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Macron says €300B in EU savings sent to the US every year will be invested in EU

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Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#41
post #25
post #19

Earlier quoted context omitted.

Unfortunately the US Dollar is devaluing. In the past year the dollar went down by 11%. That means SP 500 which has gone up 13% in the past year has only gone up 2% for a European.

The fact that the EUR/U$S parity did not change much means EUR devaluated about the same, doesn’t it?

No the $ devalued against the euro by about 11% in the past 12 months. Look at a chart.

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#42
post #21

TIL EU savings rate is far more than US. 18.79% vs 3.50% Guessing that's somehow counting enforced deductions off paycheques. Would be a wild difference if not. https://tradingeconomics.com/european-union/personal-savings https://tradingeconomics.com/united-states/personal-savings

The US can always print more money to fund its institutions, but other countries have to save theirs. Sure, they can print more euro but when so much stuff they need is traded in USD, that's not nearly as effective as when the US prints more USD.

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#43
post #15

Earlier quoted context omitted.

> Unless the EU member states actually impose capital controls, investors will continue to send their capital wherever it can earn the highest returns. You don't need to introduce capital controls to make it unattractive to invest in the US. There are plenty of options that the EU could pull that would make investments abroad very unpopular quickly.

Those are capital controls by another name.

but not necessarily capital controls by a similar legislative difficulty, although at this point it's somewhat abstract what is being discussed.

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#44
post #5

Macron is making up numbers. Unless the EU member states actually impose capital controls, investors will continue to send their capital wherever it can earn the highest returns. Profitable investment opportunities in the EU remain slim and so far they seem uninterested in pursuing a growth policy.

Politics drives decision making in addition to just seeking returns, especially for government affiliated funds, e.g.: https://www.reuters.com/business/swedish-pension-fund-alecta... https://www.cbsnews.com/news/danish-pension-fund-treasuries-... (And remember that India and China combined reduced their holdings of US treasures by at least $50B in 2025: https://economictimes.indiatimes.com/news/india/amid-global-...…

Contrary to the implication, the Swedish fund that possibly sold $8b of its $100b worth of US Treasuries did not cite politics as its reason for doing so, and no part of the article backs up that claim. Additionally, selling out of the US dollar as the fed aimed to cut rates and as the dollar declined from historic highs against the Euro seems sensible regardless of politics.

Denmark has been exiting foreign bonds for 10 years, down from a high of $24b in 2016 to $10b in 2025. It’s not only part of a trend, but the cited $100m of bonds sold makes up a negligible 0.00026% of US treasuries.

On that note, 1 USD buys nearly $1.40 CAD.

Politics makes it easy to write stories that paint an incomplete or incorrect picture.

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#45

If like me you are wondering why the sunglasses, it looks like he is using that to mask an eye infection. https://www.independent.co.uk/news/world/europe/france-emman...

Probably just a broken blood vessel in the eye.

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#46
post #25
post #19

Earlier quoted context omitted.

Unfortunately the US Dollar is devaluing. In the past year the dollar went down by 11%. That means SP 500 which has gone up 13% in the past year has only gone up 2% for a European.

The fact that the EUR/U$S parity did not change much means EUR devaluated about the same, doesn’t it?

EUR/USD increased ~13% in the past year

https://www.xe.com/currencycharts/?from=EUR&to=USD&view=1Y

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#47
post #5

Macron is making up numbers. Unless the EU member states actually impose capital controls, investors will continue to send their capital wherever it can earn the highest returns. Profitable investment opportunities in the EU remain slim and so far they seem uninterested in pursuing a growth policy.

Politics drives decision making in addition to just seeking returns, especially for government affiliated funds, e.g.: https://www.reuters.com/business/swedish-pension-fund-alecta... https://www.cbsnews.com/news/danish-pension-fund-treasuries-... (And remember that India and China combined reduced their holdings of US treasures by at least $50B in 2025: https://economictimes.indiatimes.com/news/india/amid-global-...…

How much do EU government run funds invest in the US?

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#48
post #32
post #21

TIL EU savings rate is far more than US. 18.79% vs 3.50% Guessing that's somehow counting enforced deductions off paycheques. Would be a wild difference if not. https://tradingeconomics.com/european-union/personal-savings https://tradingeconomics.com/united-states/personal-savings

There's no "enforced savings" that I know of in Europe. 3.50% in the US sounds extremely low to me. It has fallen a bit recently but the savings rate was about 25% in France in 2020. Common knowledge says to strive to save at the very least 10% of one's revenue around here.

According to some sources, 1 in 4 Americans don't/can't save at all.

https://edition.cnn.com/2025/11/13/economy/job-prices-debt-e...

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#49

Earlier quoted context omitted.

[flagged]

One thing I remember from civics class: governments should think in terms of generations; not profits/losses.

That's true, but you have to actually be investing in growth for it to come up. Instead the next generation will get both spiriling interest payments and crumbling infrastructure.

Re: Macron says €300B in EU savings sent to the US every year will be invested in EU

#50
post #21

TIL EU savings rate is far more than US. 18.79% vs 3.50% Guessing that's somehow counting enforced deductions off paycheques. Would be a wild difference if not. https://tradingeconomics.com/european-union/personal-savings https://tradingeconomics.com/united-states/personal-savings

In the US people take on personal debt for something like a car. In the Netherlands (where I live) this is very uncommon: people save up, then buy it.
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