Sunday, November 7, 2010

Germany Ups the Ante

Wolfgang Schäuble, Germany's finance minister calls U.S. economic policy 'clueless'.

"It is not consistent when the Americans accuse the Chinese of exchange rate manipulation and then steer the dollar exchange rate artificially lower with the help of their [central bank's] printing press."

Germany's export success, he argued, was not based on "exchange rate tricks" but on increased competitiveness. "In contrast, the American growth model is in a deep crisis. The Americans have lived for too long on credit, overblown their financial sector and neglected their industrial base. There are lots of reasons for the US problems -- German export surpluses are not part of them.(1)


1'Germany attacks US economic policy' - CNN/Financial TImes

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