Why Greece is headed out of the euro
The economy may sink ever deeper in to recession, leaving the country unable to meet even looser austerity demands.
It seems like Angela Merkel is the only leader in the world that knows what the right thing to do is. She seems to be the only one that knows that more money thrown at these countries will be a waste and in the end will cause Weimar Republic style hyper inflation. All of you PhD's that have been in charge and have been students of Keynesian philosopy on steroids...throw more debt on debt to get us out of debt when there is no underlaying reason for growth to happen on the other side of the debt need to leave the experiments in your overpriced Universities and off of the streets. Let the markets find their own equalibrium and quit playing with the money supply. Even a child at a lemonade stand knows that if there is not an increase in lemonade buyers, he will not borrow more money from his parents to buy more cups if he can't sell more lemonade the next day. Of course in the U.S. our government has outlawed lemonade stands. So instead of our future leaders learning business the real way...we get Harvard and Wharton MBAs that have put us in this irreversible mess.
I am glad that Germany is standing firm. The European countries and America as well have had since WWII to address their structural issues and banking weaknesses. If the eurobond solution was a solution to give them more time to address their issues I would be in favor of it. But they have the same problem that we have here in the U.S. ....it is not politically possible for our leaders to get our house in order and spend within our means by spending what we produce and no more. I am afraid we all will need to go through rough times, the system will have to crash to reset and we will all have to suffer now instead of pushing the debt that is mounting like a snowball to the next generation. Our generation is spoiled and do not want to suffer and so our politicians are the ones that we elect to push the debt down the road to future generation. It is incredibly selfish. The Europeans and we Americans are going to have to learn to live without normal healthcare, pensions and bloated government beauracracy and a 12 carrier group Navy for a generation so that we can clean the house of non producing Wall Street money managers, Bankers and Government workers that do not give an honest days labor for an honest days work. When this happens, people will become more real again, appreciate the small things in life, need each other and maybe enjoy daily life in a more balanced way.
More bailouts and time here and in Europe will only add more gasoline to the fire and will not last long...just like our quantitative easing 1 and 2 here did not solve the problem but put more money in bankers pockets. Unemployment will only change in all of our countries when our currencies become valued at what they should be valued and the Euro is no longer. This will bring back manufacturing to all of our countries because the currencies will be valued based on GDP and exports and manufacturing and the weaker countries will have lower value currencies which will make them more competitive and bring a manufacturing incentive there. We need this so that China is not the manufacturer for the world, which snuffs out everyone else and makes them either a service economy or a commodities exporter which is not diverse enough. Then all of the countries will offer a value added production based economy with high level engineering and production and an increase in real local taxes, not by raising taxes but by creating more taxpayers which is called widening the tax base which is the only solution out of this mess.
Angela Merkel, if you read this, stay tough, don't give in. We all need the medicine of what needs to happen.
"The summit wound up opting for No. 2, partly because doing nothing is always easier than banging heads together in order to do something, but mostly because of Greek politics."
They ended up doing #2 becasue it's the RIGHT thing to do. This whole TBTF mentality has to stop somewhere. They have to send a message to all the EU that it's an economic union and it's not all for one and one for all. Sooner or later California is going to get the same message and so is the US. You don't spend other peoples many so that the lazy and underachievers can have what others earned. It's no different in China, Europe or the US. Who cares if banks and hedge funds lose another $1 trillion.
Some day, this scenario will play out through much of the rest of the world, including the United States.
he govt of the USA keeps kicking it down the road .And, all Americans believe that their problems are over(Billions of subprime mortg sold to European banks) and Europe's problem is not their business.America Can not pay the Trillions owed in debt and NEVER will be able to pay.
Even running the printing press forever.
Greece has wore out it's welcome when it comes to spending other countries/peoples money. Greece just as well continue on the path they have chosen. After all, debt is not a problem as long as someone else is willing to finance irresponsibility.
How far in debt is far enough? How does going deeper into debt get you out of debt? In the USA it appears we are going to find out. There are consequences for irresponsibility.
There is no law against being stupid, but it is expensive, and like it or not we're going to be handed the bill.
Party on because when the bill comes due it's going to be hell to pay.
In a pure free market the markets and goods and services are self regulating daily by supply and demand.
There is NO such thing as a pure free market. Name one and I'll send you a check for $1,000.00. The U.S. has never been a pure free market. We've always been a mixed economy.
You free market types never want to look at the downside of lassiez faire economics. Open a book every now and then. How honest do you think the markets would be without any form of regulation? You want monopolies? You want price gouging and collusion among companies? You want a return to the Robber Barons? Do you want no accounting rules for publicly traded companies? You're asking for all of those things with this "pure free market" bunkum.
Look at Germany, Sweden, and Finland. They are far more social in their public policy than us, yet they aren't experiencing near the problems. It's because they don't have the structural unemployment problems experienced in Spain, Italy, and Greece (and here, for that matter). They don't have out of control health care expenses because their health care systems are much more strictly regulated from a price standpoint. Medicare is the cause of our bloated spending budget and it's the insurance and pharma companies largely to blame for our exploding health care costs. Too many hands in the health care pot trying to make a profit.
J Del, Greece just showed you socialism doesn't work.
Greece isn't a socialist country, they're a mixed economy. Too much socialism is a bad thing. Too much capitalism is a bad thing. A healthy economic system must strike a balance between the two, and that balance isn't the same for every national economy. Greece's problems are far more complex than social policies.
Why isn't Germany struggling? They're more social in their policies than we are.
"For every complex problem, there is a simple answer that is clear, simple, and wrong."
- H.L. Menken
Austerity doesnt work. More cuts only results in more cuts as jobs and earners and tax payers disappear, so debt must go up. What is needed is new investment and no business will invest in economic circumstances of more cuts. The real fundimental problem is bankers and 'capitalists' have run the show and ruined their economies for everyone else while they made piles of money. Well, in Greece and France, no more. These countries will show that vulture capitalism, that results in more money for the few, and stagnation for everyone else is not the only option.
Personally, I favor market socialism and anarcho socialism, with non porfit co operatives which beneifet everybody, not just the wealthy few, handling the money, making investments, reviving the economy.
Obama could have funded credit unions and community banks that really would have invested in our communities instead of bailing out predatory big banks. Their success only results in more money for the rich and a stagnant middle class. Romney will of course, hand the goverment over to predatory capitalism. There may be a few more jobs, but they will pay less, a lot less. Sure, Bain created jobs (and destroyed jobs), but they did it by by cutting wages and benefits thus making businesses they screwd with profitable for them. Predatory capitalists are upset by criticism. Well, they brought it on themselves. Greed is good? Yeah right.
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