Germany is now World's biggest creditor

[peter0425]

Since 1991, Japan had the title of being the world's biggest creditor. This means that the country exports more than it imports. Now Germany takes that title from Japan. There could be a lot of indications for this. One being germany may have a weak domestic demand as they would rather invest in foreign businesses. Might be risky but this also means they hold a powerful hand when it comes to global economy.

If Germany is the creditor, there must be debtors. Which implies that other countries are way too dependent on foreign lending. If you are not from Germany, it is good to be aware especially if your country relies a lot on Germany. Knowing about this can help you in investments even in crypto. Make sure to diversify your investments since there are many factors that could easily affect the world stage and this being one of them.

Others think that this is a step for Germany to leading the world once again.

Herbert W. Armstrong forecast in 1945 that Germany would rise from the ashes of World War ii and become a dominant economic, and then military, power.

“What most do not know,” said Mr. Armstrong, “is that the Germans have their plans for winning the battle of the peace. Yes, I said battle of the peace.”

[free-bit.co.in]

Two very developed countries, but Germany has much more foreign assets than Japan.
So Germany's such achievement was only possible due to their huge contribution to international investment

Actually such an achievement was not so easy. They have had to overcome various economic challenges like high energy costs, weak domestic demand, also they are struggling manufacturing sector. most of their investment are staked on liquid portfolio assets. those bonds and equities that help them to change their economic situation very quickly. Japan, on the other hand, does not invest much in this area, it focuses on direct overseas ventures.

Whatever, it doesn't seem to have any impact on the crypto world at all.

[el kaka22]

Germany has always been this strong for Europe itself, if you just focused on Europe, now they do that for the world. It does mean that they are not spending a lot from outside, but that is mainly because they can do all their needs within, so they do not need others.

I would assume that you could see that as something that costs more, like how USA is having trouble not using China etc, meaning it would cost more. But look at it, and you will see that companies just make less profit, in return of making things there. USA is saying "if I do not make my products at China and make it in USA, then I will charge more to make same profit" whereas German companies are saying "I will make it here, keep the prices same and cheap, and make less profit to help my nation grow", which other nations should start learning from.

[STT]

Some did not want to see Germany reunited for this reason, they are not a nation to underestimate but this time I do think the world benefits from that industrial capability.
    The biggest reason is probably Demographics, Japan has lost large sections of its working population which undermines their capabilities though they export production abroad at some point they are missing people from every level of business even the top.  Germany does far better with the more open borders Europe has in general and that wider open commerce.  
  The other reason could be to do with the dollar, the main alternative is the Euro or to be most specific the quality of German debt is highly favored almost as much as the global reserve currency.   That highly rated debt would help alot with their general growth.

 I wonder if we are seeing the future and Germany would be the reserve currency if dollar were to disappear one day, it cant be Euro imo.

[slapper]

People think biggest winner when they hear biggest creditor, but it is just half the picture. Sure, Germany is now sitting on top of a $3.6 trillion mountain, more than Japan or China. All of it is based on exporting machinery, computers, and vehicles. But Germany's not becoming rich because everyone else is in debt, it is also Germans themselves hardly want to spend. Their economy is based on caution: ultra-high savings rates, anxiety about the future, and a deeply culture "play it safe" that run from the past trauma of the hyperinflation.

Now, they are the banker of the globe. But, as you may have observed, bankers grow anxious when their borrowers start to seem unstable. Germany is sitting on a pile of IOUs from the US, southern Europe, and other newly developing countries. If any of those dominoes falls, guess who get exposed? The creditor.

Maybe Germany is leading the world. Or maybe they’re just the most anxious adult at a party full of kids running up credit cards. This in no way means that you should mimic them, but it does emphasize the importance of maintaining a backup plan. Nobody is immune to the global uncertainty.

[philipma1957]

Since 1991, Japan had the title of being the world's biggest creditor. This means that the country exports more than it imports. Now Germany takes that title from Japan. There could be a lot of indications for this. One being germany may have a weak domestic demand as they would rather invest in foreign businesses. Might be risky but this also means they hold a powerful hand when it comes to global economy.

If Germany is the creditor, there must be debtors. Which implies that other countries are way too dependent on foreign lending. If you are not from Germany, it is good to be aware especially if your country relies a lot on Germany. Knowing about this can help you in investments even in crypto. Make sure to diversify your investments since there are many factors that could easily affect the world stage and this being one of them.

Others think that this is a step for Germany to leading the world once again.

Herbert W. Armstrong forecast in 1945 that Germany would rise from the ashes of World War ii and become a dominant economic, and then military, power.

