"Along with Argentina we have made the best impression so far. We do not need to hide," the Chelsea bound midfielder said.
"We are meeting a terrific opponent and they deserve the utmost respect but we have to look at our game.
"We are playing well and will continue to play our game whoever comes along. If there is a team that is better then fair enough.
"But if we play like we can then we have a chance. On current form we do not need to fear anyone."
The hosts are in a confident mood given there dominant display against Sweden in which they led 2-0 after just 12 minutes.
"That was the best game Germany have played for a long, long time - particuarly in the first half," Ballack declared.
"It is not possible to play better than we did in the first half hour.
"We have gained a lot of confidence from the Sweden win but Argentina is the next obstacle.
"They are of a higher calibre because they are one of the favourites for the title."
Coach Jurgen Klinsmann also allayed any fears of the star midfielder missing the game through an injury.
"Michael had trouble with his foot but there is no problem," Klinsmann told reporters.
Germany plays Argentina on Friday in Berlin.