Quote:
Originally Posted by ADL Colin
So if European GDP grows at 2% per year for 50 years its GDP will increase 2.7 times. If US GDP grows at 5% per year for 50 years its GDP will increase 11.5 times. Assuming the EU and US to start at the same GDP (for ease of calculation) after 50 years US GDP will be 4.2 times higher than the EUs and growing. That would be absolute economic dominance by the US. Difficult to see your point or which institutions could possibly be worth falling so far behind.
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which the US had up till now, problem is that much of that growth was financed on lending, while Europe saved, America spent and the payments on those loans are causing a lot of problems
if Europeans aren't careful however, they will also fall in this trap, easier and smaller loans and credits are popping up left and right, while in the past you would only get a loan for a house and a car, now you have idiots buying vacations and appliances with those small loans
in Belgium, savings have declined 30% in the last 10 years, let's hope people will know when to stop or we are headed for the same types of problem