Germany's Sudden Collapse is a WARNING to Trump & the U.S.A. [PREPARE]

this is embarrassing as a German

American I know the Germans can be very

proud people and I'll tell you this is

not good German swap spreads have

collapsed into

inversion Sovereign credit worthiness

takes a slide now Germany is being

compared to

Italy now I don't know if you know much

about European politics but when you

start talking debt and Italy the first

word that comes to mind for people who

study the European Union is pig well

pigs Portugal Italy Greece Spain 2013

lots of debt austerity trash piling up

in the center of Athens because they

can't afford to pick up your freaking

trash everybody's jobless it's a

disaster it's hell well what's happening

in Germany right now some people are

saying is maybe the lead into a similar

kind of hell that you saw in 2013 and

quite frankly could be recessionary for

the United States as well so in this

video I'm going to explain what is going

on with Germany is it a potential

warning sign of what's to come in

America what could it mean for American

GDP is it going to push us into a

recession and much more so let's get

into it so first Germany's experiencing

significant political upheaval following

the collapse of their coalition

government okay big words bottom line in

the United States we got Trump who's a

republican you got Congress that's not

led by Republicans you got supreme court

that's basically led by Republicans okay

so it's kind of like you got like a one

party rule it's a this is why people are

like man this is like G Jin ping over

here in other words like you've got

control Consolidated right well in many

other countries Germany being one of

them the way you actually run a

government is no one party really sweeps

instead you're kind of like all right

you know group a you guys got 20% of the

vote Group B you guys got 30% of the

vote or call it 35% for simple math and

then group uh c d e and f and g or

whatever you all got I don't know 5 10

15% of the vote whatever and what

happens then is you get little parties

that group up they form little teams and

then they come up with fancy little

phrases or or examples for each other

and we're like V the traffic light if

this inde ample they

say Okay um so that's what Germany did

they had elections and they put together

a coalition government known as the

traffic light and that's because of the

colors of the different parties the

green yellow and red essentially and

this traffic light failed the power went

out it just didn't work in other words

the coalition government to get over 50%

of votes to actually get get things done

collapsed why did it collapse well

because politicians wanted more money

Olaf Schult is like they need to

suspend

zza the brza is is basically a break uh

they have sort of like we have a debt

ceiling they have something called a

debt break uh and they're like look

Schulz says we've got a lot of

priorities here we got a lot of work to

get done we need you to suspend the debt

limit otherwise you're fired and this

was with another Coalition member

specifically Christian Lindner the

Finance

Minister he is the leader of the free

Democratic party and uh linders lindler

lindler basically said no it's kind of

like hey Jerome Powell you want to step

down no will you lift the debt break no

but

no uh and Olaf Schulz is like well I am

the chancellor so you are

fired and the other dude's like V and

you don't have a coalition

government in other words now you go

back to the chancellor being part of the

minority can't get anything done so the

Chancellor's like fine I will hold hold

a vote of confidence to see if the

people support me and the answer is they

won't cuz you don't have a majority

government anymore so you're going to

get fired and you're not going to be

Chancellor anymore where's Mama Merkel

when you needer uh anyway actually the

CDU might come back into Power after all

of this that's the Christian Democratic

Union anyway uh this has a lot of

implications for the European stock

market the United States stock market

but I think it's

worth understanding some numbers first

and where this is all coming from and

and and why the Germans wanted more

money as well uh first let's just

briefly understand the connection

between the United States and Germany

just Germany alone causing problems

probably isn't a massive issue you know

Germany itself which it probably is is

on the borderline of a recession

and is probably not that big of a deal

uh I mean for the Germans it's going to

hurt but it probably doesn't hurt the

United States so much it's more so that

the United States trades a lot with the

entire Euro Zone and so the strongest

member of the Euro Zone Germany uh you

know collapsing well not collapsing but

but having problems is going to weigh

down the entire Euro Zone which could

then weigh down trade with Greece and

France and otherwise that is is

conducted with the United States the

United States uh we let's put it this

way the United States makes up of about

20% of the all of the Euro Zone exports

and we import out of a total of all of

our Imports about 17% from Germany in

total our trade with the Euro Zone makes

up about 5% of GDP so if our trade with

the Euro Zone drops the entire Euro Zone

by 30% it could lower our GDP by 1 and a

half% think about that 5% of

GDP is trade with the Euro Zone 30% drop

because of some recession or disaster or

whatever you lower our GDP by 1 and a

half% I'm not saying we're going to see

a 30% drop you know even even a 10% drop

would be a

problem but it's it's all of these

things that start contributing to

recessionary concerns you know if you

had one part of the world that was

trading so much with the United States

