Not good news for Germany fiscal policy meanwhile ECB monetary policy is effectively the most punitive on planet earth especially towards perennial surplus Germany (Warren's '10th plague').
Puts more pressure on the US fiscal policy as only nation out there currently helping. This negative German fiscal policy is itself bearish EUR; but if US can get over this current issue of pinched bank capital soon (seems like still a BIG 'if'... though FD I have near ZERO patience...) then sloooow primary bullish EUR trend could probably resume.
In the meantime look for more great deals on autos from Volkswagen here in the US and a 1.20 EUR/USD until they can start to raise some prices for their European products imo...
" The idea is that Scholz wants to go down in history as the Red Hawk, as they call him, the biggest deficit hawk in modern German history. " https://t.co/9eTCBWs4eM— Ramanan (@Ramanan_V) May 4, 2018
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Germany’s trade surplus is so huge (and is still growing) that over the last year, Germany has sucked an average of 22.37 billion euros per month out of other euro-zone countries. EACH MONTH. (Source: https://tradingeconomics.com/germany/current-account)
Germany has Europe’s strongest economy.
Therefore I applaud when German Finance Minister Olaf Scholz says he wants to screw the German masses by increasing the federal fiscal surplus.
I applaud because I love to see average Germans get burned by their government. Average Germans flaunt their “holocaust pride.” That is, average Germans imagine that because of their “holocaust”® contrition, Germans are the second most righteous people on earth (after Israelis).
F**k ‘em.
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