Samstag, 22. April 2023

The Reign of Minorities -An essay by Thomas Seidel-

German Version


The purpose of a democracy is the rule of the will of a majority of those entitled to vote. A democracy can function only if the minority is willing to submit to the will of the majority. In return for this submission, the majority in a democratic system freely guarantees the observance of constitutional protection rights vis-à-vis the minorities. This is how at least some of the so-called Western democracies developed in the wake of the American and French revolutions. But the cultural revolution of the 1968s has led to a thorough perverting of this fundamental understanding of democracy.

Even in the ancient democracy of Athens, from about the fifth century B.C. onward, the greatest concern of the popular sovereign, represented by the urban people's assembly as the legislature, was that democracy might be perverted by a possible abuse of power on the part of the executive. This concern also existed in ancient, still republican Rome. Here, as there, attempts were made to prevent a possible abuse of power through extremely short executive terms of no more than one year. Nevertheless, power-hungry tyrants succeeded again and again in seizing power, especially in times of crisis threats, and dictating their conditions to the people. Admittedly, without the direct or at least indirect participation of the people's representatives, things never went well for too long, even during a tyranny or dictatorship. However, neither the ancient nor the modern thinkers and constitution-makers ever dreamed that the perversion of democracy would one day be brought about by the legislature itself. And yet this is what has happened today.

In Germany, but also elsewhere, it began with a phenomenon that is now generally known as the "cultural revolution of 1968". This is the generation of the self-proclaimed "blessed late-born", as the later German Chancellor Helmut Kohl, for example, claimed for himself in a somewhat modified form. This refers to the children of German parents born from about 1946 or somewhat earlier and up to about 1953. Those parents were active or passive participants in the Second World War. Their children themselves, however, consider themselves innocent of the horrors of World War II because of their late birth date. Around the year 1968, this generation was then pushing its way into the universities or was already romping around there. An extremist minority of these young people were very dissatisfied with the existing social conditions of their time, not only in Germany, but in many democracies of the Western world, for example in the USA, but also especially in France and Italy.

At that time, post-war societies were in a desolate state. At that time, the Cold War was raging between the superpowers USA and Soviet Union, hotly fought as the Vietnam War with its countless dead. The Christian churches and sects exercised, unatoned to this day, their power over the faithful and in society abusively above all as standard bearers of a degenerate sexual morality, especially with their inappropriately high political influence above all in Germany and Italy. An outdated bourgeois convention prevailed in the societies, which has never abated in its fascist dreams, even to this day. There existed a restrictive judiciary, which until then, especially in West Germany, was in parts still permeated by former Nazis and their followers. In Germany in particular, the persistent silence of a mendacious parental generation echoed the truths of their actions and suffering during Nazi rule. The young people found all this simply to "suck".

Even at that time, the capitalist economic order of the Western world was considered by the students to be exploitative, wasteful of resources and destructive of the environment. They regarded the neo-Marxism of the Frankfurt School as the better economic model compared with the liberalism of an August von Hayek. Democratically, freedom of speech was especially important to the young people. But the generation of the "blessed of late birth" acted quite as if they had not already enjoyed freedom of speech. In addition, there was a diffuse call for freedom in the personal conduct of life. What was meant by this was above all a kind of sexual freedom of action. Mostly young male " wannabe-Revoluzzer" however took the liberty with as many women as possible unrestrainedly around to fuck. The question of contraception, thanks to the pill, has become much easier. The gentlemen generously left to the responsible care of women, including possible offspring care. Finally one fought from the outset against the apparently omnipresent at any time threatening atomic death! This was accompanied by a mystical fear of all kinds of harmful or even deadly radiation from various newly emerging devices, especially the later cell phones.

The places where the revolts broke out and unfolded the worst turned out to be the universities. In Germany, West Berlin and Frankfurt were at the forefront. People protested against the old-established professors, the keyword being "the mustiness of 1000 years under the gowns". They occupied lecture halls, endlessly discussed the alleged problems of society, roared, rioted and mobbed through the streets, occupied old buildings and left graffiti everywhere, which this generation quickly redefined as a new kind of art. The milieu was accompanied by increasingly confused, disharmonious music that lacked any melody or harmony, but which, like nothing else, revealed the true state of mind of its listeners, rock n' roll in all its forms.

The protesting students were above all loud, and loudness became the main instrument of their power. Reasoning with them was pointless. Opponents of opinion were publicly beaten down by shouting down on the part of the protesters. This early practiced method of permanent disgusting, pejorative and denigrating denunciation and insult of their opponents, should only with the advent of the "social media" on the Internet platforms in our time so really broadly in momentum and leads today to sharply increasing disinformation. However, the diabolical seed of total disrespect towards simply everyone and everything was already planted by the 68 generation. It never occurred to these violence-prone, bawling, insulting and denigrating minorities that their behavior itself deeply corresponds to the action patterns of the fascists they supposedly fight so vehemently, down to the last detail, and that in truth they differ in nothing from those who are supposedly their worst enemies.

