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The United States is leaving all relevant competitor economies in the dust. Of course, this growth comes at the cost of ever-increasing government debt, but the situation is no different in the eurozone, for example, where the European Central Bank is buying up and thus monetizing the ever-increasing government debt of the euro member states. The USA is an energy self-sufficient country, while Europe has no energy reserves worth mentioning and has repeatedly brought itself to its knees with sanctions packages and the blowing up of the Nord Stream pipelines since the start of the war between Ukraine and Russia. At a certain point, the United States will start to inflate away this mountain of debt and focus on implementing market-based reforms.
This is the moment when the US will crush Europe economically. At this point, the eurozone is no longer capable of reform and is trying to save itself by creating Eurobonds. Eurobonds mean that the European taxpayer is placed as a kind of collateral behind the ever-increasing debt in order to appear credible on the markets and prevent the gigantic mountain of debt from collapsing. On the currency markets, we can already see that the dollar is tending to gain strength while the euro has collapsed by 22% in the Swift volume over the past year. That speaks volumes!
I assume you don't see any possibility of the EU breaking apart at some point, which would allow a country like Germany to regain its status as an economic and financial powerhouse, while southern europe continues it's sleepy descent?
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It seems to me like Germany runs the EU, but has had insane energy policy for years.
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The clock is ticking for Germany's dominance as they really hit their industry hard
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It's more and more difficult to estimate what will happen even next quarter. Eurobonds are the signal that Brussels is panicking and the centrifugale powers of the EU are rising.
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That divergence in debt load strikes me as the bigger story than the gap in real GDP growth. The US has added almost 60% of its GDP to the outstanding debt, while the Eurozone has been pretty flat for the past 15 years.
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Caution! We are pretty good in creative accounting. Only Germany is hiding more than 100 bio. Euro public debt (it's only for the military budget) in sth. they call 'special assets'
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The feds are pretty good at creative accounting themselves. Don't forget about their hundreds of trillions of dollars in unfunded liabilities.
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But isn't it a wonderful feeling to dance on these burning ashes of the fiat clown world with a bag of Bitcoin?
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Who doesn't do that? Every big fish eats up smaller ones but does that mean small fish become extinct. They have their own capacity. Similarly smaller economies do have their own land and people and they can rectify their mistakes if they want.
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The EU is the politically and ethically crippled Hydra
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The evil of all
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