Mish's Global Economic Trend Analysis

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Merkel Reaffirms "Refugees Welcome" Policy Over Her Own Party's Objections Posted: 05 Nov 2015 08:32 PM PST German chancellor Angela Merkel seems bound and determined to go out in flames due to her open arms welcoming of refugees. Earlier today Merkel Rejected German Plan for Refugee Transit Zones. Chancellor Merkel has rejected controversial plans for special transit zones for processing refugees on Germany's frontiers, defeating members of her own party who had called for tougher controls on asylum seekers. After weeks of tense negotiations within the ruling coalition, in which rightwing MPs even raised the possibility of building barriers on Germany's borders, Ms Merkel's government has opted instead for more modest proposals for locating the new facilities inside Germany. The deal is a victory for Ms Merkel's SPD social democratic coalition partners who opposed transit zones, condemning them as "uncontrollable detention zones". Ms Merkel emerges from the tussle with her "refugees welcome" policy broadly intact and her grip on the CDU-CSU alliance maintained, despite the strains between its left and right wings. The campaign for a tougher response to Europe's refugee crisis was led by Horst Seehofer, the CSU leader and Bavarian premier, who has hit out at Austria in recent weeks over a "lack of co-ordination" on the border with Germany. Refugees arriving in Germany will be filtered at the border under the new agreement. Those with strong claims to asylum, notably Syrians fleeing civil war, will be permitted, as now, to travel to a wide range of reception centres across the country. The agreement came as the latest figures showed 758,000 refugees had been registered in Germany so far this year, fuelling renewed concern for the country's capacity to cope. With 181,000 arriving last month alone, the government's 800,000 estimate for 2015 looks increasingly out-of-date, but ministers are refusing to raise the figure for fear of sending a signal to would-be migrants than Germany is opening its doors wider. "Refugees Welcome" Bear in mind the "transit zone" proposal was doomed to failure because it was far too weak to accomplish much good. But at least it was better that hanging out a "Refugees Welcome" sign complete with vouchers for free food and shelter. And note the ridiculous hope of not raising refugee estimates for fear that telling the truth would "send a signal". Refugees got all the "signal" they need from Merkel's inept policy. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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