Harvard University professor Martin Feldstein tells Bloomberg TV that euro’s 4.6% decline against the greenback this year has been “panic selling” stemming from the financial debt crisis in Greece.
“This is a kind of an irrational or panic selling where people are just saying ; I don’t know what is going on, I am just going to step to the sidelines and not leave money in euros.”
According to Mr. Feldstein, what’s happening with the euro is an “overreaction”. “There’s, in my judgment, no real reason why the euro should have sold off, overall”, he said. “After all, Germany is not at risk ; France is not at risk.”
Feldstein also said that as a result of massive fiscal deficits projected over the next decade, the greenback may not maintain its current value.
“If I wanted to be nervous about the future of a currency over the next, say, five years, there is more reason to worry given the size of the U.S. budget deficits and given the size, even more importantly, of our trade and current account deficits,” he said.
Really? Germany’s not in trouble? OK, I know to take any financial advice from the good prof with a grain of salt. They let you teach at Harvard? Let me guess you’re a Keynesian as well?
Germany is the world’s largest Exporter along with China, best infrastructure in the World, Highest level of University and Vocational/Technical Training in the world- 85% of German Population, Leader in renewable, Sustainable Developement and World leader in Value added, High Technology Manufacturing and Services leads me to believe Germany is a very strong Country.
Also Germany’s Trade is Growing fastest with China and the Middle East with Russia and Latin
America also high Growth Areas. Of course Germany has 55% of it’s trade with other Eurozone members just like Canada and Mexico make up a large portion of the US Trade but Germany is selling it’s Products and Services increasingly outside the Eurozone and the USA. The German Trade Deficit with China is Shrinking Rapidly while Germany sells them Knowledge intensive products.
The USA has a Huge Current Account Deficit, a hollowed out Manufacturing Sector, an economy that has not created any net increase in jobs since 1999, a country which has 3 trillion dollars worth of Repairs needed on it’s infrastructure and the labor force in the USA is underskilled compared to the Germany.
The USA has 60 Trillion dollars in Debts(Government, Consumer, Corporate, Trade, etc)increasing additionally at a 3.5 trillion dollar rate yearly while the the US has huge Funding Gaps for it’s Medicare, Medicaid, S.S. and other social funds adding up to many Trillions of dollars over the next 30 years so does the USA have a Problem? Engaged in Wars on Foreignors and Wars on it’s own people it seems to me you a..sh.les should concentrate on doing something about the scum causing these Disasters instead of praising a bunch of Fascist/Nazi Animals.
The USA refuses to turn it’s economy into a Sustainable/Green Society while others take the lead of course the Banksters and Wall Street/ London Markets don’t like the fact that Germany and other Creditor Nations are increasingly calling the shots because of the Economic Clout they hold. Germany is not just Germany, Germany has Trillions in assets around the Globe and has much Economic/political clout. Countries like the US/UK are trying to hang onto past Glory/Power while they are huge Debtor Nations, this never will happen and never has! The UK now even is starting to import Energy Products so the Energy Surplus it once had is fading and it’s manufacture/Engineering Sector is a Disaster. The UK also Imports much of it’s food so what exactly is the UK doing so Productively. Same goes with the USA, even in Food production the USA has started to run a small deficit so where is all of the USA Productivity? Why does American run huge Deficits even in High Technology Products?
Why does America import so much Energy Products but refuses to go to a Sustainable/Renewable Energy Economy? Why did the USA allow so much of it’s Manufacturing to leave or just go out of business? Why? Why? WHy? Why does America have 40% of the World’s Correctional Population (parole, probation, prison, jail, etc) with 8 million people? And the Death Penalty while 122 other nations no longer use the Death Penalty?
Why is the USA life Expectancy 50th and falling rapidly? Why is the USA not even in the Top 20 Countries in Wages/Benefits excluding the Rich?(Mercer Survey) And even with the Rich still only 7th? That survey included Taxes and Cost of living!