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It depends a bit on what you mean by strength. At the moment, Germany's economy is very dependant on the strong export performance of the economy. But exports

It depends a bit on what you mean by strength. At the moment, Germany's economy is very dependant on the strong export performance of the economy. But exports don't just depend on the quality of the goods produced, they also depend on customers being able to pay for those goods. If the customers stop being able to pay - something which is outside of Germany's control, then Germany will find itself in real trouble. This is the sense in which it's economy is weak. It's kind of like judo - the economy is out of balance and vulnerable to shocks applied in the right place.

lispm 12y ago
> At the moment, Germany's economy is very dependant on the strong export performance of the economy. Not 'at the moment' - Germany has been a strong exporter for almost five decades now... > then Germany will find itself in real trouble. Since Germany runs this model since a long time, it has a lot of experience dealing with its effects.
- james1071 12y ago
  You are completely wrong. Germany has not had anything like this level of current account surplus before. It is entirely due to mistakes in macro economics (wrong parity within the Euro and a refusal to boost domestic demand). Sadly Germans seem unable to understand that their surplus is not a sign of economic success, but the result of misguided policies that keep the rest of Europe in recession.
  - angersock 12y ago
    Sadly Germans seem unable to understand that their surplus is not a sign of economic success, but the result of misguided policies that keep the rest of Europe in recession. ...which in turn strengthens the German position, right? In turn giving them de facto economic success?
    - james1071 12y ago
      The surplus is used to accumulate claims on other countries (i.e. Germany is lending foreigners money). Unfortunately, Germany is not going to be repaid in full, so the policy is utterly stupid.
  - lispm 12y ago
    > Germany has not had anything like this level of current account surplus before That has a simple reason: Germany is a larger country in a unified Europe now. After recovering from the effects of the reunification, you have now a stronger and larger economy with more and larger trading partners. For the larger export success are a few simple reasons responsible: * the east european market directly next to Germany is now larger and easier to access. Poland. * Germany is no 33% larger than before the reunification. Once the added economy started to recover from the effects of reunification and many investments in East Germany were done, the now larger economy, contcentrated back on the european and world market. * globalization has nicely enhanced the reach of even small companies in rural Germany to trade with even remote locations > It is entirely due to mistakes in macro economics That's entirely wrong.

lispm 12y ago

> At the moment, Germany's economy is very dependant on the strong export performance of the economy. Not 'at the moment' - Germany has been a strong exporter for almost five decades now... > then Germany will find itself in real trouble. Since Germany runs this model since a long time, it has a lot of experience dealing with its effects.

james1071 12y ago
You are completely wrong. Germany has not had anything like this level of current account surplus before. It is entirely due to mistakes in macro economics (wrong parity within the Euro and a refusal to boost domestic demand). Sadly Germans seem unable to understand that their surplus is not a sign of economic success, but the result of misguided policies that keep the rest of Europe in recession.
- angersock 12y ago
  Sadly Germans seem unable to understand that their surplus is not a sign of economic success, but the result of misguided policies that keep the rest of Europe in recession. ...which in turn strengthens the German position, right? In turn giving them de facto economic success?
  - james1071 12y ago
    The surplus is used to accumulate claims on other countries (i.e. Germany is lending foreigners money). Unfortunately, Germany is not going to be repaid in full, so the policy is utterly stupid.
- lispm 12y ago
  > Germany has not had anything like this level of current account surplus before That has a simple reason: Germany is a larger country in a unified Europe now. After recovering from the effects of the reunification, you have now a stronger and larger economy with more and larger trading partners. For the larger export success are a few simple reasons responsible: * the east european market directly next to Germany is now larger and easier to access. Poland. * Germany is no 33% larger than before the reunification. Once the added economy started to recover from the effects of reunification and many investments in East Germany were done, the now larger economy, contcentrated back on the european and world market. * globalization has nicely enhanced the reach of even small companies in rural Germany to trade with even remote locations > It is entirely due to mistakes in macro economics That's entirely wrong.