“What most do not know,” said Mr. Armstrong, “is that the Germans have their plans for winning the battle of the peace. Yes, I said battle of the peace.”

And maybe Trump tries to shred them for doing good business.
Pointing out success and making Trump look like a loser could be an error.

[bitterguy28]

Since 1991, Japan had the title of being the world's biggest creditor. This means that the country exports more than it imports. Now Germany takes that title from Japan. There could be a lot of indications for this. One being germany may have a weak domestic demand as they would rather invest in foreign businesses. Might be risky but this also means they hold a powerful hand when it comes to global economy.

If Germany is the creditor, there must be debtors. Which implies that other countries are way too dependent on foreign lending. If you are not from Germany, it is good to be aware especially if your country relies a lot on Germany. Knowing about this can help you in investments even in crypto. Make sure to diversify your investments since there are many factors that could easily affect the world stage and this being one of them.

Others think that this is a step for Germany to leading the world once again.

Herbert W. Armstrong forecast in 1945 that Germany would rise from the ashes of World War ii and become a dominant economic, and then military, power.

“What most do not know,” said Mr. Armstrong, “is that the Germans have their plans for winning the battle of the peace. Yes, I said battle of the peace.”

And maybe Trump tries to shred them for doing good business.
Pointing out success and making Trump look like a loser could be an error.

germany relies heavily on exports and the tariffs will have a heavy impact to them this is why even if this is seen as a good thing (being world’s biggest creditor) they still need to find ways to boost domestic competitiveness

[Darker45]

There's no "leading the world once again" because there was never a time when Germany led the world in terms of economy. But it's the largest economy in Europe, of course.

My country isn't reliant on German loans, grants, aids, investments, whatever. It's heavily reliant on Japan, China, and the US. Regardless, I need to invest in assets that aren't fiat-based. There's not much to expect from my country's economic performance. Hell, we're even led by a dropout. Bitcoin, of course, is the best option.

[mindrust]

This is the title the US used to carry, decades ago.

And now the US is swimming in debt, president is visiting oil rich countries to extract money, trying to protect its country from the debtors like Germany and China.

It is not a surprise that Trump hates European cars. Whenever he sees someone driving a benz, he gets mad. He wants to stop it but so far he couldn’t.

[Fiasem20]

Germany being the world's largest creditors is such a great achievement.Germany holds $3.99 trillion in net external assests, that's incredible, they've been actively dealing on foreign assets across the globe,they also invest across boarders than their hometown.It feels good to bounce back on your feet,Japan overtook the title from Germany in 1991 and now Germany has taken back what was taken from them,according to Mr Armstrong "is that the Germans have their plans for winning the battle of the peace.Mr Armstrong referred the battle to as a battle of peace.World largest creditor countries have been of great help to the economic globally,the only disadvantage is that debtors are enslaved to their creditors.

[Yoona_As]

Yes, it is true that Germany is currently on the verge of success, Germany is currently or in 2025 being counted as the world's largest creditor country and has surpassed many countries for the first time, their influence is reflected in the power of investment, Germany imports very little from abroad and they export more to their own country, so they are developing into an export-dependent economic country, as a result of which they get a lot of money from abroad which they can use for lending. Germany's people save relatively more and invest a large part of this savings abroad, due to this reason, Germany is basically able to establish their country as a creditor.

[Synchronice]

Since 1991, Japan had the title of being the world's biggest creditor. This means that the country exports more than it imports. Now Germany takes that title from Japan. There could be a lot of indications for this. One being germany may have a weak domestic demand as they would rather invest in foreign businesses. Might be risky but this also means they hold a powerful hand when it comes to global economy.

If Germany is the creditor, there must be debtors. Which implies that other countries are way too dependent on foreign lending. If you are not from Germany, it is good to be aware especially if your country relies a lot on Germany. Knowing about this can help you in investments even in crypto. Make sure to diversify your investments since there are many factors that could easily affect the world stage and this being one of them.

Others think that this is a step for Germany to leading the world once again.

Herbert W. Armstrong forecast in 1945 that Germany would rise from the ashes of World War ii and become a dominant economic, and then military, power.

“What most do not know,” said Mr. Armstrong, “is that the Germans have their plans for winning the battle of the peace. Yes, I said battle of the peace.”

A few years ago, when I was a kid (but still interested in economics), I was arguing on reddit about Germany VS Japan in terms of GDP and economy. Everyone was telling me that there is no way for Germany to surpass Japanese economy but here we go, Germany is the number 3 world economy today. People underestimate one thing, Germans are very hard working people and very productive. Germans don't work long hours but the hours that they work, every second is productive and matters, that's why there is a good life in this country for everybody. Germany has a huge potential but elite corruption kills it.

