Which Country Will Trigger The Next Eurozone Crisis?
Which Country Will Trigger The Next Eurozone Crisis?
In capitalism, appropriately every 6-8-10 years a new crisis, a recession approaches. The last, smaller one was 7 years ago in many countries… (around 2012). The debt crisis of 2008-2009 was cured with even more debt, some experts are afraid the problems were only prolonged, not solved.
About 10 years ago, we spoke about Irish crisis, the Portuguese needed a bailout, Spain was rescued. Later the Greeks, and also Cyprus… Ultimately Italy seems to be the “sick man of Europe”, but who knows? Who will be next?
I listed also countries from outside of the eurozone which have a great impact on the economy and finance of my continent. For example, part of Turkish debt is held by German and other European banks. The USA can ruin the European industry with its import tariffs, and China can ruin all the global economy with its size and internal problems.
(Photo: Own work)
- Greece
- Italy
- Spain
- Turkey
- USA
- China
- Russia
- United Kingdom
- Germany
- France
- Something else from outside the eurozone
- Something else from inside the eurozone
- There will be no more Euro crisis
- I don’t care, living in the woods already
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Housing bubble in the nordics is a thing I'm thinking about. Its interesting because non consensus. That's about it
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caution: the following user has no idea what the fuck he is talking about, take what I say with a grain of salt... or a pound
Ok, I personally feel a bit worried with the amount of debt in the USA. We have more and more people getting auto-loans [ that they can't afford ] for cars, mortgages [ that they can't afford ] for housing, regular loans [ that they can't afford ] to pay off school-debts, school debt itself is at an all time high.
I just feel like we have about 3-4 debt bubbles all growing at once. My theory is that when you have multiple bubbles growing at the same time, the "popping" effect will be ten-times greater than with single debt-bubbles. Theses bubbles need room to grow, but now their bumping into each other, so they don't even have the normal amount of "debters-space" that they usually get, and when one pops it's just gonna set the other ones off at the same time...
Ok, maybe I took the whole bubble-metaphor a bit too far, point is I don't have high hopes for the future of the US economy...
Another possibility: All debt will be inflated - the high inflation will make debt worthless. A tool often used by states. I think this happened with the debt USA accumulated during the WW2.
oh that's interesting. Like I said, I'm not very well educated on economic principals, so I didn't know about the inflation strategy.
How does this work exactly? Do states just declare inflation which forces debt seekers to more or less forget about it as it is no longer worthwhile? What's stopping these institutions from just raising the debt in order to follow along with inflation?
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In the Eurozone we have approx. 1.5 of y/y inflation and bond yields are between 0-1 percent in the most secure countries. So bond holders are paying the bill of the debt, losing all the time in real terms. But also small savers, investors holding bank accounts are paying the bill.
No, states (central banks) aren't declaring "we will inflate your money, we take a part of the value from you" because more people would avoid it. They just do it silently.
I think I will write a post about this.
Please do! As someone who keeps meaning to learn economics [ the fundamentals, at the very least ], I'd be happy to read your post :^)
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Done:
https://steemit.com/economy/@deathcross/secrets-about-inflation-everyone-should-know
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