John Maynard Keynes Is Still Dead

Germany has cut their Federal budget. Germany has lowered their deficit. Germany is coming out of their recession.

Austerity is the name of the game in Germany these days. Earlier this month, Chancellor Angela Merkel's government put together an €80 billion austerity program designed to trim the country's budget deficit substantially in coming years...

Now, though, it appears that German finances aren't quite as red as first thought. Whereas initial government projections foresaw the need to take on a whopping €80.2 billion in additional debt this year, new data indicates the real number could be up to €20 billion lower.

According to the Süddeutsche Zeitung on Tuesday, higher-than-expected tax revenues and lower-than-expected unemployment have resulted in a new forecast which foresees the 2010 budget deficit coming in at between €60 billion and €65 billion.

Angie Merkel has totally pwned Johnny Keynes. Geithner and Krugman must be recoiling in horror.