The protesters refer to socialist-communist fantasists such as Karl Marx, Friedrich Engels and Ernst Bloch, are guided by the critical theory of a Theodor W. Adorno, Max Horkheimer and Herbert Marcuse, finally they glorify mass murderers such as Lenin, Stalin, Mao, Fidel Castro, Che Guevara and Ho Chi Min. Meanwhile, it is no wonder that for some of them their affairs slide into the violent.

The situation escalated. Some of the student critics first became criminals, but then still drifted into the terrorist underground. For example, the Red Brigades in Italy, the Red Army Faction in Germany or the Sendero Luminoso in Peru. These and similar underground organizations in various countries directed their violence directly at representatives of the system they so hated. Many people were murdered. For example, the Italian Prime Minister Aldo Moro or many Germans such as Jürgen Ponto and Alfred Herrhausen from the banking world, Hans-Martin Schleyer from the employers' association, high state officials such as Siegfried Buback and Detlev Karsten Rohwedder. In addition, particularly despicable, completely uninvolved citizens such as the drivers of the celebrities or even department store customers. The terrorists spared nothing and nobody in order to achieve their declared goals. The terror became ruthless, shameless and boundless. They allied with other terrorist groups in various countries and carried out terrorist attacks together, thus laying the seeds for a curse to which peoples are still subjected today: the constant terrorist attacks by allegedly politically oppressed minorities.

However, all these do-gooders are and remain a minority as a political force up to now. Barely five percent of a potential electorate belong to the core clientele of environmental parties, for example, or of the left-wing or extreme right-wing groups on the political spectrum - no more and no less. But that is not enough about such minorities. In addition to these explicitly politically organizing groups, more and more citizens' initiatives are constantly forming with the purpose of being against anything, preferably always and everywhere. Mostly very locally limited, but always outside of any democratic order acting interest groups, often tiny minorities within the total population, which nevertheless want to impose their will on the majority of citizens by all means.

What all these minorities have in common is that they make demands that relate only to the assertion of their own interests. They claim special rights for themselves. But not primarily the enforcement of such rights as the state constitution, the legislation and the jurisdiction of a country already grant them anyway. No, they also want to obtain special rights for their specific interests, the permanent "lex exceptio...". In doing so, they are completely indifferent to two things: on the one hand, the will of a majority opinion, on the other hand, any thought of possible duties of each citizen towards the general public in a constituted society.

It is precisely this attitude of increasing dutylessness of an individual towards society as a whole that is one of the most corrosive elements of modern democratic societies. One immediately has to think of the assassinated U.S. President John. F. Kennedy, who once said at his inauguration, "Ask not what the state can do for you, ask what you can do for the state!" Such an appeal would go completely without effect in today's "free" societies, and would probably provoke screaming criticism from various minorities. One of the duties within a social order, by the way, is also to have to tolerate or support something that may not suit one personally.

The extent to which the anti-democratic behavior of minorities has meanwhile crept into the canon of values of daily politics, at least in Germany, is exemplified by a speech made by the former President of the German Bundestag (head of the parliament), Norbert Lammert, in Gelsenkirchen in 2006. There it says, among other things:

"The essence of democracy is undoubtedly that majorities decide. Yes. But the quality of a liberal society is not so much recognized by the fact that majorities decide, but by how a society deals with its minorities. That not only the decision of the majority applies, but that minorities have rights and that they may not be touched by anyone, even by majorities."

Lammert, after all a representative of a political people's party that calls itself that, argues here quite as if there were not already minority protection in the constitutions and legislation of Western democracies. He declares this protection of minorities to be a quality feature of a democratic society. However, he forgets to mention that a democracy can only function at all if the minorities bow to the decisions of the majority and also take upon themselves the duties that go along with them. Lammert, born in 1948 and himself a typical representative of the '68 generation, was after all president of the Bundestag for three legislative periods and thus, in terms of protocol, the second-highest man in the German state. With this statement, he testifies to how little he actually understood about the principles of democratic society. Lammert is also a typical example of how, over the years, the 1968 generation has wormed its way into the highest offices of the state through institutions that are in themselves hated by them, and from there it has carried out its democracy-destroying work.

The fundamental democratic primacy of the majority over the minority is less and less the case today in political reality. Particular interests are on the rise in all social classes. There is a veritable boom in splinter parties and extreme groupings. Worse still, the dwindling general canon of values clearly shows a lack of respect for the achievements of democracy and is destroying it from within, just as the generation of '68 set an example to all their descendants over fifty years ago.

Thus, it is not a power-hungry executive that is perverting the existence of democracies, as has been feared for more than two and a half thousand years, but they are being slowly but surely destroyed from within the legislative branch, by various minorities among the representatives of the popular sovereign.

