The first suffering of Christ we must experience is the call sundering our ties to this world. This is the death of the old human being in the encounter with Jesus Christ. Whoever enters discipleship enters Jesus’ death, and puts his or her own life into death; this has been so from the beginning. The cross is not the horrible end of a pious, happy life, but stands rather at the beginning of community with Jesus Christ. Every call of Christ leads to death. Whether with the first disciples we leave home and occupation in order to follow him, or whether with Luther we leave the monastery to enter a secular profession, in either case the one death awaits us, namely death in Jesus Christ, the dying away of our old form of being human in Jesus’ call.
”¦.Those who are not prepared to take up the cross, those who are not prepared to give their life to suffering and rejection by others, lose community with Christ and are not disciples. But those who lose their life in discipleship, in bearing the cross, will find it again in discipleship itself, in the community of the cross with Christ. The opposite of discipleship is to be ashamed of Christ, of the cross, and to take offense at the cross. Discipleship is commitment to the suffering Christ.

–Dietrich Bonhoeffer, Meditations on the Cross (Louisville: John Knox Press, 1998 [trans Douglas Stott]), pp. 14,16

Lionel Messi scored five goals, a Champions League record, as Barcelona thrashed Bayer Leverkusen 7-1 at the Camp Nou to win their last-16 tie 10-2 on aggregate.

Messi netted with two lobs, a fine low drive, a close-range finish and a long-range screamer to make history for the umpteenth time in his short career.

Read it all.

Chancellor Angela Merkel’s Berlin republic is a European Germany, in the rich, positive sense in which the great novelist had come to use the term. It is free, civilized, democratic, law-bound, socially and environmentally conscious.

It’s far from perfect, obviously, but as good as any other big country in Europe ”“ and the best Germany we’ve ever had.

Yet because of the crisis of the euro zone this European Germany finds itself, unwillingly, at the centre of a German Europe. No one can seriously doubt that Germany is calling the shots in the euro zone. The reason there is a fiscal compact treaty agreed by 25 European Union member states is that Berlin wanted it. Desperate, impoverished Greeks are being told “do their homework” by Germans. More extraordinary still, the German Chancellor is now telling French voters who to vote for in their own presidential election, through a series of campaign appearances with President Nicolas Sarkozy. Everyone says Europe is being led by “Merkozy” but the reality is more like “Merkelzy.”

Read it all.

Speakers at the annual National Prayer Breakfast in the nation’s capital usually keep their talks diplomatic. After all, the room is filled with ambassadors, lawmakers from both parties, Cabinet members, and people of various faiths from around the world.

But Eric Metaxas, the featured speaker Thursday morning and the author of biographies on Dietrich Bonhoeffer and William Wilberforce, talked to an audience of 4,000 important people about false religion, human depravity, poverty, slavery, and abortion. But the New York author delivered his sharp commentary with his trademark wit, which kept the audience roaring with laughter. [There is a link provided for video of the event]

The halls of the Washington Hilton, the hotel that hosts the breakfast, were buzzing afterward as people discussed the speech””Metaxas’ speech, not President Obama’s, which followed. Outside the hotel, a protestor asked, “Is it true what I’m hearing, that Eric Metaxas talked about Jesus?”

Read it all.

If there was one recurring theme during Nicolas Sarkozy’s live prime-time television interview last night, it was the French president’s obsession with Germany. In an appearance that lasted just over an hour, watched by a massive 16m viewers, Mr Sarkozy repeatedly held Germany up as a model for France, which is still reeling from the loss of its triple-A credit rating at the hands of Standard & Poor’s earlier this month.

Read it all.

Every summer, Volkmar and Vera Kruger spend three weeks vacationing in the south of France or at a cool getaway in Denmark. For the other three weeks of their annual vacation, they garden or travel a few hours away to root for their favorite team in Germany’s biggest soccer stadium.

