Some must reads: According to the Economist the biggest time bomb in the euro zone crisis is France.
We wonder why the United States and Britain, that have same weak trade balances, the same weak competitiveness and a debt overhang, shouldn’t have a problem?
Just because France must do austerity according to the German Fiscal Compact wish, and the US and Britain do not need to do this?
Or like Ray Dalio called it, are the US and Britain doing a beautiful deleveraging? Or is financial repression and accumulation of debt a real danger, given that the earlier phase of debt deleveraging after the WWII in the 1950s was driven by negative real interest rates and financial repression, but also with strong growth. Where is the strong growth today to be able to repress financially?Previous post See more for Next post
Tags: competitiveness,Dalio,debt,deleveraging,France,trade deficit,U.K.,United States