Germany's Economic Slowdown: Inflation Hits Lowest Point Since 2021 \ stacker news ~econ

Germany's Economic Slowdown: Inflation Hits Lowest Point Since 2021

620 sats \ 24 comments \ @TomK 29 Aug econ

Germany, once the economic powerhouse of the Eurozone, is now navigating through a period of disinflation as inflation rates continue to drop. In August 2024, Germany's annual inflation rate unexpectedly fell to 1.9%, its lowest level since March 2021, confounding predictions of 2.1%.

This follows a decline from July’s 2.3%. Rather than reflecting the effects of monetary policy, which remains largely expansionary, this trend signals a broader economic slowdown in the Eurozone. The pressure is now mounting on the European Central Bank to further expand the money supply, as nothing is more detrimental to the fiat money system than weakening price pressure or, worse, deflation. https://m.stacker.news/48777

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117 sats \ 10 replies \ @Cje95 29 Aug

They done hit the 2% wayyyyyyy before the US. I want to say I am shocked but the Fed is a complete disaster.

47 sats \ 7 replies \ @Undisciplined 29 Aug

In this case, I think it's more related to how severely hamstrung the EU economies are.

27 sats \ 0 replies \ @Cje95 29 Aug

True I think you are right they are going to be stuck between inflation and sudden deflation I feel like for a while as they sort themselves out.

47 sats \ 5 replies \ @028559d218 29 Aug

As a non-European... Europe always looks so clean, neat and interesting from the outside. Beautiful history, languages, great food, beer etc... not to mention cool cars and coffee.

But I guess economically that doesn't tell the whole story. I have noticed while visiting Europe on multiple occasions that the 'eu-people' are far more risk-averse. They would rather work less and take more vacations... than take a risk and innovate to try to boot-strap new ideas to create a successful business. Also I've noticed the government regulation is much stricter and heavier than in say North America... not to mention the taxes are much higher.

83 sats \ 4 replies \ @TomK OP 29 Aug

Europe is degenerating into a real shithole before our eyes in the face of the invasion and the economic crisis caused by socialist madness. where I am here, that is southern Spain in Andalusia, the world is still halfway in order. of course this does not apply to the Spaniards, who have to fight for their existence in the face of the socialists here in Spain, but at least the cultural unity and the family structure are still right in most cases.

85 sats \ 2 replies \ @028559d218 29 Aug

Socialism robs a country of its economic powerhouse, economic motivations, and almost all innovation and entrepreneurship. It's just the politically connected/rulers getting rich at the expense of everyone else. Followed of course by inflation, debt, poverty (see Venezuela unfortunately) and empty promises. It's the confiscation of wealth and hope by the state - just to prop itself up through schemes and confiscatory policies that are unsustainable and unjust. Why Europe never figured this out is beyond me.

47 sats \ 1 reply \ @jp305 29 Aug

Socialism is a mind virus. It is tempting to vote for them when you feel left out by society. What I don't understand though, is why boomers, who have more to lose, are leaning left. (at least in my country)

0 sats \ 0 replies \ @TomK OP 29 Aug

I always describe this effect as bringing in a free moral dividend. Communism is the morality and resentment of the stupid, and the intellectually undemanding. It has nothing to do with money, it's a cheap pandering to the masses

0 sats \ 0 replies \ @Cje95 29 Aug

I'm just gunna say it.... ya know what helped out the world when we had the Great Depression.... a nice global war to get the economies really churning stuff out again

41 sats \ 0 replies \ @TomK OP 29 Aug

yes you can rest assured. the eurozone is only down there first because it is already an economic disaster and has had no growth at all for a long time. take a look at the growth figures for the USA today

9 sats \ 0 replies \ @TomK OP 29 Aug

68 sats \ 2 replies \ @notgeld 29 Aug

People have empty pockets. Would be interesting to see what's with total bank deposits in Germany which have been stockpiling during a decade.

0 sats \ 1 reply \ @TomK OP 29 Aug

Surprise...

https://m.stacker.news/48813

and consider that never before has so much cash been parked in money market funds as at this moment

47 sats \ 0 replies \ @notgeld 9 Sep

So probably it is very uneven. At this point I don't believe that US really has the strongest wealth disparity. Otherwise, it is just stupid.

47 sats \ 0 replies \ @Satoshi__Nakamoto 29 Aug

We can appreantly see here germeny eco is going down down down 👇

47 sats \ 0 replies \ @Msd0457890 29 Aug

Germany has always been an economic power and it will clearly be easier for it to rise up against the Eurozone.

47 sats \ 2 replies \ @Undisciplined 29 Aug

If people aren't buying, because the economy is broken, won't monetary expansion just be pushing rope?

29 sats \ 1 reply \ @TomK OP 29 Aug

i trust the keynesians and fiat professionals. they have overcome every crisis so far with fresh money!

0 sats \ 0 replies \ @028559d218 29 Aug

Soften the money, lower the interest rates, buy back the debt... stimulate the economy through government spending (and borrowing). Basic monetarist techniques.

47 sats \ 4 replies \ @Satosora 29 Aug

All I can say is ouch. Who will go bankrupt first? EU or USA? Both are printing money like mad.

20 sats \ 3 replies \ @TomK OP 29 Aug

due to its economic strength, the USA can always work its way out of this problem if it really wants to. the European Union and the eurozone are dysfunctional economic areas that are increasingly relying on socialist recipes. the EU is clearly out of the race here

47 sats \ 2 replies \ @Satosora 29 Aug

Maybe they can just start draining the swiss banks? Im sure there is a lot of wealth they could seize.

0 sats \ 1 reply \ @TomK OP 29 Aug

yes, as some German politicians have suggested in the past, you can ride in with the cavalry and ignore any form of private property. we are currently experiencing the fight for the right to privacy and retreat. that would be really dramatic

47 sats \ 0 replies \ @028559d218 29 Aug

pretty hard to confiscate the orange coin