Italy’s comeback, Germany’s decline, China’s massive stimulus & more
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China’s increased retirement anger: https://www.economist.com/china/2024/09/17/anger-abounds-as-china-raises-its-strikingly-low-retirement-age
Data hiding: https://www.economist.com/briefing/2024/09/05/the-chinese-authorities-are-concealing-the-state-of-the-economy
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SOURCES:
I’ve linked my sources in the blog that goes along with this video. Links are in the text.
https://www.moneymacro.rocks/blog
Timestamps:
0:00 – intro
0:22 – Italy’s comeback
2:31 – Germany’s decline
4:02 – central bank shenanigans
6:16 – China’s bazooka
Attribution:
Music by Epidemic Sound: http://nebula.tv/epidemic
Thank you to AP Archive for access to their archival footage.
Stock footage and others clips by Getty
Narrated and produced by Dr. Joeri Schasfoort
Edited by Chris Adewole
30 Comments
Get access to global coverage at an exclusive 20% discount at https://economist.com/moneymacro
lmao reveals his source is the economist.
Sponsorship by the economist, congrats man 🎉
The EU needs a common fiscal policy for its Common monetary policy. This could Absorb the debt of countries with high debt, reduce Regional inequality, provide the ECB with more flexibility, and stop the need for Austerity.
Orange buttons….
President Xi as Sodleir from TF2 in the thumbnail lol (If you don't know,soldier is the American nationalist of the game basically) Great video by the way!
For china, if there are no orders, there are no orders.
We have had exceasive supply and lackluster demand for yrs
Premier Wen of China said falling global demand was an issue way back in 2012 and many countries have been probing up subsidies ans state aid in one form or another for yrs
Now we cannot kick the can down road because we have run out of roads
I was in Italy – San Remo last week. It was so sad seeing all the infrastructure degrading/declining. I am hoping for Italy to get a better future.
I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated.
The fact that industry is -5% yoy while GDP is only mostly stagnant shows a remarkable swing happening in the German economy; hopefully towards a more sustainable consumer economy
Italy comeback????? Ahahah we will have one of the lowest growth in Europe (0.7or 0.8) and Germany will grow 0.5 so basically the same.
Wait… Soldier from TF2? My man has culture 😏👌🏻
I don't think people really realize how high quality this sort of content is.
All the news in the world, summed up simply and precisely!
China's new stimulus is the biggest news in a while it seems. There's also a fair amount of coverage about China planning to use sovereign bonds and other large amounts of stimulus in the neer future.
!
the economist is just propagandist, independent my ass
Added drugs and prostitution to stats, gdp is up!
very good summary
Sure!! ITALY'S PMI CONTRACTION 18 MONTHS ON A ROW!!! LOL!!!
I can't believe that you cited this travesty of a "newspaper" The Economist.
Will you do a deep dive on Italy? I’m surprised you’re worried about Italy not investing in their population with a declining population. I want to know in what respects that would refer too? I thought I heard that Italy was experiencing a lot of brain drain – having a free and great education system accompanying it. Would make me think the investment has been sufficient. Eager to hear a deep dive into the problem.
italy economy is more stable as it has more base root, not gona shine not gona shunk either , germany economy is based on car, they dont have high margin industry ( car isnt), holland took that place from years ( and italy aswell for the note in chip, space, and other specific and complicated stuff german wont do but italy can but is niche margin industry with not high volume so dosent advocate for much of the gpd, (not as much as holland tough atm), italy also have a better chemical and bio medic industry and the de industrualization happened slower over time it allowed to reallocate ppl. It still shit but is a working shit because we have everything in italy not jsut some economy but pieces of all, idk how germany will keep going on if it loose it's primary industry, likely they gona war economy coversion car into tank industry thats what remain under nato umbrella prob.
IDK how/why you reason in that way but the "cut interest gona help economy" is a soo much american way to reasoning (dumb one)…..banks profited enormously from high rates and that cant go on anymore there is nothing more to milk …. this is way they need to lower the rates this will make possible again to start loan and the will re milk it in a few years, no one gona buy german car anyway since they are overpriced and lost quality, saved """maybe""" for opel but its a stellantis subfirm now.
Germany invested high in a low margin industry that now is a problem thats all there is to say to it. Appart shitty traitor in political establishment which are selling each eu country to USA finance speculation or china.
German companies (and others all over western europe )have been forced to move more and more production into eastern europe and china to keep business, that has been followed by moving basic R&D and development to those new production centres as well . The biggest example of this is the automotive industry , Germany's main export industry . It was inevitable this would sooner or later result in german production locations becoming completely uncompetitive hence the most recent fuss around VW discussing closing german production locations. Part of the problem is it's far too cheap to move parts and cars around the world .
Looking spiffy today, Joeri 😊
Italy's 25-49 demographic declined by 10% from 2007 – doesn't that mean that mean that achieving GDP parity with a smaller workforce equals a 10% increase in productivity? Metrics for countries with declining populations need relativistic adjustments when comparing to countries with growing populations.
Well, this is a good research! However, the title might be a bit misleading. Some may mistakenly think that Italy is catching up with the German economy. Even if the current trend persists, it could happen in 20 years, the reality is that the efficiency and potential of the German and Italian economies are still on vastly different levels.
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joeri in a suit is next level
Mentioning Germany, a very noticable local trend is a lack of state side investment in fear of growing debt.
There are an estimated 180 – 200 billion Euros of investment on the local level necessary for infrastructure like schools, roads and railway.
About 17.000km of rail are in need of maintenance alone.
Essentially, Austerity never really ended in terms of Government spending, netto investments for the past 20 years have sat around 0% as well, meaning the German infrastructure has mostly been riding on it's high after the economic post war miracle.
Negelct to spend to appeal to voters with frugal finanical policy similar to the UK has had quite a pronounced effect.
We need higher rates in the us