I think of a slow down in Europe due to US and I wonder why?
I think about the tremendous booming economy we have seen in the US over the past decade and ask myself why the Europeans have only grown at fraction of that rate.
I also think about why European household consumption is so tepid:
prometeia.it
As compared to the US:
dismal.com
And I also wonder why European unemployment is so high, despite the fact they have domestic markets to be developed from the previously communist eastern nations. You'd think rebuilding those economies would spur the ECB into taking the necessary actions to create that growth.
One would think that they would have a greater incentive to undertake the economic and political policies that would entice capital to be invested there.
The populous is almost as large with combined Euro we are here US. It is closer to Asia than we so transportation costs are reduced and inflation a shade more contained if you import.
Answer the above question about low European consumption and you'll answer the question about why it doesn't matter how close trading markets are, but how active the BI-LATERAL trading activity is.
Either way, Asia is manipulating their currencies in order to avoid undertaking the necessary structural and cultural changes that would spur domestic demand.
And Europe seems to be also showing their inability to attract investment capital, or to create domestic demand by consumers.
Debt is not necessarily a bad thing Darleen. It is only when we possess more than we can feasibly manage to pay off, that we get into trouble. Without debt, people live in a "cash and carry" system, with the consequent avoidance of risk. And without risk, there is no true reward or progress... but only stagnation, economically, culturally, and politically.
Regards,
Ron |
