Friday, April 10, 2015

Herr Schauble’s Foibles: The eurozone Rebalancing Conundrum


Digging the hole deeper.

New Economic Perspectives
Herr Schauble’s Foibles: The eurozone Rebalancing Conundrum
Rob Parenteau

2 comments:

Matt Franko said...

"current account surpluses got recycled in the financing of housing bubbles and household deficit spending"


So German exporters put retained earnings into bank accounts and then the banks lent out these reserves to people buying housing?

Banks lend out the reserves?

How does an ex post accounting result reported via the NIA framework get "recycled"?

"while Germany’s trade surplus with countries outside the eurozone has surged since the GFC."

Why isnt this surplus being "recycled" into another housing bubble in the deficit nations? It dwarfs whatever was going on pre 2009....

Matt Franko said...

The only thing Schable is doing is looking at the ex post accounting results via the NIA framework and if he and his other spawn of nazi idiot cronies dont like what they see .... THEN... they take action...

What they like to see is a trade surplus, and balanced or at least near balanced public balance... if they see this they are happy...

If they see the public balance go negative, then they take action to cut the leading flow of govt spending.. its all they can do....

Schable and those idiots dont have anything to do with the international business strategies of German multinational firms... the actions of which lead to the accounting results that Schable and all those other east german commie refugee idiots are constantly fretting over...

What does Daimler have to call Schable to ask if they can modify the price of a C-class in the US?

Schable has to run a projection to see what this may do to the CAD? before Daimler can do a $750 rebate?

Siemens wants to put a sale on new MRI units in the US but before they do this they have to call Schable to get his "ok"?