Eurozone now world's largest economy

Discussion in 'Politics, Religion, Social Issues' started by Queso, Mar 19, 2008.

  1. Queso macrumors G4

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    Not sure whether this was picked up on, but last Friday the continuing strength of the Euro against the Dollar finally led to the US slipping off the economic #1 spot to make way for the Eurozone. Although technically made up of 15 nations, the Eurozone economy has been particularly robust against the effects of the credit crunch, leading to the currency soaring in value over the past four months. To prove the point, the ECB even announced record business lending figures for February.

    The Eurozone's combined GDP figure for 2007 was $13,880,568.4 billion, slightly higher than the USA's $13,843,800 billion.

    Reuters
     
  2. Desertrat macrumors newbie

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    #2
    Yeah, as long as the Fed is rescuing these outfits like Bear Stearns, merrily monetizing the debt along the way, lowering the FedRate, the dollar's gonna keep on going down. That means the Euro's up (as are most other currencies) and so we have essentially meaningless numbers games like this one.

    "Monetizing the debt" means somewhere along the line, YOU pay, I pay, WE pay; we all get the queen's elevator: The Royal Shaft.

    The downside for the Euro folks, of course, is that at some point we buy a lot less from them. Already, Aerbus has been having problems with export sales due to the high Euro.

    'Rat
     
  3. Don't panic macrumors 603

    Don't panic

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    #3
    airbus is peanuts. The real problem is the CHEESE.
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  4. Gelfin macrumors 68020

    Gelfin

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    #4
    This must be a lie. The European economy cannot do anything but stagnate because you all work 25 hour weeks and pay 97% taxes. Our tallest, most expensively coiffed politicians have told us so, so it must be true.
     
  5. Queso thread starter macrumors G4

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    It's basically German fuelled. For over a decade Germany was paying to integrate the Former DDR into its economy and rebuild the infrastructure. Now that's just about done their growth is accelerating again, dragging the surrounding countries up with it. Good job too, because some of the other major Eurozone countries are having a bit of a slowdown, such as Spain where 20% of GDP was in the construction sector, now all but obliterated due to scandals and Town Hall land grabs. Overall Eurozone growth is down on last year, but it's pretty much expected to be a blip rather than a trend. Contrast that with the UK where the last great hope appears to be that the stronger Euro will raise UK exports and counterbalance the absolute carnage happening in the financial sector. Time will tell on that one.
     
  6. Teh Don Ditty macrumors G4

    Teh Don Ditty

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    Not really surprised at all by this. Kudos to the countries in the Eurozone for making it happen.

    Perhaps the good ole U S of A can take a few pages from your book. Probably not.
     
  7. CalBoy macrumors 604

    CalBoy

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    #7
    I thought this happened earlier?

    Hasn't it been higher since like 2005? Or was that not by PPP?

    Edit: nevermind, I was thinking of the EU. :eek:
     
  8. Ugg macrumors 68000

    Ugg

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    #8
    That was my first thought as well. The Eurozone has truly transformed itself. Even little Slovenia is on a roll.

    Too bad about Ireland though. What goes up, must come down.
     
  9. leekohler macrumors G5

    leekohler

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    #9
    As long as we keep electing Bushes and Clintons, it's never going to happen. Our population will get more stupid and we'll be even worse off than we are now.
     
  10. mactastic macrumors 68040

    mactastic

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    #10
    Indeed. Socialists, the lot of them. Can't manage an economy to save their commie asses. They're in their last throes I tell ya...
     
  11. Teh Don Ditty macrumors G4

    Teh Don Ditty

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    Ain't that the truth. The movie 'Idiocracy' comes to mind.
     
  12. stevegmu macrumors regular

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    #12
  13. Desertrat macrumors newbie

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    #13
    stevegmu, per capita GDP in this cmparison doesn't matter. The deal is that the decline of the dollar agaisnt the Euro has made their "value" greater.

    Playing the "if, if, if" game, if the Fed raised the rate a couple of percent and we went on and took our lumps and got over a bad recession in a couple of years, the dollar would rise against the Euro and we'd be back to having bigger numbers for GDP.

    All in all, however, the number of widgets they make and the number of widgets we make would be roughly constant through it all...

    FWIW, I saw some news article today that Italy's making grumbling noises against remaining in the Euro deal. As said above, Germany is pretty much the power house. And, the "little guys", the newcomers, are doing pretty well because of lower labor rates and quite entrepreneurially capitalistic attitudes.

    'Rat
     
  14. Prof. macrumors 601

    Prof.

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    #14
    Goodbye, US of A :(

    Once the NAU takes full affect, we'll be back on top.:cool::rolleyes:
     
  15. Eraserhead macrumors G4

    Eraserhead

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    #15
    Also as the EU calculate trade together and there are quite a few EU countries not in the Euro (Primarily the UK, but also most of the new EU countries) so on trade our overall weight is considerably larger.

    Probably not, as the UK alone has a higher GDP than Canada and Mexico put together (source).
     
  16. solvs macrumors 603

    solvs

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    #16
    You forget, the Dems are coming into power. It will be proof they are failures with the economy, and when things get better in a few years, it will be because of the current regime. Right now, thankfully we're not yet in a recession. Just the ebb and tide of how things work, with the rising and falling economy that no one can do anything about. As long as the GOP is charge. Again, that will change when the Dems take over, and suddenly it will no longer be a question of whether we're in a recession, we will be. Even if we aren't.

    The sad part is that I'm only playing strawman a little, and have actually argued with those who've said as much.
     
  17. Queso thread starter macrumors G4

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    #17
    Italy hasn't done particularly well out of the Euro, but mostly not for reasons they'd admit to. All that Black Money Lire everyone had stored away had to pass through the banks and be declared in order to be converted into Euro, and since a large part of Italian economic activity was funded by this hidden money their government suddenly taking its slice of it led to stagnation in the labour market, an increase in unemployment and a pause in growth.

    Italy does have a major advantage over most countries in the EU though, in that they are one of the few that have retained a sizeable manufacturing base. I'm not surprised they want out now, but if they can be convinced to stick with it they will benefit in the long run.
     
  18. Prof. macrumors 601

    Prof.

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    #18
    Oh, wow. We suck.:eek:
     
  19. MacHipster macrumors 6502

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    #19
    Isn't the North Amrican Union just a myth?
     
  20. Kashchei macrumors 65816

    Kashchei

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    #20
    I have to agree. Obama's speech on race brought up a verboten topic, but another one is our stupidity and complacency. "We're Number One!" rings true less and less, and the blind patriotism of the GOP will force them to argue until they are red in the face since they can't face this fact. They'd rather elect McCain since he will become their enabler, which is to say à la Reagan, "he makes them feel good."
     
  21. Prof. macrumors 601

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    No. However, no one knows for sure when it will take affect. Some ppl say it's already in place while others say it won't be until 2012.

    The NAU could be the greatest thing we have ever done or it could be the worst thing we have ever done. Only time will tell.
     
  22. stevegmu macrumors regular

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    #22
    I guess only 5% of the country are Dems.

    http://www.cbsnews.com/stories/2007/06/27/opinion/pollpositions/main2987075.shtml
     
  23. MacHipster macrumors 6502

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    #23
    Being that all three governments have said they have no plans to do this, I regard it as a myth. Do you have evidence of any government proposal that says otherwise?
     
  24. Prof. macrumors 601

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    #24
    Ummmmmm... Is google considered a source?


    :D
     
  25. it5five macrumors 65816

    it5five

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    #25
    Yes. The only people that think it's true are also the same people that think 9/11 was an inside job.
     

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