Germany rebuffs US criticism of its growth model

Germany has hit back at US criticism of its export-led growth model, describing the attack as "incomprehensible".

The rebuff came after a US Treasury report said Germany's dependence on exports for growth was hurting the eurozone and the wider global economy.

But Germany's finance ministry said there were "no imbalances" in its economy and that its current account surplus was not a cause for concern.

A surplus happens when a country's income from exports is greater than its import bill.

In its report, the US Treasury said that "Germany has maintained a large current account surplus throughout the euro area financial crisis, and in 2012, Germany's nominal current account surplus was larger than that of China".

There are thousands of economists in the US, who would gladly shift the current economic strategy over to the German strategy...viewing long-term goals, not immediate...short-term...and limited goals.

Pull out a history book over the 1930s and look at the economic policies of the FDR administration. It was mostly an experimental period, with notable failures. By 1936, most everyone of any intelligent capability...knew that FDR’s vision wasn’t working. The only issue was that he was a great “phoney”....continually talking of the coming relief, the great day ahead, and the great changes in the making.

I will say this....having lived in Germany for a while....there are bankruptcies going on...personal finance issues...and dire consequences ahead on their own health insurance front. They know it. Most Germans are not heavily in debt...enjoy a secure but stagnant job atmosphere...and have adjusted to fifty percent taxation.

I lived in Germany for 4 years.

My observations are only that, but here are some of them:

There are stereotypes of all peoples and cultures, and the one that is typical in the minds of most Americans is that the German people are these emotionless robots.

Compared to your typical Dutchman or Irish lass, the Germans are more stand offish. However, they are an incredible people, gifted in fact.

They experience the same ups and downs as we all do: the loss of a child in a car accident, health problems, financial challenges, the stresses of daily life. They love their children, are proud of their nation, and take great pleasure in things that we used to, such as going for walks or rebuilding something on their property.

The difference on a macro scale between their culture and American is that the German people (overall) have a vastly superior drive to endure the hardships and to persevere.

Americans tend to over emotionalize everything, and focus only on themselves. Germans will put their heads down and push forward (this is what Americans used to do).

Moreover, while there are many immigrants in Germany, the culture is still more homogeneous than America. There is very little "ghetto culture" that has swayed them away from thousands of years of European heritage, and the values of hard work, thrift, and civility are still largely intact.

The act of taking state welfare is still largely frowned upon - self reliance is admired more. This is not true of many of the immigrant populations in Germany, and many Germans resent that.

Older people in Germany remain productive. It was a daily occurrence in my village to see old men and women in their 80s and 90s riding bicycles to market, tending gardens, sweeping their sidewalks, and painting their houses. Most of these older Germans had moved in with their children or grandchildren instead of "retirement" communities. Playing golf or going to the casinos was not their primary goal - their families were.

I realize nothing is monolithic, but that is a general observation. Take it for what it is worth.

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