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Those Revolting Europeans
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Those Revolting Europeans |
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan 
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. http://www.nytimes.com/2012/05/07/opinion/krugman-those-revolting-europeans.h tml?_r=2&ref=opinion “One answer — an answer that makes more sense than almost anyone in Europe is willing to admit — would be to break up the euro, Europe’s common currency. Europe wouldn’t be in this fix if Greece still had its drachma, Spain its peseta, Ireland its punt, and so on, because Greece and Spain would have what they now lack: a quick way to restore cost-competitiveness and boost exports, namely devaluation.” Which allows you to pay off your debt if it’s in your country’s denomination with money not worth the paper it’s written on, (Kissinger alluded to this comfort regarding US debt). “As a counterpoint to Ireland’s sad story, consider the case of Iceland, which was ground zero for the financial crisis but was able to respond by devaluing its currency, the krona (and also had the courage to let its banks fail and default on their debts). Sure enough, Iceland is experiencing the recovery Ireland was supposed to have, but hasn’t.” The courage? “Talk to German opinion leaders about the euro crisis, and they like to point out that their own economy was in the doldrums in the early years of the last decade but managed to recover. What they don’t like to acknowledge is that this recovery was driven by the emergence of a huge German trade surplus vis-à-vis other European countries — in particular, vis-à-vis the nations now in crisis — which were booming, and experiencing above-normal inflation, thanks to low interest rates.” The implication being Germany owes the money back . . . “So Germany’s experience isn’t, as the Germans imagine, an argument for unilateral austerity in Southern Europe; it’s an argument for much more expansionary policies elsewhere, and in particular for the European Central Bank to drop its obsession with inflation and focus on growth.” “obsession with inflation” as in memory of the Weimar Republic. The solution to me seems eventually to revolve around guilting the Germans . . . I wonder how well that works in China. . |
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| © Copyright 2012 John Pawlik - All Rights Reserved | |||
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan |
. A month later it’s still about convincing cajoling or guilting Germany . . . . |
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan |
. http://www.nytimes.com/2012/06/13/opinion/germany-cant-fix-the-euro-crisis.html?_r=2&ref=opinion . |
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Balladeer
Administrator
Member Empyrean
since 1999-06-05
Posts 25505Ft. Lauderdale, Fl USA |
Just stopping by so you won't feel ignored, John  |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
Where is eveyone? . |
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan |
. I think the subject may be diffcult . . . . |
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan |
. I take heart in the thought that the EU is willing to cast off Greece and dwell their resources on the countries that matter . . . . |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
quote: Which subject Huan? So far all I see is a critique without evidence of an article by Krugman, a suggestion that Germany is being cajoled into doing some unspecified thing and a personal thought that the members of the Euro Zone ‘casting off’ Greece (whatever that means) is a good thing and gives you ‘heart’. What sort of response are you looking for – beyond ‘I agree\disagree’? BTW – I disagree.  |
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan |
. “Greeks are being told that they have no democratic right to go on spending borrowed money - other people's money - shoring up a large and expensive public sector-heavy economy, even if that is what they choose at the ballot box.” http://www.bbc.co.uk/news/world-europe-18268089 . |
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Denise
Moderator
Member Seraphic
since 1999-08-22
Posts 22648 |
No one has the right to spend other people's money. That is why socialism always fails....you run out of other people's money. We can't afford to keep subsidizing them. I'm not sure Legarde gets that...or maybe she does. Maybe the plan is to completely annihilate our economy. Afterall, why shouldn't the U.S. be a third world banana republic too. |
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