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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: RJA_ who wrote (35111)5/24/2008 3:59:59 AM
From: Haim R. Branisteanu  Read Replies (2) | Respond to of 218093
 
Germany is not the EU, over 40% of the EU are in recession rest except Germany are on the brink of recession - see recent retail sales.

So what you prefer lost workplaces or moderate inflation generated by outside demand from BRIC countries?

Hyper-inflation you mention resulted from massive debt of Germany to the Allied Forces from WWI and not from demand.

The foolishness of Europe of demanding heavy compensation from Germany because of WWI resulted in deep disdain and the rise of the National Socialist Party the rest is history as the world paid a very steep price for the European foolishness.

You can not compare the two situations – the countries with high debt to GDP ratio are now in recession in the EU – lowering rates will help them and I do not mean to lower to ZERO – ½% IMHO will alleviate the situation

Interest rates should not be above 0.5% to 1% of economic growth and real local demand generated inflation

Interest rates below this threshold are stimulating the economy and may generate inflation as the situation is now in the US



To: RJA_ who wrote (35111)5/24/2008 4:47:14 AM
From: elmatador  Respond to of 218093
 
Strong Euro shelters Euroland from high USD-priced oil. Thus no competitive devaluation to increase exports.

Need structural adjustments to remove the gypsum cast and move ahead.

BIG QUESTION:

are economic blocks relevant?



To: RJA_ who wrote (35111)5/24/2008 5:09:44 AM
From: elmatador  Respond to of 218093
 
Why strong Euro was a countermeasure for higher oil prices. See how the situation was 2002:
Message 17240819