Tag Archives: austerity measures

As The German Economy Caves, Eurozone Bailouts Take On New Dimensions

Last year, German exports rode to a new record, jobs were being created in massive numbers, real wages rose, housing and real estate boomed, the federal budget was nearly balanced, and consumers felt good and spent money—despite the havoc that the Eurozone debt crisis has been wreaking.

Whatever was happening, Germany would be able to make up for declining exports to the Eurozone with strong exports to Asia and the US. Internal demand would remain solid.

And this illusion of durable economic strength and fiscal virtue has tainted the discussion about saving the euro, bailing out debt-sinner countries in return for austerity measures, and keeping the European Central Bank in check.

But now the crisis has moved from Germany’s front yard to its doorstep and is about to enter its living room.

Beer sales, for example. that the German Federal Statistical Office tracks them shows just how crucial a staple beer is. Alas, beer sales to customers in Germany dropped 2.3% in the first half over the same period last year, and ominously, exports dropped 2.9% [for the worldwide beer phenomenon, beer consumption per capita, and where the growth really is, read.... Beer, A Reflection of the World Economy?]

Auto sales got clobbered in July, dropping by 5% from July last year, and by 16.5% from June, knocking year-to-date sales, which had been holding up well, into the red (-0.1%). Auto sales have been a fiasco in the Eurozone for a while. In Greece, where they’d been plummeting for years, they plummeted again in the first half, by 41.3%! In Italy, by 19.7%, in France by 14.4%, in Belgium by 12.7%. But until July, Germany had been spared. No more. of the big brands, only Audi (Volkswagen) was up (+14.3%). the others got hammered: Opel (GM) -18.6%, BMW, Mini -17.9 %, Mercedes -14.6 %, and Ford -4.4%. even VW, market-share leader and on a phenomenal worldwide roll, was down 1.5%.

Retail sales, which had also been doing very well, stalled. And the closely watched Ifo index for July deteriorated so sharply that Hans-Werner Sinn, President of the Ifo Institute, admitted, “the euro crisis is having an increasingly negative impact on the German economy.”

Germany’s manufacturing industry is now in a rout. Output and new orders dove in July at a rate not seen since April 2009, the depth of the great recession. it was the 4th month in a row of lower production volumes, and the 13th months in a row (!) of declining new orders—a terror for future production. the overall PMI index crashed to the lowest level since June 2009. Exports were hardest hit, particularly to Western Europe, Asia, and the US, the three largest markets in the world! the decline in exports was steepest since may 2009. And there is talk of “job shedding.”

These trends are reminiscent of the financial crisis, when export orders fell off a cliff, causing GDP to plunge 2.1% in the fourth quarter of 2008 and a horrid 3.8% in the first quarter of 2009. Annualized, those two quarters amounted to a double-digit decline in GDP—the worst two quarters in the history of the Federal Republic. the German economy lives and dies by its exports.

Yet my contacts in Germany remain “relaxed.” There’s no malaise or panic. “In the countryside, everything goes on regardless,” wrote one of them. Restaurants are doing well. People have jobs, wages are going up. Inflation has backed off. the recent feeling of optimism, after years of pessimism, is still hanging in the air. People are bidding up rental properties and plowing their savings into brick and mortar. Well-educated Greeks and Spaniards are heading to Germany in search of work. For them, it’s nirvana. the German government, through various organizations, is trying to rope in its expats in Silicon Valley and lure them back with special incentives to fill the shortage of qualified talent at home. clearly, the numbers I mentioned haven’t yet made their way into the perception of day-to-day reality.

The public debate about bailing out Spain or Greece, and about Draghi’s plan to go on a bond-buying binge, is taking place to the backdrop of a sweetly humming economy. But the ear-piercing screech of the German export machinery as it shifts gears will change the debate—and the political will. German exporters, a super-powerful lobby, will push for all-out “do-whatever-it-takes” flooding of the Eurozone with money. On the other hand, if prospects of layoffs or forced part-time work (Kurzarbeit) are hounding consumers, their appetite for bailing out southern countries will fade altogether—and so will Germany’s ability to do so.

Meanwhile, Eurozone heads of state, top politicians, unelected kingpins, and bureaucratic honchos threatened everyone in sight with the demise of the euro. And then Italian Prime Minister Mario Monti went on attack. An ‘attack on democracy.’ Read…. Escalation of the Extortion Racket: Now It’s ‘the Dissolution of Europe’ Not Just the Eurozone.

As The German Economy Caves, Eurozone Bailouts Take On New Dimensions

School formals no place for austerity

Cinderella had it easy. a pumpkin, a couple of mice, a wave of the Fairy Godmother’s magic wand. you shall go to the ball!

with school formal season looming ahead, many parents are waving the modern day equivalent of that magic wand – which is stamped with the name Visa or Mastercard.

the ball is a time-honoured tradition, and the closest we have to a coming-of-age ceremony. But at what cost? the days of getting dropped off at the school hall wearing a borrowed dress or dad’s baggy suit are long gone.

instead, it’s all about swanky venues, designer frocks and professional styling, leading to a bill that can run over the $1000 mark.

