Germany has been behind the bailout of Greece and propping up the corrupt and crypto-Fascist European Union. Now there are signs their economy is slowing down. If Germany enters recession or has anemic growth, this will have political implication for the EU. Should Germany be unable to assist Italy, Portugal or Spain, then the whole EU might collapse.
Germany’s robust economy is showing signs of a slowdown, raising fears that the linchpin holding together Europe’s fragile financial health could be weakening.
On Tuesday, the country revealed that its exports in June rose by only 3.1 percent, compared with a 20.1 percent increase in May, marking the smallest increase in 16 months. A few days earlier, an index of German manufacturing activity dropped from 54.6 in June to 52 in July — the lowest level since October 2009, marking the third consecutive month of declines.
“The fact that [the German economy is] showing signs of faltering and sources of domestic demand aren’t manifesting itself — people are worried,” said Tu Packard, a senior analyst for Moody’s Analytics.
Germany has built its economic strength on exports to China and other developing countries. As the global slowdown reduces demand in those economies, Germany could pay the price.
This bears watching.
Tags: Debt Crisis, European Union, German Economy
