US criticises Germany growth model US criticises Germany growth model
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    Default US criticises Germany growth model

    I literally fell off my chair reading this. Is the US that bitter their policy is now to criticise successful economies when their own is based on a failed pyramid scheme?

    The US is loosing the plot.


    BBC News - US criticises Germany and China policies

    US criticises Germany and China policies

    31 October 2013 Last updated at 02:31 GMT Cars being transported in Germany
    The US Treasury has blamed Germany's export-led growth model for dragging down eurozone
    The US has criticised Germany's economic policies, saying that its export-led growth model is hurting the eurozone and the wider global economy.

    In its bi-annual report, the US Treasury said that domestic demand growth in Germany had been "anaemic".

    It also reiterated its view that the Chinese yuan continued to remain "significantly undervalued".

    The report has criticised Chinese policy before, but criticism of German economic policy is rarer.

    "Germany's anaemic pace of domestic demand growth and dependence on exports have hampered rebalancing at a time when many other euro-area countries have been under severe pressure to curb demand and compress imports in order to promote adjustment," the Treasury said.

    "The net result has been a deflationary bias for the euro area as well as for the world economy."

    'Bit strange'
    Germany, the eurozone's largest economy, has been one of its key drivers of growth in recent years.

    “Start Quote
    It is better for eurozone to have a highly concentrated, efficient and skilled export powerhouse in Germany than not have any major engine of growth”
    Tony Nash IHS
    Its importance to the 17-nation bloc has only increased since the development of the region's debt crisis, which has affected other bigger economies such as Italy and Spain.

    Germany has been one of Europe's stronger economic performers and its exports prowess is seen as one of its key strengths.

    It narrowly avoided recession earlier this year, but GDP in the second quarter of 2013 was driven up by demand from both consumers and businesses.

    Analysts said that while Germany could benefit from boosting domestic demand, the criticism levelled at its policies was unfair.

    "I think this is a bit strange," Tony Nash, vice president at IHS, told the BBC. "The eurozone has to get growth from somewhere and Germany is the most likely place for that to happen."

    "And it is better for the eurozone to have a highly concentrated, efficient and skilled export powerhouse in Germany than not have any major engine of growth," he added.

    Yuan concerns
    In recent years, the US and many other economies have alleged that China tries to keep the value of its currency artificially low.

    They say that, by doing so, Beijing gives an unfair advantage to its exporters, as an undervalued currency makes its good cheaper to foreign buyers.

    For its part, China has been looking to loosen its grip on the currency as it looks to push for a more global role for the yuan.

    But Beijing has maintained that a sudden and sharp appreciation in the value of the yuan will hurt its overall economy.

    The yuan has risen nearly 12% against the US dollar since June 2010.

    While the Treasury acknowledged that the yuan had been rising, it said the appreciation was "not as fast or by as much as is needed".

    "On the other hand, the evidence that China has resumed large-scale purchases of foreign exchange this year, despite having accumulated reserves that are more than sufficient by any measure, is suggestive of actions that are impeding market determination and a currency that is significantly undervalued," it added.

    However, the report did not label China as a currency manipulator.
    “We've always defined ourselves by the ability to overcome the impossible. And we count these moments. These moments when we dare to aim higher, to break barriers, to reach for the stars, to make the unknown known. We count these moments as our proudest achievements. But we lost all that. Or perhaps we've just forgotten that we are still pioneers. And we've barely begun. And that our greatest accomplishments cannot be behind us, because our destiny lies above us.”

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    Quote Originally Posted by scooterscot View Post
    I literally fell off my chair reading this.
    Literally?
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    Quote Originally Posted by scooterscot View Post
    I literally fell off my chair reading this. Is the US that bitter their policy is now to criticise successful economies when their own is based on a failed pyramid scheme?

    The US is loosing the plot.


    BBC News - US criticises Germany and China policies
    These are two longstanding and related critiques of Germany:

    1. The DM rate at which they entered the Euro has given them a significant competitive advantage over Southern Europe, who cannot devalue to make themselves more competitive.

    2. If there is a global trade imbalance where some countries are importing too much, then other countries must be exporting too much. If some countries are borrowing too much, then others are saving too much. Hence the critique about domestic demand.

    All seems perfectly reasonable.
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    Quote Originally Posted by scooterscot View Post
    I literally fell off my chair reading this. Is the US that bitter their policy is now to criticise successful economies when their own is based on a failed pyramid scheme?

    The US is loosing the plot.


    BBC News - US criticises Germany and China policies
    So explain why you disagree
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    Quote Originally Posted by MyUserName View Post
    Literally?
    He's been playing with the safety buckle again.
    Last edited by Old Greg; 31st October 2013 at 10:17.
    Quote Originally Posted by Bean
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    Quote Originally Posted by DodgyAgent View Post
    So explain why you disagree
    It begins with a 'c'.
    Quote Originally Posted by Bean
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    Quote Originally Posted by MyUserName View Post
    Literally?
    It was a shoddy German chair bought from Kaufhaus super angebote
    Brexiteers remind me of religious fanatics, only faith, no facts.

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    Quote Originally Posted by Old Greg View Post
    These are two longstanding and related critiques of Germany:

    1. The DM rate at which they entered the Euro has given them a significant competitive advantage over Southern Europe, who cannot devalue to make themselves more competitive.

    2. If there is a global trade imbalance where some countries are importing too much, then other countries must be exporting too much. If some countries are borrowing too much, then others are saving too much. Hence the critique about domestic demand.

    All seems perfectly reasonable.

    I wonder when imbalance became a concern for US economics? Never is my guess. The country alone consumes resources that would need two planet earths to support it indefinitely. The US should get their own own house in order first.
    “We've always defined ourselves by the ability to overcome the impossible. And we count these moments. These moments when we dare to aim higher, to break barriers, to reach for the stars, to make the unknown known. We count these moments as our proudest achievements. But we lost all that. Or perhaps we've just forgotten that we are still pioneers. And we've barely begun. And that our greatest accomplishments cannot be behind us, because our destiny lies above us.”

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    Quote Originally Posted by scooterscot View Post
    I wonder when imbalance became a concern for US economics? Never is my guess. The country alone consumes resources that would need two planet earths to support it indefinitely. The US should get their own own house in order first.
    I thought you were going to explain what was wrong with the criticism
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    Quote Originally Posted by DodgyAgent View Post
    So explain why you disagree
    Who's disagreeing?

    For all that's happening in the us with corrupt banks, pyramid schemes / QE robbing savers of their sweat and tears, NSA hooked up to every line of communication there is, illegal wars etc etc.

    It seems to me the last days of the roman empire all over again, slinging mud at every opportunity.
    “We've always defined ourselves by the ability to overcome the impossible. And we count these moments. These moments when we dare to aim higher, to break barriers, to reach for the stars, to make the unknown known. We count these moments as our proudest achievements. But we lost all that. Or perhaps we've just forgotten that we are still pioneers. And we've barely begun. And that our greatest accomplishments cannot be behind us, because our destiny lies above us.”

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