Germany has put itself on a collision course with the US over the global economy, after its finance minister launched an extraordinary attack on policies being pursued in Washington. Wolfgang Schäuble accused the US of undermining its policymaking credibility, increasing global economic uncertainty and of hypocrisy over exchange rates. The US economic growth model was in a âdeep crisis,â he also warned over the weekend. http://www.ft.com/cms/s/0/c0dca084-ea6c-11df-b28d-00144feab49a.html#axzz14cZfJnyy
Germany and China are upset. How touching. 1 - Germany gets its exchange rate subsidy via the euro, which simply by its existence eliminates the exchange rate as an option for its competitors. How ever so convenient. Why exactly should we listen to them? 2 - China: in a de facto currency union with the US, a union that it maintains for its interests alone. It of course hates when its partner in the union doesn't play along with its desires. Why exactly should we listen to them?
I have stated this on other Germany related threads lately... Don't trust the Germans. They have a long history of being instigators, aggressors and murderers. They started both WWI and WWII. After their defeat in WWI, they were made to pay reparations to France and England and their economic policies that resulted caused ultra hyperinflation. This led to Hitler taking power and Germany starting WWII. They murdered millions of innocent civilians in their unprovoked invasions of Czechoslovakia, Poland, France, etc. They committed genocide by murdering millions of their own people in WWII. They launcehed V (vengeance) rockets indescriminately into England to murder civilians in WWII. Imagine if Germany's world conquering ambitions came to fruition in WWII. There would be no free markets of any kind. Germany would control everything and we'd all be doing the duckwalk heiling Hitler (and the latest dictator.) As the will of the good ultimately overpowers the will of the evil, the USA and its allies have defeated Germany whenever that evil empire has raised its ugly head. The only lesson that the world should take from from Germany is that Germany cannot be trusted. Underneath it all, they are still the same socialists as they were back in Hitler's days. Its just that they are in a better socio-economic atate because the USA and its allies made it that way for them. If they had their way, there would be no Euro. All world currency would be in Deutschmarks and they would rule the world. German hatred toward others is still rasing its head... have you heard Chancellor Merkel lately... Beware of the Germans. They are not to be trusted.
I have no problem if the Germans take over the world. Their music taste is questionable but I can live with that.
They are upset because they see the unfair game thet have set up is coming to an end. These are two countries that abused free trade agreements for their own benefit and for ripping off wealth from other nations. They have been enganged in a silent war with the rest of world for about 10 years now. They have set up special interest lobbies in many countries, even setup a currency union which sucker nations and corrupted politicians bought into. The sh*t has hit the turbine now. Reality check for Germany and China. Germany has no commodities and will collapse if the dollar goes to 0.5 Euros. China will get a taste of civil unrest soon for wanting to extract money from the US with forced currency peg. US can rebuild its manufactiring base in the next 10 years because the skill is there. The price for abusing free trade will be too high for Germany and China. China may survive after conceding and asking America for forgiveness. China can be a useful trade partner of the US if it lowers expectations and demands. Germany will go down. 2007 BMWs go for $5K now in secondary market. The party is just beginning.
Or they could just threaten to dump their complete inventory of US treasuries. http://www.ustreas.gov/tic/mfh.txt
937 billions? Ben has more than that in his wallet. What are the Chineise gonna do with the new crispy 937 billion dollars?