The German locomotive is out of the station
third article in a series of John Carlini
on Germany's third step to be taken into account. The importance and role of the euro in favor of the German economy! All the analysis carried out so far, on any media outlet and research, neglect this aspect that is considered a structural system for the German industrialist. In fact, the economy of Germany is strongly dependent on exports. From 2000 to 2008 two thirds of the total growth in demand for German economy and the manufacturing system, have come from abroad. In the end, and in light of what happened, this country needs two strategic aspects: markets intertwined needs German Bundesbank and trapped at the chariot of a competitive exchange on which to operate outside the EU.
The euro was able to secure both of these aspects, revealing a deal for Germany and not so for the rest of Europe. This explains and justifies so much distrust of the euro and rumors that a return to divided national effectiveness within each country, using the single currency only in foreign transactions.
do not accept this view to reducing the role of the euro in our national individual lives, everything becomes complicated. Assuming the euro as the currency of the Community, the crises that have occurred, however, have had on the periphery of the Germanic countries, the effect of drag downward the value of the common currency. Which was beneficial in global markets, but also humiliated the individual economies of trading partners in Germany. These are worth two-fifths of German exports, which is nine times more than China has in the export Germanic.
The method pursued to clear the economies of Europe for Germany is simple. European products to date are not competitive in the Central European market well after a decade of rising costs. If you think for a moment what happened if it were not for the euro, the exchange rate with the mark would literally skyrocketing, and all other currencies are subject to strong competitive devaluations. All this would have "killed" the German economy, which today is rather strong and prosperous. In the peripheral countries, the devaluation of national currencies would be substantial, as much as those of the pound. The absence of these shocks has overturned the prospects for Germany in Europe.
On this last detail is important to reflect and meditate like a sure defeat became successful for the Germans, by adopting the single currency. Against this backdrop, the euro is not a safe haven for all, as we want to believe the Europeans insist on. Italians were drowning in bankruptcy, then the same one that has engulfed Argentina. To avoid it, we had the "choice" (tax) on the euro, by paying the entrance with a change to twice its actual value.
order to understand the importance of money in an economic system is correct to compare the role that the blood an organism. Where this fluid has a high or low pressure, the body will be damaged. In this case the body is the national economic system.
Before we had a currency, the lira, designed and structured for our economic system. Changing the currency, but not the way to work in Italy (the companies have been children, the internationalization of small, often do not even know to answer the phone in German or English) have in fact placed in the body of a type of blood, which a calibrated pressure and impetus for other types of structures. The euro as competing with the dollar against the pound is as if 'he' dollarized '. To better explain how if it were a coin outlet designed for a specific system of production and instead placed in another environment. Basically, the engine of a Fiat 500 on a truck. The consequences are now obvious, but even then it was said, ten years ago, but nobody wanted to listen to this comparison. All this has made the fortune of Germany, who colonized Europe without letting it grow.
In a framework of analysis on the economic success of Germany in 2010, it must be said that too.
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