and we had so much growth then we'd be

less worried about a recession because

you'd actually be going in the opposite

direction but this is contributing to

pain and slowdown uh or the Slowdown

that we've been seeing in the United

States so far now sure we're still

propped up by artificial intelligence

but if you haven't seen my video yet on

artificial intelligence this morning uh

and at least what you know what people

are doing to try to expose open Ai and

some of the pain that you're getting

with Gemini and Claude I highly

encourage you watch that artificial

intelligence video it's on the channel

here meet Kevin you know you know me I'm

going to cover it TCH artificial

intelligence politics Finance whatever

I'll give you my opinion on it but I

want you understand this uh we have

Germany's coalition government that is

now essentially collapsed and this

leaves a lot of issues on the table

where people are like oh you know we

don't know what's going to happen now

some of the issues in include the uh

deuts land ticket which was basically a

58 per month ultimate travel pass to

ride trains and public transit

throughout the entire country of Germany

for $58 a month it sounds pretty

freaking cheap but anyway while it's

popular it costs one and A5 billion EUR

and they need an agreement on that

that's probably dead now the SPD had a

plan for a guaranteed minimum pension of

48% that's probably going to get dropped

now there is support for Ukraine that is

a big priority but that might get

dropped too because now you don't have a

government that could actually pass

anything there were plans to pass laws

promoting hydrogen ready power stations

because you know in order for people to

actually want to buy hydrogen cars you

kind of need hydrogen gas stations first

otherwise people are like dude I ain't

driving an hour to fill up my hydrogen

car with hydrogen oops uh anyway then uh

you have a 2025 budget that probably

won't get passed before these snap

elections are going to be held we'll

talk about the elections in just a

moment uh and the new Finance Minister

confirmed that it's unlikely we're going

to get much done between now and when

elections are completed oops uh you've

also got uh Germany that needs to

continue funding their military develop

deployments like they're deployed in

Lithuania right now uh they are also

deploy well that's the Eastern flank

right against Russia uh they're

supporting Ukraine they've got us and

peacekeeping contributions they they

spent a lot of money okay the problem is

some people are wondering is this sort

of inversion that you're getting in the

bond market a sign of true uh fiscal

pain in in other words the government

like just failing to put money uh or how

should I put it uh failing to control

their fiscal

expenditures right uh is this a problem

of the government just failing in that

regard

or is the market starting to price in

real recessionary concerns not just

spending concerns see if all of the

spending that I just listed is not a

problem

anymore then the bond market should be

happy but it's not it's actually

inverting it's it's providing issues

it's it's providing warning signals but

the government can't spend money now so

then that has people going okay well

maybe that's because there are more

serious economic issues and again that

could hurt the United States I mean

consider this for a moment Germany

hasn't really grown in real you know

inflation adjusted terms in 6 years this

is the second year of contraction that

you're likely in you've got cyclical

problems you've got structural problems

you've got demographic problems you've

got labor shortages you have car

manufacturing issues the debt break uh

you've got a lot it's also worth knowing

that while Morgan Stanley thinks maybe

we finally hit a bottom in the Autos

Market in Germany and some people are

like oh maybe maybe I should buy Z dip

on uh you know Volkswagen after all

Volkswagen just invested like $800

million into rivan and it's leading

rivan stock to pop and people are like

Yay rivan is going to do well I mean

rivan's up 177% today remember if you

want to trade on on on Weeble remember

you can always hop in to metkevin.com

Weeble and you'll get some free stocks

just for signing up again paid promotion

on that channel uh but anyway let's

let's keep going here look at Volkswagen

for a moment

Volkswagen

Volkswagen they cut their annual Outlook

again their profit margins are now just

5.6% versus 6 and 1 12 to 7% where we

previously sat Tesla's at like 18%

margins okay so Tesla's just absolutely

freaking smoking them smoking uh sales

are expected uh to be down about 7even

of a percent from their prior forecast

where they were expecting actually some

growth and and Mercedes and BMW have

also been downgraded because of weak

China demand also Chinese competition

that you're now getting in Europe and

the Europeans are like oh the Chinese

are taking all of our work and oh these

Chinese cars they're actually good

quality huh interesting maybe we should

consider a Chinese vehicle for our

family or household you know these these

are all sort of considerations that are

going on in Europe right now and it's

kind of important to think about these

but Volkswagen is also now asking its

workers to basically ex voluntarily

accept wage

deflation uh hate saying that but it's

true wage deflation uh would be a

Volkswagen asking them all to take a uh

what do we got here to take a

10% wage cut yikes uh Q3 profit down 42%

also yikes not great workers have

actually been demanding a pay raise not

a pay cut uh but that doesn't seem like

it's going to be going anywhere because

uh well Volkswagen can't compete that's

why they're making a YOLO bet on rivan

they're like all right well if we're

