By EconMatters
Oil and commodities are rising with renewed talk of buying bonds in Europe and future stimulus from the Federal Reserve in the United States. The problem of course is that higher oil prices partially offsets some of the benefits of these Monetary Initiatives by leaders (It is debatable how effective these policies actually are in solving the real issues and problems).
The way European economies are set up with regard to slow growth, mature countries with little innovation, high taxes, and even higher government spending commitments means the numbers just don`t add up. Europe could start from scratch with all debt forgiven and they would be right back where they are now in less than 10 years because the numbers just don`t add up. Until the numbers start to make sense all these monetary initiatives are just temporary stop gaps which actually make the numbers problem worse.
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