However, the loudly rabble-rousing, democracy-destroying minority elements are still opposed by an overwhelming majority of dutiful, hard-working, unruly citizens, generally known as the "silent majority". These people don't babble and lament about basic rights and conditions; instead, they pitch in and do something when needed, and help in all emergency situations without being asked. Even though most of them are politically disinterested, many of them are also very socially engaged. They are available, for example, as voluntary helpers for all kinds of tasks; they support entire areas of society, such as sports; they provide selfless support in all kinds of disasters; they are the basis of many cultural events and they literally clean up the mess when the roaring minorities leave behind a filthy public space after their demonstrations.

If the Western democracies want to survive in the future in the spirit of their constitutions, they need more than ever the political commitment of the so-called "silent majority," which not only endures all the tribulations of those corrosive minorities, but also pays for them. But how can this be done? How can the foundations of democracy be strengthened again? What can politicians do if they want to restore the will of the majority to an appropriate level?

First of all, the people of the "silent majority" must be given recognition and respect for their so often invisible achievements, instead of constantly bullying, harassing and squeezing them with new laws and regulations. A contemporary overarching set of values must be developed and communicated. This should be broad enough so that as many citizens as possible can identify with it. Voters must have the feeling that they are on the right side with the political canon of values. Moreover, such values should emphasize both the freedom and the duty of citizens within and toward the community. However, programs to which every individual can orientate himself or herself and find his or her way back are only one thing.

Politics is made by people for people, and voters have a very good sense for pretenders and bloodsuckers. So what is needed above all are authentic and passionate personalities who will stand up to an election by the citizens. Whenever a candidate for political office is merely just an administrator, the electorate's interest in politics diminishes very quickly. This has been the core problem of parties and their political candidates for years, not to say decades. In the vast majority of cases, politicians are faceless administrative types whose lack of political passion, on the one hand, and their greed for administrative offices, on the other, can be seen from afar. In other words, people who primarily sleekly pursue their personal supply interests in a political career and otherwise do not want to assume any kind of responsibility for any of their decisions. That's why they like to set up committees for decision-making, or leave the formulation of laws to external consultants. If nothing else helps, they sometimes invoke the inevitability of supranational decisions, such as those of the European Union. The former mayor of Frankfurt, Peter Feldmann, who was voted out of office, is just the latest and most extreme example of this. But especially in politics, you also have to accept that people can fail, disappoint, you can fall for them. But this is exactly what democracy is made and intended for.

If voters are given the feeling that they are the actual sovereign after all, then they will also be interested in politics again. It is not the parties that should shape a politician, but a politician should shape his party. Parties are nothing more than electoral vehicles. The organization of a political party should not be in the foreground, but the individual candidate for public office must justify himself to the individual citizen as sovereign.

Charismatic leaders can always be found, and when they turn out to be lousy, the democratic order has instruments to get rid of them. Much more difficult than that, however, is the establishment of a generally valid set of values. There have always been revolutions that have wiped away traditional values. The revolts of history were even characterized by the fact that they had already developed a new valid canon of values before they entered into the revolution itself to implement it.

However, the revolution of the generation of 68 was completely different. They bothered about society and destroyed all the old certainties of that society, but unlike all the other revolutions, they did not impose any new values. All that remained was a social and spiritual void. Accordingly, the children of the 68 revolters grew up empty of meaning, especially in the 1980s. Left completely unprepared for life by their revolutionary parents, without any content or meaning, these children turned to the only socially distinguishing values they encountered, the consumption of goods. Thus was born what in Germany was called the "Generation Golf." Teens, twens, and later adults for whom brand-oriented consumption became the only presentable distinction of existence. Only their children, the grandchildren of the 68ers, disgusted by their society-hating grandparents and their brainlessly consuming parents, began to discover new values for themselves and to fight for them: a clean environment, healthy nutrition, anti-discrimination, and much more. Of course, they in turn developed into new politically aggressive minorities.

In order to defend oneself against the screaming and screeching minorities, one does not need the same aggressive instruments and procedures of such people. It is enough to simply make it known in the real and media public that one does not agree with their demands and contents. But rare individual statements alone have little effect. It needs thousands even hundreds of thousands or even millions of voices with a simple statement: We are the supporting majority and do not go along with it! Because any minority, no matter how aggressive, will fail when it realizes that its ideas simply do not appeal to the majority. In this way, the rule of the majority over the minority can be re-established.

