99 points

So we need the ECB to start QE in a big way to buy back government bonds. However the Saudis do not own too many.

We also have to go electric on transportation and that much much faster. Only a third of the EUs oil comes from the US and Norway. The rest comes from mainly dictatorships. Going green means supporting democracy. Staying on fossil fuels means supporting dictatorships.

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53 points
*

Yep, even if you didn’t care about the environmental aspect (which you should), not having to rely on dictatorships all over the place for your energy needs should be enough reason to transition away from fossil fuels.

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6 points

I’m in agreement, but who produces the batteries? China…

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11 points

There are a lot of battery factories being built in the EU right now. Even if they come from China, it is a one time purchase and not a total dependence.

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6 points

True, but right now, a lot of the resources come from China. Solar is also something that is mainly from China. EU dropped that ball pretty fast.

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0 points

Glad my money isn’t wrapped up in EUR. QE = inflation.

I’m all for going green, it’s worth mentioning that having trade with dictatorships is a two-way street, we can also use that trade as leverage to hold them slightly accountable.

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6 points

In this case it gives the Saudis central bank money, which then leads to more money being removed over the coming years. Since the Saudis want to dump it, they have to sell it below market value. Due to that at intresst this means the ECB is moving money out of the monetary system. Hence this is deflationary. We actually saw that in the real world as well. QE meant low intresst rates. The intresst rates shot up as soon as QE was stopped.

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42 points

Dictators all stroking eachother off

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5 points

Desperate. They’re licking each other’s boots because the resource wars are beginning and they’re not in the greatest standing

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22 points

Hey two of trump’s bestest buddies!

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15 points

What does this even mean? I’d like to be able to make a huge debt and then sell it for a profit too. Teach me how 🥺

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12 points

Well first this doesn’t really have anything to do with the article.

But to answer your question:

Be in a situation where your central bank (they can’t get bankrupt as they literally print money) doesn’t give interest (negative interest even better)

Be big, financially competent and trustworthy enough that no one doubts that you can pay back any loan.

Now people that have too much money and need a convenient place to store that money without too much costs buy your debt for more than what it’s worth.

Profit.

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5 points

Sorry I somehow forgot the first part of your question. If I understand correctly they threaten to sell off the debt they hold which will increase the supply of that debt, while at the same time decrease the amount of potential buyers.

To still be able to sell their debt the EU countries now have to (as any country needs a constant influx of money) make the new debt more attractive by offering better interest etc

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14 points

Do it.

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