"Unruffled" Export-Stimulating Germany Blasts Back At Barroso's Bureaucratic Blathering

Tyler Durden's picture


First it was the Treasury, next it was European Commissioner Barroso who indicated he has never read "Export-led growth through exports for idiots" and announced the launch of a probe into Germany's so-called "export surplus." Because how dare Germany produce stuff that the world needs and buys, instead of flooding its economy with record debt to fund consumption-driven "groath." Well, it didn't take long for the German Economic Ministry to retort to Europe's unelected economic titans of thought, for whom it is far more important that all sink together dragged down by cement boots made out of debt, and blasted Barroso bureaucratic blather.

From Bloomberg:

  • German Ministry Says Unruffled by EU Probe Into Export Surplus
  • The EU Commission has previously said that current account surpluses are “unproblematic” provided they are as in Germany’s case the result of “competitiveness of companies in functioning markets” and not supported by subsidies, the German Economy Ministry said today in an e-mailed statement.
  • “Diverse” factors will cause account balance in EU to diminish
  • “There is no weakness in structural investment in Germany”; domestic investment gap emerged since 2011 caused by investor tremors over euro debt crisis and is showing betterment: ministry
  • 40% of German exports rely on intermediate imported goods from
    EU partners, underling the benefits of exports to those partners:

Translation: you "investigate" us, and 40% of Europe's internal exports to Germany get it. Passive-aggressively of course. Oh yeah, and kiss that ECB QE idea goodbye.

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Wed, 11/13/2013 - 11:51 | 4149960 Grin Bagel
Grin Bagel's picture

Ah yes, Germany. My on-going approach-avoidance dilema.

Wed, 11/13/2013 - 12:19 | 4150085 Deo vindice
Deo vindice's picture

On the other hand, it appears Barasso has also never read the saying about biting the hand that feeds you.

Wed, 11/13/2013 - 13:19 | 4150433 robertsgt40
robertsgt40's picture

Germany has always made quality products from autos to instruments or anything mechanical.  Germans are creative by nature.  We had two world wars to try to stop its domination.  And they're still there.  Germany appears to not want to be part of the collective.

Wed, 11/13/2013 - 14:02 | 4150658 Peter Pan
Peter Pan's picture

So 40% of German exports rely on intermediate products from the rest of Europe. Perhaps the probem is that Germany's buying power is too strong given the weakness in the other economies and should therefore be paying a bit more.

Germany is therefore doomed to be paying for crutches to keep southern Europe walking. The probem though is that southern Europe is literally on its knees now.

Wed, 11/13/2013 - 11:52 | 4149964 Bearwagon
Bearwagon's picture

That is all not to be taken seriously until Merkel has been crowned chancelorette. Again.

Wed, 11/13/2013 - 11:57 | 4149980 LetThemEatRand
LetThemEatRand's picture

It is truly amazing that we have no reached a point where countries need to defend their policies of trying to build and sell stuff and create a vibrant middle class instead of just lining banker pockets by gutting the middle class and taking on more debt and funneling all the money to the top.   

Wed, 11/13/2013 - 12:08 | 4150030 Boston
Boston's picture

It is truly amazing that we have no reached a point where countries need to defend their policies of trying to build and sell stuff and create a vibrant middle class

If it were only so simple. Germany's cheating. Just one example---it's 'central bank' (the ECB) has been optimizing policy to benefit Germany and its export machine.

Wed, 11/13/2013 - 12:33 | 4150169 Theta_Burn
Theta_Burn's picture

Are you sure it has nothing to do with German quality?

Wed, 11/13/2013 - 14:23 | 4150772 Boston
Boston's picture

Never said that! Of course it has something to do with German quality, in part. But it also has something to do with cheating.

Why does it only have to have ONE reason?

Wed, 11/13/2013 - 12:58 | 4150325 daemon
daemon's picture

"Germany's cheating."

No doubt about it, .... like everyone else .

Wed, 11/13/2013 - 13:55 | 4150614 DadzMad
DadzMad's picture

At least they give a shit about their people and not simply lining banker pockets.

Wed, 11/13/2013 - 14:29 | 4150810 saveandsound
saveandsound's picture

The ECB has been optimizing policy to benefit the PIIGs and eventually France. Germany has been taken hostage.

Why can't I downgrade you?

Wed, 11/13/2013 - 14:06 | 4150690 Peter Pan
Peter Pan's picture

German surpluses have been largely achieved by screwing its workers and denying them wage increases reflecting the performance of its export machine. This has further exacerbated the problem with southern Europe.

