The Eurozone is caught in a debt trap. To keep countries able to service their debts, the European Central Bank (ECB) will likely devalue the euro and maintain low interest rates. This comes as public debt continues to climb, even with the region just barely entering a recession. The situation raises questions about the Eurozone's resilience, especially if the recession deepens and tax revenues plummet, a common occurrence during severe crises. Optimists may be in for a shock if they believe a swift return to stable growth is possible.
Eurostat reports that Eurozone public debt slightly increased in Q1 2023. The debt-to-GDP ratio rose to 88.7% from 88.2% in the previous quarter, with total debt reaching €12.926 trillion, up from €12.733 trillion.
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And that's 12 years ago. And: they're hiding growing parts of the debt in different balance sheets!
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Yes, that's 12 years ago. Still piling up! Where are they right now!!
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21 sats \ 0 replies \ @gmd 22 Jul
Sadly the US is way up there now too ...
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Looks like the PIGS didn't learn anything from the last financial crisis.
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Eurostat reports that Eurozone public debt slightly increased in Q1 2023. The debt-to-GDP ratio rose to 88.7% from 88.2% in the previous quarter, with total debt reaching €12.926 trillion, up from €12.733 trillion.
The situation is quite serious
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66 sats \ 0 replies \ @jp305 22 Jul
Considering that GDP is increasing because of QE and not productivity gains, yes it is quite serious.
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The debt-to-GDP ratio rose to 88.7% from 88.2% in the previous quarter
So, they are only using 11.3% for their country. That means they need more money and they will take more debt. The debt will keep on piling and Europe will never come out of it until some miracle happens!
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The miracle will be the crash of the Euro
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