Tuesday , 21 May 2024

Divergence of U.S. & Euro Area Economies Is Dramatic – and Tragic! Take a Look (+2K Views)

[Charts have the ability to clearly illustrate various situations and no 2 could beBurning-Euro-130x90 more so than the following charts] on the incredible divergence in the U.S. economy and the European economy as it related to the extent of unemployment and industrial production in each region. Take a look. It’s truly amazing – truly tragic.

The above introductory comments are paraphrased excerpts from a post* by Cullen Roche (pragcap.com) entitled Europe vs USA: the Unemployment Divergence.

The post is as follows:

Unemployment Comparison


via Calculated Risk

Industrial Production Comparison



[In addition, as conveyed in an article** from e.businessinsider.com entitled This Is The Chart That’s Been Keeping Mario Draghi Up At Night]  inflation expectations in Europe have fallen off a cliff…

  • In July, prices in the Eurozone climbed just 0.4% year-over-year, the slimmest increase since October 2009…[and] this has European Central Bank President Mario Draghi facing the one thing that keeps all central bankers up at night – deflation.
  • Currently, expectations of Eurozone inflation are at their lowest levels since the depths of the financial crisis in 2009.

This chart, which comes to us from Frederik Ducrozet at Credit Agricole, is Draghi’s nightmare.

Aug 24 COTD

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

*http://pragcap.com/europe-vs-usa-the-unemployment-divergence (Copyright © 2014 All Rights Reserved ) **http://e.businessinsider.com/public/2984967

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One comment

  1. These two charts seem to explain why there is more frustration in Europe than their is in the USA.

    When workers cannot find work they understandably become frustrated with not only their Leaders but those that control the majority of the Wealth in their countries, which makes them favorite targets for radical groups that promise a better life, once they take charge.

    If Leaders in Both the USA and Europe were smart they would immediately begin major public works projects to upgrade their infrastructure and make their countries less dependent upon foreign Energy. This would both put many back to work and also make these countries more competitive in the future.