Hold the Presses, or Rather Don’t!

Hold the Presses, or Rather Don’t!
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The Eurozone is printing money and is not expecting to stop any time soon. Voices of concern echoed in EU warningly, expressing moot prospects regarding the economic growth in general and improvement of the EU GDP in particular. While the demand is here, most of the money is going to the consumers and not to the companies, which means that economic growth is rather stagnating and there will be apparently no serious improvement in terms of investment and employment.

Despite the money printing, the prospective inflation rate is expected to be rather modest in 2015, estimated to finally ebb out at around 1.1 percent from zero. Financially more savvy people should right now raise at least one brow. Printing money and having no inflated inflation means something entirely else altogether. Putting it into perspective for the less devious financial guru, this is apparently some sort of vehicle to level out the GDP and lower the value of the Euro, in comparison to the US Dollar, for instance. Now why would the EU want the Euro to be less valuable in comparison to the Dollar?

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Such a scheme provides for a cheaper Euro, which means cheaper exports into countries outside of the EU, which means increasing exports. Additionally, the labour in comparison to the US or other non-EU countries, but also in comparison to the UK, just got cheaper. Being that newly integrated countries like Croatia, Romania and the likes are still having workers of the highest standards, but a much less powerful economy, these places within the EU are just like gold mines for EU countries, such as UK, in terms of manufacturing, outsourcing and labour.

While the Euro is now valued less, it has become more competitive in the international markets, hence the increased labour demand, mainly outside of the highly developed countries. This will further increase the economic growth there, but also provide much better and less expensive product for export. Such an EU wide scheme would also bring additional benefits to all countries, including cheaper oil, which soon will not be traded in US Dollars. Furthermore, the latest predictions have estimated a 1.7 percent growth of the GDP EU wide for 2015, a rise of 0.2 percent in comparison with the 2014.

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