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Actually, Germany did cause quite a bit of the problem. Without Germany, the Euro would have devalued much faster, much earlier, which would have easied some pr

Actually, Germany did cause quite a bit of the problem. Without Germany, the Euro would have devalued much faster, much earlier, which would have easied some problems. A Germany going it alone would also have a much more expensive currency. This is one reason Germany doesn't want the Euro to collapse I suspect (along with the massive disorganisation)

lispm 14y ago
Germany has no problems with a more expensive currency.
- steve8918 14y ago
  You don't understand the Germany economy. Most of Germany's trading partners are within the Eurozone. If Germany left the euro, then their currency would skyrocket relative to the rest of the Eurozone, making their exports much more expensive, and it would absolutely devastate the German economy. Germany needs the Euro as much as the Euro needs them. The entire situation is a disaster, because the only solution really is for Germany to support the rest of the EU through the issuance of Eurobonds. This will never happen. So the entire Eurozone is locked in this death grip.
  - yummyfajitas 14y ago
    If Germany left the euro, then their currency would skyrocket relative to the rest of the Eurozone, making their exports much more expensive, and it would absolutely devastate the German economy. Huh? According to you, Germans currently work hard building products that will be enjoyed by others in the Eurozone. Why would it be bad for them if that situation reversed, and suddenly they were able to purchase the fruits of other's labor? That's like saying it would be bad for me if my stock portfolio suddenly increased in value, and I were able to hire a cook rather than cooking for myself.
  - lispm 14y ago
    > You don't understand the Germany economy How do you know? I'm German and I follow the German economic development for several decades now. > If Germany left the euro, then their currency would skyrocket relative to the rest of the Eurozone You mean to the level we had before in West Germany? Check out the economic 'failure' of West Germany some time. > The entire situation is a disaster because the only solution really is for Germany to support the rest of the EU through the issuance of Eurobonds. This will never happen. So the entire Eurozone is locked in this death grip. Now it seems that you don't understand European economy.
- danmaz74 14y ago
  Ask German exporters...
  - lispm 14y ago
    We did in West Germany decades ago. The answer: the exporters adapt to every exchange rate. What they really prefer is a STABLE exchange rate - high or low. What they prefer even more: no exchange rate. Trade in a large market with a single currency is even easier.
  - danmaz74 14y ago
    Yes, and I recall perfectly well what the German industry said whenever the Italian currency (lira) was devalued. They weren't happy.
- excuse-me 14y ago
  You don't think a 1 NeueDM = $10 would have an effect on BMW sales abroad?
  - lispm 14y ago
    This makes any imports (energy, goods, materials, services, ...) totally cheap. Thank you. BMW has factories world wide. With that exchange rate they would go on a big big shopping tour and buy any market they can. This would be the big expansion of the German industry. Do you have other good ideas?
    - excuse-me 14y ago
      Yes it could move all it's manufacturing to China and then use it's strong currency to let all it's citizens buy cheap Chinese TVs in Walmart How's that working out for you guys?
      - lispm 14y ago
        We have already factories in China. China is already cheaper than Germany. Much. Still we have the factories in Germany. Check out VW some time. http://en.wikipedia.org/wiki/Volkswagen_Group_China http://en.wikipedia.org/wiki/Volkswagen_Group_China
  - danmaz74 14y ago
    @lispm: imports would be cheap, and German labor would be very expensive. Germany (like most of Europe) imports raw materials, adds value with labor, and exports finished goods. BMW could not export made in Germany cars with a profit anymore; this could still be good for BMW (just like Apple, they could build everything in China), but it would be bad for the Germans.
    - lispm 14y ago
      German labor is already VERY expensive. We still have factories in Germany and outside of Germany. Each BMW uses a lot of materials and energy for production. That would get a lot cheaper. Plus BMW imports lots of parts from other countries. We really had that discussion years ago. When the West German Deutsche Mark was getting stronger all the time. BMW expanded in Europe and outside of Europe. Still it kept its factories in Germany. The quality of its workforce is extremely high.
nickik 14y ago
I exept your point but: Changes in currency only have short time effets. The prices tend to new equillibirum. Your imports get cheaper and after a while it reaches a new equillibirum (balance) between the two. Deflation(Inflation can only grant a short term benefits and that is without calculating in the distortionary effects Switzerland has the same problem now, Germany would have after the Euro. In the Switzerland case it has been a much strong effect then it normal would have been, since people used the CHF as saving.

