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December 9, 2011 at 3:55 pm #601511
JoBParticipantI am posting this because the euro-mess is being used as a rationalization for gutting our own social services… the implication being that social services are taking the European economy down.
this article offers an alternative theory…
in effect that out of control profiteering.. like that in our own bank mess… precipitated the euro-mess…
any article that starts out saying that this is just one way to look at the eruomess gets points from me…
so… another view from the peanut gallery..
that i think makes a great deal of sense
http://motherjones.com/kevin-drum/2011/12/whos-responsible-euromess
December 10, 2011 at 10:09 am #742493
kootchmanMemberI would read it as a supplemental hypothesis. As the author clearly stated. The article did not refute overspending and a lack of both civil and private employee productivity. There is little relationship to “our” banking crisis.
” Greece lied about its finances, and throughout southern Europe there was a persistent refusal to reform their labor practices, improve productivity, and live within their means.”
I do not see the parallels with the US economy. What I do see though in common is social services are going to be thrown on the alter by necessity, not preference.
December 10, 2011 at 3:44 pm #742494
JoBParticipantkootch…
did you read the same article i did?
because it clearly stated that austerity was not the answer… in fact.. that austerity would have a domino effect that would end up crippling the economies of stronger countries.
December 11, 2011 at 5:58 am #742495
kootchmanMemberI quoted the article. I read it. It did not say austerity was bad… it said… quote again
“At the same time, forced austerity for its own sake is foolish. Demanding reforms that promote long-term growth is fine. Demanding austerity that will make periphery economies even worse off in the short term is counterproductive for everyone,
including Germany.”
That is not a ringing endorsement of no austerity. But do heed the tale… throwing money at structural problems is questionable. And… will they be cutting social programs? Indeed they will.
One could make the case as the article points out, that the debt could have been restructured. But like our giveaway to the banks with no write downs of debt… they will muddle through with a long protracted period of slow growth. Just like we will. Japan did the same thing. Bad loans, bad capital outflows, low reserves, diminishing valued real estate portfolios.. and the write downs never happened… so Japan spent 25 plus years trying to recover..and still hasn’t.
Reform. While it may be SHORT TERM uncomfortable, the German economy will not prop up failed socialist states in perpetuity and Great Britain isn;t playing at all. Sans the reform it gets worse.
December 11, 2011 at 4:02 pm #742496
JoBParticipantGermany is pushing reform that ultimately will gut it’s own exports…
not so very smart in the long run…
but oh so very german
December 11, 2011 at 4:43 pm #742497
kootchmanMemberCarsten Brzeski, at ING Bank, hailed Germany’s ‘smashing growth performance’ and said: ‘Exports have been a constant of the German recovery. Since the trough of the recession, exports have increased by more than 30 per cent, returning to their pre-crisis level.
The worlds second largest exporter after China? Gut it’s exports? I doubt it. German brands and engineering are the worlds best. They don’t need bank capital. German industry is cash flush. German banks… different story.
December 11, 2011 at 10:30 pm #742498
JoBParticipantkootch…
if we turn the entire world into a third world
who will buy german engineering?
The top 1% ?
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