To see just how hot formal fever is running, we caught up with the head students of Riccarton High – Sammy Winward, Maria Throsby, Ben Exton, Beth Alexander and Matt Yates – who are hard at work organising their own ballroom bonanza.

There’s less than three weeks until the big night. the theme is Grecian era, but there’ll be no austerity measures here.

a modest $70 gets you in the door, but that’s just the start. the students quickly rattle off a list of expenses: pre and post ball functions, hair and makeup, nails, accessories, shoes, dress, transport.

Add another $50 or so for a full body spray-tan; apparently the done thing these days, and probably inspired by the glowing orange denizens of hit MTV show Jersey Shore.

Surely the girls are at least getting mum or their mates to doll them up? some might, they say… but “professional is better”.

Make-up artist and hair stylist Lucy Harvey helps transform many budding belles at this time of year, though the season has become more spread out with the lack of available venues in Christchurch.

she charges $65 each for hair or makeup, a fairly standard price, and does cheaper package deals for gaggles of girls who are doing all their preparation together.

Harvey’s impression is that the cost of school balls is certainly on the rise.

“They do things we probably wouldn’t have bothered with back in my day, so they get spray-tans and nails and everything else as well,” she says.

“When I was a teenager, you’d just do that kind of stuff yourself.”

As for the frock- it is unforgivable apparently for two girls to wear the same dress. One stylist mentioned one of her young clients had splashed out on a Rachel Gilbert gown for the occasion.

if, like me, that name means nothing to you, suffice to say a quick Google search reveals Gilbert’s designs have pricetags upward of $1000.

all of this is for the ball itself – but then there’s the afterball function. Christchurch schools tend to discourage them, and have sent letters to parents outlining alcohol policies, but they’re probably inevitable. They also add even more to the running bill – a ticket, possibly another set of gladrags, and alcohol money.

Pity the the poor parents who get suckered into indulging every wish of their aspiring Princess (or Prince).Of course, most will spend up large on one aspect – say, the dress – and save on the rest, right?

“It depends which group of girls you’re talking about,” says Harvey.

“If the girls are paying for it themselves, they generally don’t have lots of disposable income. if it’s their parents paying, it’s a different story.”

at Riccarton High, the amount of cash that can be squeezed out of the olds varies.

One girl’s mum paid last year, but this time round she’s mostly had to save up herself. others have had to pay their way for anything above and beyond the core costs.

“My parents the whole time were like, well if you want to go extravagant, then it’s your money you’re going extravagant with – not ours,” says Winward.

and so the parents of surly teenage lads will, for once, be counting their blessings. with only a tux hire and shoes to take care of, blokes pay roughly half as much as their dates.

Yates and Exton sound pretty stoked – but the ladies quickly pipe up: “You might want to get something for the girl, like a corsage.” a what now?

Another $35 at Central City Flowers is what. It’s an American thing, apparently, adopted from the manic prom scene in the United States.

in the same vein, any aspiring Romeo has to consider the cost of elaborate “prom-posals” for asking one’s date.

Seventeen-year-old Nayland College student Mac Clark set the bar impossibly high this year by taking his girlfriend on a helicopter ride over the school – where the question “Ball?” was spelt out in huge letters on the rugby field.

the Riccarton gang have seen some proposals involving flowers and dressing up, but most beaus still sent their invitation via a somewhat less romantic text message.

We should count ourselves lucky that the full extent of American prom-mania has yet to permeate through the television screens and into our youngsters’ brains.

Intense competition with designer frocks and makeovers in the US has led to so much one-upmanship that even pre-ball cosmetic surgery is becoming common.

according to the American Society of Plastic Surgeons, jawline surgery, which costs between US$3500 to US$7000, is particularly popular.

Reassuringly, Auckland plastic surgeon Glenn Bartlett has never treated a teen wanting a nip/tuck ahead of their school ball, and has never even heard of it happening within the industry.

and if our focus group are anything to go by, the American competition and cattiness hasn’t yet taken over from self-deprecating Kiwi values. We are assured that instead of being shot down, ballgoers are praised for how stunning they look- it’s “the Riccarton way”, apparently.

on the whole, New Zealand-style celebrations – no matter how flamboyant – look positively demure by way of comparison.

Of course, that may in part come down to the February 2011 earthquake. Aranui High’s ball has been cancelled already. Acting principal Jacky Young told the Press recently that some students were more financially constrained, and it wasn’t possible to subsidise tickets this year.

Other balls have been disrupted with a lack of venues in the central city, and the season will probably be spread out again this year.

