Great Depression 2.0

Only instead of the Smoot-Hawley tariff, we have the geniuses who permitted the NSA to spy on allied countries:

Germany Instructs Its Companies To Limit Cooperation, Procurement Orders With The US

Update: it just got worse. Moments ago Bloomberg followed up with the second, and expected, part of this story, namely that just like China cut off major US corporations from big procurement contracts leading to a collapse in CSCO and IBM Asian revenues, it is now Germany’s turn. Per Bloomberg, the German Interior Ministry reviewing rules for awarding govt contracts for computer, communications equipment and services as political rift w/ U.S. widens, people familiar with matter told Bloomberg News’ Cornelius Rahn, Amy Thomson.

  • Ministry will probably issue new purchasing guidelines in coming weeks to replace “no-spy-order” dated April 30
  • Details being worked out, may require suppliers of components of bidder’s goods or services to guarantee they don’t hand over confidential data
  • IBM, CSCO, MSFT may be affected by any tightening of procurement procedures: Forrester Research analyst Andrew Rose

It could be for show, but I tend to doubt it. German companies have to be slavering at the notion of having an excellent excuse – nay, reason – to bar their American competitors from government contracts.