4 ms·
That's a dreadful article. "Germany is still exporting like gangbusters [to Greece] despite the poor country being in its fifth year of recession. In fac
by mafribe 11y ago
That's a dreadful article.
"Germany is still exporting like gangbusters [to Greece] despite the poor country being in its fifth year of recession. In fact, Germany’s trade surplus per person with Greece is 3.6 times bigger than that with the U.S. (290 euro per Greek versus 81 euro per American)."
Given that Greece is 'paying' for these imports with borrowed money, which is unlikely ever to be paid back, how is this setup benefitting?
Exports deficits are benefitting the exporter only if eventually the importers pay. But we are seeing that the importers are unwilling/unable to pay.
Moreover the article says
Euro itself collapsed, resulting in Germany’s higher positive trade balance.
Well, the Euro collapsed for everybody, so all other Euro members had exactly the same benefit.
- atmosx 11y agoYou wrote: > Given that Greece is 'paying' for these imports with borrowed money, which is unlikely ever to be paid back, how is this setup benefitting? > Well, the Euro collapsed for everybody, so all other Euro members had exactly the same benefit. I don't know if you're trolling me or not. Maybe you should read a little bit about the context before engaging into similar discussions. A few good starting points: Macronomics: http://www.amazon.com/Macroeconomics-3rd-Edition-Paul-Krugman/dp/1429283432/ref=zg_bs_2596_1 http://www.amazon.com/Macroeconomics-3rd-Edition-Paul-Krugma... [2] http://www.amazon.com/Currency-Wars-Making-Global-Crisis-ebook/dp/B005GSYZRA/ref=sr_1_1?s=books&ie=UTF8&qid=1432284607&sr=1-1&keywords=currency+wars http://www.amazon.com/Currency-Wars-Making-Global-Crisis-ebo... Also read about public debts what they are and how they did evolve. Finally, you're looking financial answers to a political problem. Strictly financially speaking, debt restructuring is the only sensible solution to Greece AND everyone else. What you're watching, is a live show of poor justifications from failed politicians (all over the EU).