Star economist Hans-Werner Sinn explained world events at the University of Lucerne. Thousands were left in shock – all except Christoph Blocher.
The Institute for Swiss Economic Policy IWP at the University of Lucerne and the supporting circles of the right SVP had probably imagined things differently.
They once again invited German star economist Hans-Werner Sinn to give a lecture.
Switzerland swept under the carpet
But instead of speaking in their interests, the famous economic expert stabbed Switzerland’s right-wing circles in the back – several times – on the subject of Trump and the new international trade order as well as sovereign debt.
The audience of over 2,000 on Thursday evening – partly via video transmission because the room was too small due to the big rush of interested people – noticed this right from the beginning of the lecture.
Sinn explained the background to Trump’s trade war and how this will affect foreign trade. In doing so, the professor said that “Germany” subsumed the German-speaking world, including Switzerland, which visibly annoyed many in the gasping audience.
“Calligraphic products”
In addition to these minor gaffes, those present also rolled their eyes when Sinn praised Germany’s new gigantic national debt and propagated the “United States of Europe” as a solution to Trump’s attack on the global trading system.
The USA has always lived beyond its means. But foreign countries are actually financing this better life for them.
In return for imports from many countries, they simply paid with “calligraphic products”, as economist Sinn described the printed dollar money, and that made people laugh.
Large-scale US plan
The new strongman in the White House has to refinance gigantic US national debts this year, the amount of which expert Sinn illustrated with 36,000 Hamburg Elbphilharmonies for 1 billion each.
At the same time, creditors’ appetites for allowing the US to continue living on credit has recently waned. With the punitive tariffs on imports, Trump is effectively forcing the world to the negotiating table.
A country that has no manufacturing industry no longer has a war economy, explained the star economist. Trump wants to reindustrialize the USA in order to be able to play against Russia, China & Co. again.
The USA would use “public protection racketeering” as a means of exerting pressure, as recently witnessed in Ukraine.
The blockchain world is also conquering China much faster than the old dollar-swift transfer system. Even in the crypto world, Trump wants to regain the upper hand.
Recovery takes time
Sinn dispelled even the illusion among the audience, which included former Federal Councillor and SVP strategist Christoph Blocher, that the economic crisis instigated by Trump could soon be over.
The bursting of the dotcom bubble, the Asian and Lehman crises and the global economic crisis of 1930 each lasted almost three years. Only the coronavirus crisis was much shorter thanks to the vaccine, Sinn emphasized.
This statement also raised eyebrows in the room. A room in which many coronavirus vaccination critics were sitting.
Last but not least, Sinn also exposed the lobby groups in small countries that are implementing Trump-style protectionism, and many in the room may have felt caught out.
After monetary union also political union
Against all of Trump’s power games, Sinn suddenly found Germany’s gigantic new national debt, which bypasses the debt brake, to be a good thing. A comment that caused surprise in conservative circles.
However, the German star economist warned that the money should be used for ‘useful purposes’ and not distributed to the people.
Europe must also push ahead with political and defense unity as a counterweight to Trump, Sinn explained, emphasizing in the same breath that four weeks ago he himself would never have thought of making such a statement.
The unity of Europe had been brought about from behind with the euro. But now Europe could remedy this shortcoming with a common EU policy, the euro critic sensationally emphasized.
EU as a substitute identity
After all the positive news about greater national debt and strengthening the EU, there was a real sense of shock in the room.
Those present obviously realized that Switzerland hardly stood a chance in the new world if it were to go it alone.
But Blocher remained relaxed. In response to questions from muula.ch after the lecture, he said quite casually that Sinn was a German economist.
Politicians would see different approaches to solutions than economists. At the same time, Blocher emphasized that the Germans’ identity had been taken away from them after the Second World War and replaced by this EU idea.
Switzerland can pay for security
The SVP chief strategist was convinced that centralism always goes astray.
The former Federal Councillor added that the Americans had always ensured Switzerland’s security.
And if this now came at a cost, it would pose a problem for the country, the SVP chief strategist was convinced.
11.04.2025/kut./ena.
