stop the sanctions? but yeah lol they're not gonna. they think they're winning, the absolute idiots.
they could but are the people at the top as adversely affected as the working class by this. The globalisation of capital might act as a weather against local economic issues for the capital owning class. The government can deal with issues faced by the non capital owning classes by simply not caring about them
We have Europeans on this very site who are still in denial and doing apologia for Ukraine and NATO (a certain German or Polish user comes to mind)
Sad that they are getting their future and their children’s future liquidated and bought out by American capital that pushed this war and they are still so cucked and beholden to them
This is definitely the EU's suez moment. Over the course of this year they've had their GDP eclipsed by China and now the average Chinese adult has more money than the average EU adult.
Oil Shock 3.0
Fed is jacking up interest rates to control inflation, European manufacturing is in a very serious energy crisis and becoming uncompetitive, nobody has any answers that can resolve this right now
nobody has any answers that can resolve this right now
Literally just stop sanctioning Russia. They did this to themselves and they can undo it easily.
The Nordstream attacks weren't against Russia. They were against Germany. In case they were having second thoughts on saving their industry with Russian gas
American central bank currency manipulation by interest rate adjustments.
Famously Marx was like “yeah this economics stuff is all hokum, you shouldn’t waste any time studying or trying to understand it.”
No, see the wealthy are utility monsters and this is the greatest possible good
Explaining the bible from a historical materialist lens is like explaining economics from a marxist lens. They're both defining religious texts that reflect the beliefs and norms of the cultures in which they were created.
Yes. People are fleeing other currencies because they are "weaker", driving down the price. There is no confidence in the future of those countries.
Clearly they need to practice more austerity and to completely privatize all publicly owned assets. :very-intelligent:
The OECD this week slashed its forecasts for growth in the global economy from 2.8 to 2.2 per cent in 2023.
For Australia, the downgrade was from 2.5 to 2.0 per cent.
"That will have an impact on our own growth prospects in the domestic economy. And that has consequences for unemployment as well. And I think you'll see that in the forecasts in the budget, which are being finalised as we speak."
The "Stage 3" income tax cuts legislated by the previous Morrison government will go ahead as planned and without modification, the treasurer confirmed.
The cuts will kick in from July 2024 and will abolish an entire bracket from Australia's tax system so everyone earning from $45,000 to $200,000 will pay only 30 cents of every dollar they earn.
The biggest winners from the cuts will be high-income earners.
Ah, well, nevertheless,
The “Stage 3” income tax cuts legislated by the previous Morrison government will go ahead as planned and without modification, the treasurer confirmed.
:joker-dancing:
Currency increasing in value isn't necessarily good for the economy though
It’s great for people rich enough to go on vacation in Europe though!
Relative currency increases are great for import markets. Unfortunately, I would need a functional supply chain and a relatively stable geopolitical environment to access those high-value/low-cost imports from within the state with the currency-of-increasing-value.
And with energy costs on the rise, all the arbitrage I get by shopping for pears picked in Hondurus and canned in Vietnam vanishes in the face of S&H fees.
The downside is mainly that your exports gets a lot more expensive , which makes it harder to compete in an international market and therefore negatively impacts balance of trade.
Exported US LNG growing relatively more expensive by the day, while Europeans just had their last chance towards recovery blown up in 4 places
But doesn’t that mean people pay more for your exports and therefor you can buy more of other countries’ goods with that increased value?
Okay that’s actually another thing I don’t understand, don’t import and export values kinda have to match due to the fact that trade is an exchange?
Like maybe not 1-1 for every country we’re trading with, but ultimately you’re trading labor performed in one place for labor performed in another, and doesn’t that all ultimately have to even out?
I do not understand economics it’s dark magic and seems to just conjure results out of the void. Only in economics are obvious good things like “My money is worth more” bad actually.
It doesn't really even out because the buyer isn't paying only for labor and production cost, but also for the capitalist to make a profit.
But the capitalist profits are already accounted for when measuring trade balance. Obviously the capitalists are taking a cut on every transaction, but that is technically still money going one way or the other
Yes but somtimes money just apears from thin air. So coutry a can buy a shipment of grain from coutry b and conjure money to pay without an equivalent sale to any other coutry.
The US is a net importer but not by an enormous margin, and it's still the second biggest exporter in the world.
People just switch to somewhere else that has cheaper exports (assuming intact globalized supply chains and alternatives, which is a big assumption)
It's a problem for price sensitive industries since an increase in price means people won't buy the product at all. Cheap imports also means less incentive for domestic production which can be bad
Still, for stuff like the gas inudstry it's a huge win because EU is gonna keep paying no matter what
Yeah you can buy more for other people's good
But other people will buy less of your goods.
So for example visiting America will be very expensive for people from other countries now. But it'll be relatively cheap for an American to visit the other country
If money is worth more and more then you’re not gonna use it as a medium of exchange and instead use it as a store of value by socking it under your mattress.
If this trend continues, when will the crossover point be when the American Burger King employee makes more money than a Danish one?
Currently, an Australian MacDonald's Employee is making about $15.50 per hour USD after the crash.
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