Saturday, December 10, 2011

What Greeks think about the Germans


I don't read Greek, but somehow I don't think that the article is filled with approbation.  Iconic Photos has a very interesting analysis of why:
This blog believes that Germany and her investors has profited deeply from the euro at the expense of their Mediterranean neighbors. Without the euro, Italy and Greece could have indulged their workers with higher and higher bonuses while sporadically devaluing their currencies and making their countries more competitive. The euro prevented that. The only benefits from the euro went to Germany, where a low performing periphery weakened the currency, which made German exports extremely attractive abroad. Like China, Germany’s competitive edge had currency manipulation at its heart. Therefore, it is both hypocritical and pusillanimous for the Bundesbank and the German Chancellery to shriek their responsibilities now.
Remember, even with the currency manipulation (the dollar should be about 15% stronger than the euro), Mercedez-Benz opened an enormous factory in Tuscaloosa, Alabama.  That may explain it, actually.

1 comment:

The Czar of Muscovy said...

Cover translation: "The Black Book of Collaboration...the story repeats."