amideislas

Due to the massively over-valued Euro, US goods are almost always much less expensive than European goods, which helps to explain why Europe continues to have so much difficulty competing in the world.

And as someone else pointed out, no taxes to be paid - especially European taxes (up to 3 times that of the US).

Because as Europe continues in a free-fall and the European politicans taking their usual "point fingers at everyone else" strategy (rather than solving the problem), it has become fashionable and expected to blame the Americans for everything wrong in this world, and spin everything American as "greedy" and "less desirable" than anything European., so we don't have to shoulder any blame.

Yet ironically, because Europe has for decades irresponsibly spent itself into oblivion (yet will be the last to admit it), today few other economic entities in this world exhibit more absolute need to be "greedy" than Europe, and current events are a testament to that.

jurdyr

Spanair had lost of there traveler as money was tight , people where not traveling as much as we did back 4 - 5 years ago . with open open skies agreement europe this had made thinks more hard to run the airline , Aviation fuel has also jump in prices aswell (representing up to 40% of airline costs ) fuel price average for 2012 $129.50 , most likly you see more airline hit the wall
the bad press from crash did not help aswell .

cricketman

Think you'll find that the Hispanics in the US are mainly Mexicans and Central Americans. They couldnt give a damn about Spain

"Hispanic" in the US just means that the people speak Spanish, not that they are Spanish

Domino

so why did California go bust ??
thriving economy, $billions in exports of crap wine and orange juice, but still overspent.
you will find the GDY's have a built in desire to have everything from their butts to their aircraft carriers and everything in between to be the biggest in the world. How to pay for it doesnt come into it......until later.

Quiz Time
Which country was responsible for the 1929 Crash and the 2008 Crash ??
.

amideislas

Well since you have no idea what you're talking about, let me update you:

California did overspend on social programs (much like Europe has), but never did go bankrupt. In 2008, there was a lot of speculation about it, but it never happened.

You are aparently are unaware that California produces some of the world's finest wines (often rated far higher than European wines), and is the world's fourth largest wine producer:
http://en.wikipedia.org/wiki/California_wine
But... to subsidise the EU (primarily French) wine growers, the EU imposes heavy import tarifs on US wines, which may explain why even the crappiest of California wines are far more expensive than European wines (and therefore, explains why you have likely never had a decent California wine).

Conversely, most any European wines are readily available on US supermarket shelves. It is, after all, a free market over there.

And that Florida produces the vast majority of the orange juice in north america:
http://www.orangejuicefacts.com/faq.html


In both cases, the causes were due to extremely speculative market trading, not any government, but since the US operates the world's largest free market economy, naturally, a large percentage of the world's investment trading is conducted in US markets, so the impact in both cases is worldwide.

The US form of governance traditionally subscribes to a philosophy of economic growth, adopting policies which are favourable for businesses to grow and thrive (and employ people), which make them net contributors to their system.

In contrast, the conventional European wisdom relies on a "tax and spend" method of governance, as opposed to "growth". Those who contribute are generally economically penalised in favour of those who do not or cannot contribute, and are rewarded by being encouraged to consume the benefits they are entitled to under the system. In some cases, once people join the welfare system, it's difficult to get out. Many simply live off the state forever.

As a result, over decades, the European society has naturally become less of a contributor, and more of a net consumer of the entitlements provided by the welfare state. Why not? I'm entitled. Right?

And in Europe, only large powerful businesses which employ thousands of taxpayers receive any breaks. Do you think Volkswagen pays much tax? No their employees do. Otherwise they'd move whole kit to South Africa or elsewhere.

When was the last time a European garage business was allowed to become one of the world's largest and most revered companies? Not in Europe, my friend. Allowing some stinking little garage outfit to innovate their way into success would be firstly at the sole discretion of Philips or Siemens, or any of the other European "innovators" who employ 1000's of taxpayers.

The current economic crisis in Europe was caused by decades excessive and irresponsible spending and granting political "favours" to the largest industries who employ the taxpayers - by Governments, not the markets. It's called "sovereign debt". It would be politically easier to fix if it were a market problem, but the welfare state is now so deeply entrenched in society that it makes it politically very complicated.

