Posted on 07/05/2022 5:00:49 PM PDT by Mount Athos
On Monday, the country recorded that imports outstripped exports for more than 30 years. Its entire economy has been built around creating an industrial machine that dominates global markets. That machine is now grinding to a halt.
Exports unexpectedly fell, while imports surged as the cost of energy spiked. Until recently it was racking up surpluses of 8 or 9 per cent of GDP, or €20 billion a month, the biggest in the world.
The German economy is based on selling high-end industrial goods to the rest of the world. Unlike many other countries, it doesn’t have huge service industries to take up the slack if that goes into decline, nor does it have a major financial centre to bring in invisible earnings if the container ships start to go elsewhere. Take the big exporters out of the German economy and it is a little hard to figure out what is left.
What follows a fall in exports is a fall in those well-paid manufacturing jobs that are the backbone of the German economy.
Finally, it is going to mean a massive eurozone deficit as well. Of all the countries within the zone, Germany was the only major surplus country. The result? The currency will weaken and weaken.
In truth, the German industrial export machine was fuelled by cheap energy from Russia – and that fuel could soon run dry. For most of the post-war era, Germany has prided itself on very low inflation, a stable currency, and a huge trade surplus. Right now, it has a very Italian or Greek mix of 8 per cent inflation, a crumbling currency, and a rising trade deficit. Many other countries are used to that, but for Germans it will come as a shock.
(Excerpt) Read more at spectator.co.uk ...
Stupid bastards quit Russian commodities because the US told them to.
And for no good reason.
You get what you vote for.
Stupid bastards quit Russian commodities because the US told them to.
And for no good reason.
Good!The Germans are only good at screwing others. For example, the strength of their economy was used to destabilize Spain Italy and others. Then they were pissing on Trump when he told them they needed to contribute more to NATO. What goes around comes around, now it’s their turn!
Stupid is as stupid does!
Yes, morons in both countries.
I remember how Trump used to warn Germany about relying
on Russian oil and gas, and I remember how they ridiculed him and ignored him.
Well, Trump was right once again.
All kinds of consequences going to be playing out. Wars and revolutions are born out of this kind of turmoil. And Germany doesn’t have a good track record.
I know what is meant there.
My point is why are we having to deal with stupidity in journalism?
And translate for ourselves?
What else is lost - in translation from stupid journalists?
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