The couple, in their early 50s, aren’t retired or well off. They live in a small Tudor-style house in this middle-class town about 30 miles northwest of Frankfurt. He’s a foreman at a glass factory; she works part time for a company that tracks inventories for retailers. Their combined income is a modest $40,000.

Yet the Krugers have a higher standard of living than many Americans who have twice that income.

Read it all.

Investors in Europe are so worried about the euro crisis and so desperate to find a safe haven for their cash that they decided to forego an interest rate, and even paid a premium, for the privilege of lending Germany money on Monday.

The auction of six-month German government bills on Monday produced a negative interest rate. Even the Federal Finance Agency, which manages Germany’s debt, was astonished. “That has never happened before,” said a spokesman.

Read it all.

A Berliner and longtime member of St. Mary’s church choir, Christian Beier attempts to explain the mystique and tradition behind this piece of music….

“It makes Christmas Christmas,” he adds with a chuckle.

But as gorgeous as the music is for Beier, the core of this yearly event is something deeper.

“It is getting into some dialogue with God. It is being moved by whatever is around us,” he says.

Read or listen to it all (audio for this highly encouraged).

One wishes that financial investors were made of the same stuff as German Chancellor Angela Merkel. With virtually the entire world convinced that the euro zone has not done enough to save the common currency, Merkel remains stoic in the face of demands to erect a gigantic firewall. On Thursday, she ruled out increasing the size of the permanent euro backstop fund, the European Stability Mechanism, beyond the currently planned €500 billion ($648.5 billion).

“The German government has always made it clear that the European debt crisis is not to be solved with a single blow,” she told German parliamentarians one day earlier. She said that overcoming the debt crisis would take years and made a plea for patience and endurance.

It would appear, however, that not many are listening. This week has seen several indications that financial markets are by no means impressed with the results of last week’s European Union summit….

Read it all.

We Jjouranlists are probably too bleary-eyed after a sleepless night to understand the full significance of what has just happened in Brussels. What is clear is that after a long, hard and rancorous negotiation, at about 5am this… [past Friday] the European Union split in a fundamental way.

In an effort to stabilise the euro zone, France, Germany and 21 other countries have decided to draft their own treaty to impose more central control over national budgets. Britain and three others have decided to stay out. In the coming weeks, Britain may find itself even more isolated. Sweden, the Czech Republic and Hungary want time to consult their parliaments and political parties before deciding on whether to join the new union-within-the-union.

So two decades to the day after the Maastricht Treaty was concluded, launching the process towards the single European currency, the EU’s tectonic plates have slipped momentously along same the fault line that has always divided it””the English Channel.

Read it all.

Hyperinflation didn’t lead to the rise of Hitler, but it undermined the legitimacy of the democratic Weimar Republic.

Millions of disaffected middle-class voters soon drifted to various splinter parties on the right. The center hollowed out, and subsequent coalition governments ruled on a tolerated-minority basis. German politics never really regained its balance in the mid-1920s, a time of relative economic stabilization — and then came the Great Depression, government austerity packages and, ultimately, the rise of the Nazis.

Never again, the thinking goes today. And rightly so. But the fate of the euro zone depends on which historical lesson one draws from this episode. Are there circumstances in which monetizing government debt is appropriate — or not?

Read it all.

So far, though, Germany is resisting calls to allow the European Central Bank to conduct unrestricted purchases of government bonds issued by ailing euro-zone countries in order to push their borrowing costs down to sustainable levels.

It also remains opposed to jointly issued euro bonds. Its arguments are that the measures would remove the incentive on high-debt nations to get their budgets in order, would stoke inflation and would end up costing Germany too much.

Read it all.

Germany is the only country in Europe that can act to save the eurozone and the wider European Union from “a crisis of apocalyptic proportions”, the Polish foreign minister warned on Monday in a passionate call for more drastic action to prevent the collapse of the European monetary union.

