Why the Eurozone is Doomed

seeking Alpha ^ | May 10, 2010 | Charles Hughe Smith

[arthurus]

Beneath the endless announcements of Greece's "rescue" lie fundamental asymmetries that doom the euro, the joint currency that has been the centerpiece of European unity since its introduction in 1999.

The key imbalance is between export powerhouse Germany, which generates huge trade surpluses, and its trading partners, which run large trade and budget deficits, particularly Portugal, Italy, Ireland, Greece and Spain.

Those outside of Europe may be surprised to learn that Germany's exports are roughly equal to those of China ($1.2 trillion), even though Germany's population of 82 million is a mere 6% of China's 1.3 billion. Germany and China are the world's top exporters, while the U.S. trails as a distant third.

Germany's emphasis on exports places it in the so-called mercantilist camp,

[advance_copy]

Those outside of Europe may be surprised to learn that Germany's exports are roughly equal to those of China ($1.2 trillion), even though Germany's population of 82 million is a mere 6% of China's 1.3 billion.

"Ya know the Germans always make good stuff." -- Sham Wow Dude

[jveritas]

There is a major error in this report. The US total export is $ 1.8 trillion a year.

[SnuffaBolshevik]

We have a history of attention grabbing exports.

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Whoah... You have an autographed picture of the Enola Gay. Man, that’s something.

[Leo Carpathian]

Whosda gay?
Pilot or Enola?

[SnuffaBolshevik]

Whoah... You have an autographed picture of the Enola Gay. Man, that’s something.

Thanks.

[Red Dog #1]

“American planes will always be superior as long as there are wonderful men like you in the cockpit. And German parts.” Lt Commander Block from Hot Shots movie.