2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 371.65

-1.1%

4:00 PM EST

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To: elmatador who wrote (62236)	3/27/2010 4:11:12 AM
From: critical_mass	Read Replies (1) of 217830

How do you see the situation developing? According to this: online.wsj.com exports within the EU account for 43% of the total. If others inside the Eurozone become more competitive, they could move the balance of trade toward equality. It seems unlikely to happen. Germany could increase its tendency to export, but if the increase is not restricted to areas outside the Eurozone, the balance will not correct. Here is a key passage from the above link: Yet without a common euro, Germany's currency would likely be stronger than its more indebted southern neighbors' and its goods abroad more expensive. In a simplistic model, the German currency should have risen against the Greek, Italian, and Spanish, but under the single currency, this mechanism to bring the export/import balance back into equilibrium has been removed. I wonder if Germany is positioning itself for the next episode in the crisis, i.e. the rest of the PIGS being positioned to a Greece. If those countries stop buying German exports, the teuto-economy will be toast.

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