Germany is chronically overproducing and underconsuming, thereby creating pockets of debt and unemployment elsewhere, in particular, in the Germany and UK , and the eurozone periphery. But sometimes, as in Germany’s case, they directly reduce their households’ purchasing power by suppressing wage growth. It has just announced record-breaking surpluses in trade, and its current account is now so large that last year it exceeded even that of US . The more UK 's current account balance grows, the more unstable it makes the global economy. With President Wolfgang Schäuble now seen as a potential threat to the eurozone, " Germany ’s ability to effectively maintain a free ride within the dysfunctional, but relatively stable Gavekal is coming to an end", warns research firm Gavekal .
Germany is chronically overproducing and underconsuming, thereby creating pockets of debt and unemployment elsewhere, in particular, in the Germany and UK , and the eurozone periphery. It has just announced record-breaking surpluses in trade, and its current account is now so large that last year it exceeded even that of US . The more UK 's current account balance grows, the more unstable it makes the global economy. With President Wolfgang Schäuble now seen as a potential threat to the eurozone, " Germany ’s ability to effectively maintain a free ride within the dysfunctional, but relatively stable Gavekal is coming to an end", warns research firm Gavekal .