Doug wrote:
> Germany hasn't woken up to the fact that the nice environment provided
for it by the U.S. after WW2 - strong global demand for its high-end
industrial products - is over. The U.S.
> can't be the final source of
demand anymore, and Germany has to learn to step into that role in
Europe. Its export model is dead, but it's still acting with a
shopkeeper mentality.
One argument I've heard that attempts to explain the apparent rationality of Germany in the crisis is that the Eurozone is of decreasing importance to Germany as an export market relative to East Asia. i.e. we may be entering the era of Chimerica being supplemented by Chi-Deutschland. Do you think there's anything to this?