The extraordinary appeal by Radoslaw Sikorski, delivered in the shadow of the Brandenburg Gate in the German capital, came as the Organisation for Economic Co-operation and Development called on European leaders to provide “credible and large enough firepower” to halt the sell-off in the eurozone sovereign debt market, or risk a severe recession.

Read it all (subscription required).

Even as the euro zone hurtles towards a crash, most people are assuming that, in the end, European leaders will do whatever it takes to save the single currency. That is because the consequences of the euro’s destruction are so catastrophic that no sensible policymaker could stand by and let it happen.

A euro break-up would cause a global bust worse even than the one in 2008-09. The world’s most financially integrated region would be ripped apart by defaults, bank failures and the imposition of capital controls….The euro zone could shatter into different pieces, or a large block in the north and a fragmented south. Amid the recriminations and broken treaties after the failure of the European Union’s biggest economic project, wild currency swings between those in the core and those in the periphery would almost certainly bring the single market to a shuddering halt. The survival of the EU itself would be in doubt.

Yet the threat of a disaster does not always stop it from happening. The chances of the euro zone being smashed apart have risen alarmingly, thanks to financial panic, a rapidly weakening economic outlook and pigheaded brinkmanship. The odds of a safe landing are dwindling fast.

Read it all.

One day near the middle of the last century a minister in a prison camp in Germany conducted a service for the other prisoners. One of those prisoners, an English officer who survived, wrote these words:

“Dietrich Bonhoeffer always seemed to me to spread an atmosphere of happiness and joy over the least incident, and profound gratitude for the mere fact that he was alive”¦ He was one of the very few persons I have ever met for whom God was real and always near”¦ On Sunday, April 8, 1945, Pastor Bonhoeffer conducted a little service of worship and spoke to us in a way that went to the heart of all of us. He found just the right words to express the spirit of our imprisonment, and the thoughts and resolutions it had brought us. He had hardly ended his last prayer when the door opened and two civilians entered. They said, “Prisoner Bonhoeffer, come with us.” That had only one meaning for all prisoners”“the gallows. We said good-bye to him. He took me aside: “This is the end; but for me it is the beginning of life.” The next day he was hanged in Flossenburg.”

I read it every year on this day and every year it brings me to tears–KSH.

In one of the least successful debt sales by Europe’s powerhouse economy since the launch of the single currency, the low returns offered – just 2pc annually over 10 years – deterred investors made uneasy by the escalating cost of the crisis to Germany.

That meant the central bank had to pick up 39pc of the €6bn (£5.2bn) of debt Germany had hoped to sell after commercial banks bought just €3.644bn of the issue.

“It is a complete and utter disaster,” said Marc Ostwald, strategist at Monument Securities in London.

Read it all.

Banks clamored for emergency funds from the European Central Bank on Tuesday, borrowing the most since early 2009 in a clear sign that the euro region’s financial institutions are having trouble obtaining credit at reasonable rates on the open market.

Indebted governments among the 17 members of the European Union that use the euro are also finding it harder to borrow at affordable rates as investors lose confidence in their creditworthiness.

Read it all.

Only the fiercely conservative stewards of the European Central Bank have the firepower to intervene aggressively in the markets with essentially unlimited resources. But the bank itself, and its most important member state, Germany, have steadfastly resisted letting it take up the mantle of lender of last resort.

European politicians and analysts say that unbending stance now threatens the survival of the euro and the broader integration of Europe itself.
“There is no solution to the crisis without the E.C.B.,” said Charles Wyplosz, a professor at the Graduate Institute in Geneva and co-author of a standard textbook on European integration. “The amounts we are talking about are too big for anybody but the E.C.B.”

At issue is whether the bank has the will ”” or the legal foundation ”” to become a European version of the Federal Reserve in the United States, with a license to print money in whatever quantity it considers necessary to ensure the smooth functioning of markets and, if needed, to essentially bail out countries that are members of the euro zone.

Read it all.