going to get taken out by the EVS then

then uh let's at least uh hopefully be a

part of uh uh the the solution and U

make a YOLO B over there right anyway uh

management says labor costs reductions

are needed for competitiveness Germany's

trying to figure out what to do with

their pension plans sounds a lot like

Social Security and the problems you

have out here uh but anyway consider

this when when you put all this together

for a moment you have a country that is

it's like one of its main core

Industries auto manufacturing is getting

whacked by Chinese competition and

higher costs pensions and unions that

are making it harder for the companies

to adapt which is potentially leading to

up to three plant closures and thousands

of worker layoffs which isn't great

obviously for workers uh and then you're

sitting in what could potentially be a

recessionary environment which some are

saying is going to lead to a rise of the

right the Rd is going to take over uh

now some people really want them to take

over they're seeing as sort of more of a

anti-immigration

uh right-wing some people say far

right-wing party but you know what there

are a lot of Germans my father included

who I generally see as very neutral

they're like you know what we need to

stop spending ridiculously like drunken

Sailors and maybe we actually can focus

on growing the econom

with things that are going to make sense

for growth not more handouts or

giveaways uh one of the examples of a

handout or giveaway that he was talking

about is he was talking about how

Germany actually at one point had a plan

uh and and they may have actually

executed on on at least part of this but

they actually had a plan to spend money

Building green bike paths uh in Peru

uh I kid you not I'm just going to I

actually I tweeted this a few days ago

because I thought it was so mindblowing

uh this is from the German government

okay so you could see this directly from

them and listen to what they

say uh Chancellor Merkel and and Schulz

made these commitments okay great so

what are you going to do we're going to

create bicycle highways in one of South

America's biggest and fastest growing

cities these will have multiple benefits

if greenhouse gases are uh green

greenhouse gas emissions are reduced in

Peru because people will use our fancy

bike lanes that will spend millions of

dollars or millions of Euros on then

this is just as important for the people

in Germany as climate action at home

because in the long run a cleaner

climate in Peru will help our climate in

Germany okay yeah so they're going to

spend millions of dollars building clean

bike paths in Peru to try to help the

climate in

Germany yes so so I don't blame some

Germans who are like bro we're done

we're not willing to support this sort

of drunken sailor spending anymore no

thanks we're out of here so anyway

that's what's going on in Germany and

again can it affect the United States of

course the answer here is abso freaking

lutely and that's the scary part is

Germany goes poopy doopy could start

really Weighing on International Trade

then it hits us where it hurts which is

GDP and if we start adding to that the

layoffs that we might be getting in the

United States soon it's just a bad

potential recipe for disaster we are

clearly no longer in a growth cycle we

are in a contraction cycle in Germany is

pretty a good example of that now we'll

see what the Trump Administration and

leaders in the United States can do but

for now a lot of people concerned about

Germany and hopefully this catches you

up now I do want to quickly also just

mention when these elections are uh

because I think that's uh useful

information to know and I said I was

going to cover it uh so uh first you're

going to have a vote of confidence the

vote of confidence is really just a way

of saying okay do we you know can can we

keep going with the coalition government

or lack of you know the minority

government that you basically have right

now uh and the answer to that is

probably going to be no uh so the

current plan uh is to have a vote of

confidence uh in either December or

January probably December at this point

and then you'll have an actual snap

election tentatively set for February

23rd uh and then you would essentially

be able to determine okay who has the Le

leadership who has assigned votes then

you can come up with new um uh Coalition

governments essentially so the original

confidence vote was scheduled for Jan

16th uh and that's because Schultz had

hoped that he could still actually get

work done but that got moved up to

December 16th at the moment uh and if he

fails that confidence vote Parliament

will be dissolved they'll have a new

government February

23rd and it's possible that Schultz with

the social Democrats and the green party

might be able to work with the CDU to

get proposals done unless of course the

CDU tries to align with the linders and

the others uh in in which case uh

Schultz might just um have lost all his

power now he ended up by the way blaming

Lindner saying he was Lindner was being

selfish and focusing too much on his

party policies and politics over the

success of

Germany I don't know a lot of people on

both sides of this one going yeah but

you know they're also kind of tired of

the spending so I don't know let me know

what you think in the comments down

below thank you so much for watching

this breakdown on what the heck is going

on in D vand not advertise these things

that you told us here I feel like nobody

else knows about this we'll we'll try a

little advertising in see go

congratulations man you have done so

much people love you people look up to

you Kevin P there financial analyst and

YouTuber meet Kevin always great to get

your take