Eurozone In Recession: The Price Of Central Planning
627 sats \ 9 comments \ @TomK 24 Oct econ
Recent economic indicators paint a concerning picture of the Eurozone's structural challenges. With manufacturing PMI at 45.9 and services at 51.2, we're witnessing the consequences of sustained bureaucratic intervention and resource misallocation. Assuming that the construction industry is also in a deep recession alongside the industrial sector and that the state is the only one left to light its useless fires with artificial credit, things are looking really bad in the eurozone. The awakening of the Europeans at the point at which the reception also materializes on the labour market will also frighten many. Then they will learn that all the shouting about the green transformation and the climate apocalypse was nothing more than a sad attempt to generate artificial gross domestic product in the face of an anaemic economy regulated to death and ever more centrally controlled.
Key Insights:
  • Years of heavy-handed state intervention have created systemic inefficiencies
  • Government overspending (nice to gain power at cost of the 'sovereign') increasingly displaces productive private sector activity
  • Bureaucratic expansion has reached unsustainable levels
  • Resource allocation is being distorted by non-market forces -State intervention fails to produce goods and services that consumers actually demand
The fundamental issue isn't just about numbers - it's about the misallocation of scarce resources. Government intervention, while well-intentioned, consistently fails to generate real economic value. Instead, it diverts critical resources away from productive channels, creating a cascade of market distortions. The solution requires a fundamental rethink of our approach to economic management. We need to recognize that sustainable growth comes from allowing market forces to efficiently allocate resources, not from expanding bureaucratic control.
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47 sats \ 1 reply \ @Solomonsatoshi 24 Oct
A Major factor missing from the above interpretation of the EUs economic dilemma is China. China has outplayed the wests manufacturing heavy weights at their own game. China has the advantage of central planning largely free of high demands from an already wealthy and entitled population. Chinas autocracy enables and motivates a centrally planned economic growth program because without growth the CCP would risk being challenged and potentially replaced- and because autocracy enables a strategic approach.
The huge tragic irony of western democracies is that they have become less representative of the wishes and aspirations of citizens because politicians of almost all major parties are largely owned by corporate sponsors who direct strategy in the manner of crony capitalism. Chinas politburo in contrast can plan and execute a long term cohesive development strategy employing vast labour resources and mass scale efficiencies.
China has mastered the strategy of copying western developed production technology and undercutting it on price. This is gutting the EU and US manufacturing sectors. They only now hold advantage over some of the higher tech areas and China is again highly focused on catching up on those. Look in the high tech research and development and corporate sectors backrooms- they are dominated by Chinese faces.
The west is fat, complacent and divided. Europe simply cannot compete with China on cost and productivity. Japan and S.Korea struggle to compete and are increasingly locked into Chinese supply chains which may ultimately render them dependent upon China as they once were on the US. War via trade. Mercantile power. China is winning. Own it.
The west has lost the trade war and now the war for control of global institutional and protocols begins. The most important one is the monetary system. Chinas already operational CBDC Yuan is already operational and provides an alternative for international trade payments outside of SWIFT. The Euro and the dollar may be the last western strategic assets to be lost and replaced by the Chinese CBDC Yuan and a growing number of nations using it, not the dollar or the Euro for trade payments.
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39 sats \ 0 replies \ @teemupleb 24 Oct
Maybe but long-term nobody wants government money whether it’s yuan, dollar or euro
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47 sats \ 0 replies \ @denlillaapan 24 Oct
yup yup yup, great observation!
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0 sats \ 0 replies \ @7e6e393a56 24 Oct
The state exists on the premise of defending the rights of citizens and being a regulatory force between the interests of the private sector and its population. I look at the state today, and I see it crushing its population and the business community with heavy taxes, however... many of these billionaires from the private sector love to align themselves with the state, sponsoring political campaigns and forming public-private partnerships. Everything is wrong!
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0 sats \ 2 replies \ @Satosora 24 Oct
Between the EU and Japan, which is doing worse?
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20 sats \ 1 reply \ @TomK OP 24 Oct
Ooh, I would say Japan could be first to trigger the next credit crunch
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0 sats \ 0 replies \ @Satosora 24 Oct
They are in that precarious of a position? I thought italy or greece would trigger it?
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0 sats \ 1 reply \ @stack_harder 24 Oct
reminds me of how the the soviet union showed some of its best official economic numbers in the years shortly before it collapsed.
the sad part is, to this day, governments think they can plan their way out of anything, zero lessons learned
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0 sats \ 0 replies \ @aljaz 24 Oct
or print their way of anything
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