unbalanced economies

[ramirez]

le economie mondiali sono unbalanced.
La ricerca dell'equilibrio è fonte di guai per molti.
prendiamo per esempio questa notizia..
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It's Official: China Is The "Mystery" Daily Buyer Of Billions Of Euros
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salto alle ultime righe..
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The irony is that it is no longer the US which is pursuing a weak dollar, but its currency pegged partners, for whom a strong euro is just as critical important, China, that is doing all it can to boost US exports, which, however it knows, do not exist (aside from financial innovation of course).

The question now is: how long before Germany says it has had enough of China manipulating the European currency to a level that would almost make more sense for Germany to get out of the currency (which is costing the CDU and Merkel endless political credibility) and just return to the DEM. Alas, since Germany's banks are just as reliant on China as they are on the Fed, Merkel, or rather gher export sector, has now found itself between the Fed FX swap line Scylla and the Chinese mercantilist model charybdis.

Good luck with that Angela.

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la Cina aiuta l'Europa acquistando debito pubblico.
Bene !
Effetto collaterale ? l'euro rimane 'strong'
e questo penalizza le economie 'periferiche'
proprio quelle che han più bisogno di esportare....
effetto collaterale bis la Germania deve supportare economicamente
i partner europei sennò crolla l'euro.
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E in tutto questo casino la finanza non c'entra.
Sono le bilance commerciali che fanno schifo....

[ramirez]

Holding the current Emu together requires transfers (“gifts”) from the current account surplus countries to those with deficits, so the latter are spared the cost of attempting to restore competitiveness through deflation. In effect, this means transfers in perpetuity from Germany, not dissimilar to the transfers to East Germany but on a far larger scale. This would wreck Germany’s economy and its public finances.

Germany’s politicians seem blind to the implications of its policies: more “austerity” and “more lending”. The former will make things worse and the latter just postpones the reckoning. The cost to Germany of default now and rescuing its banking system is certainly less than after further depression and later default by Greece and other peripheral nations. Political turmoil in Greece is one thing, but when the German people understand the cul-de-sac into which their leaders have taken them in the name of “Europe” the repercussions will be more serious. Emu is a disaster for Europe and Germany.

The writer was economic adviser to Tony Blair from 1997-2003 and is vice-chairman of Open Europe
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..e riflettete sulle seg righe.
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German manufacturing has certainly benefited from Emu and earlier from the exchange rate mechanism, both of which were used to maintain the competitiveness of its manufactures. However, this was at the expense of German consumers and taxpayers. In so far as Mr Ridley’s “racket” had substance, it reflected an implicit collusion between German manufacturers, bankers and politicians.