13-09-2019, 10:37 AM
11
Re: Meanwhile in the Eurozone ...
Originally Posted by Donkeyman
->
Negative interest rates are not caused by trade wars Brucy!Negative rates are a nonsense dreamed up by politicians
and bankers to allow governments to borrow without having
to pay interest on their loans!
In the real wor!d decent rates are the driving force for
Savings and prudence which imo lead to real wealth! Not as
is the case now where everthing is based on debt! Chldren
now are born clutching a visa card?
People used to save up to obtain things now they even
pay their deposits with a credit card?
I remember America had a trade war with Japan not so long
ago, but l dont recall it having any effect on the rest of the
world?
Regards Donkeyman!
UK wages are up 4% something the Eurozone has been dreaming of for about 10 years.
13-09-2019, 03:37 PM
12
Re: Meanwhile in the Eurozone ...
Originally Posted by Donkeyman
->
Negative interest rates are not caused by trade wars Brucy!Regards Donkeyman!
The central bank said Thursday that it would cut its interest rate for deposits by 10 basis points to minus 0.5%, and keep them there or lower until the inflation outlook improves.
It also announced that it would start printing money again, promising to buy €20 billion ($22 billion) in bonds and other*financial assets per month starting in November. The bank said it would continue the purchases for "as long as necessary."
Interest rates were already at historic lows in Europe, and the ECB had judged the economy to be on solid enough footing late last year to halt its asset-buying program after creating €2.6 trillion ($2.9 trillion) in new money since 2015. Yet Germany, Europe's biggest economy, is now on the*brink of recession, and the US-China trade war is dragging on growth.
https://edition.cnn.com/2019/09/12/i...ate/index.html
13-09-2019, 04:08 PM
13
Re: Meanwhile in the Eurozone ...
Originally Posted by Solasch
->
The European Central Bank is turning on the stimulus taps again, pushing interest rates further into negative territory in order to support the*region's flagging economy.The central bank said Thursday that it would cut its interest rate for deposits by 10 basis points to minus 0.5%, and keep them there or lower until the inflation outlook improves.
It also announced that it would start printing money again, promising to buy €20 billion ($22 billion) in bonds and other*financial assets per month starting in November. The bank said it would continue the purchases for "as long as necessary."
Interest rates were already at historic lows in Europe, and the ECB had judged the economy to be on solid enough footing late last year to halt its asset-buying program after creating €2.6 trillion ($2.9 trillion) in new money since 2015. Yet Germany, Europe's biggest economy, is now on the*brink of recession, and the US-China trade war is dragging on growth.
https://edition.cnn.com/2019/09/12/i...ate/index.html
This demonstrates the utter failure of the Euro.
13-09-2019, 07:36 PM
14
Re: Meanwhile in the Eurozone ...
Germany isn't happyThe negative interest rates are not only hitting German savers, but their economy is going into recession too.
Oh dear ...
https://uk.reuters.com/article/uk-ec...-idUKKCN1VY0MG
14-09-2019, 03:10 AM
15
Re: Meanwhile in the Eurozone ...
Originally Posted by Donkeyman
->
Negative interest rates are not caused by trade wars Brucy! Regards Donkeyman!
Interest rates are one of the ways central banks have to to restrain or encourage growth. The trade war between China and the USA is causing global growth to stall and perhaps even contract. Central banks are reducing interest rates to try to stimulate growth
Australia's bank rate was reduced to 1% recently with another cut predicted before Christmas because growth has fallen to 1.4% - a figure which can be directly attributed to the US/China conflict.
The problem is that interest rates are already so low reducing them has a diminishing effect and other measures are necessary such as printing money (QE) or high government spending to kick start the economy.
Don't let Brexit blind you to real world financial issues, global trade is falling because of the battle between China and the USA hence the action of the ECB - nothing to do with Brexit I am afraid.
14-09-2019, 06:27 AM
16
Re: Meanwhile in the Eurozone ...
Originally Posted by Bread
->
UK wages are up 4% something the Eurozone has been dreaming of for about 10 years.
14-09-2019, 08:01 AM
17
Re: Meanwhile in the Eurozone ...
Originally Posted by Banchory
->
In case you hadn’t noticed, this has happened while we are still a member of the EU
Yes, but we are also leaving something unique to the uk
14-09-2019, 10:27 AM
18
Re: Meanwhile in the Eurozone ...
Originally Posted by Solasch
->
Schengen area and eurozone are different entities. This map may help you.
The reason I mentioned the Shengen Areas is because it is noted that the last time the eurozone was working at it's best was back in 2017, when it was recovering from the debt crisis that itself was a real threat to the euro.
Cut to present day, under the Shengen agreement, 26 member states agreed to allow free movement of people, goods, services and capital finance within their borders. so one would imagine that If the euro was to collapse it would affect every one of those countries, with devasting effects, along with many outside private businesses suffering.
I wonder how the EU would resolve a collapse?
Would they revert to their own currencies? would they run it alongside the ruinous euro?
One would presume there wouldn't be a problem in using both the euro and local currency in the economic zones, such as Germany or Italy trading in both German Deutsche marks and Italian Lira, but imagine how this would affect private businesses who rely on European transport or tourism.
What about the Shengen countries such as Greece?Italy? and perhaps even Ireland? If they and the other EU countries were forced to run two currencies, wouldn't this affect vital things such as bank accounts, wages, pensions and other assets? Personally, I think it would cause havoc in the Shengen countries.
I don't know whether I am barking up the wrong tree when I mention Shengen areas in the event of a Euro collapse, but even I can say that the workings of the Shengen areas would play a vital part if it happened, and believe the economic casualties would be enormous.
Am I wrong?
14-09-2019, 10:30 AM
19
Re: Meanwhile in the Eurozone ...
Originally Posted by Banchory
->
In case you hadn’t noticed, this has happened while we are still a member of the EU
The british wage has gone up to £ 8,21 for those 25 (!) years and over. At present that amounts to € 9,27. So you are still in the catching-up phase.
14-09-2019, 10:37 AM
20
Re: Meanwhile in the Eurozone ...
Originally Posted by shropshiregirl
->
Morning Solly, I won't pretend to be an expert in the workings of the Euro, but even I know the basics.The reason I mentioned the Shengen Areas is because it is noted that the last time the eurozone was working at it's best was back in 2017, when it was recovering from the debt crisis that itself was a real threat to the euro.
Cut to present day, under the Shengen agreement, 26 member states agreed to allow free movement of people, goods, services and capital finance within their borders. so one would imagine that If the euro was to collapse it would affect every one of those countries, with devasting effects, along with many outside private businesses suffering.
I wonder how the EU would resolve a collapse?
Would they revert to their own currencies? would they run it alongside the ruinous euro?
One would presume there wouldn't be a problem in using both the euro and local currency in the economic zones, such as Germany or Italy trading in both German Deutsche marks and Italian Lira, but imagine how this would affect private businesses who rely on European transport or tourism.
What about the Shengen countries such as Greece?Italy? and perhaps even Ireland? If they and the other EU countries were forced to run two currencies, wouldn't this affect vital things such as bank accounts, wages, pensions and other assets? Personally, I think it would cause havoc in the Shengen countries.
I don't know whether I am barking up the wrong tree when I mention Shengen areas in the event of a Euro collapse, but even I can say that the workings of the Shengen areas would play a vital part if it happened, and believe the economic casualties would be enormous.
Am I wrong?
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