Europe heading into recession

[loafer123]

Tryke3 said:

Lucas Ayde said:

jshell said:

https://www.bbc.co.uk/news/business-48258720 it's building...

Having a common currency across a large number of economically diverse countries is a surefire recipe for eventual ruin. The only thing that's kept the Eurozone going is the belief that Germany will bankroll the whole mess when it gets really bad. The thing is, a large part of the reason that Germany has been so successful has been down to the Euro suppressing its own currency value (for outside-EU exports) and making it possible to export more of its goods to poorer Eurozone countries whose consumers otherwise couldn't afford them.

Should Germany refuse to underwrite the economies of its EZ partners, the zone will collapse economically. Also, I wouldn't put it past Germany to decide to withdraw from the Euro if it suited them to do so and there was a sufficiently nationalistic government.

The real reason the Euro got pushed so hard was because federalists figured that it would force the creation of a Federal European State as you would ultimately have no other choice unless you wanted your country's economy to utterly fold.

What a load of st

It really isn’t.

It is a very concise and clear reading of the situation.

[Mrr T]

amusingduck said:

Aren't the EU still using QE?

Don't forget the "stealth QE" of TARGET2 - that never stops


ETA - It seems the EU stopped QE in December 18, right before the wheels started coming off the Eurozone.. again...

Edited by amusingduck on Friday 31st May 07:28

The ECB cannot use QE. It just using a very liberal financing policy.

T2 balances are not QE.

[Mrr T]

jshell said:

https://www.bbc.co.uk/news/business-48258720 it's building...

Having a common currency across a large number of economically diverse countries is a surefire recipe for eventual ruin.

You need to tell the US.

[loafer123]

Mrr T said:

amusingduck said:

Aren't the EU still using QE?

Don't forget the "stealth QE" of TARGET2 - that never stops


ETA - It seems the EU stopped QE in December 18, right before the wheels started coming off the Eurozone.. again...

Edited by amusingduck on Friday 31st May 07:28

The ECB cannot use QE. It just using a very liberal financing policy.

T2 balances are not QE.

The ECB can and does use QE to the tune of €2.5 Trn, but you are right that T2 is an entirely separate issue.

https://www.ecb.europa.eu/mopo/implement/omt/html/...

[TEKNOPUG]

Mrr T said:

jshell said:

https://www.bbc.co.uk/news/business-48258720 it's building...

Having a common currency across a large number of economically diverse countries is a surefire recipe for eventual ruin. You need to tell the US.

That'll be the federal superstate US?

Edited by TEKNOPUG on Friday 31st May 13:00

[Art0ir]

My QE comment was in jest...

We’re fked.

[anonymous-user]

Mrr T said:

jshell said:

https://www.bbc.co.uk/news/business-48258720 it's building...

Having a common currency across a large number of economically diverse countries is a surefire recipe for eventual ruin.

You need to tell the US.

100 years after federal taxes were introduced some states are still receiving over 10% and some paying over 7% of their GDP a year in net fiscal transfers! To put that into some kind of perspective that would be like Germany paying $250bn a year NET into the EU budget!

Edited by anonymous-user on Friday 31st May 17:09

[JustALooseScrew]

fblm said:

What's going on in Minnesota? (Genuine question.)

[mike74]

JustALooseScrew said:

What's going on in Minnesota? (Genuine question.)

If the Fargo film and tv series are anything to go by then the Minnesota economy seems to be primarily based on the work of hit men.

[loafer123]

JustALooseScrew said:

What's going on in Minnesota? (Genuine question.)

Meth?

[Mothersruin]

loafer123 said:

JustALooseScrew said:

What's going on in Minnesota? (Genuine question.)

Meth?

It's based on GDP, as only three people live there...

[christian-ohtc3]

Mrr T said:

jshell said:

https://www.bbc.co.uk/news/business-48258720 it's building...

Having a common currency across a large number of economically diverse countries is a surefire recipe for eventual ruin.

You need to tell the US.

You forgot it only works long term with full political and fiscal union, it is working just as it was designed.

[JustALooseScrew]

loafer123 said:

JustALooseScrew said:

What's going on in Minnesota? (Genuine question.)

Meth?

Do I need a parrot here?

I thought green would be good on that map & red is bad?

Minnesota (and New Jersey) running a surplus - I realise the dates are 10yrs out but still, what was going on?

[loafer123]

JustALooseScrew said:

loafer123 said:

JustALooseScrew said:

What's going on in Minnesota? (Genuine question.)

Meth?

Do I need a parrot here?

I thought green would be good on that map & red is bad?

Minnesota (and New Jersey) running a surplus - I realise the dates are 10yrs out but still, what was going on?

Just a joke...GDP and contributions high because they cook meth.

[JustALooseScrew]

loafer123 said:

Just a joke...GDP and contributions high because they cook meth.

You're right! Bioscience

[JustALooseScrew]

I just learned something - we've all seen '3M' in our lives some where at some time, that'd be Minnesota Mining & Manufacturing.

They should have renamed it 4M - you know added Crystal Meth to the list.

(I love a school day).

ETA
3M

Edited by JustALooseScrew on Friday 31st May 20:16

[anonymous-user]

JustALooseScrew said:

What's going on in Minnesota? (Genuine question.)

Maybe they all work and pay taxes there then bu66er off to Florida to retire and pick up their SS and medicare? Dunno is the honest answer. I had to google where it was!

[GadgeS3C]

mike74 said:

If the Fargo film and tv series are anything to go by then the Minnesota economy seems to be primarily based on the work of hit men.

Fargo is actually in North Dakota (just!).

[mike74]

GadgeS3C said:

Fargo is actually in North Dakota (just!).

Well yes but the hit men do plenty of their work in Minnesota, so all the clean up and investigation work all those bloody slaughters generate must be good for the Minnesota GDP!

[CzechItOut]

Mrr T said:

You need to tell the US.

I think the main difference is psychology. There is no economic reason why you cannot have a common currency across an economically, socially and culturally diverse number of countries/states, but those people need to buy into the concept.

That is the main difference between why the dollar works in the US, but there always seems to be constant tension in the eurozone.