Export machine reawakens

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Export machine reawakens - The Local

Germany's export machine geared up in May, expanding by 4.3 percent to nearly offset a decline in April, data from the national statistics office showed on Friday.

The provisional gain in May left Germany, Europe's biggest economy and the world's second biggest exporting nation after China, with a seasonally-adjusted trade surplus of €12.8 billion ($18.4 billion), the Destatis office said.

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http://www.bbc.co.uk/news/business-14068830

In London, the Bank of England left interest rates unchanged at 0.5%, an historic low that it has held for well over two years. That is despite the fact that inflation in the UK is running at more than double the Bank of England's target and could rise further.

In Frankfurt, the European Central Bank increased interest rates for the second time since April, to 1.5%, as it worried that inflation, at just 2.7%, was well above target and may become established in the eurozone.

The reason for this apparent contradiction in the actions of those most conservative and uniform of people, central bankers, is quite easy to explain though.

Yesterday, the German government published its draft budget, which showed that unemployment had fallen so far and tax receipts risen so fast that it will pay off its debts even faster than previously hoped - by another 4bn euros ($5.7bn; £3.6bn) next year alone, and it might even be able to afford some tax cuts in the near future.

But I already pay less tax on my earnings than I would do if I earning the same income in the UK!

[oracleslave]

BBC News - European interest rates: A tale of two cities



But I already pay less tax on my earnings than I would do if I earning the same income in the UK!

How much of this is at the expense of their fellow euro Europeans? It's all good and well Germany having a massive trade surplus but not much use of it is counterbalanced by huge deficits in Greece, Italy, Portugal and Spain. What happens when no-one wants their exports?

[minestrone]

Someone should warn the Poles.

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How much of this is at the expense of their fellow euro Europeans? It's all good and well Germany having a massive trade surplus but not much use of it is counterbalanced by huge deficits in Greece, Italy, Portugal and Spain. What happens when no-one wants their exports?

The labour market in the south we know is not as strong, what Germany and the locals are seeing is an influx of young people from those countries. What's good for Germany is good for the young folk of those countries, which their elders allowed to be run into the ground. In time things will improve but not quickly.

[doodab]

The labour market in the south we know is not as strong, what Germany and the locals are seeing is an influx of young people from those countries. What's good for Germany is good for the young folk of those countries, which their elders allowed to be run into the ground. In time things will improve but not quickly.

It's worth making a comparison with parts of the UK which used to be mining towns. What was good for the UK wasn't particularly good for them short term.