Picture: Protesting students in Frankfurt am Main 1968

Source: Google, Frankfurter Allgemeine Zeitung


Freitag, 9. September 2022

End of an Era - On the Death of Queen Elizabeth - by Thomas Seidel






To many people today, monarchies appear as something antiquated, fairytale-like, at best constantly entertaining. What an important unifying and symbolic function monarchs can have, and sometimes even must have, for a nation is generally gladly overlooked. This is less true of the kingdoms of Denmark, Norway and Sweden. But it is certainly true of Spain, it is true of Belgium and, above all, it is true of Britain. No one in our lifetime has embodied this better than the Queen of England, Scotland and Wales Elizabeth the Second.

However the crown fell on her head at a young age, Elizabeth II wore it from then on and until her death in full awareness of her duties and always with dignity. Her special charm may have been that, at least in public, she never allowed herself to be bent by any adversity, by any misfortune, or by any impropriety. She was the queen par excellence, the standard, the model and the symbol for a whole nation and for several generations.

One hardly thinks about the high price she personally had to pay for this task in her long life. Without the chance of a longer young life at the side of her omnipresent husband Philip, to whom she was married for over 73 years until his death in April 2021, she ascended the throne at the age of only 26 after the sudden death of her father King George VI and from then on had to be Queen first and foremost. Fulfilling this difficult task with dignity every day anew must have cost her an unimaginable amount of self-control and iron discipline. 

The timing did not make it easy for her. Of the children, the boys in particular have repeatedly been bitter disappointments for her. Only her daughter Anne behaves according to her status. The more than one hundred years of life of her mother (Queen Mum) Elizabeth Angela Bowes-Lyon certainly contributed to the preservation of a long-gone 19th century notion of monarchical rule until her death. So, in the end, Queen Elizabeth could not really modernise the royal house of the Windsors, or Mountbatten-Windsors. 

Queen Elizabeth II has seen a total of 15 prime ministers come and go. Among them were pretentious ones such as Winston Churchill, who delayed her coronation by a year; failed ones such as Clement Attlee (1945-1951), John Major (1990-1997), Gordon Brown (2007-2010), Theresa May (2016-2019) and most recently, until two days before her death, Boris Johnson (2019-2022); and successful ones such as Margaret Thatcher (1979-1990) and Tony Blair (1997-2007). Whoever ruled the country politically Queen Elizabeth stayed and held fast to her core beliefs. This achievement should not be underestimated, for Britain is anything but a united motherland.

It is already a historical oddity. Two queens Elizabeth  respectively mark the rise and fall of English and later British rule. Few know that Elizabeth I, always politically pressed to the utmost, after the successful piracies of her minions Sir Walter Raleigh and Sir Francis Drake raised enough capital, it was she who conceded and legitimised the beginnings of the East Indies business. This once gave rise to the British Empire, a nostalgia of which Brexiteers still dream so fondly today. For Elizabeth II, all that remained was to accompany, bit by bit and piece by piece, the demise of what was once British world domination. In her era, Britain shrank back to what it once was, a barren country on the extreme western edge of Europe. Not even a few nuclear submarines and aircraft carriers help. It was Queen Elizabeth II's special work to make this truth a little more comfortable for her countrymen. She was the very staple of the United Kingdom, the bearer of the crowns of England and Scotland. As such she will be remembered forever.

Picture credits: Queen Elizabeth II

Source: google, merkur.de

Mittwoch, 23. Februar 2022

The Olympic idea has finally ruined its course -by Thomas Seidel-

German version

Entzündung des Olympischen Feuer im Hera Tempel Griechenland
Source: Deutschlandfunknova


The idealistically splendid idea of the Olympic Games of the modern era by its founder Pierre de Coubertin was: "the youth of the world should compete in sporting contests and not fight each other on the battlefields". So far so good. Nevertheless, wars have been fought since 1896, and the worst the world has ever seen. So using sport as a means of international understanding has never worked. But once again, commercial greed has finally killed the Olympic idea. After Beijing 2021/2022, the Olympic idea and honour will be gone forever.

If one were to consistently translate the results of Olympic sporting competitions into concrete policy today, e.g. according to the eternal medal table of the Summer Games, the spheres of power in the world would essentially have to be divided among the following five nations: USA, 37%; Russia, 23%; Germany, 19%; United Kingdom, 13%; and China, 9%. In terms of population, Germany would even be in first place, but that's just by the way. China's arithmetically small share is certainly due to special political circumstances, such as the long absence of China from Olympic participation in the first place. In relation to the population's share of the Olympic medal haul, however, China's status is pitifully small. China's political leadership is painfully aware of these correlations and will do everything in Beijing to change these circumstances in China's favour in future. However, such mind games already clearly show one of the negative developments with regard to the Olympic idea.

Nevertheless, the Olympic Games were a reasonably honourable affair for a long time, apart from the propaganda events of the Nazis in 1936. The "purity" of the Olympic idea initially depended less on the status of the competing participants as amateurs or professional athletes, nor on the political situations of the host countries, but primarily on the rejection of sponsors by the International Olympic Committee (IOC).

