- Joined
- Dec 14, 2006
- Messages
- 7,588
- Reaction score
- 468
- Location
- Western Europe
- Gender
- Male
- Political Leaning
- Other
7.6% is a great number for Europe. That's the zero point for the EU.
Its not a great number.. Unemployment has fallen over the years from 10ish% to a low of 6.8%, then rose again to around 7.4% at the moment, because of our little setback...
EU. A relatively stable economy? Time will tell, and I say not likely. LOL. Germany, the EU's engine fell flat with Schroeder as he couldn't get the unemployment rate down during a good US economy... it doubled on his watch.
Most European economies are far more solid anchored than the US economy, its less based on speculation and more on real economic advantages such as production, savings, exports, dense infrastructure and so on. Actually Schroeder did good if you ever study German unemployment numbers, which are now at 7.1%, down from well above 10% in the midterm of Schröders government. The results of reform is not seen immediately, but it being 7% now is thanks to what the last government did.
And the US economy was not really good and stable in the same time period, remember 911 and the economic results of that? Even so, unemployment fell in Germany.
The EU is a follower. Like the CDN dollar, there may be times when it reaches some type of parity when things get tough in the US but it's not something you can look at and say it's for the long term.
How do you explain the Euro being so high against the dollar then? If it was a "follower" it would surely be 1.10 to the dollar maximum, to stimulate European exports, but its not, because our cycles and economic fortunes are different. Both the US and Europe will cycle as results of the other one.. If the economic collapse of this crisis, starts hitting Europe more severely, it will also hit the US as a result, and then hit Europe back, and then the US. It could turn incredibly nasty for both economies in the end if that happens, but luckily its a worst case scenario, and not very likely to happen, and you should be thankful to Europe for that, since we are not declining as rapid as the US, its more a setback here.
The EU is still a poor cousin to the US.
Not really.. Our savings rates are above 12% of GDP, while yours is just a tiny 2%, and our debts much smaller, while yours are the biggest in the world after the UK. Also we are not loaded with government debts and trade deficits at the same level that you are. So actually, Europe is the rich cousin of the US.
Don't worry, the US will bounce back.
I certainly hope so.. And I believe slowly it can if the US does the right things instead of the wrong things like I see them doing now, by taking on more debt, wasting money into the fire to rescue a bunch of badly managed bankrupt companies.
We're three weeks closer to the end of the Obama presidency.
Unrealistic.. Even so, you want Joe Biden?
Let's see which country recovers first (with Obama I"m guessing it'll be 6 years... it will require removing the Marxist and electing a Reagan-like figure).
Europe hasnt seen a collapse, just a setback.. So clearly I think we will recover first. Actually we will recover as soon as the US economy stops declining so rapidly, since our setback is a result of US decline.
Reagan figure... :lol: ........ Final nail in the coffin that would be.. One of the reasons Europe is not declining is because of socialism and more state involvement in our economies, and of course better financial management, less speculative based economy.
The only way I think the US can save itself is to abandon its idea of 100% capitalism, because capitalism will always end up bad.