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The Europe Rug Pull.
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<blockquote data-quote="Mad as Fish" data-source="post: 127767" data-attributes="member: 396"><p>I feel that one of the unspoken drivers of inflation is that goods are getting more sophisticated and therefore more expensive, chips with everything has pushed prices up, just look at cars. </p><p></p><p>Of course this is quite deliberate as it inflates the manufacturers margins but when they get too expensive and stop selling manufacturers will tend to make cheaper versions of the same models, or new models that are budget friendly from the start. Market conditions are managed rather than allowed to dictate.</p><p></p><p>I see it happening in my sector, the lower cost Dacias are an example from the automotive industry. Ford lost 5 billion on EVs last year, they must be making huge margins on ICE vehicles to support that. It may dump EVs and use the money to cut margins and preserve market share on ICE cars - bringing prices down overall, who knows what they will do next.</p><p></p><p>I am saying this to underline my belief that the European economy is not going to collapse overnight, it will most probably take a hit,but again it will be managed rather than allowed to wither totally on the vine. All those tax receipts are needed to keep the bureaucracies ticking over and that is where the present crop of lefty governments enjoy the greatest support.</p></blockquote><p></p>
[QUOTE="Mad as Fish, post: 127767, member: 396"] I feel that one of the unspoken drivers of inflation is that goods are getting more sophisticated and therefore more expensive, chips with everything has pushed prices up, just look at cars. Of course this is quite deliberate as it inflates the manufacturers margins but when they get too expensive and stop selling manufacturers will tend to make cheaper versions of the same models, or new models that are budget friendly from the start. Market conditions are managed rather than allowed to dictate. I see it happening in my sector, the lower cost Dacias are an example from the automotive industry. Ford lost 5 billion on EVs last year, they must be making huge margins on ICE vehicles to support that. It may dump EVs and use the money to cut margins and preserve market share on ICE cars - bringing prices down overall, who knows what they will do next. I am saying this to underline my belief that the European economy is not going to collapse overnight, it will most probably take a hit,but again it will be managed rather than allowed to wither totally on the vine. All those tax receipts are needed to keep the bureaucracies ticking over and that is where the present crop of lefty governments enjoy the greatest support. [/QUOTE]
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