The American Avery Brundage, IOC President from 1952 to 1972, was still authoritarian in his opposition to any kind of commercialisation of the Olympic Games. But with Juan Antonio Samaranch y Torello, IOC President from 1980 to 2001, all the dams broke. Amateur status was abolished and by allowing sponsors, the Olympic Games were finally commercialised and thus also immediately corrupted. The athletes became cannon fodder for officials, sponsors, unscrupulous doctors, media and politicians. Their physical well-being, damaged and desecrated above all by doping, has since been sacrificed at all events on the altar of supposed records, fame and honour but above all lucrative profits. 

The IOC President in office since 2013 is the German Thomas Bach. A former fencer and thus an athlete in a sport that has always been about honour. He has not been able to put an end to these goings-on. Under his leadership, the IOC has repeatedly bowed to obscure political pressure with regard to venues, the type of event, the time of the event and changes to the rules. That a German, of all people, is responsible for this development is a bitter pill to swallow for what is actually the most successful Olympic team in the world in the long term.

The Olympic idea has finally ruined its course. The Olympics have become nothing but dubious. Doubtful in how decisions are made, doubtful in how the Games are conducted, doubtful in how the athletes' performances are fairly evaluated. Participating in the Olympic Games in the future may bring in some fame for a while, but the glory of participation is long gone.


Sonntag, 10. Januar 2021

Reluctant Officials Cause Corona Gau by Thomas Seidel



Palgue Pillar in Vienna, Am Graben. Will we have to erect memorials to the victims of Corona in the future? (Source: wikipedia, GNU-Licence, Originator: Briséis)


As if the Corona plague were not already the worst health threat Europe has had to endure since the plague epidemics of the Middle Ages, the officials of their countries are stabbing the population in the back through inertia, passive resistance and deliberate opposition. Politicians everywhere seem powerless against it.

Everyone still seemed to have been taken by surprise by the first wave of corona. Despite new and worsening waves of influenza every year, no healthcare system in Europe (not to mention the rest of the world) was really prepared for the onslaught of such a deadly virus. For decades, the false credo of unconditional profitability of health care systems has jeopardized widespread medical care. Alleged overcapacity in the hospital system was eliminated. Any necessary stockpiling and precautions were reduced to a minimum.

The situation was no different in the pharmaceutical industry. For cost reasons, the production of raw materials for drug manufacture and even of high-quality drugs themselves was relocated to countries, whose quality standards had been increasingly questioned by experts for some time. Europe has become dependent on mostly Far Eastern suppliers for the supply of many medical products.

When the Corona epidemic broke out, nothing necessary was sufficiently stocked. Not enough breathing masks, protective gloves, not to mention intensive care beds, medical and nursing staff. Brutal procurement battles were the result. Aircraft loaded with medical products for Europe were simply hijacked and diverted by militarily threatening powers. Europe found no answer.

But the real health threat lies in the internal administrative apparatus of the European countries. An inkling of how things would turn out was given during the last summer months in Germany's school system. From March 2020 to August 2020, the responsible school authorities and ministries of education had a full six months to set up sustainable and resilient educational systems that could have offered pupils, trainees and students a modern alternative education even under the conditions of a virulent mass epidemic. Nothing happened!  Instead, there has been complete inertia among teaching staff, trench warfare and class warfare in ministries of education and school boards over the ideological question of whether lessons should be digitized at all, and if so, whether they should be. Initiatives by parents, e.g., to purchase ventilation systems at their own expense in order to maintain face-to-face teaching, were thwarted by the bureaucracy with flimsy references to technology that did not comply with regulations.

All this then escalated to absurdity in the second Corona epidemic wave starting in November 2020. The way the first tested vaccines were repeatedly delayed in their use by the responsible health authorities made it clear how arrogantly authorities simply put the lives of thousands of people at risk just so that the paths of their regulations would not be disturbed. As for the licensing of vaccines, it was probably less about clarifying medical and pharmacological issues and more about evaluating legal liability issues, with all their familiar legal dalliance. The unprecedented impudence, arrogance and contempt for humanity with which the authorities dealt with the epidemic then became apparent when everything came to a head in the approval process in Europe during the Christmas holiday season. Both the European and the German authorities initially had the guts to announce a date for the approval only after the Christmas holidays. Exclusively in order not to disturb the holiday rest of the officials. When the storm of indignation broke out over this, things suddenly moved faster, but not more unbureaucratically.

No sooner were vaccines licensed than it turned out that there was not enough production capacity at all to supply the European population even close to the deadline in the next eight weeks. While other non-European countries have used tricks to gain advantages in ordering vaccines from European manufacturers and brag about having their population herd-immunized by the end of March, the European citizens are once again seen as the stupid sheep who have been fooled by their officials and have to be patient until well into the summer of 2021.

