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Title: Germany Playing Kissy-Face With IranÂ’s Mullahs Is Going To Cost German Companies Plenty
Source: RedState
URL Source: https://www.redstate.com/streiff/20 ... -cost-german-companies-plenty/
Published: May 25, 2018
Author: streiff
Post Date: 2018-05-26 01:30:35 by Tooconservative
Keywords: None
Views: 2229
Comments: 23

I’ve posted a few times on the efforts on the part of some European countries, Germany, in particular, to continue to trade with Iran despite US sanctions (see here | here). This, of course, is nonsense. German, and European, companies that are hit with sanctions are cut off from US markets and, more importantly, their bankers are subject to sanctions, too. Two important things happened today that, hopefully, will hammer home to Europe that their plan to resist US sanctions on Iran won’t work.

First, we have Ambassador Richard Grennell. Grennell, you’ll recall, is the guy who gave the Washington Post a brief bout of fecal incontinence when he tweeted, shortly after confirmation:
As @realDonaldTrump said, US sanctions will target critical sectors of Iran’s economy. German companies doing business in Iran should wind down operations immediately.

— Richard Grenell (@RichardGrenell) May 8, 2018

Tonight Grennell was on Fox and he reiterated that warning, only in much more stark terms:
The awesome Amb. Richard Grenell lays down the law: Companies can either "choose to do business with the United States, or they can choose to do business with Iran; but they're not going to be able to do both." pic.twitter.com/Cx0plpYJad

— Josh Caplan (@joshdcaplan) May 25, 2018

Also today, Saudi Arabia declared that German firms are ineligible for government contracts:
Saudi Crown Prince Mohammed bin Salman has ordered that no more government contracts be awarded to German companies, in a sign of continued irritation over Berlin’s foreign policy in the Middle East, German magazine Der Spiegel reported on Friday.

Citing no sources, it said the move was likely to hit major companies such as Siemens (SIEGn.DE), Bayer (BAYGn.DE) and Boehringer Ingelheim as well as carmaker Daimler (DAIGn.DE).

Relations between Germany and Saudi Arabia have been strained, and Saudi Arabia last year summoned its ambassador in Germany home for consultations over comments by then-Foreign Minister Sigmar Gabriel about the political crisis in Lebanon.

Saudi Arabia is a significant trade partner for Germany, generating 2017 exports worth 6.6 billion euros ($7.7 billion), according to Germany’s statistics office.

Siemens last year won an order worth around $400 million to deliver five gas turbines for a combined heat and power plant being built in Saudi Arabia. Daimler soon after secured an order for 600 Mercedes‑Benz Citaro buses from Saudi bus operator SAPTCO.

A senior German businessman in Saudi Arabia, who asked to remain anonymous, told Reuters on Friday that especially the healthcare sector was currently feeling added scrutiny when applying for Saudi tenders.

“They have even been asking: Where are the products coming from? Are they made in Germany? Do you have other manufacturing sites? And as soon as this is made in Germany, they have been rejecting any German applications for tender,” the person said.

This is a tightening of screws on the EU. Not only will companies be cut off from US markets but the Saudi market will be off limits as well. Unless they are willing to accept Iran as their only trading partner, they have to fall in line.


Poster Comment:

LF's contingent of America-haters and EUroweenies will be inconsolable.

If the Saudis are onboard for a German boycott, so are the rest of the Gulf oil states (other than Qatar).

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Begin Trace Mode for Comment # 21.

#1. To: Tooconservative (#0)

Interesting development.

The way this game will play out is fairly clear.

Vicomte13  posted on  2018-05-26   6:37:16 ET  Reply   Untrace   Trace   Private Reply  


#3. To: Vicomte13, Tooconservative, Pinguinite, sneakypete, Vicomte13, Deckard (#1) (Edited)

Interesting development.

Plot thickens.

Iran lists demands for staying in nuclear deal :

"Iran has said it will decide in the next few weeks whether to pull out of the nuclear deal signed in 2015 and start enriching uranium capable of making a nuclear bomb."

"Tehran officials said the EU would need to present a credible compensation package by the end of the month to make up for the loss of income to Iran caused by the US sanctions."

A Pole  posted on  2018-05-26   7:45:21 ET  Reply   Untrace   Trace   Private Reply  


#14. To: A Pole (#3)

There's a limit to how far countries can be pushed to do things they don't want to do, and Putin will do whatever he can to exploit that sentiment. Germany may find they have a better friend in Russia than they do in the USA.

