Why Germany’s current-account surplus is bad for the world economy

[Deleted]

hey, no problem..
Germany stems it's own military expenses.. Raises that approx. 1% it's short spending..
We'll charge the US rent for the occupation of all the land and military bases it maintains in Germany, against most people's will.
I mean it's nice and everything to blabber that nonsense you hear from that orange monkey in the white house. Fact however is, that the US fared extremely well so far with it's presence especially in Germany. Since the country just happens to be the geographic center of Europe, and being able to station your troops there helps your global military strategic operations more than it protects the Germans.
If your dumbass president keeps whining and Europe's countries get serious, the US would have quite a big strategic problem at its hands. Losing all those bases would hurt.
So, let's stay serious here.. The situation at hand is one that exists ever since 1945, and no one ever bitched, since it's a situation that helps both sides.
Yet, if you're unhappy, feel free to leave.

Lol, do you really think germany is in any position to ask for demands from the US? At any given moment, the US can demand the debts to be due.
Marshall plan aid and 70+ years of interest is enough to cripple germany so severe, you'd have a new fascist regime and dictator before dinner.

[Noradin]

Lol, do you really think germany is in any position to ask for demands from the US? At any given moment, the US can demand the debts to be due.
Marshall plan aid and 70+ years of interest is enough to cripple germany so severe, you'd have a new fascist regime and dictator before dinner.

Yes, they could "demand" it the same way they can "demand" everyone should call the colour of the sky "green" from now on.
All they can expect in response to something that momentously stupid would be to get laughed at by everyone everywhere.

[Deleted]

Lol, do you really think germany is in any position to ask for demands from the US? At any given moment, the US can demand the debts to be due.
Marshall plan aid and 80+ years of interest is enough to cripple germany so severe, you'd have a new fascist regime and dictator before dinner.

Their is a difference between a loan and a grant. 1.2 billion USD were loan-aid. The rest being Grants with requirements on trade that to my knowledge West Germany meet.

I also suggest you read up on the Two Plus Four Agreement and the 1953 London Debt Agreement.

[Deleted]

Their is a difference between a loan and a grant. 1.2 billion USD were loan-aid. The rest being Grants with requirements on trade that to my knowledge West Germany meet.

I also suggest you read up on the Two Plus Four Agreement and the 1953 London Debt Agreement.

Hm ok, seems germany paid of the last post-ww2 debt in 2010 and The Uk did so 2006.
Begs the question why Brussels dictates the EU and not Berlin and why Germany is not much more sovereign.

[Narwal]

The article is saying that Germany ought to spend more, their lack of spending doesn't balance other nations books.

And neoliberalism didn't really play a role on how trade is made that was neoclassical thinking which doesn't argue against trade surplus, just prolonged ones since it causes the problems described in the article. Those problems would still happen unless everyone decided to engage in mercantilism and go back to the 19th century and early 20th century.

In essence, Germany is to other countries economies, what the 1% money hoarders are to the American economy?

Am I reading it right that the unions in Germany came to agreement with the government/business that in essence is a promise to not cause problems? In other words, the unions aren't really doing what they're set out to do?

[Eggroll]

In essence, Germany is to other countries economies, what the 1% money hoarders are to the American economy?

Am I reading it right that the unions in Germany came to agreement with the government/business that in essence is a promise to not cause problems? In other words, the unions aren't really doing what they're set out to do?

German unions have become a joke, ruled mainly by people from the major political parties, in the best interest of the corporations.

A large portion of Germans do not even earn enough to save anything. Germany has the largest low wage sector in all of EU if I'm correct. By 2030 40 % of pensioneers will have to live on poverty level after a life of work. Wages haven't increased significantly in the last 20 years. 'Economy! doesn't necessarily equal population, I guess.

[Deleted]

Berlin > Brussels, though. This has been the case for quite a few years now.

[Zmaniac17]

For every $2 we give to Europe they give us $1 back.

Southern Europe holds the euro low because they are poorer, Germany benefits from this low euro because it makes it's exports artificially cheap.

We need to form a dollar zone with Venezuela and Cuba, to make the dollar worth 1/10th of what it is now.

Ya then we can buy IPhones from China for 10,000$ each. Sounds like a plan. That'll wipe out my personal savings account surplus problem.

[Deleted]

Because it is very akward to be the big champion of free trade when you are the one profiting from it the most on the planet.

So basically, if you are the only one doing something right, you should STFU about it because it might make the dumb and the lazy feel inferior?