For the outrageous way of official passive resistance, the daily due report of the current corona figures can be used every week. How can it be that over the weekend no or only fragmentary figures are reported to the Robert Koch Institute, just because some state authorities think that they do not work on weekends and thus have to report. It is unacceptable that offices go merrily into the weekend even when people are dying of the disease every day.

Not enough with all the bureaucratic obstructions in the medical control of the epidemic. Now it turns out that the economic aid applicants have also been deceived by their governments, even though thousands of billions in aid have been approved at the European, national and regional levels to mitigate the economic consequences of the Corona epidemic. Once again, it is the civil servants who only come out with the small print after the fact, as if it were a matter of their personal private assets and not of thousands of individual human lives and fates.

Politicians seem to be powerless in the face of this or simply want to let it happen. One gets the impression whatever chancellors, prime ministers or even state presidents decide, the executive civil servants don't seem to care. They continue to do their work by rule. The responsibility for all corona-related deaths, which are still to be deplored in Europe from April 2021, must be credited to the passive resistance of this civil service. Humanitarian lawyers should find a way to hold the body of Europe's executive officials accountable for this before the European Court of Human Rights. It is to be feared, however, that this will remain wishful thinking.


Freitag, 18. Dezember 2020

Retrospective of the year 2020 -by Thomas Seidel-


The great void

The spread of human civilization in the dark of the night

(Source: Google, FAZ)

Deutsche Version

However the year 2020 will be regarded in an overall historical context, it is clear to us contemporaries that it was an extraordinary year in every respect. It is easy to look back and list the facts and write about events that we all remember all too well. It is better to look at the big picture, to try to take a bird's eye view of human society.

There is no question that 2020 could enter history as the year of the stupid. For the stupid have revealed themselves to all of us in the still ongoing Corona crisis. For example, at demonstrations and in daily business dealings. They show themselves powerfully on television. They wear no masks and proclaim to be proud of it. The stupid are everywhere and come from every social class. Stupidity does not stop. No office and no position of power. Whether it is the official corona deniers in many countries of the world. Whether they are self-proclaimed freedom fighters against coercive state measures. Whether they are declared opponents of vaccination. Whether it is about stubborn civil servants in state administrations who do not want to deviate one iota from any procedures. Whether it is about those who want to put the right of the individual above the right of the general public. Whether it is about those who also grant those individuals those individual rights. Whether it is about greedy profiteers who try to gain an advantage for themselves out of every hardship. Whether it is about false preachers who still hope for a methaphysical salvation. Whether it is about the denunciators who satisfy themselves by always pointing the bare fingers at others, but in reality only want to distract from their own shortcomings. All these and many more have openly shown in society and in the family how unrealistic, selfish, vile and despicable they are.

But there is also no question that 2020 should go down in history as the year of heroes great and small. As seldom before, 2020 has shown the extraordinary humanity, helpfulness, understanding, compassion and devotion of which most, really the vast majority of people are capable. Whether it is those who are on the front line fighting the pandemic. Whether it is those who are trying everything to find ways out of the many emergencies. Whether they are people who simply sew a few masks, for example, when they are so urgently needed. Whether it is people who take care of their fellow human beings when they are even worse off than themselves. Whether they are people who are facing personal economic ruin and yet are trying to get their act together by all means. Whether they are people who perhaps simply show reason and do everything not to make the misery even worse. All these invisible and silent helpers have stood up to stupidity and ignorance and for that they deserve every recognition.

The stupid are so stupid that they shout their stupidity out loud. But a look at the whole reveals that humanity outweighs the stupid, the ignorant and the greedy. Unfortunately, the human is also always the quiet and silent.  But that it is there, this certainty holds an experience and carries a hope. The young generation should remember this the next time such a crisis inevitably occurs. In this respect, the year 2020 also brings a small consolation. Nevertheless, we should all hope that such a year will not happen again so soon. 

With this in mind, I thank all loyal readers and wish you a blessed Christmas and a better New Year 2021.

Deutsche Version

Sonntag, 13. Dezember 2020

Pension reform is more important in the long run than Corona aid -by Thomas Seidel-

Without pension reform, this fate threatens the current generation later on
(Source: Google, Tagesspiegel)


These days, huge sums of money are being spent to counter the consequences of all kinds of crises. In the background is a problem that can easily unbalance all national budgets in the long run. It is the unresolved issues of a pension system that is in urgent need of reform.

The state pension system (statutory pension insurance) of 1891 is justifiably a German invention. However, it was not conceived for the benefit of the working population, but primarily served to provide a regulated supply of used human labour of the industrial society.  About 1900, society had a simple starting point.  People often remained local. There was little fluctuation. Retirement began around age 65. Life expectancy was low. Statistically, men died after barely five years of pension experience. 

At the beginning of the pension system, no money was saved for payouts. So the pay-as-you-go system was chosen. This means that the pension contributions of today's active workers pay the benefits to today's pensioners as well. No capital is built up. Nothing is saved. This principle still applies. One third of the payments are financed by contributions from employees. One third comes from employers' contributions. The last third comes from tax money. However, this share is getting bigger and bigger.

The system in Germany has had one cardinal flaw from the very beginning. The pension insurance has remained a system of social status up to this day. Older, already existing pension systems were initially left in place as far as possible. Thus, a pension fund was created for blue-collar workers, white-collar workers, civil servants (in fact none), the self-employed (in fact none, unless there was already professional insurance, such as for doctors or lawyers), as well as a whole series of traditional professions, such as the miners' insurance for miners or the maritime insurance.  From a legal and insurance point of view, the statutory old-age pension scheme was a work of the century, conceived for generations.

Until politicians, especially after the Second World War, came up with the idea of buying votes with alleged improvements to old-age pensions. Since then, old-age provision has been the toy of political parties and lobbyists, so far mainly at the expense of current pensioners. There is no desire to constantly increase contributions. The aim is to spare employers the burden of social costs. So the benefits for pensioners were reduced from about 75 per cent to about 48 per cent of their last income today. The system of social status promotes inequalities. On average, civil servants receive more than twice as much in retirement benefits as pensioners in the private sector.

In the last 130 years, however, the conditions for old-age provision in society have changed drastically. Everything is in flux. Learned profession and actual activities drift apart more and more often. People change locations in order to find work at all. People constantly have to improve their qualifications. Family reasons interrupt the continuity of contributions. People work abroad for longer periods. Continuity in the individual income history for around 45 years of work is no longer guaranteed.

Despite various adjustments and reforms, the statutory pension insurance is too rigid and inflexible to cope with the dynamic changes in the world of work. The costs of old-age provision according to the pay-as-you-go model are foreseeably no longer sustainable. Therefore, old-age provision needs to be supplemented by the employees' own taxed net income. This is unacceptable for workers. Riester and Rürup pensions (The terms "Riester" and "Rürup" stand for two pension supplementary laws from around the year 2000. They were intended to regulate private old-age provision from taxed net income and make it attractive to save money. The Riester Act was for non-self-employed workers, the Rürup Act for self-employed workers. However, both laws fell far short of their goal) have only been an attempt and have never really taken off. Too intransparent, too bureaucratic, too inflexible.

At the national level, there is a need for a comprehensive old-age provision programs on several complementary pillars:

  1. The abolition of the system of social status. Everyone who earns income from work must first contribute to the one state pension system. Even if this means that lower contribution rates have to be temporarily applied on a staggered basis for low incomes (such as for the self-employed).
  2. There must be a central fund for all voluntary occupational pension schemes into which all contributions flow, regardless of which employer one is with. The fund should be gilt-edged and managed by a trustworthy body, such as a special department of the central bank. These pension savings must be tax- and social security-free for all participants in the accumulation phase.
  3. It must be possible for every employee to make special payments into the fund free of tax and social security contributions. This must also apply to the settlement of time credits for pension savings in companies.
  4. The age limits for retirement must be made much more flexible. This applies to an early pension just as much as to a late pension. Why shouldn't the individual decide when to retire after a certain pay-in period. The legally enforced forced exit from working life must be abolished. The desire for a longer or shorter working life should be realisable. This goes hand in hand with the generally much longer life span.
  5. Entirely personal old-age provisions such as endowment insurance, real estate acquisition, fund savings or even simple savings should not be subject to flat-rate social security contributions if these assets are verifiably used for retirement.
  6. Capital formation contracts for the purpose of later annuitisation may not be subject to contract brokerage commissions or fees.
  7. Finally, there must not be cut-off date-related taxation of securities whose values are subject to constant price fluctuations if the purpose of the liquidation of securities is to annuitise them here as well.
  8. The system must be transparent, understandable and comprehensible for everyone. Annual information on the entitlement status at different ages in the future from all insurance providers is indispensable.

A large number of these measures could be easy for a legislator planning for the long term, provided there is political will. The core of the existing pension system would remain in place. The asset protection of occupational and private pensions would become more attractive and people could gain more security and freedom in their very personal life planning.

Incidentally, it is an indictment that work has not long been done at EU level to find regulations that would gradually and in the long term lead to a uniform EU pension system. Politicians are obviously not aware of how many people are already choosing their jobs on the basis of where they will be able to claim the most reasonable pensions later on. National pension systems are in any case contrary to the idea of an EU-wide flexible labour market. What is certain, however, is that if a fundamental new start is not made very quickly, first in the national pension system, the younger generations will look for a government that takes their concerns seriously and are acting. 

