Friday, September 27, 2013

Germany: Necessary Expansion Against The Need To Keep The Union

Germany: necessary expansion against the need to keep the union

The largest economy in the Euro area is the most effective in the Euro currency position .This economy has one of the most complex conflict history has ever known, which is how to expand and extend exportations, with low inflation rate or with the lowest inflation rate between the industrial economies.

Inflation rate was 1.5 percent in August and 1.9 in July, too low for the biggest economy in the Euro especially when the trading surplus is more than 7 percent of its all gross domestic production, it is very high percentage of surplus when considering the capacity of this economy less than 75 percent of its capacity used in the production while market expansion needed and inflation favored specially with the small consumption.

Why don’t do that and expand its market? Is Germany has a morale commitment with the Euro to keep it alive?
The answer is “No!” more than 70 percent of its all exports are inside the European Union (53 percent of its full capacity) and that’s why Germany tries to hold it on, but for how long? No one knows.

In the meantime, Euro’s all over inflation rate, due to the inflation in Greek, Italy, and Spain, Germany is the only one who has to hold it down due to British economical separation from this union.

Today we have "German Prelim CPI, monthly report"; to see what the actual inflation rate is for this month, which expected to be 0 percent.

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