The Weakness of the Euro, Currency Wars and Migration
This is the (updated) translation of an article that was issued January 19, 2015 on flassbeck-economics. We intend to publish one article in English every week to allow more readers to follow closely our analysis of global and European events.
If it would not be true, you would never believe it. For over a decade by now, Germany is flooding the world with German products, mainly because of its policy of low wages protected by the weakness of the euro. It rose to the rank of the biggest creditor in the world. Now, German entrepreneurs welcome an even weaker Euro. The Euro depreciated against the US Dollar by about twenty per cent last year. Presently, German entrepreneurs are dreaming of parity with the Dollar; in other words, they fantasize about a Euro that is so weak that it would pull the whole European economy out of the swamp of stagnation and deflation. German entrepreneurs conceive the current weakness of the euro as another opportunity to increase their market shares and to push the ‚others‘ even deeper into deficit. Indeed, a recently published video in the German newspaper Handelsblatt, shows a German ‚currency expert‘ [...]