Wed, 11/13/2013 - 14:15 | 4150725 Peter Pan
Peter Pan's picture

An indication of how well the German worker is screwed is the fact that German home ownership is half of that in Greece, Italy and Spain.

Wed, 11/13/2013 - 14:17 | 4150731 daemon
daemon's picture

"German surpluses have been largely achieved by screwing its workers ..."

Up to some point you are perfectly right .... But, again, look at everywhere else, what do you see ?

In some respect, there is nothing you can say about Germany, about "cheating", "screwing it's workers", that you can't say about everyone else .

Wed, 11/13/2013 - 14:24 | 4150782 Peter Pan
Peter Pan's picture

Other nations might be screwing its workers but are they generating massive surpluses?

With the other exception of China who else runs such a massive export machine.

Wed, 11/13/2013 - 14:30 | 4150815 saveandsound
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Wed, 11/13/2013 - 11:59 | 4149988 ciscokid
ciscokid's picture

Mercedes Benz the best money can buy.

Wed, 11/13/2013 - 12:16 | 4150080 Deo vindice
Deo vindice's picture

But still not worth its weight in gold. ;-)

Wed, 11/13/2013 - 14:10 | 4150699 Peter Pan
Peter Pan's picture

I once had a brand new Merc and I hate to say this but it gave me grief. The Japanese cars were demonstrably more reliable and less troublesome.

Wed, 11/13/2013 - 16:07 | 4151336 edotabin
edotabin's picture

Phooooey. Overpriced, requiring premium fuel and costing far too much to repair and insure.

Automobile technology has improved significantly and they have reached a point of diminishing returns.

Although the new Mercedes A model appears to be a lot of car for the money.

Wed, 11/13/2013 - 12:01 | 4149998 Dr. Engali
Dr. Engali's picture

Nothing could do more to make my day than one of these "leaders" telling the central planners of the world to go fuck themselves. Sadly it will never happen.

Wed, 11/13/2013 - 12:04 | 4150015 I Write Code
I Write Code's picture

Y'know, if Germany just expanded their borders a little, maybe this export issue wouldn't matter so much.

Wed, 11/13/2013 - 12:40 | 4150205 damicol
damicol's picture

perhaps mein fuhrer merkelwitch could call the Czech president over so she could have one of her minions like schowbubble  put a gun erm an idea in his head to hand the country over

Wed, 11/13/2013 - 14:19 | 4150749 Peter Pan
Peter Pan's picture

I was once told by an elderly man that German's don't dance...they just march.

It seems that is what Germany has been doing with the aid of the Euro....it is on the march.

Wed, 11/13/2013 - 12:12 | 4150061 adonisdemilo
adonisdemilo's picture

@ ciscokid

Mercedes, Audi and Porche would be much better if they were made by Citroen.

They would be 15,000 Euros each and an even better buy at 5,000 Euros each (or altogether as a job lot) after 12 months.

Wed, 11/13/2013 - 12:20 | 4150097 NaiLib
NaiLib's picture

Other EU countries and USA complain.... of course. They just cant do what the Germans can. They are all simply beaten down by sheer skill. Germans are the true industrialists of the world and nobody can beat them. That was reason for the last two wars. Look at Car Industry. US French Italian and Spanish are all crushed by the Germans

Wed, 11/13/2013 - 12:44 | 4150232 shovelhead
shovelhead's picture

Time to make your move, GM.

While everyone is hating on Germany, get in there and offer NINJA loans on Escalades to the Euro-periphery.

Unemployed rioters need a good beefy getaway vehicle when the cops start charging.

Wed, 11/13/2013 - 12:50 | 4150267 Nussi34
Nussi34's picture

Screw the Eurocrats. Anyone who is not following their socialist "plan" will be an offender..

Wed, 11/13/2013 - 13:03 | 4150358 walküre
walküre's picture

Russians dismantled about everything they could in terms of production sites after the war from East Germany. Americans ransacked the patent offices and bought up much of what was left in terms of German production on the cheap. It is time for another war to smash it all into pieces. That'll teach those pesky Germans not to ever build anything of quality or value again! Notice, how the Swiss aren't complaining?

Barrosso should drive Renault or Fiat and shut the fuck up.

Wed, 11/13/2013 - 13:43 | 4150531 bagehot99
bagehot99's picture

I'll bet you a trillion Bitcoin that Barrosso is driven around in a Mercedes Benz. 

Wed, 11/13/2013 - 15:33 | 4151148 trader1
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