any export heavy economy basically depends on the US navy etc

Trying but not succeeding basically

Not until something changes

well main thing in Europe is the Germans are too selfish to do what we do to have our position

'basically' run twin deficits

OR just scrap monetary union altogether, but Germany benefits from the curreny monetary policy

Germany accuses Greece of behaving in ways Greece can't really avoid, because of Germany's massive trade surplus

in prior days, Greece would have devalued and evened out things, but with Euro, they can't, so they are stuck

This was one of the most predicted effects of the Euro prior to its creation, from socialists, capitalists, etc. they all could see it

And as a Romanian MEP put it, the capital flows are also east to west, in addition to the obvious from the monetary policy

Interesting. It gets even muddier than I initially thought

tricks of the trade, bad econ might be taught for a reason

in the US we have a different scenario. We have a monetary union, a fiscal union(but it's lopsided) and the COnstitution EXPLICITLY outlaws tariffs between the states

imagine if the last part weren't true, many states would have tariffs on other states. "low wage labor" from southern carolina impacting california or whatever

instead we use tricks like the minimum wage law. Federal min wage hits the whole country, but cost of living is different so the effects are not the same

if cost of living is 20 an hour in boston, but 7 in south carolina, federal min wage of 8 bucks hurts SC more than boston, erodes their cost of labor advantage

if tariffs were allowed internally, you could imagine tariff lines all over the place in the US. in place of that, we have fiscal sharing where california 'taxes' are spent in south carolina, so they we have many states that are net tax-winners, paying far less than they get

Look, a normal conversation on this server

How rare

Of course it's between sh0t and boo

Boo is the people's champ

Oh don't mind us

It's good to sometimes unwind from ideological hostilities with other people

https://www.politico.eu/article/what-rich-countries-get-wrong-about-the-eu-budget-east-west-euroskeptic-cohesion-policy/

she lays out some of it there. US has similar kind of issues but not as bad because we are a real fiscal union. it has been a running fight since the revolution ended though

Gonna have to look into this in detail

when world had a 'gold standard', similar problems occured internationally, which didnt' help the situation prior to the world wars

Got anymore reading material?

https://twitter.com/JZarif/status/1214153647124353024

no 😄

It's okay

That article could be a good starting point for further research

that's what macro players do

that Romanian MEP aint too shabby either

French-Romanian

But her point happens 'internally' in many countries as well, US included. it's almost impossible to get 'the other side' to admit any of the reality of how flows are actually going

gotta build a chart with the actual numbers, but take off any name labels, get somebody admit what they are seeing, then re-add the labels and see if they have the integrity

I have actually seen that happen before so at least I know what to expect

internally or even i a situation like the EU, you get all sorts of beef over say interest rate policy though the tools involved are not as powerful as the beliefs claim they are

the big debtors versus say pension funds that want fixed income