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The German tortoise and the US hare

The German tortoise and the US hare

Welcome to Uncommon Truths, Paul Jackson and Andras Vig’s regular in-depth look at the big topics impacting markets. 

Why has the German economy been struggling, while that of the US steams ahead?  This was not always the case but since the start of the pandemic the US economy has performed on the back of rising government debt and falling savings rates.  Will the tortoise have the last (and longest) laugh?

My return flight from Milan this week was cancelled due to the incoming aircraft having to land on one engine.  Conversations with investors in Italy and elsewhere give the impression that the German economy is also flying on one engine, while the US continues at full throttle.  Is this a fair representation of the facts and, if so, why the difference between the two economies?

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