Why can't Europe follow the lead of the US, Japan, and China

Jay Soloff

Argonath Financial

Why can't Europe follow the lead of the US, Japan, and China? Reports this week are likely to show inflation in the Eurozone falling dangerously low, yet European leaders can't seem to get the hint. Draghi understands what must be done, but the ECB doesn't have the kind of authority the Fed and other central banks have. The Fed was able to inject money into the economy despite political opposition. The Bank of Japan has done the same thing, but was undermined by the new and unnecessary sales tax. Even China has been quick to cut rates as its economy slows. Unfortunately for Europe, Germany is its largest and most powerful economy. The German government is too busy focusing on balancing its books at a time when it should be investing in infrastructure. It's surprising that Germany and other European leaders can't see the clear advantage the US economy has through its more aggressive approach at improving economic conditions. Eurozone leaders (besides Draghi) need to rethink their policies in a hurry.

Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...


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