First of all, i have not studied economy and do not claim any expertise in that area. However, i do follow the news quite extensively, and these are just amalgations of observations combined with logical reasoning.
With both the U.S.A as well as Europe having to deal with colossal problemns considering the economy, i can't help but think that the economy in it's current state is slowly dying. First, the situation in the U.S. which is probably known to most. As the debt of the U.S. is constantly rising, it slowly reaches the limit the government might have as a debt. However, due to the absence of a majority in both of the political entities for one side (and ultimately the biggest flaw of a two party dominance) nothing is done to solve that crisis and one could speak of a stalemate. This results in the loss of trust in the dollar as a world-currency, which also results in inflation of the dollar.
Less known is the situation in Europe. The EU, modeled after the U.S., is in a crisis not seen before. As the EU harbors both countries on with debts rising fast, as well as a country that is nearly bankrupt, it struggles to solve these problems. If these countries go bankrupt, the trust in the euro too wil dwindle, as it is the currency used by all these countries. Greece, which doesn't have that big of a gnp, is being held on life support and might slowly recover. To prevent the demise of the countries with a bigger gnp that are in the danger zone, a supranational financial emtity is required that has a mandate to act independently. This requires the loss of sovereignity, which will not be accepted by every country. This basically makes it yet another political stalemate, though this one shows the flaws of a currency union that is not backed by a political union. The result is a low trust in the euro, and thus inflation.
The fundamental problem of our economy is shown by these two similar examples. The whole problem being that politics can't get a grip on the problems by it's own incompetence. The fact that stock brokers have a sizeable influence which only worsens the problems also is a big flaw in the economy, which slowly dies as a result.
The economy has an effect on us all in some way, so i'm curious what others think. Disagree, or not? Are there any solutions worth a shot?
With both the U.S.A as well as Europe having to deal with colossal problemns considering the economy, i can't help but think that the economy in it's current state is slowly dying. First, the situation in the U.S. which is probably known to most. As the debt of the U.S. is constantly rising, it slowly reaches the limit the government might have as a debt. However, due to the absence of a majority in both of the political entities for one side (and ultimately the biggest flaw of a two party dominance) nothing is done to solve that crisis and one could speak of a stalemate. This results in the loss of trust in the dollar as a world-currency, which also results in inflation of the dollar.
Less known is the situation in Europe. The EU, modeled after the U.S., is in a crisis not seen before. As the EU harbors both countries on with debts rising fast, as well as a country that is nearly bankrupt, it struggles to solve these problems. If these countries go bankrupt, the trust in the euro too wil dwindle, as it is the currency used by all these countries. Greece, which doesn't have that big of a gnp, is being held on life support and might slowly recover. To prevent the demise of the countries with a bigger gnp that are in the danger zone, a supranational financial emtity is required that has a mandate to act independently. This requires the loss of sovereignity, which will not be accepted by every country. This basically makes it yet another political stalemate, though this one shows the flaws of a currency union that is not backed by a political union. The result is a low trust in the euro, and thus inflation.
The fundamental problem of our economy is shown by these two similar examples. The whole problem being that politics can't get a grip on the problems by it's own incompetence. The fact that stock brokers have a sizeable influence which only worsens the problems also is a big flaw in the economy, which slowly dies as a result.
The economy has an effect on us all in some way, so i'm curious what others think. Disagree, or not? Are there any solutions worth a shot?