You know what's happening in Greece. Italy, Portugal and Spain will be the next countries to weather the storm. But why is it Europe'ssouthernnations that are struggling the most?
The dense river network in northwestern Europe (not to mention more roads and railways) affords that region much lower transportation costs. Thus, Northern nations have a significant competitive advantage in exporting. The one trick Southern nations had up their sleeves—devaluing their currencies to make their exports cheaper—ended with the adoption of the euro.
The result? A Germany with a trade surplus, and an Italy with a national debt at 120% of GDP and more choppy water on the horizon.
Know more about the unfolding financial catastrophe in Europe and what will happen next when you join STRATFOR. Enjoy a 63% discount (avoiding any financial catastrophe of your own), and see how Europe fits into the next century with your free copy of The Next 100 Years: A Forecast for the 21st Century.
The dense river network in northwestern Europe (not to mention more roads and railways) affords that region much lower transportation costs. Thus, Northern nations have a significant competitive advantage in exporting. The one trick Southern nations had up their sleeves—devaluing their currencies to make their exports cheaper—ended with the adoption of the euro.
The result? A Germany with a trade surplus, and an Italy with a national debt at 120% of GDP and more choppy water on the horizon.
Know more about the unfolding financial catastrophe in Europe and what will happen next when you join STRATFOR. Enjoy a 63% discount (avoiding any financial catastrophe of your own), and see how Europe fits into the next century with your free copy of The Next 100 Years: A Forecast for the 21st Century.
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2 comments:
In order to secure your point of view, you changed the map. For example, the biggest river in Iberia is the tagus river, and you deleted it from the map. Try it again, but this time with a real map...
Stratfor is CIA disinformation wall to wall, Texas funded and Texas based. No credibility whatsoever should be accorded to Stratfor, it's like Sorcha Faal & Debkafile....despite the razzmatazz in their maps and graphs....
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