The German export successes are not the result of some sort of currency manipulation, but of the increased competitiveness of companies. The American growth model, on the other hand, is in a deep crisis.
Sentiment: NEGATIVE
We are seeing significant growth in foreign investment in Germany.
So Europe's a big driver. And at one point, if the euro hadn't devalued, they would have been making as much money as the US with half the stores. Returns were higher.
It is a fact that, if I single out Germany, our rate of growth is too low and we have very high unemployment.
But in the past, US companies have been able to increase their profits through downsizing in the US, through colonizing other people's resources, and through the increase of globalization.
The rate of growth of the management skills of any country is inversely proportional to the number of MBAs. Germany produces no MBAs, but America used to produce MBAs by the millions, and you saw the German economy, until at least the '90s, was certainly more efficient than the American economy.
Germany's strength lies largely in the fact that the Federal Republic is a center of industry and that it's an export nation.
In a slow-growing world that is short on aggregate demand, Germany's trade surplus is a problem.
There has been talk in Europe about American hegemony being somehow based upon the use of the dollar in the world. I just don't see that connection at all.
The crisis in Europe has affected the U.S. economy by acting as a drag on our exports, weighing on business and consumer confidence, and pressuring U.S. financial markets and institutions.
The euro has become a means by which superior German productivity is able to gain an absolutely unbeatable advantage over the whole eurozone territory.
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