ECB Advocates for Coordinated Public Investments in Europe
10 sats \ 10 comments \ @TomK 24 Apr econ
In a recent address, ECB policymaker Fabio Panetta emphasized the necessity of coordinating public investments across Europe and financing them through the issuance of joint bonds. This move, according to Panetta, would pave the way for establishing a secure European asset, eliminating a significant barrier to creating a genuine capital market union. The issuance of common bonds is seen as a crucial step towards providing essential funding for the ambitious investment programs outlined previously.
Panetta's remarks underscore the ongoing pressure from the ECB to introduce Eurobonds, positioning them as a viable solution for fostering financial harmonization and innovation within the region.
While the proposal for coordinated public investments and the issuance of joint bonds may indeed increase state influence and involve higher levels of debt, it's essential to consider the broader context. Proponents argue that such measures could stimulate economic growth and innovation, ultimately benefiting society as a whole. However, critics warn of the potential risks associated with accumulating more debt and expanding credit, cautioning against the long-term implications for financial stability and economic sovereignty.
Brussel is fighting against its harsh geopolitical decline. Next victim could be national fiscal sovereignty.
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42 sats \ 0 replies \ @halalmoney 24 Apr
An interesting take on Europe’s woes:
If the original intent of the North Atlantic Treaty Organization (NATO) was to “keep the Soviet Union out, the Americans in, and the Germans down,” it would seem the war in Ukraine is accomplishing at least one of those objectives. Germany—and Western Europe in general—has suffered mightily as a consequence of policies implemented with full US support. The situation is especially acute in the energy sector, where observation would indicate the overt goal of US foreign policy is to cripple the ability of Germany to compete in the global economy. If this indeed was the objective, it seems to be working splendidly…
https://newsletter.doomberg.com/p/friends-like-these
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42 sats \ 8 replies \ @Satosora 24 Apr
Is europe stronger together or individually?
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10 sats \ 7 replies \ @TomK OP 24 Apr
a difficult position for me as a libertarian. geopolitically, it certainly makes sense to cooperate, and the integrated single market would also be a good solution for free competition, if it were allowed. however, i firmly believe in the fragmentation of power units into the smallest possible units in order to strengthen the sovereignty of the individual. in the long term, this will result in a strong cultural community
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42 sats \ 6 replies \ @Satosora 24 Apr
I always hear about one country supplementing another. Which shouldnt be their problem..
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0 sats \ 5 replies \ @TomK OP 24 Apr
the whole illusion of the eurozone was based on applying Germany's credit rating to the bankrupt southern european states. this was supposed to lead to economic convergence, but this has turned out to be the opposite.
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42 sats \ 4 replies \ @Satosora 24 Apr
Does germany have a lot of gold backing up their currency still? They went through 2 stages of hyperinflation? I just feel that germany gets the brunt of the action, always having to bail out the other not so wealthy places.
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0 sats \ 3 replies \ @TomK OP 24 Apr
the German Bundesbank still holds around 3400 tons of gold. a fairly large amount
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42 sats \ 2 replies \ @Satosora 24 Apr
Im not trying to sound ignorant, but I feel the countries that can speak german are the ones that can manage money well. The other countries need to get it together.
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0 sats \ 1 reply \ @TomK OP 24 Apr
However, the history of modernity paints a somewhat different picture when you think of the hyperinflation in Germany and the economic crises in German-speaking countries in the first half of the 20th century. Since the introduction of the euro, however, Germany has been very good at cultivating a kind of neo-mercantilism, with a currency that tends to be undervalued and a low-wage sector that is protected by law, which has virtually outperformed all other Europeans
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