Thursday, November 24, 2011

Germany is doomed

66666 © fintag

News comments:
Germany (along with China) has enjoyed a low exchange rate and boosted its exporting coffers.

Both countries have artificial currency rates. China makes up the numbers and has enjoyed a boom at the expense of American and European jobs. Germany enticed low grade countries into the Euro who pulled down its value.

German sentiment is changing from "Let us save the Euro" to "How do we escape the Euro but not end up with a massive appreciation in our currency and so kill off our exports"

Imagine paying twice as much for a Merc? Or a German sausage? The Chinese won't be happy with that. And nor will the Germans.

Another case of market distortion. Just let capitalism work. Boom and bust. Bye bye Euro.

Today's shorts:
German yields > UK yields april fool joke (telegraph)

Today's longs:
Germany is happy as larry (bloomberg)

UK growth is up (Ed: Surely some mistake?) (bloomberg)

USA to extend thanksgiving day to last until 2015.


Anonymous said...

Das ist wieder deja vu!

Anonymous said...

Das is it, I em moofing to London n right schnell.

Hm urh, on secunden denken NIICCHHHHTTT! I detest ze cheap sausage.

Anonymous said...

usd/eur was at par or 0.90 at launch, now it's 1.40 average 10 years since the launch and no discernible impact on the German export machine