The loss of confidence in the euro suits the United States

Since the start of 2018, the significant loss of confidence in the euro and in the outlook for the euro zone has led to capital outflows from the euro zone for all types of financial assets: equities, bonds, short-term capital flows, corporate capital. These capital outflows from the euro zone are very positive for the United States at present; the Trump administration is implementing a fiscal expansionary policy in a situation of full employment, leading to renewed twin (fiscal and external) deficits in the United States. These deficits will be all the easier to finance, without a sharp rise in dollar interest rates, as capital flows out of the euro zone and is therefore available to finance the US deficits.