Despite an endless chain of monetary and fiscal stimuli, the Eurozone consistently disappoints in growth and job creation. One of the reasons is demographics. No monetary and public spending stimulus can offset the impact on consumption and economic growth of an ageing population, as Japan can also confirm.
However, there is an especially important factor that tends to be overlooked. The lack of competitiveness of the Eurozone industry due to rising and non-competitive power prices.
The United States retail sales and jobless claims weakness, significantly below estimates, coincides with the largest fiscal and monetary stimulus in history. Something is not right when these figures come significantly below estimates in an environment of massive upgrades to Gross Domestic Product (GDP). Why?
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Lance Roberts visits with Daniel Lacalle to discuss economist Daniel’s new book, “Freedom or Equality” as he shares his thoughts on the difference between equality and equal opportunity and whitewashing interventionism.