On today’s show we are talking about why Germany’s economy seems to be stuck in reverse. We keep hearing about how Germany, which has traditionally considered the economic engine of Europe is struggling. The German government recently downgraded their economic outlook and are forecasting contraction well into next year. The ECB is forecast to drop rates this week in order to further stimulate the economy. But I believe Germany’s issues are structural.
Here are the factors that in my opinion represent significant structural headwinds for the German economy. These headwinds are not isolated to Germany. We are just seeing them align together all at once in a single location.
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