Comments by "Grim Affiliations" (@grimaffiliations3671) on "TLDR News EU" channel.

  1. Draghi seems to be the only one who learned from the mistakes of post-2008 austerity. Europe should take his suggestions seriously if it has any hope of competing with China and the US
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  2. Having the ECB operate like a lender of last resort to support the bond markets of European nations that make large investments in their countries would be a great idea
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  3.  @zUJ7EjVD  It's not really "debt". It's just the stockpile of US treasuries. Treasuries and dollars come from the same printer and can only be converted for one another. When they add to the "debt" they just turn dollars into treasuries, and when they "pay it off" they just turn those treasuries back into dollars
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  4. The liz truss scenario was different. The UK borrows in its own currency, so borrowing costs are set by the bank of england, not the market. France borrows in the Euro, so the market decides their borrowing costs
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  5.  @icephoenix5466  the rate of debt levels to be agreed should be increased greatly. Currently Europeans countries are operating way below full employment due to limited demand. More spending fixes this
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  6.  @user_Esq  nonsense
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  7. Italy will never be able to solve those problems until it goes back to its soverign currency. A country that cannot print it's own money will alays struggle to come close to full employment
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  8. This is the downside of not controlling your own currency like they do in the UK, China, US etc
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  9. thats what austerity gets you
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  10. You need deficits for consistent growth, and growth comes with more tax revenue. So more spending could actually reduce the debt to GDP ratio. A lot of people look at Japan's 250% debt to GDP ratio and assume they spend too much, but they've actually opted for contractionary fiscal policy, and that has led to a collapse in tax revenue. So their high debt to GDP is a result of too little spending, not too much
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  11. The world is starting to realize that you can't get strong growth while pursuing austerity. You need the government to support demand wit expansionary fiscal policy
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  12.  @tomlxyz his use of the word "also" implies that he's referring to both. It can be a sign of good health and a desire for change
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  13. True. But i wonder why the EU doesn't back stop member state deficit spending when they spend on economic development like they did with covid? How can it be expected to compete with China or the US if it doesn't do this?
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  14. The market did not force up interest rates when liz truss announced her budget. The Bank of England has the last say on where interest rates are. They just betted that the central bank would raise rates independently due to the inflation, which they did
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  15.  @zachryder3150  Not entirely accurate though. What happened in the UK is that the currency depreciated so rapidly it led markets to speculate it would force an independent UK central bank to raise rates to prevent cost of living crisis getting worse. The market didn't force the rates higher
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  16. Japan has it's own sovereign currency. It doesn't need to be told how to run it's economy by foreign entities, and it certainly doesn't need to have austerity or "fiscal discipline" imposed on it by outside entities. It's in a whole other league
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  17. ​ @walideg5304 really? Then why does France limit its deficits? Why not deficit spent until you reach full employment? This will lead to tremendous growth
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  18. Before Tory austerity
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  19. Its a booming economy by the standards of a nation that doesn't control its own currency. Places like the US and China can use fiscal policy to stimulate their economy to a much larger degree than any European nation because they take up debt in their own currencies
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  20.  @Zyzyx442  Inflation has only fallen since the inflation reduction act was introduced. Im not saying it was the cause, but the idea that the IRA was inflationary is nonsense
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  21. who said it was bad?
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  22.  @Valadion1  Argentina borrowed heavily in foreign currencies, and often pegged their exchange rate to foreign currencies. That is not controlling your own currency. You only truly control your currency when you borrow exclusively in that currency and allow your exchange rate to float. Only a handful of countries can boast this
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  23. MMT economists were the first to call out the fiscal consequences of creating a monetary union for member states. His proposals are a good start to undoing them without having to disband
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  24. why doesn't the ECB just bail out the banks when a bank run happens instead of creating a pot of money? Not like the fed asked individual states to help them bail out the banks
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  25. Imagine having your interest rates determined by outside entities. Countries that borrow in their own currency could never relate
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  26. France should spend more to reach full employment. That will lead to growth, which will lead to more tax revenue without raising taxes
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  27. Deficit spending supports aggregate demand, which generates growth. That high growth generates more tax revenue. Austerity causes your economy to stagnate, and often leads to more deficits through a collapse in tax revenue. People look at Japan's 260% debt to GDP ratio and think, "wow they spent like crazy", but that ratio was actually caused by a fall off in tax revenue due to their contractionary fiscal policies
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  28. he said relative boom
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  29. It's never made sense to try and growth via austerity
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  30. austerity
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  31.  @kims4149  source?
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  32. it's also hypocritical to be uber nationalist and blame other countries for not wanting your language taught in their schools
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  33.  @ViJoker1 100%. Countries that do no control their own currency have very limited fiscal space to pursue their domestic priorities like full employment. Although to be honest, even countries that have their own currency (and only take up debt in their own currenct) do not realize the power they have and choose to slash their public spervices in favor of foolish austerity policies. Have you read a book called The Deficit Myth? It's fascinating and should be read but all world leaders
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  34.  @MatteoSettenvini  But that clearly isn't the case because the Fed and Bank of Japan (the counterparts of the ECB) have been printing massively for most of the last decade and they've actually struggled to get inflation up to 2% for the entire 2010's. Japan in particular has been struggling with deflation despite printing so much that they've acquired the largest debt to gdp ratio in the world. I'm also not convinced by the damage to the bonds because we haven't seen much damage to US or Japanese bonds in response to their spending Also if you're theory is right that it would cause inflation, which would cause higher interest rates, that would actually raise the value of bonds, as more investors buy them to take advantage of the higher rates.
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  35. yeah in usa and china
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  36.  @terryj50  the comment I was replying to is about the uk
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  37.  @alaoui9121  They're struggling because they act like they don't control their own currency and impose austerity
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  38.  @kims4149  which one?
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  39.  @BerlinBoi67  They don't currently do it for large investments, they usually qualify it with a bunch of strict and relatively austere policy targets
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  40. Land value taxes are the only taxes that cant be passed on to a consumer, because ant increase in rent will open you up to an identical increase in taxes
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  41.  @Hardcore_Remixer  What i don't get is why the bail out money needs to be paid for by individual states? The BOJ or the Fed don't need to collect money before they bail out banks,so why does the ECB?
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  42. Austerity is short sighted, it costs a lot on the front end, and doesnt save you money in the back end
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  43.  @terryj50  my comment was a reply to another comment, if you've got a problem with the original comment, then address the original comment
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  44. way less than i thought
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  45.  @bicker31  america isn't the only conutry with an infinite money glitch, pretty much every country that takes up debt in it's own currency is in the same boat
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  46.  @nobody-y7i1r  The UK leaaving the EU was dumb because they had their own currency
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  47. havin a single currency makes it difficult not to be forced into austerity. Check out a book called the deficit myth
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  48. France should run whatever deficit is necessary to achieve full employment. Yes this is risky since you do not have your own currency and thus have a realistic risk of default (unlike countries that borrow in their own currencies). But if you attained full employment, you would grow enough to keep your debt to GDP ratio low, as that growth will lead to higher tax revenues without raising taxes
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  49.  @louiscypher4186  they're protectionist because current rules incentivize that
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  50.  @thisbarb  Your means changes depending on your monetary sovereignty. When you have to grovel to foreign central banks for money, your means are significantly demised
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