James "Iago" Adams, The Dow Jones appears to have arisen for several reasons:
1. Europe is working towards changes to Europe's governing treaties. 2. Good news for US Manufacturing in the month of November 3. China announces its intention to lower their banks' reserve ratio in stark contrast to their 6 increases of the ratio over the past year.
However, Iago, these issues are not reason for the stock market to go up. I predict a major drop-off in the near future.
Europe is trying to put together changes to their treaties to demand that participating countries enact balanced budget amendments to their constitutions. This will ensure that IN THE FUTURE they don't have issues similar to the ones they face now. This does nothing to solve the current crisis. If all countries submit to a more centralized financial apparatus with more power to force changes upon Europe's nations, all we will see is more austerity measures across the whole of Europe. These austerity measures, in the form of higher taxes and reduced government expenditures, will put Europe's economy in a strangle-hold, crushing any potential economic growth in the foreseeable future. Basically, the "solution" to this crisis will only harm Europe further. Perhaps it's time the Europeans take a look at Iceland's model for escaping the fetters of stifling debt.
1 comment:
James "Iago" Adams,
The Dow Jones appears to have arisen for several reasons:
1. Europe is working towards changes to Europe's governing treaties.
2. Good news for US Manufacturing in the month of November
3. China announces its intention to lower their banks' reserve ratio in stark contrast to their 6 increases of the ratio over the past year.
However, Iago, these issues are not reason for the stock market to go up. I predict a major drop-off in the near future.
Europe is trying to put together changes to their treaties to demand that participating countries enact balanced budget amendments to their constitutions. This will ensure that IN THE FUTURE they don't have issues similar to the ones they face now. This does nothing to solve the current crisis. If all countries submit to a more centralized financial apparatus with more power to force changes upon Europe's nations, all we will see is more austerity measures across the whole of Europe. These austerity measures, in the form of higher taxes and reduced government expenditures, will put Europe's economy in a strangle-hold, crushing any potential economic growth in the foreseeable future. Basically, the "solution" to this crisis will only harm Europe further. Perhaps it's time the Europeans take a look at Iceland's model for escaping the fetters of stifling debt.
Post a Comment