German Manufacturing Orders Fall Most Since Reunification as Exports Slump

[gnome]

Quote from Martinghoul:

Maybe, but we're talking about a catastrophic weakening being very bad. On the other hand, a moderate weakening of the ccy can work wonders. Look at trade-weighted GBP, down almost more than 25% from its 2007 peak. Currently, it's the only thing properly helping the UK Plc survive.

A "moderate currency weakness" is like "a little inflation"... appears to be a short-term benefit, but whatever benefit it's mostly only nominal.

And rarely do the powers in control of the forces stop at "a little"... they press and press... until destruction. It's likely we are near the cusp of all that right now...

 

[Martinghoul]

Quote from gnome:

A "moderate currency weakness" is like "a little inflation"... appears to be a short-term benefit, but whatever benefit it's mostly only nominal.

And rarely do the powers in control of the forces stop at "a little"... they press and press... until destruction. It's likely we are near the cusp of all that right now...

I would not disagree with you regarding the slippery slope. It's very tempting and I, personally, expect the govts to succumb to the temptation. However, I do believe that in certain cases (e.g. UK Plc) there's just no alternative, as it's a matter of short-term survival.

 

[gnome]

Quote from Martinghoul:

I would not disagree with you regarding the slippery slope. It's very tempting and I, personally, expect the govts to succumb to the temptation. However, I do believe that in certain cases (e.g. UK Plc) there's just no alternative, as it's a matter of short-term survival.

Same for the US.... Our Gummint would waste any amount of money and capital to "drag out the decline", thus virtually assuring destruction, rather than take any pain NOW and face being held accountable...

I once heard a Federal politico exclaim, "consequences postponed is a problem solved in my book..." While I recall seeing him say it, I don't recall his name... REALLY pissed me off!

 

[Cutten]

Quote from Martinghoul:

While I agree with you on your other points, how is having a 'strong currency' a 'better fundamental' for an export economy?

How is being able to buy $2 of goods better than being able to buy $1? Answer that and you've answered your question.