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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
Hahaha. Germany has the strongest economy among all OECD dcountries. And you think Germany will go bust and USA will not? LOL You are kidding me.
At least read this if you do not believe me.
Germany's economy Feb 3rd 2011 | from the print edition
Angela in Wunderland
What Germanys got right, and what it hasnt
THE West has rightly marvelled at Chinas economic miracle. Less noticed is a minor miracle in its own midst. It is time to pay attention to Germanys new Wirtschaftswunder.
Germany had a savage recession as manufacturing orders dried up, but its economy has since bounced back strongly, expanding by 3.6% last year, far faster than most other rich economies. For sure, this was partly a bungee effect after a particularly deep downturn, but it is no one-year wonder. By several measures, including keeping unemployment down (it is at its lowest since 1992) and the prosperity reflected in the growth of GDP per head, Germany was the star performer among the rich G7 countries over the past ten years (see article). Germans entered 2011 in their most optimistic mood since 2000, according to Allensbachs polls. Business confidence is at its highest since the Ifo institute began tracking it 20 years ago.
Whats Germanys secret? It helps that the country did not experience a property or credit bubble, and that it has kept its public finances admirably under control. But above all Germanys success has been export-driven: unlike most other big rich economies it has maintained its share of world exports over the past decade, even as China has risen.
This is notadvocates of an active industrial policy please notethanks to a special genius among German policymakers for picking winners, though businesses have benefited from strong state-supported research institutions. Luck has played a part. Germany has a cheaper-labour hinterland right on its doorstep in central Europe that has helped companies raise efficiency and hold down pay. Meanwhile, German firms happen to produce exactly the things that a booming China wants, from luxury cars to the machinery that enables Chinese factories to be the workshops of the world. So Germany has been a big winner on both the supply side and the demand side of globalisation. The euro also provided a bonanza, thanks to (unsustainable) demand in places like Spain and Greece.
http://www.economist.com/node/18070170
Nevertheless...unless EFSF buys bonds ECB cannot hike. Its simple.
IF EFSF buys bonds much political trouble to follow. Moron Merkel aware of that.
Debt per capita EZone much higher than US. On paper. Dr. Ben clever man,
Germany debt per capita 23400 . That is far MORE than available yearly income. Because per capita includes everyone but not everyone has income.
Germany will pretty soon go bust .
very interesting times for world/markets......great biz
might need a supporting rum punch
The US administrations tried so hard to oust Qadaffi for years and you see how easy it is for Dr. Ben.
Dr. Ben is Almighty. So do not play against him. Rule Nr. 1 LOL
You cant fight the POMO. Dr Ben is Almighty LOL
digi...evrything ok, champ?