Critics say Germany is falling between two stools. It has backed EMU rescues on a sufficient scale to endanger its own credit-worthiness, without committing the nuclear firepower needed to restore confidence and eliminate default risk in Spain and Italy. It would be hard to devise a more destructive policy.

There is no change in sight yet. Chancellor Angela Merkel repeated on Thursday that Germany would not accept joint EU debt issuance or a bond-buying blitz by the ECB. “If politicians think the ECB can solve the euro’s problems, they’re trying to convince themselves of something that won’t happen,” she said.

Yet she offered no other way out of the logjam, and each day Germany is sinking a little deeper into the morass.

Read it all.

Virtually nothing is more sacred to Germans than their constitution, which is known as the Basic Law. It was originally planned as a stopgap measure, but it has seen the Federal Republic of Germany through the past 62 years. During the Cold War, political parties may have squabbled over conservative Chancellor Konrad Adenauer’s political commitment to Western Europe and the United States — and they had their differences over left-leaning Chancellor Willy Brandt’s Ostpolitik policy of normalizing relations with communist Eastern Europe, particularly with East Germany — but they immediately and unanimously praised the Basic Law. “We have one of the best constitutions in the world,” German Chancellor Angela Merkel once said.

Now, it looks as if Merkel herself may order an overhaul of the German constitution. At the party conference of the chancellor’s conservative Christian Democratic Union (CDU) which commenced on Monday morning, Nov. 14, it is expected to approve a plan that could change the face of Europe — and perhaps make it necessary for the Germans to rewrite their constitution.

Read it all.

For the second time in two years, European debt troubles threaten to slow the momentum of the fragile recovery in the United States.

Although American financial institutions have taken steps to protect themselves from Europe’s long-simmering problems, the likely slowdown in Europe could damage consumer and business confidence in America and strengthen the dollar, making United States exports less competitive.

“Financial contagion can lead to the very rapid global spread of recession,” said Chris Varvares, senior managing director for Macroeconomic Advisers, a forecasting company. “If trouble intensifies and spills over to equities and other U.S. risk assets, we could see a soft patch.”

Read it all.

Obama, at any rate, felt that they would have little value. Instead, he confronted the Germans in Cannes with a suggestion so radical that it alarmed both Merkel and Schäuble. To save the common currency, Obama proposed that the Europeans follow the example of the American Federal Reserve, which buys up almost unlimited amounts of US treasury bonds when necessary.

The Germans pointed out feebly that the ECB operates within a completely different tradition than the Fed, and that it also pursues a different mission. But it is becoming increasingly clear to Merkel and her finance minister that, in the end, only the ECB will be able to save the euro if the crisis continues to escalate. It is the only European fiscal policy institution capable of taking action, and it also comes equipped with unlimited firepower. It can never run out of money, because it can simply print new money when needed.

This is an approach Germany’s representatives in the ECB council have strongly resisted….But how long can the Germans resist the pressure from other members?

Read it all.

Check it out.

Many of the proposals, which were compiled by a special church commission, seem in keeping with Christian mores: no investing in companies that manufacture guns or pornography; avoid investing in countries that are considered dictatorships or that present a risk to the environment.

The guidelines say investing in the alcohol industry is appropriate, so long as the beverages contain no more than 15 percent alcohol by volume.

Read it all.

In response to the package, the bond market has not changed its tune. The new 50% “haircut” to private sector investors in Greece hasn’t altered the conviction of traders that the troubles in Athens will inevitably be contagious. Pricing of Spanish, Italian and even French bonds reflect this pessimistic outlook.

Europe’s politicians are aware of what the markets have long known: Patches are destined to fail. But the urge to pass the hot potato without instituting meaningful structural change is, evidently, irresistible. So instead of muscular reforms, we see the same unsuccessful rescue packages supersized. Sunny optimism and mutual back-patting continue, paired with pep talks from the rescue fund controllers at the International Monetary Fund and the World Bank.

