4 ms·

Okay, no, Germany can't manipulate its currency as they don't have their own, they use the Euro. Germany does have large influence over Brussels being the econo

Okay, no, Germany can't manipulate its currency as they don't have their own, they use the Euro. Germany does have large influence over Brussels being the economic powerhouse of the Eurozone currency union, and the European Central Bank is in Frankfurt but really accountable to no-one, being led by an Italian man from Goldman Sachs. And yes, these 'currency manipulator' designations are a point of political convenience and are not evenly applied. Monetary policy for the last decade worldwide has been outright currency manipulation and market interventions using devalued currency. This excess currency has fueled bubbles in all markets: Rental, housing, stocks, venture capital, startups, art, crypto, government bonds, corporate bonds, junk bonds, collectibles, you name it.

bilbo0s 7y ago
Well, I guess that's true. Nearly everyone is a currency manipulator. But also, as you yourself said, it's more of a point of political convenience right? If it serves our purposes to designate china as a manipulator, then who cares if everyone else manipulates too? Serious question. I mean, would it matter?
- wallace_f 7y ago
  It helps certain export business interests and generally hurts domestic consumers. It is in US consumer's interest to not devalue our currency. If china does it, it means we buy their stuff cheaper, but our stuff is more expensive to them and also in relatigve terms. Just more government, corporatist cheating and cronyism which has come to define modern politics but not modern political awareness. Also, think about this long enough and you realize how abusive the Federal Reserve is to the average US consumer. I mean, the Fed in the last 10 years ran up a 4 trillion balance sheet of fresh free money, at least go buy healthcare or something good with it and not this circle jerk of lending it to Wall St and buying US debt with it.
tunesmith 7y ago
Are you referring to the printing of more money? Is that the only way countries devalue their currency?
Phil_Latio 7y ago
> Okay, no, Germany can't manipulate its currency as they don't have their own, they use the Euro. But they use the Euro as an umbrella that doesn't behave like a single currency for Germany would. While implementing the Euro they put massive pressure on wages while other EU countries kept increasing wages. Germany is violating export-surplus rules of the EU, but no one seems to care. https://upload.wikimedia.org/wikipedia/commons/e/ef/Balance_of_trade_in_goods_and_services_%28Eurozone_countries%29.png https://upload.wikimedia.org/wikipedia/commons/e/ef/Balance_...
- jchb 7y ago
  Actually the German surplus has been brought up for discussion many times in the EU parliament. A trade surplus of over 6% triggers a so called IDR, one EU acronym among many, which means (Macroeconomic) In-Depth Review. If the review shows an excessive balance, that triggers the EIP. Excessive Imbalance Procedure!. If a country fails to follow the recommendations coming out of the EIP, that can in theory lead to sanctions, including fines. You can read the last IDR on Germany here: https://ec.europa.eu/info/sites/info/files/2018-european-semester-country-report-germany-en.pdf https://ec.europa.eu/info/sites/info/files/2018-european-sem... This IDR concluded that a EIP was not necessary. So far an EIP has never been launched by the commission. Whether this system was designed to ensure Germany is never sanctioned, or if it is simply a huge slow-moving bureaucracy, I leave as an open research question ;)
  - Phil_Latio 7y ago
    > Actually the German surplus has been brought up for discussion many times in the EU parliament. Has it? I don't follow that clown show. Looks like Germany has the power within the EU to ignore such issues while bullying other countries into following the rules "we all agreed on". Naturally this topic is a total taboo in Germany. The worst excuse I heard so far was: "Yes, we profit the most and other countries may suffer in economic terms. BUT the EU as a whole brought so much more to these countries!" > This IDR concluded that a EIP was not necessary I know that the rule itself is 6% for surplus and 4% for deficit (?!)... So thanks for the link but I won't read it, I don't care why EIP was not necessary for whatever opinion. I just don't take the EU serious.
psbmt 7y ago
>Germany can't manipulate its currency as they don't have their own, they use the Euro. And who owns the Euro? Let me tell you, it's not the poor countries of the EU.
deleted 7y ago
[deleted]
wczin 7y ago
>Germany can't manipulate its currency as they don't have their own, they use the Euro. And who owns the Euro? Let me tell you, it's not the poor countries of the EU.
segmondy 7y ago
I don't know how much influence Germany really has with the negative interest rate that's screwing them more than anyone else in EU.

