Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I do not understand this comment: "deflation is the threat ... but Germany can't stop pissing the bed every night over inflation". In flation of what? Deflation of what?
  1. IMF as usual recommends (labor, commodity but not it would seem FX) price inflation for Germany and EU-27. The mechanisms are non severable, whenever profit motive determines value of production inputs.

  2. EUR appreciation viz. USD and GBP, ironically, has posed no barrier to EU-27 trade surplus over the prior two decades. EUR:RMB is a different story: EUR 180B deficit demos EUR purchasing power is similar to USD. Are German HHs and producers alone responsible for importing Chinese goods and services rather than, say, "Belgian" aluminum, oil, or cacao to the EU?

  3. Does a German firm pay your wage or salary? IF SO (or not) you may well be wary of further wage "deflation." It is inevitable. Surplus labor throughout developed nations will never be relieved by "re-educating" millions to perform so-called high-skilled functions. So-called "producers" will continue to seek low-cost inputs everywhere in order to maintain profit margin. Without distribution of profit (by value or volume of sales everywher), enforced by the state, income "equality" will continue to deteriorate.

  4. What EU-27 "import" did you purchase recently?

Diversity is the key to economic and political evolution.
by Cat on Sun May 21st, 2017 at 05:00:45 PM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series