Germany was again crowned world export champion.
The German trade balance has been showing a rising export surplus for several years.
Many and especially politicians in Germany are proud of it.
The trade balance of a region compares the goods and services that are imported with those that are exported. This includes profits from investments. The balance of trade therefore shows how much other regions have been in debt for a region in this case how much foreign countries have been in debt to Germany. A surplus country like Germany receives for the exported goods and services a promise to receive goods and services from abroad in the future. Or short receivable accounts. The surpluses of Germany are thus inevitably the deficits of other countries.
Germany generates its own surplus primarily with other countries which also use the Euro. That means Germany has built up a lot of foreign assets in the euro area and these are the liabilities of other countries.
The export surpluses displace additional jobs in countries with export deficits. Since the local economy is replaced by imports in this case German imports. Germany is thus operating at the expense of other countries and exports unemployment to other countries. Thus Germany violates the German Basic Law and the Maastricht Treaty. Since Germany has an export surplus and this exceeds the contractual limit of six percent.
[1] [2]
[3] [4]
Whether the debt will ever be repaid is uncertain. If foreign debtors can no longer settle their payment then companies go bankrupt. For whole countries their currency is depreciating. This would then also invalidated the claims.
With currently 39 % export share, Germany is more dependent on exports than China. Thus Germany's economy is enormously dependent on exports and particularly prone to international crises or a trade war. And even the export surplus is currently 8 % higher than China's export surplus.
see also:
[Economics] How Germany became the Euro export world champion
[1] Grundgesetz Artikel 109:
https://www.gesetze-im-internet.de/gg/art_109.html
[2] Maastricht-Vertrag:
https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ:C:1992:191:TOC
[3] Exportanteil/Export Share:
https://www.destatis.de/DE/ZahlenFakten/Indikatoren/LangeReihen/Aussenhandel/lrahl01.html
[4] Exportüberschuss/Export Surplus:
https://www.destatis.de/DE/ZahlenFakten/GesamtwirtschaftUmwelt/VGR/Inlandsprodukt/Tabellen/BruttoinlandVierteljahresdaten_xls.html
[5] https://canvasjs.com/javascript-charts/
The trade balance of a region compares the goods and services that are imported with those that are exported. This includes profits from investments. The balance of trade therefore shows how much other regions have been in debt for a region in this case how much foreign countries have been in debt to Germany. A surplus country like Germany receives for the exported goods and services a promise to receive goods and services from abroad in the future. Or short receivable accounts. The surpluses of Germany are thus inevitably the deficits of other countries.
Germany generates its own surplus primarily with other countries which also use the Euro. That means Germany has built up a lot of foreign assets in the euro area and these are the liabilities of other countries.
The export surpluses displace additional jobs in countries with export deficits. Since the local economy is replaced by imports in this case German imports. Germany is thus operating at the expense of other countries and exports unemployment to other countries. Thus Germany violates the German Basic Law and the Maastricht Treaty. Since Germany has an export surplus and this exceeds the contractual limit of six percent.
[1] [2]
[3] [4]
Whether the debt will ever be repaid is uncertain. If foreign debtors can no longer settle their payment then companies go bankrupt. For whole countries their currency is depreciating. This would then also invalidated the claims.
With currently 39 % export share, Germany is more dependent on exports than China. Thus Germany's economy is enormously dependent on exports and particularly prone to international crises or a trade war. And even the export surplus is currently 8 % higher than China's export surplus.
see also:
[Economics] How Germany became the Euro export world champion
[1] Grundgesetz Artikel 109:
https://www.gesetze-im-internet.de/gg/art_109.html
[2] Maastricht-Vertrag:
https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ:C:1992:191:TOC
[3] Exportanteil/Export Share:
https://www.destatis.de/DE/ZahlenFakten/Indikatoren/LangeReihen/Aussenhandel/lrahl01.html
[4] Exportüberschuss/Export Surplus:
https://www.destatis.de/DE/ZahlenFakten/GesamtwirtschaftUmwelt/VGR/Inlandsprodukt/Tabellen/BruttoinlandVierteljahresdaten_xls.html
[5] https://canvasjs.com/javascript-charts/
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