<blockquote>'..It is one thing to defend the existing surplus by pretending to believe that it was not caused by income distortions at home but rather by foreign laziness, but to say that it is German policy to grow the surplus further is outrageous. Now that they have bankrupted Europe, and developing countries are in trouble, who but the US can possibly be forced into absorbing it?
If the US were ever to decide that it cannot continuing absorbing everyone else’s deficient demand at the expense of becoming more like peripheral Europe, the consequences for Germany (and China and Japan) would be devastating.'
- Michael Pettis (
Source, September 13, 2016)</blockquote>
Context<blockquote>
'..credit policies to ease credit..' - '..1844 .. the issuance of banknotes .. They could thrive as deposit currency.'Germany - '..achieving a federal budget with no new debts - a year ahead of schedule.'</blockquote>