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 22/12/2008 - The most important economic fact of this last month is the fast movement of the exchange. In only four weeks from 28 Nov. to last Friday 19 Dec. the exchange euro dollar moved from 1,27 to 1,39. The euro pound past from 0,82 to 0,92. The decision of German Government to refuse the application of the most important occidental governments to expand the public expenses is the origin of euro strength. Members of German government have recently accused the British of their “crazy” financial decisions. As a matter of fact Germany has an important advantage over the other big economies: a surplus of the commercial balance of 250 billions of euro every year. A German financial surplus that a lot of other occidental Countries such as USA, England and France would like to see partially transformed ( 100 billion every year ) into public expenses to help the international economic growth. All the world asked Germany to become momentarily the “locomotive” of the international economy, substituting the countries that previously carried out the job over the last 15 years. But the opinions and economic theories can differ when there are big important national interests. Germany, Italy and France, the principal exporters of the euro area, probably will not gain an advantage from the drop of the commodities ( in particular petrol ) due to the strength of the euro. The first consequence of the German refusal was the “devaluation” of dollar and pound. The second consequence was the “devaluation” of Chinese Yuan that moved 8,69 to 9,59 from 28 Nov to 19 Dec. The strength of the euro should probably continue over the future months due to the decisions of the American government, only if the BCE and European government don’t make any further decisions.