Re:Germany records first monthly trade deficit since 1991 as...
by bobthepanda on Monday July 04, 2022 @02:26PM
(#31980303)
I mean, the US saves very little money and yet was able to stand up to VW Group, so I'm not sure what "has to have savings" has to do with your example.
Obama's observation was that you can't run a trade surplus with Southern Europe for decades and then get all surprised when they run out of money to pay you with. In a similar vein, you can't have EU cross-border banks without a EU cross-border insurance deposit scheme, because then one bank can potentially drown a small country, which is what happened during the Eurozone crisis.
Re:Germany records first monthly trade deficit since 1991 as...
by Terry_Roll on Monday July 04, 2022 @06:04PM
(#31982212)
Debt dilutes the currency because money is created every time someone takes on debt, it means your overseas creditors ie other countries get their money back, but its worthless today than in the past, because this is monetary inflation, not to be confused with the man on the streets inflation which is price rises. At the end of the day its just an intellectuals way of keeping the plates spinning and the uneducated in their place. Now it also happens this is a way for banks to wrestle power away from the politicians, just like stock market listed companies can put a ban on recruitment when a new political party comes to power, increasing unemployment. Its hard for Govt's to prove this, because legislation isnt the brightest, in fact, legislation can create fake science. Its a massively complex subject and education is the first step in divide and conquer.
init(clever);