The Duran Podcast German economy; Spending, Debt and Deindustrialization
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Aug 11, 2025 Explore the shifting dynamics of the German economy as it transitions from a robust, export-driven model to one burdened by rising debt and increased government spending. Delve into the implications of energy sanctions and concerns over deindustrialization, highlighting potential regional economic declines within the EU. Discover how escalating welfare costs may hinder military investments, forcing a reconsideration of Germany's role as a net exporter versus a net importer while navigating complex political challenges.
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Germany's Traditional Bank-Funded Model
- Germany built an industry-led economy funded by regional and local banks under low inflation.
- That system relied on high household savings and careful fiscal discipline by the central bank.
From Fiscal Restraint To Rapid Spending
- Under Merz Germany abandoned fiscal restraint, tearing up the constitutional debt brake.
- The government is borrowing heavily and increasing deficits as spending accelerates.
Germany Shifting From Exporter To Importer
- Energy-driven deindustrialization and rising demand are set to boost imports over exports.
- Alexander Mercouris predicts a self-reinforcing cycle of spending, debt, and deindustrialization.