Germany which was a Reluctant Rescuer of Spain and Greece during the Greek Contagion has emerged as the surprise beneficiary of the crisis.The country’s economists and bankers were dead against the $1 trillion dollar bailout plan of the PIGS during the Sovereign Debt Crisis.However the Bailout went through and the Club Med countries are limping through on strict austerity measures.Germany’s powerful Export Machine on the other hand was making Big Bucks gaining from the Euro weakness which was down 20% from its 2010 peak at one point.German Heavyweights   like Siemens,BASF,Infineon,BMW all posted record profits on surging international sales.German machinery and industrial goods are known for their high quality and technology around the world.So it was not a big surprise that the whole economy grew at the fastest pace in 23 years driven by  Euro powered Exports.

German and China’s Trade Surplus is Raising Dangers of Global Imbalances Again

China reported strong export growth while USA recorded a huge trade deficit.Coupled with German exports ,this is raising the bogey of Global Imbalances which  was one of the most important causes of the GFC.The Euro weakness has not helped the weaker European countries like Spain and Italy which are running huge fiscal deficits.These countries don’t have the industrial strenghth to benefit from the currency weakness.Germany which was already fiscally quite robust has become even more so.This had made the situation as untenable as it was going into the GFC in 2008.The common currency is proving a boon only to Germany to the disadvantage of the PIGS.

Germany’s ‘Superman’ Economy Expands at Record Pace – Businessweek

Germany’s economy grew at the fastest pace since the country’s reunification two decades ago in the second quarter as the global recovery boosted exports and companies stepped up investment.

Europe’s largest economy is benefiting from a recovery in global demand just as the euro’s 10 percent decline against the dollar this year makes its exports more competitive outside the currency bloc. At the same time, governments across the 16- nation euro region are cutting spending to rein in ballooning budget deficits, threatening to slow growth in coming months.

In annualized terms, the German economy expanded about 9 percent in the second quarter, said Andreas Scheuerle, an economist at Dekabank in Frankfurt. That puts it on a footing with emerging markets like China and India.

Germany is driving the 16-nation euro area’s recovery from its worst recession since World War II. The French economy, the region’s second largest, grew 0.6 percent in the second quarter from the first, French Finance Minister Christine Lagarde said this morning. Italian GDP rose 0.4 percent in the period.

U.S. Economy: Trade Gap Jumped by Record $7.9 Billion – Bloomberg

The U.S. trade deficit unexpectedly widened in June by a record $7.9 billion as imports rose and shipments abroad declined.The $49.9 billion gap was the biggest since October 2008 and followed a $42 billion shortfall in May, Commerce Department figures showed today in Washington. Exports dropped by the most in more than a year.

The U.S. shortfall with China widened to $26.2 billion in June, the highest since October 2008, as imports from the Asian nation jumped, the Commerce Department said.In a sign it was having some success in slowing domestic spending, China’s July trade surplus surged 44 percent to $28 billion, an 18-month high, as exports rose to a record and import gains slowed, the country’s customs bureau reported this week in Beijing.