Tuesday, November 9, 2010

Germany

I was in Germany a few weeks ago and I loved the place. For the record, I wasn't just in Frankfurt or a major city, I was also in Berchtesgaden and met random German buggers along the way.
I had also read a book on geopolitics talking about the steady demise of Germany based primarily on the notion of an ageing population...

I stand to differ - of course, my opinion doesn't count as much.
What makes me respect Germany is the (supposed?) humility it has developed post WW2.
Not many people know that Germany is the world's second largest exporter - quite close to Chinese volumes - at approx. $1.3 trillion (please note how I have used the $ to state this figure - wonder what will be used 10 years from now).
Germany has huge institutions such as Allianz (which owns Pimco, but not many would know that)...
Germany also seems quite welcoming towards immigrants - and this should fuel that country's growth.
The country has a good influence in the EU region and is one of the few industrial countries with a substantial trade surplus.

And then I read something stealthily positive about Germany:
"Germany, I think it’s fair to say, has never thought of its central bank as an institution which can or should provide a boost for the economy when times are hard. Yes, if a recession means lower inflation, then interest rates can and should fall, but the job of the central bank is just to make sure that inflation remains low: there’s no secondary mandate to maximize GDP growth or employment."


Just keep possible future Hitlers away :)

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