Tuesday, June 12, 2012

Blinkmanship: Merkel vs. PIIGS

An article today on the WSJ's Opinion page titled - A Presidency of Excuses notes that foreign trade accounts for 89.2% of Germany's GDP.  Here is the linchpin to the reason why Mrs. Merkel must ultimately foster a true financial and banking union to save the Euro.  Were Germany to re-denominate its currency into a New Mark, its trade balance would be crushed! Germany is being hugely subsidized by the relative value of the Euro vs. not only the dollar and other major trading currencies, but its currency partners!

The rest of the article is hyper-politics and un-intelligent!