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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

#81

Post by baxtr »

the_mitsuhiko wrote: post #12
nradov wrote: 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.

> 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.

Like how…?

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

#82

Post by embedding-shape »

thatguy0900 wrote: post #56
embedding-shape wrote: post #33

Earlier quoted context omitted.

> The only reason the IMF hasn't taken the reins of France yet is because France has the nuclear weapon and is the only country in the eurozone to have it, so they have some leverage with the other countries in the eurozone. Haha, what? How is France having nuclear weapons leverage over other countries in the Eurozone? What kind of thing do you think the Eurozone or EU even is? We don't use threats of violence agains…

I took it to mean more that europe relies on France for nuclear deterrence against outside threats so treats them with gentle gloves more than Europe is afraid of France nuking them. Right now more than ever they really need someone with nukes on their side.

> I took it to mean more that europe relies on France for nuclear deterrence against outside threats

Yeah, that tracks, re-reading with that interpretation makes it make a whole lot more sense than what I understood at first reading. Thanks a lot for helping me understanding it better!

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

#83

Post by wat10000 »

godzillabrennus wrote: post #40
nine_zeros wrote: post #14

Earlier quoted context omitted.

> Macron is making up numbers So is Trump. This is all just response to bullying. "I got big muscles" "Oh yeah, I got big muscles too" This all is happening because America elected a criminal clown, twice.

Let me fix that for you. This is all happening because the institutions in America failed to deliver for working-class people for over four decades, and Americans got fed up, elected a billionaire willing to be a bulldozer of those institutions and the systems that work for knowledge workers, twice.

American voters elected the people who ran those institutions, or appointed the leaders of those institutions.

I know we all want it to be some shadowy cabal so we can pretend the average person didn't cause this, but it isn't. We did this to ourselves.

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

#84

Post by everybodyknows »

abirch wrote: post #19
nradov wrote: 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.

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 DXY dollar index:

https://www.cnbc.com/quotes/.DXY?qsearchterm=dollar%20index

The big move down happened March-June.

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

#85

Post by coffeebeqn »

Havoc wrote: 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

Retirement accounts are more like social security than 401k. There’s no set amount of euros set aside for me it’s all in the pool paying for older peoples retirement

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

#86

Post by swarnie »

mkjs wrote: post #80
seszett wrote: post #32

Earlier quoted context omitted.

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.

The UK has "enforced savings" in the form of auto-enrollment pensions for over 10 years. Looks like Ireland is just starting to do it too.

That's mostly to prepare teenagers at the time for having no state pension in 50 years.

I have about seven of the buggers and I'm only in my mid 30s.....

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

#87

Post by victorbjorklund »

f1shy wrote: post #25
abirch wrote: 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?

False. Dollar has crashed against Euro.

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

#88

Post by wat10000 »

direwolf20 wrote: post #35
embedding-shape wrote: post #33

Earlier quoted context omitted.

> The only reason the IMF hasn't taken the reins of France yet is because France has the nuclear weapon and is the only country in the eurozone to have it, so they have some leverage with the other countries in the eurozone. Haha, what? How is France having nuclear weapons leverage over other countries in the Eurozone? What kind of thing do you think the Eurozone or EU even is? We don't use threats of violence agains…

Well they're right: The IMF routinely takes over countries that have too much debt, but it hasn't done this to France.

Which ones?

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

#89

Post by charamis »

embedding-shape wrote: post #33
TacticalCoder wrote: post #17

Earlier quoted context omitted.

[flagged]

> The only reason the IMF hasn't taken the reins of France yet is because France has the nuclear weapon and is the only country in the eurozone to have it, so they have some leverage with the other countries in the eurozone. Haha, what? How is France having nuclear weapons leverage over other countries in the Eurozone? What kind of thing do you think the Eurozone or EU even is? We don't use threats of violence agains…

> Haha, what? How is France having nuclear weapons leverage over other countries in the Eurozone? What kind of thing do you think the Eurozone or EU even is? We don't use threats of violence against each other in negotiations. France having nuclear weapons or not matters zilch in these conversations, because we're all allies.

Greece says hello!

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

#90

Post by the_mitsuhiko »

baxtr wrote: post #81
the_mitsuhiko wrote: post #12

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.

Like how…?

By taking inspiration from the US. The US has PFIC for instance and many other reporting requirements that make it more attractive to invest in the US than abroad.
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