Follow @PoliticsIE
 
 
 
Page 1 of 2 12 LastLast
Results 1 to 10 of 18

Thread: Eurozone recovery runs out of steam

  1. #1
    Politics.ie Member Ulster-Lad's Avatar
    Join Date
    Oct 2006
    Location
    Dún na nGall
    Posts
    10,090
    Mentioned
    0 Post(s)

    Default Eurozone recovery runs out of steam

    The eurozone’s economic recovery is running out of steam, a closely watched survey of industry indicated on Thursday, with continuing growth in Germany and France concealing a contraction in output in the rest of the bloc for the first time in nearly a year.

    The Markit purchasing managers’ index shows growth in economic output across the eurozone fell to a 12-month low in October. However, the 53.4 reading, down from 54.1 in September, remains above the 50-point line which separates economic growth from recession.

    The PMI survey – compiled by interviewing 4,000 companies in the manufacturing and services sectors across the eurozone – is consistent with recent economic data which suggest a growing chasm between the “core” economies led by Germany and the lacklustre prospects of the “peripheral” economies dealing with large sovereign debt piles.

    It also highlights the exposure of the eurozone economy to slower growth in other regions, notably the US, in part driven by the appreciating euro.
    FT.com / Brussels / Economy - Eurozone recovery runs out of steam

    Not quite officially a double dip but downward spiralling. The EU is being propped by Germany and France at the moment who have shown strong growth while the rest of the EU declined. The problem is compounded by the appreciating Euro.

    How long will they (Germans & French) tolerate us?
    ‘The Great only appear great because we are on our knees: Let Us Rise!’ “ (James Larkin)

  2. #2
    Politics.ie Member Squire Allworthy's Avatar
    Join Date
    May 2007
    Location
    Usually on the move.
    Posts
    1,404
    Mentioned
    0 Post(s)

    Default

    Ghosts of the Weimar Republic haunt Germany. Unfortunately the game afoot at the minute does not suit the hand the Germans would like to play. The Euro is grossly over valued against the dollar and Sterling. It is damaging the possibility of economic recovery.

    People tend to think of Germany as an economic power house. Unemployment is around 8%. Some say it is higher and that 10% is nearer the mark. Also some of the regions have very high levels of debt. Germany needs growth as does the rest of the Eurozone and for that to happen the value of the Euro needs to fall back.


    And of course there are outside considerations and those who do not want the currency to lose value.

    China buying euros assets to stabilize currency-Medley | Reuters

  3. #3

    Default

    There never was a recovery anywhere in the world. It was all just deficit spending and money printing. The artifical stimulus is wearing off and another caffeine rush is required.

    The global financial system is broken, and all they have done is paper over the cracks, to keep the fiat currency ponzi scheme going, but soon it will be apparent to all that the emperor has no clothes.

  4. #4
    Politics.ie Member Squire Allworthy's Avatar
    Join Date
    May 2007
    Location
    Usually on the move.
    Posts
    1,404
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by ChickenBiryani View Post
    There never was a recovery anywhere in the world. It was all just deficit spending and money printing. The artificial stimulus is wearing off and another caffeine rush is required.

    The global financial system is broken, and all they have done is paper over the cracks, to keep the fiat currency ponzi scheme going, but soon it will be apparent to all that the emperor has no clothes.


    I have a lot of sympathy for that point of view, however there are many with vested interests in trying to keep the wheels on the existing vehicle. That in turn prevents proper debate on a sensible way forward. I wouldn't for one minute advocate a return to the gold standard, but here needs to be change and the ability of governments to intervene curtailed.

    However we know that governments are unlikely to rush into anything that restricts them in anyway. So we must assume more of the same.

