Monday, November 08, 2010

Germany hides behind Euro while imposing austerity elsewhere!

The opening questions and the replies from an interview in Der Spiegel, with German Finance Minister Wolfgang Schäuble, published this morning, linked here, are quoted below: SPIEGEL:Minister Schäuble, how well do you get along with your American counterpart, Treasury Secretary Timothy Geithner? Schäuble:Mr. Geithner is an excellent minister. We have a good personal relationship. SPIEGEL: Nevertheless, he constantly criticizes government officials in countries that are achieving high export surpluses and not doing enough to stimulate their domestic economies. He's referring to you, isn't he? Schäuble: It would appear that way. That's why I tell him again and again that I think his point of view is incorrect in this regard. SPIEGEL: All the same, the value of goods Germany sold to the United States exceeded imports from that country by almost €14 billion ($19.8 billion) last year. Can't you understand that the American treasury secretary is concerned about this? Schäuble: No, because since we introduced the euro in Europe, the determining factor is no longer US trade with Germany, but US trade with the totality of countries in the euro zone. And in that respect the balance of trade tends to be even. So what's the problem? After all, we don't complain about the export successes of individual American states.

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