The Hope FederationBoard

| In the past few months, government auctions of the 3G spectrum, financed through funds from the public purse (849,056.25 Euros), were met with catastrophic failure. The nature of the auctions was designed to increase competitive pressure on bidders by offering fewer licenses than the number of operators likely to bid and in most cases, used sealed bid auctions. This put the telephone operators in an uncomfortable position because if they lost the auction they were out of the next technological phase of the industry. They, therefore, took risks and made high bids, incurring large debt. Albeit, the auctions held in Germany raised approximately 33,964,050,000 Euros.

From then on it was many Telecom company's cases of trying to convince banks and bondholders to stop themselves from going bankrupt. They had invested heavily in research and development to keep pace with changing technology, and the telecom operators were no longer in a position to pay maintenance and upgrades expenses, let alone buy new equipment.

The true disaster struck when increasingly debt-burdened Telecoms companies, many of which also faced heavy pension liabilities for their aging workforces, set the stage for failed auctions when the winners defaulted on their bids. The stock market lost confidence, share prices tumbled. Shareholders were now in a quandary, anxious to sell off their shares for cash. This massive panicking to sell-off shares triggered deflation in asset and commodity prices, dramatic drops in demand and credit, and over 24,000 jobs lost in the first few months.

The financial crisis following the stock market crash led to a sudden and persistent reduction in consumption and investment spending. Once panic set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money, therefore, became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand.
In the early weeks, inflation grew at an alarming rate, but the government simply printed more currency to pay off the debts incurred by the auctions, now larger due to inflation. This sharp decline in consumer spending and demand has resulted in a continual downward spiral of industries losing money, lowering production and laying off more workers. In the past few months alone, the unemployment rate, formerly at 10.5%, has soared to 16.7%. To add insult to injury, refugees, willing to work the same hours as a German worker but for a smaller wage, have effectively taken the jobs of many German workers. Ironically, German workers are unable to compete with refugee workers, as they are protected by wage laws- implemented as part of Angela Merkel's progressive 'Brave New Deal'. |

| In the past few months, government auctions of the 3G spectrum, financed through funds from the public purse (849,056.25 Euros), were met with catastrophic failure. The nature of the auctions was designed to increase competitive pressure on bidders by offering fewer licenses than the number of operators likely to bid and in most cases, used sealed bid auctions. This put the telephone operators in an uncomfortable position because if they lost the auction they were out of the next technological phase of the industry. They, therefore, took risks and made high bids, incurring large debt. Albeit, the auctions held in Germany raised approximately 33,964,050,000 Euros.

From then on it was many Telecom company's cases of trying to convince banks and bondholders to stop themselves from going bankrupt. They had invested heavily in research and development to keep pace with changing technology, and the telecom operators were no longer in a position to pay maintenance and upgrades expenses, let alone buy new equipment.

The true disaster struck when increasingly debt-burdened Telecoms companies, many of which also faced heavy pension liabilities for their aging workforces, set the stage for failed auctions when the winners defaulted on their bids. The stock market lost confidence, share prices tumbled. Shareholders were now in a quandary, anxious to sell off their shares for cash. This massive panicking to sell-off shares triggered deflation in asset and commodity prices, dramatic drops in demand and credit, and over 24,000 jobs lost in the first few months.

The financial crisis following the stock market crash led to a sudden and persistent reduction in consumption and investment spending. Once panic set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money, therefore, became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand.
In the early weeks, inflation grew at an alarming rate, but the government simply printed more currency to pay off the debts incurred by the auctions, now larger due to inflation. This sharp decline in consumer spending and demand has resulted in a continual downward spiral of industries losing money, lowering production and laying off more workers. In the past few months alone, the unemployment rate, formerly at 10.5%, has soared to 16.7%. To add insult to injury, refugees, willing to work the same hours as a German worker but for a smaller wage, have effectively taken the jobs of many German workers. Ironically, German workers are unable to compete with refugee workers, as they are protected by wage laws- implemented as part of Angela Merkel's progressive 'Brave New Deal'. |