This sort of makes me sad, and sort of makes me happy. I’m happy to know the US isn’t the only place infested with economic imbeciles. It sort of makes me sad because I know the US’s recovery is tied to Europe’s. The US could go it alone, but, it would be much easier if Europe could solve some of their problems. I’m not optimistic either will happen anytime soon.
I’ll briefly explain. There are 4 large economies we need to concern ourselves with at this current moment. The top 3 national economies are the US, China, and Japan. The world’s largest multinational economy is the Eurozone. China’s economy is still developing. The US will not have a positive trade with China until China develops, reforms economic freedom for their people, and fixes their currency manipulation. That’s not going to happen anytime soon. Japan is done. They’re in a deep recession and won’t recover. They’ve nothing to offer the US in terms of a symbiotic partnership. That leaves us with Europe. But, Europe is financially strapped. They need to hurry up and get well so we can develop a symbiotic relationship with them as we recover!
Well, okay, with Barry Zero’s latest proposal of extracting 1% of our capital from of our GDP, and 10% printing and buying our debt, we’re not going to recover. But, what about our friends across the ocean?
The euro zone’s crisis is far from over and its members must tighten budgets and forge a banking union to leave behind the “fairy world” that allowed problems to grow, European Central Bank President Mario Draghi said on Friday.
“The crisis has shown that we were living in a fairy world,” the ECB chief later added at a conference with top financial officials, pointing to the unsustainable debts, weak banks and poor policy coordination that gave birth to the crisis three years ago.
He stressed that the ECB’s designing of a new bond-purchase program, dubbed Outright Monetary Transactions (OMT), had helped lead to much more benign market conditions in the 17-country euro zone.
The idea is that they form one big central bank with oversight over all the other banks in the Euro zone without regard to national sovereignty or identity. How one big monster bank, centralizing and accumulating crap debt from several nations is helping anything isn’t known, yet, but Draghi knows this would help immensely.
I’ve often thought if one could just combine the debts of Greece, Italy, Spain, Portugal, and others’, and put it all in one big pile of $__t, boy, then you would really have something. A certain fix to economic woes if I’ve ever seen one.
But, even without that brilliant mastermind fix in place, Draghi sees sunshine and rainbows around the corner.
Another 173,000 people joined record jobless queues in the currency bloc in October while German retail sales and French consumer spending both fell more than expected, signs of the scale of the task still ahead for policymakers.
“We have not yet emerged from the crisis,” Draghi told Europe 1 radio. “The recovery for most of the euro zone will certainly begin in the second half of 2013.”
Yes, with spending and sales dropping along with more people becoming unemployed along with an obscene amount of people already unemployed, I see an economic recovery just around the corner. Happens every time. Draghi is certain of it.
Note: As I alluded to earlier, the best approach to symbiotic relationships is to have like economies forge the relationships. That is to say developed economies with developed economies. When a developed economy forges a relationship with a developing economy the relationship is often one-sided, one reaping the benefits at the expense of the other.
There are 2 nations the US has good economic relations with and could further forge even better relations to the benefit of all, Canada and Australia. However, even combined, the economies of both aren’t large enough to significantly lift the US out of its current condition. The US is simply too heavy. If the UK would get off the EU fence, then maybe………
God help Western Civilization.