The latest steps don’t end the Greek crisis. A Eurozone-wide problem requires a Eurozone-wide solution. The European Central Bank should be creating something along the lines of the U.S. TARP program, buying bonds to calm the volatility until a bold, permanent solution is crafted. Greece and the rest of Europe would ultimately survive the disintegration of the Eurozone and the death of the euro. But the end of a unified Europe would leave the entire world poorer.

Read it all.

Americans must not be smug about the suffering of Europeans””our financial system is thoroughly integrated with theirs. Moreover, the International Monetary Fund will most likely be involved in the event of future bailouts and will likely need large funds from its members, which ultimately means the taxpayers.

And, of course, the U.S. has its own large and growing public debt burden. We have not gone as far down the road to entitlements, but we are catching up. If you want to know how the debt crisis will play out here, watch the downward spiral in the EU.

Meanwhile, expect more volatility in financial markets. U.S. traders in particular simply have not grasped the enormity of the EU debt crisis.

Read it all.

The crisis of the euro zone has finally hit the potholed road of real politics, with the Greeks now openly questioning whether their commitment to Europe and its single currency still matters more to them than control over their own future and economic well-being.

During the two-year financial crisis, the wealthier countries of northern Europe, led by Germany, have insisted that their heavily indebted brethren in the south radically cut spending in return for emergency loans. They have stuck to that prescription even though austerity has undermined growth and increased unemployment in Greece, Spain, Portugal and now Italy, betting that people in those countries will swallow the harsh medicine because their only alternative is to default and possibly leave the euro zone altogether.

The turmoil in the government of Prime Minister George A. Papandreou means that Greece is about to call that bet. Many Greek politicians appear to be calculating, at this late stage, that they have more to lose by sticking to Germany’s terms than by risking a messy default, and even going it alone with their old currency, the drachma, outside the euro zone.

Read it all.

Germans expressed fury and frustration at Greek Prime Minister George Papandreou’s shock decision to call a referendum on the latest aid package, with some saying the gamble would push Greece out of the euro zone.

“You can’t help thinking that they should be grateful as Europe is trying to help,” said Konstanze Pilge, a 26-year old student, walking near the Brandenburg Gate in central Berlin. “Now it looks like they are going to mess things up.”

Papandreou dropped his bombshell on Monday evening, less than a week after European leaders agreed the outlines of a second bailout for Athens.

Read it all.

…the real drama Thursday was in the meeting with the bankers, held in the offices of Herman Van Rompuy, the president of the European Council, in the huge modern building here where the summit meeting was being held. Besides Mr. Van Rompuy, Mrs. Merkel and Mr. Sarkozy, others present were Christine Lagarde, the former French finance minister who runs the International Monetary Fund; José Manuel Barroso, president of the European Commission; and Jean-Claude Juncker, chairman of the euro zone finance ministers.

While they gave in, the bankers, represented by Charles Dallara, managing director of the Institute of International Finance, praised the deal. Later on Thursday, he explained to reporters that the bankers, too, were frightened of setting off a credit event, activating credit default swaps and other complex financial instruments, with unclear but potentially dire consequences for the global financial system.

“We attached a great deal of significance to this being voluntary,” Mr. Dallara said. “We knew what it would take in our mind in terms of the basic elements to be voluntary. It was not at all times clear through the negotiations that all parties placed the same priority on this being voluntary,” he said, an indirect reference to the German chancellor.

Read it all.

As Sir John Major wrote this morning in the FT, this does not solve EMU’s fundamental problem, which is the 30pc gap in competitiveness between North and South, and Germany’s colossal intra-EMU trade surplus at the expense of Club Med deficit states.

It is therefore unlikely to succeed. It means that Italy, Spain, Portugal, et al must close the gap with Germany by austerity alone, risking a Fisherite debt deflation spiral. As I have written many times, this is a destructive and intellectually incoherent policy, akin to the 1930s Gold Standard. It risks conjuring the very demons that Mrs Merkel warns against.

Read it all.