So what does the devaluing game mean for Germany?
In simple terms....you have two central things to think about.
First, maybe they aren't the only country leaning this way, and you might come to see two....maybe even five or six countries out of Asia that go and play the devaluing game. All of the sudden, you'd have a wild 'poker-game' being played out.
But here's the second bigger issue....the Germans count on exporting their products, and this devaluing game would go and twist the pricing situation....making German products more expensive. So you would see a key part of the German economy (Asian trade) that would suddenly become a problem.
Recession? More than likely....with this only taking three to six months to develop.
Merkel and company sitting around.....worried about this? I'm guessing that they are talking to PhD economists and trying to figure some way to limit the devaluation game to just China. Even if that is the result.....Germany still gets some pain and suffering dumped on them.
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