This weekend's German election has some lessons for our political context. Der Speigel sees a new German political pattern emerging from this:

After Sunday's election, Germany's political landscape has been shaken up, perhaps for ever. Angela Merkel's conservatives will be able to form a coalition government with the business-friendly FDP, but the balance of power between the two parties has fundamentally shifted. And the once-powerful Social Democrats may never recover from their defeat.

Chancellor Angela Merkel has probably saved her chancellorship -- but the price that her conservatives will have to pay for it is high. The election result for the center-right Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), is lower than in 2005. Nevertheless, she can form a coalition government with the business-friendly Free Democratic Party because support for the FDP has increased in a way that until recently pollsters would scarcely have thought possible.

Just as in the European elections, we are seeing a splinter of the political scene. On the left, the far left gained, the Greens gain, the centrist-left collapsed, the center-right shrunk slightly, and the liberal party gained massively. The right (center-right + liberals) has grown, but not hugely.

Several things to take away from this in the time of an economic downturn:

First, the appeal of libertarian positions has grown. Even in Europe and Germany there has been an anti-government, anti-entitlement, pro-reform movement that is growing massively. We see this here in the tea party movement.

The response to the economic crisis has been more freedom and less government. Somehow government is getting the blame, at the ballot box, for the downturn.

Second, the center-left has lost credibility, but the numbers on the left are still large if you include the far-left. It is hard to imagine a victory of the German left without the Left Party, but it is also questionable whether this turns off swing voters between the center-right and center-left. Some on the American left will try to learn the lesson that they need to move to the left -- isn't that always the lesson? -- but one wonders if, like the SPD, the Democrats would suffer from highlighting their relationship with the far-left.

All in all, we are in a situation in which right-leaning parties are sweeping elections or performing at historic highs. These things happen in response to global events. It will be interesting to see if this pattern continues into the next year. 

 At 9:18 Friday night, I got an alert from the Washington Post. Barack Obama had slapped tariffs on imports of Chinese tires. Barack Obama's handling of this issue shows several things. First, it shows a real contempt for China, trade policy, and his international relationships more broadly. As one of my liberal friends likes to point out, this action demonstrates how the Democrats really cannot be taken seriously as the internationalist party.  And it shows the implicit contradictions in much of Obama's economic policy.

Let's start with the time of its announcement: 9:18pm. Really? Saturday morning in China? This tells us who the audience for this policy was: the United States. It tells us that Obama is willing to subordinate trade policy -- just before the G-20 meeting no less -- to domestic politics that he is embarassed about. Why else release this late on a Friday night?  (note that by statute, he didn't have to release a response to International Trade Commission recommendations until the 17th. He picked this timing)

By Saturday afternoon, China issues scathing remarks. By Sunday, they announce counter-tariffs against US chickens and auto-parts. We have a full scale trade war.  And Asian and European markets open the week down. Thanks Barack...

So Barack Obama started a trade war for entirely domestic reasons, jeopardizing the recovery, and is afraid of the headlines here, why he doesn't care about international opinion. How does that sound?

Now, why chickens and auto parts? I don't immediately understand the chickens, although I suspect it is a pretty good business for us, but I understand auto parts. 

US auto parts are made by the United Autoworkers, the same union that Obama bailed out when he bailed out GM and Chrysler, two companies that had becoming wards of their union pension funds. In addition to hurting the unions, this could hurt the auto manufacturers themselves, which Obama owns and which opposed the tire tariffs because it will raise their costs. First he screwed the car companies for the UAW, now USW. Perhaps this is a lesson for when he takes over the health care sector. 

So where was the logic in this? He helps his allies, with one hand, but hurts them with the other. He hurts the economy. He hurts the government run companies. And he opens a trade war just in time for the G-20 to create real structural damage to the US economy.

Furthermore, this is how he is celebrating the anniversary of the death of Lehman Brothers. By sticking the knife in the economy.

That's change I can believe in.

http://www.youtube.com/watch?v=zL0VoIgopPI