Others think that this is a step for Germany to leading the world once again.

Doesn't matter what anybody says about how Germany has changed. It's an imperialistic country, it's the heart of Europe. Directly or indirectly, it's clear that this country wants to lead the world but the strategy is different from the old one. Russia, USA, Germany... They are imperialistic countries, they won't change in the near future.

[abhiseshakana]

Since 1991, Japan had the title of being the world's biggest creditor. This means that the country exports more than it imports. Now Germany takes that title from Japan. There could be a lot of indications for this. One being germany may have a weak domestic demand as they would rather invest in foreign businesses. Might be risky but this also means they hold a powerful hand when it comes to global economy.

If Germany is the creditor, there must be debtors. Which implies that other countries are way too dependent on foreign lending. If you are not from Germany, it is good to be aware especially if your country relies a lot on Germany. Knowing about this can help you in investments even in crypto. Make sure to diversify your investments since there are many factors that could easily affect the world stage and this being one of them.

Others think that this is a step for Germany to leading the world once again.

Herbert W. Armstrong forecast in 1945 that Germany would rise from the ashes of World War ii and become a dominant economic, and then military, power.

“What most do not know,” said Mr. Armstrong, “is that the Germans have their plans for winning the battle of the peace. Yes, I said battle of the peace.”

Germany's creditor status stems from a surplus engine fueled by a culture of savings and public prudence, further strengthened by an aging population that encourages the export of savings. Meanwhile, Germany's national interests include euro stability, fiscal discipline, trade openness, affordable energy, and skilled migration, all of which make sense from the perspective of protecting external assets and the sustainability of its economic model. Maintaining a balance between domestic investment (to address demographic and energy challenges) and external accumulation (to support old-age well-being) will determine whether Germany remains Europe's leading creditor in the coming decades.

Debtor countries need to be wary of imbalances in bargaining power, not fear exploitation in patron-client relationships. Germany's leverage emerges when it loses market access and relies on official support; however, EU/IMF rules make it multilateral and legally binding. The best strategy is to reduce narrow financing dependence, improve its external position, and prepare contingency plans—so that, even in the face of a major creditor like Germany, national policies remain autonomous and oriented toward domestic well-being.

Ways to prevent debt traps for debtors include diversifying financing sources and longer-term instruments, increasing the proportion of local currency, and investing in green/social bonds for a diverse investor base. Strengthening the CAD/domestic savings, and reducing the structural current account deficit (energy, imported components) through import substitution and export upgrading to reduce dependence on external savings in surplus countries.

[Webetcoins]

The main reason why Germany is growing this credit size, is because they are trying to prop up the EU market. Without other nations having any money, or anything to use, then they are not going to help EU. So if Italy, Greece, Spain, all bankrupted and can't buy stuff from other EU nations, because they do not have the money for it, then Germany would bankrupt too, because nobody would be buying their stuff.

So Germany keeps these nations rich "enough", like still very poor, but enough to make sure they still have EU economy working together. This is very tough, but not impossible to make money from.

Eventually, EU will have to break up, maybe they will keep euro currency, but this reliance into each other may actually stop, and if currency stops too, then German fiat, will be more valuable than all of European fiats combined.

[Fortify]

Since 1991, Japan had the title of being the world's biggest creditor. This means that the country exports more than it imports. Now Germany takes that title from Japan. There could be a lot of indications for this. One being germany may have a weak domestic demand as they would rather invest in foreign businesses. Might be risky but this also means they hold a powerful hand when it comes to global economy.

If Germany is the creditor, there must be debtors. Which implies that other countries are way too dependent on foreign lending. If you are not from Germany, it is good to be aware especially if your country relies a lot on Germany. Knowing about this can help you in investments even in crypto. Make sure to diversify your investments since there are many factors that could easily affect the world stage and this being one of them.

Others think that this is a step for Germany to leading the world once again.

What is your source for this? I'm genuinely curious because I thought China might be somewhere near this position too, especially with the massive trade surplus they have, a booming economy and the amount of money they have invested in things like US treasuries (even if that is on the decline). I wouldn't necessarily say that Germany is in that powerful a position if this is true, because they share the euro with other countries who can affect the value of it. Creditors also suffer when other countries devalue their own currency by printing money, it is not necessarily the prized position you make it out to be. German businesses do produce a lot but I think they had greater business prowess a decade or two ago.

[WillyAp]

ultra-high savings rates,

Name a few could you?