Sometimes they do tell the truth! Kristin Lagarde, President of the European Central Bank, warned on the fringes of the Finance Ministers' Conference in Belgium that a massive amount of capital is flowing out of the eurozone, primarily to the United States. Lagarde even quoted figures: 250 billion euros are currently flowing out of the eurozone every year. One really wonders why? Aren't overregulation, the infantile fight against moronic climate change or the massive increase in fiscal burdens as part of the expansion of the European welfare state actually factors that should attract mobile capital and make entrepreneurs eager to take on investment risks? Added to this is the growing involvement of the eurozone in the Ukraine conflict and the continued unchecked but deliberate mass migration of poor people into the continent. Capital controls and faster debasement of the euro are likely to be the next measures taken by central planners to delay the collapse of this sham giant.
40 sats \ 0 replies \ @shado_op 25 Feb
This is Europe... Talk the talk on internationalism while blocking off your market from external trade (aka keeping poor countries poor) , and restrict foreign transfers of capital (aka Brexit) to trap money at home so it can't seek better returns elsewhere.
Also known as no growth.
Within a few years, the rise of India and China will make the EU irrelevant on the global stage, as the US, China and India carve up the global economy in their own interests.
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55 sats \ 9 replies \ @siggy47 25 Feb
I guess as a US citizen I sometimes have myopia and am shocked to hear that capital is seeking out the US. It's the old "best house on a bad block" theory. That capital may not automatically flow to New York considering recent events, but many other states provide reasonable safety and opportunity.
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61 sats \ 1 reply \ @koqoo 25 Feb
there is a dodgy path mostly via the CITY.
don’t miss this documentary:
The Spider’s Web: Britain’s Second Empire
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51 sats \ 0 replies \ @TomK OP 25 Feb
Top. Thank You
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65 sats \ 6 replies \ @TomK OP 25 Feb
did you read my analysis from yesterday on the war bonds that could be converted into eurobonds? i have the feeling that this article has been completely lost here and that the topic is far too important, especially from the point of view of the europeans. here in europe, nobody is paying attention to the fact that the eu has just stepped onto the thin ice of getting hold of other funds to continue arming itself and digging itself deeper and deeper into this war
#437062
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21 sats \ 5 replies \ @siggy47 25 Feb
I did but I will read it more closely. It's crazy how the EU seems to do the US's bidding to its own detriment at times, especially after events like the pipeline sabotage. I guess they value the US footing the bill for the UN and NATO more than they probably should.
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65 sats \ 4 replies \ @TomK OP 25 Feb
in my opinion, all the problems that the eurozone has should always be read from the perspective that there is no collateral, i.e. no own energy source available at all that would be internationally relevant. hence these incessant efforts by the UK to drag America into the wars. and the attempt to install eurobonds via war bonds means nothing other than putting the european taxpayer as collateral behind the further issuance of government bonds
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21 sats \ 2 replies \ @shado_op 25 Feb
I would clarify efforts by UK politicians and media to drag the US in... There is no appetite from most ordinary people in the UK to get involved in foreign wars, the public image is a confection...
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25 sats \ 0 replies \ @TomK OP 25 Feb
Nobody of us really wants that. But this class of parasites seems unstoppable so far
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0 sats \ 0 replies \ @shado_op 25 Feb
Just look at the state of the UK's military and the numbers leaving the armed forces every year!
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0 sats \ 0 replies \ @TomK OP 25 Feb
PS: The Donald is absolutely right
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21 sats \ 1 reply \ @riberet19 25 Feb
As a European, this doesn't surprise me at all, I think that over-regulation is the key factor here, interventionism and over-taxation in most countries, especially in my own country, for example, Spain
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0 sats \ 0 replies \ @TomK OP 25 Feb
I founded a small company one year ago in Andalucía where I live. Bureaucracy is a disaster.
But what is really going on now on the Union level is the attempt to concentrate power in Brussels by using the Russian war as leverage
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21 sats \ 1 reply \ @Signal312 25 Feb
So could you explain this like I don't have much background in finance? What does this sentence from the article actually mean:
"These are household savings sitting idle in current accounts, which could be put into the economy to stimulate a eurozone grappling with liquidity needs that states cannot guarantee."
Are they talking about "bail-ins" or something else? If it were bail-ins, seems like they wouldn't talk about it in advance...
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34 sats \ 0 replies \ @TomK OP 25 Feb
no, it's about using this money, this cash in the accounts as collateral, just like the banks do when they give new loans, then they leverage their customers' holdings. the principle could be that the European Union puts this customer money or part of this customer money as fictitious collateral in a new fund which then bears the colorful name: 'European Fund for Peace and Democracy', for example, and then places this as bonds on the markets to leverage the existing cash deposits, covered by the taxpayers.
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21 sats \ 0 replies \ @koqoo 25 Feb
“We need €75 billion a year to meet the NATO spending target of 2 per cent of GDP for defence.” - Lagarde
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