Dienstag, 29. Oktober 2019

Just don't ring the bell - observations at the Farewell Party for Mario Draghi- by Thomas Seidel


German version
Joint ovations for the European Anthem, from left to right: Christine Lagarde, Emmanuel Macron, Angela Merkel Mario Draghi with wife, Sergio Matterella, Ursula von der Leyen, Volker Bouffier
Source: ECB

On the occasion of Mario Draghi's farewell as President of the European Central Bank (ECB), distinguished guests from the worlds of politics and business will pay their respects in Frankfurt am Main. A great deal of gratitude is due to the man who allegedly saved the €uro from destruction. The event gives the observer a deep insight into the internal mechanisms of the European bureaucracy, but it does not provide any information on how things are going to go on in monetary matters in Europe.

The European Central Bank in Frankfurt am Main has never experienced anything like this before. Three heads of state and government of European countries, an elected President of the European Commission and a designated successor to the President of the ECB will meet in Frankfurt am Main on the premises of the European Central Bank in order to bid farewell to its current President at the end of his normal term of office. 

Volker Bouffier, Angela Merkel, Mario Draghi
Source: Thomas Seidel
This raises protocol questions. Mario Draghi himself greets the highest dignitaries at the entrance to the building and walks them along a blue carpet, as if the ECB's landlord were at eye level with these ladies and gentlemen. Of course, the President of the ECB is the top representative of a very independent EU institution, and one can even say that it is the only EU institution that really works effectivly! But is a central bank president who is not directly legitimised by a democratic election really so on an equal footing with heads of state and government? The honour of this parade for the outgoing President of the ECB and the special gratitude expressed in the speeches of the protagonists paint a different picture.

Draghi is rightly praised for being a deeply convinced European who has practiced the more than two thousand year old brace of a common European understanding of culture to this day. One rightly admires the fundamental knowledge of the economy and, more importantly, the ability of Draghi to convey this to less economically educated decision-makers within the framework of global contexts. Draghi is rightly revered as the saviour of the €uro, if one wants to believe in the solitary integrating power of the common currency without the banking, capital market and fiscal union. But it is precisely the achievement for which Mario Draghi and the Central Bank Council like to praise themselves the most today, the creation of over eleven million jobs in Europe, that is influenced by so many other factors outside the ECB that the concrete share of monetary policy in it is rather difficult to discern.

Christine Lagarde has much to do
Source: ECB
Mario Draghi leaves a very difficult legacy to his successor Christine Lagarde. The ECB has now bought so many government bonds indirectly, and continues to do so, that some countries are no longer able even to issue more debt obligations. This will inflate the ECB's balance sheet for decades to come. Most €uro member countries will not be able to pay back their debts in generations to come, and for political reasons most will not want to. The ECB's purchase programme and the flooding of banks with money have destroyed the interbank money market in the long term. Nobody knows how this can be repaired! Zero interest rates or even negative interest rates, that has been learned from Japan since 1995, lead to nothing, except to the artificial respiration of already dead branches of the economy, which one simply does not want to let die for the sake of political opportunity. Inflation targets are imaginations. When Wolfgang Schäuble (former minister of finance in Germany) once wanted to know from Mario Draghi where the prayer mill-like repeated formula of "knapp unter zwei Prozent" (which in English can only be murky expressed as "below but close to two percent") comes from, his answer is supposed to have been: "der Otmar wars" („this was Otmars definition“ meaning the former German chief economist of the ECB Otmar Issing). In fact, inflation has not disappeared. It is taking place to an alarming extent on the stock and real estate markets. There, new speculative bubbles are forming unrestrainedly, which, as in the last financial crisis, can burst at any time. However, since their values are not included in the current consumer-oriented definition of inflation measurement, many people do not really perceive inflation, although, subjectively speaking, many things are becoming much more expensive. In fact, over the past eight years the ECB has solved fewer problems than it has moved them elsewhere. Christine Lagarde can now devote herself to all of this for the next eight years, as long as day-to-day political events allow time.

Handover of the Central Bank Council meeting bell. Mario Draghi claims not having used it even once in all eight years. As in the poem by Edenhall, Mrs Lagarde: Don't ring the bell!
Source: ECB

Something else has been made in this event even more obvious. You can feel how the European institutions and bureaucracies really work. A small, fine elite of very well-trained and well-paid people has already developed there, who can easily communicate with each other in many languages. This group of people prefers to remain among themselves and is moving ever faster away from the everyday reality of the people who ultimately finance this elite through their daily work. But the distances to each other are getting bigger and bigger. This is an important reason for the developing populism everywhere in Europe. There the tribunes of the people speak in the language of ordinary people and like to be heard quickly. One of the most important tasks for the new President of the ECB, Christine Lagarde, will be to put this communicative imbalance back on track. Only if people understand why a central bank acts as it does will they perhaps feel well looked after under the symbol of the single currency.

At least the heads of state are well protected! Police in front of the ECB building
Source: Thomas Seidel