Pinguinite  posted on  2018-05-26   11:22:01 ET  Reply   Untrace   Trace   Private Reply  


#15. To: Pinguinite (#14)

Germany may find they have a better friend in Russia than they do in the USA.

Yea Germany should do business with Russia instead of the U.S.A.. They will get rich doing that. I mean Russia's economy is so much more important.

A K A Stone  posted on  2018-05-26   12:50:09 ET  Reply   Untrace   Trace   Private Reply  


#19. To: A K A Stone (#15)

Yea Germany should do business with Russia instead of the U.S.A.. They will get rich doing that. I mean Russia's economy is so much more important.

Certainly Russia's economy is not huge, but they do have heating oil which Germany needs. The main point is though that where there's a will, there's a way, and by pissing off allies like Germany, by trying to strong arm them into doing something they don't want to do, the US is providing that will. And it's not just Russia on the other end of the playing field. It's any and every country that the US has an adversarial relationship with.

I do think it's pathetic when people start cheering on a bullying country only because they happen to be a proud member of it. There is strong, and there is weak, and there is right and there is wrong. And forcing other countries to do something they don't want to do is wrong, in spite of whatever power one has to do it.

The huge national debt of the USA makes its economy fragile, and Congress by it's very nature is unable to reverse it's growth.

Pinguinite  posted on  2018-05-26   20:50:09 ET  Reply   Untrace   Trace   Private Reply  


#21. To: Pinguinite (#19)

The huge national debt of the USA makes its economy fragile,

All of the other world economies are even more fragile.

We should pay off the Chinese in blue money then cancel the blue currency. Or at least make it only redeemable in the USA by the original receiver of the blue money. Anyone else tries to spend it and it is void.

A K A Stone  posted on  2018-05-26   21:19:11 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 21.

#22. To: A K A Stone (#21)

All of the other world economies are even more fragile.

I would disagree with that with little consideration. But perhaps "fragile" should be defined.

There are strong economies, and there are weak economies. The strength or weakness of an economy is basically a measurement of how much people trade with each other. A place where everyone produces their own food, clothing and shelter and never trades would be a place where there is no economy at all. Call it 0%. On the other hand, a country where every person singularly produces a certain unique product or service that is used by all others in the country (such that if anything happened to that person, the entire country would then be devoid of that thing) it would have 100% economic efficiency.

Between these two hypothetical economies, the one that is stronger is also the one more fragile, as if something happens to 5% of the population, the entire country takes a hit, especially as in a complex economy, those 5% that disappeared provide goods & services that other segments of the population depend on to produce their goods. So killing off 5% of that economy could actually cause an extreme disruption for everyone.

On the other hand, in the weaker society that has no economy because everyone is self reliant, if you kill of 5% of that population, the 95% that remain wouldn't even feel it as they don't depend on others at all.

In this scenario, the stronger economy is the more fragile economy. It's a case of the more sophisticated something is, the easier it is to break. Simple (3rd world) economies, while not very efficient (economic) are much more robust and can survive a global crash much better that a sophisticated economy like the US, which is much more subject to a cascading collapse in domino fashion in the event any single segment of the system fails.

Adding in the fact that the US national debt is about 120% of GDP, compared to Russia's 7%, I would say we are quite vulnerable, and it's virtually guaranteed that the national debt will not be paid down and will not remain the same. It will continue to go up. Our congressional system or representation by state pretty much guarantees that the reps there will always be incentivized to vote for pork of other states as long as the other state reps return the favor.

So no, the US economy is in fact the most fragile in the world, and having the huge debt makes that fragile economy vulnerable.

We should pay off the Chinese in blue money then cancel the blue currency. Or at least make it only redeemable in the USA by the original receiver of the blue money. Anyone else tries to spend it and it is void.

Depriving countries of their rightful wealth has historically been a cause of war, and understandably so. China came to own as much US debt as they do because of US undisciplined trade policy, granted in the face of Chinese control of the value of their currency. We've been all to happy to export printed cash in exchange for goods. The USA has essentially been on international welfare for the last 80 years, with the same results we typically see in individuals that over indulge in handouts.

Pinguinite  posted on  2018-05-27 01:57:25 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 21.

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