| > European money is vacuumed out of the private sector into state pension funds and dumped into low yielding government bonds. Which countries do that? The ones in NL actually invest in US big tech. Once Europe stops investing in USA, Europe will be better able to compete. > Talent & compute: due to #1, Silicon Valley can outbid Europe for the best talent and hardware. Watch an OpenAI launch video and listen to all the European accents. That just denotes European students are high quality. Brain drain is happening due to bullying and fascism. The extend of longterm danage of current administration is unclear. > Local market fragmentation: Europe is a collection of countries that pretend to work together while not even having a unified capital market. The average EU citizen can barely communicate with their neighbor in a common language beyond the level of a toddler (english fluency is massively overstated by Americans who only experience tourist capitals). Bollocks. I have been in Berlin and Munich various times past decades, and people there speak English very well. Nowadays, translation is a profession which got hit by the AI club. The people in the rural areas don't have to work together with other people from rural areas. They just need websites and tooling in their native language, or a major language. Case in point: the French company Mistral has Dutch company ASML has one of their major investors. If you go to Eindhoven area (Netherlands mini SV called Brainport Eindhoven), you get away with English perfectly fine, and there too you will hear all kind if accents. |
Every single one invests in government bonds with a large allocation. Aside from the pure ponzi scheme ones with no actual fund where its money in -> money out.
Also, if Europe stopped investing in US equities their pension insolvency problem would get about 2-3X worse given US equities have far exceeded EU equity returns over the past 20 years.
> Brain drain is happening due to bullying and fascism. The extend of longterm danage of current administration is unclear.
Huh? Did you even see the headline of the 1991 article I linked? Brain drain has been happening because of everything I listed which has been true for decades. Europe couldn't come up with a relevant company in PCs, Operating Systems, Internet 1.0, Social media, Mobile, AI, etc. None of it is due to the current administration.
> Bollocks. I have been in Berlin and Munich various times past decades, and people there speak English very well.
Yes, and while you were traveling to tourist capitals occasionally I've been actually living in Europe. Your perception is not the reality the average German person lives.
The problem isn't that the smartest Engineers in Europe don't speak english. The problem is that the average person in the markets they would sell into don't speak a common language.
Kind of hard to cut deals and build a brand among 27 different insular, hyper nationalist markets in a bunch of languages you don't speak with completely different regulations.