Quote (Djunior @ 7 Sep 2024 05:05)
You're trying real hard to make this sound less severe than it actually is. An huge bailout operation was needed not only for Greece but also for Italy Spain and Portugal and later the banking system particularly of those countries. But other countries struggle too look at France for example ;)
All these posts you've made it sound like the "superior diversified EU" has no financial issues while the opposite is true and the EU central bank keeps piling up debt from all kind of rescue packages and all those years of necessary quantitative easing (lmao).
Italy never received a sovereign bailout. The bailouts for Spain, Portugal, Ireland and Cyprus were about as big as those received by Greece alone, and magnitudes smaller when you compare then to the size of the respective economy. So the only country which really fell to the point of not being able to get out of the crisis on its own was indeed Greece. The others could have dealt with their economic issues on their own, but that would have necessitated dropping out of the eurozone, which the eurocrats wanted to prevent at any cost. A major economic crisis with deep spending cuts, wealth taxes and that kind of stuff in places like Spain would also have had economic ripple effects on their European neighbors, considering how interwoven the economy is in Europe. This would nonetheless have been the better course imho, I even argued for such a more "hawkish" course back in the day.
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Finances of Western countries are a joke. You keep telling others how good you are while no EU country has their budget in order, decades ago people in the EU were at least properly informed regarding their government's budget and told that you cannot spend money that you don't have.
I am by no means saying that the economic situation in Europe is great at all, I'm just rejecting 1) your doom and gloom predictions and 2) the notion that countries like Russia or Turkey are in a stronger position just because of one cherry-picked metric (low debt to GDP ratio).
I am personally against quantitative easing and reckless spending, but let's be realistic, it is the way the world is going. The ECB is not alone in that regard, the US, Japan etc. aren't any better. Russia is on wartime footing, we'll see the true cost of their war once it's over and the dust has settled. China is propping up its economy with trillions of corporate subsidies and sits on a gigantic housing bubble. The Saudi economy is fully dependent on oil revenue, they racked up huge losses in 2020 and huge profits in 2022/23. Broadly speaking, the inflation surge and interest rate hikes of 2021-2023 have hit developing countries even harder than the industrialized world. Things aren't going well for us, not at all - but most others are even worse off.
Fact of the matter is that the Euro exchange rate against the US Dollar and the Chinese Yuan (as well as the Canadian and Australian Dollar and the British Pound) is back to where it was in 2019 while it has appreciated substantially versus the Japanese Yen, the Indian Rupee and the Brazilian Real.
Quote (zorzin @ 7 Sep 2024 13:30)
Damn, those Iranians sure are exporting a ton of arms these days and now turkey wants to join the axis of evil? The red sea will be permanently closed.
I am sure the Chinese (and also the Indians) will be
thrilled if/when longer shipping routes hamper their trade with Europe...
This post was edited by Black XistenZ on Sep 7 2024 06:35am