The Contrarian

“In the investment markets, what everyone knows is usually not worth knowing.”
Is Germany’s Merkel Up For Involuntary Retirement?

Is Germany’s Merkel Up For Involuntary Retirement?

Germany’s second biggest political party, the SPD, which is like a labor party, has suddenly soared in popularity. The SPD (Sozialdemokratische Partei Deutschlands) was established in 1863. It was one of the first Marxist-influenced parties in the world.

The polls had the SPD soaring in popularity by 10 percentage points in two weeks. That’s considered highly unusual.

It happened after the party picked a new leader who may beat Chancellor Merkel in the September election, Mr. Martin Schulz. Could it be that an increasing number of German’s are protesting Merkel’s policy of admitting potential terrorists without proper vetting and making Germany, once one of the safest countries in the world, unsafe?

Support for the SPD party has risen from 21% two weeks ago to 31%, while the support for Merkel’s party has dropped. German’s don’t like to make change. But this has been coming for two years. When Germans finally decide that the country is on the wrong course, they act.

It was the same under Hitler. The country gave him 10 years during the 1930’s when he instituted paid vacations, Social Security, reduced the unemployment rate from the high 50%’s to low single-digits, etc. But then, after he started the wars, they had enough. During just a few years there were three attempts to assassinate Hitler.

Of course, often one party does not get a majority in Germany and other countries with multi-party systems. Thus they have to form a coalition. That’s good because the coalition party is like a watchdog that doesn’t let the majority party do whatever it wants. We should have that in the US.

Yet, the media still talks about the “near certainty” that Merkel will again govern….her fourth term. Our view has always been that a politician should be restricted to two political terms in their lifetime.  It is similar to the “near certainty” prediction that Brexit would lose the vote. Brexit won!

However, Martin Schulz is not the answer for many Germans because he advocates many of the same policies as Merkel. Perhaps Germans have just become tired of seeing their current Chancellor visiting foreign dignitaries dressed like the maid.

Schulz apparently supports the “open border” policy, making the EU bureaucracy even larger, increasing taxes, etc. It’s the typical agenda of the Left we see everywhere.

Apparently, Germany lacks someone like France’s Marie Le Pen, Netherland’s Geert Wilders, or the US’s Donald Trump, who believe that taxpayers in their countries deserve to be heard and served. Too bad! Perhaps such a leader will still emerge.

But the problem of the EU is so much greater than that of Germany. The EU will crumble unless a strong leader emerges who will “persuade” the Brussels leadership to organize significant reform. The EU bureaucracy has grown without limits. It has taken on powers never given to it. It micro-manages the member nations to the point that they want to escape this dictatorship by foreigners.

The EU should go back to the original intent: free flow of goods and travel across EU borders and voluntary adoption of one currency. The chance of that happening is like a snowball in hell not melting.