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hardnox604008
Advisor

EU gasoline hits $8+

http://www.zerohedge.com/article/european-gasoline-hits-all-time-record-8632-gallon

 

So just BTW, not unlike the US, does anyone think that gas prices at this level make anyone in the EU periphery more able to pay off debt, or the German voter any more willing to bail out his neighbors?

 

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3 Replies
Palouser
Senior Advisor

Re: EU gasoline hits $8+

The equation is, 'what is the least cost outcome".

 

Germany is a powerhouse exporter, beating the US I believe, and with high wages and good benefits. A highly trained workforce. Germany is in many ways, an example of what we maintain can't happen, but it does.

 

If the ripples from NOT bailing out member countries causes a decline in exports and jobs then bailing out member countries may be the outcome chosen  - IF it comes to that. The fuel coasts are high in Germany - and have always been high. It's likely that the rise is much less of a percentage than ours for that simple fact. THAT and they are not the commuter country that we are.

hardnox604008
Advisor

Re: EU gasoline hits $8+

Hi P,

 

The Germans do have a problem- if the euro fails and the DM returns (at a true value), their export miracle goes poof.

 

But the German taxpayer doesn't want to pay for what he thinks he worked hard for and justly deserves (sound familiar?).

 

So ve kick ze can down ze road a bit further.

 

Best, h

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Palouser
Senior Advisor

Re: EU gasoline hits $8+

'If' is the operative term. I don't expect the Euro to fail. And I think the Germans have built an economy based on cutting edge technology, not so much 'price' based. I believe the US has missed the boat in that respect on a large scale.

 

 

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