Think of the difference of real interest rates between economies as of a resilience test of their economies. The Fed is in a competition especially with the PBoC and the european banking system. The ECB is under immense pressure to lower their credit costs (yields) to keep their growing zombie economy afloat (result of ZIRP and their interventionism). Now the US can attrackt european capital easil by by lowering taxes and deregulating their economy. The interest delta is the accelerator that will nove financial capital out of Europe to the US. That's a short view on the econ war. Would love to debate this more here on nostr because this will shape our world for the future
Thank you for the explanation!!
Hope I can explain it properly
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