The core of Mr Schäuble’s argument was not about the mooted European Monetary Fund, which could not, even if agreed and implemented, alter the pressures created by the huge macroeconomic imbalances within the eurozone. His central ideas are: combining emergency aid for countries running excessive fiscal deficits with fierce penalties; suspending voting rights of badly behaving members within the eurogroup; and allowing a member to exit the monetary union, while remaining inside the European Union. Suddenly, the eurozone is not so irrevocable: Germany has said so.
Three points can be drawn from this démarche from Europe’s most powerful country: first, it will have an overwhelmingly deflationary impact; second, it is unworkable; and, third, it might pave the way for Germany’s exit from the eurozone.
I think Germany doing that isn't very likely. I know they're dealing with some populist wharglgarbl but there has to be at least a measure of sanity amongst their leaders for them to be in the position they're in.
Funny story, coffee took Germany and Europe by storm, threatening to destroy the German economy, which was heavily focused around beer production and consumption. The King of Germany actually started a PR campaign slamming coffee and promoting the health benefits of beer consumption.
With the sort of crap they are going to buy up, starting with Greek bonds, it really seems like they are going to be monetizing debt. It seems like some of the prime beneficiaries of this will be the current holders of Greek bonds, which in a large part are various European banks, who otherwise would be screwed in the highly likely event of Greece defaulting on their bonds.
The core of Mr Schäuble’s argument was not about the mooted European Monetary Fund, which could not, even if agreed and implemented, alter the pressures created by the huge macroeconomic imbalances within the eurozone. His central ideas are: combining emergency aid for countries running excessive fiscal deficits with fierce penalties; suspending voting rights of badly behaving members within the eurogroup; and allowing a member to exit the monetary union, while remaining inside the European Union. Suddenly, the eurozone is not so irrevocable: Germany has said so.
Three points can be drawn from this démarche from Europe’s most powerful country: first, it will have an overwhelmingly deflationary impact; second, it is unworkable; and, third, it might pave the way for Germany’s exit from the eurozone.
I think Germany doing that isn't very likely. I know they're dealing with some populist wharglgarbl but there has to be at least a measure of sanity amongst their leaders for them to be in the position they're in.
It's bad analysis. The idea behind a procedure allowing an exit from the Eurozone is to have a safety guard against countries that are harming it, not for Germany itself.
With the sort of crap they are going to buy up, starting with Greek bonds, it really seems like they are going to be monetizing debt. It seems like some of the prime beneficiaries of this will be the current holders of Greek bonds, which in a large part are various European banks, who otherwise would be screwed in the highly likely event of Greece defaulting on their bonds.
Does this mean that we push the crisis back a few years, but it's going to be bigger? Because that's the way I interpret it.
Unless it's possible to grow the economy enough to make these huge debts seem comparatively small. But I don't know if that's possible. It happened in WW2, but that's because the world was blown up and we needed tonnes of manufacturing (and had millions of soldiers who needed jobs right away). And it happened during the industrial revolution because we multiplied the productive labour of the workforce through machinery and the assembly line.
I'm not so sure something like that can happen again. Unless we expand into space and start deploying solar-collectors and mining asteroids for minerals... I don't really think that we're ready for another revolution on the scale of industrial.
I don't think the western world is going to be able to afford all this debt. And I kinda think there's going to be an inflationary crisis.
The core of Mr Schäuble’s argument was not about the mooted European Monetary Fund, which could not, even if agreed and implemented, alter the pressures created by the huge macroeconomic imbalances within the eurozone. His central ideas are: combining emergency aid for countries running excessive fiscal deficits with fierce penalties; suspending voting rights of badly behaving members within the eurogroup; and allowing a member to exit the monetary union, while remaining inside the European Union. Suddenly, the eurozone is not so irrevocable: Germany has said so.
Three points can be drawn from this démarche from Europe’s most powerful country: first, it will have an overwhelmingly deflationary impact; second, it is unworkable; and, third, it might pave the way for Germany’s exit from the eurozone.
I think Germany doing that isn't very likely. I know they're dealing with some populist wharglgarbl but there has to be at least a measure of sanity amongst their leaders for them to be in the position they're in.
The trouble, of course, is that none of these alternatives seem politically plausible.
What remains seems unthinkable: Greece leaving the euro. But when you’ve ruled out everything else, that’s what’s left.
He's forgetting the other unthinkable: Germany leaving the Euro.
that's about unthinkable as it gets, really
germany and france working together in this capacity is what made europe peaceful after two world wars, and I think many german politicians and german citizens would agree on that.
europe might be shaky, but it's still hell of a lot better than dozen competing nation states just waiting to wage war
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Seems odd that a 'stray' dog is wearing a collar, that clearly has tags on it
An owned dog can stray.
I think Germany doing that isn't very likely. I know they're dealing with some populist wharglgarbl but there has to be at least a measure of sanity amongst their leaders for them to be in the position they're in.
The German equivalent of tea partiers. Now there's a frightening group of words.
das Tee-Partygänger?
Probably more of a beer hall for them I would think since they don't really have a history of tea.
The ECB has gone with the mega-bailout option to respond to the crisis, for up to 750 billion Euros. They'll use this money to buy up government and private bonds.
With the sort of crap they are going to buy up, starting with Greek bonds, it really seems like they are going to be monetizing debt. It seems like some of the prime beneficiaries of this will be the current holders of Greek bonds, which in a large part are various European banks, who otherwise would be screwed in the highly likely event of Greece defaulting on their bonds.
It's bad analysis. The idea behind a procedure allowing an exit from the Eurozone is to have a safety guard against countries that are harming it, not for Germany itself.
Does this mean that we push the crisis back a few years, but it's going to be bigger? Because that's the way I interpret it.
Unless it's possible to grow the economy enough to make these huge debts seem comparatively small. But I don't know if that's possible. It happened in WW2, but that's because the world was blown up and we needed tonnes of manufacturing (and had millions of soldiers who needed jobs right away). And it happened during the industrial revolution because we multiplied the productive labour of the workforce through machinery and the assembly line.
I'm not so sure something like that can happen again. Unless we expand into space and start deploying solar-collectors and mining asteroids for minerals... I don't really think that we're ready for another revolution on the scale of industrial.
I don't think the western world is going to be able to afford all this debt. And I kinda think there's going to be an inflationary crisis.
/cries somebody tell me that I'm wrong!
that's about unthinkable as it gets, really
germany and france working together in this capacity is what made europe peaceful after two world wars, and I think many german politicians and german citizens would agree on that.
europe might be shaky, but it's still hell of a lot better than dozen competing nation states just waiting to wage war