bilbo0s 7y ago

Well, I guess that's true. Nearly everyone is a currency manipulator. But also, as you yourself said, it's more of a point of political convenience right? If it serves our purposes to designate china as a manipulator, then who cares if everyone else manipulates too? Serious question. I mean, would it matter?

wallace_f 7y ago
It helps certain export business interests and generally hurts domestic consumers. It is in US consumer's interest to not devalue our currency. If china does it, it means we buy their stuff cheaper, but our stuff is more expensive to them and also in relatigve terms. Just more government, corporatist cheating and cronyism which has come to define modern politics but not modern political awareness. Also, think about this long enough and you realize how abusive the Federal Reserve is to the average US consumer. I mean, the Fed in the last 10 years ran up a 4 trillion balance sheet of fresh free money, at least go buy healthcare or something good with it and not this circle jerk of lending it to Wall St and buying US debt with it.

tunesmith 7y ago

Are you referring to the printing of more money? Is that the only way countries devalue their currency?

Phil_Latio 7y ago

> Okay, no, Germany can't manipulate its currency as they don't have their own, they use the Euro. But they use the Euro as an umbrella that doesn't behave like a single currency for Germany would. While implementing the Euro they put massive pressure on wages while other EU countries kept increasing wages. Germany is violating export-surplus rules of the EU, but no one seems to care. https://upload.wikimedia.org/wikipedia/commons/e/ef/Balance_of_trade_in_goods_and_services_%28Eurozone_countries%29.png https://upload.wikimedia.org/wikipedia/commons/e/ef/Balance_...

jchb 7y ago
Actually the German surplus has been brought up for discussion many times in the EU parliament. A trade surplus of over 6% triggers a so called IDR, one EU acronym among many, which means (Macroeconomic) In-Depth Review. If the review shows an excessive balance, that triggers the EIP. Excessive Imbalance Procedure!. If a country fails to follow the recommendations coming out of the EIP, that can in theory lead to sanctions, including fines. You can read the last IDR on Germany here: https://ec.europa.eu/info/sites/info/files/2018-european-semester-country-report-germany-en.pdf https://ec.europa.eu/info/sites/info/files/2018-european-sem... This IDR concluded that a EIP was not necessary. So far an EIP has never been launched by the commission. Whether this system was designed to ensure Germany is never sanctioned, or if it is simply a huge slow-moving bureaucracy, I leave as an open research question ;)
- Phil_Latio 7y ago
  > Actually the German surplus has been brought up for discussion many times in the EU parliament. Has it? I don't follow that clown show. Looks like Germany has the power within the EU to ignore such issues while bullying other countries into following the rules "we all agreed on". Naturally this topic is a total taboo in Germany. The worst excuse I heard so far was: "Yes, we profit the most and other countries may suffer in economic terms. BUT the EU as a whole brought so much more to these countries!" > This IDR concluded that a EIP was not necessary I know that the rule itself is 6% for surplus and 4% for deficit (?!)... So thanks for the link but I won't read it, I don't care why EIP was not necessary for whatever opinion. I just don't take the EU serious.

psbmt 7y ago

>Germany can't manipulate its currency as they don't have their own, they use the Euro. And who owns the Euro? Let me tell you, it's not the poor countries of the EU.

deleted 7y ago

[deleted]

wczin 7y ago

>Germany can't manipulate its currency as they don't have their own, they use the Euro. And who owns the Euro? Let me tell you, it's not the poor countries of the EU.

segmondy 7y ago

I don't know how much influence Germany really has with the negative interest rate that's screwing them more than anyone else in EU.