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FedEx Ground warehouse workers are unionizing right now.
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<blockquote data-quote="Ricochet1a" data-source="post: 867210" data-attributes="member: 22880"><p>Trying to gauge the strength of a nation's economic policy by looking at a snap shot of a particular commercial market index within that nation is about as spurious of an argument as can be made. </p><p></p><p>I'm assuming you are looking at the DAX and how it is sitting just below 6000 right now, down from a 52 week high of about 7600. </p><p></p><p>STOCK markets go up and down based upon profitability prospects of the stocks listed within that market. There is tremendous VOLATILITY within STOCK markets - recently due in large part to the US debt ceiling debacle and the downgrade of the UNITED STATES credit rating (sovereign debt rating). </p><p></p><p>Germany is, and for the next 25+years at least will be the economic powerhouse of Europe. </p><p></p><p>Long term economic and monetary policy is what is being discussed, not a snap shot of a particular stock market performance. My portfolio took a beating in the past week - does that mean the US is headed into the dumper - don't think so. </p><p></p><p>Europe isn't in danger of collapsing, the SOVEREIGN debt of southern European nations has threatened those governments' abilities to continue on their course of deficit spending - not the health of the companies operating within. The problem isn't economic output, it is governments that can't balance their books and the population which wants handouts. The US government is facing the same issue - there is a tremendous gap between revenues and expendatures, which can't continue. </p><p></p><p>The greater issue within Europe is that they have a single currency, yet each nation maintains a separate economic policy. With a single fiat currency, this won't work. This is why either the southern European nations will either have to leave the Euro and go back to a national currency, or the economic policies of each EU nation will have to be approved by the EU central banking system (not likely).</p><p></p><p>Before the Euro, each nation could crank up the printing presses, devalue their currency and solve their domestic deficit problem that way. They can't do that now - the individual nations of the EU can't crank out Euros independently. Due to this phenomenon, the Euro has asumed the characteristics of a commodity (much like physical gold) rather than a fiat currency (Greece can't create Euros out of thin air). This is what is creating all the problems. In the past, the peseta, lira and drachma could be devalued, and the problem would disappear. It would drop the value of the holding of each of those currencies, being a de facto confiscation of wealth or instant flat tax - depending on point of view. That is why those currencies were NEVER held - they were converted into stable currencies (US Dollars, Japanese Yen, German Mark) if the "wealth" were to be kept liquid for a period of time. Now those countries are dealing with a currency which they have no control over, so they have to end their previous behavior and start balancing their books. The Euro has only been the sole currency in most European nations for just about 10 years and it is already causing massive problems. Either Europe will adopt integrated national economic policies (won't happen) or the Euro will become a transnational currency with each EU member nation reverting back to a national currency for regular domestic transactions. </p><p></p><p>This is part of the original goal of introducing the Euro - FORCING a common economic policy on the member nations. It was also the reason why many nations resisted accepting the Euro - and the UK to this day still has a sovereign currency (GBP). I can't imagine the Brits ever giving up the Pound now, nor should they. </p><p></p><p>Try this...</p><p></p><p>Compare the yields on 10 year sovereign debt for all European bonds. The lower the yield, the greater the confidence in that government's ability to meet its debt obligations without difficulty. Compare the yield of the Greek 10 year note and the German 10 year note. Let us know what you find out...</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 867210, member: 22880"] Trying to gauge the strength of a nation's economic policy by looking at a snap shot of a particular commercial market index within that nation is about as spurious of an argument as can be made. I'm assuming you are looking at the DAX and how it is sitting just below 6000 right now, down from a 52 week high of about 7600. STOCK markets go up and down based upon profitability prospects of the stocks listed within that market. There is tremendous VOLATILITY within STOCK markets - recently due in large part to the US debt ceiling debacle and the downgrade of the UNITED STATES credit rating (sovereign debt rating). Germany is, and for the next 25+years at least will be the economic powerhouse of Europe. Long term economic and monetary policy is what is being discussed, not a snap shot of a particular stock market performance. My portfolio took a beating in the past week - does that mean the US is headed into the dumper - don't think so. Europe isn't in danger of collapsing, the SOVEREIGN debt of southern European nations has threatened those governments' abilities to continue on their course of deficit spending - not the health of the companies operating within. The problem isn't economic output, it is governments that can't balance their books and the population which wants handouts. The US government is facing the same issue - there is a tremendous gap between revenues and expendatures, which can't continue. The greater issue within Europe is that they have a single currency, yet each nation maintains a separate economic policy. With a single fiat currency, this won't work. This is why either the southern European nations will either have to leave the Euro and go back to a national currency, or the economic policies of each EU nation will have to be approved by the EU central banking system (not likely). Before the Euro, each nation could crank up the printing presses, devalue their currency and solve their domestic deficit problem that way. They can't do that now - the individual nations of the EU can't crank out Euros independently. Due to this phenomenon, the Euro has asumed the characteristics of a commodity (much like physical gold) rather than a fiat currency (Greece can't create Euros out of thin air). This is what is creating all the problems. In the past, the peseta, lira and drachma could be devalued, and the problem would disappear. It would drop the value of the holding of each of those currencies, being a de facto confiscation of wealth or instant flat tax - depending on point of view. That is why those currencies were NEVER held - they were converted into stable currencies (US Dollars, Japanese Yen, German Mark) if the "wealth" were to be kept liquid for a period of time. Now those countries are dealing with a currency which they have no control over, so they have to end their previous behavior and start balancing their books. The Euro has only been the sole currency in most European nations for just about 10 years and it is already causing massive problems. Either Europe will adopt integrated national economic policies (won't happen) or the Euro will become a transnational currency with each EU member nation reverting back to a national currency for regular domestic transactions. This is part of the original goal of introducing the Euro - FORCING a common economic policy on the member nations. It was also the reason why many nations resisted accepting the Euro - and the UK to this day still has a sovereign currency (GBP). I can't imagine the Brits ever giving up the Pound now, nor should they. Try this... Compare the yields on 10 year sovereign debt for all European bonds. The lower the yield, the greater the confidence in that government's ability to meet its debt obligations without difficulty. Compare the yield of the Greek 10 year note and the German 10 year note. Let us know what you find out... [/QUOTE]
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