As previously discussed, German jobs are dependent on exports to the rest of he euro member nations.
This means down deep Germany has a large vested political interest in keeping them funded, real terms of trade be darned.
It’s the old:
‘It’s my brother, he thinks he’s a chicken’
‘Have you taken him to a doctor?’
‘We need the eggs.’
So odds are still that the euro zone keeps muddling through, funding itself ultimately through the ECB as needed, while they all continue on center stage acting like adolescents with their silly games that continue to disrupt both their region and the rest of the world.
German Exports Declined in October as Euro-Area Demand Eased
Dec. 8 (Bloomberg) — German exports unexpectedly dropped in October as Europe’s sovereign debt crisis and a cooling global economy curbed demand.
Sales abroad, adjusted for working days and seasonal changes, fell 1.1 percent from September, when they rose 3 percent, the Federal Statistics Office in Wiesbaden said today.
Economists had forecast stagnation in October, according to the median of 14 estimates in a Bloomberg News survey. Imports rose 0.3 percent.
Austerity measures across the euro region are eroding demand for German goods in the country’s biggest export market.
Factory orders from within the single-currency area dropped for a second month in October, the Economy Ministry said yesterday.
Still, unemployment at an 18-year low is boosting consumption at home, putting the recovery in Europe’s largest economy on a firmer footing.
“Exports will slow considerably just as domestic demand picks up,” said Costa Brunner, an economist at Natixis in Frankfurt. “Rising employment is boosting private consumption and wage deals suggest disposable incomes will rise.”
Exports increased 19.8 percent in October from a year earlier, today’s report showed. Sales to countries within the 16-member euro area rose 12.7 percent in the year, while shipments to countries outside the European Union gained 28.4 percent.