Euro Breakup

[globaleconomicollaps]

from FT.

Published on Jul 3, 2012 by FinancialTimesVideos

http://www.FT.com/ The growth of savings globally exacerbated by negative economic policies is choking economic growth, according to Charles Dumas, chief economist of Lombard Street Research. As a result, he suggests to Long View columnist John Authers that the best route to take now - and politically the easiest for Germany - is to dismantle the eurozone.

Dumas shows this graph:

and says that this is the result of governments paying down debts and not indicative of private individuals saving and investing more. Does this strike you as correct? What if he is wrong and we are going to see five plus years of zero interest rates?

[c1ue]

Re: Euro Breakup

and says that this is the result of governments paying down debts and not indicative of private individuals saving and investing more. Does this strike you as correct?

The failure to distinguish between 1st world indebtedness and 2nd/3rd world reserve accumulation is a major caveat to anything else dumas talks about.

What if he is wrong and we are going to see five plus years of zero interest rates?

Given that the ZIRP is for Europe and the US, which are both in no way increasing 'savings' - certainly not at the government level - I don't see how you can extrapolate anything useful from dumas' premise to (what I believe you refer to) US interest rate policies.