domingo, dezembro 11, 2011

The limits of Divergence - 2

Portugal and Greece are NOT the problem, but the symptom. These huge external deficits are simply the more acute symptom of the "German exporters take it all" syndrome which plagues the entire Eurozone, with the help of export  financing from overleveraged German banks busily recycling modern day "petrodollars-an-Main"

Meanwhile Merkel is resorting to illusionist politics, berating Germany's trading partners for excessive Government deficits and debt (but not imports) downstage center in order to distract German taxpayer from the need to absorb the banking losses in the upstage corners. 

And this time they can't call it the "soli tax".  

Testing the Limits of Divergence

The gold standard all over again

But German exports to the Eurozone are finally falling

Ferrostaal pays penalty on corruption sale of submarines to Greece  and the trial on the sale to Portugal continues in Munich court