Christchurch Limousines owner Colin Cowie says that on the night of a popular formal, every stretch limo in the city gets booked out. But balls were spread “all over the place” from may to September, and the earthquakes had taken their toll.

“It’s probably dropped down a wee bit, just with everything that’s happened,” he says.

and yet in the midst of economic recession – with Christchurch hit much harder than most – many teens are sparing no expense on their night out.

People like to indulge in luxuries even during the worst of times – both as a sign of defiance, and a celebration of humanity.

the other explanation is that the rising school ball cost simply represents the influence of the worst aspects of American culture.

whoever holds the magic wand will have to make that decision.

BALL-PARK BALL BILL

GentsSuit hire: $120Haircut: $20Corsage: $35Shoes: $50Ticket: $70Pre-ball and after-ball: $70 Total: $365

LadiesDress: $200Shoes: $50Hair: $60Makeup: $80Manicure: $50Lashes: $20Fake tan: $45Ticket: $70Pre-ball and after-ball: $70

– © Fairfax NZ News

School formals no place for austerity

Allergan’s Botox and Breast Implants Endure European Austerity

Sales in Botox and breast implants are accelerating in Europe despite the continent’s economic crisis, according to the chief executive of US pharmaceutical company Allergan. Despite high rates of unemployment and widespread austerity measures, it seems that southern Europeans in particular place cosmetic enhancement high on their priority lists. recent statistics released by the International Society of Aesthetic Plastic Surgery indicate that Greece and Italy take the second and third spots worldwide in terms of percentage of population receiving cosmetic procedures.

The Financial Times reports that Allergan has company generated double-digit growth in its sales of breast implants in Europe over the past year, while Botox sales have also been performing well. “In southern Europe,” says Allergan chief exec David Pyott, “people spend a higher proportion of their income on appearance and lifestyle. they are happy to live in a modest apartment and look good facially and body-wise when they go out.”

This report comes amidst ISAPS survey results, which indicate that only South Koreans pursue plastic surgery in greater percentages than Greeks or Italians. In Greece, breast augmentation surgery is the most popular cosmetic surgery, while Botox and liposuction reign supreme in Italy.

During the first three months of this year, Allergan’s revenues rose nearly 10 per cent, compared to the same period in 2011. Botox sales continue to grow worldwide, particularly as the popular injectable, is being used for non-cosmetic purposes, such as migraine headache relief.

As for breast implants, much of Allergan’s success can likely be attributed to the recent Poly Implant Prothese (PIP) breast implant scandal. after it was would revealed that the French manufacturer had used industrial grade silicone in its breast implants, more European plastic surgeons began using Allergan’s breast implants. The US, with its stringent standards for breast implants, was insulated from the scandal.

Allergan’s Botox and Breast Implants Endure European Austerity

The U.S. is not the most “Nip and Tucked” Nation after all!

We often get a bad reputation for being a culture obsessed with youth and beauty, driven to stay competitive while at work and out and about. TheU.S.is certainly the largest market for both surgical and non surgical cosmetic procedures. however, according to a recent survey by the International Society of Aesthetic Plastic Surgeons (ISAPS), the United States comes in a distant sixth in our quest to look the very best. An unscientific survey was circulated to ISAPS members, about 20,000 in all, and 698 responses were returned.

The winner is:South Korea! Yes, theU.S.has been thoroughly out done by South Korea, where it is estimated that one out of every five women has had cosmetic surgery. the most popular procedures listed were liposuction, nasal reshaping, and double eyelid surgery to reduce and Asian influence and produce a more western lid shape.

The second place finish goes to:Greece! despite all the economic turmoil and austerity measures, Greece has drawn a line on looking good at all cost and it seems that breast augmentation has captured the hearts and minds of the Greek women who refuse to sacrifice cosmetic surgery as the economy struggles for a rebound.

The third place country,Italy, is also a bit of a surprise, but the interest here appeared to be Botox treatments for a more subtle and conservative approach to cosmetic enhancements.

Brazil is a country known for the importance of good looks, and there was a bit of contention as to why Brazil did not come in higher on the survey list. Remember, the poll was not scientific.Braziltakes its cosmetic surgery so seriously that the government allows tax deductions for those who invest in their looks. Beauty is a benefit to Brazilian culture and society, and their overall economy as well. And speaking of the economy of cosmetic surgery,Columbia, number five, has become a magnet for ‘medical tourism’, within reach of many seeking cosmetic procedures at an affordable cost, and a pleasant locale to recover.

Is the USA really number six on the list of nations in the pursuit of beauty? we are, after all, the largest market and probably outspend the top five combined, but we are not as unique in our culture and interests as we might think. And just consider China, an emerging economy that did not even appear in the recent survey. Well, they just may be next poised to take number one spot away from everyone else.

The U.S. is not the most “Nip and Tucked” Nation after all!