Author: desperado123

Paul Krugman: Europe’s Economic Suicide   [Copy link] 中文

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Post time 2012-4-24 22:50:00 |Display all floors
same here, almost the same.

One may wonder if there is any thought in the Kanzleramt about the success of Bruehnings iron austerity...
in bringing on and worsening the ruinous depression.

On the other hand, the presses don't raise production of anything but pieces of papers with numbers on them,
that are meaningless in their Increased Numbers if their increased supply does not go in line with additional production of products they can be bartered into, or worse yet, are not even going to be accepted in return for products.
And the past mismanagement of the PIIGS is not gonna be fixed by that.
Sadly though, he has a point.

Well presses can increase production it depends.....2 theory,1. printing press do not cause inflation until full employment is achieved, 2. presses do not reduce unemployment but instantly causes inflation. The truth is somewhere in between closer to the 2. option but not entirely .

Of course the PIIGS run an unsustainable account balance deficit, remember before the crisis Spain had 25-27% government debt, and budget surplus, but high account balance deficit, now that is the problem and that is connected the free flow capital treaty of the EU, so for Spain back than that would have had a tricky  to do something about the problem without raising anger from the EU comission, but anyway banks practically destroyed part of  the money supply, and there is no new loans, so banks do not finance the industry these days, and
whilst a lot of young people do not have work  and income to buy a home, at the same time tone of  construction workers are unemployed.The Eurozone Manufacturing Purchasing Managers’ Index for March fell to 47.7, indicating contraction.
This is when the CB have to do something, I agree however that the ECB should keep the inflation below something I think about 3-4% .

In the long term however I agree with the fiscal treaty and far more stricter bank rules(what about 25% forced state control on banks and more It seems that private banking is the same bull---- like the state owned banks just the problems are different, but I doubt the banking sector will be perfect in 1000 year time) oh and less banks, but we are in the situation that before the crisis banks lent recklessly, and nowadays they do not lend a single coin, the construction sector is collapsing...there is clearly no financing, so the ECB should start expansionist policies.

Of course the inefficient measures of the PIIGS well , they have to change that immediatelly, but there are some problems in whole Europe, for example education, too many artists etc to few engineers, Europe is too liberal now, and it seems every politicians still believe that the invisible hand of the market will solve all problems{:soso_e111:}  



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Post time 2012-4-24 22:58:26 |Display all floors
The sad fact is that an exit from the Euro is all that can save some countries.
Nothing else is going to fix the problem.

Exit the Euro
Print money
Inflation goes crazy
The peoples standard of living drops back to realistic levels.
Start building again, this time with reality.

Nope the EZ could work, (but not worth the whole bunch of problems it causes) , just the role and the law about the ECB should change in that way like the Austral central bank law I particularly like that.

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Post time 2012-4-24 23:12:13 |Display all floors
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Roach Exterminator

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Post time 2012-4-25 01:09:09 |Display all floors
The 'Great Depression' in America was the conflict between the Bank of England and America and Gold and Silver standards. America eventually came out top. I wonder if the American led new depression is a way to kill the Euro and set the Dollar back into ascendency.  Even though the dollar is a monopoly 'fiat' money now it still has solid investment and I think a game is afoot like no other to trash the Euro.

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Post time 2012-4-25 02:49:03 |Display all floors
I wonder if the American led new depression is a way to kill the Euro and set the Dollar back into ascendency.


I don't think so. The USA were certainly worried about the Dollar losing its status as number 1 currency - which was one of the reasons for the war in Iraq, too.
But the current crisis is mainly Europe's very own fault. European politicians secured reelction by overspending whilst the European Union watched and frowned, but didn't take any serious measures against the southern state's spending frenzy. Even now, the indecesiveness of our politicians prevents the crisis from being solved - despite of the fact that a solution would be very easy to come up with if they'd agree to estabilish a European Treasury.

But here, the politicians again see that European people don't trust the central government in Bruxelles as the people don't have much to say in European politics (and many leaders aren't even elected directly). Thus, if they would like to implement such a Treasury, they'd have to come up with a political reform first - which would cut the power of many politicians and give more power to the people. But politicians don't like to lose power anywhere in the world... so I guess the crisis will be solved by printing money and pumping it to southern Europe.

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Post time 2012-4-25 05:59:03 |Display all floors
Everynowhere Post time: 2012-4-25 02:49
I don't think so. The USA were certainly worried about the Dollar losing its status as number 1 cu ...

ok,
so much so far, too tired now to go into it.
Just an example to illustrate your point.
For the New elections, Greek Gouvernment parties passed a new bill entitling them now to more than 11 or 12 or so euros per voter in the last elections to be paid to them for election campaigns on gouvernment (socialised) costs.
the equivalent election support money in Germany:
like 20 to 40 cent per voter, or so.
您买象牙 - 您杀了大象!
http://v.youku.com/v_show/id_XNjU1Nzg0NDky.html - “用现代文明标准比划中国人,是严重的种族歧视行为。”
„Ich ficke wo, wen, und wann ich will, hast du mich verstanden. Auch du könntest ficken, aber du kannst es ja gar nicht, deine deutsche Genauigkeit... verbietet es dir“. Jean-Claude Juncker

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Post time 2012-4-25 06:58:47 |Display all floors
For the New elections, Greek Gouvernment parties passed a new bill entitling them now to more than 11 or 12 or so euros per voter

You mean nearly 100 million euros?

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