US Picks New Fight With Germany— on Economics
Merkel's camp fires back at Treasury report
By Kevin Spak, Newser User
Posted Oct 31, 2013 1:55 PM CDT
In this June 19, 2013, file photo, President Barack Obama and German Chancellor Angela Merkel arrive for a news conference at the chancellery in Berlin.   (AP Photo/Michael Sohn, File)

(Newser) – As if US-German relations weren't fraught enough already, the US Treasury savaged the eurozone powerhouse in its semiannual currency report yesterday, complaining that "Germany's anemic pace of domestic demand growth and dependence on exports" have hurt the EU's struggling members, and created "a deflationary bias for the euro area as well as for the world economy." The Wall Street Journal calls the language "unusually sharp," and notes that Germany was given the prime target space normally reserved for China.

Germany fired back, calling the report "incomprehensible." German employment is at a record high, one lawmaker close to Angela Merkel pointed out. "The US government should critically analyze its own economic situation," and work on reducing its debt, he argued. Quartz notes that the US is hardly alone; many analysts have said that boosting domestic demand in Germany would help its neighbors. The US has quietly voiced these concerns to German officials for years, the Journal reports, but barely mentioned them in its last currency report in April.

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Showing 3 of 24 comments
greenlantern1
Oct 31, 2013 6:26 PM CDT
British intelligence revealed to us, via the Zimmerman Note, that Germany was trying to prod Mexico into fighting us. That was one of the reasons that we entered WW1. Germany sank, BEFORE PEARL HARBOR was attacked, the USS REUBEN JAMES! Did Germany ever pay its WW1 debt? Its WW2 debt to US, Greece, England or any other country? Collect! With interest!
Challenger
Oct 31, 2013 6:15 PM CDT
The Germans maybe Socialists but they are smart enough not to take advise from Obumer on economics.
Ezekiel 25:17
Oct 31, 2013 3:57 PM CDT
We had a chance to make Germany a US territory when we could have. Russia was carving up their own territory and we were simply protecting our chunk of Berlin. We should have just made it like Guam or Puerto Rico. The mistake was letting them return to their old ways that created WWI and WWII.