  5. #5
    Politics.ie Member Ulster-Lad's Avatar
    Join Date
    Oct 2006
    Location
    Dún na nGall
    Posts
    10,090
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Squire Allworthy View Post
    I have a lot of sympathy for that point of view, however there are many with vested interests in trying to keep the wheels on the existing vehicle. That in turn prevents proper debate on a sensible way forward. I wouldn't for one minute advocate a return to the gold standard, but here needs to be change and the ability of governments to intervene curtailed.

    However we know that governments are unlikely to rush into anything that restricts them in anyway. So we must assume more of the same.
    Agreed, we are simply the sheep being led at this point. We need reform.
    ‘The Great only appear great because we are on our knees: Let Us Rise!’ “ (James Larkin)

  6. #6
    Politics.ie Member
    Join Date
    Nov 2009
    Posts
    4,461
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Ulster-Lad View Post
    FT.com / Brussels / Economy - Eurozone recovery runs out of steam

    Not quite officially a double dip but downward spiralling. The EU is being propped by Germany and France at the moment who have shown strong growth while the rest of the EU declined. The problem is compounded by the appreciating Euro.

    How long will they (Germans & French) tolerate us?
    They will tolerate us as long as we continue to facilitate the ECB bailout of their Banks.

  7. #7

    Default

    Quote Originally Posted by ChickenBiryani View Post
    There never was a recovery anywhere in the world. It was all just deficit spending and money printing. The artifical stimulus is wearing off and another caffeine rush is required.

    The global financial system is broken, and all they have done is paper over the cracks, to keep the fiat currency ponzi scheme going, but soon it will be apparent to all that the emperor has no clothes.
    +1

    The governments simply either printed more money or borrowed funds and then spent it and added those figures to a plummeting GDP figure.

    A 6 year old can do that. No real wealth creation just more leverage.

    No doubt the fanatical Eurotron posters here will be on soon waffling about some improvement in some idiotic Purchasing Managers Opinion poll from a bunch of oligarch type corporations who have been socialised.

    Where are they today?
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

  8. #8
    Politics.ie Member FutureTaoiseach's Avatar
    Join Date
    Mar 2005
    Location
    Dept. of FutureTaoiseach
    Posts
    7,992
    Mentioned
    0 Post(s)

    Default

    It is clear that the Euro is killing our exporters:
    Quote Originally Posted by Irish Times
    Exports fell in August, declining 4 per cent to on a seasonally adjusted basis from a month earlier.
    Total exports for the month were €7.6 billion, compared with €7.9 billion in July.
    However, analysts said the figures were still strong, coming after July's near-record performance. Compared to a year earlier, exports were 14 per cent higher...Bloxham's chief exconomist Alan McQuaid said the chief worry for indigenous Irish exports is the renewed weakness in the dollar and sterling, which will make it more expensive for exporters to sell their goods into the US and UK....
    Last edited by FutureTaoiseach; 21st October 2010 at 03:30 PM.

  9. #9

    Default

    Quote Originally Posted by FutureTaoiseach View Post
    It is clear that the Euro is killing our exporters:
    The Euro is completely rancid. If we had our own currency floating it would adjust according to our needs, the right rate to export successfully and the right rate to afford the commodities that we import. It is only by mere fluke that the Euro could be at the right rate, which never happens. At €1.18 back in May / June, all the food and energy commodities were too expensive to import leading to a spike in prices, now that it is at €1.40 its too high for our exporters. The swing is too volatile for our producers and importers to maintain stability and the natural rate is never homed in on.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

  10. #10

    Default

    Quote Originally Posted by Cassandra Syndrome View Post
    The Euro is completely rancid. If we had our own currency floating it would adjust according to our needs, the right rate to export successfully and the right rate to afford the commodities that we import. It is only by mere fluke that the Euro could be at the right rate, which never happens. At €1.18 back in May / June, all the food and energy commodities were too expensive to import leading to a spike in prices, now that it is at €1.40 its too high for our exporters. The swing is too volatile for our producers and importers to maintain stability and the natural rate is never homed in on.
    Or preferably a free-currency, so as to allow the markets to regulate the monetary system themselves

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •