.
Of course, the report promptly caused political controversy. The FDP sees its view confirmed that many restrictions during the pandemic were exaggerated.
The Greens, on the other hand, stated that the evaluation report was only of limited significance due to the lack of data.
Health Minister Karl Lauterbach (SPD) announced that the coalition would already – confidentially – negotiate the corona measures for the fall.
His warning: "I'm expecting a heavy autumn wave." So please don't throw away the mask supplies.
Evaluation of the corona measures: No rush, after two and a half years
A difficult prisoner exchange
If there were still any doubts that Vladimir Putin's government is organized and acts like a mafia, then this should now be finally dispelled.
As the New York Times reports, Moscow apparently wants to force a bizarre prisoner swap on the Americans.
The US basketball player Brittney Griner, who is in prison in Russia for drug possession, is to be exchanged for the notorious arms dealer Viktor Bout.
The Russian known as the "Dealer of Death" is imprisoned in the United States.
The difference between the two cases could not be greater: Griner was arrested at Moscow airport for allegedly carrying a bottle of hash oil, a drug that can be bought legally in many western countries.
Bout, on the other hand, is an internationally banned arms dealer who is said to have made a fortune selling guns to the baddest guys on the planet, including terrorist groups.
US President Joe Biden, who has to decide on the possible exchange, poses a dilemma for the Russians' request.
In the US there is massive pressure from Griner friends and the LGBTQ community to get the lesbian basketball player released.
On the other hand, Biden can hardly just let a rogue like Bout go.
How will Biden decide?
The US government has not yet commented on the matter.
Here is the current quiz of the day
The starting question today: The USA and Russia have the most nuclear explosive devices in the world.
Which country follows in third place?
Loser of the day...
...are the so-called »markets«.
The stock exchanges and stock gamblers have had their worst half-year in decades.
In New York, the S&P 500, the stock index of the 500 strongest US companies, has fallen by 20 percent in the past six months.
The stock market quake also hit owners of crypto currencies like Bitcoin hard, with the pseudo currency plummeting 60 percent.
The Nasdaq, in which the tech stocks are gathered, lost 30 percent of its value.
There is no improvement in sight
.
The fear of inflation and rising interest rates spoil the mood of the stock market professionals.
Of course that's not nice.
On the other hand, the purpose of the stock market is to make money from it.
When the S&P fell more than 20 percent in the first half of the 1970s, it rose 26 percent in the second half.
So there is still hope for the gamblers.
The latest news from the night
Federal Network Agency fears total failure of Russian gas supplies:
The President of the Network Agency makes a dramatic appeal to the Germans.
A state secretary is asking companies to buy emergency power generators.
And Hamburg is considering rationing hot water for private households.
The Israeli embassy accuses Melnyk of "playing down the Holocaust":
criticism of the Ukrainian ambassador in Germany continues.
Israel's diplomatic mission has described Andriy Melnyk's statements as a "distortion of historical facts."
Lauterbach warns of a "difficult" autumn:
"We have to be prepared," says the Federal Minister of Health, he expects the corona situation to worsen in autumn.
The critical infrastructure is also threatened – but Lauterbach rules out a lockdown.
The SPIEGEL + recommendations for today
"My father cried for his life":
Even a year after the flood of the century in NRW with 184 dead, survivors are struggling with their memories.
Houses are uninhabitable, lawsuits are ongoing and there is no answer to the question: Why didn't anyone warn in time?
Finally back on the plane – not a good idea:
Switch off, fly on vacation, suppress the suffering of the world.
The longing for normality is great right now.
But: It doesn't fit into this time.
"The Russian government hasn't pulled the plug on the space station":
confrontation on earth, cooperation in space - is that justifiable after the Russian attack on Ukraine?
Nasa boss Bill Nelson is promoting cooperation and also has a proposal for China.
Franco A., the enemy in uniform:
In court, Franco A. reveals himself to be a right-wing extremist.
But can it be proven that the Bundeswehr soldier, who posed as a Syrian refugee, was planning a terrorist attack?
I wish you a nice weekend.
Yours, Roland Nelles
