by Martin Armstrong, Armstrong Economics:

Germany was once considered the industrial engine of Europe. Today, ordinary Germans are increasingly feeling their economic model breaking down in real time as living costs rise, industry weakens, and confidence in the future deteriorates rapidly. The political establishment still talks about “green transitions” and economic resilience, but households across Germany are experiencing something entirely different underneath the surface.

Recent polling from INSA found that nearly 70% of Germans believe the country is heading in the wrong economic direction, while consumer confidence remains near recessionary territory despite years of government stimulus and intervention. Another survey found that over 40% of Germans now say they cannot maintain their previous standard of living because of rising costs tied to food, housing, electricity, transportation, and heating. The middle class is being steadily eroded.