Disliked{quote} Seems to me like Europe is ahead of schedule in stopping bond buying and increasing rates.Ignored
Since Germany etc. is doubling it's defense spending from here on out. Don't you think that money will be borrowed? Also since Germany pays more than double electric cost over usa, and NG as much as 7X. You dont think that will have an affect? Did you know the most expensive cost in building a heavy industrial product. Such as a BMW, is energy. I know inflation issues will cause the ECB to raise at some point. ATM talking about doing it, without doing it serves a purpose.
A BMW is a discretionary item. So is a European vacation for most. The high food inflation will leave less money for these. The ECB raising rates just makes those purchases less likely. Adding to this. When the interest is raised, and the euro rises. The cost of a BMW is raised (anything EZ exports). With already low discretionary money being spent (food inflation). Raising the cost of vacations and BMW's. Means less workers will be needed. This is not as black or white as many seem to believe. Raising rates will have an affect on EZ employment. Agricultural economies may do better. France may do better than Germany. The ECB is caught between a rock and a hard place. Inflation verses employment. That's the reality.
those who can, do. those who cant, talk about those who can
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