Quote (Black XistenZ @ 18 Jul 2017 02:10)
the german export industry is benefitting. the average german worker not so much, since he is suffering from
a) a falling euro which makes goods from out of europe, oil in particular, more expensive.
b) extremely low interest rates, most of the time below the official inflation rate, since the ecb is keeping them artificially low.
c) explosion of housing prices and rents as a result of the ecb's quantitive easing and b).
d) huge oustanding debts of the other euro countries with the german bundesbank via the target II system, at the moment 860 billion €. yes, I'm not kidding, the other euro countries at the moment have outstanding debts of 860 billion (!!) € with the germans. which essentially means that the german bundesbank and thus the german people are indirectly paying for their own exports. this also means that a huge chunk of our export surplus is currently still in the air and not yet secured and converted to something that boosts our wealth. if this bubble ever bursts, the german people will lose a huge chunk of the wealth that our export surplus has supposedly created over the years. and I havent even talked about the catastrophic potential of blackmailing that this causes, which will make things even worse as time goes on...
a ) Is oil more expensive ? I remember buying gas for 20% more than the price now, about 5 years ago. And we are moving towards renewables that are allowed to be a bit more expensive and become cheaper the next 10 years. I havn't seen an increased price yet.
b ) true, it's to get out of a crisis. Ppl suggest to not raise it too soon afterwards, expect another 1-3 years at this rate.
c ) yep, giving countries massive death taxes everytime a house owner dies. We can hopefully deflate the bubble with policies in the future, The Netherlands desperately needs one. (and is moving towards it).
d ) yes.. We've had a massive crisis. any bubble bursting now can cause even further regression of the standards of living in our countries. I think we've stabilized and hope we can increase our economy before the next bubble bursts. Even better: prevent a burst.
This post was edited by Knaapie on Jul 17 2017 07:29pm