Skip to comments.Eurozone left in lurch as US 'can-do’ spirit spurs economy towards revival
Posted on 01/06/2013 4:50:40 PM PST by 2ndDivisionVet
So the Americans did it. They avoided the fiscal cliff right at the 11th hour, much as many of us suspected they would. Not that Americas travails are over. Quite the opposite. The fiscal problem has been merely deferred, not cured.
Meanwhile, even given Congressional agreement on immediate fiscal issues, the pace of economic recovery is set to be modest.
Yet even this is better than the outlook for the eurozone, where the economy is likely to languish, if not to contract further. Why do the US and the eurozone present such different economic prospects?
One possible answer is that the economic crisis has been less severe in America than in Europe. Yet the Great Recession began in America. Moreover, the initial falls in GDP were pretty similar across all of the older industrial countries. It has been the recovery that has been different, with America and Germany recovering the most. But whereas Americas recovery will probably continue to sputter along at about 2pc per annum, Germanys GDP growth appears to have come to a halt. Indeed, she could even slide into recession herself...
(Excerpt) Read more at telegraph.co.uk ...
I think he needs to change pharmacists..
I think Bootle tipples.
Central banks were propping up Europe big time back in the early part of the century. It's been a worldwide crisis for years. The US recession was only the latest symptom.
“What United States is this guy talking about?”
LOL I was wondering the same thing
Sure ain’t this one. And why did the Telegraph hire a guy whose name is Bootle?
OPEC Has Already Turned to the Euro[singing] Gloom, despair, and agony on me...
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
US Imports of Crude oil (1) (2) (3) (4) (5) (6) Year Quantity (thousands of barrels) Value (thousands of US dollars) Unit price (US dollars) Average daily US$ per € exchange rate Unit price (euros)
3,471,066 74,292,894 21.40 0.8952 23.91 2002 3,418,021 77,283,329 22.61 0.9454 23.92 2003 3,673,596 99,094,675 26.97 1.1321 23.82
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
Where is this “recovery” he’s talking about? If he thinks USA is approaching some kind of recovery relative to his country, England must have slid back to Dickensian conditions. “Please,Master, might I have just a little more gruel?”.
Really; how long will Obama’s media maintain this charade of “recovery”? Any real recovery (in specific sectors or niches) is more than offset by the losses in most others. If the economy was in any positive shape Obama would’ve won 75% of the vote; he could only bribe the 47% of dependents, plus the government workers’ dependents, to cross the finish line.
O’s mass media-— the “ministry of truth”. (The 4th estate shows no more sign of any honest recovery than does O’s economy)
Don’t you mean “May I have another hummus, bey?”
So..it was just a flesh wound.
The U.S. is doing better than Europe not because of QE (which the euros are doing under a different name), but rather because of oilfield fracking, hyper-farming, and Web 3.0.
In fact, American citizens are doing progressively worse themselves as you get geographically further away from oilfield fracking, hyper-farming, and Web 3.0.
You can see our pessimism in proportion to our distance from those 3 growth areas.
Yeesh. I guess that makes sense though. The Eurozone has Greece, Italy, Spain and Portugal.
While WE'VE got New Jersey, Illinois, and California!
Mr. Bumble was a 19th Century social worker. Off-topic, but an observation.