Example recent news from the UK: Cameron proposes a 26K cap on benefits (35K before tax). My first reaction? Damned generous, if you ask me. Yet, there may be riots over this, because people now believe they are entitled to a house, food, heat, water, transport... ...in central London if they wish. Welcome to the welfare state. I'm entitled.

Yesterday, Sarkozy announced a 1.6% increase in VAT, and a "financial transaction tax" which will simply encourage the french finance industry to move to the UK or US, and the VAT increase will only further burden an already burdened consumer. Brilliant.

As you can see simply by picking up any newspaper or turning on the TV, the result is that taxes are going up, while entitlements are systematically being minimised or eliminated. Not exactly a "growth" strategy is it? But presumably will put a few more quid in the government coffers, so they can pay for their decades of past overspending, and the next decade of useless spending on "regulation" of virtually everything in
life. Do you think it will work?

Well, it doesn't take an experienced economist to tell you that adding burden to an already burdened economy is simply a recipe for continued stagnation or further economic decline. Businesses will be unwilling to hire, therefore more people "consuming" what's left of their entitlements, rather than contributing, and will be unable to spend for lack of income, which means businesses will have even more difficulty keeping the doors open, which means... fulll circle. Just walk around your town and tell me how many business are closing up. If you say "none" then I simply don't believe you, because it's hard to miss virtually anywhere in the Eurozone.

The current Eurozone crisis is a testament to a system which penalises those who contribute most, while rewarding those who contribute the least, is unsustainable in the long term. That's why the US will continue to outperform Europe for the foreseeable future.

cricketman

It's a shame that the US wont let you in, otherwise you could go and live there and leave Europe to those who love living here and the values in stands for - like myself

amideislas

Well, let's have a look at those "European values" you (naively) subscribe to:

• Higher corruption
• Higher bureacracy
• Higher taxes (and going up and up and up)
• Higher cost of living (and going up and up and up)
• Lower standard of living
• Benefits systematically being minimised or eliminated
• Rule of law which favours power and influence
• More government regulation and interference in daily life
• No sign of this changing in the foreseeable future, likely getting much worse

Anyway, thanks for pointing that out. I'll take it under advisement.

Edit: Forgot to list unemployment, but I'd speculate that wouldn't concern you, since statistically, the benefits I paid for may very well be among those which sustain your continued enjoyment of these "values".

jackytoo

good post amideislas

Going back to the malaga cruises. I still think that the ships will use local suppliers for most things. Would be a huge operation to bring in the amount of food that 3000+pax plus crew would need weekly. I am sure they would take on fresh fruit and eggs, milk etc. locally.

jackytoo

Not as simple as that. Spanish banks need re-financing, huge regional debts, high unemployment rate etc. Although I would not rule out the UK being downgraded later this year!

Domino

don't tell Amidie wotsit that could lead to another diatribe about corruption and how good the US is - funny that the organisations doing the downgrading are all US based.

amideislas

I was thinking you were just misinformed, but I was wrong. Apparently you're just another of the many in search of a rationalisation for your continued denial, such as "it's all just a plot by the Americans to destroy our economy (and oddly, theirs too as a result, which doesn't make much sense, but what the hell, it sounds good)". Hmm.. where have I heard that before?

Having said that, this should definitely interest you:

http://blogs.telegraph.co.uk/news/da...rating-agency/

and this:

http://blogs.telegraph.co.uk/news/da...ica-obviously/

jdr

And the UK and the Yanks are not in the same position then.
So you reckon wham bam and the dynamic duo will split by then, it could upset his mighty dollar.

jackytoo

Well the financial pages say they are not. USA is in growth now albiet slowly, I can only go on what I read and everyone seems to agree that Spain and Italy is deep in the shit, surely there is not an international conspiracy against them

jdr

Financial pages will steer you the way they want you to think.

No just a conspiracy against the €.

jackytoo

But the deeper in the shit Italy and Spain gets leads to a fall in world markets so no-one wins

From the Telegraph

Spain: The problem for Rajoy is that he has been left an almost impossible task in Spain - he has to cut the fiscal deficit from 8pc to 4pc which would be "suicide for Spain" if they tried to achieve that. They need to take off that hook.