tag:blogger.com,1999:blog-6399730406480392183.post6727172000685602185..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: Where Did Europe Go Wrong?A Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-6399730406480392183.post-47994207653147174052013-03-07T13:57:38.793-04:002013-03-07T13:57:38.793-04:00You are completely delusional.You are completely delusional.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-51371253573708175202012-01-23T22:39:25.823-04:002012-01-23T22:39:25.823-04:00@ Barry Kelly:
Agree with your view..."When t...@ Barry Kelly:<br />Agree with your view..."When two people go into the bank to borrow for a mortgage, the fact that they are both using the same currency doesn't mean they can both borrow the same amount. The bank needs to test both borrowers on their ability to repay, and lend appropriately."<br />I would go further and say the bank would also check metrics on the person's intent to pay. This is a stumbling block. Most countries pay their taxes and their bills. Others have not. The good ones, understandably do not want to pick up the tab for the others...and why should they? To this extent, Germany is right to hold out for budgetary controls.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-79939413214204630862012-01-18T07:22:07.721-04:002012-01-18T07:22:07.721-04:00There's a labor oversupply in developed countr...There's a labor oversupply in developed countries, which is caused by a number of factors including automation and outsourcing. Because labor is cheap, wages will drop across the 99 percent (or inflation will decrease the real wage). This does not mean all services and goods will rise in the same linear fashion. Supply and demand still work, and that's why America is in the black over the shopping period. <br /><br />As an American, this is particularly troubling. The positive economic news we have been hearing is the culturally-driven retail effect, predicated by an oversupply of cheap technology/apparel/toys. Those super deals you got at Macy's was a trick.<br /><br />Rather than put money into savings accounts for retirement/education, or buy food/medicine, the American consumed, in all honesty, goods solely for their appearance, without any lasting benefit or value. Thereby, sending more money to East Asia. <br /><br />Now, if there was a free process to increase wages for the low-skilled worker so that they could buy extravagant sh*t and improve their economic situation, that would be ideal. Raise up the bottom rather than have the top crash down with inflation and cuts in public spending.<br /><br />What is needed is a new enlightenment period. But with the race to the bottom, it seems, and I really hate to say it, civilization will collapse into another dark age rife with all the nastiness that accompanies that period. <br />That's the choice.<br /><br />On what that first choice depends is a renewed cultural emphasis on education. In order to know what education the people require for advancement (@MP, you seem to be interested in economic interest, so I'll just stick to that), there needs to be a national conversation about what KINDS of jobs Americans want. <br /><br />That's a tough question and until the industries are narrowed down, i'll work in an example. There's been a recent debate about manufacturing jobs around the Santorum platform. He'd slash corporate taxes for the 1% who own factories, classic Reaganomics. <br />I'd put a stipulation in SS or pension to pass on your particular career set to another human being, and you'd receive a certain bonus for the students you teach. That would boost GDP like FDR's GI, while helping the up-comer and the recently retired. Obvious specific industries are newer or outdated, but some might be state specific. <br /><br />I have other ideas but its already a little late. It's kind of keynes-on-a-shoestring. <br /><br />If you have questions, just post after.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-44203989676859718832011-12-20T23:44:48.758-04:002011-12-20T23:44:48.758-04:00The particular details that led to this crisis, of...The particular details that led to this crisis, of which there are many contributing factors and most discussions centre around what those specific reasons are, is pointing to nothing less than the un-sustainability of the current economic system. <br /><br />Continually more power rests with banks, as the absurdity of governments borrowing money from what are essentially private banks at interest, creating fiat currency and deflating value of money. The system is not that different than a giant Ponzi scheme and I just hope that this house of cards doesn't come down all at once.<br /><br />What's most depressing, is that for certain if system has a serious collapse any reorganization will be set up again to profit those in power at the time.<br /><br />@ModeratePoli: indeed current system money IS debt, you can't get rid of the debt, because it will get rid of the money.