The Euro: Winners and Losers
Posted: 07 Apr 2017, 21:34
Whilst it should be apparent to anyone with a pulse who the Euro was designed to benefit, Chris Hamilton has posted a very thought provoking essay as to why.
Whether the decline in energy consumption will offset declining decent quality oil production remains to be seen.
Chris Hamilton: Euro Saves Germany, Slaughters the PIIGS
Ultimately the way in which the Euro was created will result in its demise. Wynne Godley called that back in 1992
To highlight the linkage of Core populations to economic activity, the chart below shows the European 25-54yr/old population vs. the best indicator of economic activity, total energy consumption (data available starting from 1980). The implications are pretty straightforward. European economic activity (& resultant energy consumption) will contract for decades, at a minimum, with the declining Core population. The pie is shrinking and now it's simply a fight for who gets bigger slices
Whether the decline in energy consumption will offset declining decent quality oil production remains to be seen.
Chris Hamilton: Euro Saves Germany, Slaughters the PIIGS
Ultimately the way in which the Euro was created will result in its demise. Wynne Godley called that back in 1992