lispm 14y ago

Germany has no problems with a more expensive currency.

steve8918 14y ago
You don't understand the Germany economy. Most of Germany's trading partners are within the Eurozone. If Germany left the euro, then their currency would skyrocket relative to the rest of the Eurozone, making their exports much more expensive, and it would absolutely devastate the German economy. Germany needs the Euro as much as the Euro needs them. The entire situation is a disaster, because the only solution really is for Germany to support the rest of the EU through the issuance of Eurobonds. This will never happen. So the entire Eurozone is locked in this death grip.
- yummyfajitas 14y ago
  If Germany left the euro, then their currency would skyrocket relative to the rest of the Eurozone, making their exports much more expensive, and it would absolutely devastate the German economy. Huh? According to you, Germans currently work hard building products that will be enjoyed by others in the Eurozone. Why would it be bad for them if that situation reversed, and suddenly they were able to purchase the fruits of other's labor? That's like saying it would be bad for me if my stock portfolio suddenly increased in value, and I were able to hire a cook rather than cooking for myself.
- lispm 14y ago
  > You don't understand the Germany economy How do you know? I'm German and I follow the German economic development for several decades now. > If Germany left the euro, then their currency would skyrocket relative to the rest of the Eurozone You mean to the level we had before in West Germany? Check out the economic 'failure' of West Germany some time. > The entire situation is a disaster because the only solution really is for Germany to support the rest of the EU through the issuance of Eurobonds. This will never happen. So the entire Eurozone is locked in this death grip. Now it seems that you don't understand European economy.
danmaz74 14y ago
Ask German exporters...
- lispm 14y ago
  We did in West Germany decades ago. The answer: the exporters adapt to every exchange rate. What they really prefer is a STABLE exchange rate - high or low. What they prefer even more: no exchange rate. Trade in a large market with a single currency is even easier.
- danmaz74 14y ago
  Yes, and I recall perfectly well what the German industry said whenever the Italian currency (lira) was devalued. They weren't happy.
excuse-me 14y ago
You don't think a 1 NeueDM = $10 would have an effect on BMW sales abroad?
- lispm 14y ago
  This makes any imports (energy, goods, materials, services, ...) totally cheap. Thank you. BMW has factories world wide. With that exchange rate they would go on a big big shopping tour and buy any market they can. This would be the big expansion of the German industry. Do you have other good ideas?
  - excuse-me 14y ago
    Yes it could move all it's manufacturing to China and then use it's strong currency to let all it's citizens buy cheap Chinese TVs in Walmart How's that working out for you guys?
    - lispm 14y ago
      We have already factories in China. China is already cheaper than Germany. Much. Still we have the factories in Germany. Check out VW some time. http://en.wikipedia.org/wiki/Volkswagen_Group_China http://en.wikipedia.org/wiki/Volkswagen_Group_China
- danmaz74 14y ago
  @lispm: imports would be cheap, and German labor would be very expensive. Germany (like most of Europe) imports raw materials, adds value with labor, and exports finished goods. BMW could not export made in Germany cars with a profit anymore; this could still be good for BMW (just like Apple, they could build everything in China), but it would be bad for the Germans.
  - lispm 14y ago
    German labor is already VERY expensive. We still have factories in Germany and outside of Germany. Each BMW uses a lot of materials and energy for production. That would get a lot cheaper. Plus BMW imports lots of parts from other countries. We really had that discussion years ago. When the West German Deutsche Mark was getting stronger all the time. BMW expanded in Europe and outside of Europe. Still it kept its factories in Germany. The quality of its workforce is extremely high.

nickik 14y ago

I exept your point but: Changes in currency only have short time effets. The prices tend to new equillibirum. Your imports get cheaper and after a while it reaches a new equillibirum (balance) between the two. Deflation(Inflation can only grant a short term benefits and that is without calculating in the distortionary effects Switzerland has the same problem now, Germany would have after the Euro. In the Switzerland case it has been a much strong effect then it normal would have been, since people used the CHF as saving.