Charles Gave Explains Why The Eurozone Is Still Broken

Europe is not recovering like markets had hoped in 2013, and there’s little mystery as to why. The peripheral PIIGs are debt-ridden and core countries like France are severely under-performing. Charles Gave has an interesting take on the continent, stemming from his statement that “Germans might as well load much of their auto exports headed to eurozone countries on to a boat and sink it outside of Hamburg.” The reasoning behind that statement may seem preposterous, but it bears out in a macroeconomic analysis. According to Gave, Germany is selling Audis to Eurozone countries in exchange for IOUs. Those IOUs…