Is multi-kulti dead?

3 Main Points:
1. Germany is experiencing a rise in anti-immigrant sentiment, and public figures such as Thilo Sarrazin have argued that “with the country’s population shrinking overall, immigrants and the underclass are having too many children, well-educated native Germans too few. Biologically, culturally and professionally Germany is dumbing down.” This is alarmingly reminiscent of the political climate in Nazi Germany.
2. Many Germans have expressed that they are in favor of sharply restricting Muslim religious practice, and think that the country has been overrun by foreigners. In addition to the sentiment of the general public, many politicians have bandwagonned onto this idea and stressed that Germany is not an immigrant land and does not need more Arabic or Turkish immigrants.
3. Initially, Germany expected its large immigrant population to work for a time and then leave and return to their original countries. This has not been the case, and the German government has begun to promote a national integration plan, “which mandates German language courses and seeks to shepherd immigrants into employment.” The program emphasizes that integration is a two way street, and immigrants may be forced to choose between their actual identity and a German one.

2 Questions:
1. How is it possible that Germans are experiencing and expressing this type of racist and xenophobic sentiment again, less than a century after the Holocaust?
2. What are the consequences for Germany from the international community should these sentiments and policies continue?

1 Observation:
“Multi-kulti” is actually an Islamophobic racial slur, and its usage here is rather strange.