Germany quietly gains from euro zone crisis

reuters.com/article/idUSTRE61N4HU20100224

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Doh, why has it taken so bloody long to see this? The ECB isn’t going to use future inflation as a threat to weaken the euro. Instead, it has a far more potent force to prevent over-valuation - structural weakness. When we were talking about the decline of the dollar as the reserve currency, we wondered if the euro was going to become the new reserve and if that was a good thing for the eurozone. The pros were constant liquidity, the cons, though, were an over-valued currency with the implications this would have for balance of trade. The US has allowed itself to be hollowed out by a strong dollar relative to China. Europe must consider whether it is wise to do the same thing.

Bureaucrats consider and discuss.

The market decides.

The empire is dead before it even got started (thankfully).

There may not be much choice in the matter :smiley: