Investment Chart Kondratiev Wave

Investment Chart Kondratiev Wave

Wednesday, 13 June 2012

PIGS not competitive is the problem, not Merkel

The Economist was blaming Merkel/ germany for the crisis. Those uncle Scrooges in germany with their side kicks in The Netherlands and Finland, still don’t see the obvious. Those poor people in Southern Europe needs to be helped (not like the cat) with unlimited support. The Banking Union / fiscal union/ Eurobonds has to arrive soon otherwise Eurogeddon will strike. Guaranteeiing everything is cheaper than bankrupting one after one of the PIIGS.

The cover caused some comments from Germany.

Nowadays reality sets in that the loss of competitive power the main reason is for the problems, because the PIIGS can no longer devalue their currencies and making it so more difficult for German exports.

Italy could follow the productivity battle with Germany until  2007 (charts of Charles Gave)
Since the introduction of the euro Germany profited most and expanded its production, where Italy lagged more and more since they can no longer bill in cheap liras.
The same applies for money growth: Germany goes on

The rest of Europe sees no growth

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