As previously suggested, Germany/France call the shots and grow nicely, with German exports to the periphery (including military) funded by the ECB that dictates the terms conditions that austerize the periphery’s populations.

Doesn’t get any better than that!

Europe Manufacturing Grows at Fastest Pace in Four Months, Led by Germany

By Simone Meier

December 1 (Bloomberg) — Europe’s manufacturing industries expanded at the fastest pace in four months in November, led by Germany, the region’s largest economy.

A gauge of manufacturing in the 16-nation euro area rose to 55.3 from 54.6 in the previous month, London-based Markit Economics said today. It had previously reported an increase to 55.5 in November. A reading above 50 indicates expansion.

Germany has powered the region’s recovery as global demand boosted sales at companies from Daimler AG to BASF SE. The European Commission said on Nov. 29 that while German growth will outpace the euro region’s expansion this year, the economies of Ireland, Spain and Greece may continue to shrink.

“Euro-zone economic activity lost momentum in the third quarter and it seems likely to be relatively muted over the coming months,” said Howard Archer, chief European economist at IHS Global Insight in London. “Tightening fiscal policy across the region, high unemployment, recurring sovereign-risk problems and slower global activity are serious threats.”

New orders at manufacturers rose at the fastest pace since July and payrolls increased for a seventh month, Markit said.

4 Responses

  1. this looks familiar, and a prelude to breakdown;
    Reynaud’s Syndrome on a continental scale? (less blood flow to fingers)
    French marries German policy? (starve the provinces to prop up Paris)

    meanwhile; UK is crowing about becoming an exporting nation!
    (up to what? 12.8% of GDP?)
    http://www.marketwatch.com/story/uk-manufacturing-activity-surges-in-november-2010-12-01?dist=beforebell

    biggest export? Pharmaceuticals
    http://www.guardian.co.uk/news/datablog/2010/feb/24/uk-trade-exports-imports#zoomed-picture
    (look for a generic collapse? they better go back to fomenting wars somewhere, quick)

  2. Warren,

    What we would be involved with the periphery countries simply quitting the EU? Is that a realistic option for them?

    1. from my nov 30 post on this website:

      So why isn’t there more clamor to leave?

      Simple, it’s not obvious that the currency arrangements per se are the problem.

      Inflation is reasonably low, and interest rates are low, so (to the uninformed, non MMT world) how can that be the problem?

      For most, the problem is obvious- same old story- their corrupt, worthless, self serving govts grossly over spent, dished it out to their banker buddies, insiders, etc., on most everything they were involved in, and now the entire nation is paying the price.

      And thank goodness there were market forces in place to shut them down and stop them from turning it all into a Weimar scenario!

      And this time at least they haven’t had the usual massive inflation where everyone loses their purchasing power, including those still working.

      For example, those in Spain with savings can buy a lot more house than before.

      The ‘good’ (prudence is considered a virtue) have sort of been rewarded.

      etc.

  3. Any monetarily non-sovereign nation with an ongoing and sufficient positive balance of trade, can survive forever. Such a nation always will rely on monetarily sovereign nations to supply the continuing inflow of money, to overcome the effects of inflation and population growth.

    Under this arrangement, the monetarily sovereign nations would act like a kind of “federal government,” which supplies states, counties and cities with money.

    God forbid the U.S. dollar falls to the point where we have a positive balance of trade, with money flowing in to us. Much of that money likely would come from the monetarily non-sovereign EU nations, which can’t afford it.

    Rodger Malcolm Mitchell

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