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


To: TobagoJack who wrote (85614)1/6/2012 4:31:48 AM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 218007
 
the main difference between the EU and the US is that the US is expanding its liabilities / debt and the EU is contracting its liabilities /debt in nominal currency.

Policies of taking on more debt to foster further growth may be viable when you are at 20% debt/GDP but at over 70% it is counterproductive.

The EU has already a wide-reaching health and social benefits plan in place which is shrinking contrary to the US which health and social benefits plan is expanding

Therefore IMHO very soon the trends will diverge as related to the CB's balance sheets.

For starters according to Bloomberg both the US and Japan must raise around 3 trillion in debt this year.

Yes I know this is just small change and can be printed instantly.