In the News (from The Wall Street Journal): “German corporate and consumer bankruptcies jumped in July from a year ago, according to official data released Friday, a lagging indicator that growth in the euro zone’s largest economy is slowing amid a financial crisis in the region.
“The number of companies that declared themselves insolvent, and therefore unable to discharge liabilities, increased 1.9% in July to 2,580, not including the German state of Saarland. Consumer bankruptcies rose by 2.8% to 8,960 cases, according to Destatis, the German Federal Statistics Office. Together with the insolvencies of other debtors and private estates, total insolvencies in July reached 13,783, an increase of 2.5% on last year.”
My Comment: The most powerful states fall last because they exist at the expense of the weak, but they fall more forcefully and more painfully than the weak, which can lead, as in the past, to war.