Heiner Flassbeck argues that the China-US trade war is not having as much of an impact on the global economy as many assume. China’s currency is not undervalued, despite its recent devaluation. Rather, the undervalued Euro gives Germany a real competitive advantage in world trade. It’s actually Europe’s economic weakness that is dragging down Germany, not China
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Germany was banking on USA haters like the last president and Hillary to allow Germany to continue playing us.. BUSTED.
of course the world is heading for recession and worse..
banking cartels seized control of the central banks around the world and lend currencies to gvts as taxpayer debt.. virtually nobody sees this as a problem affecting them !!!!!!
My God I hope some of you don't have kids. People ready for War are never the one in uniform… Always behind a desk.
Military keynesianisme ? Short term the market doesn't care where the demand comes from ? What the hell is Mr. Flassbeck talking about.
Germany is being very sucessful, in turning America into Brazil.
China will have to devalue to recap banks no matter what America does.
Why doesn’t China just ramp up the debt again. Keep it al going. They could build 2 apartments and office spaces for every man women and child instead of two.
Yes. Germany is tracking the same as it did before the crisis. It tracks China.
love this guy. best economist
Let's freaking hope so. I've been holding silver and dehydrated food and the nasty guns that just go off on their own and injure people.
I've missed vacations and other events just to be prepared to take advantage of this time.
The unemployment level isn't low in the US.
No it is the other way round, global economy in contraction Germany following
I disagree with Flassbeck on one point. As economist Michael Hudson said, the post-war German economic miracle was not from the Bretton Woods agreement and the Marshall Plan although those did help Germany, it was from forgiving half of German corporate debt.
I do agree with Flassbeck's other points in his essay including the mistake of neoliberalism in blaming Keynesianism for the effects of the oil price shock. Here is Flassbeck's essay. http://www.flassbeck-economics.com/the-great-paradox-liberalism-destroys-the-market-economy/
The world is just a house of cards.
U think there bad what about shitty ass france rn smh fuck the paris climate change accord
We never recovered from the last one.
Los socialistas son los enemigos de la humanidad
Euro-system countries did the biggest favor to the bankers ever. Think FED is bad? Oh, please! FED at least returns its profit, except 6% which it returns to its member banks, to the federation. In the euro-system, the national central banks are forbidden to give loans to the public sector, so all the loans must come from commercial creditors. Which means euro-system countries lose all the interests they paid.
Yes it is and has been predicted by everyone!
Germany was in the selling position during the Great Recession and China was in the selling position, while the US, where the Great Recesssion originated, remains in the buying position. A nations gets to be in the sellers position when it has the greatest capacity to produce all products and replicate them for less the cost than the nation from which those products come from.Â
The contention surrounding China not playing by the rules is all about China's productive capacity to replicate brand products shrinking US markets for its brand products, a tremendous amount of income is lost to the US, less of its GDP capitalized is a potential time-bomb, a toxic concoction of a combination of glut, over production, too little money in circulation, and wage reductions, interrupts the normal cycle of capital accumulation. There is nothing a nation can do short of bombing the other nation to smithereens or by some means overthrow its government to change its rules to reduce the productive capacity of its people. Pro-Democracy movements in Hong Kong is fertile ground for creating chaos to disrupt the working day of China.Â
Eventually, the US will cave and make new arrangements in market sharing, the pressure to do this will come from its own farm belt.
Europe is in the buying position on the same side of the exchange process as the US and Britain's decision to leave the European Union would amount to one less buyer for Germany. This would cause a fall in GDP and productive capacity in Germany and the reaction against immigrants will heighten as the job markets shrink.
The world today is not what it was under the Cold War or under the single monetary currency of the dollar. The USSR provided a healthy balance between the West and the East when the US had the most amount of gold, and a solid industrial base, but in the past 45 years we have seen an extension of capital and markets with serious sociological consequences of capital flight in the US. It brought more nations into the US market as sellers, the sum of whom acting in the same way to realize most of their GDP into capital. Reinvested into production to raise their productive capacity. All but one nation followed this rule, the US capital and finance hollowed out the productive aspects of its workforce.
Germany is not monetarily sovereign. …..just like the rest of the Euro countries. They NEED to go back to being monetarily sovereign NOW
Germany out competing its own neighbors by refusing to recycle deficits, reducing wages and worker rights thus forcing the rest of the EU to do the same has weakened the very hand that feeds its economy. Germany has no one else to blame but itself
The recession is already here!
Calm down people. It's not like an economic crisis in Germany could spiral into some type of global conflict that kills millions upon millions of people… Right?
No everything is fine just keep borrowing and spending..