<br /><br />the construct of money is getting close to no longer being benefit for most of mankind, it requires some bold steps to correct. I'm not holding my breath.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-4259854925439178582011-12-14T22:43:34.425-04:002011-12-14T22:43:34.425-04:00So, are there any surefire ways to grow your econo...So, are there any surefire ways to grow your economy without growing your debt? In other words, ideas, anyone?ModeratePolihttps://www.blogger.com/profile/01721945380057992971noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-42467892021483274672011-12-12T01:30:03.475-04:002011-12-12T01:30:03.475-04:00May be, just may be Europe doesn't need target...May be, just may be Europe doesn't need targeting world reserve currency today. <br /><br />The main source of wealth and confidence is competitive production capacity and related to it purchasing power. It can be reached just by avoiding over- undervaluation fluctuations. While the whole world struggles to make sense of long term investment and capital intensive business - a victim of fluctuations - Eurozone will remain the only place where long term and big investments pay out. Over time Eurozone will be the only place, where hi-tech companies can survive. <br /><br />Eurozone can become the investment heaven. It doesn't need to say it, what they do would be enough.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-78027525486835735682011-12-11T11:53:58.024-04:002011-12-11T11:53:58.024-04:00Merkel's insistence on a 50% Greek bond haircu...Merkel's insistence on a 50% Greek bond haircut was a key mistake. It permanently destroyed the myth of bonds denominated in Euro as an absolutely 100% safe investment. It also wiped out all hope that the Euro could one day become a world reserve currency.ergo sumnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-48611108873061858142011-12-09T17:14:11.098-04:002011-12-09T17:14:11.098-04:00Your post makes little sense to me.
"all Eur...Your post makes little sense to me.<br /><br />"all Eurozone government bonds are denominated in euros and, as such, should all be treated relatively equally" - this is a complete non sequitur. When two people go into the bank to borrow for a mortgage, the fact that they are both using the same currency doesn't mean they can both borrow the same amount. The bank needs to test both borrowers on their ability to repay, and lend appropriately. Lenders to countries should do exactly the same; the fact that they are using the same currency is irrelevant.<br /><br />To the degree that interest rates were unified, it reflected a market belief (thus far borne out) that no Eurozone state would be allowed to default, i.e. the risk profile was the same across all the countries. Plain and simple: this was a moral hazard play, banks betting that Eurozone governance wouldn't be brave enough to burn bondholders should a crunch come. And you know what? They were right.<br /><br />Your musing on debt to GDP ratios and budget deficits is all incidental to the core problem, though. The core problem is balance of payments imbalances. Ireland didn't have large budget deficits; it had a very low public debt ratio. But that didn't prevent problems, because it had large private capital inflow (low interest rates stoked demand) which created a property bubble.<br /><br />Increasing oversight over budgets, automatic penalties, etc. etc. that Merkel allegedly wants, all won't do much to prevent this all happening again, should the Eurozone survive this crisis. That whole facade is, as far as I can make out, simply designed to give the ECB political cover to debase the currency and do fiscal correction of the balance of payments problem through the back door of monetary policy. But it's looking increasingly like Mario isn't willing to play. If he keeps that up, he'll no longer have anything to play with though.Barry Kellyhttps://www.blogger.com/profile/10559947643606684495noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-58871568514700970982011-12-09T12:10:41.502-04:002011-12-09T12:10:41.502-04:00A simply great article which points to all the rel...A simply great article which points to all the relevant issues. Now the uk will be the scapegoat for the rest of the sycophantic euro-weenies to blame. What a pity!expat in Canadanoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-34030369369150890962011-12-09T09:49:30.477-04:002011-12-09T09:49:30.477-04:00Thanks for taking the time to read my musings!Thanks for taking the time to read my musings!A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-61089162975797213882011-12-09T07:11:46.856-04:002011-12-09T07:11:46.856-04:00yep. well said.yep. well said.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-72502596182457471052011-12-08T13:14:38.911-04:002011-12-08T13:14:38.911-04:00Excellent blog!Excellent blog!Anonymousnoreply@blogger.com